Document:

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                                  EXHIBIT 10.8

                      SECOND AMENDMENT TO CREDIT AGREEMENT

     THIS SECOND AMENDMENT TO CREDIT AGREEMENT (the "Amendment") dated as of
June 28, 2001, is made by and among ELGIN NATIONAL INDUSTRIES, INC., a Delaware
corporation (the "Borrower"), the Guarantors party to the Credit Agreement (as
defined below), the Banks party to the Credit Agreement, and PNC BANK, NATIONAL
ASSOCIATION, in its capacity as agent for the Banks (the "Agent").

                              W I T N E S S E T H:

     WHEREAS, the parties hereto are parties to that certain Credit Agreement,
dated as of September 24, 1993, as amended and restated as of January 18, 2001,
and as further amended as of March 1, 2001, by and among the Borrower, the
Guarantors, the Banks, and the Agent (the "Credit Agreement") and desire to
amend the terms thereof as set forth herein.

     NOW, THEREFORE, the parties hereto, in consideration of their mutual
covenants and agreements hereinafter set forth and intending to be legally bound
hereby, covenant and agree as follows:

1.   Definitions.

     Defined terms used herein unless otherwise defined herein shall have the
meanings ascribed to them in the Credit Agreement as amended by this Amendment.

2.   Amendment of Credit Agreement.

     (a)  Section 1.1 of the Credit Agreement [Certain Definitions] is hereby
          amended by inserting the following new definitions, in appropriate
          alphabetical order:

     Best Metal Finishing, Inc. shall mean Best Metal Finishing, Inc., a
     corporation organized and existing under the laws of the state of Delaware
     and a Subsidiary of the Borrower.

     Best Metal Finishing, Inc. Capital Expenditures shall mean actual Capital
     Expenditure Payments made by or on behalf of Best Metal Finishing, Inc. in
     the fiscal year 2001 or 2002, which payments shall not exceed in the
     aggregate $4,400,000 during the period consisting of the fiscal years 2001
     and 2002.

     Capital Expenditure Payments shall mean payments, under usual and customary
     terms and in the ordinary course of business, on account of the purchase or
     lease

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          of any assets which if purchased would constitute fixed assets or
          which if leased would constitute a capitalized lease.

          Osgood Debt shall have the meaning set forth in Section 8.2.1.

          Osgood Documents shall have the meaning set forth in Section 8.2.21.

          Osgood Guaranty shall have the meaning set forth in Section 8.2.3.

          Osgood Loan Agreement shall have the meaning set forth in Section
          8.2.1.

          Osgood Mortgage shall have the meaning set forth in Section 8.2.2.

          Osgood Property shall mean the real property, together with any
          improvements thereon, owned by Best Metal Finishing, Inc. comprised of
          approximately 10 acres and situated in Ripley County, Indiana.

          (b)  In Section 1.1 of the Credit Agreement [Certain Definitions], the
               following definitions are hereby amended and restated in their
               entirety to read as follows:

          Annual Consolidated EBITDA means Consolidated EBITDA calculated as of
          the end of each fiscal quarter for the four quarters then ended. For
          purposes of determining Annual Consolidated EBITDA as of the fiscal
          quarters ending December 31, 2000, March 31, 2001, June 30, 2001 and
          September 30, 2001, Annual Consolidated EBITDA shall be deemed to be
          the following:

          (A)  for the fiscal quarter ended December 31, 2000, Annual
               Consolidated EBITDA shall be Consolidated EBITDA as of December
               31, 2000 for the four quarters then ended, plus $3,180,000, plus
               Actual EBITDA of Leland for the fiscal quarter ended December 31,
               2000;

          (B)  for the fiscal quarter ended March 31, 2001, Annual Consolidated
               EBITDA shall be Consolidated EBITDA as of March 31, 2001 for the
               four quarters then ended, plus $2,120,000, plus Actual EBITDA of
               Leland for the fiscal quarter ended December 31, 2000;

