Document:

Exhibit 10.95

                     SUPPLEMENTAL INDENTURE TO BE DELIVERED
                          BY GUARANTEEING SUBSIDIARIES

     Supplemental Indenture (this "Supplemental Indenture"), dated as of
November 4, 2003, among L-3 Communications Aeromet, Inc., an Oregon corporation,
AMI Instruments, Inc., an Oklahoma corporation, Apcom, Inc., a Maryland
corporation, Broadcast Sports Inc., a Delaware corporation, Celerity Systems
Incorporated, a California corporation, Electrodynamics, Inc., an Arizona
corporation, L-3 Communications Avionics Component Overhaul and Repair, Inc., a
Delaware corporation, L-3 Communications Avionics Systems, Inc., a Delaware
corporation, L-3 Communications FlightSystems Corporation, an Ohio corporation,
Henschel Inc., a Delaware corporation, Hygienetics Environmental Services, Inc.,
a Delaware corporation, Interstate Electronics Corporation, a California
corporation, KDI Precision Products, Inc., a Delaware corporation, L-3
Communications AIS GP Corporation, a Delaware corporation, L-3 Communications
Atlantic Science and Technology Corporation, a New Jersey corporation, L-3
Communications Aydin Corporation, a Delaware corporation, L-3 Communications
ESSCO, Inc., a Delaware corporation, L-3 Communications Government Services,
Inc., a Virginia corporation, L-3 Communications ILEX Systems, Inc., a Delaware
corporation, L-3 Communications IMC Corporation, a Connecticut corporation, L-3
Communications Integrated Systems L.P., a Delaware limited partnership, L-3
Communications Investments, Inc., a Delaware corporation, L-3 Communications
Klein Associates, Inc., a Delaware corporation, L-3 Communications Security and
Detection Systems Corporation Delaware, a Delaware corporation, L-3
Communications Security and Detection Systems Corporation California, a
California corporation, L-3 Communications SPD Technologies, Inc., a Delaware
corporation, L-3 Communications Storm Control Systems, Inc., a California
corporation, L-3 Communications TMA Corporation, a Virginia corporation, L-3
Communications Westwood Corporation, a Nevada corporation, MCTI Acquisition
Corporation, a Maryland Corporation, Microdyne Communications Technologies
Incorporated, a Maryland corporation, Microdyne Corporation, a Maryland
corporation, Microdyne Outsourcing Incorporated, a Maryland corporation, MPRI,
Inc., a Delaware corporation, Pac Ord Inc., a Delaware corporation, Power
Paragon, Inc., a Delaware corporation, Ship Analytics, Inc., a Connecticut
corporation, Ship Analytics International, Inc., a Delaware corporation, Ship
Analytics USA, Inc., a Connecticut corporation, Southern California Microwave,
Inc., a California corporation, SPD Electrical Systems, Inc., a Delaware
corporation, SPD Holdings, Inc., a Delaware corporation, SPD Switchgear Inc., a
Delaware corporation, SYColeman Corporation, a Florida corporation, Troll
Technology Corporation, a California corporation, Wescam Air Ops Inc., a
Delaware corporation, Wescam Air Ops LLC, a Delaware limited liability company,
Wescam Holdings (US) Inc., a Delaware corporation, Wescam Incorporated, a
Florida corporation, Wescam LLC, a Delaware limited liability company, Wescam
Sonoma Inc., a California corporation and Wolf Coach, Inc., a Massachusetts
corporation (each, a "Guaranteeing Subsidiary", and collectively, the
"Guaranteeing Subsidiaries"), each a subsidiary of L-3 Communications
Corporation (or its permitted successor), a Delaware corporation (the
"Company"), the Company and The Bank of New York, as trustee under the indenture
referred to below (the "Trustee").

                               W I T N E S S E T H

     WHEREAS, the Company has heretofore executed and delivered to the Trustee
an indenture (the "Indenture"), dated as of May 21, 2003 providing for the
issuance of an

aggregate principal amount of up to $400,000,000 of 6 1/8% Senior Subordinated
Notes due 2013 (the "Notes");

     WHEREAS, the Indenture provides that under certain circumstances the
Guaranteeing Subsidiaries shall execute and deliver to the Trustee a
supplemental indenture pursuant to which the Guaranteeing Subsidiaries shall
unconditionally guarantee all of the Company's obligations under the Notes and
the Indenture on the terms and conditions set forth herein (the "Subsidiary
Guarantee"); and

     WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is
authorized to execute and deliver this Supplemental Indenture.

     NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
Guaranteeing Subsidiaries and the Trustee mutually covenant and agree for the
equal and ratable benefit of the Holders of the Notes as follows:

     1. Capitalized Terms. Capitalized terms used herein without definition
shall have the meanings assigned to them in the Indenture.

