Document:

EXHIBIT 4(b)(13)

                     Form of IncomeNotes(SM) (Floating Rate)

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS
CERTIFICATE 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 CERTIFICATE 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 IS
MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

REGISTERED                                                  $

No. FL-                                                     CUSIP #

                         THE BEAR STEARNS COMPANIES INC.

                                 IncomeNotes(SM)
                                 (FLOATING RATE)

Original Issue Date:                             Interest Reset Date(s):

Maturity Date:                                   Interest Reset Period:

Interest Rate Basis:                             Interest Payment Date(s):

Initial Interest Rate:                           Interest Payment Period:

Index Maturity:                                  Redeemable On and After:

Spread (plus or minus):                          Optional Repayment Date(s):

Maximum Interest Rate:                           Survivor's Option:  Yes ___
                                                 No ___
Minimum Interest Rate:

Minimum Denominations: $1,000 increased in multiples of $1,000

<PAGE>

            THE BEAR STEARNS COMPANIES INC., a Delaware corporation (the
"Company"), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, the principal amount stated above on the Maturity Date shown
above (the "Maturity Date") and to pay interest thereon at the rate per annum
equal to the Initial Interest Rate shown above until the first Interest Reset
Date shown above following the Original Issue Date shown above and thereafter at
a rate determined in accordance with the provisions on the reverse hereof under
the heading "Determination of LIBOR," "Determination of Federal Funds Rate,"
"Determination of Treasury Rate" or "Determination of Prime Rate" depending upon
whether the Interest Rate Basis is LIBOR, Federal Funds Rate, Treasury Rate or
Prime Rate, as indicated above, until the principal hereof is fully paid or duly
made available for payment. The Company will pay interest monthly, quarterly,
semiannually or annually as indicated above on each Interest Payment Date shown
above commencing with the first Interest Payment Date shown above immediately
following the Original Issue Date shown above, and on the Maturity Date, or, if
applicable, the Redemption Date or Optional Repayment Date; provided, however,
that if the Original Issue Date shown above is between a Regular Record Date (as
defined below) and an Interest Payment Date, interest payments will commence on
the Interest Payment Date following the next succeeding Regular Record Date; and
provided, further, however, that if an Interest Payment Date, Maturity Date,
Redemption Date, Optional Repayment Date or repayment date on exercise of a
Survivor's Option (as defined on the reverse hereof) would fall on a day that is
not a Business Day (as defined on the reverse hereof), unless otherwise
specified on the face hereof, the related payment of principal, premium, if any,
or interest shall be made on the following day that is a Business Day, and no
interest shall accrue for the period from and after that Interest Payment Date,
Maturity Date, Redemption Date, Optional Repayment Date or repayment date on
exercise of a Survivor's Option, as the case may be, to the next Business Day.
In the event the Interest Rate Basis is LIBOR, as indicated above, if such next
Business Day falls in the next calendar month, principal, premium, if any, or
interest will be paid on the preceding day that is a Business Day, provided that
any such Business Day is also a London Banking Day (as defined on the reverse
hereof), with respect to such LIBOR Note. Except as provided above and in the
Indenture referred to on the reverse hereof, interest payments will be made on
the Interest Payment Dates shown above. The "Regular Record Date" shall be the
date whether or not a Business Day 15 calendar days immediately preceding such
Interest Payment Date, unless otherwise specified on the face hereof.

            The interest so payable, and punctually paid or duly provided for,
on the Interest Payment Dates referred to above, will, as provided in the
Indenture, be paid to the Person in whose name this Note (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest, provided, however, that interest payable on the
Maturity Date, or if applicable, the Redemption Date, Optional Repayment Date or
repayment date on exercise of a Survivor's Option, will be paid to the Person to
whom the principal of this Note is payable. Any such interest which is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date
shall forthwith cease to be payable to the Holder on such Regular Record Date,
and may be paid to the Person in whose name this Note (or one or more
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to the Holder of this Note not less than
ten days prior to such Special Record Date, or

                                      -2-
<PAGE>

may be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Notes may be listed and
upon such notice as may be required by such exchange, all as more fully provided
in the Indenture.

            Payment of the principal of and interest on this Note shall be made
at the office or agency of the Trustee maintained for that purpose in the
Borough of Manhattan, The City of New York, in such coin or currency of the
United States of America as at the time of payment is legal tender for the
payment of public and private debt; provided, however, that payment of interest
on any Interest Payment Date (other than the Maturity Date, Redemption Date,
Optional Repayment Date or repayment date on exercise of a Survivor's Option, if
any) may be made at the option of the Company by check mailed to the address of
the Person entitled thereto as such address shall appear in the Security
Register, or by wire transfer of immediately available funds, if the registered
holder of at least $10,000,000 in principal amount (or such other principal
amount specified on the face hereof) of Notes entitled to such interest has so
requested by a notice in writing delivered to the Trustee not less than 16 days
prior to the Interest Payment Date on which such payment is due, which notice
shall provide appropriate instructions for such transfer.

            The principal hereof and interest due at maturity will be paid upon
maturity in immediately available funds against presentation of this Note at the
office or agency of the Trustee maintained for that purpose in the Borough of
Manhattan, The City of New York.

            REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET
FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES
HAVE THE SAME EFFECT AS IF SET FORTH ON THE FACE HEREOF.

            This Note shall be governed by and construed in accordance with the
laws of the State of New York.

            This Note is one of the series of Medium-Term Notes, Series B, of
the Company.

            Unless the certificate of authentication hereon has been executed by
JPMorgan Chase Bank (formerly, The Chase Manhattan Bank), the Trustee under the
Indenture, or its successor thereunder by the manual signature of one of its
authorized signatories, this Note shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

                                      -3-
<PAGE>

            IN WITNESS WHEREOF, the Company has caused this instrument to be
duly executed under its corporate seal.

Dated:

                                       THE BEAR STEARNS COMPANIES INC.

                                       By:_____________________________________

ATTEST:

_____________________________
Secretary

[Corporate Seal]

                          CERTIFICATE OF AUTHENTICATION

            This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.

                                       JPMORGAN CHASE BANK, as Trustee

                                       By:_____________________________
                                          Authorized Signature

                                      -4-
<PAGE>

                                [Reverse of Note]

                         THE BEAR STEARNS COMPANIES INC.

                                 IncomeNotes(SM)
                                 (FLOATING RATE)

            This Note is one of a duly authorized issue of debentures, notes or
other evidences of indebtedness (hereinafter called the "Securities") of the
Company of the series hereinafter specified, all such Securities issued and to
be issued under the Indenture dated as of May 31, 1991, as amended (herein
called the "Indenture"), between the Company and JPMorgan Chase Bank (formerly,
The Chase Manhattan Bank), as Trustee (herein called the "Trustee," which term
includes any successor trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights and limitations of rights thereunder of the Company, the
Trustee and the Holders of the Securities, and the terms upon which the
Securities are, and are to be, authenticated and delivered. As provided in the
Indenture, Securities may be issued in one or more series, which different
series may be issued in various aggregate principal amounts, may mature at
different times, may bear interest, if any, at different rates, may be subject
to different redemption provisions, if any, may be subject to different
repayment provisions, if any, may be subject to different sinking, purchase or
analogous funds, if any, may be subject to different covenants and Events of
Default and may otherwise vary as in the Indenture provided or permitted. This
Note is one of a series of the Securities designated as Medium-Term Notes,
Series B (the "Notes"). The Notes of this series may be issued at various times
with different maturity dates, redemption dates and different principal
repayment provisions, may bear interest at different rates and may otherwise
vary, all as provided in the Indenture.

            The interest payable on this Note on each Interest Payment Date will
include accrued interest from and including the Original Issue Date or from and
including the last date in respect of which interest has been paid, as the case
may be, to, but excluding, such Interest Payment Date, except that the interest
payment at the Maturity Date, Redemption Date, Optional Repayment Date or
repayment date on exercise of a Survivor's Option will include interest accrued
to but excluding such date. Accrued interest from the Original Issue Date or
from the last date to which interest has been paid is calculated by multiplying
the principal amount hereof by an accrued interest factor. Such accrued interest
factor is computed by adding the interest factors calculated for each day from
the Original Issue Date, or from the last date to which interest has been paid,
to the date for which accrued interest is being calculated. The interest factor
(expressed as a decimal calculated to seven decimal places without rounding) for
each such day is computed by dividing the interest rate applicable to such day
by 360, in the case of Federal Funds Rate Notes, LIBOR Notes and Prime Rate
Notes, or by the actual number of days in the year, in the case of Treasury Rate
Notes. The interest rate in effect on each day will be (a) if such day is an
Interest Reset Date, the interest rate with respect to the Interest
Determination Date pertaining to such Interest Reset Date or (b) if such day is
not an Interest Reset Date, the interest rate with respect to the Interest
Determination Date pertaining to the next preceding Interest Reset Date;
provided, however, that (i) the interest rate in effect from the Original Issue

                                      -5-
<PAGE>

Date to the first Interest Reset Date will be the Initial Interest Rate as
specified on the face hereof and (ii) the interest rate in effect for the ten
calendar days immediately prior to maturity will be that in effect on the tenth
calendar day preceding maturity. Notwithstanding the foregoing, if the rate at
which interest is payable is adjusted daily or weekly, such rate of interest
shall be adjusted until the Interest Reset Date immediately preceding the
Maturity Date. Notwithstanding the foregoing, the interest rate hereon shall not
be greater than the Maximum Interest Rate, if any, or less than the Minimum
Interest Rate, if any, shown on the face hereof. All percentages resulting from
any calculations will be rounded, if necessary, to the nearest one
hundred-thousandth of a percent, with five one-millionths of a percent being
rounded upwards. In addition, the interest rate hereon shall in no event be
higher than the maximum rate, if any, permitted by applicable law.

