Document:

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                                                                    EXHIBIT 10.1

               AMENDED AND RESTATED MANAGEMENT SERVICES AGREEMENT

         THIS AMENDED AND RESTATED MANAGEMENT SERVICES AGREEMENT (this
"Agreement") is made and entered as of the 19th day of April, 2005, by and
between WEATHERLY GROUP, LLC, a Delaware limited liability company ("Service
Provider"), and ORCHID PAPER PRODUCTS COMPANY, a Delaware corporation (the
"Company").

         WHEREAS, Service Provider and the Company desire to amend and restate
that certain Management Services Agreement entered as of March 1, 2005 by and
between Service Provider and the Company (the "Original Agreement"); and

         WHEREAS, Service Provider has developed experience and knowledge in
business and financial management, which experience and knowledge are of great
value to the Company in implementing its business. Service Provider is willing
to provide financial and management consulting services to the Company.
Accordingly, the compensation arrangements set forth in this Agreement are
designed to compensate Service Provider for such services.

         NOW, THEREFORE, for and in consideration of the covenants and
conditions hereinafter set forth, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, intending to be
legally bound hereby, the parties hereto mutually agree as follows:

         SECTION 1. TERM; TERMINATION. Subject to the provisions hereinafter set
forth, the term of this Agreement commenced as of March 1, 2004 and shall end
five (5) years from such date (the "Term") and shall terminate upon the
expiration of the Term or as otherwise provided herein. The Term shall terminate
prior to the fifth anniversary of March 1, 2004 in the event of the consummation
of a change of control transaction or at any time after the March 1, 2007 in the
event that the Company upon a resolution of the Board gives notice of such
termination.

         SECTION 2. EXTENT OF SERVICES. During the Term, Service Provider shall
provide acquisition, management and operations services of a type similar to the
following:

                  (a) assisting with the coordination, attendance and
organization of the regularly scheduled meetings of the Company's Board of
Directors (the "Board") and with the dissemination of all materials and other
information which the Board will be asked to consider and act on at such
meetings;

                  (b) actively seeking out and bringing to the Board's attention
new business opportunities;

                  (c) at the request of the Board finding financing for
acquisitions, growth and/or refinancing of the Company's existing debt;

                  (d) serving as the primary liaison between the Company and its
investors and financial institutions;

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                  (e) actively monitoring and evaluating the Company's
performance and report the results of his findings to the Board;

                  (f) assisting the President of the Company in developing an
annual business plan for the Company;

                  (g) assisting the President of the Company in planning for the
Company's future; and

                  (h) performing such other services as may be reasonably
requested by the Board.

         SECTION 3. TIME COMMITMENT. The Service Provider shall devote
sufficient time to enable the Service Provider to provide the services
contemplated in this Agreement; provided, however, the Company acknowledges and
agrees that the amount of time provided by the Service Provider hereunder will
vary depending on the nature and status of the Company's activities in any given
month.

         SECTION 4. CONSIDERATION.

                  (a) Consulting Fee. The Company shall pay Service Provider an
annual management fee of Three Hundred Twenty-Five Thousand Dollars ($325,000),
payable monthly in arrears; provided that in the event of an initial public
offering of shares of the Company's capital stock pursuant to a registration
statement filed by the Company under the Securities Act of 1933, as amended,
which has become effective thereunder (other than a registration statement
relating solely to employee benefit plans or a transaction covered by Rule 145
of the Securities and Exchange Commission), the management fee shall be reduced
to an annual management fee of One Hundred Twenty-Five Thousand Dollars
($125,000.00), payable monthly in arrears, in exchange for the Company making a
lump sum payment to Service Provider of One Hundred Fifty Thousand Dollars
($150,000.00), for services rendered hereunder (the "Consulting Fee");

                  (b) In addition to the amount specified in Section 4(a) above,
Company shall pay Manager a fee for each acquisition made by Company during the
Term. Such fees shall be calculated on a standard Lehman Scale (5.0% of the
first $1.0 million of value, 4.0% of the second $1.0 million of value, 3.0% of
the third $1.0 million of value, 2.0% of the fourth $1.0 million of value and
1.0% of the value paid above $4.0 million) and applied to the total acquisition
consideration of any acquisition made by Orchids during the Term.

                  (c) Financing Related Suspension in Payment of the Consulting
Fee. In the event that the Company is not in compliance with the financial
covenants contained in that certain Agented Revolving Credit and Term Loan
Agreement dated October 15, 2002, as amended, between Bank of Oklahoma et. al.,
the Board shall provide written notice of such deficiency to the Service
Provider and, to the extent required by the terms of either of the Financing
Agreements, the Board may elect to suspend the payment of, but not the accrual
of, 50% of the Consulting Fee (or such larger percentage as may be required
under the Financing Agreements) for so long as the Company is not in compliance
with such covenants. In such reduction, partial months shall be computed at an
appropriate daily rate. At such time as the

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Company comes into compliance with such covenants, all accrued, but unpaid,
portions of the Consulting Fee shall be paid in full.

                  (d) Expenses. At all times during the Term, the Company shall
promptly reimburse Service Provider for reasonable out-of-pocket expenses
incurred in performing services pursuant to this Agreement, including, without
limitation, travel expenses.

                  (e) Payment to Service Provider. All fees payable to Service
Provider shall be payable in cash by wire transfer of immediately available
funds to the account of Service Provider, as specified thereby to the Company in
writing prior to such payment.