     2. Agreement to Guarantee. Each Guaranteeing Subsidiary hereby agrees as
follows:

          (a)  Such Guaranteeing Subsidiary, jointly and severally with all
               other current and future guarantors of the Notes (collectively,
               the "Guarantors" and each, a "Guarantor"), unconditionally
               guarantees to each Holder of a Note authenticated and delivered
               by the Trustee and to the Trustee and its successors and assigns,
               regardless of the validity and enforceability of the Indenture,
               the Notes or the Obligations of the Company under the Indenture
               or the Notes, that:

               (i)  the principal of, premium, interest and Additional Amounts,
                    if any, on the Notes will be promptly paid in full when due,
                    whether at maturity, by acceleration, redemption or
                    otherwise, and interest on the overdue principal of,
                    premium, interest and Additional Amounts, if any, on the
                    Notes, to the extent lawful, and all other Obligations of
                    the Company to the Holders or the Trustee thereunder or
                    under the Indenture will be promptly paid in full, all in
                    accordance with the terms thereof; and

               (ii) in case of any extension of time for payment or renewal of
                    any Notes or any of such other Obligations, that the same
                    will be promptly paid in full when due in accordance with
                    the terms of the extension or renewal, whether at stated
                    maturity, by acceleration or otherwise.

          (b)  Notwithstanding the foregoing, in the event that this Subsidiary
               Guarantee would constitute or result in a violation of any
               applicable fraudulent conveyance or similar law of any relevant
               jurisdiction, the liability of such Guaranteeing Subsidiary under
               this Supplemental Indenture and its Subsidiary Guarantee shall be
               reduced to the maximum amount permissible under such fraudulent
               conveyance or similar law.

     3. EXECUTION AND DELIVERY OF SUBSIDIARY GUARANTEES.

          (a)  To evidence its Subsidiary Guarantee set forth in this
               Supplemental Indenture, such Guaranteeing Subsidiary hereby
               agrees that a notation of such Subsidiary Guarantee substantially
               in the form of Exhibit F to the Indenture shall be endorsed by an
               officer of such Guaranteeing Subsidiary on each Note
               authenticated and delivered by the Trustee after the date hereof.

          (b)  Notwithstanding the foregoing, such Guaranteeing Subsidiary
               hereby agrees that its Subsidiary Guarantee set forth herein
               shall remain in full force and effect notwithstanding any failure
               to endorse on each Note a notation of such Subsidiary Guarantee.

          (c)  If an Officer whose signature is on this Supplemental Indenture
               or on the Subsidiary Guarantee no longer holds that office at the
               time the Trustee authenticates the Note on which a Subsidiary
               Guarantee is endorsed, the Subsidiary Guarantee shall be valid
               nevertheless.

          (d)  The delivery of any Note by the Trustee, after the authentication
               thereof under the Indenture, shall constitute due delivery of the

               Subsidiary Guarantee set forth in this Supplemental Indenture on
               behalf of each Guaranteeing Subsidiary.

          (e)  Each Guaranteeing Subsidiary hereby agrees that its obligations
               hereunder shall be unconditional, regardless of the validity,
               regularity or enforceability of the Notes or the Indenture, the
               absence of any action to enforce the same, any waiver or consent
               by any Holder of the Notes with respect to any provisions hereof
               or thereof, the recovery of any judgment against the Company, any
               action to enforce the same or any other circumstance which might
               otherwise constitute a legal or equitable discharge or defense of
               a guarantor.

          (f)  Each Guaranteeing Subsidiary hereby waives diligence,
               presentment, demand of payment, filing of claims with a court in
               the event of insolvency or bankruptcy of the Company, any right
               to require a proceeding first against the Company, protest,
               notice and all demands whatsoever and covenants that its
               Subsidiary Guarantee made pursuant to this Supplemental Indenture
               will not be discharged except by complete performance of the
               Obligations contained in the Notes and the Indenture.

          (g)  If any Holder or the Trustee is required by any court or
               otherwise to return to the Company or any Guaranteeing
               Subsidiary, or any custodian, Trustee, liquidator or other
               similar official acting in relation to either the Company or such
               Guaranteeing Subsidiary, any amount paid by either to the Trustee
               or such Holder, the Subsidiary Guarantee made pursuant to this
               Supplemental Indenture, to the extent theretofore discharged,
               shall be reinstated in full force and effect.

          (h)  Each Guaranteeing Subsidiary agrees that it shall not be entitled
               to any right of subrogation in relation to the Holders in respect
               of any Obligations guaranteed hereby until payment in full of all
               Obligations guaranteed hereby. Each Guaranteeing Subsidiary
               further agrees that, as between such Guaranteeing Subsidiary, on
               the one hand, and the Holders and the Trustee, on the other hand:

               (i)  the maturity of the Obligations guaranteed hereby may be
                    accelerated as provided in Article 6 of the Indenture for
                    the purposes of the Subsidiary Guarantee made pursuant to
                    this Supplemental Indenture, notwithstanding any stay,
                    injunction or other prohibition preventing such acceleration
                    in respect of the obligations guaranteed hereby; and

               (ii) in the event of any declaration of acceleration of such
                    obligations as provided in Article 6 of the Indenture, such

                    obligations (whether or not due and payable) shall forthwith
                    become due and payable by such Guaranteeing Subsidiary for
                    the purpose of the Subsidiary Guarantee made pursuant to
                    this Supplemental Indenture.