          (C)  for the fiscal quarter ended June 30, 2001, Annual Consolidated
               EBITDA shall be Consolidated EBITDA as of June 30, 2001 for the
               four quarters then ended, plus $1,060,000, plus Actual EBITDA of
               Leland for the fiscal quarter ended December 31, 2000;

                                     - 2 -

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          (D)  for the fiscal quarter ended September 30, 2001, Annual
               Consolidated EBITDA shall be Consolidated EBITDA as of September
               30, 2001 for the four quarters then ended, plus Actual EBITDA of
               Leland for the fiscal quarter ended December 31, 2000; and

          (E)  for the fiscal quarter ended December 31, 2001 and for each
               fiscal quarter thereafter, Annual Consolidated EBITDA shall be
               Consolidated EBITDA calculated as of the end of each such fiscal
               quarter for the four quarters then ended.

          Excess Cash Flow shall be computed as of the close of each fiscal year
          by taking the difference between (a) Consolidated EBITDA for such
          fiscal year and (b) the sum of Fixed Charges for such fiscal year
          plus, for the fiscal years 2001 and 2002 only (and only to the extent
          not previously deducted from a prior year Excess Cash Flow
          calculation), Best Metal Finishing, Inc. Capital Expenditures for such
          fiscal year , provided however, that in the event the computation for
          any fiscal year of the difference between the amounts of (a) and (b)
          does not exceed $200,000, then for such fiscal year, the "Excess Cash
          Flow" shall be deemed to be $0 and no Mandatory Prepayment of Excess
          Cash Flow shall be payable for such fiscal year under Section 5.5.1.
          It is expressly agreed that the aggregate amount of the actual Best
          Metal Finishing, Inc. Capital Expenditures included in clause (b) of
          the preceding sentence shall not exceed $4,400,000 in the aggregate
          for the period consisting of the fiscal years 2001 and 2002.

          Fixed Charges shall mean for any period of determination the sum of
          interest expense, cash income taxes, scheduled principal installments
          on Indebtedness (as adjusted for prepayments), capital expenditures
          (excluding for the 2001 and 2002 fiscal years Best Metal Finishing,
          Inc. Capital Expenditures), and payments under capitalized leases, in
          each case of the Borrower and its Subsidiaries for such period
          determined and consolidated in accordance with GAAP.

          (c) Clause (ix) is hereby added to Section 8.2.1 [Indebtedness] as
          follows:

          "(ix) Indebtedness of Best Metal Finishing, Inc. to The Friendship
          State Bank pursuant to that certain Loan Agreement by and between Best
          Metal Finishing, Inc. and The Friendship State Bank (the "Osgood Loan
          Agreement") in an aggregate principal amount at any one time not to
          exceed $1,200,000. (the "Osgood Debt")"

          (d) Clause (xii) is hereby added to Section 8.2.2 [Liens] as follows:

          "(xii) Liens, security interests and mortgages in and on the Osgood
          Property in favor of The Friendship State Bank, pursuant to that
          certain Mortgage and Security Agreement by and between Best Metal
          Finishing, Inc. and The

                                     - 3 -

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          Friendship State Bank (the "Osgood Mortgage") in an aggregate
          principal amount at any one time, not to exceed $1,200,000."

          (e)  Section 8.2.3 [Guarantees] is hereby amended and restated in its
               entirety as follows:

          "Each of the Loan Parties shall not, and shall not permit any of its
          Subsidiaries to, at any time, directly or indirectly, become or be
          liable in respect of any Guaranty, or assume, guarantee, become surety
          for, endorse or otherwise agree, become or remain directly or
          contingently liable upon or with respect to any obligation or
          liability of any other Person, except for (i) Guaranties of
          Indebtedness of the Loan Parties under the Loan Documents in favor of
          the Agent for the benefit of the Banks, (ii) guaranties of
          Subsidiaries of the Borrower of the Indebtedness and other obligations
          of the Borrower under the 11% Notes in accordance with the terms of
          the Note Indenture, and (iii) a guarantee of Elgin National
          Industries, Inc. to The Friendship State Bank, pursuant to that
          certain Guaranty Agreement (the "Osgood Guaranty") in an aggregate
          principal amount at any one time, not to exceed $1,200,000.

