Document:

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                        GASEL TRANSPORTATION LINES. INC.

A. Purpose and Scope

       The purposes of this Plan are to encourage stock ownership by key
management of the Gasel Transportation Lines, Inc. (herein called the
"Company") and its Subsidiaries, to provide an incentive for such person to
expand and improve the profits and prosperity of the Company and its
Subsidiaries, and to assist the Company and its Subsidiaries in attracting
and retaining key personnel through the grant of (1) Options to purchase
shares of the Company's common stock.

B. Definitions

1.    "Board" shall mean the Board of Directors of the Company as appointed by
      the shareholders.

2.    "Company" shall mean Gasel Transportation Lines, Inc., an Ohio
      corporation.

3.    "Code" shall mean the Internal Revenue Code of 1954, as amended. 4.

4.    "Option" shall mean a right to purchase Stock, granted pursuant to the
      Plan.

5.    "Option Price" shall mean the purchase price for Stock under an Option, as
      determined in Section F below.

6.    "Participant" shall mean an employee, officers or directors of the
      Company, or of any Subsidiary of the Company, to whom an Option is granted
      under the Plan.

7.    "Plan" shall mean this Gasel Transportation Lines, Inc. Stock Option Plan.

8.    "Stock" shall mean the common stock of the Company, no par value.

9.    "Subsidiary" shall mean a subsidiary corporation of the Company, as
      defined in Section 425(f) and 425(g) of the Code.

C. Stock to be Optioned

       Subject to the provisions of Section L of the Plan, the maximum number
of shares of Stock that may be optioned or sold under the Plan is 100,000
shares. Such shares may be treasury, or authorized, but unused, shares of
Stock of the Company.

D. Administration

      The Plan shall be administered by the Board of Directors. Two members
of the Board of Directors shall constitute a quorum for the transaction of
business. The Board of Directors shall be responsible to the Board for the
operation of the Plan, and shall make decision with respect to participation
in the Plan by key management of the Company and its Subsidiaries, and with
respect to the extent of that participation. The interpretation and
construction of any provision of the Plan by the Board of Directors shall be
final. No member of the Board shall be liable for any action or determination
made by him in good faith.

E. Eligibility

      The Board, may grant Options to any key management personnel (including
directors and officers) of the Company or its Subsidiaries. Options may be
awarded by the Board at any time and from time to time to new Participants,
or to then Participants, or to a greater or lesser number of Participants,
and may include or exclude previous Participants, as the Board shall
determine. Options granted at different times need not contain similar
provisions.

F. Option Price

       The purchase price for Stock under each Option shall be 100 percent of
the fair market value of the Stock at the time the Option is granted.

G. Terms and Conditions of Options
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       Options granted pursuant to the Plan shall be authorized by the Board
and shall be evidenced by agreements in such form as a Board, upon
recommendation of the Committee, shall from time to time approve. Such
agreements shall comply with and be subject to the following terms and
conditions.

1. Employment Agreement. The Board may, in its discretion, include in any
Option granted under the Plan a condition that the Participant shall agree to
remain in the employ of, and/or to render services to, the Company or any of
its Subsidiaries for a period of time (specified in the agreement) following
the date the Option is granted. No such agreement shall impose upon the
Company or any of its Subsidiaries, however, any obligation to employ the
Participant for any period of time. 2. Time and method of Payment. The Option
Price shall be paid in full in cash at the time an Option is exercised under
the Plan, or the participant may pay the Option Price by tendering to the
Company a like number of common shares of the Company as the Participant is
exercising his Option to purchase. Otherwise, an exercise of any Option
granted under the Plan shall be invalid and of no effect. Promptly after the
exercise of an Option and the payment of the full Option Price, the
Participant shall be entitled to the issuance of a stock certificate
evidencing his ownership of such Stock. A Participant shall have none of the
rights of a shareholder until shares are issued to him; provided however
adjustment will be made for dividends or other rights for which the record
date is prior to the date such stock certificate is issued.
3. Number of Shares. Each Option shall state the total number of shares of
Stock to which it pertains.
4. Option Period and Limitations on Exercise of Options. The Board may, in
its discretion, provide that an Option may not be exercised in whole or in
part for any period or periods of time specified in the Option agreement.
Except as provided in the Option agreement, an Option may be exercised in
whole in part at any time during its term. No Option may be exercised after
the expiration of 10 years from the date it is granted. No Option may be
exercised for a fractional share of Stock.

H. Termination of Employment or Affiliation

       Except as provided in Section I below, if a Participant ceases to be
employed by the Company or any of its Subsidiaries or his position as a
director of the Company is terminated, his Options shall terminate
immediately; provided, however, that if a Participant's cessation of
employment with the Company and its Subsidiaries is due to his retirement
with the consent of the Company or any of its Subsidiaries, or his
termination as a director is because of a voluntary resignation or because of
a failure to get reelected. the Participant may, at any time within three
months after such cessation of employment, or termination of his directorship
exercise his Options to the extent that he was entitled to exercise them on
the date of cessation of employment or termination of his directorship, but
in no event shall any Option be exercisable more than 10 years from the date
it was granted. The Board of Directors may cancel an Option during the
three-month period referred to in this paragraph, if the Participant engages
in employment or activities contrary, in the opinion of the Board, to the
best interests of the Company or any of its Subsidiaries. The Board shall
determine in each case whether a termination of employment shall be
considered a retirement with the consent of the Company or a Subsidiary, and,
subject to applicable law, whether a leave of absence shall constitute a
termination of employment. Any such determination of the Committee shall be
final and conclusive, unless overruled by the Board.

