Document:

<PAGE>
                                                                    EXHIBIT 10.2
                                                                [Execution copy]

                       SERIES C INCREMENTAL LOAN AGREEMENT

                  SERIES C INCREMENTAL LOAN AGREEMENT dated as of January 8,
2002 between LAMAR ADVERTISING COMPANY ("Holdings"), LAMAR MEDIA CORP. (the
"Borrower"), the SUBSIDIARY GUARANTORS party hereto, the SERIES C LENDERS party
hereto (including each Series C Lender, each as defined below, that becomes a
party hereto pursuant to a Lender Addendum as defined below) and JPMORGAN CHASE
BANK, as Administrative Agent.

                  The Borrower, the Subsidiary Guarantors party thereto, the
lenders party thereto and JPMorgan Chase Bank, as Administrative Agent, are
parties to a Credit Agreement dated as of August 13, 1999 (as heretofore amended
the "Credit Agreement") providing for extensions of credit (by means of loans
and letters of credit) in an aggregate principal amount up to but not exceeding
$1,000,000,000 (which, in the circumstances contemplated by Section 2.01(d)
thereof, may be increased to $1,750,000,000).

                  Section 2.01(d) of the Credit Agreement contemplates that at
any time and from time to time, the Borrower may request that the Lenders (as
defined therein) offer to enter into commitments to make Incremental Loans under
and as defined in said Section 2.01(d), which Incremental Loans may be made in
one or more separate "series" of term loans but which in the aggregate may not
exceed $750,000,000. Series A-1 Loans in an aggregate amount of $20,000,000,
Series A-2 Loans in an aggregate amount of $130,000,000 and Series B-1 Loans in
an aggregate amount of $100,000,000 have been previously established. The
Borrower has now requested that $200,000,000 of Incremental Loans under said
Section 2.01(d) be made available to it in a single series of term loans (the
"Series C Loans"). The Series C Lenders (as defined below) are willing to make
such loans on the terms and conditions set forth below and in accordance with
the applicable provisions of the Credit Agreement and, accordingly, the parties
hereto hereby agree as follows:

                                    ARTICLE I

                                  DEFINED TERMS

                  Terms defined in the Credit Agreement are used herein as
defined therein. In addition, the following terms have the meanings specified
below:

                  "Lender Addendum" means, with respect to any Series C Lender,
         a Lender Addendum substantially in form of Annex 1 hereto, dated as of
         the date hereof and executed and delivered by such Series C Lender as
         provided in Section 2.05.

<PAGE>
                                       2

                  "Series C Commitment" means, with respect to each Series C
         Lender, the commitment of such Series C Lender to make Series C Loans
         hereunder. The amount of each Series C Lender's Series C Commitment is
         set forth in the Lender Addendum executed and delivered by such Series
         C Lender. The aggregate original amount of the Series C Commitments is
         $200,000,000.

                  "Series C Effective Date" means the date on which the
         conditions specified in Article IV are satisfied (or waived by the
         Required Series C Lenders).

                  "Series C Lender" means (a) on the date hereof, a Lender that
         has executed and delivered a Lender Addendum that sets forth a Series C
         Commitment for such Lender and (b) thereafter, the Lenders from time to
         time holding Series C Commitments or Series C Loans after giving effect
         to any assignments thereof pursuant to Section 10.04 of the Credit
         Agreement.

                  "Tranche C Maturity Date" means February 1, 2007.

                                   ARTICLE II

                                 SERIES C LOANS

                  Section 2.01. Commitments. Subject to the terms and conditions
set forth herein and in the Credit Agreement, each Series C Lender agrees to
make Series C Loans to the Borrower on the Series C Effective Date in an
aggregate principal amount equal to such Series C Lender's Series C Commitment.
Proceeds of the Series C Loans shall be available for any use permitted under
Section 6.09 of the Credit Agreement.

                  Section 2.02. Termination of Commitments. Unless previously
terminated, the Series C Commitments shall terminate on the close of business on
the Series C Effective Date (which, for purposes of Sections 2.01(d) and 2.07(a)
of the Credit Agreement, shall be the "commitment termination date" for the
Series C Commitments).

                      Series C Incremental Loan Agreement
<PAGE>
                                       3

                  Section 2.03.  Repayment of Loans.

                  (a) Series C Loans. The Borrower hereby unconditionally
promises to pay to the Administrative Agent for the account of the Series C
Lenders the outstanding principal amount of the Series C Loans on each Principal
Payment Date set forth below in the aggregate principal amount set forth
opposite such Principal Payment Date:

<Table>
<Caption>
                         Principal Payment Date                         Principal Amount
                         ----------------------                         ----------------
<S>                                                                     <C>
                         March 31, 2003                                     $500,000
                         June 30, 2003                                      $500,000
                         September 30, 2003                                 $500,000
                         December 31, 2003                                  $500,000

                         March 31, 2004                                     $500,000
                         June 30, 2004                                      $500,000
                         September 30, 2004                                 $500,000
                         December 31, 2004                                  $500,000

                         March 31, 2005                                     $500,000
                         June 30, 2005                                      $500,000
                         September 30, 2005                                 $500,000
                         December 31, 2005                                  $500,000

                         March 31, 2006                                     $500,000
                         June 30, 2006                                      $500,000
                         September 30, 2006                                 $500,000
                         December 31, 2006                                  $500,000

                         February 1, 2007                               $192,000,000
</Table>

To the extent not previously paid, all Series C Loans shall be due and payable
on the Tranche C Maturity Date. Notwithstanding the foregoing, if on any date
after June 1, 2006, the maturity date for the $255,000,000 9 5/8% Senior
Subordinated Notes due December 1, 2006 falls within six months of the Series C
Maturity Date, the maturity of the Series C Incremental Term Loans shall be
accelerated to the Tranche B Maturity Date.

                  Section 2.04. Applicable Margin. The Applicable Margin for
Series C Loans shall be 1.50% in the case of Adjusted Base Rate Loans and 2.50%
in the case of Eurodollar Loans.

                      Series C Incremental Loan Agreement

<PAGE>
                                       4

                  Section 2.05. Delivery of Lender Addenda. Each Series C Lender
shall become a party to this Agreement by delivering to each Agent a Lender
Addendum duly executed by such Series C Lender, the Borrower and the
Administrative Agent.

                  Section 2.06. Status of Agreement. The Series C Commitments of
each Series C Lender constitute Incremental Loan Commitments, the Series C
Lenders constitute Incremental Loan Lenders and the Series C Loans constitutes a
single Series of Incremental Loans under Section 2.01(d) of the Credit
Agreement.

                                   ARTICLE III

                   REPRESENTATION AND WARRANTIES; NO DEFAULTS

                  The Borrower and each Subsidiary Guarantor represents and
warrants to the Lenders and the Administrative Agent, as to itself and each of
its Subsidiaries that, after giving effect to the provisions hereof, (i) each of
the representations and warranties set forth in Article IV of the Credit
Agreement is true and correct on and as of the date hereof as if made on and as
of the date hereof (or, if any such representation or warranty is expressly
stated to have been made as of a specific date, such representation or warranty
is true and correct as of such specific date) and as if each reference therein
to the Credit Agreement or Loan Documents included reference to this Agreement
and (ii) no Default or Event of Default has occurred and is continuing.

                                   ARTICLE IV

                                   CONDITIONS

                  The obligations of the Series C Lenders to make Series C Loans
are subject to the conditions precedent that each of the following conditions
shall have been satisfied (or waived by the Required Series C Lenders):

                  (a) Counterparts of Agreement. The Administrative Agent (or
         Special Counsel) shall have received from each party hereto either (i)
         a counterpart of this Agreement signed on behalf of such party or (ii)
         written evidence satisfactory to the Administrative Agent (which may
         include telecopy transmission of a signed signature page of this
         Agreement) that such party has signed a counterpart of this Agreement.

                  (b) Opinion of Counsel to Credit Parties. The Administrative
         Agent (or Special Counsel) shall have received a favorable written
         opinion (addressed to the Administrative Agent and the Series C Lenders
         and dated the Series C Effective Date) of Kean, Miller, Hawthorne,
         D'Armond, McCowan & Jarman, L.L.P., counsel to the Credit Parties,
         substantially in the form of Annex 2, and covering such matters
         relating to the Credit

                      Series C Incremental Loan Agreement

<PAGE>
                                       5

         Parties or this Agreement as the Administrative Agent shall request
         (and each Credit Party hereby requests such counsel to deliver such
         opinion).