          (f)  Section 8.2.15 [Capital Expenditures and Leases] is hereby
               amended and restated in its entirety as follows:

               "Commencing with the fiscal year of January 1, 2001 ending
          December 31, 2001, the Loan Parties and their Subsidiaries shall not
          make any payments exceeding $3,500,000 in the aggregate in any fiscal
          year (plus any unused portion of such amount from the prior fiscal
          year) on account of the purchase or lease of any assets, which if
          purchased would constitute fixed assets or which if leased would
          constitute a capitalized lease, or any payments exceeding $3,000,000
          in the aggregate in any fiscal year on account of the rental or lease
          of real or personal property of any other Person which does not
          constitute a capitalized lease, and all such capital expenditures and
          leases shall be made under usual and customary terms and in the
          ordinary course of business. With respect to Best Metal Finishing,
          Inc. for the period consisting of the fiscal years 2001 and 2002, in
          addition to any amounts permitted by the immediately preceding
          sentence of this Section 8.2.15, Best Metal Finishing, Inc. may make
          Capital Expenditure Payments not to exceed in the aggregate
          $4,400,000."

          (g)  The following Schedules to the Credit Agreement are hereby
               amended and restated in the forms attached hereto:

                            Schedule 6.1.1
                            Schedule 6.1.3
                            Schedule 6.1.8

                                     - 4 -

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     (h) The following Section 8.2.21 is hereby added to the Credit
         Agreement to read as follows:

     "8.2.21  Matters Relating to the Osgood Debt.
              -----------------------------------

     The Loan Parties shall not and shall not permit any of their Subsidiaries
to prepay amounts due pursuant to the Osgood Loan Agreement or related loan
documents without the prior written consent of the Agent and the Required Banks,
provided, however, so long as no Event of Default or Potential Default exists
after giving effect thereto, in any fiscal year after making the Mandatory
Prepayment of Excess Cash Flow required pursuant to Section 5.5.1 with respect
to Excess Cash Flow attributable to the immediately preceding fiscal year, the
Loan Parties may utilize Excess Cash Flow attributable to such immediately
preceding fiscal year with respect to which no Mandatory Prepayment of Excess
Cash Flow is required in order to prepay principal under the Osgood Loan
Agreement. The Loan Parties shall not amend and shall not permit to be amended
any material provision of the Osgood Loan Agreement, the Osgood Mortgage, the
Osgood Guaranty, or any other documentation related to the Osgood Debt (all of
the foregoing, collectively, the "Osgood Documents") without the prior written
consent of the Agent and the Required Banks, which shall not be unreasonably
withheld or delayed. The Loan Parties shall provide copies to the Agent of any
notices of any waivers or consents and notices of default or termination
received by any Loan Party under the Osgood Documents within two (2) Business
Days of receipt thereof."

3. Waivers to Provisions of Credit Agreement.

     (a)  With respect to the Osgood Property, the Required Banks hereby waive
          the provisions of Section 7.1.3 [Delivery of Loan Documents] as such
          Section relates to the requirement of delivery of a Mortgage, Section
          7.1.7 [Environmental Audit] and Section 7.1.14 [Title Insurance] and
          agree that the Loan Parties shall not be required to deliver a
          Mortgage, Environmental Audit or Title Insurance with respect to the
          Osgood Property.

