Document:

[ EXHIBIT 10.1 ]

                               R.L. Troutman & Co.
                            2002 STOCK INCENTIVE PLAN

     1. Purpose.

     The purpose of this Plan is to enable R.L. Troutman & Co. and its
affiliates to recruit and retain capable employees for the successful conduct of
its business and to provide an additional incentive to directors, officers and
other eligible key employees, consultants and advisors upon whom rest major
responsibilities for the successful operation and management of the Company and
its affiliates.

     2. Definitions.

     For purposes of the Plan:

          2.1 "Adjusted Fair Market Value" means, in the event of a Change in
     Control, the greater of (i) the highest price per Share of Common Stock
     paid to holders of the Shares of Common Stock in any transaction (or series
     of transactions) constituting or resulting in a Change in Control or (ii)
     the highest Fair Market Value of a Share during the ninety (90) day period
     ending on the date of a Change in Control.

          2.2 "Affiliate Corporation" or "Affiliate" shall mean any corporation,
     directly or indirectly, through one of more intermediaries, controlling,
     controlled by or under common control with the Company.

          2.3 "Agreement" means the written agreement between the Company and an
     Optionee evidencing the grant of an Award.

          2.4 "Award" means an Incentive Stock Option, Nonqualified Stock Option
     or Stock Appreciation Right granted or to be granted pursuant to the Plan.

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

          2.6 "Cause" means:

               (a) Solely with respect to Nonemployee Directors, the commission
          of an act of fraud or an act of embezzlement, misappropriation or
          conversion of assets or opportunities of the Company or any Affiliate,
          and

               (b) For all other purposes, unless otherwise defined in the
          Agreement evidencing a particular Award, an Optionee (other than a
          Nonemployee Director) (i) intentional failure to perform reasonably
          assigned duties, (ii) dishonesty or willful misconduct in the
          performance of duties, (iii) involvement in a transaction in
          connection with the performance of duties to the Company which
          transaction is adverse to the interests of the Company and which is
          engaged in for personal profit, or (iv) willful violation of any law,
          rule or regulation in connection with the performance of duties (other
          than traffic violations or similar offenses).

          2.7 "Change in Capitalization" means any increase or reduction in the
     Number of Shares, or any change (including, but not limited to, a change in
     value) in the Shares or exchange of Shares for a different number or kind
     of shares or other securities of the Company, by reason of a
     reclassification, recapitalization, merger, consolidation, reorganization,
     spin-off, split-up, issuance of warrants or rights or debentures, stock
     dividend, stock split or reverse stock split, combination or exchange of
     shares, repurchase of shares, change in corporate structure or otherwise.

          2.8 A "Change in Control" shall mean the occurrence during the term of
     the Plan of either of any "person" (as such term is used in Section 13(c)
     and 14(d) of the Exchange Act), other than a trustee or other fiduciary
     holding securities under an employee benefit plan of the Company or a
     corporation owned directly or indirectly by the stockholders of the
     Company, is or becomes the "beneficial owner" (as defined in Rule 13d-3
     under the Exchange Act), directly or indirectly, of Securities of the
     Company representing 50% or more of the total voting power represented by
     the Company's then outstanding voting securities, except that the issuance
     of shares of Common Stock in a public offering made pursuant to the
     Securities Act of 1933, as amended shall not constitute a Change of
     Control.

          2.9 "Code" means the Internal Revenue Code of 1986, as amended.

          2.10 "Committee" means a committee, as described in Section 3.1,
     appointed by the Board to administer the Plan and to perform the functions
     set forth herein.

          2.11 "Company" means R.L. Troutman & Co. (including any and all
     subsidiaries currently existing or hereafter acquired or established).

          2.12 "Director Option" means an Option for Shares, Stock Appreciation
     Rights or Units granted pursuant to Section 6.

          2.13 "Disability" means a physical or mental infirmity which impairs
     an Optionee's ability to perform substantially his or her duties for a
     period of one hundred eighty (180) consecutive days.

          2.14 "Disinterested Director" means a director of the Company who is
     "disinterested" within the meaning of Rule 16b-3 under the Exchange Act.

          2.15 "Eligible Individual" means any director (other than a
     Nonemployee Director), officer or employee of, or consultant or advisor to,
     the Company or an Affiliate who is receiving cash compensation and who is
     designated by the Committee as eligible to receive Awards subject to the
     conditions set forth herein.

          2.16 "Employee Option" means an option granted pursuant to Section 5.

          2.17 "Exchange Act" means the Securities Exchange Act of 1934, as
     amended.