            Commencing with the first Interest Reset Date shown on the face
hereof following the Original Issue Date, and thereafter on each succeeding
Interest Reset Date specified on the face hereof, the rate at which interest on
this Note is payable shall be adjusted daily, weekly, monthly, quarterly,
semiannually or annually as specified on the face hereof under "Interest Reset
Date(s)." Each such adjusted rate shall be applicable on and after the Interest
Reset Date to which it relates to but not including the next succeeding Interest
Reset Date or until the Maturity Date or, if applicable, the Redemption Date,
Optional Repayment Date or repayment date on exercise of a Survivor's Option, as
the case may be. The Interest Reset Date will be, if this Note resets daily,
each Business Day; if this Note resets weekly, the Wednesday of each week (with
the exception of weekly reset Treasury Rate Notes which will reset the Tuesday
of each week, except as specified below); if this Note resets monthly, the third
Wednesday of each month; if this Note resets quarterly, the third Wednesday of
March, June, September and December; if this Note resets semiannually, the third
Wednesday of the two months specified on the face hereof; and if this Note
resets annually, the third Wednesday of the month specified on the face hereof.
Subject to applicable law and except as specified herein, on each Interest Reset
Date, the rate of interest on this Note shall be the rate determined in
accordance with the provisions applicable below, plus or minus the Spread (as
specified on the face hereof), if any. If any Interest Reset Date would
otherwise be a day that is not a Business Day, such Interest Reset Date shall be
postponed to the next succeeding day that is a Business Day, except that in the
case of a LIBOR Note, if such Business Day is in the next succeeding calendar
month, such Interest Reset Date shall be the next preceding Business Day.
"Business Day" means (i) with respect to any Note, any day that is not a
Saturday or Sunday, and that is neither a legal holiday nor a day on which
banking institutions or trust companies in New York City are authorized or
obligated by law to close, and (ii) with respect to LIBOR Notes only, a London
Banking Day. A "London Banking Day" means any day on which dealings in deposits
in U.S. dollars are transacted in the London interbank market.

            The Interest Determination Date pertaining to an Interest Reset Date
will be, if the Interest Rate Basis is Federal Funds (Effective) Rate, the
Business Day next preceding such Interest Reset Date. The Interest Determination
Date pertaining to an Interest Reset Date will be, if the Interest Rate Basis is
LIBOR, the second London Banking Day preceding such Interest Reset Date. The
Interest Determination Date pertaining to an Interest Reset Date will be, if the
Interest Rate Basis is Treasury Rate, the day of the week in which such Interest
Reset Date falls on which Treasury bills (as defined below) of the Index
Maturity specified on the face hereof are

                                      -6-
<PAGE>

auctioned. Treasury bills normally are auctioned on Monday of each week, unless
that day is a legal holiday, in which case the auction is normally held on the
following Tuesday, except that such auction may be held on the preceding Friday.
If, as a result of a legal holiday, an auction is so held on the preceding
Friday, such Friday will be the Interest Determination Date pertaining to the
Interest Reset Date occurring in the next succeeding week. Interest payable
hereon will be payable monthly, quarterly, semiannually or annually (the
"Interest Payment Period") as specified on the face hereof. The Interest
Determination Date pertaining to an Interest Reset Date will be, if the Interest
Rate Basis is Prime Rate or Federal Funds (Open) Rate, the same day as such
Interest Reset Date. Unless otherwise shown on the face hereof, interest will be
payable, if this Note resets daily, weekly or monthly, on the third Wednesday of
each month or on the third Wednesday of March, June, September and December, of
each year; if this Note resets quarterly, on the third Wednesday of March, June,
September and December, of each year; if this Note resets semiannually, on the
third Wednesday of the two months of each year specified on the face hereof; and
if this Note resets annually, on the third Wednesday of the month specified on
the face hereof (each such date being an "Interest Payment Date") and in each
case, at maturity or, if applicable, upon redemption or optional repayment.

            Determination of LIBOR. If the Interest Rate Basis specified on the
face hereof is "LIBOR," the interest rate shall equal, as specified on the face
hereof, either (a) the offered rates for deposits in U.S. dollars having the
Index Maturity specified on the face hereof, commencing on the second London
Banking Day immediately following the applicable Interest Determination Date
which appears on Telerate Page 3750 (or such other page as may replace Telerate
Page 3750 for the purpose of displaying London interbank rates of major banks),
as of 11:00 A.M., London time, on such Interest Determination Date adjusted by
the addition or subtraction of the Spread, if any, specified on the face hereof
("LIBOR Telerate") or (b) the arithmetic mean, as determined by JPMorgan Chase
Bank (formerly, The Chase Manhattan Bank), as Calculation Agent (or any
successor calculation agent, or any other Calculation Agent named on the face
hereof, the "Calculation Agent"), of the offered rates for deposits in U.S.
dollars having the Index Maturity specified on the face hereof, commencing on
the second London Banking Day immediately following the applicable Interest
Determination Date which appears on the Reuters Screen LIBO Page (or such other
page as may replace such Reuters Screen LIBO Page for the purpose of displaying
London interbank rates of major banks), as of 11:00 A.M., London time, on such
Interest Determination Date, if at least two such offered rates appear on the
Reuters Screen LIBO Page (or such other page as may replace such page) ("LIBOR
Reuters"); provided, however, that if no such rate appears on Telerate Page 3750
(or such other page as may replace such page) or if fewer than two offered rates
appear on the Reuters Screen LIBO Page (or such other page as may replace such
page), the Calculation Agent shall request the principal London office of each
of four major banks in the London interbank market selected by the Calculation
Agent to provide a quotation of the rate at which such bank offered to prime
banks in the London interbank market at approximately 11:00 A.M., London time,
on such Interest Determination Date, deposits in U.S. dollars having the Index
Maturity specified on the face hereof commencing on the second London Banking
Day immediately following such Interest Determination Date and in a principal
amount equal to an amount not less than U.S. $1,000,000 that is representative
of a single transaction in such market at such time, and such rate of interest
hereon shall equal the arithmetic mean of (a) such quotations, if at least two
quotations are provided, or (b) if less than two quotations are provided, the
rates quoted at approximately 11:00

                                      -7-
<PAGE>

A.M., New York City time, on such Interest Determination Date by three major
banks in The City of New York, selected by the Calculation Agent for loans in
U.S. dollars to leading European banks, having the Index Maturity specified on
the face hereof commencing on the second London Banking Day immediately
following such Interest Determination Date and in a principal amount as
aforesaid, in either case, adjusted by the addition or subtraction of the
Spread, if any, specified on the face hereof; provided, however, that if the
three banks selected as aforesaid by the Calculation Agent are not quoting as
mentioned above, the interest rate in effect hereon until the Interest Reset
Date next succeeding the Interest Reset Date to which such Interest
Determination Date relates shall be the rate in effect on the Interest
Determination Date next preceding such Interest Reset Date.

            Determination of Federal Funds Rate. If the Interest Rate Basis
specified on the face hereof is "Federal Funds Rate," the interest rate shall
equal either the Federal Funds (Effective) Rate or the Federal Funds (Open)
Rate.

            Unless otherwise specified on the face hereof, the Federal Funds
(Effective) Rate shall equal (a) the rate on the applicable Interest
Determination Date specified on the face hereof for Federal Funds as published
in H.15(519) under the heading "Federal funds (effective)" on Telerate page 120
or any successor service or page, or (b) if such rate is not so published on the
Calculation Date pertaining to such Interest Determination Date, then the rate
on the applicable Interest Determination Date as published in H.15 Daily Update
or any other recognized electronic source used for displaying that rate under
the heading "Federal Funds/Effective Rate."

            Unless otherwise specified on the face hereof, the Federal Funds
(Open) Rate shall equal the rate on the applicable Interest Determination Date
specified on the face hereof for Federal Funds as reported on Telerate Page 5
under the heading "Federal Funds/Open."

            If (a) the applicable Federal Funds (Effective) Rate described above
or (b) the Federal Funds (Open) Rate described above is not published by 3:00
P.M., New York City time, on the relevant Calculation Date, then the Federal
Funds (Effective) Rate and the Federal Funds (Open) Rate, as applicable, will be
calculated by the Calculation Agent as the arithmetic mean of the rates for the
last transaction in overnight Federal Funds arranged by three leading brokers of
Federal Funds transactions in The City of New York selected by the Calculation
Agent as of 11:00 A.M., New York City time, on such Interest Determination Date,
in each of the above cases, adjusted by the addition or subtraction of the
Spread, if any, specified on the face hereof; provided, however, that if such
brokers are not quoting as mentioned above, the interest rate in effect hereon
until the Interest Reset Date next succeeding the Interest Reset Date to which
such Interest Determination Date relates shall be the rate in effect on the
Interest Determination Date next preceding such Interest Reset Date.

            Determination of Treasury Rate. If the Interest Rate Basis specified
on the face hereof is "Treasury Rate," the interest rate shall equal the rate
for the auction held on the applicable Interest Determination Date of direct
obligations of the United States ("Treasury bills") having the Index Maturity
specified on the face hereof as published under the column designated "Invest
Rate" on Telerate page 56 under the heading "US Treasury 3 MO T-Bill Auction
Results" or Telerate page 57 under the heading "US Treasury 6 MO T-Bill Auction
Results," as applicable, or any successor publication, or, if not so published
on the Calculation

                                      -8-
<PAGE>

Date pertaining to such Interest Determination Date, the auction average rate
(expressed as a bond equivalent on the basis of a year of 365 or 366 days, as
applicable, and applied on a daily basis) as otherwise announced by the United
States Department of the Treasury, in either case, adjusted by the addition or
subtraction of the Spread, if any, specified on the face hereof. In the event
that the results are not published or reported as provided above by 3:00 P.M.,
New York City time, on such Calculation Date, or if no such auction is held in a
particular week, then the rate of interest herein shall be calculated by the
Calculation Agent and shall be a yield to maturity (expressed as a bond
equivalent on the basis of a year of 365 or 366 days, as applicable, and applied
on a daily basis) of the arithmetic mean of the secondary market bid rates as of
approximately 3:30 P.M., New York City time, on such Interest Determination
Date, of three leading primary United States government securities dealers
selected by the Calculation Agent for the issue of Treasury bills with a
remaining maturity closest to the Index Maturity specified on the face hereof,
adjusted by the addition or subtraction of the Spread, if any, specified on the
face hereof; provided, however, that if the dealers selected as aforesaid by the
Calculation Agent are not quoting as mentioned above, the interest rate in
effect hereon until the Interest Reset Date next succeeding the Interest Reset
Date to which such Interest Determination Date relates shall be the rate in
effect on the Interest Determination Date next preceding such Interest Reset
Date.