4. Representations and Warranties. The Loan Parties hereby represent and
   warrant to the Banks as follows:

     A. The representations and warranties of Loan Parties contained in the
Credit Agreement are true and correct on and as of the date hereof with the same
force and effect as though made by the Loan Parties on such date, except to the
extent that any such representation or warranty expressly relates solely to a
previous date; and

     B. The Loan Parties are in compliance with all terms, conditions,
provisions, and covenants contained in the Credit Agreement and the execution,
delivery, and performance of this Amendment have been duly authorized by all
necessary corporate action, require no governmental approval, and will neither
contravene, conflict with, nor result in the breach of any

                                     - 5 -

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law, charter, articles, or certificate of incorporation, bylaws, or agreement
governing or binding upon the Loan Parties or any of their property; and, no
Event of Default or Potential Default has occurred and is continuing or would
result from the making of this Amendment.

5. Conditions of Effectiveness of this Amendment. The effectiveness of this
Amendment is expressly conditioned upon satisfaction of each of the following
conditions precedent:

   A. Fees and Expenses. The Borrower shall pay or cause to be paid to the
Agent the reasonable costs and expenses of the Agent including, without
limitation, reasonable fees of the Agent's counsel in connection with this
Amendment.

   B. Legal Details; Counterparts. All legal details and proceedings in
connection with the transactions contemplated by this Amendment shall be in form
and substance satisfactory to the Agent, and the Agent shall have received from
the Borrower and the Required Banks all such other counterpart originals or
certified or other copies of such documents and proceedings in connection with
such transactions, in form and substance satisfactory to the Agent.

   C. No Default. As of the date hereof, no Event of Default or Potential
Default has occurred and is continuing and Borrower byexecuting this Amendment
confirms the same and also confirms the accuracy of the representations and
warranties in Section 3 above.

   D. Guarantor Joinder Documentation. Best Metal Finishing, Inc. shall have
executed and delivered to the Agent the Guarantor Joinder and Assumption
Agreement in the form of Exhibit 1.1(G)(1) to the Credit Agreement, and Best
Metal Finishing, Inc. and Elgin National Industries, Inc. shall have executed
and delivered to the Agent an Environmental Indemnity Agreement relative to the
Osgood Property in the form of Exhibit 1.1(I)(1) to the Credit Agreement. Best
Metal Finishing, Inc. shall have executed UCC-1 financing statements in favor of
the Agent for the benefit of the Banks relative to the personal property of Best
Metal Finishing, Inc., and Elgin National Industries, Inc. shall have delivered
to the Agent a stock power and stock certificate of the shares of Best Metal
Finishing, Inc.

   E. Opinion of Counsel. The Borrower shall have delivered to the Agent an
Opinion of Borrower's Counsel as set forth in Section 7.1.4 to the Credit
Agreement.

   F. Secretary's Certificate. The Borrower shall have delivered to the Agent
a Secretary's Certificate as set forth in Section 7.1.2 to the Credit Agreement.

   G. Certificate of Insurance. The Borrower shall have delivered to the Agent
an insurance certificate of Best Metal Finishing, Inc. as set forth in Section
7.1.13 to the Credit Agreement.

   H. Intercreditor Agreement. The Friendship State Bank, Best Metal
Finishing, Inc. and the Agent shall have executed and delivered an Intercreditor
Agreement substantially in the form of Exhibit 1 to this Amendment relative to
the collateral located at the Osgood Property.

                                     - 6 -

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     I. Updated Schedules. The Borrower shall have delivered to the Agent an
updated Schedule A to the Security Agreement and an updated Schedule A to the
Pledge Agreement to give effect to Best Metal Finishing, Inc.

     J. Osgood Documents. The Borrower shall have delivered to the Agent copies
of all documentation relating to the Osgood Debt, including but not limited to
the Osgood Loan Agreement, the Osgood Mortgage and the Osgood Guaranty.

     6. Amendment. The Credit Agreement and certain of the schedules thereto are
hereby amended in accordance with the terms hereof and any reference to the
Credit Agreement shall hereafter mean and include the Credit Agreement,
including such schedules, as amended hereby.