         SECTION 5. PROVIDER OF SERVICES. The Service Provider agrees that the
services to be provided hereunder shall be provided exclusively by principals of
Service Provider or its affiliates or assigns.

         SECTION 6. INDEPENDENT CONTRACTOR STATUS. In the performance of Service
Provider's obligations hereunder, it is understood that Service Provider shall
be at all times acting and performing independently of the Company's control as
to the manner and methods of providing the services required under this
Agreement. Service Provider's compliance with the rules and regulations of the
Company governing the conduct of Service Provider, generally, shall be limited
to those rules and regulations to which Service Provider has previously agreed
in writing. In the performance of Service Provider's obligations hereunder,
neither Service Provider nor any of its stockholders, officers, directors,
employees, agents or representatives shall be considered an employee, agent,
officer, or associate of the Company or any of its subsidiaries for any purpose.
It is understood that Service Provider is free to contract for similar services
with other persons or companies while under contract with the Company. Service
Provider shall not, in connection with any services provided for, to, or on
behalf of the Company represent to any person or entity that Service Provider is
associated with the Company in any capacity other than that of an independent
contractor. This Agreement in no way limits the ability of Service Provider, or
any of its affiliates, to engage in any other activities.

         SECTION 7. INDEMNIFICATION. The Company agrees to indemnify, defend and
hold harmless Service Provider and its stockholders, officers, directors,
affiliates, employees and agents against and from any and all loss, liability,
suits, claims, costs, damages and expenses (including attorneys' fees, whether
arising in disputes between the parties or with third parties) arising from this
Agreement and/or their performance hereunder, except as a result of their gross
negligence or intentional wrongdoing and except for diminution in value of any
investment in the Company.

         SECTION 8. SUPERSEDES. Upon the execution of this Agreement by the
parties hereto, this Agreement shall supersede and replace the Original
Agreement.

         SECTION 9. ENTIRE AGREEMENT. This Agreement constitutes the entire
understanding between the parties relating to the provision of services
contemplated herein and there are no covenants, conditions, representations, or
agreements, oral or written, of any nature whatsoever, other than those
contained herein, relating to the provision of services contemplated herein.

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         SECTION 10. AMENDMENTS. No amendment, alteration, or modification of
this Agreement shall be binding upon the parties hereto unless said amendment,
alteration, or modification is in writing and signed by both parties hereto.

         SECTION 11. SEVERABILITY. In the event any provision of this Agreement
shall be found to be void, the remaining provisions of this Agreement shall
nevertheless be binding with the same effect as though the void part were
deleted.

         SECTION 12. WAIVER. The waiver of a breach of any term of this
Agreement by any of the parties hereto shall not operate or be construed as a
waiver by such party of the breach of any other term of this Agreement or as a
waiver of a subsequent breach of the same term of this Agreement.

         SECTION 13. ASSIGNMENT. Service Provider shall not assign, transfer, or
convey this Agreement, or in any way encumber the compensation or other benefits
payable to it hereunder, except with the prior written consent of the Company;
provided, however, the Service Provider may assign this Agreement to its
affiliates without the prior written consent of the Company. The Company may
assign this Agreement and its rights hereunder in whole, but not in part, to any
entity with or into which it may transfer all or substantially all of its assets
(and, in such event, the term "Company" as used herein shall mean and refer to
such successor-in-interest).

         SECTION 14. NOTICES. All notices required or permitted to be given
under this Agreement shall be in writing and shall be delivered personally or
sent by facsimile, overnight delivery, or registered mail, return receipt
requested, to the parties at the addresses set forth on the signature page of
this Agreement or at such other addresses as either party may designate to the
other in writing. Notices delivered personally or by overnight delivery shall be
effective upon delivery. Notices properly addressed and delivered by mail,
return receipt requested, shall be effective upon deposit with the United States
Postal Service. Notices sent by facsimile shall be effective upon confirmation
of transmission.

         SECTION 15. BINDING EFFECT. This Agreement shall be binding on the
parties hereto and on their respective heirs, administrators, executors,
successors, and permitted assigns.

         SECTION 16. COUNTERPARTS. This Agreement may be executed in two or more
counterparts and by facsimile, each of which shall constitute an original, but
all of which together shall constitute but a single document.

         SECTION 17. GOVERNING LAW; JURISDICTION. This Agreement shall be
governed by and construed in accordance with the laws of the State of Delaware,
without giving effect to the conflict of laws provisions. Each party consents to
the in personam jurisdiction of the state and federal courts located in the
State of Delaware in connection with any claim or dispute arising under or in
connection with this Agreement. Each party consents to service of process by
U.S. mail.

         SECTION 18. Waiver of Jury Trial. EXCEPT TO THE EXTENT PROHIBITED BY
ANY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH OF THE PARTIES HERETO HEREBY
WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT
OR OTHERWISE), ANY RIGHT TO TRIAL BY

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JURY IN ANY FORUM IN RESPECT OF ANY ISSUE, CLAIM, DEMAND, CAUSE OF ACTION,
ACTION, SUIT OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE
SUBJECT MATTER HEREOF, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING
AND WHETHER IN CONTRACT OR TORT OR OTHERWISE. EACH OF THE PARTIES HERETO
ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY EACH OTHER PARTY THAT THE PROVISIONS
OF THIS SECTION 18 CONSTITUTE A MATERIAL INDUCEMENT UPON WHICH SUCH PARTY IS
RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT AND THE TRANSACTIONS
CONTEMPLATED HEREBY. EITHER OF THE PARTIES HERETO MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF
THE CONSENT OF EACH OF THE PARTIES HERETO TO THE WAIVER OF ITS RIGHT TO TRIAL BY
JURY.