            Determination of Prime Rate. If the Interest Rate Basis specified on
the face hereof is "Prime Rate," the interest rate shall equal (a) the rate on
the applicable Interest Determination Date (i) as reported on Telerate Page 5
under the heading "Bank Rates/Prime" or (ii) as published in H.15(519), under
the caption "Bank Prime Loan", (b) if the rates referred to under (a)(i) and
(a)(ii) are not published by 9:00 A.M., New York City time, on the Calculation
Date pertaining to such Interest Determination Date, then the arithmetic mean
(as calculated by the Calculation Agent) of the rates of interest publicly
announced by each bank named on the Reuters Screen NYMF Page (as defined below)
as such bank's prime rate or base lending rate as in effect for such Interest
Determination Date as quoted on the Reuters Screen NYMF Page for such Interest
Determination Date, or, if fewer than four such rates appear on the Reuters
Screen NYMF Page for such Interest Determination Date, the rate shall be the
arithmetic mean (as calculated by the Calculation Agent) of the prime rates
quoted on the basis of the actual number of days in the year divided by 360 as
of the close of business on such Interest Determination Date by at least two of
the three major money center banks in The City of New York selected by the
Calculation Agent (after consultation with the Company) from which quotations
are requested, or (c) if fewer than two quotations are provided under (b) above,
the Prime Rate shall be calculated by the Calculation Agent and shall be
determined as the arithmetic mean on the basis of the prime rates in The City of
New York by the appropriate number of substitute banks or trust companies
organized and doing business under the laws of the United States, or any State
thereof, in each case having total equity capital of at least U.S. $500 million
and being subject to supervision or examination by Federal or State authority,
selected by the Calculation Agent (after consultation with the Company) to quote
such rate or rates, in each case adjusted by the addition or subtraction of the
Spread, if any, specified on the face hereof; provided, however, that if in any
month or two consecutive months, the Prime Rate is not reported or published as
provided above, and if such quotations are not available, the interest rate in
effect hereon until the Interest Reset Date next succeeding the Interest Reset
Date to which such Interest Determination Date relates shall be the rate in
effect on the Interest Determination Date next preceding such Interest Reset
Date in each case.

                                      -9-
<PAGE>

            If this failure continues over three or more consecutive months, the
Prime Rate for each succeeding Interest Determination Date until the maturity or
redemption of this Note or, if earlier, until this failure ceases, shall be
LIBOR determined as if this Note were a LIBOR Note, and the Spread, if any, will
be the number of basis points specified on the face hereof as the "Alternate
Rate Event Spread."

            "Reuters Screen NYMF Page" means the display designated as Page
"NYMF" on the Reuters Monitor Money Rates Service (or such other page as may
replace the NYMF Page on that service for the purpose of displaying prime rates
or base lending rates of major United States banks).

            The Calculation Date pertaining to an Interest Determination Date
shall be the earlier of (a) the tenth calendar day after such Interest
Determination Date or if any such day is not a Business Day, the next succeeding
Business Day, or (b) the Business Day prior to the applicable Interest Payment
Date, Maturity Date, Redemption Date, Optional Repayment Date or repayment date
on exercise of a Survivor's Option. The Calculation Agent shall calculate the
interest rate hereon in accordance with the foregoing and will confirm in
writing such calculation to the Trustee and any Paying Agent immediately after
each determination. Neither the Trustee nor any Paying Agent shall be
responsible for any such calculation. All determinations made by the Calculation
Agent shall be, in the absence of manifest error, conclusive for all purposes
and binding on the Company and holders of the Note. At the request of the Holder
hereof, the Calculation Agent will provide to the Holder hereof the interest
rate hereon then in effect and, if different, the interest rate that will become
effective as a result of a determination made on the most recent Interest Reset
Date with respect to the Note.

            Redemption at the option of the Company. If so specified on the face
of this Note, this Note may be redeemed by the Company on and after the date so
indicated on the face hereof. If no such date is set forth on the face hereof,
this Note may not be redeemed prior to maturity. On and after such date, if any,
from which this Note may be redeemed, unless otherwise specified on the face
hereof, this Note may be redeemed in whole or in part in increments of $1,000
(provided, unless a different minimum denomination is set forth on the face
hereof, that any remaining principal amount of this Note shall be at least
$1,000) at the option of the Company, at a redemption price equal to 100% of the
principal amount to be redeemed, together with interest thereon payable to the
Redemption Date, on notice given, unless otherwise specified on the face hereof,
not more than 60 nor less than 30 days prior to the Redemption Date. If less
than all the Outstanding Notes having such terms as specified by the Company are
to be redeemed, the particular Notes to be redeemed shall be selected by the
Trustee not more than 60 days prior to the Redemption Date from the Outstanding
Notes having such terms as specified by the Company not previously called for
redemption, by such method as the Trustee shall deem fair and appropriate. The
notice of such redemption shall specify which Notes are to be redeemed. In the
event of redemption of this Note, in part only, a new Note or Notes in
authorized denominations for the unredeemed portion hereof shall be issued in
the name of the Holder hereof upon the surrender hereof.

            Repayment at the option of the Holder. If so specified on the face
of this Note, this Note will be subject to repayment at the option of the Holder
hereof on the Optional Repayment Date(s). Except as otherwise specified herein,
if no Optional Repayment Date is set

                                      -10-
<PAGE>

forth on the face hereof, this Note may not be repaid at the option of the
Holder prior to maturity. Unless otherwise specified on the face hereof, on and
after the Optional Repayment Date, if any, from which this Note may be repaid at
the option of the Holder, this Note shall be repayable in whole or in part in
increments of $1,000 (provided, unless a different minimum denomination is set
forth on the face hereof, that any remaining principal amount of this Note shall
be at least $1,000) at a repayment price equal to 100% of the principal amount
to be repaid, together with interest thereon payable to the Optional Repayment
Date. For this Note to be repaid in whole or in part at the option of the Holder
hereof, the Trustee must receive not less than 30 nor more than 60 days prior to
the Optional Repayment Date (i) this Note with the form entitled "Option to
Elect Repayment," which appears below, duly completed or (ii) a telegram, telex,
facsimile transmission or a letter from a member of a national securities
exchange or the National Association of Securities Dealers, Inc. or a commercial
bank or trust company in the United States of America setting forth the name of
the Holder of this Note, the principal amount of this Note, the certificate
number of this Note or a description of this Note's tenor or terms, the
principal amount of this Note to be repaid, a statement that the option to elect
repayment is being exercised thereby and a guarantee that this Note with the
form entitled "Option to Elect Repayment," which appears below, duly completed,
will be received by the Trustee no later than five Business Days after the date
of such telegram, telex, facsimile transmission or letter and this Note and such
form duly completed are received by the Trustee by such fifth Business Day.
Exercise of the repayment option shall be irrevocable.

            Repayment upon death of the Beneficial Owner. If so specified on the
face of this Note, unless this Note has been declared due and payable before its
Maturity Date by reason of an Event of Default under the Indenture, or has been
previously redeemed or otherwise repaid, the Authorized Representative (as
defined below) of a deceased Beneficial Owner (as defined below) of this Note
has the right to request repayment before the Maturity Date of all or part of
the deceased Beneficial Owner's interest in this Note, and the Company will be
obligated to repay that portion of this Note (the Survivor's Option"). If the
Survivor's Option is not set forth on the face hereof, this Note may not be
repaid upon death of the Beneficial Owner. The "Beneficial Owner" is a Person
who has the right, immediately prior to such Person's death, to receive the
proceeds from the disposition of this Note, as well as the right to receive
payment of the principal hereof. The "Authorized Representative" of the
Beneficial Owner is a Person who has the right to sell, transfer or otherwise
dispose of an interest in this Note and the right to receive the proceeds
hereof, as well as the interest and principal payable to the Beneficial Owner of
this Note, under the laws of the applicable jurisdiction. To validly exercise
the Survivor's Option, this Note must have been acquired by the deceased
Beneficial Owner at least six months prior to the date of the request.

            The Company will not be obligated to repay:

      o     On behalf of any individual deceased Beneficial Owner any interest
            or interests in this Note that in the aggregate exceeds $250,000 in
            any calendar year (the "Individual Limitation"), or

      o     in any calendar year, the greater of $2,000,000 or two percent of
            the outstanding aggregate principal amount of all IncomeNotes(SM)
            outstanding as of December 31 of the immediately preceding calendar
            year (the "Aggregate Limitation").

                                      -11-
<PAGE>

            If this tendered Note is not accepted in any calendar year due to
the application of either of the limitations set forth above, this Note will be
deemed to be tendered in the following calendar year in the order in which it
was originally tendered. If, despite being tendered through a valid exercise of
the Survivor's Option, this Note is not accepted, the Trustee will deliver a
notice by first-class mail to the Authorized Representative of the deceased
Beneficial Owner that states the reason that this Note has not been accepted for
repayment.