     7. Force and Effect. Borrower reconfirms, restates, and ratifies the Credit
Agreement and all other documents executed in connection therewith except to the
extent any such documents are expressly modified by this Amendment and each of
the Loan Parties confirms that all such documents have remained in full force
and effect since the date of their execution.

     8. Governing Law. This Amendment shall be deemed to be a contract under the
laws of the Commonwealth of Pennsylvania and for all purposes shall be governed
by and construed and enforced in accordance with the internal laws of the
Commonwealth of Pennsylvania without regard to its conflict of laws principles.

     9. Counterparts. This Amendment may be signed in any number of counterparts
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

    10. Effective Date. This Amendment shall be effective as of and shall be
dated as of the date of satisfaction of all conditions set forth in Section 4 of
this Amendment.

                         [SIGNATURES BEGIN ON NEXT PAGE]

                                     - 7 -

<PAGE>

        [SIGNATURE PAGE 1 OF 4 TO SECOND AMENDMENT TO CREDIT AGREEMENT]

     IN WITNESS WHEREOF and intending to be legally bound hereby, the parties
hereto have executed this Amendment as of the date first above written.

ATTEST:                                          ELGIN NATIONAL INDUSTRIES, INC.

/s/ Barbara A. Matula                            By: /s/ David Hall
--------------------------------------              ----------------------------
Name: Barbara A. Matula                          Name: David Hall
     ---------------------------------                --------------------------
Title: Admin. Asst.                             Title: V.P. Mfg.
       -------------------------------                 -------------------------

[Seal]

                                                 EACH GUARANTOR LISTED ON
                                                 SCHEDULE 1 HERETO

/s/ Barbara A. Matula                            By: /s/ David Hall
---------------------------------------             ----------------------------
Name: Barbara A. Matula                         Name: David Hall
      ---------------------------------               --------------------------
Title: Admin. Asst.                              Title: V.P. Mfg.
       --------------------------------                 ------------------------

                                     - 8 -

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                                   SCHEDULE 1

CABELL CONSTRUCTION COMPANY
CENTRIFUGAL SERVICES, INC.
CLINCH RIVER CORPORATION
ENI INTERNATIONAL, LTD
ELGIN INTERNATIONAL, LTD
LELAND-POWELL FASTENERS, INC.
MINING CONTROLS, INC.
NORRIS SCREEN AND MANUFACTURING INC.
PRECISION SCREW & BOLT, INC.
ROBERTS & SCHAEFER COMPANY
ROBERTS & SCHAEFER INTERNATIONAL, LTD
SOROS ASSOCIATES, INC.
SOROS INTERNATIONAL, LTD
TABOR MACHINE COMPANY
THOMPSON-STARRETT CONSTRUCTION COMPANY, INC.
TRANSERVICE, INC.
VANCO INTERNATIONAL, INC.
BEST METAL FINISHING, INC.

<PAGE>

         [SIGNATURE PAGE 2 OF 4 TO SECOND AMENDMENT TO CREDIT AGREEMENT]

                       PNC BANK, NATIONAL ASSOCIATION,
                       individually and as Agent

                       By: /s/ Hana Deiter
                           -------------------------------------------------
                       Name: Hana Deiter
                            ------------------------------------------------
                       Title: AVP
                             -----------------------------------------------

                                     - 10 -

<PAGE>

         [SIGNATURE PAGE 3 OF 4 TO SECOND AMENDMENT TO CREDIT AGREEMENT]

                           BANK OF SCOTLAND

                           By: /s/ Joseph Fratus
                               -------------------------------------------------
                           Name: Joseph Fratus
                                 -----------------------------------------------
                           Title: Vice President
                                  ----------------------------------------------

                                     - 11 -

<PAGE>

         [SIGNATURE PAGE 4 OF 4 TO SECOND AMENDMENT TO CREDIT AGREEMENT]

