Document:

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                                                                 REVISED 4-26-02

                                                                    EXHIBIT 10.1

                 1993 STOCK PLAN FOR EMPLOYEES AND DIRECTORS OF
                                LITTELFUSE, INC.

     1. Purpose. Littelfuse, Inc. (the "Corporation") desires to attract and
retain Employees and directors of outstanding talent. The 1993 Stock Plan for
Employees and Directors of Littelfuse, Inc. (the "Plan") affords eligible
Employees and directors the opportunity to acquire proprietary interests in the
Corporation and thereby encourages their highest levels of performance and
interest.

     2. Scope and Duration.

          a. Awards under the Plan may be granted in the following forms:

               (1) incentive stock options ("incentive stock options"), as
          provided in Section 422 of the Internal Revenue Code of 1986, as
          amended (the "Code"), and non-qualified stock options ("non-qualified
          options"; the term "options" includes incentive stock options and
          non-qualified options);

               (2) shares of Common Stock of the Corporation (the "Common
          Stock") which are restricted as provided in paragraph 10. ("restricted
          shares"); or

               (3) rights to acquire shares of Common Stock which are restricted
          as provided in paragraph 10. ("units" or "restricted units").

     Options may be accompanied by stock appreciation rights ("rights").

          b. The maximum aggregate number of shares of Common Stock as to which
     awards of options, restricted shares, units, or rights may be made from
     time to time under the Plan is 3,400,000 shares. Shares issued pursuant to
     this Plan may be in whole or in part, as the Board of Directors of the
     Corporation (the "Board of Directors") shall from time to time determine,
     authorized but unissued shares or issued shares reacquired by the
     Corporation. The maximum aggregate number of shares of Common Stock as to
     which awards of options, restricted shares, units, or rights may be made to
     any one individual during any calendar year shall be 100,000. If for any
     reason any shares as to which an option has been granted cease to be
     subject to purchase thereunder or any restricted shares or restricted units
     are forfeited to the Corporation, or to the extent that any awards under
     the Plan denominated in shares or units are paid or settled in cash or are
     surrendered upon the exercise of an option, then (unless the Plan shall
     have been terminated) such shares or units, and any shares surrendered to
     the Corporation upon such exercise, shall become available for subsequent
     awards under the Plan; provided, however, that shares surrendered by the
     Corporation upon the exercise of an incentive stock option and shares
     subject to an incentive stock option surrendered upon the exercise

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     of a right shall not be available for subsequent award of additional stock
     options under the Plan.

          c. No incentive stock option shall be granted hereunder after February
     11, 2003.

     3. Administration.

          a. The Plan shall be administered by the Stock Option Committee or any
     successor thereto of the Board of Directors of the Corporation or by such
     other committee (the "Committee") as shall be determined by the Board of
     Directors. The Committee shall consist of not less than two members of the
     Board of Directors, each of whom shall qualify as a "disinterested person"
     to administer the Plan as contemplated by Rule 16b-3, as amended, or other
     applicable rules under Section 16(b) of the Securities Exchange Act of
     1934, as amended (the "Exchange Act").

          b. The Committee shall have plenary authority in its sole discretion,
     subject to and not inconsistent with the express provisions of this Plan:

               (1) to grant options, to determine the purchase price of the
          Common Stock covered by each option, the term of each option, the
          persons to whom, and the time or times at which, options shall be
          granted and the number of shares to be covered by each option;

               (2) to designate options as incentive stock options or
          non-qualified options and to determine which options shall be
          accompanied by rights;

               (3) to grant rights and to determine the purchase price of the
          Common Stock covered by each right or related option, the term of each
          right or related option, the Employees and Eligible Directors (as such
          terms are defined below) to whom, and the time or times at which,
          rights or related options shall be granted and the number of shares to
          be covered by each right or related option;

               (4) to grant restricted shares and restricted units and to
          determine the term of the Restricted Period (as defined in paragraph
          10.) and other conditions applicable to such shares or units, the
          Employees to whom, and the time or times at which, restricted shares
          or restricted units shall be granted and the number of shares or units
          to be covered by each grant;

               (5) to interpret the Plan;

               (6) to prescribe, amend and rescind rules and regulations
          relating to the Plan;

               (7) to determine the terms and provisions of the option and
          rights agreements (which need not be identical) and the restricted
          share and restricted

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          unit agreements (which need not be identical) entered into in
          connection with awards under the Plan;

     and to make all other determinations deemed necessary or advisable for the
     administration of the Plan.

          Without limiting the foregoing, the Committee shall have plenary
     authority in its sole discretion, subject to, and not inconsistent with,
     the express provisions of the Plan, to:

               (1) select Participants (as defined below) for participation in
          the Plan;

               (2) determine the timing, price, and amount of any grant or award
          under the Plan to any Participant; and

               (3) either

                    (a) determine the form in which payment of any right granted
               or awarded under the Plan will be made (i.e., cash, securities,
               or any combination thereof), or

                    (b) approve the election of the Participant to receive cash
               in whole or in part in settlement of any right granted or awarded
               under the Plan.

          As used in the Plan, the following terms shall have the following
     meanings: the term "Littelfuse Officer" shall mean an officer (other than
     an assistant officer) of the Corporation or any of its Subsidiaries and any
     other person who may be designated as any executive officer by the Board of
     Directors of the Corporation; the term "Participant" shall mean an Employee
     or Eligible Director; the term "Employee" shall mean a full-time,
     non-union, salaried employee of the Corporation or any of its Subsidiaries;
     the term "Eligible Director" shall mean any individual who is a member of
     the Board of Directors of the Corporation who is not then an Employee or a
     beneficial owner, either directly or indirectly, of more than ten percent
     (10%) of the Common Stock of the Corporation; and the term "Subsidiaries"
     shall mean all corporations in which the Corporation owns, directly or
     indirectly, more than fifty percent (50%) of the total voting power of all
     classes of stock.