                  (c) Opinion of Special Counsel. The Administrative Agent shall
         have received a favorable written legal opinion (addressed to
         Administrative Agent, the Series C Lenders and dated the Series C
         Effective Date) of Special Counsel, substantially in the form of Annex
         3 (and the Administrative Agent hereby requests such counsel to deliver
         such opinion).

                  (d) Corporate Matters. The Administrative Agent (or Special
         Counsel) shall have received such documents and certificates as either
         the Administrative Agent or Special Counsel may reasonably request
         relating to the organization, existence and good standing of each
         Credit Party, the authorization of the Borrowings hereunder and any
         other legal matters relating to the Credit Parties, the Credit
         Agreement or this Agreement, all in form and substance reasonably
         satisfactory to each Agent.

                  (e) Notes. The Administrative Agent (or Special Counsel) shall
         have received for each Series C Lender that shall have requested a
         promissory note at least one Business Day prior to the Series C
         Effective Date, a duly completed and executed promissory note for such
         Series C Lender.

                  (f) Fees and Expenses. The Administrative Agent shall have
         received all fees and other amounts due and payable on or prior to the
         Series C Effective Date, including, to the extent invoiced,
         reimbursement or payment of all out-of-pocket expenses required to be
         reimbursed or paid by the Borrower hereunder.

                  (g) Additional Conditions. The Administrative Agent (or
         Special Counsel) shall have received a certificate, dated the Series C
         Effective Date and signed by a Financial Officer confirming that (i)
         after giving effect to the Borrowing hereunder (under the assumption
         that such Borrowing had been consummated on the first day of the
         respective periods for which calculations are to be made under the
         covenants in Section 7.09 of the Credit Agreement), the Borrower would
         have been in compliance with the applicable provisions of Section 7.09
         of the Credit Agreement and (ii) each of the applicable conditions
         precedent set forth in Section 5.03 of the Credit Agreement to the
         making of Series C Loans on the Series C Effective Date shall have been
         satisfied.

                                    ARTICLE V

                         GUARANTY AND PLEDGE BY HOLDINGS

                  By its signature hereto, Holdings confirms that the
obligations of the Borrower under this Agreement and in respect of the Series C
Loans are entitled to the benefits of the

                      Series C Incremental Loan Agreement

<PAGE>
                                       6

guarantee and pledge set forth in the Holdings Guaranty and Pledge Agreement and
constitute Guaranteed Obligations and Secured Obligations (in each case, as
defined therein).

                                   ARTICLE VI

                                  MISCELLANEOUS

                  SECTION 6.01. Expenses. The Obligors jointly and severally
agree to pay, or reimburse the Administrative Agent, Series C Lenders for
paying, (i) all reasonable out-of-pocket expenses incurred by the Administrative
Agent and its Affiliates, including the reasonable fees, charges and
disbursements of Special Counsel, in connection with the syndication of the
Series C Loans provided for herein and the preparation of this Agreement.

                  SECTION 6.02. Counterparts; Integration; Effectiveness. This
Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract. This Agreement
shall become effective when this Agreement shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received
counterparts hereof and thereof which, when taken together, bear the signatures
of each of the other parties hereto and thereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns. Delivery of an executed counterpart of a signature page
of this Agreement by telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement.

                  SECTION 6.03. Governing Law. This Agreement shall be governed
by, and construed in accordance with, the law of the State of New York.

                  SECTION 6.04. Headings. Article and Section headings used
herein are for convenience of reference only, are not part of this Agreement and
shall not affect the construction of, or be taken into consideration in
interpreting, this Agreement.

                      Series C Incremental Loan Agreement

<PAGE>
                                       7

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed by their respective authorized officers as of the
day and year first above written.

                              BORROWER AND HOLDINGS

LAMAR MEDIA CORP.                         LAMAR ADVERTISING COMPANY

By: /s/ Keith A. Istre                    By: /s/ Keith A. Istre
   ------------------------------------      -----------------------------------
   Title: Vice President - Finance and       Title: Vice President - Finance and
               Chief Financial Officer       Chief Financial Officer

                              SUBSIDIARY GUARANTORS

                                  LAMAR ADVERTISING OF COLORADO SPRINGS,
                                   INC.
                                  LAMAR TEXAS GENERAL PARTNER, INC.
                                  TLC PROPERTIES, INC.
                                  TLC PROPERTIES II, INC.
                                  LAMAR PENSACOLA TRANSIT, INC.
                                  LAMAR ADVERTISING OF YOUNGSTOWN, INC.
                                  NEBRASKA LOGOS, INC.
                                  OHIO LOGOS, INC.
                                  UTAH LOGOS, INC.
                                  SOUTH CAROLINA LOGOS, INC.
                                  MINNESOTA LOGOS, INC.
                                  MICHIGAN LOGOS, INC.
                                  FLORIDA LOGOS, INC.
                                  NEVADA LOGOS, INC.
                                  TENNESSEE LOGOS, INC.
                                  KANSAS LOGOS, INC.
                                  COLORADO LOGOS, INC.
                                  NEW MEXICO LOGOS, INC.
                                  CANADIAN TODS LIMITED
                                  LAMAR ADVERTISING OF MICHIGAN, INC.
                                  LAMAR ELECTRICAL, INC.
                                  AMERICAN SIGNS, INC.
                                  LAMAR OCI NORTH CORPORATION, successor to
                                   Lamar Aztec, Inc.
                                  LAMAR OCI SOUTH CORPORATION

                      Series C Incremental Loan Agreement

<PAGE>
                                       8

                                  LAMAR ADVERTISING OF KENTUCKY, INC.
                                  LAMAR FLORIDA, INC.
                                  LAMAR ADVERTISING OF IOWA, INC.
                                  LAMAR ADVAN, INC.
                                  LAMAR ADVERTISING OF SOUTH DAKOTA, INC.
                                  LAMAR CENTRAL OUTDOOR, INC., formally known as
                                     Lamar Advertising of Texas, Inc. and
                                     successor to Dowling Company Incorporated,
                                     Lamar Martin Corporation, Lamar MW Sign
                                     Corporation, Lamar Nevada Sign Corporation,
                                     Lamar Outdoor Corporation, Lamar Whiteco
                                     Outdoor Corporation, Lamar Springfield,
                                     Inc., Lamar West, L.P., Lindsay Outdoor
                                     Advertising, Inc., Scenic Marketing &
                                     Consulting, Inc., McCloskey Outdoor
                                     Advertising, Inc. and Lamar G&H Outdoor
                                     Advertising, L.L.C.
                                  LAMAR ADVANTAGE HOLDING COMPANY, successor to
                                     Superior Outdoor Advertising, Inc., Custom
                                     Leasing & Reality, Inc., and Arkansas
                                     Outdoor Advertising Co., Inc.
                                  LAMAR OHIO OUTDOOR HOLDING CORP.
                                  LAMAR BENCHES, INC.
                                  LAMAR I-40 WEST, INC.
                                  LAMAR ADVERTISING OF OKLAHOMA, INC.
                                  LAMAR OKLAHOMA HOLDING
                                    COMPANY, INC.
                                  HARDIN DEVELOPMENT CORPORATION
                                  PARSONS DEVELOPMENT COMPANY
                                  REVOLUTION OUTDOOR ADVERTISING,
                                    INC.
                                  OUTDOOR MARKETING SYSTEMS, INC.
                                  LAMAR ADVERTISING SOUTHWEST, INC.
                                  LAMAR DOA TENNESSEE HOLDINGS, INC.
                                  LAMAR DOA TENNESSEE, INC.
                                  TRANS WEST OUTDOOR ADVERTISING, INC.