          (i)  Each Guaranteeing Subsidiary shall have the right to seek
               contribution from any other non-paying Guaranteeing Subsidiary so
               long as the exercise of such right does not impair the rights of
               the Holders or the Trustee under the Subsidiary Guarantee made
               pursuant to this Supplemental Indenture.

     4. GUARANTEEING SUBSIDIARY MAY CONSOLIDATE, ETC. ON CERTAIN TERMS.

          (a)  Except as set forth in Articles 4 and 5 of the Indenture, nothing
               contained in the Indenture, this Supplemental Indenture or in the
               Notes shall prevent any consolidation or merger of any
               Guaranteeing Subsidiary with or into the Company or any other
               Guarantor or shall prevent any transfer, sale or conveyance of
               the property of any Guaranteeing Subsidiary as an entirety or
               substantially as an entirety, to the Company or any other
               Guarantor.

          (b)  Except as set forth in Article 4 and 5 of the Indenture, nothing
               contained in the Indenture, this Supplemental Indenture or in the
               Notes shall prevent any consolidation or merger of any
               Guaranteeing Subsidiary with or into a corporation or
               corporations other than the Company or any other Guarantor (in
               each case, whether or not affiliated with the Guaranteeing
               Subsidiary), or successive consolidations or mergers in which a
               Guaranteeing Subsidiary or its successor or successors shall be a
               party or parties, or shall prevent any sale or conveyance of the
               property of any Guaranteeing Subsidiary as an entirety or
               substantially as an entirety, to a corporation other than the
               Company or any other Guarantor (in each case, whether or not
               affiliated with the Guaranteeing Subsidiary) authorized to
               acquire and operate the same; provided, however, that each
               Guaranteeing Subsidiary hereby covenants and agrees that (i)
               subject to the Indenture, upon any such consolidation, merger,
               sale or conveyance, the due and punctual performance and
               observance of all of the covenants and conditions of the
               Indenture and this Supplemental Indenture to be performed by such
               Guaranteeing Subsidiaries, shall be expressly assumed (in the
               event that such Guaranteeing Subsidiary is not the surviving
               corporation in the merger), by supplemental indenture
               satisfactory in form to the Trustee, executed and delivered to
               the Trustee, by the corporation formed by such consolidation, or
               into

               which such Guaranteeing Subsidiary shall have been merged, or by
               the corporation which shall have acquired such property and (ii)
               immediately after giving effect to such consolidation, merger,
               sale or conveyance no Default or Event of Default exists.

          (c)  In case of any such consolidation, merger, sale or conveyance and
               upon the assumption by the successor corporation, by supplemental
               indenture, executed and delivered to the Trustee and satisfactory
               in form to the Trustee, of the Subsidiary Guarantee made pursuant
               to this Supplemental Indenture and the due and punctual
               performance of all of the covenants and conditions of the
               Indenture and this Supplemental Indenture to be performed by such
               Guaranteeing Subsidiary, such successor corporation shall succeed
               to and be substituted for such Guaranteeing Subsidiary with the
               same effect as if it had been named herein as the Guaranteeing
               Subsidiary. Such successor corporation thereupon may cause to be
               signed any or all of the Subsidiary Guarantees to be endorsed
               upon the Notes issuable under the Indenture which theretofore
               shall not have been signed by the Company and delivered to the
               Trustee. All the Subsidiary Guarantees so issued shall in all
               respects have the same legal rank and benefit under the Indenture
               and this Supplemental Indenture as the Subsidiary Guarantees
               theretofore and thereafter issued in accordance with the terms of
               the Indenture and this Supplemental Indenture as though all of
               such Subsidiary Guarantees had been issued at the date of the
               execution hereof.

     5. RELEASES.

          (a)  Concurrently with any sale of assets (including, if applicable,
               all of the Capital Stock of a Guaranteeing Subsidiary), all
               Liens, if any, in favor of the Trustee in the assets sold thereby
               shall be released; provided that in the event of an Asset Sale,
               the Net Proceeds from such sale or other disposition are treated
               in accordance with the provisions of Section 4.10 of the
               Indenture. If the assets sold in such sale or other disposition
               include all or substantially all of the assets of a Guaranteeing
               Subsidiary or all of the Capital Stock of a Guaranteeing
               Subsidiary, then the Guaranteeing Subsidiary (in the event of a
               sale or other disposition of all of the Capital Stock of such
               Guaranteeing Subsidiary) or the Person acquiring the property (in
               the event of a sale or other disposition of all or substantially
               all of the assets of such Guaranteeing Subsidiary) shall be
               released from and relieved of its Obligations under this
               Supplemental Indenture and its Subsidiary Guarantee made pursuant
               hereto; provided that in the event of an Asset Sale, the Net
               Proceeds from such sale or other disposition are treated in
               accordance with the

               provisions of Section 4.10 of the Indenture. Upon delivery by the
               Company to the Trustee of an Officers' Certificate to the effect
               that such sale or other disposition was made by the Company or
               the Guaranteeing Subsidiary, as the case may be, in accordance
               with the provisions of the Indenture and this Supplemental
               Indenture, including without limitation, Section 4.10 of the
               Indenture, the Trustee shall execute any documents reasonably
               required in order to evidence the release of the Guaranteeing
               Subsidiary from its Obligations under this Supplemental Indenture
               and its Subsidiary Guarantee made pursuant hereto. If the
               Guaranteeing Subsidiary is not released from its obligations
               under its Subsidiary Guarantee, it shall remain liable for the
               full amount of principal of and interest on the Notes and for the
               other obligations of such Guaranteeing Subsidiary under the
               Indenture as provided in this Supplemental Indenture.