            The Company may, at its option, repay interests of a deceased
Beneficial Owner in excess of the Individual Limitation. Any optional repayment
by the Company of this kind, to the extent it exceeds the Individual Limitation
for any deceased Beneficial Owner, will not be included in the computation of
the Aggregate Limitation for repayment of this Note. The Company may also, at
its option, repay interests of the deceased Beneficial Owner in this Note in an
aggregate principal amount exceeding the Aggregate Limitation. Any optional
repayment by the Company of this kind, to the extent it exceeds the Aggregate
Limitation, will not reduce the Aggregate Limitation for such calendar year.
Upon any determination by the Company to repay this Note in excess of the
Individual Limitation or the Aggregate Limitation, this Note will be repaid in
the order of receipt of the repayment request by the Trustee.

            The Survivor's Option may only be exercised by the Authorized
Representative of the deceased Beneficial Owner. An Authorized Representative of
a deceased Beneficial Owner may initiate a request for repayment at any time,
provided that this Note was acquired by the deceased Beneficial Owner at least
six months prior to the date of the request, and in any principal amount, as
long as the principal amount is in integral multiples of $1,000, unless
otherwise specified on the face hereof. The Authorized Representative must
deliver its request to the Participant (as defined below) through which the
deceased Beneficial Owner owned an interest in this Note. "Participant" means an
institution that has an account with the depositary for this Note, which, unless
otherwise specified on the face hereof, will be The Depository Trust Company.
The request for repayment must be in a form satisfactory to the Participant and
must be accompanied by evidence of the death of the Beneficial Owner, evidence
that this Note was acquired by the deceased Beneficial Owner at least six months
prior to the request, evidence of the authority of the Authorized Representative
satisfactory to the Participant, any waivers, notices or certificates that may
be required under applicable state or federal law and any other evidence of the
right to the repayment that the Participant requires. The request must specify
the principal amount of the interest in this Note to be repaid, which amount
must be in integral multiples of $1,000, unless otherwise specified on the face
hereof. Subject to the rules and arrangements applicable to the depositary, the
Participant will then need to deliver to the depositary a request for repayment
substantially in the form attached hereto as Appendix A.

            On receipt of a valid repayment request, the depositary will need to
forward the request to the Trustee. The Trustee is required to maintain records
with respect to repayment requests received by it, including the date of receipt
and the name of the Participant filing the repayment request. The Trustee will
promptly file with the Company each repayment request it receives. The Company,
the depositary and the Trustee:

      o     may conclusively assume, without independent investigation, that the
            statements contained in each repayment request are true and correct;
            and

      o     will have no responsibility:

                                      -12-
<PAGE>

            o     for reviewing any documents submitted to the Participant by
                  the Authorized Representative or for determining whether the
                  applicable decedent is in fact the Beneficial Owner of the
                  interest in this Note to be repaid or is in fact deceased; and

            o     for determining whether the Authorized Representative is duly
                  authorized to request repayment on behalf of the applicable
                  Beneficial Owner.

            In addition, the Company and the Trustee have no responsibility for
the actions of the depositary or any Participant, or any other financial
institution through which any interest in this Note may be held, with regard to
repayment requests, including any failure to make, or any delay in making, such
a request on the part of the depositary, any Participant or any such other
institution. Any Authorized Representative wishing to request a repayment of
this Note will need to contact the relevant Participant through which the
Authorized Representative's interests in this Note are held or, if those
interests are held through a Participant indirectly through an account at
another financial institution, instruct that institution to contact the
Participant to make the necessary arrangements to ensure that the request is
made in a proper and timely manner.

            Subject to the Individual Limitation and the Aggregate Limitation,
the Company will, after the death of any Beneficial Owner, repay the interest of
the Beneficial Owner in this Note on the first Interest Payment Date that occurs
30 or more calendar days after its acceptance of a repayment request from the
Trustee, or as otherwise set forth on the face hereof. Subject to the
limitations set forth above, each requested repayment will be accepted in the
order that the requests are received by the Trustee. If repayment requests
exceed the Aggregate Limitation, then excess repayment requests will be applied,
in the order received by the Trustee, to successive subsequent periods,
regardless of the number of subsequent periods required to repay the interests.
The Company may at any time notify the Trustee that it will repay, on a date not
less than 30 nor more than 60 days after the date of the Company's acceptance of
such repayment request, all or any lesser amount of Notes for which repayment
requests have been received but that are not then eligible for repayment by
reason of the Individual Limitation or the Aggregate Limitation. If the Company
does so, Notes will be repaid in the order of receipt of repayment requests by
the Trustee.

            The Company will pay 100% of the principal amount plus any unpaid
interest accrued to (but excluding) the repayment date for the portion of this
Note it repays in accordance with a repayment request by the Authorized
Representative of a deceased Beneficial Owner. Subject to arrangements with the
depositary, payment for interests in this Note to be repaid will be made to the
depositary in the aggregate principal amount specified in the repayment requests
submitted to the Trustee by the depositary that are to be fulfilled in
connection with the payment upon presentation of this Note to the Trustee for
repayment. The principal amount of any portion of this Note redeemed or repaid
by the Company other than by repayment at the option of any Authorized
Representative of a deceased Beneficial Owner under the procedures described in
this Note will not be included in the computation of either the Individual
Limitation or the Aggregate Limitation.

            The death of a Person owning this Note in joint tenancy or tenancy
by the entirety with another or others will be deemed the death of the owner of
this Note, and the entire principal amount of this Note so owned will be subject
to repayment. The death of a Person owning this Note by tenancy in common will
be deemed the death of an owner of this Note only

                                      -13-
<PAGE>

with respect to the deceased owner's interest in this Note. However, if this
Note is held by husband and wife as tenants in common, the death of either
spouse will be deemed the death of the owner of this Note, and the entire
principal amount of this Note so owned will be subject to repayment.

            The death of a Person who, immediately prior to his or her death,
was entitled to substantially all of the rights of a Beneficial Owner of an
interest in this Note will be deemed the death of the Beneficial Owner,
regardless of the recordation of the interest on the records of the Participant,
if the decedent's rights are established to the satisfaction of the Participant.
Rights of this kind will be deemed to exist in typical cases of nominee
ownership, ownership under the Uniform Gifts to Minors Act or the Uniform
Transfers to Minors Act, community property or other similar joint ownership
arrangements, including individual retirement accounts or Keogh H.R. 10 plans
maintained solely by or for the decedent or by or for the decedent and any
spouse, and trust and certain other arrangements where one Person has
substantially all of the rights of a Beneficial Owner during that Person's
lifetime.

            If a repayment request is presented on behalf of a deceased
Beneficial Owner and has not been fulfilled at the time the Company gives notice
of its election to redeem this Note, the portion of this Note that is the
subject of the pending repayment request will be repaid before any other
remaining portion of this Note.

            Any repayment request may be withdrawn by the Authorized
Representative upon delivery of a written request for withdrawal given by the
Participant on behalf of the Person(s) to the depositary and by the depositary
to the Trustee not less than 30 days before the repayment.

            All questions as to the eligibility or validity of any exercise of
the Survivor's Option will be determined by the Company in its sole discretion.
The Company's determination will be final and binding on all parties.

            During any time in which this Note is not represented by a global
security and is issued in definitive form:

      o     all references in this Note to Participants and the depositary,
            including the depositary's governing rules, regulations and
            procedures, will be deemed deleted;

      o     all determinations that the Participants are required to make as
            described in this section will be made by the Company, including,
            without limitation, determining whether the applicable decedent is
            in fact the Beneficial Owner of the interest in this Note to be
            repaid or is in fact deceased and whether the Authorized
            Representative is duly authorized to request repayment on behalf of
            the applicable Beneficial Owner; and

      o     all repayment requests, to be effective, must

            o     be delivered by the Authorized Representative to the Trustee,
                  with a copy to the Company;

            o     if required by the Trustee and the Company, be substantially
                  in the form of the repayment request attached hereto as
                  Appendix A, with appropriate changes mutually agreed to by the
                  Trustee and the Company to reflect the fact that the

                                      -14-
<PAGE>

                  repayment request is being executed by an Authorized
                  Representative, including provision for signature guarantees;
                  and

            o     be accompanied by this Note or, if applicable, a properly
                  executed assignment or endorsement, in addition to all
                  documents that are otherwise required to accompany a repayment
                  request. If the record interest in this Note is held by a
                  nominee of the deceased Beneficial Owner, a certificate or
                  letter from the nominee attesting to the deceased's ownership
                  of a beneficial interest in this Note must also be delivered.

                                      * * *

            If an Event of Default with respect to the Notes shall occur and be
continuing, the Trustee or the Holders of not less than 25% in principal amount
of the Outstanding Notes may declare the principal of all the Notes due and
payable in the manner and with the effect provided in the Indenture.

            The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of 66-2/3% in aggregate principal amount of the
Securities at the time Outstanding of each series affected thereby. The
Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Securities of each series at
the time Outstanding, on behalf of the Holders of all Securities of each series,
to waive compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note shall be conclusive and binding
upon such Holder and upon future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.

            Holders of Securities may not enforce their rights pursuant to the
Indenture or the Securities except as provided in the Indenture. No reference
herein to the Indenture and no provision of this Note or the Indenture shall
alter or impair the obligation of the Company, 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 Security
Register of the Company, upon surrender of this Note for registration of
transfer at the office or agency of the Company 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 Company, and this Note duly executed by,
the Holder hereof or by his 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.

                                      -15-
<PAGE>

            Unless otherwise specified on the face hereof, the Notes are
issuable only in registered form without coupons in denominations of $1,000. As
provided in the Indenture and subject to certain limitations therein set forth,
this Note is exchangeable for a like aggregate principal amount of Notes of
different authorized denomination as requested by the Holder surrendering the
same.

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

            Prior to the due presentment of this Note for registration of
transfer, the Company, the Trustee and any agent of the Company 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 Company,
the Trustee nor any such agent shall be affected by notice to the contrary.

            The interest rate payable with respect to this Note shall in no
event be higher than the maximum rate, if any, permitted by applicable law.

            All capitalized terms used in this Note and not otherwise defined
herein shall have the meanings assigned to them in the Indenture.