                                  By: /s/ Keith A. Istre
                                      ------------------------------------------
                                          Keith A. Istre
                                          Vice President -Finance and
                                          Chief Financial Officer

                      Series C Incremental Loan Agreement

<PAGE>
                                       9

                                  MISSOURI LOGOS, LLC, formally known as Lamar
                                   Missouri, LLC and successor to Missouri
                                   Logos, Inc.
                                  KENTUCKY LOGOS, LLC, formally known
                                   as Lamar Kentucky, LLC and successor to
                                   Kentucky Logos, Inc.
                                  OKLAHOMA LOGOS, L.L.C., successor to Oklahoma
                                   Logo Signs, Inc.
                                  MISSISSIPPI LOGOS, L.LC., successor to
                                   Mississippi Logos, Inc.
                                  DELAWARE LOGOS, L.L.C.
                                  NEW JERSEY LOGOS, L.L.C., successor to New
                                   Jersey Logos, Inc.
                                  GEORGIA LOGOS, L.L.C., formally known as
                                   Georgia Logos, Inc.
                                  VIRGINIA LOGOS, LLC, successor to Virginia
                                   Logos, Inc.
                                  MAINE LOGOS, L.L.C.

                                  By: Interstate Logos, L.L.C.
                                  Its: Managing Member
                                  By: Lamar Media Corp., Its: Managing Member

                                  By: /s/ Keith A. Istre
                                     -------------------------------------------
                                          Keith A. Istre
                                          Vice President -Finance and
                                          Chief Financial Officer

                                  INTERSTATE LOGOS, L.L.C., successor to
                                   Interstate Logos, Inc.
                                  THE LAMAR COMPANY, L.L.C., successor to Lamar
                                   Advertising of Alabama, Inc., Lamar
                                   Advertising of Ashland, Inc., Lamar
                                   Advertising of Greenville, Inc., Lamar
                                   Advertising of Jackson, Inc., Lamar
                                   Advertising of Joplin, Inc., Lamar
                                   Advertising of Mobile, Inc., Lamar
                                   Advertising of Missouri, Inc., Lamar
                                   Advertising of South Georgia, Inc., Lamar
                                   Advertising of South Mississippi, Inc., Lamar
                                   Robinson, Inc., South Dakota Advertising,
                                   Inc., The Lamar Corporation, Lamar Bellows
                                   Outdoor Advertising, Inc., Lamar Hardy
                                   Outdoor Advertising, Inc., Able Outdoor,
                                   Inc., Lamar KYO, Inc., Lamar Advertising of
                                   Macon, L.L.C.,

                      Series C Incremental Loan Agreement

<PAGE>
                                       10

                                   Outdoor West, Inc. of Tennessee and Outdoor
                                   West, Inc. of Georgia

                                  By: Lamar Media Corp.,
                                  Its: Managing Member

                                  By: /s/ Keith A. Istre
                                      ------------------------------------------
                                          Keith A. Istre
                                          Vice President -Finance and
                                          Chief Financial Officer

                                  LAMAR ADVERTISING OF PENN, LLC, successor to
                                   Lamar Advertising of  Penn, Inc.
                                  LAMAR ADVERTISING OF LOUISIANA, L.L.C.
                                  LAMAR TENNESSEE, L.L.C., successor to Lamar
                                   Advertising of Roland, Inc.
                                  LAMAR AIR, L.L.C.
                                  LC BILLBOARD, L.L.C.

                                  By: The Lamar Company, L.L.C.
                                  Its: Managing Member
                                  By: Lamar Media Corp.
                                  Its: Managing Member

                                  By: /s/ Keith A. Istre
                                      ------------------------------------------
                                          Keith A. Istre
                                          Vice President -Finance and
                                          Chief Financial Officer

                                  LAMAR TEXAS LIMITED PARTNERSHIP, successor to
                                   Lamar Advertising of Huntington-Bridgeport,
                                   Inc., Lamar Advertising of West Virginia,
                                   Inc., and Lamar Ember, Inc.

                      Series C Incremental Loan Agreement

<PAGE>
                                       11

                                  By: Lamar Texas General Partner, Inc.
                                  Its: General Partner

                                  By: /s/ Keith A. Istre
                                     -------------------------------------------
                                          Keith A. Istre
                                          Vice President -Finance and
                                          Chief Financial Officer

                                  TLC PROPERTIES, L.L.C.
                                  By: TLC Properties, Inc.
                                  Its: Managing Member

                                  By: /s/ Keith A. Istre
                                     -------------------------------------------
                                          Keith A. Istre
                                          Vice President -Finance and
                                          Chief Financial Officer

                                  OUTDOOR PROMOTIONS WEST, LLC
                                  TRANSIT AMERICA LAS VEGAS, L.L.C.
                                  LAMAR TRANSIT ADVERTISING OF NEW
                                   ORLEANS, LLC, successor to Triumph Outdoor
                                   Louisiana, LLC
                                  TRIUMPH OUTDOOR RHODE ISLAND, LLC

                                  By: Triumph Outdoor Holdings, LLC
                                  Its: Managing Member
                                  By: Lamar Central Outdoor, Inc.
                                  Its: Managing Member

                                  By: /s/ Keith A. Istre
                                     -------------------------------------------
                                          Keith A. Istre
                                          Vice President -Finance and
                                          Chief Financial Officer

                                  LAMAR ADVANTAGE GP COMPANY, LLC
                                  LAMAR ADVANTAGE LP COMPANY, LLC, successor
                                   to Lamar Wright Poster Corp.

                      Series C Incremental Loan Agreement

<PAGE>
                                       12

                                  TRIUMPH OUTDOOR HOLDINGS, LLC

                                  By: Lamar Central Outdoor, Inc.
                                  Its: Managing Member

                                  By: /s/ Keith A. Istre
                                     -------------------------------------------
                                          Keith A. Istre
                                          Vice President -Finance and
                                          Chief Financial Officer

                                  LAMAR ADVANTAGE OUTDOOR
                                  COMPANY, L.P.

                                  By: Lamar Advantage GP Company, LLC
                                  Its: General Partner
                                  By: Lamar Central Outdoor, Inc.
                                  Its: Managing Member

                                  By: /s/ Keith A. Istre
                                     -------------------------------------------
                                          Keith A. Istre
                                          Vice President -Finance and
                                          Chief Financial Officer

                                  LAMAR T.T.R., L.L.C.

                                  By: Lamar Advertising of Youngstown, Inc.
                                  Its: Managing Member

                                  By: /s/ Keith A. Istre
                                     -------------------------------------------
                                          Keith A. Istre
                                          Vice President -Finance and
                                          Chief Financial Officer

                      Series C Incremental Loan Agreement

<PAGE>
                                       13

                                  TEXAS LOGOS, L.P., formally known as Texas
                                   Logos, Inc.

                                  By: Oklahoma Logos, L.L.C.
                                  Its: General Partner
                                  By: Interstate Logos, L.L.C.
                                  Its: Managing Member
                                  By: Lamar Media Corp.
                                  Its: Managing Member

                                  By: /s/ Keith A. Istre
                                     -------------------------------------------
                                          Keith A. Istre
                                          Vice President -Finance and
                                          Chief Financial Officer

                                  OUTDOOR MARKETING SYSTEMS, L.L.C.

                                  By:  Outdoor Marketing Systems, Inc.
                                  Its: Managing member

                                  By: /s/ Keith A. Istre
                                     -------------------------------------------
                                          Keith A. Istre
                                          Vice President -Finance and
                                          Chief Financial Officer

                      Series C Incremental Loan Agreement

<PAGE>

                                          14

                                  ADMINISTRATIVE AGENT

                                      JPMORGAN CHASE BANK,
                                        as Administrative Agent

                                      By  /s/ Marian N. Schulman
                                        ----------------------------------------
                                        Title: Vice President

                      Series C Incremental Loan Agreement

<PAGE>

                                                                         ANNEX 1

                            [Form Of Lender Addendum]

                                 LENDER ADDENDUM

                  Reference is made to the Series C Incremental Loan Agreement
dated as of January 8, 2002 (the "Series C Agreement") between Lamar Advertising
Company, Lamar Media Corp. (the "Borrower"), the Subsidiary Guarantors party
thereto, the Series C Lenders named therein (the "Series C Lenders") and
JPMorgan Chase Bank, as Administrative Agent (the "Administrative Agent"), which
Series C Agreement is being entered into pursuant to Section 2.01(d) of the
Credit Agreement dated as of August 13, 1999 (as heretofore amended, the "Credit
Agreement") among the Borrower, the Subsidiary Guarantors party thereto, the
lenders party thereto and the Administrative Agent. Terms used but not defined
in this Lender Addendum have the meanings assigned to such terms in the Series C
Agreement and the Credit Agreement.