          (b)  Upon the designation of a Guaranteeing Subsidiary as an
               Unrestricted Subsidiary in accordance with the terms of the
               Indenture, such Guaranteeing Subsidiary shall be released and
               relieved of its obligations under its Subsidiary Guarantee and
               this Supplemental Indenture. Upon delivery by the Company to the
               Trustee of an Officers' Certificate and an Opinion of Counsel to
               the effect that such designation of such Guaranteeing Subsidiary
               as an Unrestricted Subsidiary was made by the Company in
               accordance with the provisions of the Indenture, including
               without limitation Section 4.07 of the Indenture, the Trustee
               shall execute any documents reasonably required in order to
               evidence the release of such Guaranteeing Subsidiary from its
               obligations under its Subsidiary Guarantee. Any Guaranteeing
               Subsidiary not released from its Obligations under its Subsidiary
               Guarantee shall remain liable for the full amount of principal of
               and interest on the Notes and for the other Obligations of any
               Guaranteeing Subsidiary under the Indenture as provided herein.

          (c)  Each Guaranteeing Subsidiary shall be released and relieved of
               its obligations under this Supplemental Indenture in accordance
               with, and subject to, Section 4.18 of the Indenture.

     6. No Recourse Against Others. No past, present or future director,
officer, employee, incorporator, stockholder or agent of any Guaranteeing
Subsidiary, as such, shall have any liability for any obligations of the Company
or any Guaranteeing Subsidiary under the Notes, any Subsidiary Guarantees, the
Indenture or this Supplemental Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation. Each Holder of the
Notes by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes. Such waiver may
not be effective to waive

liabilities under the federal securities laws and it is the view of the SEC that
such a waiver is against public policy.

     7. SUBORDINATION OF SUBSIDIARY GUARANTEES; ANTI-LAYERING. No Guaranteeing
Subsidiary shall incur, create, issue, assume, guarantee or otherwise become
liable for any Indebtedness that is subordinate or junior in right of payment to
any Senior Debt of a Guaranteeing Subsidiary and senior in any respect in right
of payment to any of the Subsidiary Guarantees. Notwithstanding the foregoing
sentence, the Subsidiary Guarantee of each Guaranteeing Subsidiary shall be
subordinated to the prior payment in full of all Senior Debt of that
Guaranteeing Subsidiary (in the same manner and to the same extent that the
Notes are subordinated to Senior Debt), which shall include all guarantees of
Senior Debt.

     8. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     9. Counterparts. The parties may sign any number of copies of this
Supplemental Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement.

     10. Effect of Headings. The Section headings herein are for convenience
only and shall not affect the construction hereof.

     11. The Trustee. The Trustee shall not be responsible in any manner
whatsoever for or in respect of the validity or sufficiency of this Supplemental
Indenture or for or in respect of the recitals contained herein, all of which
recitals are made solely by the Guaranteeing Subsidiaries and the Company.

                  IN WITNESS WHEREOF, the parties hereto have caused this
Supplemental Indenture to be duly executed and attested, all as of the date
first above written.

Dated: November 4, 2003             L-3 COMMUNICATIONS CORPORATION

                                    By: ______________________________________
                                        Name:
                                        Title:

Dated: November 4, 2003           L-3 COMMUNICATIONS AEROMET, INC.
                                  AMI INSTRUMENTS, INC.
                                  APCOM, INC.
                                  BROADCAST SPORTS INC.
                                  CELERITY SYSTEMS INCORPORATED
                                  ELECTRODYNAMICS, INC.
                                  L-3 COMMUNICATIONS AVIONICS COMPONENT
                                      OVERHAUL AND REPAIR, INC.
                                  L-3 COMMUNICATIONS AVIONICS SYSTEMS, INC.
                                  L-3 COMMUNICATIONS FLIGHTSYSTEMS CORPORATION
                                  HENSCHEL INC.
                                  HYGIENETICS ENVIRONMENTAL SERVICES, INC.
                                  INTERSTATE ELECTRONICS CORPORATION
                                  KDI PRECISION PRODUCTS, INC.
                                  L-3 COMMUNICATIONS AIS GP CORPORATION
                                  L-3 COMMUNICATIONS ATLANTIC SCIENCE AND
                                      TECHNOLOGY CORPORATION
                                  L-3 COMMUNICATIONS AYDIN CORPORATION
                                  L-3 COMMUNICATIONS ESSCO, INC.
                                  L-3 COMMUNICATIONS GOVERNMENT SERVICES, INC.
                                  L-3 COMMUNICATIONS ILEX SYSTEMS, INC.
                                  L-3 COMMUNICATIONS IMC CORPORATION
                                  L-3 COMMUNICATIONS INTEGRATED
                                      SYSTEMS L.P.
                                  L-3 COMMUNICATIONS INVESTMENTS, INC.
                                  L-3 COMMUNICATIONS KLEIN ASSOCIATES, INC.
                                  L-3 COMMUNICATIONS SECURITY AND
                                      DETECTION SYSTEMS CORPORATION
                                      DELAWARE
                                  L-3 COMMUNICATIONS SECURITY AND
                                      DETECTION SYSTEMS CORPORATION
                                      CALIFORNIA
                                  L-3 COMMUNICATIONS SPD TECHNOLOGIES, INC.
                                  L-3 COMMUNICATIONS STORM CONTROL
                                      SYSTEMS, INC.
                                  L-3 COMMUNICATIONS TMA CORPORATION
                                  L-3 COMMUNICATIONS WESTWOOD CORPORATION
                                  MCTI ACQUISITION CORPORATION
                                  MICRODYNE COMMUNICATIONS TECHNOLOGIES
                                      INCORPORATED
                                  MICRODYNE CORPORATION
                                  MICRODYNE OUTSOURCING INCORPORATED
                                  MPRI, INC.
                                  PAC ORD INC.