                                      -16-
<PAGE>

                                  ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM     -     as tenants in common

TEN ENT     -     as tenants by the entireties

JT TEN      -     as joint tenants with right of survivorship and not as tenants
                  in common

UNIF GIFT MIN ACT - ________________________ Custodian ________________________
                             (Cust)                             (Minor)
                                 Under Uniform Gifts to Minors Act

                               ______________________________________
                                              (State)

Additional abbreviations may also be used though not in the above list.

                           ---------------------------

                            OPTION TO ELECT REPAYMENT

            The undersigned hereby irrevocably request(s) and instruct(s) the
Company to repay this Note (or portion thereof specified below) pursuant to its
terms on _____________, 20__ (the "Optional Repayment Date") at a price equal to
the principal amount thereof, together with interest to the Optional Repayment
Date, to the undersigned at

________________________________________________________________________________

________________________________________________________________________________
        (Please print or typewrite name and address of the undersigned.)

            For this Note to be repaid the Trustee must receive at 4 New York
Plaza, New York, New York 10004, Attention: Debt Operations -- 13th Floor, or at
such other place or places of which the Company shall from time to time notify
the Holder of this Note, not more than 60 days nor less than 30 days prior to
the Optional Repayment Date, this Note with this "Option to Elect Repayment"
form duly completed.

                                      -17-
<PAGE>

            If less than the entire principal amount of this Note is to be
repaid, specify the portion thereof (which shall be increments of $1,000) which
the Holder elects to have repaid: $______________; and specify the denomination
or denominations (which, unless a different minimum denomination is set forth on
the face hereof, shall be $1,000) of the Notes to be issued to the Holder for
the portion of this Note not being repaid (in the absence of any such
specification, one such Note will be issued for the portion not being repaid):
$________________.

Date:____________________     ________________________________________________
                              Note: The signature to this Option to Elect
                              Repayment must correspond with the same as written
                              upon the face of this Note in every particular
                              without alteration or enlargement.

                      ------------------------------------

                                   ASSIGNMENT

                       FOR VALUE RECEIVED, the undersigned
                 hereby sell(s), assign(s) and transfer(s) unto

________________________________________________________________________________
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

________________________________________________________________________________

________________________________________________________________________________
PLEASE  PRINT OR  TYPEWRITE  NAME AND  ADDRESS  INCLUDING  POSTAL  ZIP CODE OF
ASSIGNEE

________________________________________________________________________________
the within Note and all rights  thereunder,  hereby  irrevocably  constituting
and appointing

________________________________________________________________________________
Attorney to transfer said Note on the books of the Company, with full power of
substitution in the premises.

Dated:  __________________________

                                              ________________________________

_______________________________________
         (Signature Guarantee)

                                      -18-
<PAGE>

                                                                      Appendix A

                            Form of Repayment Request

                         THE BEAR STEARNS COMPANIES INC.

                              ____% Notes due 20__

                                CUSIP NO. ______

            The undersigned, [_______________________] (the "Participant"), does
hereby certify, pursuant to the provisions of the Indenture dated as of May 31,
1991, as amended, modified or supplemented from time to time (the "Indenture")
by and between The Bear Stearns Companies Inc. (the "Issuer") and JPMorgan Chase
Bank (formerly, The Chase Manhattan Bank), as trustee (the "Trustee"), to The
Depository Trust Company (the "Depositary"), to the Issuer and to the Trustee
that:

1. [Name of deceased Beneficial Owner] is deceased.

2. [Name of deceased Beneficial Owner] had a $[_____] interest in the
   above-referenced Notes.

3. [Name of Authorized Representative] is [Beneficial Owner's personal
   representative/other Person authorized to represent the estate of the
   Beneficial Owner/surviving joint tenant/surviving tenant by the
   entirety/trustee of a trust] of [Name of deceased Beneficial Owner] and has
   delivered to the undersigned a request for repayment in form satisfactory to
   the undersigned, requesting that $ [_____] principal amount of said Notes be
   repaid in accordance with the Indenture. The documents accompanying such
   request, all of which are in proper form, are in all respects satisfactory to
   the undersigned and [Name of Authorized Representative] is entitled to have
   the Notes to which this repayment request relates repaid.

4. The Participant holds the interest in the Notes with respect to which this
   repayment request is being made on behalf of [Name of deceased Beneficial
   Owner].

5. The Participant hereby certifies that it will indemnify and hold harmless the
   Depositary, the Trustee and the Issuer (including their respective officers,
   directors, agents, attorneys and employees), against all damages, loss, cost,
   expense (including reasonable attorneys' and accountants' fees), obligations,
   claims or liability incurred by the indemnified party or parties as a result
   of or in connection with the repayment of Notes to which this repayment
   request relates. The Participant will, at the request of the Issuer, forward
   to the Issuer a copy of the documents submitted by [name of Authorized
   Representative] in support of the request for repayment.

            IN WITNESS WHEREOF, the undersigned has executed this repayment
request as of [___ _, 20__].

            [Participant Name]

By:________________________________
   Name:
   Title:sec document

                                                                     EXHIBIT 4.1

                                 WHX CORPORATION

                            2003 INCENTIVE STOCK PLAN

            1.   PURPOSE OF THE PLAN.

                 This 2003  Incentive  Stock Plan (the "Plan") is intended as an
incentive, to retain in the employ of and as directors,  officers,  consultants,
advisors  and  employees  to  WHX  Corporation,   a  Delaware  corporation  (the
"Company")  and any  Subsidiary  of the  Company,  within the meaning of Section
424(f) of the United  States  Internal  Revenue  Code of 1986,  as amended  (the
"Code"), persons of training,  experience and ability, to attract new directors,
officers,  consultants,  advisors and employees  whose  services are  considered
valuable,  to encourage the sense of proprietorship  and to stimulate the active
interest of such persons in the development and financial success of the Company
and its Subsidiaries.

                 It is further intended that certain options granted pursuant to
the Plan shall constitute  incentive stock options within the meaning of Section
422 of the Code (the  "Incentive  Options")  while certain other options granted
pursuant to the Plan shall be  nonqualified  stock  options  (the  "Nonqualified
Options").  Incentive Options and Nonqualified  Options are hereinafter referred
to collectively as "Options."

                 The Company intends that the Plan meet the requirements of Rule
16b-3 ("Rule 16b-3")  promulgated under the Securities  Exchange Act of 1934, as
amended (the  "Exchange  Act") and that  transactions  of the type  specified in
subparagraphs  (c) to (f)  inclusive of Rule 16b-3 by officers and  directors of
the Company  pursuant to the Plan will be exempt from the  operation  of Section
16(b)  of the  Exchange  Act.  Further,  the Plan is  intended  to  satisfy  the
performance-based  compensation exception to the limitation on the Company's tax
deductions  imposed by Section  162(m) of the Code with respect to those Options
for which qualification for such exception is intended. In all cases, the terms,
provisions,  conditions  and  limitations  of the Plan  shall be  construed  and
interpreted consistent with the Company's intent as stated in this Section 1.

            2.   ADMINISTRATION OF THE PLAN.

                 The Board of  Directors  of the  Company  (the  "Board")  shall
appoint and maintain as administrator of the Plan a Committee (the  "Committee")
consisting of two or more  directors who are  "Non-Employee  Directors" (as such
term is defined in Rule 16b-3) and "Outside  Directors" (as such term is defined
in Section 162(m) of the Code),  which shall serve at the pleasure of the Board.

The  Committee,  subject to  Sections 3 and 5 hereof,  shall have full power and
authority to designate recipients of Options,  stock appreciation rights ("Stock
Appreciation  Rights"),  restricted stock ("Restricted  Stock") and other equity
incentives or stock or stock based awards ("Equity Incentives") and to determine
the terms and  conditions  of  respective  Option,  Stock  Appreciation  Rights,
Restricted Stock and Equity Incentives  agreements (which need not be identical)
and to interpret the  provisions and supervise the  administration  of the Plan.
The Committee shall have the authority,  without limitation,  to designate which
Options  granted  under the Plan shall be  Incentive  Options and which shall be
Nonqualified  Options. To the extent any Option does not qualify as an Incentive
Option, it shall constitute a separate Nonqualified Option.

                 Subject to the  provisions  of the Plan,  the  Committee  shall
interpret the Plan and all Options, Stock Appreciation Rights,  Restricted Stock
and Equity Incentives  granted under the Plan, shall make such rules as it deems
necessary  for the  proper  administration  of the  Plan,  shall  make all other
determinations  necessary or advisable  for the  administration  of the Plan and
shall correct any defects or supply any omission or reconcile any  inconsistency
in the Plan or in any Options,  Stock Appreciation  Rights,  Restricted Stock or
Equity  Incentives  granted  under the Plan in the manner and to the extent that
the  Committee  deems  desirable  to carry into effect the Plan or any  Options,
Stock Appreciation  Rights,  Restricted Stock or Equity  Incentives.  The act or
determination  of a majority of the Committee shall be the act or  determination
of the  Committee  and any decision  reduced to writing and signed by all of the
members of the  Committee  shall be fully  effective as if it had been made by a
majority at a meeting  duly held.  Subject to the  provisions  of the Plan,  any
action taken or  determination  made by the  Committee  pursuant to this and the
other Sections of the Plan shall be conclusive on all parties.

                 In the event that for any reason the Committee is unable to act
or if the Committee at the time of any grant,  award or other  acquisition under
the Plan does not  consist of two or more  Non-Employee  Directors,  or if there
shall be no such  Committee,  then the Plan shall be  administered by the Board,
and references  herein to the Committee (except in the proviso to this sentence)
shall be deemed to be  references  to the Board,  and any such  grant,  award or
other  acquisition may be approved or ratified in any other manner  contemplated
by  subparagraph  (d) of Rule  16b-3;  provided,  however,  that  grants  to the
Company's  Chief  Executive  Officer or to any of the Company's  other four most
highly  compensated  officers that are intended to qualify as  performance-based
compensation  under  Section  162(m)  of the  Code may  only be  granted  by the
Committee.