                           [SIGNATURE PAGES TO FOLLOW]

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         IN WITNESS WHEREOF, the parties have executed this Agreement on the
date first above written.

                                         ORCHIDS PAPER PRODUCTS COMPANY

                                         By:
                                             -----------------------------------
                                             Name:    Michael P. Sage
                                            Title:    Chief Executive Officer
                                          Address:    4826 Hunt Street
                                                      Pryor, Oklahoma 74361
                                                      Facsimile: (908) ___-____

                                         WEATHERLY GROUP, LLC

                                         By:
                                             -----------------------------------
                                             Name:    Douglas E. Hailey
                                            Title:    Managing Member
                                          Address:    1171 Maggies Way
                                                      Waterbury Center, VT 05677
                                                      Facsimile: (802) 244-4048

                                         TAGLICH BROTHERS, INC.

                                         By:
                                             -----------------------------------
                                             Name:
                                            Title:
                                          Address:

                                       6<PAGE>
                                                                    Exhibit 10.2

                         ORCHIDS PAPER PRODUCTS COMPANY
                              STOCK INCENTIVE PLAN

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                         ORCHIDS PAPER PRODUCTS COMPANY
                              STOCK INCENTIVE PLAN

                                TABLE OF CONTENTS

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                                                                                                    PAGE
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<S>                                                                                                 <C>
1.       Purpose of the Plan..........................................................................1

2.       Definitions..................................................................................1

         A.       "Act"...............................................................................1
         B.       "Award".............................................................................1
         C.       "Award Agreement"...................................................................1
         D.       "Board".............................................................................1
         E.       "Cash-Based Award"..................................................................1
         F.       "Change in Control".................................................................1
         G.       "Code"..............................................................................2
         H.       "Committee".........................................................................2
         I.       "Company"...........................................................................2
         J.       "Fair Market Value".................................................................2
         K.       "Incentive Stock Option"............................................................2
         L.       "Non-qualified Stock Option"........................................................2
         M.       "Option"............................................................................2
         N.       "Other Stock-Based Award"...........................................................2
         O.       "Parent"............................................................................3
         P.       "Participant".......................................................................3
         Q.       "Plan"..............................................................................3
         R.       "Public Offering" ..................................................................3
         S.       "Stock".............................................................................3
         T.       "Stock Appreciation Right"..........................................................3
         U.       "Subsidiary"........................................................................3

3.       Stock Subject to the Plan....................................................................3

4.       Administration...............................................................................4

5.       Committee....................................................................................4
</TABLE>

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<TABLE>
<S>                                                                                                  <C>

6.       Options...................................................................................... 4
         A.       Type of Option...................................................................... 4
         C.       Exercise - Elections and Restrictions............................................... 5
         D.       Option Terms........................................................................ 5
         E.       Successive Option Grants............................................................ 6
         F.       Additional Incentive Stock Option Requirements...................................... 6
         G.       Deferral of Gain on a Non-qualified Stock Option.................................... 6

7.       Stock Appreciation Rights.................................................................... 6

8.       Other Stock-Based Awards and Cash-Based Awards............................................... 7

9.       Performance-Based Awards..................................................................... 7

10.      Nontransferability of Awards................................................................. 8

11.      Investment Purpose........................................................................... 8
         A.       Right of First Refusal.............................................................. 8
         B.       Take-Along Rights................................................................... 9
         C.       Effect of Prohibited Transfer....................................................... 9
         D.       Buy-Back Rights.....................................................................10
         E.       Exceptions to Transfer Restrictions.................................................10
         F.       Termination of Transfer Restrictions................................................10

12.      Adjustments Upon Changes in Capitalization or Corporation Acquisitions.......................10

13.      Amendment and Termination....................................................................11

14.      Effectiveness of the Plan....................................................................11

15.      Time of Granting of an Award.................................................................11

16.      Term of Plan.................................................................................11

17.      No Right To Continued Employment.............................................................11

18.      Choice of Law................................................................................12
</TABLE>
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                         ORCHIDS PAPER PRODUCTS COMPANY
                              STOCK INCENTIVE PLAN

1.       Purpose of the Plan.

         The purpose of the Plan is to provide the Company with a means to
assist in recruiting, retaining and rewarding certain employees, directors and
consultants and to motivate such individuals to exert their best efforts on
behalf of the Company by providing incentives through the granting of Awards. By
granting Awards to such individuals, the Company expects that the interests of
the recipients will be better aligned with those of the Company.

2.       Definitions.

         Unless the context clearly indicates otherwise, the following
capitalized terms shall have the meanings set forth below:

         A.  "Act" means the Securities Exchange Act of 1934, as amended, or any
             successor thereto.

         B.  "Award" means a grant under the Plan of an Option, Stock
             Appreciation Right, Cash-Based Award or Other Stock-Based Award.

         C.  "Award Agreement" means an agreement entered into between the
             Company and a Participant setting forth the terms and provisions
             applicable to Awards granted under the Plan.