          c. The Committee may delegate to one or more of its members or to one
     or more agents such administrative duties as it may deem advisable, and the
     Committee or any person to whom it has delegated duties as aforesaid may
     employ one or more persons to render advice with respect to any
     responsibility the Committee or such person may have under the Plan;
     provided, that the Committee may not delegate any duties to a member of the
     Board of Directors who, if elected to serve on the Committee, would not
     qualify as a "disinterested person" to administer the Plan as contemplated
     by Rule 16b-3, as amended, or other applicable rules under the Exchange
     Act. The Committee may

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     employ attorneys, consultants, accountants, or other persons, and the
     Committee, the Corporation, its Subsidiaries, and their respective officers
     and directors shall be entitled to rely upon the advice, opinions or
     valuations of any such persons. All actions taken and all interpretations
     and determinations made by the Committee in good faith shall be final and
     binding upon all Participants, the Corporation, its Subsidiaries, and all
     other interested persons. No member or agent of the Committee shall be
     personally liable for any action, determination, or interpretation made in
     good faith with respect to the Plan or awards made hereunder, and all
     members and agents of the Committee shall be fully protected by the
     Corporation in respect of any such action, determination, or
     interpretation.

     4. Eligibility; Factors to Be Considered in Making Awards.

          a. Persons eligible to participate in this Plan shall include all
     Employees of the Corporation and all Eligible Directors; provided, however,
     that Eligible Directors shall only be eligible to receive grants of options
     pursuant to subparagraph 4.e.

          b. In determining the Employees to whom awards shall be granted and
     the number of shares or units to be covered by each award, the Committee
     shall take into account the nature of the Employee's duties, his or her
     present and potential contributions to the success of the Corporation or
     any of its Subsidiaries and such other factors as it shall deem relevant in
     connection with accomplishing the purposes of the Plan.

          c. Awards may be granted singly, in combination, or in tandem and may
     be made in combination or in tandem with or in replacement of, or as
     alternatives to, awards or grants under any other employee plan maintained
     by the Corporation or any of its Subsidiaries. An award made in the form of
     a unit or a right may provide, in the discretion of the Committee, for

               (1) the crediting to the account of, or the current payment to,
          each Employee who has such an award of an amount equal to the cash
          dividends and stock dividends paid by the Corporation upon one share
          of Common Stock for each restricted unit or share of Common Stock
          subject to a right included in such award ("Dividend Equivalents"), or

               (2) the deemed reinvestment of such Dividend Equivalents and
          stock dividends in shares of Common Stock, which deemed reinvestment
          shall be deemed to be made in accordance with the provisions of
          paragraph 10., and credited to the Employee's account ("Additional
          Deemed Shares").

     Such Additional Deemed Shares shall be subject to the same restrictions
     (including but not limited to provisions regarding forfeitures) applicable
     with respect to the unit or right with respect to which such credit is
     made. Dividend Equivalents not deemed reinvested as stock dividends shall
     not be subject to forfeiture, and may bear amounts equivalent to interest
     or cash dividends as the Committee may determine.

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          d. The Committee, in its sole discretion, may grant to an Employee who
     has been granted an award under the Plan or any other employee plan
     maintained by the Corporation or any of its Subsidiaries, or any successor
     thereto, in exchange for the surrender and cancellation of such award, a
     new award in the same or a different form and containing such terms,
     including, without limitation, a price which is different (either higher or
     lower) than any price provided in the award so surrendered and cancelled,
     as the Committee may deem appropriate.

          e. Each Eligible Director shall be automatically granted a
     non-qualified option to purchase 2,000 shares of Common Stock, which option
     shall be granted on the effective date of the Plan (hereinafter referred to
     as the "Initial Eligible Director Stock Options"). "Commencing in 1995,
     each Eligible Director shall be automatically granted a non-qualified
     option to purchase 2,200 shares of Common Stock, commencing in 1997, each
     Eligible Director shall be automatically granted a non-qualified option to
     purchase 2,500 shares of Common Stock, and commencing in 1998, each
     Eligible Director shall be automatically granted a non-qualified option to
     purchase 5,000 shares of Common Stock, which option shall be granted on the
     date of the first meeting of the Board of Directors of the Corporation
     following each annual meeting of the stockholders of the Corporation
     (hereinafter sometimes referred to as the "Annual Eligible Director Stock
     Options" and sometimes, together with the Initial Eligible Director Stock
     Options, as the "Eligible Director Stock Options")." The number of Annual
     Eligible Director Stock Options to be granted as of the date of any such
     meeting of the Board of Directors shall be proportionately adjusted to
     reflect any stock splits, stock dividends, recapitalizations or similar
     transactions causing an increase or decrease in the number of issued and
     outstanding shares of Common Stock which have occurred since the date of
     the most recent grant of Annual Eligible Director Stock Options. Any
     Eligible Director may waive his or her right to be granted Eligible
     Director Stock Options. In the event that the granting of any Annual
     Eligible Director Stock Options would cause the 3,400,000 share limitation
     contained in Section 2.b. hereof to be exceeded (after taking into account
     any waivers by Eligible Directors to accept some or all of the Annual
     Eligible Director Stock Options to which he or she would otherwise be
     entitled), the total number of Annual Eligible Director Stock Options then
     to be granted shall be reduced to a number which would cause said 3,400,000
     share limitation not to be exceeded and the amount of non-qualified options
     to be granted to each Eligible Director who has not waived his or her right
     to receive Annual Eligible Director Stock Options shall be proportionately
     reduced. The purchase price for the Common Stock covered by each Eligible
     Director Stock Option shall be the fair market value (as defined below) of
     the Common Stock on the date the Eligible Director Stock Option is granted,
     payable at the time and in the manner provided in Section 5.b. below. Each
     Eligible Director Stock Option granted to an Eligible Director shall be
     exercisable as follows: with respect to twenty-percent (20%) of the Common
     Stock covered thereby during the ten (10) year period commencing one (1)
     year following the date of grant; with respect to an additional twenty
     percent (20%) of the Common Stock covered thereby during the ten (10) year
     period commencing two (2) years following the date of grant; with respect
     to an additional twenty percent (20%) of the Common Stock covered thereby
     during the ten (10) year period commencing three (3) years following the
     date of grant; with respect to an additional twenty percent (20%) of

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     the Common Stock covered thereby during the ten (10) year period commencing
     four (4) years following the date of grant; and with respect to the
     remaining twenty percent (20%) of the Common Stock covered thereby during
     the ten (10) year period commencing five (5) years following the date of
     grant. The foregoing formula can only be amended to the extent permitted by
     Rule 16b-3, as amended, under the Exchange Act.