            3.   DESIGNATION OF OPTIONEES AND GRANTEES.

                 The  persons   eligible  for   participation  in  the  Plan  as
recipients of Options (the "Optionees"),  Stock Appreciation Rights,  Restricted
Stock  or  Equity  Incentives  (respectively,   the  "Grantees")  shall  include
directors,  officers  and  employees  of, and  consultants  and advisors to, the
Company or any Subsidiary;  provided that Incentive  Options may only be granted
to employees of the Company and the  Subsidiaries.  In selecting  Optionees  and
Grantees,  and in determining the number of shares to be covered by each Option,
Stock  Appreciation  Right,  Restricted  Stock or Equity  Incentive  granted  to

                                       2

Optionees or Grantees, the Committee may consider any factors it deems relevant,
including  without  limitation,  the office or position  held by the Optionee or
Grantee or the Optionee or Grantee's  relationship to the Company,  the Optionee
or Grantee's  degree of  responsibility  for and  contribution to the growth and
success of the Company or any  Subsidiary,  the Optionee or Grantee's  length of
service,  promotions and potential.  An Optionee or Grantee who has been granted
an  Option,  Stock  Appreciation  Right,  Restricted  Stock or Equity  Incentive
hereunder may be granted an  additional  Option or Options,  Stock  Appreciation
Right(s),  Restricted  Stock or Equity  Incentive(s)  if the Committee  shall so
determine.

            4.   STOCK RESERVED FOR THE PLAN.

                 Subject to adjustment as provided in Section 10 hereof, a total
of 250,000 shares of the Company's Common Stock,  $0.01 par value per share (the
"Stock"),  shall be subject to the Plan.  The maximum  number of shares of Stock
that may be subject to Options and Stock  Appreciation  Rights granted under the
Plan to any  individual  in any calendar  year shall not exceed  125,000 and the
method of counting such shares shall conform to any  requirements  applicable to
performance-based  compensation  under Section 162(m) of the Code. The shares of
Stock subject to the Plan shall consist of unissued  shares,  treasury shares or
previously issued shares held by any Subsidiary of the Company,  and such amount
of shares of Stock shall be and is hereby reserved for such purpose. Any of such
shares of Stock that may remain  unsold and that are not subject to  outstanding
Options  at the  termination  of the Plan  shall  cease to be  reserved  for the
purposes of the Plan, but until termination of the Plan the Company shall at all
times reserve a sufficient number of shares of Stock to meet the requirements of
the Plan.  Should any Option,  Stock  Appreciation  Right,  Restricted Stock, or
Equity Incentives expire or be canceled prior to its exercise or vesting in full
or should the number of shares of Stock to be  delivered  upon the  exercise  or
vesting in full of an Option,  Stock  Appreciation  Right,  Restricted Stock, or
Equity  Incentives  be reduced for any reason,  the shares of Stock  theretofore
subject to such Option,  Stock Appreciation  Right,  Restricted Stock, or Equity
Incentives  may be subject to future  Options under the Plan,  except where such
reissuance is inconsistent with the provisions of Section 162(m) of the Code.

            5.   TERMS AND CONDITIONS OF OPTIONS.

                 Options  granted  under  the  Plan  shall  be  subject  to  the
following 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  purchase  price of each share of Stock
purchasable  under an Incentive  Option shall be  determined by the Committee at
the time of grant,  but shall not be less than 100% of the Fair Market Value (as
defined  below)  of such  share of Stock on the  date  the  Option  is  granted;
provided,  however,  that with  respect  to an  Optionee  who,  at the time such

                                       3

Incentive  Option is granted,  owns (within the meaning of Section 424(d) of the
Code) more than 10% of the total  combined  voting power of all classes of stock
of the Company or of any Subsidiary, the purchase price per share of Stock shall
be at least  110% of the Fair  Market  Value  per  share of Stock on the date of
grant.  The  purchase  price  of  each  share  of  Stock   purchasable  under  a
Nonqualified Option shall not be less than 100% of the Fair Market Value of such
share of Stock on the date the Option is granted; provided,  however, that if an
option  granted  to  the  Company's  Chief  Executive  Officer  or to any of the
Company's other four most highly compensated  officers is intended to qualify as
performance-based  compensation  under Section  162(m) of the Code, the exercise
price of such Option  shall not be less than 100% of the Fair  Market  Value (as
such term is  defined  below) of such  share of Stock on the date the  Option is
granted.  The exercise  price for each Option shall be subject to  adjustment as
provided in Section 10 below.  "Fair Market  Value"  means the closing  price of
publicly  traded shares of Stock on the principal  securities  exchange on which
shares of Stock are  listed (if the  shares of Stock are so  listed),  or on the
NASDAQ Stock Market (if the shares of Stock are  regularly  quoted on the NASDAQ
Stock Market),  or, if not so listed or regularly  quoted,  the mean between the
closing  bid and  asked  prices  of  publicly  traded  shares  of  Stock  in the
over-the-counter  market,  or,  if  such  bid  and  asked  prices  shall  not be
available,  as reported by any nationally  recognized quotation service selected
by the Company,  or as determined by the Committee in a manner  consistent  with
the  provisions  of the Code.  Anything  in this  Section  5(a) to the  contrary
notwithstanding,  in no event  shall the  purchase  price of a share of Stock be
less than the  minimum  price  permitted  under the  rules and  policies  of any
national securities exchange on which the shares of Stock are listed.

                 (b) OPTION TERM.  The term of each Option shall be fixed by the
Committee, but no Option shall be exercisable more than ten years after the date
such  Option is granted  and in the case of an  Incentive  Option  granted to an
Optionee  who, at the time such  Incentive  Option is granted,  owns (within the
meaning  of  Section  424(d)  of the Code)  more than 10% of the total  combined
voting  power of all  classes of stock of the Company or of any  Subsidiary,  no
such Incentive  Option shall be exercisable  more than five years after the date
such Incentive Option is granted.

                 (c)  EXERCISABILITY.  Subject to Section 5(e)  hereof,  Options
shall be  exercisable  at such  time or times  and  subject  to such  terms  and
conditions as shall be determined by the Committee.

                 Upon the  occurrence  of a "Change in Control" (as  hereinafter
defined),  the  Committee  may  accelerate  the  vesting and  exercisability  of
outstanding  Options, in whole or in part, as determined by the Committee in its
sole discretion. In its sole discretion,  the Committee may also determine that,
upon the  occurrence  of a Change in  Control,  each  outstanding  Option  shall
terminate  within a  specified  number  of days  after  notice  to the  Optionee
thereunder,  and each such Optionee shall receive, with respect to each share of
Company Stock subject to such Option,  an amount equal to the excess of the Fair
Market Value of such shares immediately prior to such Change in Control over the
exercise  price per share of such Option;  such amount shall be payable in cash,
in one or more kinds of property (including the property, if any, payable in the
transaction) or a combination  thereof,  as the Committee shall determine in its
sole discretion.

                 For purposes of the Plan,  a Change in Control  shall be deemed
to have occurred if:

                                       4

                         (i) a tender offer (or series of related  offers) shall
            be made  and  consummated  for the  ownership  of 50% or more of the
            outstanding voting securities of the Company,  unless as a result of
            such tender offer more than 50% of the outstanding voting securities
            of the  surviving  or  resulting  corporation  shall be owned in the
            aggregate  by the  stockholders  of  the  Company  (as  of the  time
            immediately  prior to the commencement of such offer),  any employee
            benefit  plan  of  the  Company  or  its  Subsidiaries,   and  their
            affiliates;

                         (ii) the Company shall be merged or  consolidated  with
            another   corporation,   unless  as  a  result  of  such  merger  or
            consolidation  more than 50% of the outstanding voting securities of
            the  surviving  or  resulting  corporation  shall  be  owned  in the
            aggregate  by the  stockholders  of  the  Company  (as  of the  time
            immediately prior to such transaction), any employee benefit plan of
            the Company or its Subsidiaries, and their affiliates;

                         (iii) the Company shall sell  substantially  all of its
            assets  to  another  corporation  that is not  wholly  owned  by the
            Company,  unless  as a result  of such  sale  more  than 50% of such
            assets shall be owned in the  aggregate by the  stockholders  of the
            Company (as of the time immediately prior to such transaction),  any
            employee  benefit plan of the Company or its  Subsidiaries and their
            affiliates; or

                         (iv) a Person (as defined  below) shall  acquire 50% or
            more of the outstanding  voting  securities of the Company  (whether
            directly, indirectly, beneficially or of record), unless as a result
            of  such  acquisition  more  than  50%  of  the  outstanding  voting
            securities of the surviving or resulting  corporation shall be owned
            in the aggregate by the  stockholders of the Company (as of the time
            immediately  prior to the first  acquisition  of such  securities by
            such  Person),  any  employee  benefit  plan of the  Company  or its
            Subsidiaries, and their affiliates.

            For purposes of this Section  5(c),  ownership of voting  securities
shall take into account and shall  include  ownership as  determined by applying
the  provisions of Rule  13d-3(d)(I)(i)  (as in effect on the date hereof) under
the  Exchange  Act. In  addition,  for such  purposes,  "Person"  shall have the
meaning  given in Section  3(a)(9) of the Exchange  Act, as modified and used in
Sections  13(d) and 14(d) thereof;  however,  a Person shall not include (A) the
Company or any of its  Subsidiaries;  (B) a trustee or other  fiduciary  holding
securities  under  an  employee  benefit  plan  of  the  Company  or  any of its
Subsidiaries;  (C) an underwriter  temporarily holding securities pursuant to an
offering of such securities; or (D) a corporation owned, directly or indirectly,
by the stockholders of the Company in substantially the same proportion as their
ownership of stock of the Company.