         D.  "Board" means the Board of Directors of the Company.

         E.  "Cash-Based Award" means an Award described in Section 8 as a
             Cash-Based Award.

         F.  "Change in Control" means (i) the purchase or other acquisition
             (other than from the Company) by any person, entity or group of
             persons, within the meaning of Section 13(d) or 14(d) of the Act
             (excluding, for this purpose, the Company or its subsidiaries or
             any employee benefit plan of the Company or its subsidiaries), of
             beneficial ownership (within the meaning of Rule 13d-3 promulgated
             under the Act) of 20% or more of either the then-outstanding shares
             of common stock of the Company or the combined voting power of the
             Company's then-outstanding voting securities entitled to vote
             generally in the election of directors; or (ii) individuals who, as
             of the date hereof, constitute the Board (and, as of the date
             hereof, the "Incumbent Board") cease for any reason to constitute
             at least a majority of the Board, provided that any person who
             becomes a director subsequent to the date hereof whose election, or
             nomination for election by the Company's stockholders, was approved
             by a vote of at least a majority of the directors then comprising
             the Incumbent Board (other than an individual whose

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             initial assumption of office is in connection with an actual or
             threatened election contest relating to the election of directors
             of the Company, as such terms are used in Rule 14a-11 of Regulation
             14A promulgated under the Act) shall be, for purposes of this
             section, considered as though such person were a member of the
             Incumbent Board; or (iii) approval by the stockholders of the
             Company of a reorganization, merger or consolidation, in each case
             with respect to which persons who were the stockholders of the
             Company immediately prior to such reorganization, merger or
             consolidation do not, immediately thereafter, own more than 50% of,
             respectively, the common stock and the combined voting power
             entitled to vote generally in the election of directors of the
             reorganized, merged or consolidated corporation's then-outstanding
             voting securities, or of a liquidation or dissolution of the
             Company or of the sale of all or substantially all of the assets of
             the Company.

         G.  "Code" means the Internal Revenue Code of 1986, as amended, or any
             successor thereto.

         H.  "Committee" means the committee described in Section 5.

         I.  "Company" means Orchids Paper Products Company, a Delaware
             corporation.

         J.  "Fair Market Value" means (i) if there should be a public market
             for the relevant Stock on the determination date, the arithmetic
             mean between the high and lows of prices of such Stock as reported
             on such date on the Composite Tape of the principal national
             securities exchange or, if applicable, the NASDAQ National Market
             on which such Stock is listed or admitted to trading, or, if such
             Stock is not listed or admitted on any national securities exchange
             or the NASDAQ National Market, the arithmetic mean of the per share
             closing bid price and per share closing asked price on such date as
             quoted on the National Association of Securities Dealers Automated
             Quotation System (or such market in which such prices are regularly
             quoted) ("NASDAQ"), or if no sale of such shares shall have been
             reported on the Composite Tape of any national securities exchange
             or the NASDAQ National Market or quoted on the NASDAQ on such date,
             then the immediately preceding date on which sales of such shares
             have been so reported or quoted shall be used, and (ii) if there
             should not be a public market for the Stock on such date, the value
             established by the Committee in good faith.

         K.  "Incentive Stock Option" means a stock option which is an incentive
             stock option within the meaning of Code Section 422.

         L.  "Non-qualified Stock Option" means a stock option which is not an
             Incentive Stock Option.

         M.  "Option" means both an Incentive Stock Option and a Non-Qualified
             Stock Option.

         N.  "Other Stock-Based Award" means an Award granted pursuant to
             Section 8 and described as an Other Stock-Based Award.

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         O.  "Parent" means any corporation (other than the Company) in an
             unbroken chain of corporations ending with the Company if, at the
             time of the granting of the Option, each of the corporations other
             than the Company owns stock possessing 50% or more of the total
             combined voting power of all classes of stock in one of the other
             corporations in such chain, or such other meaning as may be
             hereafter ascribed to it in Code Section 424.

         P.  "Participant" means an employee, director or consultant of the
             Company who is selected by the Committee to receive an Award.

         Q.  "Plan" means the Orchids Paper Products Company 2002 Stock
             Incentive Plan.

         R.  "Public Offering" means the creation of an active trading market in
             Common Stock by the sale of Common Stock to the public pursuant to
             a registration statement under the Securities Act of 1933.

         S.  "Stock" means the common stock of the Company.

         T.  "Stock Appreciation Right" means a stock appreciation right
             described in Section 7.

         U.  "Subsidiary" means any corporation (other than the Company) in an
             unbroken chain of corporations beginning with the Company if, at
             the time of granting an Award, each of the corporations other than
             the last corporation in the unbroken chain owns stock possessing
             50% or more of the total combined voting power of all classes of
             stock in one of the other corporations in such chain, or such other
             meaning as may be hereafter ascribed to it in Code Section 424.

3.       Stock Subject to the Plan.

         Four hundred sixty-five thousand (465,000) shares of Stock have been
allocated to the Plan and will be reserved to satisfy Awards under the Plan. The
maximum number of shares of Stock subject to Awards which may be granted during
a calendar year to a Participant shall be ________________ (            ). The
Company may, in its discretion, use shares held in the treasury in lieu of
authorized but unissued shares. If any Award shall expire or terminate for any
reason, the shares subject to the Award shall again be available for the
purposes of the Plan. Any shares of Stock which are used by a Participant as
full or partial payment to the Company to satisfy a purchase price related to an
Award shall again be available for the purposes of the Plan. To the extent any
shares subject to an Award are not delivered to a Participant because such
shares are used to satisfy an applicable tax-withholding obligation, such
withheld shares shall again be available for the purposes of the Plan.

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4.       Administration.