     5. Option Price.

          a. The purchase price of the Common Stock covered by each option
     awarded to an Employee shall be determined by the Committee; provided,
     however, that in the case of incentive stock options, the purchase price
     shall not be less than 100% of the fair market value of the Common Stock on
     the date the option is granted. Fair market value shall mean,

               (1) if the Common Stock is duly listed on a national securities
          exchange or on The Nasdaq Stock Market("Nasdaq") ("Duly Listed"), the
          closing price of the Common Stock for the date on which the option is
          granted, or, if there are no sales on such date, on the next preceding
          day on which there were sales, or

               (2) if the Common Stock is not Duly Listed, the fair market value
          of the Common Stock for the date on which the option is granted, as
          determined by the Committee in good faith. Such price shall be subject
          to adjustment as provided in paragraph 13.

     The price so determined shall also be applicable in connection with the
     exercise of any related right.

          b. The purchase price of the shares as to which an option is exercised
     shall be paid in full at the time of exercise; payment may be made in cash,
     which may be paid by check or other instrument acceptable to the
     Corporation, or, if permitted by the Committee, in shares of the Common
     Stock, valued at the closing price of the Common Stock as reported on
     either a national securities exchange or NASDAQ for the date of exercise,
     or if there were no sales on such date, on the next preceding day on which
     there were sales (or, if the Common Stock is not Duly Listed, the fair
     market value of the Common Stock on the date of exercise, as determined by
     the Committee in good faith), or, if permitted by the Committee and subject
     to such terms and conditions as it may determine, by surrender of
     outstanding awards under the Plan. In addition, the Participant shall pay
     any amount necessary to satisfy applicable federal, state, or local tax
     requirements promptly upon notification of the amount due. The Committee
     may permit such amount to be paid in shares of Common Stock previously
     owned by the Participant, or a portion of the shares of Common Stock that
     otherwise would be distributed to such Participant upon exercise of the
     option, or a combination of cash and shares of such Common Stock.

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     6. Term of Options. The term of each incentive stock option granted under
the Plan shall be such period of time as the Committee shall determine, but not
more than ten years from the date of grant, subject to earlier termination as
provided in paragraphs 11. and 12. The term of each non-qualified option granted
under the Plan to Employees shall be such period of time as the Committee shall
determine, subject to earlier termination as provided in paragraphs 11. and 12.

     7. Exercise of Options.

          a. Each option shall become exercisable, in whole or in part, as the
     Committee shall determine; provided, however, that the Committee may also,
     in its discretion, accelerate the exercisability of any option in whole or
     in part at any time.

          b. Subject to the provisions of the Plan and unless otherwise provided
     in the option agreement, an option granted under the Plan shall become
     exercisable in full at the earliest of the Participant's death, Eligible
     Retirement (as defined below), Total Disability, or a Change in Control (as
     defined in paragraph 12). For purposes of this Plan, the term "Eligible
     Retirement" shall mean (1) the date upon which an Employee, having attained
     an age of not less than sixty-two, terminates his employment with the
     Corporation and its Subsidiaries, provided that such Employee has been
     employed by the Corporation or any of its Subsidiaries or any corporation
     of which the Corporation or any of its Subsidiaries is the successor for a
     period of not less than five (5) years prior to such termination, or (2)
     the date upon which an Eligible Director, having attained the age of not
     less than sixty-two, terminates his service as a director of the
     Corporation.

          c. An option may be exercised, at any time or from time to time
     (subject, in the case of an incentive stock option, to such restrictions as
     may be imposed by the Code), as to any or all full shares as to which the
     option has become exercisable; provided, however, that an option may not be
     exercised at any one time as to less than 100 shares or less than the
     number of shares as to which the option is then exercisable, if that number
     is less than 100 shares.

          d. Subject to the provisions of paragraphs 11. and 12., in the case of
     incentive stock options, no option may be exercised at any time unless the
     holder thereof is then an Employee.

          e. Upon the exercise of an option or portion thereof in accordance
     with the Plan, the option agreement and such rules and regulations as may
     be established by the Committee, the holder thereof shall have the rights
     of a shareholder with respect to the shares issued as a result of such
     exercise.

     8. Award and Exercise of Rights.

          a. A right may be awarded by the Committee in connection with any
     option granted under the Plan, either at the time the option is granted or
     thereafter at any time prior to the exercise, termination or expiration of
     the option ("tandem right"), or

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     separately ("freestanding right"). Each tandem right shall be subject to
     the same terms and conditions as the related option and shall be
     exercisable only to the extent the option is exercisable. No right shall be
     exercisable for cash by a Littelfuse Officer within six (6) months from the
     date the right is awarded (and then, as to a tandem right, only to the
     extent the related option is exercisable) or, if the exercise price of the
     right is not fixed on the date of the award, within six (6) months from the
     date when the exercise price is so fixed, and in any case only when the
     Littelfuse Officer's election to receive cash in full or partial
     satisfaction of the right, as well as the Littelfuse Officer's exercise of
     the right for cash, is made during a Quarterly Window Period (as defined
     below); provided, that a right may be exercised by a Littelfuse Officer for
     cash outside a Quarterly Window Period if the date of exercise is automatic
     or has been fixed in advance under the Plan and is outside the Littelfuse
     Officer's control. The term "Quarterly Window Period" shall mean the period
     beginning on the third business day following the date of release of each
     of the Corporation's quarterly and annual summary statements of sales and
     earnings and ending on the twelfth business day following such release; and
     the date of any such release shall be deemed to be the date it either:

               (1) appears on a wire service,

               (2) appears on a financial news service,

               (3) appears in a newspaper of general circulation, or

               (4) is otherwise made publicly available, for example, by press
          releases to a wire service, financial news service, or newspapers or
          general circulation.

          b. A right shall entitle the Employee upon exercise in accordance with
     its terms (subject, in the case of a tandem right, to the surrender
     unexercised of the related option or any portion or portions thereof which
     the Employee from time to time determines to surrender for this purpose) to
     receive, subject to the provisions of the Plan and such rules and
     regulations as from time to time may be established by the Committee, a
     payment having an aggregate value equal to the product of

               (1) the excess of

                    (a) the fair market value on the exercise date of one share
               of Common Stock over

                    (b) the exercise price per share, in the case of a tandem
               right, or the price per share specified in the terms of the
               right, in the case of a freestanding right, multiplied by

               (2) the number of shares with respect to which the right shall
          have been exercised.