                                  POWER PARAGON, INC.
                                  SHIP ANALYTICS, INC.
                                  SHIP ANALYTICS INTERNATIONAL, INC.
                                  SHIP ANALYTICS USA, INC.
                                  SOUTHERN CALIFORNIA MICROWAVE, INC.
                                  SPD ELECTRICAL SYSTEMS, INC.
                                  SPD HOLDINGS, INC.
                                  SPD SWITCHGEAR INC.
                                  SYCOLEMAN CORPORATION
                                  TROLL TECHNOLOGY CORPORATION
                                  WESCAM AIR OPS INC.
                                  WESCAM AIR OPS LLC
                                  WESCAM INCORPORATED
                                  WESCAM LLC
                                  WESCAM SONOMA INC.
                                  WESCAM HOLDINGS (US) INC.
                                  WOLF COACH, INC.
                                           As Guaranteeing Subsidiaries

                                  By: ________________________________
                                      Name:
                                      Title:

Dated:  November 4, 2003                    THE BANK OF NEW YORK,
                                            as Trustee

                                            By: ________________________________
                                                Name:
                                                Title:exv10wa1

 

Exhibit 10a1

FORTUNE BRANDS, INC.

2002 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

(revised as of April 29, 2003)

1. Purpose of Plan

     The purpose of this 2002 Non-Employee Director Stock Option Plan (the
“Plan”) is to enable Fortune Brands, Inc. (“Fortune”) to attract and retain
Eligible Directors (as defined below) of outstanding ability by making it
possible to offer them the opportunity to acquire shares of common stock of
Fortune and thereby further align their interests with those of other
stockholders of Fortune.

2. Definitions

     As used in the Plan, the following words shall have the following
meanings:

     (a)  “Board of Directors” means the Board of Directors of Fortune;

     (b)  “Committee” means the Nominating and Corporate Governance Committee of
the Board of Directors;

     (c)  “Common Stock” means common stock of Fortune;

     (d)  “Eligible Director” means:

		
	 	     (i) Any current or future director of Fortune who is not a full-time
employee of Fortune or a Subsidiary who became a member of the Board of
Directors on or after April 30, 1997; or
	 
	 	     (ii) Any current director of Fortune who is not a full-time employee
of Fortune or a Subsidiary, who became a director prior to April 30, 1997
and who irrevocably elected to cease to accrue benefits under Fortune’s
retirement benefit plan for non-employee directors for so long as the
Company maintains the Non-Employee Director Stock Option Plan adopted on
April 30, 1997, this Plan, or a successor plan hereto; or
	 
	 	     (iii) Any current or future director of Fortune who ceases to serve
as an employee of Fortune or a Subsidiary and to whom the Committee
determines in its sole discretion to grant options.

     (e)  “Exchange Act” means the Securities Exchange Act of 1934, as amended;

     (f)  “Limited Right” means a right to receive cash in lieu of the exercise
of an Option as set forth in Section 7(b);

     (g)  “Option” means a stock option to purchase shares of Common Stock which
is intended not to qualify as an incentive stock option as defined in Section
422 of the Internal Revenue Code;

     (h)  “Option Agreement” means an agreement between Fortune and a
Participant that sets forth the terms, conditions and limitations applicable to
an Option;

     (i)  “Participant” means a person to whom one or more Options have been
granted that have not all been forfeited or terminated under the Plan;

 

 

     (j)  “Retirement” means retirement from service as a member of the Board of
Directors by an Eligible Director after five or more years of service as an
Eligible Director; and

     (k)  “Subsidiary” means any corporation other than Fortune in an unbroken
chain of corporations beginning with Fortune if each of the corporations other
than the last corporation in the unbroken chain owns 50% or more of the voting
stock in one of the other corporation in such chain.