          2.18 "Fair Market Value" on any date means the average of the high and
     low sales prices of the Shares on such date on the principal securities
     exchange on which such Shares are listed, or if such Shares are not so
     listed or admitted to trading, the arithmetic mean of the per Share closing
     bid price and closing asked price per Share on such date as quoted on the
     quotation system of the Nasdaq Stock Market, Inc. or such other market in
     which such prices are regularly quoted, or, if there have been no published
     bid or asked quotations with respect to Shares on such date, the Fair
     Market Value as established by the Board in good faith and, in the case of
     an Incentive Stock Option, in accordance with Section 422 of the Code.

          2.19 "Incentive Stock Option" means an Option satisfying the
     requirements of Section 422 of the Code and designated by the Committee as
     an Incentive Stock Option.

          2.20 "Nonemployee Director" means a director of the Company who is not
     an employee of the Company or an Affiliate.

          2.21 "Nonqualified Stock Option" means an Option which is not an
     Incentive Stock Option.

          2.22 "Option" means a Nonqualified Stock Option, an Incentive Stock
     Option, a Director Option, an Employee Option or any or all of them.

          2.23 "Optionee" means a person to whom an Option is being granted
     under the Plan.

          2.24 "Outside Director" means a director of the Company who is an
     "outside director" within the meaning of Section 162(m) of the Code and the
     regulations promulgated thereunder.

          2.25 "Parent" means any corporation which is a parent corporation
     (within the meaning of Section 424(e) of the Code) with respect to the
     Company.

          2.26 "Plan" means The 2002 R.L. Troutman & Co. Stock Option Plan.

          2.27 "Pooling Transaction" means an acquisition of the Company in a
     transaction which is intended to be treated as a "pooling of interests"
     under generally accepted accounting principles as defined in Opinion No. 16
     of the Accounting Principles Board and the amendments thereto.

          2.28 "Shares" means the common stock, par value $.001 per share, of
     the Company and any securities or other consideration issuable in respect
     of Shares in connection with a Change in Capitalization or Change in
     Control.

          2.29 "Stock Appreciation Right" or "SARs" means a right to receive all
     or some portion of the increase in the value of the Shares as provided in
     Section 8 hereof.

          2.30 "Subsidiary" means any corporation which is a subsidiary
     corporation (within the meaning of Section 424(f) of the Code) with respect
     to the Company.

          2.31 "Successor Corporation" means a corporation, or a parent or
     subsidiary thereof within the meaning of 424(a) of the Code, which issues
     or assumes a stock option in a transaction to which Section 424(a) of the
     Code applies.

          2.32 "Ten Percent Stockholder" means an Eligible Individual, who, at
     the time an Incentive Stock Option is to be granted to him or her owns
     (within the meaning of Section 422(b) (6) of the Code) stock possessing
     more than ten percent (10%) of the total combined voting power of all
     classes of stock of the Company, or of a Parent or a Subsidiary thereof.

     3. Administration.

          3.1 The Plan shall be administered by the Committee which shall hold
     meetings at such times as may be necessary for the proper administration of
     the Plan. The Committee shall keep minutes of its meetings. A quorum shall
     consist of not fewer than two (2) members of the Committee and a majority
     of a quorum may authorize any action. Any decision or determination reduced
     to writing and signed by a majority of all of the members shall be as fully
     effective as if made by a majority vote at a meeting duly called and held.
     The Committee shall consist of at least two (2) directors of the Company.
     If the Board of Directors has any Disinterested Directors or Outside
     Directors, at least one such Disinterested or Outside Director shall be on
     the Committee. No member of the Committee shall be liable for any action,
     failure to act, determination or interpretation made in good faith with
     respect to this Plan or any transaction hereunder, except for liability
     arising from his or her own willful misfeasance, gross negligence or
     reckless disregard of his or her duties. The Company hereby agrees to
     indemnify each member of the Committee for all costs and expenses and, to
     the extent permitted by applicable law, any liability incurred in
     connection with defending against, responding to, negotiating for the
     settlement of or otherwise dealing with any claim, cause of action or
     dispute of any kind arising in connection with any actions in administering
     this Plan or in authorizing or denying authorization to any transaction
     hereunder.

          3.2 Subject to the express terms and conditions set forth herein, the
     Committee shall have the power from time to time to:

               (a) determine those Eligible Individuals to whom Employee Options
          shall be granted under the Plan and the number of Employee Options to
          be granted and to prescribe the terms and conditions (which need not
          be identical) of each such Employee Option, including the purchase
          price per Share subject to each Employee Option, and make any
          amendment or modification to any Option Agreement consistent with the
          terms of this Plan;

               (b) construe and interpret the Plan and the Options granted
          hereunder and to establish, amend and revoke rules and regulations for
          the administration of the Plan, including, but not limited to,
          correcting any defect or supplying any omission, or reconciling any
          inconsistency in the Plan or in any Agreement, in the manner and to
          the extent it shall deem necessary or advisable so that the Plan
          complies with applicable law, including Rule 16b-3 under the Exchange
          Act and the Code to the extent applicable, and otherwise to make the
          Plan fully effective. All decisions and determinations by the
          Committee or the exercise of this power shall be final, binding and
          conclusive upon the Company, its Affiliate Corporations, the Options,
          and all other persons having any interest therein;

               (c) determine the duration and purposes for leaves of absence
          which may be granted to an Optionee on an individual basis without
          constituting a termination of employment or service for purposes of
          this Plan;

               (d) exercise its discretion with respect to the powers and rights
          granted to it as set forth in the Plan; and

               (e) exercise such powers and perform such acts as it deems
          necessary or advisable to promote the best interests of the Company
          with respect to the Plan.