         The Plan shall be administered by the Committee. Subject to the express
provisions of the Plan, the Committee shall have plenary authority, in its
discretion, to determine the individuals to whom, and the time or times at
which, Awards shall be granted and the number of shares, if applicable, to be
subject to each Award. In making such determinations, the Committee may take
into account the nature of services rendered by the respective individuals,
their present and potential contributions to the Company's success and such
other factors as the Committee, in its discretion, shall deem relevant. Subject
to the express provisions of the Plan, the Committee shall also have plenary
discretionary authority to interpret the Plan, to prescribe, amend and rescind
rules and regulations relating to it, to determine the terms and provisions of
the respective Award Agreements (which need not be identical) and to make all
other determinations necessary or advisable for the administration of the Plan.
The Committee's determinations on the matters referred to in this Section 4
shall be conclusive.

5.       Committee.

         The Committee shall be comprised of directors on the compensation
committee of the Board of Directors of the Company ("Board of Directors"). A
majority of its members shall constitute quorum. All determinations of the
Committee shall be made by a majority of its members present at any meeting at
which there is a quorum. Any decision or determination reduced to writing and
signed by all of the members shall as effective as if it had been made by a
majority vote at a meeting duly called and held. The Committee may appoint a
secretary, shall keep minutes of its meetings and shall make such rules and
regulations for the conduct of its business as it shall deem advisable. The
Committee may, to the extent permitted by law, delegate its responsibilities and
authority hereunder to an officer of the Company.

         The Committee shall be appointed by the Board, which may from time to
time appoint members of the Committee in substitution for members previously
appointed and may fill vacancies, however caused, in the Committee.

6.       Options. The Committee, in its discretion, may grant Options which are
Incentive Stock Options or Non-qualified Stock Options, as evidenced by the
Award Agreement, and shall be subject to the foregoing and the following terms
and conditions and to such other terms and conditions, not inconsistent
therewith, as the Committee shall determine:

         A.  Type of Option. Incentive Stock Options may be granted to any
             individual classified by the Committee as an employee of the
             Company, a Parent or a Subsidiary. A Non-Qualified Stock Option may
             be granted to any individual selected by the Committee.

         B.  Option Prices. The purchase price of the Stock under each Incentive
             Stock Option shall not be less than 100% of the Fair Market Value
             of the Stock at the time of the granting of the Option; provided
             that, in the case of a Participant who owns more than 10% of the
             total combined voting power of all classes of stock of the Company,
             a Parent or a Subsidiary, the purchase price of the Stock under
             each Incentive Stock Option shall not be less than 110% of the Fair
             Market Value of the Stock on the date such Option is granted. The
             purchase price of the Stock

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             under each Non-qualified Stock Option shall be determined from time
             to time by the Committee, which need not be uniform for all
             Participants, and shall not be less than 100% of Fair Market Value.

         C.  Exercise - Elections and Restrictions. The purchase price for an
             Option is to be paid in full upon the exercise of the Option,
             either (i) in cash, (ii) in the discretion of the Committee, by the
             tender to the Company (either actual or by attestation) of shares
             of Stock already owned by the Participant for a period of at least
             six months as of the date of tender and registered in his or her
             name, having a Fair Market Value equal to the cash exercise price
             of the Option being exercised, or (iii) in the discretion of the
             Committee, by any combination of the payment methods specified in
             clauses (i) and (ii) hereof; provided that, no shares of Stock may
             be tendered in exercise of an Incentive Stock Option if such shares
             were acquired by the Participant through the exercise of an
             Incentive Stock Option unless (a) such shares have been held by the
             Participant for at least one year and (b) at least two years have
             elapsed since such prior Incentive Stock Option was granted; and
             provided further that, unless otherwise specifically provided in an
             Award Agreement, until such time as a Public Offering shall occur,
             the only method of payment of the purchase price for an Option
             shall be cash. The Committee may provide in an Award Agreement that
             payment in full of the option price need not accompany the written
             notice of exercise provided that the notice of exercise directs
             that the certificate or certificates for the shares of Stock for
             which the Option is exercised be delivered to a licensed broker
             acceptable to the Company as the agent for the individual
             exercising the Option and, at the time such certificate or
             certificates are delivered, the broker tenders to the Company cash
             (or cash equivalents acceptable to the Company) equal to the option
             price for the shares of Stock purchased pursuant to the exercise of
             the Option plus the amount (if any) of any withholding obligations
             on the part of the Company. The proceeds of sale of Stock subject
             to the Option are to be added to the general funds of the Company
             or to the shares of the Stock held in its Treasury, and used for
             its corporate purposes as the Board shall determine.

         D.  Option Terms. The term of each Option shall not be more than ten
             (10) years from the date of granting thereof or such shorter period
             as is prescribed in the Award Agreement; provided that, in the case
             of a Participant who owns more than ten percent (10%) of the total
             combined voting power of all classes of stock of the Company, a
             Parent or a Subsidiary, the term of any Incentive Stock Option
             shall not be more than five (5) years from the date of granting
             thereof or such shorter period as prescribed in the Award
             Agreement. Within such limit, Options will be exercisable at such
             time or times, and subject to such restrictions and conditions, as
             the Committee shall, in each instance, approve, which need not be
             uniform for all Participants. The holder of an Option shall have
             none of the rights of a shareholder with respect to the shares
             subject to Option until such shares shall be issued to him or her
             upon the exercise of his or her Option. Upon exercise of an Option,
             the Committee shall withhold a sufficient number of shares to
             satisfy the Company's minimum required statutory withholding
             obligations for any taxes incurred as a result of such exercise
             (based on the minimum statutory withholding

                                       5
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             rates for federal and state tax purposes, including payroll taxes);
             provided that, in lieu of all or part of such withholding, the
             Participant may pay an equivalent amount of cash to the Company.