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     The payment may be made only in cash, subject to subparagraph 8.a. hereof.

          c. The exercise price per share specified in a right shall be as
     determined by the Committee, provided that, in the case of a tandem right
     accompanying an incentive stock option, the exercise price shall be not
     less than fair market value of the Common Stock subject to such option on
     the date of grant.

          d. If upon the exercise of a right the Employee is to receive a
     portion of the payment in shares of Common Stock, the number of shares
     shall be determined by dividing such portion by the fair market value of a
     share on the exercise date. The number of shares received may not exceed
     the number of shares covered by any option or portion thereof surrendered.
     Cash will be paid in lieu of any fractional share.

          e. No payment will be required from an Employee upon exercise of a
     right, except that any amount necessary to satisfy applicable federal,
     state, or local tax requirements shall be withheld or paid promptly by the
     Employee upon notification of the amount due and prior to or concurrently
     with delivery of cash or a certificate representing shares. The Committee
     may permit such amount to be paid in shares of Common Stock previously
     owned by the Employee, or a portion of the shares of Common Stock that
     otherwise would be distributed to such Employee upon exercise of the right,
     or a combination of cash and shares of such Common Stock.

          f. The fair market value of a share shall mean the closing price of
     the Common Stock as reported on either a national securities exchange or
     NASDAQ for the date of exercise, or if there are no sales on such date, on
     the next preceding day on which there were sales; provided, however, that
     in the case of rights that relate to an incentive stock option, the
     Committee may prescribe, by rules of general application, such other
     measure of fair market value as the Committee may in its discretion
     determine but not in excess of the maximum amount that would be permissible
     under Section 422 of the Code without disqualifying such option under
     Section 422.

          g. Upon exercise of a tandem right, the number of shares subject to
     exercise under the related option shall automatically be reduced by the
     number of shares represented by the option or portion thereof surrendered.

          h. A right related to an incentive stock option may only be exercised
     if the fair market value of a share of Common Stock on the exercise date
     exceeds the option price.

     9. Non-Transferability of Options, Rights, and Units; Holding Periods for
Littelfuse Officers and Eligible Directors.

          a. Options, rights, and units granted under the Plan shall not be
     transferable by the grantee thereof otherwise than by will or the laws of
     descent and distribution; provided, however, that

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               (1) the designation of a beneficiary by a Participant shall not
          constitute a transfer, and

               (2) options and rights may be exercised during the lifetime of
          the Participant only by the Participant or, unless such exercise would
          disqualify an option as an incentive stock option, by the
          Participant's guardian or legal representative.

          b. Notwithstanding anything contained in the Plan to the contrary,

               (1) any shares of Common Stock awarded hereunder to a Littelfuse
          Officer may not be transferred or disposed of for at least six (6)
          months from the date of award thereof,

               (2) any option, right, or unit awarded hereunder to a Littelfuse
          Officer or Eligible Director, or the shares of Common Stock into which
          any such option, right or unit is exercised or converted, may not be
          transferred or disposed of for at least six (6) months following the
          date of acquisition by the Littelfuse Officer or Eligible Director of
          such option, right, or unit, and

               (3) the Committee shall take no action whose effect would cause a
          Littelfuse Officer or Eligible Director to be in violation of clause
          (1) or (2) above.

          c. Notwithstanding the foregoing and anything else contained in the
     Plan to the contrary, up to 25% of the number of non-qualified options
     (said percentage to be calculated using as the nominator the sum of the
     amount of outstanding and unexercised non-qualified options proposed to be
     transferred plus the number of non-qualified options previously transferred
     by said Participant within the previous four years and using as the
     denominator the aggregate number of non-qualified options granted to said
     Participant within the previous four years) may be transferred (but only on
     a gift basis) by a Participant to an immediate family member of the
     Participant or a trust which has as beneficiaries at the time of transfer
     only the Participant and/or immediate family members of the Participant. As
     used herein, the term "immediate family members" shall mean the spouse of
     the Participant, children of the Participant and their spouses,
     grandchildren of the Participant and their spouses and great-grandchildren
     of the Participant and their spouses (hereinafter referred to as a
     "Permitted Transferee"). All transferred non-qualified options shall remain
     subject to all of the provisions of the Plan and any agreement between the
     Participant and the Corporation pertaining thereto, including, without
     limitation, all vesting, termination and forfeiture provisions, and the
     rights and obligations of a transferee with respect to a non-qualified
     option transferred thereto shall be determined pursuant to the provisions
     of the Plan and any such agreement as if the Participant remained the
     holder thereof. In no event shall any transferee of a transferred
     non-qualified option be entitled to transfer such non-qualified option
     except pursuant to the laws of descent and distribution. Any transfer of
     non-qualified options made pursuant to this subsection (c) must be made
     pursuant to legal documentation provided by the Corporation, which legal
     documentation may contain such terms and

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     conditions as the Corporation, in its discretion, deems appropriate, and
     shall be subject to verification by the Corporation or its legal counsel
     that the proposed transferee is a Permitted Transferee. Notwithstanding the
     foregoing, the Committee, in its absolute discretion, may restrict or deny
     the transfer of non-qualified options with respect to one or more
     Participants. The provisions of this subsection (c) shall be deemed to
     override and control over any provisions in any Non-Qualified Stock Option
     Agreement between the Corporation and a Participant which is dated before
     January 1, 1998, to the extent such provisions would not allow a transfer
     of non-qualified options pursuant to the provisions of this subsection (c).