            (d) METHOD OF EXERCISE.  Options to the extent then  exercisable may
be exercised in whole or in part at any time during the option period, by giving
written  notice to the  Company  specifying  the number of shares of Stock to be
purchased,  accompanied by payment in full of the purchase price, in cash, or by
check  or such  other  instrument  as may be  acceptable  to the  Committee.  As
determined by the Committee, in its sole discretion,  at or after grant, payment

                                       5

in full or in part may be made at the  election of the  Optionee (i) in the form
of Stock owned by the  Optionee  (based on the Fair Market Value of the Stock on
the trading day before the Option is exercised)  which is not the subject of any
pledge or security interest, (ii) in the form of shares of Stock withheld by the
Company  from the shares of Stock  otherwise to be received  with such  withheld
shares of Stock having a Fair Market Value on the date of exercise  equal to the
exercise  price  of the  Option,  or (iii) by a  combination  of the  foregoing,
provided that the combined value of all cash and cash  equivalents  and the Fair
Market Value of any shares  surrendered to the Company is at least equal to such
exercise  price and except with  respect to (ii)  above,  such method of payment
will not cause a  disqualifying  disposition  of all or a  portion  of the Stock
received upon exercise of an Incentive  Option. An Optionee shall have the right
to dividends and other rights of a  stockholder  with respect to shares of Stock
purchased  upon exercise of an Option at such time as the Optionee (i) has given
written  notice of  exercise  and has paid in full for such  shares and (ii) has
satisfied such conditions that may be imposed by the Company with respect to the
withholding of taxes.

            (e) LIMIT ON VALUE OF INCENTIVE  OPTION.  The aggregate  Fair Market
Value,  determined as of the date the Incentive Option is granted,  of Stock for
which  Incentive  Options  are  exercisable  for the first time by any  Optionee
during any calendar  year under the Plan (and/or any other stock option plans of
the Company or any Subsidiary) shall not exceed $100,000.

            (f) INCENTIVE  OPTION SHARES.  A grant of an Incentive  Option under
this Plan shall  provide that (a) the Optionee  shall be required as a condition
of the exercise to furnish to the Company any payroll  (employment) tax required
to be withheld, and (b) if the Optionee makes a disposition,  within the meaning
of Section 424(c) of the Code and  regulations  promulgated  thereunder,  of any
share or shares of Stock  issued to him upon  exercise  of an  Incentive  Option
granted  under the Plan within the two-year  period  commencing on the day after
the date of the  grant of such  Incentive  Option or  within a  one-year  period
commencing  on the day after the date of  transfer of the share or shares to him
pursuant to the  exercise of such  Incentive  Option,  he shall,  within 10 days
after such  disposition,  notify the Company thereof and immediately  deliver to
the  Company any amount of United  States  federal,  state and local  income tax
withholding required by law.

            6.   TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS.

                 Stock Appreciation  Rights shall be exercisable at such time or
times and subject to such terms and  conditions  as shall be  determined  by the
Committee.  Unless otherwise  provided,  Stock Appreciation  Rights shall become
immediately   exercisable  and  shall  remain   exercisable   until  expiration,
cancellation or termination of the award.  Such rights may be exercised in whole
or in part by giving written notice to the Company. Stock Appreciation Rights to
the extent then  exercisable  may be  exercised  for payment in cash,  shares of
Common Stock or a combination  of both, as the Committee  shall deem  desirable,
equal to: (i) the  excess of the Fair  Market  Value as defined in Section  5(a)
herein of a share of Common Stock on the date of exercise over (ii) the exercise
price of such Stock Appreciation Right.

                                       6

            7.   TERMS AND CONDITIONS OF RESTRICTED STOCK.

                 Restricted  Stock may be granted under this Plan aside from, or
in  association  with,  any other  award and shall be subject  to the  following
conditions and shall contain such  additional  terms and  conditions  (including
provisions  relating to the  acceleration of vesting of Restricted  Stock upon a
Change  of  Control),  not  inconsistent  with  the  terms of the  Plan,  as the
Committee shall deem desirable:

                 (a) GRANTEE RIGHTS.  A Grantee shall have no rights to an award
of Restricted Stock unless and until Grantee accepts the award within the period
prescribed by the Committee and, if the Committee  shall deem  desirable,  makes
payment to the Company in cash,  or by check or such other  instrument as may be
acceptable to the Committee.  After  acceptance and issuance of a certificate or
certificates,  as provided  for below,  the  Grantee  shall have the rights of a
stockholder with respect to Restricted Stock subject to the  non-transferability
and forfeiture restrictions described in section 7(d) below.

                 (b) ISSUANCE OF  CERTIFICATES.  The Company  shall issue in the
Grantee's  name a  certificate  or  certificates  for the shares of Common Stock
associated with the award promptly after the Grantee accepts such award.

                 (c) DELIVERY OF CERTIFICATES.  Unless otherwise  provided,  any
certificate or certificates  issued  evidencing shares of Restricted Stock shall
not be delivered to the Grantee  until such shares are free of any  restrictions
specified by the Committee at the time of grant.

                 (d)  FORFEITABILITY,  NON-TRANSFERABILITY  OF RESTRICTED STOCK.
Shares of Restricted  Stock are  forfeitable  until the terms of the  Restricted
Stock grant have been satisfied. Shares of Restricted Stock are not transferable
until  the date on which the  Committee  has  specified  such  restrictions  has
lapsed.  Unless  otherwise  provided,  distributions in the form of dividends or
otherwise of  additional  shares or property in respect of shares of  Restricted
Stock shall be subject to the same  restrictions  as such  shares of  Restricted
Stock.

                 (e)  CHANGE  OF  CONTROL.  Upon the  occurrence  of a Change in
Control,  the Committee may  accelerate  the vesting of  outstanding  Restricted
Stock,  in  whole  or in  part,  as  determined  by the  Committee  in its  sole
discretion.

            8.   OTHER EQUITY INCENTIVES OR STOCK BASED AWARDS

                 The Committee may grant Equity Incentives  (including the grant
of unrestricted shares) to such key persons, in such amounts and subject to such
terms  and  conditions,  as the  Committee  shall in its  discretion  determine,
subject to the  provisions  of the Plan.  Such awards may entail the transfer of
actual  shares of  Common  Stock to Plan  participants,  or  payment  in cash or
otherwise of amounts based on the value of shares of Common Stock.

            9.   TERM OF PLAN.

                 No  Option,  Stock  Appreciation  Rights,  Restricted  Stock or
Equity Incentives shall be granted pursuant to the Plan on the date which is ten
years from the  effective  date of the Plan,  but  Options,  Stock  Appreciation
Rights or Equity Incentives theretofore granted may extend beyond that date.

                                       7

            10.  CAPITAL CHANGE OF THE COMPANY.

                 In the  event  of any  merger,  reorganization,  consolidation,
recapitalization,  stock  dividend,  or  other  change  in  corporate  structure
affecting  the Stock,  the  Committee  shall make an  appropriate  and equitable
adjustment in the number and kind of shares reserved for issuance under the Plan
and in the number  and option  price of shares  subject to  outstanding  Options
granted  under  the Plan,  to the end that  after  such  event  each  Optionee's
proportionate  interest shall be maintained as immediately before the occurrence
of such event.  The Committee  shall,  to the extent  feasible,  make such other
adjustments as may be required under the tax laws so that any Incentive  Options
previously  granted shall not be deemed  modified  within the meaning of Section
424(h) of the Code.  Appropriate  adjustments  shall also be made in the case of
outstanding  Stock  Appreciation  Rights and Restricted  Stock granted under the
Plan.

            11.  PURCHASE FOR INVESTMENT.

                 Unless the  Options  and  shares  covered by the Plan have been
registered under the Securities Act of 1933, as amended (the "Securities  Act"),
or the Company has determined that such registration is unnecessary, each person
exercising or receiving Options, Stock Appreciation Rights,  Restricted Stock or
Equity  Incentives  under  the Plan may be  required  by the  Company  to give a
representation  in  writing  that he is  acquiring  the  securities  for his own
account for investment  and not with a view to, or for sale in connection  with,
the distribution of any part thereof.

            12.  TAXES.

                 (a)  The  Company  may  make  such  provisions  as it may  deem
appropriate,  consistent  with  applicable  law, in connection with any Options,
Stock Appreciation  Rights,  Restricted Stock or Equity Incentives granted under
the Plan with  respect  to the  withholding  of any taxes  (including  income or
employment taxes) or any other tax matters.

                 (b) If any  Grantee,  in  connection  with the  acquisition  of
Restricted Stock,  makes the election  permitted under section 83(b) of the Code
(that is, an  election to include in gross  income in the year of  transfer  the
amounts  specified in section  83(b)),  such Grantee shall notify the Company of
the election with the Internal  Revenue Service  pursuant to regulations  issued
under the authority of Code section 83(b).

                 (c) If any  Grantee  shall  make any  disposition  of shares of
Stock  issued  pursuant  to  the  exercise  of an  Incentive  Option  under  the
circumstances  described  in  section  421(b) of the Code  (relating  to certain
disqualifying  dispositions),  such  Grantee  shall  notify the  Company of such
disposition within 10 days hereof.

                                       8

            13.  EFFECTIVE DATE OF PLAN.

                 The  Plan  shall be  effective  on April  28,  2003;  provided,
however,  that the Plan must  subsequently  be approved by majority  vote of the
Company's  stockholders  no later  than the  Company's  next  annual  meeting of
stockholders following April 28, 2003.

            14.  AMENDMENT AND TERMINATION.

                 The Board may amend,  suspend,  or terminate  the Plan,  except
that no amendment  shall be made that would impair the rights of any Optionee or
Grantee under any Option,  Stock Appreciation Right,  Restricted Stock or Equity
Incentive  theretofore  granted without the Optionee or Grantee's  consent,  and
except  that no  amendment  shall be made  which,  without  the  approval of the
stockholders of the Company would:

                 (a) materially increase the number of shares that may be issued
under the Plan, except as is provided in Section 10;

                 (b) materially  increase the benefits accruing to the Optionees
or Grantees under the Plan;

                 (c) materially  modify the  requirements  as to eligibility for
participation in the Plan;

                 (d) decrease the exercise price of an Incentive  Option to less
than  100% of the  Fair  Market  Value  per  share of Stock on the date of grant
thereof or the exercise price of a Nonqualified  Option to less than 100% of the
Fair Market Value per share of Stock on the date of grant thereof; or

                 (e) extend the term of any Option  beyond that  provided for in
Section 5(b).