         E.  Successive Option Grants. As determined by the Committee,
             successive option grants may be made to any Participant under the
             Plan.

         F.  Additional Incentive Stock Option Requirements. The maximum
             aggregate Fair Market Value (determined at the time an Option is
             granted) of the Stock with respect to which Incentive Stock Options
             are exercisable for the first time by a Participant during any
             calendar year (under all plans of the Company, a Parent and a
             Subsidiary) shall not exceed $100,000. A Participant who disposes
             of Stock acquired upon the exercise of an Incentive Stock Option
             either (i) within two years after the date of grant of such
             Incentive Stock Option or (ii) within one year after the transfer
             of such shares to the Participant, shall notify the Company of such
             disposition and of the amount realized upon such disposition.

         G.  Deferral of Gain on a Non-qualified Stock Option. In accordance
             with the terms of the applicable non-qualified deferred
             compensation plan, if any, in which a Participant is eligible to
             participate, a Participant may elect to defer any gain realized
             upon the exercise of a Non-qualified Stock Option. The election to
             defer the gain must be made in accordance with the applicable
             non-qualified deferred compensation plan, if any.

7.       Stock Appreciation Rights.

         A.  Grant Terms. The Committee may grant a Stock Appreciation Right
             independent of an Option or in connection with an Option or a
             portion thereof. A Stock Appreciation Right granted in connection
             with an Option or a portion thereof shall cover the same shares of
             Stock covered by the Option, or a lesser number as the Committee
             may determine. A Stock Appreciation Right shall be subject to the
             same terms and conditions as an Option, and any additional
             limitations set forth in this Section 7 or the Award Agreement.

         B.  Exercise Terms. The exercise price per share of Stock of a Stock
             Appreciation Right shall be an amount determined by the Committee
             and shall not be less than 100% of Fair Market Value. A Stock
             Appreciation Right granted independent of an Option shall entitle
             the Participant upon exercise to a payment from the Company in an
             amount equal to the excess of the Fair Market Value on the exercise
             date of a share of Stock over the exercise price per share, times
             the number of Stock Appreciation Rights exercised. A Stock
             Appreciation Right granted in connection with an Option shall
             entitle the Participant to surrender an unexercised Option (or
             portion thereof) and to receive in exchange an amount equal to the
             excess of the Fair Market Value on the exercise date of a share of
             Stock over the exercise price per share for the Option, times the
             number of shares covered by the Option (or portion thereof) which
             is surrendered. Payment may be made, in the discretion of the
             Committee, in (i) Stock, (ii) cash or (iii) any combination of
             Stock and cash. Cash shall be paid for fractional shares of Stock
             upon the exercise of a Stock Appreciation Right.

                                       6
<PAGE>

         C.  Limitations. The Committee may impose such conditions upon the
             exercisability or transferability of Stock Appreciation Rights as
             it determines in its sole discretion.

8.       Other Stock-Based Awards and Cash-Based Awards.

         The Committee may, in its sole discretion, grant Awards of Stock,
restricted Stock and other Awards that are valued in whole or in part by
reference to the Fair Market Value of Stock. These Awards shall collectively be
referred to herein as Other Stock-Based Awards. The Committee may also, in its
sole discretion, grant Cash-Based Awards, which shall have a value as may be
determined by the Committee. Other Stock-Based Awards shall be in such form, and
dependent on such conditions, as the Committee shall determine, including, but
not limited to, the right to receive one or more shares of Stock (or the
cash-equivalent thereof) upon the completion of a specified period of service,
the occurrence of an event or the attainment of performance objectives. Other
Stock-Based Awards and Cash-Based Awards may be granted with or in addition to
other Awards. Subject to the other terms of the Plan, Other Stock-Based Awards
and Cash-Based Awards may be granted to such Participants in such amounts and
upon such terms, and at any time and from time to time, as shall be determined
by the Committee and set forth in an Award Agreement.

9.       Performance-Based Awards.

         To the extent applicable, the Committee may, in its sole and absolute
discretion, determine that certain Other Stock-Based Awards and/or Cash-Based
Awards should be subject to such requirements so that they are deductible by the
Company under Code Section 162(m). If the Committee so determines, such Awards
shall be considered Performance-Based Awards subject to the terms of this
Section 9, as provided in the Award Agreement. A Performance-Based Award shall
be granted by the Committee in a manner to satisfy the requirements of Code
Section 162(m) and the regulations thereunder. The performance measures to be
used for purposes of a Performance-Based Award shall be chosen by the Committee,
in its sole and absolute discretion, from among the following: earnings per
share of Stock; book value per share of Stock; net income (before or after
taxes); operating income; return on invested capital, assets or equity; cash
flow return on investments which equals net cash flows divided by owners'
equity; earnings before interest or taxes; gross revenues or revenue growth;
market share; expense management; improvements in capital structure; profit
margins; Stock price; total shareholder return; free cash flow; or working
capital. The performance measures may relate to the Company, a Parent, a
Subsidiary, or one or more units of such an entity.

         The Committee shall determine whether, with respect to a performance
period, the applicable performance goals have been met with respect to an Award
and, if they have, to so certify and ascertain the amount of the applicable
Performance-Based Award. The Committee shall have the discretion to adjust
Performance-Based Awards downward.