     10. Award and Delivery of Restricted Shares or Restricted Units.

          a. At the time an award of restricted shares or restricted units is
     made, the Committee shall establish a period of time (the "Restricted
     Period") applicable to such award. Each award of restricted shares or
     restricted units may have a different Restricted Period. The Committee may,
     in its sole discretion, at the time an award is made, prescribe conditions
     for the incremental lapse of restrictions during the Restricted Period and
     for the lapse or termination of restrictions upon the satisfaction of other
     conditions in addition to or other than the expiration of the Restricted
     Period with respect to all or any portion of the restricted shares or
     restricted units. Subject to paragraph 9., the Committee may also, in its
     sole discretion shorten, or terminate the Restricted Period, or waive any
     conditions for the lapse or termination of restrictions with respect to all
     or any portion of the restricted shares or restricted units.
     Notwithstanding the foregoing but subject to paragraph 9., all restrictions
     shall lapse or terminate with respect to all restricted shares or
     restricted units upon the earliest to occur of an Employee's Eligible
     Retirement, a Change in Control, death, or Total Disability.

          b. (1) Unless such shares are issued as uncertificated shares pursuant
     to subparagraph 10.b.(2)(a) below, a stock certificate representing the
     number of restricted shares granted to an Employee shall be registered in
     the Employee's name but shall be held in custody by the Corporation or an
     agent therefor for the Employee's account. The Employee shall generally
     have the rights and privileges of a shareholder as to such restricted
     shares, including the right to vote such restricted shares, except that,
     subject to the provisions of paragraphs 11. and 12., the following
     restrictions shall apply:

               (a) the Employee shall not be entitled to delivery of the
          certificate until the expiration or termination of the Restricted
          Period and the satisfaction of any other conditions prescribed by the
          Committee;

               (b) none of the restricted shares may be sold, transferred,
          assigned, pledged, or otherwise encumbered or disposed of during the
          Restricted Period and until the satisfaction of any other conditions
          prescribed by the Committee; and

               (c) all of the restricted shares shall be forfeited and all
          rights of the Employee to such restricted shares shall terminate
          without further obligation on the part of the Corporation unless the
          Employee has remained an Employee until

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          the expiration or termination of the Restricted Period and the
          satisfaction of any other conditions prescribed by the Committee
          applicable to such restricted shares. At the discretion of the
          Committee,

                    (i) cash and stock dividends with respect to the restricted
               shares may be either currently paid or withheld by the
               Corporation for the Employee's account, and interest may be paid
               on the amount of cash dividends withheld at a rate and subject to
               such terms as determined by the Committee, or

                    (ii) the Committee may require that all cash dividends be
               applied to the purchase of additional shares of Common Stock, and
               such purchased shares, together with any stock dividends related
               to such restricted shares (such purchased shares and stock
               dividends are hereafter referred to as "Additional Restricted
               Shares") shall be treated as Additional Shares, subject to
               forfeiture on the same terms and conditions as the original grant
               of the restricted shares to the Employee.

          (2) The purchase of any such Additional Restricted Shares shall be
     made either

               (a) through a dividend reinvestment plan that may be established
          by the Corporation which satisfies the requirements of Rule 16b-2
          under the Exchange Act, in which event the price of such shares so
          purchased through the reinvestment of dividends shall be as determined
          in accordance with the provisions of that plan and no stock
          certificate representing such Additional Restricted Shares shall be in
          the Employee's name, or

               (b) in accordance with such alternative procedure as is
          determined by the Committee in which event the price of such purchased
          shares shall be

                         (i) if the Common Stock is Duly Listed, the closing
                    price of the Common Stock as reported on either a national
                    securities exchange or NASDAQ for the date on which such
                    purchase is made, or if there were no sales on such date,
                    the next preceding day on which there were sales, or

                         (ii) if the Common Stock is not Duly Listed, the fair
                    market value of the Common Stock for the date on which such
                    purchase is made, as determined by the Committee in good
                    faith. In the event that the Committee shall not require
                    reinvestment, cash, or stock dividends so withheld by the
                    Committee shall not be subject to forfeiture. Upon the
                    forfeiture of any restricted shares (including any
                    Additional Restricted Shares), such forfeited shares shall
                    be transferred to the Corporation without further action by
                    the Employee. The Employee shall have the same rights and
                    privileges, and be subject to the same restrictions, with
                    respect to any shares received pursuant to paragraph 13.

                                      -12-
<PAGE>
          c. Upon the expiration or termination of the Restricted Period and the
     satisfaction of any other conditions prescribed by the Committee or at such
     earlier time as provided for in paragraphs 11. and 12., the restrictions
     applicable to the restricted shares (including Additional Restricted
     Shares) shall lapse and a stock certificate for the number of restricted
     shares (including any Additional Restricted Shares) with respect to which
     the restrictions have lapsed shall be delivered, free of all such
     restrictions, except any that may be imposed by law, to the Employee or the
     Employee's beneficiary or estate, as the case may be. The Corporation shall
     not be required to deliver any fractional share of Common Stock but will
     pay, in lieu thereof, the fair market value (determined as of the date the
     restrictions lapse) of such fractional share to the Employee or the
     Employee's beneficiary or estate, as the case may be. No payment will be
     required from the Employee upon the issuance or delivery of any restricted
     shares, except that any amount necessary to satisfy applicable federal,
     state, or local tax requirements shall be withheld or paid promptly upon
     notification of the amount due and prior to or concurrently with the
     issuance or delivery of a certificate representing such shares. The
     Committee may permit such amount to be paid in shares of Common Stock
     previously owned by the Employee, or a portion of the shares of Common
     Stock that otherwise would be distributed to such Employee upon the lapse
     of the restrictions applicable to the restricted shares, or a combination
     of cash and shares of such Common Stock.

          d. In the case of an award of restricted units, no shares of Common
     Stock shall be issued at the time the award is made, and the Corporation
     shall not be required to set aside a fund for the payment of any such
     award.

          e. (1) Upon the expiration or termination of the Restricted Period and
     the satisfaction of any other conditions prescribed by the Committee or at
     such earlier time as provided in paragraphs 11. and 12., the Corporation
     shall deliver to the Employee or the Employee's beneficiary or estate, as
     the case may be, one share of Common Stock for each restricted unit with
     respect to which the restrictions have lapsed ("vested unit").