     4. Stock Subject to the Plan.

          4.1 The maximum number of Shares that may be made the subject of
     Options granted under the Plan is 1,500,000. Upon a Change in
     Capitalization the maximum number of Shares shall be adjusted in number and
     kind pursuant to Section 11. The Company shall reserve for purposes of the
     Plan, out of its authorized but unissued Shares or out of Shares held in
     the Company's treasury, or partly out of each, such number of Shares as
     shall be determined by the Board.

          4.2 Upon the granting of an Option, the number of Shares available
     under Section 4.1 for the granting of further Options shall be reduced by
     the number of shares subject to such Option granted. Whenever any
     outstanding Option or portion thereof expires, is canceled or is otherwise
     terminated for any reason without having been exercised or payment having
     been made in respect of the entire Option, the Shares allocable to the
     expired, canceled or otherwise terminated portion of the Option may again
     be the subject of Options granted hereunder.

     5. Option Grants for Eligible Individuals.

          5.1 Authority of Committee. Subject to the provisions of the Plan, the
     Committee shall have full and final authority to select those Eligible
     Individuals who will receive Employee Options, the terms and conditions of
     which shall be set forth in an Agreement.

          5.2 Purchase Price. The purchase price or the manner in which the
     purchase price is to be determined for Shares under each Employee Option
     shall be determined by the Committee and set forth in the Agreement;
     provided, however, that the purchase price per Share under each Incentive
     Stock Option shall not be less than 100% of the Fair Market Value of a
     Share on the date the Incentive Stock Option is granted (110% in the case
     of an Incentive Stock Option granted to a Ten-Percent Stockholder).

          5.3 Maximum Duration.Employee Options granted hereunder shall be for
     such term as the Committee shall determine, provided that an Incentive
     Stock Option granted hereunder shall not be exercisable after the
     expiration of ten (10) years from the date it is granted (five (5) years in
     the case of an Incentive Stock Option granted to a Ten-Percent
     Stockholder), and a Nonqualified Stock Option shall not be exercisable
     after the expiration of ten (10) years from the date it is granted. The
     Committee may, subsequent to the granting of any Employee Option, extend
     the term thereof but in no event shall the term as so extended exceed the
     maximum term provided for in the preceding sentence.

          5.4 Vesting. Subject to Section 7.5 hereof, each Employee Option shall
     become exercisable in such installments (which need not be equal) and at
     such times as may be designated by the Committee and set forth in the
     Agreement. To the extent not exercised, installments shall accumulate and
     be exercisable, in whole or in part, at any time after becoming
     exercisable, but not later than the date the Employee Option expires. The
     Committee may accelerate the exercisability of any Option or portion
     thereof at any time.

          5.5 Modification. No modification of an Employee Option shall
     adversely alter or impair any rights or obligations under the Employee
     Option without the Optionee's consent.

<PAGE>

     6. Option Grants for Nonemployee Directors.

          6.1 Purchase Price. The purchase price for Shares or SARs under each
     Director Option shall be not less than to 100% of the Fair Market Value of
     such Shares on the date immediately preceding the date of the grant unless
     specifically determined to be otherwise by the Committee.

          6.2 Vesting. Subject to Sections 6.3 and 7.5 each Director Option
     shall become exercisable within four (4) equal annual installments
     beginning on the date of grant; provided, however, that the Optionee
     continues to serve as a Director as of such dates. If an Optionee ceases to
     serve as a Director for any reason, the Optionee shall have no rights with
     respect to that portion of a Director Option which has not then vested
     pursuant to the preceding sentence and the Optionee shall automatically
     forfeit that portion of the Director Option which remains unvested.

          6.3 Limitations on Amendment. The provisions in this Section 6 and
     Section 7.1 shall not be amended more than once every six (6) months, other
     than to comport with changes in the Code or the rules and regulations
     thereunder.

     7. Terms and Conditions Applicable to All Options.

          7.1 Duration. Each Option shall terminate on the date which is the
     tenth anniversary of the grant date, unless terminated earlier as follows:

               (a) If an Optionee's employment or service terminates for any
          reason other than Disability, death or Cause, the Optionee may for a
          period of three (3) months after such termination exercise his or her
          Option to the extent, and only to the extent, such Option or portion
          thereof was vested and exercisable as of the date of the Optionee's
          employment or service terminated, after which time the Option shall
          automatically terminate in full.