         For calendar years beginning after the "reliance period" defined in
Treas. Reg. Section 1.162-27(f)(2) or any successor thereto with respect to the
Company, an Award shall be a Performance-Based Award only if the Committee
consists solely of two or more Outside Directors within the meaning of Treas.
Reg. Section 1.162-27(e)(3) or any successor thereto.

                                       7
<PAGE>

10.      Nontransferability of Awards.

         Unless otherwise determined by the Committee and expressly set forth in
an Award Agreement, an Award granted under the Plan shall, by its terms, be
non-transferable otherwise than by will or the laws or descent and distribution
and an Award may be exercised, if applicable, during the lifetime of the
Participant thereof, only by the Participant or his or her guardian or legal
representative. Notwithstanding the above, the Committee may not provide in an
Award Agreement that an Incentive Stock Option is transferable.

11.      Investment Purpose.

         Each Award under the Plan shall be awarded only on the condition that
all purchases of Stock thereunder shall be for investment purposes, and not with
a view to resale or distribution, except that the Committee may make such
provision with respect to Awards granted under this Plan as it deems necessary
or advisable for the release of such condition upon the registration with the
Securities and Exchange Commission of Stock subject to the Award, or upon the
happening of any other contingency warranting the release of such condition.

If deemed advisable by the Committee, the certificates evidencing the shares
acquired by the Participant pursuant to this Plan may bear a restrictive legend,
if appropriate, indicating that the shares have not been registered under said
Act and are subject to restrictions on the transfer thereof, which legend may be
in the following form (or such other form as the Company shall determine to be
proper), to-wit:

                  "The shares represented by this certificate have not been
                  registered under the Securities Act of 1933, but have been
                  issued or transferred to the registered owner pursuant to the
                  exemption afforded by Section 4(2) of said Act. No transfer or
                  assignment of these shares by the registered owner shall be
                  valid or effective, and the issuer of these shares shall not
                  be required to give any effect to any transfer or attempted
                  transfer of these shares, including without limitation, a
                  transfer by operation of law, unless (a) the issuer shall have
                  received an opinion of its counsel that the shares may be
                  transferred without requirement of registration under said
                  Act, or (b) there shall have been delivered to the issuer a
                  `no-action' letter from the staff of the Securities and
                  Exchange Commission, or (c) the shares are registered under
                  said Act."

In addition to the restrictions described above, the Participant may not sell,
pledge, transfer, donate, assign or otherwise dispose of (collectively,
"transfer"), whether voluntarily or by operation of law, any shares of Stock
acquired pursuant to the Plan except as provided in this Section 11.

         A.  Right of First Refusal.

             i.   If the Participant intends to transfer any shares of Stock
                  pursuant to a bona fide purchase offer of an offeror who has
                  agreed to be bound by transfer and buy/sell restrictions
                  identical to those to which the Participant is subject
                  ("Offeror"), the Participant shall deliver to the Company a
                  written notice ("Notice") of such intention to transfer such
                  shares, setting forth in

                                       8
<PAGE>

                  reasonable detail: (i) the proposed price, (ii) the number of
                  shares proposed to be transferred, (iii) the other terms and
                  conditions of the proposed transfer of such shares, (iv) an
                  offer to sell the shares to the Company as provided herein and
                  (v) the identity of the Offeror. The shares proposed to be
                  transferred are hereinafter referred to as the "Offered
                  Shares."

             ii.  The Company may elect to purchase all (but not less than all)
                  of the Offered Shares at any time during the thirty (30) day
                  period following its receipt of the Notice. The Company shall
                  be entitled to purchase the Offered Shares from the
                  Participant at the same price and on the same terms and
                  conditions as those pursuant to which the Participant proposes
                  to transfer the Offered Shares, as described in the Notice. If
                  the Company fails to respond to such offer within the 30-day
                  period, it shall be deemed to have rejected the offer.

             iii. Unless the Participant and the Company otherwise agree, the
                  closing of the purchase of the Offered Shares shall take place
                  at the principal offices of the Company at 10:00 a.m. on the
                  tenth day (or if such day is not a business day on the next
                  business day) after the expiration of the 30-day period. At
                  the closing, the Participant shall tender the Offered Shares,
                  together with appropriate instruments of transfer endorsed to
                  the Company, and the Company shall tender a certified check,
                  cashier's check or a wire transfer of immediately available
                  funds in the amount of the purchase price therefore.

             iv.  If the Offered Shares are not purchased by the Company
                  pursuant to this Section 11, the Participant shall be entitled
                  to sell all of the Offered Shares to the Offeror at the price
                  and on the terms and conditions specified in the Notice,
                  provided that such sale is consummated within one-hundred
                  twenty (120) days from the date the Notice is delivered to the
                  Company. For any sale of shares after such one-hundred twenty
                  (120) day period, the Participant shall give a new notice
                  which shall reinstate the rights of the Company set forth in
                  this Section 11 to purchase the Offered Shares.

         B.  Take-Along Rights. If an offeror desires to purchase all of the
             outstanding shares of Stock and if the owners of at least 50% of
             the outstanding shares desire to make such sale, the Participant
             agrees to sell all of his or her shares to such offeror on the
             terms and conditions approved by the owners of at least 50% of the
             outstanding shares.