                 The  Committee  may  amend  the  terms  of  any  Option,  Stock
Appreciation Right,  Restricted Stock or Equity Incentive  theretofore  granted,
prospectively or retroactively, but no such amendment shall impair the rights of
any Optionee or Grantee without the Optionee or Grantee's consent. The Committee
may also substitute new Options,  Stock Appreciation  Rights or Restricted Stock
for previously granted Options,  Stock  Appreciation  Rights or Restricted Stock
including  options  granted under other plans  applicable to the participant and
previously  granted Options having higher option prices,  upon such terms as the
Committee may deem appropriate.

                                       9

            15.  GOVERNMENT REGULATIONS.

                 The  Plan,  and  the  grant  and  exercise  of  Options,  Stock
Appreciation Rights,  Restricted Stock and Equity Incentives hereunder,  and the
obligation of the Company to sell and deliver  shares under such Options,  Stock
Appreciation Rights,  Restricted Stock and Equity Incentives shall be subject to
all  applicable  laws,  rules  and  regulations,  and to such  approvals  by any
governmental  agencies,  national securities exchanges and interdealer quotation
systems as may be required.

            16.  GENERAL PROVISIONS.

                 (a)   CERTIFICATES.   All  certificates  for  shares  of  Stock
delivered under the Plan shall be subject to such stop transfer orders and other
restrictions  as the Committee may deem advisable  under the rules,  regulations
and other  requirements  of the  Securities  and Exchange  Commission,  or other
securities  commission  having  jurisdiction,  any  applicable  Federal or state
securities  law, any stock exchange or interdealer  quotation  system upon which
the  Stock is then  listed  or traded  and the  Committee  may cause a legend or
legends to be placed on any such  certificates to make appropriate  reference to
such restrictions.

                 (b)  EMPLOYMENT  MATTERS.  The  adoption  of the Plan shall not
confer upon any Optionee or Grantee of the Company or any  Subsidiary  any right
to  continued  employment  or, in the case of an  Optionee  or Grantee  who is a
director,  continued service as a director, with the Company or a Subsidiary, as
the case may be, nor shall it interfere in any way with the right of the Company
or any  Subsidiary to terminate  the  employment  of any of its  employees,  the
service of any of its  directors or the retention of any of its  consultants  or
advisors at any time.

                 (c)  LIMITATION  OF  LIABILITY.  No  member of the Board or the
Committee,  or any officer or  employee  of the Company  acting on behalf of the
Board or the Committee, shall be personally liable for any action, determination
or interpretation  taken or made in good faith with respect to the Plan, and all
members of the Board or the  Committee  and each and any  officer or employee of
the Company  acting on their behalf  shall,  to the extent  permitted by law, be
fully  indemnified  and  protected by the Company in respect of any such action,
determination or interpretation.

                 (d) REGISTRATION OF STOCK.  Notwithstanding any other provision
in the Plan, no Option may be exercised  unless and until the Stock to be issued
upon the  exercise  thereof has been  registered  under the  Securities  Act and
applicable  state  securities  laws,  or are,  in the  opinion of counsel to the
Company,  exempt from such registration in the United States.  The Company shall
not be under any  obligation  to  register  under  applicable  federal  or state
securities  laws any Stock to be issued upon the  exercise of an Option  granted
hereunder in order to permit the exercise of an Option and the issuance and sale
of the Stock  subject  to such  Option,  although  the  Company  may in its sole
discretion  register such Stock at such time as the Company shall determine.  If
the Company  chooses to comply with such an  exemption  from  registration,  the
Stock issued  under the Plan may, at the  direction  of the  Committee,  bear an
appropriate  restrictive  legend restricting the transfer or pledge of the Stock
represented  thereby,  and the Committee may also give appropriate stop transfer
instructions with respect to such Stock to the Company's transfer agent.

                                       10

                 (e) NON-TRANSFERABILITY.  Options and Stock Appreciation Rights
granted  hereunder  are not  transferable  and may be  exercised  solely  by the
Optionee  or  Grantee  during his  lifetime  or after his death by the person or
persons entitled thereto under his will or the laws of descent and distribution.
The Committee,  in its sole discretion,  may permit a transfer of a Nonqualified
Option to (i) a trust for the  benefit of the  Optionee  or (ii) a member of the
Optionee's immediate family (or a trust for his or her benefit).  Any attempt to
transfer,  assign,  pledge or otherwise  dispose of, or to subject to execution,
attachment or similar process,  any Option or Stock  Appreciation Right contrary
to the provisions  hereof shall be void and  ineffective and shall give no right
to the purported transferee.

                 (f) NO RIGHTS AS A  STOCKHOLDER.  No  Optionee  or Grantee  (or
other  person  having the right to exercise  such  award)  shall have any of the
rights of a  stockholder  of the Company with respect to shares  subject to such
award until the issuance of a stock  certificate to such person for such shares.
Except as otherwise  provided herein, no adjustment shall be made for dividends,
distributions or other rights (whether ordinary or extraordinary, and whether in
cash,  securities  or other  property) for which the record date is prior to the
date such stock certificate is issued.

                 (g) TERMINATION BY DEATH.  Unless  otherwise  determined by the
Committee,  if any  Optionee  or  Grantee's  employment  with or  service to the
Company or any  Subsidiary  terminates  by reason of death,  the Option or Stock
Appreciation  Right may thereafter be exercised,  to the extent then exercisable
(or on such  accelerated  basis as the  Committee  shall  determine  at or after
grant),  by the legal  representative  of the  estate or by the  legatee  of the
Optionee or Grantee  under the will of the Optionee or Grantee,  for a period of
one year after the date of such death or until the expiration of the stated term
of such Option or Stock Appreciation Right as provided under the Plan, whichever
period is shorter.

                 (h)  TERMINATION  BY REASON  OF  DISABILITY.  Unless  otherwise
determined by the  Committee,  if any Optionee or Grantee's  employment  with or
service  to the  Company  or any  Subsidiary  terminates  by reason of total and
permanent  disability,  any  Option  or Stock  Appreciation  Right  held by such
Optionee  or  Grantee  may  thereafter  be  exercised,  to  the  extent  it  was
exercisable at the time of termination due to Disability (or on such accelerated
basis  as the  Committee  shall  determine  at or after  grant),  but may not be
exercised  after 60 days after the date of such  termination  of  employment  or
service  or  the  expiration  of  the  stated  term  of  such  Option  or  Stock
Appreciation Right, whichever period is shorter; provided, however, that, if the
Optionee or Grantee dies within such 60-day period,  any  unexercised  Option or
Stock  Appreciation  Right held by such Optionee or Grantee shall  thereafter be
exercisable to the extent to which it was exercisable at the time of death for a
period of one year after the date of such  death or for the stated  term of such
Option or Stock Appreciation Right, whichever period is shorter.

                 (i)  TERMINATION  BY REASON  OF  RETIREMENT.  Unless  otherwise
determined by the  Committee,  if any Optionee or Grantee's  employment  with or
service to the Company or any Subsidiary terminates by reason of Normal or Early

                                       11

Retirement (as such terms are defined below),  any Option or Stock  Appreciation
Right held by such Optionee or Grantee may thereafter be exercised to the extent
it was exercisable at the time of such Retirement (or on such accelerated  basis
as the Committee  shall  determine at or after grant),  but may not be exercised
after 60 days after the date of such termination of employment or service or the
expiration  of the  stated  term of such  Option  or Stock  Appreciation  Right,
whichever period is shorter; provided, however, that, if the Optionee or Grantee
dies within such 60-day period,  any  unexercised  Option or Stock  Appreciation
Right held by such Optionee or Grantee shall  thereafter be exercisable,  to the
extent to which it was  exercisable  at the time of  death,  for a period of one
year after the date of such death or for the stated term of such Option or Stock
Appreciation Right, whichever period is shorter.

                 For purposes of this paragraph (i), "Normal  Retirement"  shall
mean retirement from active  employment with the Company or any Subsidiary on or
after  the  normal  retirement  date  specified  in the  applicable  Company  or
Subsidiary  pension  plan  or if no  such  pension  plan,  age  65,  and  "Early
Retirement" shall mean retirement from active employment with the Company or any
Subsidiary pursuant to the early retirement provisions of the applicable Company
or Subsidiary pension plan or if no such pension plan, age 55.

                 (j)  OTHER  TERMINATION.  Unless  otherwise  determined  by the
Committee,  if any  Optionee  or  Grantee's  employment  with or  service to the
Company or any Subsidiary terminates for any reason other than death, Disability
or Normal or Early  Retirement,  the Option or Stock  Appreciation  Right  shall
thereupon terminate, except that the portion of any Option or Stock Appreciation
Right that was  exercisable  on the date of such  termination  of  employment or
service may be exercised for the lesser of 30 days after the date of termination
or the balance of such Option or Stock Appreciation Right's term if the Optionee
or  Grantee's  employment  or  service  with the  Company or any  Subsidiary  is
terminated by the Company or such Subsidiary without cause (the determination as
to whether termination was for cause to be made by the Committee).  The transfer
of an  Optionee  or Grantee  from the employ of or service to the Company to the
employ of or service to a Subsidiary,  or vice versa,  or from one Subsidiary to
another,  shall not be deemed to  constitute  a  termination  of  employment  or
service for purposes of the Plan.

                                         WHX CORPORATION
                                         April 28, 2003

                                       12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00053-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00053-of-00352.parquet"}]]