          (2) In addition, if the Committee has not required the deemed
     reinvestment of such Dividend Equivalents pursuant to paragraph 4., at such
     time the Corporation shall deliver to the Employee cash equal to any
     Dividend Equivalents or stock dividends credited with respect to each such
     vested unit and, to the extent determined by the Committee, the interest
     thereupon. However, if the Committee has required such deemed reinvestment
     in connection with such restricted unit, in addition to the stock
     represented by such vested unit, the Corporation shall deliver the number
     of Additional Deemed Shares credited to the Employee with respect to such
     vested unit.

          (3) Notwithstanding the foregoing, the Committee may, in its sole
     discretion, elect to pay cash or part cash and part Common Stock in lieu of
     delivering only Common Stock for the vested units and related Additional
     Deemed Shares. If a cash payment is made in lieu of delivering Common
     Stock, the amount of such cash payment shall be equal to

                                      -13-
<PAGE>
               (a) if the Common Stock is Duly Listed, the closing price of the
          Common Stock as reported on either a national securities exchange or
          NASDAQ for the date on which the Restricted Period lapsed with respect
          to such vested unit and related Additional Deemed Shares (the "Lapse
          Date") or, if there are no sales on such date, on the next preceding
          day on which there were sales, or

               (b) if the Common Stock is not Duly Listed, the fair market value
          of the Common Stock for the Lapse Date, as determined by the Committee
          in good faith.

          f. No payment will be required from the Employee upon the award of any
     restricted units, the crediting or payment of any Dividend Equivalents or
     Additional Deemed Shares, or the delivery of Common Stock or the payment of
     cash in respect of vested units, except that any amount necessary to
     satisfy applicable federal, state, or local tax requirements shall be
     withheld or paid promptly upon notification of the amount due. The
     Committee may permit such amount to be paid in shares of Common Stock
     previously owned by the Employee, or a portion of the shares of Common
     Stock that otherwise would be distributed to such Employee in respect of
     vested units and Additional Deemed Shares, or a combination of cash and
     shares of such Common Stock.

          g. In addition, the Committee shall have the right, in its absolute
     discretion, upon the vesting of any restricted shares (including Additional
     Restricted Shares) and restricted units (including Additional Deemed
     Shares) to award cash compensation to the Employee for the purpose of
     aiding the Employee in the payment of any and all federal, state, and local
     income taxes payable as a result of such vesting, if the performance of the
     Corporation during the Restricted Period meets such criteria as then or
     theretofore determined by the Committee.

     11. Termination of Employment or Service. In the event that the employment
of an Employee or the service as a director of an Eligible Director to whom an
option or right has been granted under the Plan shall be terminated for any
reason other than as set forth in paragraph 12., such option or right may,
subject to the provisions of the Plan, be exercised (but only to the extent that
the Employee or an Eligible Director was entitled to do so at the termination of
his employment or service as a director, as the case may be) at any time within
three (3) months after such termination, but in no case later than the date on
which the option or right terminates.

     Unless otherwise determined by the Committee, if an Employee to whom
restricted shares or restricted units have been granted ceases to be an
Employee, for any reason other than as set forth in paragraph 12., prior to the
end of the Restricted Period and the satisfaction of any other conditions
prescribed by the Committee, the Employee shall immediately forfeit all
restricted shares and restricted units, including all Additional Restricted
Shares or Additional Deemed Shares related thereto.

     Any option, right, restricted share or restricted unit agreement, or any
rules and regulations relating to the Plan, may contain such provisions as the
Committee shall approve with reference to the determination of the date
employment terminates and the effect of leaves of

                                      -14-
<PAGE>

absence. Any such rules and regulations with reference to any option agreement
shall be consistent with the provisions of the Code and any applicable rules and
regulations thereunder. Nothing in the Plan or in any award granted pursuant to
the Plan shall confer upon any Participant any right to continue in the employ
or service of the Corporation or any of its Subsidiaries or interfere in any way
with the right of the Corporation or its Subsidiaries to terminate such
employment or service at any time.

     11A. Non-competition Forfeiture Provisions. Notwithstanding anything else
to the contrary contained in the Plan, in the event that an Employee shall
accept employment with, or become employed by, a Competitor (as such term is
hereinafter defined) as an officer, employee, consultant, agent, representative
or otherwise: (i) all unexercised Section 11A Options (as such term is
hereinafter defined) then held by such Employee shall be deemed to be cancelled
and forfeited and such Employee shall not have any further rights whatsoever
with respect thereto; and (ii) the Employee shall immediately pay to the
Corporation an amount equal to the product of (x) the aggregate number of shares
of Common Stock respecting which such Employee exercised Section 11A Options at
any time during the 180 days preceding the earlier of the date such Employee
accepted or commenced employment with a Competitor and (y) the aggregate
differences between the exercise prices of any such Section 11A Options and the
respective fair market values (as such term is defined in Section 5(a) hereof)
of the Common Stock on the respective dates of exercise of such Section 11A
Options (the "Forfeited Options Gain"). As used herein, the term "Section 11A
Options" shall mean options which are granted or awarded hereunder on or after
April 28, 2000. As used herein, the term "Competitor" shall mean any person or
entity, or any affiliate thereof, which manufactures, distributes or sells
circuit protection products in competition with the Corporation or any of its
Subsidiaries. The Corporation may require an Employee, as a condition to his or
her exercise of a Section 11A Option, to acknowledge in writing at the time of
any such exercise that he or she has not accepted employment with, or is not
employed by, a Competitor. In the event that an Employee shall fail to
immediately pay to the Corporation the Forfeited Options Gain, the Employee
shall be liable to the Corporation for all costs, expenses and attorneys' fees
incurred by the Corporation in connection with collecting the Forfeited Options
Gain from the Employee, plus interest at a per annum rate equal to the lower of
12% or the highest rate permitted by applicable law.