                  By its signature below, and subject to the acceptance hereof
by the Borrower and the Administrative Agent as provided below, the undersigned
hereby becomes a Series C Lender under the Series C Agreement, having the Series
C Commitment, set forth below opposite its name.

                  This Lender Addendum shall be governed by, and construed in
accordance with, the law of the State of New York.

                  This Lender Addendum may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract.

                                 Lender Addendum

<PAGE>
                                       2

                  IN WITNESS WHEREOF, the parties hereto have caused this Lender
Addendum to be duly executed and delivered by their proper and duly authorized
officers as of this ___ day of ___________, 200[_].

Amount of Series C                    --------------------------------------
  Commitment:                               [Name of Series C Lender]

  $
   ---------------

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

                                 Lender Addendum

<PAGE>

                                       3

Accepted and agreed:

JPMORGAN CHASE BANK,
  As Administrative Agent

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

LAMAR MEDIA CORP.

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

                                 Lender Addendum

<PAGE>

                                                                         ANNEX 2

                 [Form of Opinion of Counsel to Credit Parties]

                                                                          [Date]

To the Series C Lenders
  party to the Series C
  Loan Agreement referred to below and
  JPMorgan Chase Bank,
  as Administrative Agent

Ladies and Gentlemen:

         We have acted as counsel to LAMAR ADVERTISING COMPANY ("Holdings"),
LAMAR MEDIA CORP. (herein the "Borrower") and the SUBSIDIARY GUARANTORS, in
connection with the Series C Incremental Loan Agreement dated as of January 8,
2002 (the "Series C Agreement") between Lamar Advertising Company ("Holdings")
Lamar Media Corp. (the "Borrower"), the Subsidiary Guarantors party thereto, the
Series C Lenders party thereto (the "Series C Lenders") and JPMorgan Chase Bank,
as Administrative Agent (the "Administrative Agent"), which Series C Agreement
is being entered into pursuant to Section 2.01(d) of the Credit Agreement dated
as of August 13, 1999 (as heretofore amended the "Credit Agreement") between the
Borrower, the Subsidiary Guarantors party thereto, the lenders party thereto and
the Administrative Agent. Terms defined in the Series C Agreement and Credit
Agreement are used herein as defined therein. This opinion is being delivered
pursuant to clause (b) of Article IV of the Series C Agreement.

         In rendering the opinions expressed below, we have examined the
following agreements, instruments and other documents:

         (a)      the Series C Agreement;

         (b)      the Credit Agreement; and

         (c)      the Holdings Guaranty and Pledge Agreement.

The agreements, instruments and other documents referred to in the foregoing
lettered clauses are collectively referred to as the "Credit Documents".

                  In our examination, we have assumed the genuineness of all
signatures, the authenticity of all documents submitted to us as originals and
the conformity with authentic original documents of all documents submitted to
us as copies. When relevant facts were not independently established, we have
relied upon statements of governmental officials and upon

                  Form of Opinion of Counsel to Credit Parties

<PAGE>
                                       2

representations made in or pursuant to the Credit Documents and certificates of
appropriate representatives of the Credit Parties.

         In rendering the opinions expressed below, we have assumed, with
respect to all of the documents referred to in this opinion letter, that
(except, to the extent set forth in the opinions expressed below, as to the
Credit Parties):

            (i)      such documents have been duly authorized by, have been duly
                     executed and delivered by, and constitute legal, valid,
                     binding and enforceable obligations of, all of the parties
                     to such documents;

           (ii)      all signatories to such documents have been duly
                     authorized; and

          (iii)      all of the parties to such documents are duly organized and
                     validly existing and have the power and authority
                     (corporate or other) to execute, deliver and perform such
                     documents.

                  Based upon and subject to the foregoing and subject also to
the comments and qualifications set forth below, and having considered such
questions of law as we have deemed necessary as a basis for the opinions
expressed below, we are of the opinion that:

                  1. Holdings is a corporation duly organized, validly existing
         and in good standing under the laws of the State of Delaware. The
         Borrower is a corporation duly organized, validly existing and in good
         standing under the laws of the State of Delaware. Each Subsidiary of
         the Borrower is a corporation, partnership or other entity duly
         organized, validly existing and in good standing under the laws of the
         respective state indicated opposite its name in Schedule 4.14 to the
         Credit Agreement or pursuant to a Joinder Agreement as required by
         Section 6.10 of the Credit Agreement.

                  2. Each Credit Party has all requisite corporate or other
         power to execute and deliver, and to perform its obligations under, the
         Credit Documents to which it is a party. The Borrower has all requisite
         corporate power to borrow under the Credit Agreement and to incur
         liability in respect of Letters of Credit under the Credit Agreement.

                  3. The execution, delivery and performance by each Credit
         Party of each Credit Document to which it is a party, and the
         borrowings and the incurrence of liability in respect of Letters of
         Credit by the Borrower under the Credit Agreement, have been duly
         authorized by all necessary corporate or other action on the part of
         such Credit Party.

                  4. Each Credit Document has been duly executed and delivered
         by each Credit Party party thereto.

                  Form of Opinion of Counsel to Credit Parties

<PAGE>
                                       3

                  5. Under Louisiana conflict of laws principles, the stated
         choice of New York law to govern the Credit Documents will be honored
         by the courts of the State of Louisiana and the Credit Documents will
         be construed in accordance with, and will be treated as being governed
         by, the law of the State of New York. However, if the Credit Documents
         were stated to be governed by and construed in accordance with the law
         of the State of Louisiana, or if a Louisiana court were to apply the
         law of the State of Louisiana to the Credit Documents, each Credit
         Document would nevertheless constitute the legal, valid and binding
         obligation of each Credit Party party thereto, enforceable against such
         Credit Party in accordance with its terms, except as may be limited by
         bankruptcy, fraudulent conveyance, insolvency, reorganization,
         moratorium or other similar laws relating to or affecting the rights of
         creditors generally and except as the enforceability of the Credit
         Documents is subject to the application of general principles of equity
         (regardless of whether considered in a proceeding in equity or at law),
         including, without limitation, (a) the possible unavailability of
         specific performance, injunctive relief or any other equitable remedy
         and (b) concepts of materiality, reasonableness, good faith and fair
         dealing.

                  6. No authorization, approval or consent of, and no filing or
         registration with, any governmental or regulatory authority or agency
         of the United States of America or the State of Louisiana is required
         on the part of any Credit Party for the execution, delivery or
         performance by any Credit Party of any of the Credit Documents or for
         the borrowings by the Borrower under the Credit Agreement.

                  7. The execution, delivery and performance by each Credit
         Party of, and the consummation by each Credit Party of the transactions
         contemplated by, the Credit Documents to which such Credit Party is a
         party do not and will not (a) violate any provision of the charter or
         by-laws of any Credit Party, (b) violate any applicable law, rule or
         regulation, (c) violate any order, writ, injunction or decree of any
         court or governmental authority or agency or any arbitral award
         applicable to the Credit Parties or any of their respective
         Subsidiaries of which we have knowledge (after due inquiry) or (d)
         based on an opinion of the General Counsel of the Borrower, result in a
         breach of, constitute a default under, require any consent under, or
         result in the acceleration or required prepayment of any indebtedness
         pursuant to the terms of, any agreement or instrument of which we have
         knowledge (after due inquiry) to which the Credit Parties or any of
         their respective Subsidiaries is a party or by which any of them is
         bound or to which any of them is subject, or result in the creation or
         imposition of any Lien upon any property of any Credit Party pursuant
         to, the terms of any such agreement or instrument.

                  8. Except as set forth in Schedule 4.06 to the Credit
         Agreement, we have no knowledge (after due inquiry) of any legal or
         arbitral proceedings, or any proceedings by or before any governmental
         or regulatory authority or agency, pending or threatened against or
         affecting the Credit Parties or any of

                  Form of Opinion of Counsel to Credit Parties

<PAGE>
                                       4

         their respective Subsidiaries or any of their respective properties
         that, if adversely determined, could have a Material Adverse Effect.

                  The foregoing opinions are subject to the following comments
and qualifications:

                  (A) The enforceability of Section 10.03 of the Credit
         Agreement may be limited by laws limiting the enforceability of
         provisions exculpating or exempting a party, or requiring
         indemnification of a party for, liability for its own action or
         inaction, to the extent the action or inaction involves gross
         negligence, recklessness, willful misconduct or unlawful conduct.