L Rights in Event of Death

       If a Participant dies while employed by the Company or any of its
Subsidiaries, or is a director within three months after having retired with
the consent of the Company or any of its Subsidiaries, or within three months
after having retired with the consent of the Company or any of its
Subsidiaries, and without having fillly exercised his Options the executors
or administrators, or legatees or heirs, of his estate shall have the right
to exercise such Options and Stock Appreciation Rights to the extent that
such deceased Participant was entitled to exercise the Options on the date of
his death; provided, however, that in no event shall the Options be
exercisable more than 10 years from the date they were granted.

J. No Obligations to Exercise Option or Stock Appreciation Rights
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      The granting of an Option shall impose no obligation upon the
Participant to exercise such Option.

K. Nonassignability

       Options shall not be transferable other than by will or by the law of
descent and distribution, and during a Participant's lifetime shall be
exercisable only by such Participant.

L. Effect of Change in Stock Subject to the Plan

       The aggregate number of shares of Stock available for Options under
the Plan, the shares subject to any Option, and the price per share, shall
all be proportionately adjusted for any increase or decrease in the number of
issued shares of Stock subsequent to the effective date of the Plan resulting
from (l)a subdivision or consolidation of shares or any other capital
adjustment, (2) the payment of a stock dividend, or (3) other increase or
decrease in such shares effected without receipt of consideration by the
Company. If the Company shall be the surviving corporation in any merger or
consolidation, any Option shall pertain, apply, and relate to the securities
to which a holder of the number of shares of Stock subject to the Company, or
upon a merger or consolidation in which the Company is not the surviving
corporation, all Options outstanding under the Plan shall terminate;
provided, however, that each Participant (and each other person entitled
under Section I to exercise an Option) shall have the right, immediately
prior to such dissolution or liquidation, or such merger or consolidation, to
exercise such Participant's Options in whole or in part, but only to the
extent that such Options are otherwise exercisable under the terms of the
Plan.

M. Amendment and Termination

       The Board, by resolution, may terminate, amend, or revise the Plan
with respect to any shares as to which Options have not been granted. The
Board may not, without the consent of the holder of an Option, alter or
impair any Option previously granted under the Plan, except as authorized
herein. Unless sooner terminated, the Plan shall remain in effect for a
period of 10 years from the date of the Plan's adoption by the Board.
Termination of the Plan shall not affect any Option previously granted.

N. Agreement and Representation of Option Holders

      As a condition to the exercise of any portion of an Option, the Company
may require the person exercising such Option to represent and warrant at the
time of such exercise that any shares of Stock acquired at exercise are being
acquired only for investment and without any present intention to sell or
distribute such shares, if, in the opinion of counsel for the Company, such
a-representation is required under the Securities Act of 1933 of any other
applicable law, regulation, or rule of any governmental agency.

0. Reservation of Shares of Stock

       The Company, during the term of this Plan, will at all times reserve
and keep available, and will seek or obtain from any regulatory body having
jurisdiction any requisite authority necessary to issue and to sell, the
number of shares of Stock that shall

be sufficient to satisfy the requirements of this Plan. The inability of the
Company to obtain from any regulatory body having jurisdiction the authority
deemed necessary by counsel for the Company for the lawful issuance and sale
of its Stock hereunder shall relieve the Company of any liability in respect
of the failure to issue or sell Stock as to which the requisite authority has
not been obtained.

P. Effective Date of Plan.

       The Plan shall be effective from the date that the Plan is approved by
the Board.
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                        GASEL TRANSPORTATION LINES, INC.

         A. A STOCK OPTION for a total of _____ common shares, no par value,
of Gasel Transportation Lines, Inc., an Ohio corporation (herein the
"Company") is hereby granted to _________________________ (herein the
"Optionee"), subject in all respects to the terms and provisions of the Gasel
Transportation Lines, Inc. Stock Option Plan (herein the "Plan"), dated May
22, 1997, which has been adopted by the Company and which is incorporated
herein by reference.

         B. The option price as determined by the Board of Directors of the
Company is ___ Dollars ($_.00) per share.

         C. This Option may not be exercised if the issuance of common shares
of the Company upon such exercise would constitute a violation of any
applicable Federal or State securities or other law or valid regulation. The
Optionee, as a condition to his exercise of this Option, shall represent to
the Company that the common shares of the Company that he acquires under this
Option are being acquired by him for investment and not with a present view
to distribution or resale, unless counsel for the Company is then of the
opinion that such a representation is not required under the Securities Act
of 1933 or any other applicable law, regulation, or rule of any governmental
agency.

         D. This Option may not be transferred in any manner otherwise than
by will or the laws of descent and distribution, and may be exercised during
the lifetime of the Optionee only by him. The terms of this Option shall be
binding upon the executors, administrators, heirs, successors, and assigns of
the Optionee.

         E. This Option may not be exercised more than ten (10) years from
the date of its grant, and may be exercised during such term only in
accordance with the terms of the Plan.

Dated: May 22, 1997.

                        Gasel Transportation Lines, Inc.

                        By:___________________________
                           President

ATTEST:

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         The Optionee acknowledges receipt of a copy of the Plan, a copy of
which is annexed hereto, and represents that he is familiar with the terms
and provisions thereof.

         The Optionee hereby accepts this Optionee subject to all of the
terms and provisions of the Plan. The Option hereby agrees to accept as
binding, conclusive, and final all decisions and interpretations of the Board
of Directors, upon any questions arising under the Plan. As a condition to
the issuance of common shares of the Company under this Option, the Optionee
agrees to remit to the Company at the time of any exercise of this Option any
taxes required to be withheld by the Company under Federal, State, or Local
law as a result of the exercise of this Option."

Dated: May 22, 1997.

                                                     --------------------------
                                                     Optionee

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