               (b) If an Optionee's employment or service terminates by reason
          of the Optionee's Disability, the Optionee may, for a period of one
          (1) year after such termination, exercise his or her Option to the
          extent, and only to the extent, such Option or portion thereof was
          vested and exercisable as of the date the Optionee's employment or
          service terminated, after which time the Option shall automatically
          terminate in full.

               (c) If an Optionee's employment or service terminates for Cause,
          the Option granted to the Optionee hereunder shall immediately
          terminate in full and no rights thereunder may be exercised.

               (d) If an Optionee dies while employed or in the service of the
          Company or an Affiliate or within the three (3) month or twelve (12)
          month period described in clause (a) or (b), respectively, of this
          Section 7.1 the Option granted to the Optionee may be exercised at any
          time within twelve (12) months after the Optionee's death by the
          person or persons to whom such rights under the Option shall pass by
          will, or by the laws of descent and distribution, after which time the
          Option shall terminate in full; provided, however, that an Option may
          be exercised to the extent, and only to the extent, such Option or
          portion thereof was exercisable on the date of death or earlier
          termination of the Optionee's services as a Director.

          Notwithstanding clauses (a) through (d) above, the Agreement
          evidencing the grant of an Employee Option may, in the Committee's
          sole and absolute discretion, set forth additional or different terms
          and conditions applicable to Employee Options upon a termination or
          change in status of the employment or service of an Eligible
          Individual. Such terms and conditions may be determined at the time
          the Employee Option is granted or thereafter.

          7.2 Non-transferability. No Option granted hereunder shall be
     transferable by the Optionee to whom granted except by will or the laws of
     descent and distribution, and an Option may be exercised during the
     lifetime of such Optionee only by the Optionee or his or her guardian or
     legal representative. The terms of such Option shall be final, binding and
     conclusive upon the beneficiaries, executors, administrators, heirs and
     successors of the Optionee.

          7.3 Method of Exercise. The exercise of an option shall be made only
     by a written notice delivered in person or by mail to the Secretary or
     Chief Financial Officer of the Company at the Company's principal executive
     office, specifying the number of Shares to be purchased and accompanied by
     payment therefor and otherwise in accordance with the Agreement pursuant to
     which the Option was granted. The purchase price for any Shares purchased
     pursuant to the exercise of an Option shall be paid in full in cash upon
     such exercise. Notwithstanding the foregoing, the Committee shall have
     discretion to determine at the time of grant of each Employee Option or at
     any later date (up to and including the date of exercise) that the form of
     payment acceptable in respect of the exercise of such Employee Option may
     consist of either of the following (or any combination thereof): (i) cash
     or (ii) the transfer of Shares to the Company upon such terms and
     conditions as determined by the Committee. The Optionee shall deliver the
     Agreement evidencing the Option to the Secretary or Chief Financial Officer
     of the Company who shall endorse thereon a notation of such exercise and
     return such Agreement to the Optionee. No fractional Shares (or cash in
     lieu thereof) shall be issued upon exercise of an Option and the number of
     Shares that may be purchased upon exercise shall be rounded to the nearest
     number of whole Shares.

          7.4 Rights of Optionees. No Optionee shall be deemed for any purpose
     to be the owner of any Shares subject to any Option unless and until (i)
     the Option shall have been exercised pursuant to the terms thereof, (ii)
     the Company shall have issued and delivered the Shares to the Optionee and
     (iii) the Optionee's name shall have been entered as a stockholder of
     record on the books of the Company. Thereupon, the Optionee shall have full
     voting, dividend and other ownership rights with respect to such Shares,
     subject to such terms and conditions as may be set forth in the applicable
     Agreement.

          7.5 Effect of Change in Control. In the event of a Change in Control,
     all Options outstanding on the date of such Change in Control shall become
     immediately and fully vested and exercisable. In addition, to the extent
     set forth in an Agreement evidencing the grant of an Employee Option, an
     Optionee will be permitted to surrender for cancellation within sixty (60)
     days after such Change in Control, any Employee Option or portion of an
     Employee Option to the extent not yet exercised and the Optionee will be
     entitled to receive a cash payment in an amount equal to the excess, if any
     of (x) (A) in the case of a Nonqualified Stock Option, the greater of (1)
     the Fair Market Value, on the date preceding the date of surrender, of the
     Shares subject to the Employee Option or portion thereof surrendered or (2)
     the Adjusted Fair Market Value of the Shares subject to the Employee Option
     or portion thereof surrendered or (B) in the case of an Incentive Stock
     Option, the Fair Market Value, on the date preceding the date of surrender,
     of the Shares subject to the Employee Option or portion thereof
     surrendered, over (y) the aggregate purchase price for such Shares under
     the Employee Option or portion thereof surrendered; provided, however, that
     in the case of an Employee Option granted within six (6) months prior to
     the Change in Control to any Optionee who may be subject to liability under
     Section 16(b) of the Exchange Act, such Optionee shall be entitled to
     surrender for cancellation his or her Option during the sixty (60) day
     period commencing upon the expiration of six (6) months from the date of
     grant of any such Employee Option. In the event an Optionee's employment or
     service with the Company is terminated by the Company following a Change in
     Control, each Option held by the Optionee that was exercisable as of the
     date of termination of the Optionee's employment or service shall remain
     exercisable for a period ending not before the earlier of the first
     anniversary of the termination of the Optionee's employment or service or
     the expiration of the stated term of the Option.