3. Administration of Plan

     The Plan shall be administered by the Committee whose members shall be
appointed by the Board of Directors and consisting of at least two members of
the Board of Directors. Members of the Committee shall qualify to administer
the plan for purposes of Rule 16b-3 (and any other applicable rule) promulgated
under Section 16(b) of the Exchange Act. The Committee may adopt its own rules
of procedure, and the action of a majority of the Committee, taken at a
meeting, or taken without a meeting by unanimous written consent of the members
of the Committee, shall constitute action by the Committee. The Committee
shall have the power and authority to administer, construe and interpret the
Plan, to make rules for carrying it out and to make changes in such rules.

4. Granting of Options

     Subject to all the terms and conditions of the Plan, each Eligible
Director shall, for each of the years 2002 through 2006 be granted an Option
covering 2,500 shares of Common Stock per year for services as a non-employee
Fortune director during such year, such grant to be made on the date of the
Annual Meeting of stockholders of Fortune during such year. To be entitled to
receive such Option with respect to any year, an Eligible Director must be
serving as a director of Fortune immediately following such Annual Meeting;
provided, however, that the Committee in its discretion may award interim or
partial grants to Eligible Directors to reflect partial years of service by
Eligible Directors who are elected or appointed to the Board of Directors after
the most recent Annual Meeting. Options under the Plan may be in such form and
contain such terms, conditions and limitations as the Committee may determine.
The terms, conditions and limitations of each Option under the Plan shall be
set forth in an Option Agreement, in a form approved by the Committee,
consistent, however, with the terms of the Plan.

5. Grant of Options

     (a)  The terms and conditions with respect to each Option granted under the
Plan shall be consistent with the following:

		
	 	     (i) The Option price per share shall not be less than fair market
value at the time the Option is granted.
	 
	 	     (ii) Exercise of the Option shall be conditioned upon the
Participant named therein having remained as an Eligible Director of
Fortune for at least eleven months after the date of the grant of the
Option; provided, however, that this condition shall not be applicable in
the event of the death of the Participant or as otherwise provided in
Section 7(b). The Option shall be exercisable in whole or in part from
time to time during the period beginning at the completion of the
required time stated in the Option Agreement and ending at the expiration
of ten years from the date of grant of the Option, unless an earlier
expiration date shall be stated in the Option or the Option shall cease
to be exercisable pursuant to Section 5(a)(iv) or because of the exercise
of the Limited Right pertaining thereto as provided in Section 7(b).
	 
	 	     (iii) Payment in full of the Option price shall be made upon
exercise of each Option and may be made in cash, by the delivery of
shares of Common Stock with a fair market value

2

 

		
	 	equal to the Option
price, provided the Participant has held such shares for a period of at
least one year, or by a combination of cash and such shares that have
been held by the Participant for a period of at least one year whose fair
market value together with such cash shall equal the Option price. The
Committee may also permit Participants, either on a selective or
aggregate basis, simultaneously to exercise Options and sell the shares
of Common Stock thereby acquired pursuant to a brokerage or similar
arrangement, approved in advance by the Committee, and use the proceeds
from such sale as payment of the purchase price of such shares.
	 
	 	     (iv) If a Participant’s status as an Eligible Director ceases other
than by reason of the Participant’s death, disability or Retirement, the
Participant’s Option shall terminate and cease to be exercisable 30 days
after such cessation of service except as otherwise provided in Section
7(b). If a Participant’s status as an Eligible Director terminates by
reason of death, disability or Retirement, the Participant’s Option shall
continue to be exercisable until the expiration date stated in the Option
Agreement, provided that an Option may be exercised within one year from
the date of death even if later than such expiration date.
	 
	 	     (v) Each Option shall contain a Limited Right to receive cash in
lieu of shares under the circumstances set forth in Section 7(b).

     (b)  The holder of an Option who decides to exercise the Option in whole or
in part shall give notice to the Secretary of Fortune of such exercise in
writing on a form approved by the Committee. Any exercise shall be effective
as of the date specified in the notice of exercise, but not earlier than the
date the notice of exercise, together with payment in full of the Option price,
is actually received and in the hands of the Secretary of Fortune.

6. Limitations and Conditions

     (a)  The total number of shares of Common Stock that may be made subject to
Options under the Plan is 200,000 shares. Such total number of shares may
consist, in whole or in part, of unissued shares or reacquired shares. The
foregoing number of shares may be increased or decreased by the events set
forth in Section 7(a). In the event that Fortune or a Subsidiary makes an
acquisition or is party to a merger or consolidation and Fortune assumes the
options or other awards consistent with the purpose of this Plan of the company
acquired, merged or consolidated which are administered pursuant to this Plan,
shares of Common Stock subject to the assumed options or other awards shall not
count as part of the total number of shares of Common Stock that may be made
subject to Options under this Plan.

     (b)  Any shares that have been made subject to an Option that cease to be
subject to the Option (other than by reason of exercise or payment of the
Option) shall again be available for grant and shall not be considered as
having been theretofore made subject to option.

     (c)  No Option shall be granted under the Plan after December 31, 2006, but
the terms of Options granted on or before the expiration thereof may extend
beyond such expiration. At the time an Option is granted or amended or the
terms or conditions of an Option are changed, the Committee may provide for
limitations or conditions on such Option.