                  (B) Clause (iii) of the second sentence of Section 3.02 of the
         Credit Agreement may not be enforceable to the extent that the
         Guaranteed Obligations (as defined in the Credit Agreement) are
         materially modified.

                  (C) The enforceability of provisions in the Credit Documents
         to the effect that terms may not be waived or modified except in
         writing may be limited under certain circumstances.

                  (D) We express no opinion as to (i) the effect of the laws of
         any jurisdiction in which any Lender is located (other than the State
         of Louisiana) that limit the interest, fees or other charges such
         Lender may impose for the loan or use of money or other credit, (ii)
         the last sentence of Section 2.16(d) of the Credit Agreement, (iii) the
         first sentence of Section 10.09(b) of the Credit Agreement (and any
         similar provisions in any of the other Credit Documents), insofar as
         such sentence relates to the subject matter jurisdiction of the United
         States District Court for the Southern District of New York to
         adjudicate any controversy related to the Credit Documents and (iv)
         Section 3.06 or 3.09 of the Credit Agreement (and any similar
         provisions in any of the other Credit Documents).

                  (E) We express no opinion as to the applicability to the
         obligations of any Subsidiary Guarantor (or the enforceability of such
         obligations) of Section 548 of the Bankruptcy Code or any other
         provision of law relating to fraudulent conveyances, transfers or
         obligations or of the provisions of the law of the jurisdiction of
         incorporation of any Subsidiary Guarantor restricting dividends, loans
         or other distributions by a corporation for the benefit of its
         stockholders.

                  Partners or Associates of this Firm are members of the Bar of
the State of Louisiana and we do not hold ourselves out as being conversant with
the laws of any jurisdiction other than those of the United States of America
and the State of Louisiana, and we express no opinion as to the laws of any
jurisdiction other than those of the United States of America, the State of
Louisiana and the General Corporation Law of the State of Delaware.

                  Form of Opinion of Counsel to Credit Parties

<PAGE>
                                       5

                  At the request of our clients, this opinion letter is,
pursuant to clause (b) of Article IV of the Series C Agreement, provided to you
by us in our capacity as counsel to the Credit Parties and may not be relied
upon by any Person for any purpose other than in connection with the
transactions contemplated by the Series C Agreement without, in each instance,
our prior written consent.

                                                Very truly yours,

                  Form of Opinion of Counsel to Credit Parties

<PAGE>

                                                                         ANNEX 3

                      [Form of Opinion of Special Counsel]

                                                     [Date]

To the Series C Lenders
 and the Administrative Agent party
 to the Series C
 Loan Agreement and Credit Agreement
 referred to below

Ladies and Gentlemen:

                  We have acted as special New York counsel to JPMorgan Chase
Bank ("Chase") in connection with the Series C Incremental Loan Agreement dated
as of January 8, 2002 (the "Series C Agreement") between Lamar Advertising
Company ("Holdings"), Lamar Media Corp. (the "Borrower"), the Subsidiary
Guarantors party thereto, the Series C Lenders party thereto (the "Series C
Lenders") and JPMorgan Chase Bank, as Administrative Agent (the "Administrative
Agent"), which Series C Agreement is being entered into pursuant to Section
2.01(d) of the Credit Agreement dated as of August 13, 1999 (as heretofore
amended the "Credit Agreement") between the Borrower, the Subsidiary Guarantors
party thereto, the lenders party thereto and the Administrative Agent. Terms
defined in the Series C Agreement and Credit Agreement are used herein as
defined therein. This opinion is being delivered pursuant to clause (c) of
Article IV of the Series C Agreement.

                  In rendering the opinions expressed below, we have examined
the following agreements, instruments and other documents:

                  (a)   the Series C Agreement;

                  (b)   the Credit Agreement; and

                  (c)   the Holdings Guaranty and Pledge Agreement.

The agreements, instruments and other documents referred to in the foregoing
lettered clauses are collectively referred to as the "Credit Documents".

                  In our examination, we have assumed the authenticity of all
documents submitted to us as originals and the conformity with authentic
original documents of all documents submitted to us as copies. When relevant
facts were not independently established, we have relied upon representations
made in or pursuant to the Credit Documents.

                       Form of Opinion of Special Counsel

<PAGE>

                  In rendering the opinions expressed below, we have assumed,
with respect to all of the documents referred to in this opinion letter, that:

               (i)         such documents have been duly authorized by, have
                           been duly executed and delivered by, and (except to
                           the extent set forth in the opinions below as to the
                           Credit Parties) constitute legal, valid, binding and
                           enforceable obligations of, all of the parties to
                           such documents;

              (ii)         all signatories to such documents have been duly
                           authorized;

             (iii)         all of the parties to such documents are duly
                           organized and validly existing and have the power and
                           authority (corporate or other) to execute, deliver
                           and perform such documents; and

              (iv)         the Series C Agreement has become effective in
                           accordance with the provisions of Section 6.02
                           thereof.

                  Based upon and subject to the foregoing and subject also to
the comments and qualifications set forth below, and having considered such
questions of law as we have deemed necessary as a basis for the opinions
expressed below, we are of the opinion that each of the Credit Documents
constitutes the legal, valid and binding obligation of each Credit Party party
thereto, enforceable against such Credit Party in accordance with its terms,
except as may be limited by bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance or other similar laws relating to or affecting the rights
of creditors generally and except as the enforceability of the Credit Documents
is subject to the application of general principles of equity (regardless of
whether considered in a proceeding in equity or at law), including, without
limitation, (a) the possible unavailability of specific performance, injunctive
relief or any other equitable remedy and (b) concepts of materiality,
reasonableness, good faith and fair dealing.

                  The foregoing opinions are subject to the following comments
and qualifications:

                  (A) The enforceability of Section 10.03(b) of the Credit
         Agreement may be limited by laws limiting the enforceability of
         provisions exculpating or exempting a party, or requiring
         indemnification of a party for, liability for its own action or
         inaction, to the extent the action or inaction involves gross
         negligence, recklessness, willful misconduct or unlawful conduct.

                  (B) Clause (iii) of the second sentence of Section 3.02 of the
         Credit Agreement may not be enforceable to the extent that the
         Guaranteed Obligations (as defined in the Credit Agreement) are
         materially modified.

                  (C) The enforceability of provisions in the Credit Documents
         to the effect that terms may not be waived or modified except in
         writing may be limited under certain circumstances.

                       Form of Opinion of Special Counsel

<PAGE>
                                       3

                  (D) We express no opinion as to (i) the effect of the laws of
         any jurisdiction in which any Lender is located (other than the State
         of New York) that limit the interest, fees or other charges such Lender
         may impose for the loan or use of money or other credit, (ii) the last
         sentence of Section 2.16(d) of the Credit Agreement, (iii) the first
         sentence of Section 10.09(b) of the Credit Agreement, insofar as such
         sentence relates to the subject matter jurisdiction of the United
         States District Court for the Southern District of New York to
         adjudicate any controversy related to the Credit Documents, (iv) the
         waiver of inconvenient forum set forth in Section 10.09(c) with respect
         to proceedings in the United States District Court for the Southern
         District of New York and (v) Section 3.06 or 3.09 of the Credit
         Agreement.

                  (E) We express no opinion as to the applicability to the
         obligations of any Subsidiary Guarantor (or the enforceability of such
         obligations) of Section 548 of the United States Bankruptcy Code,
         Article 10 of the New York Debtor and Creditor Law or any other
         provision of law relating to fraudulent conveyances, transfers or
         obligations or of the provisions of the law of the jurisdiction of
         incorporation of any Subsidiary Guarantor restricting dividends, loans
         or other distributions by a corporation for the benefit of its
         stockholders.

                  (F) We wish to point out that the obligations of Holdings
         under the Holdings Guaranty and Pledge Agreement, and the rights and
         remedies of the Administrative Agent under Sections 6.05 through 6.09
         (inclusive) of the Holdings Guaranty and Pledge Agreement, may be
         subject to possible limitations upon the exercise of remedial or
         procedural provisions contained in the Holdings Guaranty and Pledge
         Agreement, provided that such limitations do not, in our opinion (but
         subject to the other comments and qualifications set forth in this
         opinion letter), make the remedies and procedures that will be afforded
         to the Administrative Agent and the Secured Parties (as defined in the
         Holdings Guarantee and Pledge Agreement) inadequate for the practical
         realization of the substantive benefits purported to be provided to the
         Administrative Agent and such Secured Parities by the Holdings Guaranty
         and Pledge Agreement.