     8. Stock Appreciation Rights.The Committee may, in its discretion, either
alone or in connection with the grant of an Employee Option, grant Stock
Appreciation Rights in accordance with the Plan, the terms and conditions of
which shall be set forth in an Agreement. If granted in connection with an
Option, a Stock Appreciation Right shall cover the same Shares covered by the
Option (or such lesser number of Shares as the Committee may determine) and
shall, except as provided in this Section 8, be subject to the same terms.

          8.1 Time of Grant. A Stock Appreciation Right may be granted (i) at
     any time if unrelated to an Option, or (ii) if related to an Option, either
     at the time of grant, or at any time thereafter during the term of the
     Option.

          8.2 Stock Appreciation Right Related to an Option.

               (a) Exercise. Subject to Section 8.8, a Stock Appreciation Right
          granted in connection with an Option shall be exercisable at such time
          or times and only to the extent that the related Options are
          exercisable, and will not be transferable except to the extent the
          related Option may be transferable. A Stock Appreciation Right granted
          in connection with an Incentive Stock Option shall be exercisable only
          if the Fair Market Value of a Share on the date of exercise exceeds
          the purchase price specified in the related Incentive Stock Option
          Agreement.

               (b) Amount Payable. Upon the exercise of a Stock Appreciation
          Right related to an Option, the holder shall be entitled to receive an
          amount determined by multiplying (A) the excess of the Fair Market
          Value of a Share on the date preceding the date of exercise of such
          Stock Appreciation Right over the per Share purchase price under the
          related Option, by (B) the number of Shares as to which such Stock
          Appreciation Right is being exercised. Notwithstanding the foregoing,
          the Committee may limit, in any manner, the amount payable with
          respect to any Stock Appreciation Right by including such a limit in
          the Agreement evidencing the Stock Appreciation Right at the time it
          is granted.

               (c) Treatment of Related Options and Stock Appreciation Rights
          Upon Exercise. Upon the exercise of a Stock Appreciation Right granted
          in connection with an Option, the Option shall be canceled to the
          extent of the number of Shares as to which the Stock Appreciation
          Right is exercised, and upon the exercise of an Option granted in
          connection with a Stock Appreciation Right or the surrender of such
          Option pursuant to Section 7.3, the Stock Appreciation Right shall be
          canceled to the extent of the number of Shares as to which the Option
          is exercised or surrendered.

          8.3 Stock Appreciation Right Unrelated to an Option. The Committee may
     grant to Eligible Individuals Stock Appreciation Rights unrelated to
     Options. Stock Appreciation Rights unrelated to Options shall not have a
     term of greater than ten (10) years. Upon exercise of a Stock Appreciation
     Right unrelated to an Option, the holder shall be entitled to contain such
     terms and conditions as to exercisability (subject to Section 8.8), vesting
     and duration as the Committee shall determine, but, in no event, shall they
     have a term of greater than ten (10) years. Upon exercise of a Stock
     Appreciation Right unrelated to an Option, the holder shall be entitled to
     receive an amount determined by multiplying (A) the excess of the Fair
     Market Value of a Share on the date preceding the date of exercise of such
     Stock Appreciation Right over the Fair Market Value of a Share on the date
     the Stock Appreciation Right was granted, by (B) the number of Shares as to
     which the Stock Appreciation Right is being exercised. Notwithstanding the
     foregoing, the Committee may limit, in any manner, the amount payable with
     respect to any Stock Appreciation Right by including such a limit in the
     Agreement evidencing the same Stock Appreciation Right at the time it is
     granted.

          8.4 Method of Exercise. Stock Appreciation Rights shall be exercised
     by a holder only by a written notice delivered in person or by mail to the
     Secretary or Chief Financial Officer of the Company at the Company's
     principal executive office, specifying the number of Shares with respect to
     which the Stock Appreciation Right is being exercised. If requested by the
     Committee, the holder shall deliver the Agreement evidencing the Stock
     Appreciation Right being exercised and the Agreement evidencing any related
     Option to the Secretary or Chief Financial Officer of the Company who shall
     endorse thereon a notation of such exercise and return such Agreement to
     the holder.