     (d)  No Option or portion thereof shall be transferable by the Participant
otherwise than by will or by the laws of descent and distribution, except that
an Option may be transferred by gift to any member of the Participant’s
immediate family or to a trust for the benefit of such immediate family
members, if permitted in the applicable Option Agreement. During the lifetime
of the Participant, an Option shall be exercisable only by the Participant
unless it has been transferred to a member of the Participant’s immediate
family or to a trust for the benefit of such immediate family members, in which

3

 

case it shall be exercisable only by such transferee. For the purpose of this
provision, a Participant’s “immediate family” shall mean the Participant’s
spouse, children and grandchildren.

     (e)  No person who receives an Option under the Plan shall have any rights
of a stockholder as to shares under option until, after proper exercise of the
Option, such shares have been recorded on Fortune’s official stockholder
records as having been issued or transferred.

     (f)  Fortune shall not be obligated to deliver any shares until they have
been listed (or authorized for listing upon official notice of issuance) upon
each stock exchange upon which outstanding shares of such class at the time are
listed nor until there has been compliance with such laws or regulations as
Fortune may deem applicable. Fortune shall use its best efforts to effect such
listing and compliance. No fractional shares shall be delivered.

     (g)  Nothing herein shall be deemed to create the right in any Eligible
Director to remain a member of the Board of Directors, to be nominated for
reelection or to be reelected as such or, after claiming to be such a member,
to receive any Options under the Plan to which he or she is not already
entitled with respect to any year.

7. Stock Adjustments, Change in Control and Divestitures

     (a)  In the event of any merger, consolidation, stock or other non-cash
dividend, extraordinary cash dividend, split-up, spin-off, combination or
exchange of shares, reorganization or recapitalization or change in
capitalization, or any other similar corporate event, the Committee may make
such adjustments in (i) the aggregate number of shares subject to the Plan and
(ii) the number and kind of shares that are subject to any Option (including
any Option outstanding after cessation of director status) and the Option price
per share without any change in the aggregate Option price to be paid therefor
upon exercise of the Option. The determination by the Committee as to the
terms of any of the foregoing adjustments shall be conclusive and binding.

     (b)  (i) In the event of a Change in Control (as defined in Section
7(b)(iii)), then each Option held by a Participant that is not then exercisable
shall become immediately exercisable and shall remain exercisable as provided
in Section 5 notwithstanding anything to the contrary in the first sentence of
Section 5(a)(ii). In addition, unless the Committee otherwise determines at
the time of grant or at any time thereafter but prior to such Change in
Control, each Limited Right outstanding at the time of such Change in Control
shall be deemed to be automatically exercised as of the date of such Change in
Control or as of such other date during the 60-day period beginning on the date
of such Change in Control as the Committee may determine prior to such Change
in Control. In the event that the Limited Right is not automatically
exercised, the Participant may during the 60-day period beginning on the date
of the Change in Control (the “Limited Right Exercise Period”), in lieu of
exercising such Option in whole or in part, exercise the Limited Right (or part
thereof) pertaining to such Option. Such Participant, whether the exercise is
pursuant to his election or automatic pursuant to the terms hereof, shall be
entitled to receive in cash an amount determined by multiplying the number of
shares subject to such Option (or part thereof) by the amount by which the
exercise price of each share is exceeded by the greater of (x) the highest
purchase price per share paid for the shares of Fortune beneficially acquired
in the transaction or series of transactions resulting in the Change in Control
by the person or persons deemed to have acquired control pursuant to the Change
in Control and (y) the highest fair market value of shares of Common Stock
during the Limited Right Exercise Period prior to the time of exercise. A
Limited Right shall be exercised in whole or in part by giving written notice
of such exercise on a form approved by the Committee to the Secretary of
Fortune, except that no written notice shall be required in the event such
Limited Right is automatically exercised pursuant to the terms hereof. The
exercise shall be effective as of the date specified in the notice of exercise,
but not earlier than the date the notice of exercise is actually

4

 

received and
in the hands of the Secretary of Fortune. In the event the last day of a
Limited Right Exercise Period shall fall on a day that is not a business day,
then the last day thereof shall be deemed to be the next following business
day. To the extent an Option is exercised in whole or in part, the Limited
Right in respect of such Option shall terminate and cease to be exercisable.
To the extent a Limited Right is exercised in whole or in part, the Option (or
part thereof) to which such Limited Right pertains shall terminate and cease to
be exercisable.

     (ii)  Notwithstanding anything to the contrary in the first sentence of
Section 5(a)(ii) or in 5(a)(iv), the provisions of this Section 7(b)(ii) will
be applicable in the event of a termination of a Participant’s status of a
member of the Board of Directors on or after a Change in Control and prior to
the expiration of the Limited Right Exercise Period applicable thereto. No
Option or Limited Right held by a Participant shall terminate or cease to be
exercisable as a result of his termination as a member of the Board of
Directors on or after a Change of Control and prior to the expiration of the
Limited Right Exercise Period applicable thereto, but shall be exercisable
throughout the Limited Right Exercise Period applicable thereto; provided,
however, that in no event shall any Option be exercisable after ten years from
its date of grant (except in the event of death as provided in Section
5(a)(iv)).