     12. Eligible Retirement, Death, or Total Disability of Employee or Eligible
Director, Change in Control. If any Employee or Eligible Director to whom an
option, right, restricted share, or restricted unit has been granted under the
Plan shall die or suffer a Total Disability while employed by the Corporation or
in the service of the Corporation as a director, if any Employee terminates his
employment or any Eligible Director terminates his service as a director
pursuant to an Eligible Retirement, or if a Change in Control should occur, such
option or right may be exercised as set forth herein, or such restricted shares
or restricted unit shall be deemed to be vested, whether or not the Participant
was otherwise entitled at such time to exercise such option or right, or be
treated as vested in such share or unit. Subject to the restrictions otherwise
set forth in the Plan, such option or right shall be exercisable by the
Participant, a legatee or legatees of the Participant under the Participant's
last will, or by the Participant's personal representatives or distributees,
whichever is applicable, at the earlier of

                                      -15-
<PAGE>

          a. the date on which the option or right terminates in accordance with
     the term of grant, or

          b. any time prior to the expiration of three (3) months after the date
     of such Participant's Eligible Retirement, his termination due to total
     disability, or the occurrence of a Change in Control, or, if applicable,
     within one year of such Participant's death.

For purposes of this paragraph 12., "Total Disability" is defined as the
permanent inability of a Participant, as a result of accident or sickness, to
perform any and every duty pertaining to such Participant's occupation or
employment for which the Participant is suited by reason of the Participant's
previous training, education, and experience.

     A "Change in Control" shall be deemed to have occurred upon

          a. a business combination, including a merger or consolidation, of the
     Corporation and the shareholders of the Corporation prior to the
     combination do not continue to own, directly or indirectly, more than
     fifty-one percent (51%) of the equity of the combined entity;

          b. a sale, transfer, or other disposition in one or more transactions
     (other than in transactions in the ordinary course of business or in the
     nature of a financing) of the assets or earning power aggregating more than
     forty-five percent (45%) of the assets or operating revenues of the
     Corporation to any person or affiliated or associated group of persons (as
     defined by Rule 12b-2 of the Exchange Act in effect as of the date hereof);

          c. the liquidation of the Corporation;

          d. one or more transactions which result in the acquisition by any
     person or associated group of persons (other than the Corporation, any
     employee benefit plan whose beneficiaries are Employees of the Corporation
     or any of its Subsidiaries, or TCW Special Credits or any of its
     affiliates) of the beneficial ownership (as defined in Rule 13d-3 of the
     Exchange Act, in effect as of the date hereof) of forty percent (40%) or
     more of the Common Stock of the Corporation, securities representing forty
     percent (40%) or more of the combined voting power of the voting securities
     of the Corporation which affiliated persons owned less than forty percent
     (40%) prior to such transaction or transactions; or

          e. the election or appointment, within a twelve (12) month period, of
     any person or affiliated or associated group, or its or their nominees, to
     the Board of Directors of the Corporation, such that such persons or
     nominees, when elected or appointed, constitute a majority of the Board of
     Directors of the Corporation and whose appointment or election was not
     approved by a majority of those persons who were directors at the beginning
     of such period or whose election or appointment was made at the request of
     an Acquiring Person.

                                      -16-
<PAGE>

     An "Acquiring Person" is any person who, or which, together with all
affiliates or associates of such person, is the beneficial owner of twenty
percent (20%) or more of the Common Stock of the Corporation then outstanding,
except that an Acquiring Person does not include the Corporation or any employee
benefit plan of the Corporation or any of its Subsidiaries or any person holding
Common Stock of the Corporation for or pursuant to such plan. For the purpose of
determining who is an Acquiring Person, the percentage of the outstanding shares
of the Common Stock of which a person is a beneficial owner shall be calculated
in accordance with Rule 13d-e of the Exchange Act.

     13. Adjustments Upon Changes in Capitalization, etc. Notwithstanding any
other provision of the Plan, the Committee may at any time make or provide for
such adjustments to the Plan, to the number and class of shares available
thereunder or to any outstanding options, restricted shares, or restricted units
as it shall deem appropriate to prevent dilution or enlargement of rights,
including adjustments in the event of distributions to holders of Common Stock
other than a normal cash dividend, changes in the outstanding Common Stock by
reason of stock dividends, split-ups, recapitalizations, mergers,
consolidations, combinations, or exchanges of shares, separations,
reorganizations, liquidations, and the like. In the event of any offer to
holders of Common Stock generally relating to the acquisition of their shares,
the Committee may make such adjustment as it deems equitable in respect of
outstanding options, rights, and restricted units including in the Committee's
discretion revision of outstanding options, rights, and restricted units so that
they may be exercisable for or payable in the consideration payable in the
acquisition transaction. Any such determination by the Committee shall be
conclusive. No adjustment shall be made in the minimum number of shares with
respect to which an option may be exercised at any time. Any fractional shares
resulting from such adjustments to options, rights, limited rights, or
restricted units shall be eliminated.

     14. Effective Date. The Plan as theretofore amended shall become effective
as of February 12, 1993, provided that the Plan shall be approved by the
Corporation's stockholders on or before February 11, 1994. The Committee may, in
its discretion, grant awards under the Plan, the grant, exercise, or payment of
which shall be expressly subject to the conditions that, to the extent required
at the time of grant, exercise, or payment,

          a. the shares of Common Stock covered by such awards shall be Duly
     Listed, upon official notice of issuance, and

          b. if the Corporation deems it necessary or desirable, a Registration
     Statement under the Securities Act of 1933 with respect to such shares
     shall be effective.

     15. Termination and Amendment. The Board of Directors of the Corporation
may suspend, terminate, modify, or amend the Plan, provided that if any such
amendment requires shareholder approval to meet the requirement of the then
applicable rules under Section 16(b) of the Exchange Act, such amendment shall
be subject to the approval of the Corporation's stockholders. If the Plan is
terminated, the terms of the Plan shall, notwithstanding such termination,
continue to apply to awards granted prior to such termination. In addition, no
suspension, termination, modification, or amendment of the Plan may, without the
consent of the

                                      -17-
<PAGE>

Employee or Eligible Director to whom an award shall theretofore have been
granted, adversely affect the rights of such Employee or Eligible Director under
such award.