          8.5 Form of Payment. Payment of the amount determined under Sections
     8.2(b) or 8.3 may be made in the discretion of the Committee, solely in
     whole Shares in a number determined at their Fair Market Value in the date
     preceding the date of exercise of the Stock Appreciation Right, or solely
     in cash, or in a combination of cash and Shares. If the Committee decides
     to make full payment in Shares and the amount payable results in a
     fractional Share, payment for the fractional Share will be made in cash.
     Notwithstanding the foregoing, no payment in the form of cash may be made
     upon the exercise of a Stock Appreciation Right pursuant to Sections 8.2(b)
     or 8.3 to an officer of the Company who is subject to liability under
     Section 16(b) of the Exchange Act, unless the exercise of such Stock
     Appreciation Right is made either (i) during the period beginning on the
     third business day and ending on the twelfth business day following the
     date of release for publication of the Company's quarterly or annual
     statements of earnings (the "Window Period") or (ii) pursuant to an
     irrevocable election to receive cash made at least six (6) months prior to
     the exercise of such Stock Appreciation Right.

          8.6 Modification. No modification of an Award shall adversely alter or
     impair any rights or obligations under the Agreement without the holder's
     consent.

          8.7 Effect of Change in Control. In the event of a Change in Control,
     all Stock Appreciation Rights shall become immediately and fully
     exercisable. In addition, to the extent set forth in an Agreement
     evidencing the grant of a Stock Appreciation Right, a holder will be
     entitled to receive a payment in cash or stock, in either case, with a
     value equal to the excess, if any, of (A) the greater of (x) the Fair
     Market Value, on the date preceding the date of exercise, of the underlying
     Shares subject to the Stock Appreciation Right or portion thereof exercised
     and (y) the Adjusted Fair Market Value, on the date preceding the date of
     exercise, of the Shared over (B) the aggregate Fair Market Value, on the
     date the Stock Appreciation Right was granted, of the Shares subject to the
     Stock Appreciation Right or portion thereof exercised; provided, however,
     that in the case of a Stock Appreciation Right granted within six (6)
     months of the Change in Control to any holder who may be subject to
     liability under Section 15(b) of the Exchange Act, such holder shall be
     entitled to exercise his or her Stock Appreciation Right during the sixty
     (60) day period commencing upon the expiration of six months from the date
     of grant of any such Stock Appreciation Right. In the event of a holder's
     employment or service with the Company is terminated by the Company
     following a Change in Control, each Stock Appreciation Right held by the
     holder that was exercisable as of the date of termination of the holder's
     employment or service shall remain exercisable for a period ending but not
     before the earlier of the first anniversary of the termination of the
     holder's employment or service or the expiration of the stated term of the
     Stock Appreciation Right.

     9. Adjustment Upon Changes in Capitalization.

          (a) In the event of a Change in Capitalization, the Committee shall
     conclusively determine the appropriate adjustments, if any, to the (i)
     maximum number of Shares with respect to which Options may be granted under
     the Plan, (ii) maximum number of Shares with respect to which Options may
     be granted to any Eligible Individual during the term of the Plan, (iii)
     the number of Shares which are subject to outstanding Options granted under
     the Plan, and the purchase price therefor, if applicable, and (iv) the
     number of Shares in respect of which Director Options are to be granted
     under Section 6.

          (b) Any such adjustment in the Shares subject to Incentive Stock
     Options (including any adjustments in the purchase price) shall be made in
     such manner as not to constitute a modification as defined by Section
     424(h)(3) of the Code and only to the extent otherwise permitted by
     Sections 422 and 424 of the Code.

          (c) If, by reason of a Change of Capitalization, an Optionee shall be
     entitled to exercise an Option with respect to new, additional or different
     shares of stock, such new, additional or different shares shall thereupon
     be subject to all of the conditions, restrictions and performance criteria
     which were applicable to the Shares subject to the Option, prior to such
     Change in Capitalization.

     10. Effect of Certain Transactions. Subject to Sections 7.5 and 8.7 or as
otherwise provided in an Agreement, in the event of (i) the liquidation or
dissolution of the Company or (ii) a merger or consolidation of the Company, the
Plan and the Options issued hereunder shall continue in effect in accordance
with their respective terms.

     11. Interpretation.

          (a) The Plan is intended to comply with Rule 16b-3 promulgated under
     the Exchange Act and the Committee shall interpret and administer the
     provisions of the Plan or any Agreement in a manner consistent therewith.
     Any provisions inconsistent with such Rule shall be inoperative and shall
     not affect the validity of the Plan.