                  (G) We express no opinion as to the existence of, or the
         right, title or interest of Holdings in, to or under any of the Pledged
         Stock (as defined in the Holdings Guaranty and Pledge Agreement).

                  (H) We express no opinion as to the creation, perfection or
         priority of any security interest in any Collateral (as defined in the
         Holdings Guaranty and Pledge Agreement).

                       Form of Opinion of Special Counsel

<PAGE>

                                       4

                  The foregoing opinions are limited to matters involving the
Federal laws of the United States and the law of the State of New York, and we
do not express any opinion as to the laws of any other jurisdiction. At the
request of our client, this opinion is rendered solely to you in connection with
the above matter. This opinion may not be relied upon by you for any other
purpose or relied upon by any other Person (other than your successors and
assigns as Lenders and Persons that acquire participations in your extensions of
credit under the Credit Agreement) without our prior written consent.

                                       Very truly yours,

RJW/WFC

                       Form of Opinion of Special Counsel<PAGE>
                                                                    EXHIBIT 10.1

                              VARI-L COMPANY, INC.
                             TANDEM STOCK OPTION AND
                         STOCK APPRECIATION RIGHTS PLAN

<PAGE>

                                TABLE OF CONTENTS

<Table>
<S>                                                                                                              <C>
1.    Purpose.....................................................................................................1

2.    General Provisions..........................................................................................1

3.    Eligibility.................................................................................................2

4.    Number of Shares Subject to Plan............................................................................2

5.    Stock Option................................................................................................2

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

7.    Capital Adjustments.........................................................................................7

8.    Nontransferability..........................................................................................7

9.    Amendment, Suspension, or Termination of Plan...............................................................8

10.   Effective Date..............................................................................................8

11.   Termination Date............................................................................................8

12.   Resale of Shares Purchased..................................................................................9

13.   Acceleration of Options.....................................................................................9

14.   Written Notice Required; Tax Withholding....................................................................9

15.   Compliance with Securities Laws............................................................................10

16.   Waiver of Vesting Restrictions by Committee................................................................10

17.   Reports to Participants....................................................................................10

18.   No Employee Contract.......................................................................................10
</Table>

<PAGE>

                             TANDEM STOCK OPTION AND
                         STOCK APPRECIATION RIGHTS PLAN
                  AS AMENDED AND RESTATED AS OF JANUARY 1, 2002

         1. Purpose. Vari-L Company, Inc. (the "Company") hereby establishes the
Tandem Stock Option and Stock Appreciation Rights Plan (the "Plan"). The purpose
of the Plan is to advance the interests of the Company and its stockholders by
providing a means by which the Company shall be able to attract and retain
competent officers, directors, key employees, advisors and consultants by
providing them with an opportunity to participate in the increased value of the
Company which their effort, initiative, and skill have helped produce.

         2. General Provisions.

                  (a) The Plan will be administered by the Compensation
Committee of the Board of Directors of the Company (the "Committee"). The
Committee shall be comprised of two or more independent outside directors
designated by the Board of Directors. The Committee shall have full power to
construe and interpret the Plan and to establish and amend rules and regulations
for its administration. Notwithstanding the foregoing, if it would be consistent
with all applicable law, including, without limitation, Rule 16b-3 promulgated
under the Securities Exchange Act of 1934 as amended ("Rule 16b-3") and the
Internal Revenue Code of 1986, as amended (the "Code"), and the regulations
promulgated thereunder (including, without limitation, the regulations relating
to Section 162(m) of the Code), then the Plan may be administered by the Board
of Directors, and if so administered all subsequent references to the Committee
shall be read as referring to the Board of Directors. Any action of the
Committee with respect to the Plan shall be taken by majority vote or by the
unanimous written consent of the Committee members.

                  (b) The Committee shall determine, in its sole discretion,
which participants under the Plan shall be granted stock options or stock
appreciation rights, the time or times at which options and rights are granted,
as well as the number of shares and the duration of the options or rights which
are granted to participants, provided, however, that no participant may be
granted more than 300,000 options during any three year period under the Plan.

                  (c) The Committee shall also determine any other terms and
conditions relating to options and rights granted under the Plan as the
Committee may prescribe, in its sole discretion.

<PAGE>

                  (d) The Committee may, in its discretion, delegate its
administrative duties with respect to the Plan to an officer or employees, or to
a committee composed of officers or employees, of the Company.

                  (e) The Committee shall make all other determinations and take
all other actions which it deems necessary or advisable for the administration
of the Plan.

                  (f) All decisions, determinations and interpretations made by
the Committee shall be binding and conclusive on all participants in the Plan
and on their legal representatives, heirs and beneficiaries.

                  (g) Notwithstanding anything to the contrary herein, the
Committee shall have no authority to determine the amount, price or timing of
grants hereunder to members of the Committee, unless, and only to the extent
that, its exercise of such authority is consistent with all applicable laws,
including, without limitation, Rule 16b-3.

         3. Eligibility. Officers, directors and employees of the Company and
advisors and consultants to the Company shall be eligible to participate in the
Plan and to receive options and rights hereunder, provided, however, that: (i)
Incentive Stock Options may only be granted to employees (including officers and
directors who are employees) of the Company or its subsidiaries; and (ii)
advisors and consultants shall be eligible for grants only if they provide bona
fide services that are not rendered in connection with the offer or sale of
securities or in a capital-raising transaction.

         4. Number of Shares Subject to Plan. The aggregate number of shares of
the Company's $.01 par value Common Stock which may be granted to participants
shall be 3,624,000 shares, subject to adjustment only as provided in Sections
5(h) and 7 hereof. These shares may consist of shares of the Company's
authorized but unissued Common Stock or shares of the Company's authorized and
issued Common Stock reacquired by the Company and held in its treasury or any
combination thereof. If an option granted under this Plan is surrendered, or for
any other reason ceases to be exercisable in whole or in part, the shares as to
which the option ceases to be exercisable shall be available for options to be
granted to the same or other participants under the Plan, except to the extent
that an option is deemed surrendered by the exercise of a tandem stock
appreciation right and that right is paid by the Company in stock, in which
event the shares issued in satisfaction of the right shall not be available for
new options or rights under the Plan.

         5. Stock Option.

                  (a) Type of Options. Options granted on or after January 28,
1994 may be either Nonqualified Stock Options or Incentive Stock Options as
determined by the Committee in its sole discretion and as reflected in the
Notice of Grant issued by the

                                       2

<PAGE>

Committee. All Options granted under the Plan prior to January 28, 1994 were
nonqualified stock options. "Incentive Stock Option" means an option intended to
qualify as an incentive stock option within the meaning of Section 422 of the
Code. "Nonqualified Stock Option" means an option not intended to qualify as an
Incentive Stock Option or an Incentive Stock Option which is converted to a
Nonqualified Stock Option under Section 5(f) hereof.

                  (b) Option Price. The price at which options may be granted
under the Plan shall be determined as follows:

                           (i) For Incentive Stock Options the option price
shall be equal to 100% of the Fair Market Value of the stock on the date the
option is granted provided, however, that Incentive Stock Options granted to any
person who, at the time such option is granted owns (as defined in Section 422
of the Code) shares possessing more than 10% of the total combined voting power
of all classes of shares of the Company or its parent or subsidiary corporation,
the Option Price shall be 110% of the Fair Market Value.

                           (ii) For Nonqualified Stock Options the option price
may be less than the Fair Market Value of the stock on the date of grant, but in
no event shall the option price be less than fifty percent 50% of the Fair
Market Value of the stock on the date the option is granted.

                           (iii) For purposes of this Plan, and except as
otherwise set forth herein, "Fair Market Value" shall mean (a) if there is an
established market for the Company's Common Stock on a stock exchange, in an
over-the-counter market or otherwise, the closing price on the date of grant, or
(b) as otherwise specified by the Committee. In the case of automatic grants to
Committee members, the Fair Market Value shall be the closing price on the date
of grant.