     (iii)  A “Change in Control” shall be deemed to have occurred if (A) any
person (as that term is used in Sections 13(d) and 14(d) of the Exchange Act,
as in effect on January 30, 2001) is or becomes the beneficial owner (as that
term is used in Section 13(d) of the Exchange Act, and the rules and
regulations promulgated thereunder, as in effect on January 30, 2001) of 20% or
more of the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors (“Voting Securities”)
of Fortune, excluding, however, the following: (1) any acquisition directly
from Fortune, other than an acquisition by virtue of the exercise of a
conversion privilege unless the security being so converted was itself acquired
directly from Fortune, (2) any acquisition by Fortune, (3) any acquisition by
an employee benefit plan (or related trust) sponsored or maintained by Fortune
or entity controlled by Fortune, or (4) any acquisition pursuant to a
transaction that complies with clauses (1), (2) and (3) of Section
12(b)(iii)(C), (B) more than 50% of the members of the Board of Directors of
Fortune shall not be Continuing Directors (which term, as used herein, means
the directors of Fortune (1) who were members of the Board of Directors of
Fortune on January 30, 2001 or (2) who subsequently became directors of Fortune
and who were elected or designated to be candidates for election as nominees of
the Board of Directors, or whose election or nomination for election by
Fortune’s stockholders was otherwise approved, by a vote of a majority of the
Continuing Directors then on the Board of Directors but shall not include, in
any event, any individual whose initial assumption of office occurs as a result
of either an actual or threatened election contest (as such terms are used in
Rule 14(a)-11 of Regulation 14A promulgated under the Exchange Act) or other
actual or threatened solicitation of proxies or consents by or on behalf of a
person other than the Board of Directors), (C) Fortune shall be merged or
consolidated with, or, in any transaction or series of transactions,
substantially all of the business or assets of Fortune shall be sold or
otherwise acquired by, another corporation or entity unless, as a result
thereof, (1) the stockholders of Fortune immediately prior thereto shall
beneficially own, directly or indirectly, at least 60% of the combined Voting
Securities of the surviving, resulting or transferee corporation or entity
(including, without limitation, a corporation that as a result of such
transaction owns Fortune or all or substantially all of Fortune’s assets either
directly or through one or more subsidiaries) (“Newco”) immediately thereafter
in substantially the same proportions as their ownership immediately prior to
such corporate transaction, (2) no person beneficially owns (as such terms are
used in Sections 13(d) and 14(d) of the Exchange Act, and the rules and
regulations promulgated thereunder, as in effect on January 30, 2001), directly
or indirectly, 20% or more, of the combined Voting Securities of Newco
immediately after such corporate transaction except to the extent that such
ownership of Fortune existed prior to such corporate transaction and (3) more
than 50% of the members of the Board of Directors of Newco shall be Continuing
Directors or (D) the stockholders of Fortune approve a complete liquidation or
dissolution of Fortune.

5

 

8. Amendment and Termination

     (a)  The Board of Directors shall have the power to amend the Plan. It
shall not, however, except as otherwise provided in the Plan, increase the
maximum number of shares authorized for the Plan, nor change the class of
eligible recipients to other than Eligible Directors, nor reduce the basis upon
which the minimum Option price is determined, nor extend the period within
which Options under the Plan may be granted, nor provide for an Option that is
exercisable more than ten years from the date it is granted except in the event
of death. It shall have no power to change the terms of any Option theretofore
granted under the Plan so as to impair the rights of a Participant without the
consent of the Participant whose rights would be affected by such change except
to the extent, if any, provided in the Plan or in the Option.

     (b)  The Board of Directors may suspend or terminate the Plan at any time.
No such suspension or termination shall affect Options or Limited Rights then
in effect.

9. Foreign Options

     (a)  The Committee may grant Options to Eligible Directors who are subject
to the tax laws of nations other than the United States, which Options may have
terms and conditions that differ from the terms thereof as provided elsewhere
in the Plan for the purpose of complying with foreign tax laws.

     (b)  The terms and conditions of Options granted under Section 9(a) may
differ from the terms and conditions which the Plan would require to be imposed
upon Options if the Committee determines that the grants are desirable to
promote the purposes of the Plan for the Eligible Directors identified in
Section 9(a); provided that the Committee may not grant such Options that do
not comply with the limitations of Section 8(a).

10. Withholding Taxes

     Fortune shall have the right to deduct from any cash payment made under
the Plan any federal, state or local income or other taxes required by law to
be withheld with respect to such payment. It shall be a condition to the
obligation of Fortune to deliver shares upon the exercise of an Option, that
the Participant pay to Fortune such amount as may be requested by Fortune for
the purpose of satisfying any liability for such withholding taxes. Any Option
Agreement may provide that the Participant may elect, in accordance with any
conditions set forth in such Option Agreement, to pay any withholding taxes in
shares of Common Stock.

11. Effective Date

     The Plan shall be subject to its approval by the stockholders of Fortune.
If approved by the stockholders, the Plan will become effective on January 1,
2002.

6

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