          (b) The Director Options described in Section 6 are intended to
     qualify as formula awards under Rule 16b-3 promulgated under the Exchange
     Act (thereby preserving the disinterested status of Nonemployee Directors
     receiving such Awards) and the Committee shall generally interpret and
     administer the provisions of the Plan or any Agreement in a manner
     consistent therewith. Any provisions inconsistent with the foregoing intent
     shall be inoperative and shall interpret and administer the provisions of
     the Plan or any Agreement in a manner consistent therewith. Any provisions
     inconsistent with the foregoing intent shall be inoperative and shall not
     affect the validity of the Plan.

          (c) Unless otherwise expressly stated in the relevant Agreement, each
     Option granted under the Plan is intended to be performance-based
     compensation within the meaning of Section 162(m)(4)(C) of the Code. The
     Committee shall not be entitled to exercise any discretion otherwise
     authorized hereunder with respect to such Options if the ability to
     exercise such discretion or the exercise of such discretion itself would
     cause the compensation attributable to such Options to fail to qualify as
     performance-based compensation.

     12. Pooling Transactions.

     Notwithstanding anything contained in the Plan or any Agreement to the
contrary, in the event of a Change in Control which is also intended to
constitute a Pooling Transaction, the Committee shall take such actions, if any,
which are specifically recommended by an independent public accounting firm
engaged by the Company to the extent reasonably necessary in order to assure
that the Pooling Transaction will qualify as such, including but not limited to
(i) deferring the vesting, exercise, payment or settlement in respect of any
Option, (ii) providing that the payment or settlement in respect of any Option
be made in the form of cash, Shares or securities of a successor or acquiree of
the Company, or a combination of the foregoing, and (iii) providing for the
extension of term of any Option to the extent necessary to accommodate the
foregoing, but not beyond the maximum term permitted for any Option.

     13. Termination and Amendment of the Plan.

     The Plan shall terminate on the preceding the tenth anniversary of the date
of its adoption by the stockholders of the Company, and no Option may be granted
thereafter. Subject to Section 6.5, the Board may sooner terminate the Plan, and
the Board may at any time and from time to time amend, modify or suspend the
Plan; provided, however, that:

          (a) No such amendment, modification, suspension or termination shall
     impair or adversely alter any Award already granted under the Plan, except
     with the consent of the Optionee or holder of an SAR nor shall any
     amendment, modification or termination deprive any Optionee or holder of an
     SAR of any Shares which he or she may have acquired through or as a result
     of the Plan; and

          (b) To the extent necessary under Section 16(b) of the Exchange Act
     and the rules and regulations promulgated thereunder or other applicable
     law, no amendment shall be effective unless approved by the stockholders of
     the Company in accordance with applicable law and regulations.

     14. Non-Exclusivity of the Plan.

     The adoption of the Plan by the Board shall not be construed as amending,
modifying or rescinding any previously approved incentive arrangement or as
creating any limitations on the power of the Board to adopt such other incentive
arrangements as it may deem desirable, including, without limitation, the
granting of stock options otherwise than under the Plan, and such arrangements
may be either applicable generally or only in specific cases.

     15. Limitation of Liability.

     As illustrative of the limitations of liability of the Company, but not
intended to be exhaustive thereof, nothing in the Plan shall be construed to:

          (a) give any person any right to be granted an Option other than at
     the sole discretion of the Committee;

          (b) give any person any rights whatsoever with respect to Shares
     except as specifically provided in the Plan;

          (c) limit in any way the right of the Company to terminate the
     employment of any person at any time; or

          (d) be evidence of any agreement or understanding, expressed or
     implied, that the Company will employ any person at any particular rate of
     compensation or for any particular period of time.

     16. Regulations and Other Approvals; Governing Law.

          16.1 Except as to matters of Federal law, this Plan and the rights of
     all persons claiming hereunder shall be construed and determined in
     accordance with the laws of the State of New York.

          16.2 The obligation of the Company to sell or deliver Shares with
     respect to Options granted under the Plan shall be subject to all
     applicable laws, rules and regulations, including all applicable Federal
     and state securities laws, and the obtaining of all such approvals by
     governmental agencies as may be deemed necessary or appropriate by the
     Committee.

          16.3 The Board may make such changes as may be necessary or
     appropriate to comply with the rules and regulations of any government
     authority, or to obtain for Eligible Individuals granted Incentive Stock
     Options the tax benefits under the applicable provisions of the Code and
     regulations promulgated thereunder.

          16.4 Each Option is subject to the requirement that, if at any time
     the Committee determines, in its discretion, that the listing, registration
     or qualification of Shares issuable pursuant to the Plan is required by any
     securities exchange or under any state or federal law, or the consent or
     approval or any governmental regulatory body is necessary or desirable as a
     condition of, or in connection with, the grant of an Option or the issuance
     of Shares, no Options shall be granted or payment made or Shares issued, in
     whole or in part, unless listing, registration, qualification, consent or
     approval has been effected or obtained free of any conditions as acceptable
     to the Committee.