                  (c) Exercise of Option. The right to purchase shares covered
by any option or options under this Plan shall be exercisable only in accordance
with the terms and conditions of the grant to the participant. Such terms and
conditions may include a time period or schedule whereby some of the options
granted may become exercisable, or "vested", over time and certain conditions,
such as continuous service or specified performance criteria or goals, must be
satisfied for such vesting. The determination as to whether to impose any such
vesting schedule or requirements, and the terms of such schedule or
requirements, shall be within the sole discretion of the Committee. These terms
and conditions may be different for different participants so long as all
options satisfy the requirements of the Plan.

                  Options shall be paid for in cash or in shares of the
Company's Common Stock, which shares shall be valued at the Fair Market Value of
the shares on the date of exercise, or any combination thereof. The Committee
may, in its discretion and subject to ratification by the entire Board of
Directors, loan one or more participants all or a portion of

                                       3
<PAGE>

the exercise price, together with the amount of any tax liability incurred by
the participant as a result of the exercise of the option, for up to three (3)
years with interest payable at the prime rate quoted in the Wall Street Journal
on the date of exercise. Members of the Committee may receive such loans for the
exercise of their options without Committee approval or Board ratification.

         The Committee may also permit a participant to effect a net exercise of
an option without tendering any shares of the Company's stock as payment for the
option. In such an event, the participant will be deemed to have paid for the
exercise of the option with shares of the Company's stock and shall receive from
the Company a number of shares equal to the difference between the shares that
would have been tendered and the number of options exercised.

         The Committee may also cause the Company to enter into arrangements
with one or more licensed stock brokerage firms whereby participants may
exercise options without payment therefor but with irrevocable orders to such
brokerage firm to immediately sell the number of shares necessary to pay the
exercise price for the option and the withholding taxes, if any, and then to
transmit the proceeds from such sales directly to the Company in satisfaction of
such obligations.

                  (d) Duration of Options. Unless otherwise prescribed by the
Committee or this Plan, options granted hereunder shall expire ten (10) years
from the date of grant, subject to early termination as provided in Section 5(f)
hereof.

                  (e) Incentive Stock Options Limitations. In no event shall an
Incentive Stock Option be granted to any person who, at the time such option is
granted, owns (as defined in Section 422 of the Code) shares possessing more
than 10% of the total combined voting power of all classes of shares of the
Company or of its parent or subsidiary corporation, unless the option price is
at least 110% of the Fair Market Value of the stock subject to the Option, and
such Option is by its terms not exercisable after the expiration of five (5)
years from the date such Option is granted. Moreover, the aggregate Fair Market
Value (determined as of the time that option is granted) of the shares with
respect to which Incentive Stock Options are exercisable for the first time by
any individual employee during any single calendar year under the Plan shall not
exceed $100,000. In addition, in order to receive the full tax benefits of an
Incentive Stock Option, the employee must not resell or otherwise dispose of the
stock acquired upon exercise of the Incentive Stock Option until two (2) years
after the date the option was granted and one (1) year after it was exercised.

                  (f) Early Termination of Options. In the event a participant's
employment with or service to the Company shall terminate as the result of total
disability or the result of retirement at 65 years of age or later, then any
options granted to such participant

                                       4

<PAGE>

shall terminate and may no longer be exercised three (3) months after the time
such participant is no longer an employee, officer or director of, or advisor or
consultant to, the Company. If the participant dies while employed or engaged by
the Company, to the extent that the option was exercisable at the time of the
participant's death, such option may, within one year after the participant's
death, be exercised by the person or persons to whom the participant's rights
under the option shall pass by will or by the applicable laws of descent and
distribution; provided, however, that an option may not be exercised to any
extent after the expiration of the option as originally granted. In the event a
participant's employment or engagement by the Company shall terminate as the
result of any circumstances other than those referred to above, whether
terminated by the participant or the Company, with or without cause, then all
options granted to such participant under this Plan shall terminate and no
longer be exercisable as of the date of such termination, provided, however,
that if an employee with an Incentive Stock Option terminates employment prior
to its exercise, but after such termination becomes or remains a non-employee
officer, director, advisor or consultant eligible for Nonqualified Stock Options
hereunder, then the Incentive Stock Option shall be converted to a Nonqualified
Stock Option on the date the Incentive Stock Option would otherwise have
terminated.

                  An employee who is absent from work with the Company because
of total disability, as defined below, shall not by virtue of such absence alone
be deemed to have terminated such participant's employment with the Company. All
rights which such participant would have had to exercise options granted
hereunder will be suspended during the period of such absence and may be
exercised cumulatively by such participant upon his return to the Company so
long as such rights are exercised prior to the expiration of the option as
originally granted. For purposes of this Plan, "total disability" shall mean
disability, as a result of sickness or injury, to the extent that the
participant is prevented from engaging in any substantial gainful activity and
is eligible for and receives a disability benefit under Title II of the Federal
Social Security Act.

                  (g) Automatic Grants to Committee Members. Except as provided
in Section 2(g) hereof, no action may be taken by the Committee to grant any
options to members of the Committee. Notwithstanding the foregoing and
irrespective of any action by the Committee, for each meeting during a given
month of the Board of Directors or a standing committee thereof, each member of
the Board of Directors or of such committee (other than members who are officers
or employees of the Company) that attends such meeting in person shall receive a
grant of a ten year fully vested Nonqualified Stock Options to purchase 500
shares of the Company's Common Stock at an exercise price equal to the Fair
Market Value calculated in accordance with Section 5(b) on the first trading day
of the month following the month in which the director attended a meeting.

                  (h) Reload by Payment in Shares. To the extent that a
participant pays for the exercise of an option with shares of the Company's
stock rather than cash, the tendered

                                       5

<PAGE>

shares shall be deemed to be added back to the Plan, increasing the total number
of shares subject to and reserved for the Plan by that amount.

         6. Stock Appreciation Rights.

                  (a) Grant. Stock appreciation rights may be granted by the
Committee under this Plan upon such terms and conditions as it may prescribe. A
stock appreciation right may be granted only in connection with an option
previously granted to or to be granted under this Plan. Each stock appreciation
right shall become nonexercisable and be forfeited if the related option is
exercised. "Stock appreciation right" as used in this Plan means a right to
receive the excess of Fair Market Value, on the date of exercise, of a share of
the Company's Common Stock on which an appreciation right is exercised over the
option price provided for in the related option and is issued in consideration
of services performed for the Company or for its benefit by the participant.
Such excess is hereafter called "the differential."

                  (b) Exercise of Stock Appreciation Rights. Stock appreciation
rights shall be exercisable and be payable in the following manner:

                           (i) A stock appreciation right shall be exercisable
by the participant at the same time or times that the option to which it relates
could be exercised. A participant wishing to exercise a stock appreciation right
shall give written notice of such exercise to the Company. Upon receipt of such
notice, the Company shall determine, in its sole discretion, whether the
participant's stock appreciation rights shall be paid in cash or in shares of
the Company's Common Stock or any combination of cash and shares and thereupon
shall, without deducting any transfer or issue tax, deliver to the person
exercising such right an amount of cash or shares of the Company's Common Stock
or a combination thereof with a value equal to the differential. The date the
Company receives the written notice of exercise hereunder is the exercise date.
The shares issued upon the exercise of a stock appreciation right may consist of
shares of the Company's authorized but unissued Common Stock or of its
authorized and issued Common Stock reacquired by the Company and held in its
treasury or any combination thereof. No fractional share of Common Stock shall
be issued; rather, the Committee shall determine whether cash shall be given in
lieu of such fractional share or whether such fractional share shall be
eliminated.

                           (ii) The exercise of a stock appreciation right shall
automatically result in the surrender of the related stock option by the
participant on a share for share basis. Likewise, the exercise of a stock option
shall automatically result in the surrender of the related stock appreciation
right. Shares covered by surrendered options shall be available for granting
further options under this Plan except to the extent and in the amount

                                       6

<PAGE>

that such rights are paid by the Company with shares of stock, as more fully
discussed in Section 4 hereof.

                           (iii) The Committee may impose any other terms and
conditions it prescribes upon the exercise of a stock appreciation right, which
conditions may include a condition that the stock appreciation right may only be
exercised in accordance with rules and regulations adopted by the Committee from
time to time.