     16. Written Agreements. Each award of options, rights, restricted shares,
or restricted units shall be evidenced by a written agreement, executed by the
Participant and the Corporation, which shall contain such restrictions, terms
and conditions as the Committee may require.

     17. Effect on Other Stock Plans. The adoption of the Plan shall have no
effect on awards made, or to be made, pursuant to other stock plans covering
Employees or Eligible Directors of the Corporation or any successors thereto.

     18. Governing Law. The Plan and the rights and obligations of the
Corporation and the Employees hereunder, and any options, rights, restricted
shares or restricted units awarded or granted pursuant to the Plan, shall be
governed by and construed in accordance with the laws of the State of Delaware,
excluding any conflicts or choice of law rule or principle that might otherwise
refer construction or interpretation of the Plan or any options, rights,
restricted shares or restricted units awarded or granted pursuant to the Plan to
the statutory or common law of another jurisdiction.

                                      -18-Amendment No. 3 to Loan Agreement

 

EXHIBIT 10.1

AMENDMENT NO. 3 TO

LOAN AGREEMENT

     This Amendment No. 3 to Loan Agreement (the “Amendment”) is dated as of
the 13th day of May, 2002 and is by and between LASALLE BANK NATIONAL
ASSOCIATION (“Lender”) and eLOYALTY CORPORATION, a Delaware corporation (the
“Borrower”).

W I T N E S S E T H:

     WHEREAS, Lender and Borrower are parties to that certain Loan Agreement,
dated as of December 17, 2001 (as amended or otherwise modified from time to
time, the “Loan Agreement”; capitalized terms used herein without definition
shall have the meanings ascribed to such terms in the Loan Agreement); and

     WHEREAS, the Borrower has requested that the Loan Agreement be amended in
certain respects;

     NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, each of Lender and Borrower hereby agree as follows:

     1.     Amendments to Loan Agreement. In reliance on the representations and
warranties set forth in Section 2 of this Amendment and subject to the
satisfaction of the conditions precedent set forth in Section 3 of this
Amendment, the Loan Agreement is hereby amended as follows:

     1.1. The proviso in the first sentence of Section 2.5 is hereby deleted in
its entirety and replaced with the following:

		
	 	     ”; provided, however, that Bank may issue Letters of Credit
with an expiration date on or before June 15, 2006 in an aggregate
face amount not to exceed $600,000.”

     2.     Representations and Warranties. To induce the Lender to enter into
this Amendment, the Borrower hereby represents and warrants to the Lender that:

     2.1. the execution, delivery and performance by the Borrower of this
Amendment and each of the other agreements, instruments and documents
contemplated hereby are within its corporate power, have been duly authorized
by all necessary corporate action, have received all necessary governmental
approval (if any shall be required), and do not and will not contravene or
conflict with any provision of law applicable to the Borrower, the certificate
of incorporation and by-laws of the Borrower (as amended to date), any order,
judgment or decree of any court or governmental agency, or any agreement,
instrument or document binding upon the Borrower or any of its property;

 

     2.2. each of the Loan Agreement and the other Loan Documents, each as
amended by this Amendment, are the legal, valid and binding obligation of the
Borrower to the extent the Borrower is a party thereto, and the Loan Agreement
and such Loan Documents are enforceable against the Borrower in accordance with
their respective terms;

     2.3. the representations and warranties of Borrower contained in the Loan
Agreement and the Loan Documents, each as amended hereby, are true and correct
in all material respects as of the date hereof, with the same effect as though
made on the date hereof, except to the extent that such representations and
warranties expressly relate to an earlier date, in which case such
representations and warranties are true and correct as of such earlier date;
and

     2.4. Borrower has performed in all material respects all of its
obligations under the Loan Agreement and the other Loan Documents to be
performed by it on or before the date hereof and as of the date hereof,
Borrower is in compliance with all applicable terms and provisions of the Loan
Agreement and each of the other Loan Documents to be observed and performed by
it and, assuming the effectiveness of the consents set forth herein, no Event
of Default has occurred and is continuing.

     3.     Conditions. The effectiveness of the amendments and consents set forth
above is subject to the following conditions precedent:

     3.1. Borrower shall have executed and delivered to Lender, or shall have
caused to be executed and delivered to Lender, each in form and substance
satisfactory to Lender, this Amendment and such other documents, instruments
and agreements as Lender may reasonably request.

     3.2. All proceedings taken in connection with the transactions
contemplated by this Amendment and all documents, instruments and other legal
matters incident thereto shall be satisfactory to Lender and its legal counsel.

     3.3. Assuming the effectiveness of the consents set forth herein, no Event
of Default shall have occurred and be continuing.

     4.     References; Effectiveness. Each of the Lender and the Borrower hereby
agree that all references to the Loan Agreement which are contained in any of
the other Loan Documents shall refer to the Loan Agreement as amended by this
Amendment.

     5.     Counterparts. This Amendment may be executed in any number of
counterparts and by the different parties on separate counterparts, and each
such counterpart shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same Amendment.

 

     6.     Continued Effectiveness. Except as specifically set forth herein, the
Loan Agreement and each of the other Loan Documents shall continue in full
force and effect according to their respective terms.

     7.     Governing Law. This Amendment shall be a contract made under and
governed by the internal laws of the State of Illinois.

     8.     Costs and Expenses. Borrower hereby agrees that all expenses incurred
by the Lender in connection with the preparation, negotiation and closing of
the transactions contemplated hereby, including without limitation reasonable
attorneys’ fees and expenses, shall be part of the Obligations.

 

     IN WITNESS WHEREOF, this Amendment has been executed as of, and is
effective as of, the day and year first written above.

	 	 	 	 	 
	 	 	 	eLOYALTY CORPORATION, a Delaware
corporation, as Borrower	 
	 
	 	 	 	By	/s/ TIMOTHY J. CUNNINGHAM
	 	 	 	 	

	 
	 	 	 	Its	Vice President and CFO
	 	 	 	 	

	 
	 	 	 	LASALLE BANK NATIONAL ASSOCIATION,
as Lender	 
	 
	 	 	 	By	/s/ JUNE COURTNEY
	 	 	 	 	

	 
	 	 	 	Its	SVP

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