          16.5 Notwithstanding anything contained in the Plan or any Agreement
     to the contrary, in the event that the disposition of Shares acquired
     pursuant to the Plan is not covered by a then current registration
     statement under the Securities Act of 1933, as amended (the "Securities
     Act"), and is not otherwise exempt from such registration, such Shares
     shall be restricted against transfer to the extent required by the
     Securities Act and Rule 144 or other regulations thereunder. The Committee
     may require an individual receiving Shares pursuant to an Award granted
     under the Plan, as a condition precedent to receipt of such Shares, to
     represent and warrant to the Company in writing that the Shares acquired by
     such individual are acquired without a view to any distribution thereof and
     will not be sold or transferred other than pursuant to an exemption
     applicable under the Securities Act as amended, or the rules and
     regulations promulgated thereunder. The certificates evidencing any of such
     Shares shall be appropriately amended to reflect their status as restricted
     securities as aforesaid.

     17. Miscellaneous.

          17.1 Multiple Agreements. The terms of each Award granted to an
     Eligible Individual may differ from other Awards granted under the Plan at
     the same time, or at some other time. The Committee may also grant more
     than one Award to a given Eligible Individual during the term of the Plan,
     either in addition to, or in substitution for, one or more Awards
     previously granted to that Eligible Individual.

          17.2 Withholding of Taxes.

               (a) At such times as an Optionee or holder of an SAR recognizes
          taxable income in connection with the receipt of Shares or cash
          hereunder (a "Taxable Event"), the Optionee or holder shall pay other
          amounts as may be required by law to be withheld by the Company in
          issuance or release from escrow of such Shares or the payment of such
          cash. The Company shall have the right to deduct from any payment of
          cash to an Optionee or holder an amount equal to the Withholding Taxes
          in satisfaction of the obligation to pay Withholding Taxes. In
          satisfaction of the obligation to pay Withholding Taxes to the
          Company, the Optionee or holder may make a written election (the "Tax
          Election"), which may be accepted or rejected in the discretion of the
          Committee to have withheld a portion of the Shares then issuable to
          him or her having an aggregate Fair Market Value, on the date
          preceding the date of such issuance, equal to the Withholding Taxes,
          provided that in respect of an Optionee or holder who may be subject
          to liability under Section 16(b) of the Exchange Act either; (i)(A)
          the Tax Election is made at least six (6) months prior to the date of
          the Taxable Event and (B) the Tax Election is irrevocable with respect
          to all Taxable Events of a similar nature occurring prior to the
          expiration of six (6) months following a revocation of the Tax
          Election; or (ii)(A) the Tax Election is made at least six (6) months
          after the date the Award was granted, (B) the Award is exercised
          during the Window Period and (C) the Tax Election is made during the
          Window Period in which the related Award is exercised or prior to such
          Window Period and subsequent to the immediately preceding Window
          Period. Notwithstanding the foregoing, the Committee may, by the
          adoption of rules or otherwise, (i) modify this Section 17.2 (other
          than as regards Director Options) or impose such other restrictions or
          limitations on Tax Elections to be made at such times and subject to
          such other conditions as the Committee determines will constitute
          exempt transactions under Section 16(b) of the Exchange Act.

               (b) If an Optionee makes a disposition, within the meaning of
          Section 424 (c) of the Code and regulations promulgated thereunder, of
          any Share or Shares issued to such Optionee pursuant to the exercise
          of an Incentive Stock Option within the two-year period commencing on
          the day after the date of the grant or within the one-year period
          commencing on the day after the date of transfer of such Share or
          Shares to the Optionee pursuant to such exercise, the Optionee shall,
          within ten (10) days of such disposition, notify the Company thereof,
          by delivery of written notice to the Company at its principal
          executive office.

          17.3 Effective Date. The effective date of the Plan shall be April 30,
     2002.Exhibit 10.8

                  B r o t h e r s   O i l   &   G a s   I n c .

December 31, 2001

Attn: Board of Directors
Herrimen Oil & Gas Inc.
#990 - 1500 West Georgia Street
Vancouver, BC  V6G 2Z6

         RE: Further Extension on Option Agreement and Initial Extension
         ---------------------------------------------------------------
                             for 61-9 and 18-R Wells
                             -----------------------

Please  accept this letter as  confirmation  that  Brothers  Oil & Gas Inc.  has
extended the term of the Option until June 30, 2002.

Regards,

BROTHERS OIL & GAS INC.

/s/ Allen Sewell

Allen Sewell
President

                 101 Church Bay Road, Saturna Island, BC V0N 2Y0
                         Telephone & Fax: (250) 539-5680

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