                  (c) Limitation on Payments. Notwithstanding any other
provision of this Plan, the Committee may from time to time determine, including
at the time of exercise, the maximum amount of cash or stock which may be given
upon exercise of any stock appreciation right in any year, provided, however,
that all such amounts shall be paid in full no later than the end of the year
immediately following the year in which the participant exercised such stock
appreciation rights. Any determination under this paragraph may be changed by
the Committee from time to time provided that no such change shall require the
participant to return to the Company any amount theretofore received or to
extend the period within which the Company is required to make full payment of
the amount due as the result of the exercise of the participant's stock
appreciation rights.

                  (d) Expiration or termination of stock appreciation rights.

                           (i) Each stock appreciation right and all rights and
obligations thereunder shall expire on the date on which the related option
expires or terminates.

                           (ii) A stock appreciation right shall terminate and
may no longer be exercised upon the expiration or termination of the related
option.

         7. Capital Adjustments. The aggregate number of shares of the Company's
Common Stock subject to this Plan, the maximum number of shares as to which
options may be granted to any one participant hereunder, and the number of
shares and the price per share subject to outstanding options, shall be
appropriately adjusted by the Committee for any increase or decrease in the
number of shares of Common Stock which the Company has issued resulting from any
stock split, reverse stock split, stock dividend, combination of shares or any
other change, or any exchange for other securities or any reclassification,
merger, reorganization, consolidation, redesignation, recapitalization, or
otherwise. Similar adjustments shall be made to the terms of stock appreciation
rights.

         8. Nontransferability. During a participant's lifetime, an option may
be exercisable only by the participant and options granted under the Plan and
the rights and privileges conferred thereby shall not be subject to execution,
attachment or similar process and may not be transferred, assigned, pledged or
hypothecated in any manner (whether by

                                       7

<PAGE>

operation of law or otherwise) other than by will or by the applicable laws of
descent and distribution. Notwithstanding the foregoing, to the extent permitted
by applicable law and Rule 16b-3, the Committee may (i) permit a recipient of a
Nonqualified Stock Option to designate in writing during the participant's
lifetime a beneficiary to receive and exercise the participant's Nonqualified
Stock Options in the event of such participant's death (as provided in Section
5(f)), (ii) grant Nonqualified Stock Options that are transferable to the
immediate family or a family trust of the recipient, and (iii) modify existing
Nonqualified Stock Options to be transferable to the immediate family or a
family trust of the recipient. Any other attempt to transfer, assign, pledge,
hypothecate or otherwise dispose of any option under the Plan or of any right or
privilege conferred thereby, contrary to the provisions of the Plan shall be
null and void.

         9. Amendment, Suspension, or Termination of Plan. The Board of
Directors or the Committee may at any time suspend or terminate the Plan and may
amend it from time to time in such respects as the Board of Directors or the
Committee may deem advisable in order that options and rights granted hereunder
shall conform to any change in the law, or in any other respect which the Board
of Directors or the Committee may deem to be in the best interests of the
Company; provided, however, that no such amendment shall, without the
participant's consent, alter or impair any of the rights or obligations under
any option or stock appreciation rights theretofore granted to him under the
plan; and provided further that no such amendment shall, without shareholder
approval: increase the total number of shares available for grants of options or
rights under the Plan (except as provided by Section 7 hereof); or effect any
change to the Plan which is required to be approved by shareholder by law,
including, without limitation, the regulations promulgated under Section 422 and
Section 162(m) of the Code. In addition, the provisions of Section 5(g) relating
to the amount, price and timing of grants to members of the Committee shall not
be amended more than once every six (6) months other than to comport with
applicable changes to the Code, the Employee Retirement Income Security Act or
rules thereunder.

         10. Effective Date. The effective date of the Plan shall be December
31, 1987, provided, however, that the effective date of the Plan as it relates
to Incentive Stock Options shall be January 28, 1994 and no Incentive Stock
Option may be granted hereunder before January 28, 1994. If the January 28, 1994
amendment to and restatement of the Plan is not approved by the affirmative vote
of a majority of the Company's shareholders on or before January 28, 1995, then
the Plan shall remain in effect as it was last amended on June 14, 1990. The
failure of the shareholders to approve such amendment and restatement of the
Plan shall not, however, affect the validity, duration or any other terms and
conditions of options or rights granted prior to January 28, 1994, and shall
affect the terms and conditions of options or rights granted after that date
only to the extent required by law.

                                       9

<PAGE>

         11. Termination Date. Unless this Plan shall have been previously
terminated by the Committee, this Plan shall terminate on January 28, 2004,
except as to options and rights theretofore granted and outstanding under the
Plan at that date, and no stock option or stock appreciation rights shall be
granted after that date.

         12. Resale of Shares Purchased. All shares of stock purchased under
this Plan may be freely resold, subject to applicable state and federal
securities laws restricting their transfer. As a condition to exercise of an
option, the Company may impose various conditions, including a requirement that
the person exercising such option represent and warrant that, at the time of
such exercise, the shares of Common Stock being purchased are being purchased
for investment and not with a view to resale or distribution thereof. The resale
of shares purchased upon the exercise of Incentive Stock Options may, however,
cause the employee to lose certain tax benefits if the employee fails to comply
with the holding period requirements described in Section 5(e) hereof.

         13. Acceleration of Options. If the Company or its shareholders enter
into an agreement to dispose of all or substantially all of the assets or stock
of the Company by means of a sale, merger or other reorganization, liquidation,
or otherwise, any option granted pursuant to the Plan shall become immediately
exercisable with respect to the full number of shares subject to that option
during the period commencing as of the date of the agreement to dispose of all
or substantially all of the assets or stock of the Company and ending when the
disposition of assets or stock contemplated by that agreement is consummated or
the option is otherwise terminated in accordance with its provisions or the
provisions of the Plan, whichever occurs first; provided that no option shall be
immediately exercisable under this Section on account of any agreement of merger
or other reorganization where the shareholders of the Company immediately before
the consummation of the transaction will own 50% or more of the total combined
voting power of all classes of stock entitled to vote of the surviving entity
(whether the Company or some other entity) immediately after the consummation of
the transaction. In the event the transaction contemplated by the agreement
referred to in this section is not consummated, but rather is terminated,
canceled or expires, the options granted pursuant to the Plan shall thereafter
be treated as if that agreement had never been entered into.

         14. Written Notice Required; Tax Withholding. Any option or right
granted pursuant to the Plan shall be exercised when written notice of that
exercise by the participant has been received by the Company at its principal
office and, with respect to options, when such notice is received and full
payment for the shares with respect to which the option is exercised has been
received by the Company. Participant agrees that, to the extent required by law,
the Company shall withhold or require the payment by participant of any state,
federal or local taxes resulting from the exercise of an option or right,
provided however that to the extent permitted by law, the Committee may in its
discretion, permit some or all of such

                                       9
<PAGE>

withholding obligation to be satisfied by the delivery by the participant of, or
the retention by the Company of, shares of its Common Stock.

         15. Compliance with Securities Laws. Shares shall not be issued with
respect to any option or right granted under the Plan unless the exercise of
that option and the issuance and delivery of the shares pursuant thereto shall
comply with all relevant provisions of state and federal law, including without
limitation the Securities Act of 1933, as amended, the rules and regulations
promulgated thereunder and the requirements of any stock exchange or automated
quotation system upon which the shares may then be listed or traded, and shall
be further subject to the approval of counsel for the Company with respect to
such compliance. Further, each participant must consent to the imposition of a
legend on the certificate representing the shares of Common Stock issued upon
the exercise of the option or right restricting their transferability as may be
required by law, the option, or the Plan.

         16. Waiver of Vesting Restrictions by Committee. Notwithstanding any
provision of the Plan, in the event a participant dies, becomes disabled,
retires as an employee, officer or director of, or as an advisor or consultant
to, the Company, the Committee shall have the discretion to waive any vesting
restrictions on the retiree's options, or the early termination of any
Nonqualified Stock Options held by the retiree.

         17. Reports to Participants. The Company shall furnish to each
participant a copy of the annual report sent to the Company's shareholders. Upon
written request, the Company shall furnish to each participant a copy of its
most recent annual report and each quarterly report to shareholders issued since
the end of the Company's most recent fiscal year.

         18. No Employee Contract. The grant of an option or right under the
Plan shall not confer upon any participant any right with respect to
continuation of employment by, or the rendition of advisory or consulting
services to, the Company, nor shall it interfere in any way with the Company's
right to terminate the participant's employment or services at any time.

                                       10

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