         C.  Effect of Prohibited Transfer. If any transfer of shares is made or
             attempted by a Participant other than in accordance with the terms
             of this Plan and the Award Agreement, the Company may refuse for
             any purpose to recognize any transferee who receives shares and any
             such transferee shall have no right to claim or retain any
             dividends on such shares which were paid or become payable
             subsequent to the date on which the prohibited transfer was made or
             attempted. In addition to

                                       9
<PAGE>

             any other legal or equitable rights that it may have, the Company
             may enforce its rights by specific performance to the extent
             permitted by law.

         D.  Buy-Back Rights. If the Participant terminates employment for any
             reason, the Participant must, upon request by the Committee, sell
             his or her shares of Stock to the Company at a price equal to the
             Fair Market Value, as defined in the Plan, of such shares of Stock
             on the date of such sale. The Company shall exercise the buy-back
             right with respect to a Participant no later than twelve (12)
             months after the date the Participant terminates employment.

         E.  Exceptions to Transfer Restrictions. Notwithstanding anything to
             the contrary in this Plan and Award Agreement, the restrictions
             upon transfer set forth in this Section 11 shall not apply to a
             transfer of shares of Stock by a Participant to any of (i) the
             Participant's heirs, executors, administrators or other personal
             representative upon death of the Participant or (ii) the
             Participant's spouse, children or grandchildren, or a trust for
             their or the Participant's benefit; provided that, the restrictions
             on transfer in this Section 11 shall continue to apply to the
             shares received by any such permitted transferee, including without
             limitation that such permitted transferee shall not again transfer
             such shares except in accordance with this Section 11.

         F.  Termination of Transfer Restrictions. The restrictions described in
             Sections 11(A) through 11(E) shall apply except as provided
             otherwise in the Award Agreement and shall terminate on the earlier
             of a Public Offering of shares of Stock or mutual agreement of the
             parties to an Award Agreement.

12.      Adjustments Upon Changes in Capitalization or Corporation Acquisitions.

         Notwithstanding any other provisions of the Plan, the Award Agreements
may contain such provisions as the Committee shall determine to be appropriate
for the adjustment of the number and class of shares subject to each outstanding
Award and the exercise prices, if applicable, in the event of changes in the
outstanding Stock by reason of stock dividends, recapitalization, mergers,
consolidations, split-ups, combinations or exchanges of shares and the like,
and, in the event of any such change in the outstanding Stock, the aggregate
number and class of shares available under the Plan and the maximum number of
shares as to which Awards may be granted to an individual shall be appropriately
adjusted by the Committee, whose determination shall be conclusive. In the event
the Company, a Parent or a Subsidiary enters into a transaction described in
Section 424(a) of the Code with any other corporation, the Committee may grant
options to employees or former employees of such corporation in substitution of
options previously granted to them upon such terms and conditions as shall be
necessary to qualify such grant as a substitution described in Section 424(a) of
the Code.

         In the event of a Change in Control, notwithstanding any other
provisions of the Plan or an Award Agreement to the contrary, the Committee may,
in its sole discretion, provide for:

                  (1) Accelerated vesting of any outstanding Awards that are
         otherwise unexercisable or unvested as of a date selected by the
         Committee;

                                       10
<PAGE>

                  (2) Issuance of substitute Awards to substantially preserve
         the terms of any Awards previously granted under the Plan.

13.      Amendment and Termination.

         The Board may at any time terminate the Plan, or make such
modifications to the Plan as it shall deem advisable; provided, however, that
the Board may not, without further approval by the holders of Stock, increase
the maximum number of shares as to which Awards may be granted under the Plan
(except under the anti-dilution provisions of Section 12), or change the class
of employees to whom Incentive Stock Options may be granted, or withdraw the
authority to administer the Plan from a committee whose members satisfy the
requirements of Section 5. No termination or amendment of the Plan may, without
the consent of the Participant to whom any Award shall theretofore have been
granted, adversely affect the rights of such Participant under such Award.

14.      Effectiveness of the Plan.

         The Plan shall become effective upon adoption by the Board subject,
however, to its further approval by the shareholders of the Company given within
twelve (12) months of the date the Plan is adopted by the Board at a regular
meeting of the shareholders or at a special meeting duly called and held for
such purpose. Grants of Awards may be made prior to such shareholder approval
but all Award grants made prior to shareholder approval shall be subject to the
obtaining of such approval and if such approval is not obtained, such Awards
shall not be effective for any purpose.

15.      Time of Granting of an Award. An Award grant under the Plan shall be
deemed to be made on the date on which the Committee, by formal action of its
members duly recorded in the records thereof, makes an Award to a Participant
(but in no event prior to the adoption of the Plan by the Board); provided that,
such Award is evidenced by a written Award Agreement duly executed on behalf of
the Company and on behalf of the Participant within a reasonable time after the
date of the Committee action.

16.      Term of Plan.

         This Plan shall terminate ten (10) years after the date on which it is
approved and adopted by the Board and no Award shall be granted hereunder after
the expiration of such ten-year period. Awards outstanding at the termination of
the Plan shall continue in accordance with their terms and shall not be affected
by such termination.

17.      No Right To Continued Employment.

         Nothing in the Plan or in any Award granted pursuant to the Plan shall
confer on any individual any right to continue in the employ of the Company or
interfere in any way with the right of the Company to terminate his or her
employment at any time.

                                       11
<PAGE>

18.      Choice of Law.

         The Plan shall be governed by and construed in accordance with the laws
of the State of Delaware without regard to conflicts of law.

                                      * * *

   The foregoing Plan was approved and adopted by the Board on April 14, 2005.

                                       12

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