                           NATIONAL CITY BANK

                           By: /s/ Stephen E. Green
                              --------------------------------------------------
                           Name:  Stephen E. Green
                                ------------------------------------------------
                           Title: Vice President
                                  ----------------------------------------------

                                     - 12 -

<PAGE>

                                    EXHIBIT 1

                        [FORM OF INTERCREDITOR AGREEMENT]

                                     - 13 -EX - 4.3

Othnet, Inc.
2001 STOCK INCENTIVE PLAN

     1.   ESTABLISHMENT AND PURPOSE.

The Othnet, Inc. 2001 Stock Incentive Plan (the "Plan") is
established by Othnet, Inc. (the "Company") to attract and
retain persons eligible to participate in the Plan; motivate
Participants to achieve long-term Company goals; and further
align Participants' interests with those of the Company's other
stockholders.  The Plan is adopted as of March 22, 2001,
subject to approval by the Company's stockholders within 12
months after such adoption date.  Unless the Plan is
discontinued earlier by the Board as provided herein, no Award
shall be granted hereunder on or after the date 10 years after
the Effective Date.

Certain terms used herein are defined as set forth in Section
11.

     2.   ADMINISTRATION; ELIGIBILITY.

The Plan shall be administered by a Committee; provided,
however, that, if at any time no Committee shall be in office,
the Plan shall be administered by the Board.  The Plan may be
administered by different Committees with respect to different
groups of Eligible Individuals.  As used herein, the term
"Administrator" means the Board or any of its Committees as
shall be administering the Plan.

The Administrator shall have plenary authority to grant Awards
pursuant to the terms of the Plan to Eligible Individuals.
Participation shall be limited to such persons as are selected
by the Administrator.  Awards may be granted as alternatives
to, in exchange or substitution for, or replacement of, awards
outstanding under the Plan or any other plan or arrangement of
the Company or a Subsidiary (including a plan or arrangement of
a business or entity, all or a portion of which is acquired by
the Company or a Subsidiary).  The provisions of Awards need
not be the same with respect to each Participant.

Among other things, the Administrator shall have the authority,
subject to the terms of the Plan:

          (a)  to select the Eligible Individuals to whom
          Awards may from time to time be granted;

          (b)  to determine whether and to what extent Stock
          Options, Stock Appreciation Rights, Stock Awards
          or any combination thereof are to be granted
          hereunder;

          (c)  to determine the number of shares of Stock to be
          covered by each Award granted hereunder;

          (d)  to approve forms of agreement for use under the
          Plan;
          (e)  to determine the terms and conditions, not
          inconsistent with the terms of this Plan, of any
          Award granted hereunder (including, but not
          limited to, the option price, any vesting
          restriction or limitation, any vesting
          acceleration or forfeiture waiver and any right
          of repurchase, right of first refusal or other
          transfer restriction regarding any Award and the
          shares of Stock relating thereto, based on such
          factors or criteria as the Administrator shall
          determine);

          (f)  subject to Section 8(a), to modify, amend or
          adjust the terms and conditions of any Award, at
          any time or from time to time, including, but
          not limited to, with respect to (i) performance
          goals and targets applicable to performance-
          based Awards pursuant to the terms of the Plan
          and (ii) extension of the post-termination
          exercisability period of Stock Options;

          (g)  to determine to what extent and under what
          circumstances Stock and other amounts payable
          with respect to an Award shall be deferred;

          (h)  to determine the Fair Market Value; and

          (i)  to determine the type and amount of
          consideration to be received by the Company for
          any Stock Award issued under Section 6.

The Administrator shall have the authority to adopt, alter and
repeal such administrative rules, guidelines and practices
governing the Plan as it shall, from time to time, deem
advisable, to interpret the terms and provisions of the Plan
and any Award issued under the Plan (and any agreement relating
thereto) and to otherwise supervise the administration of the
Plan.

Except to the extent prohibited by applicable law, the
Administrator may allocate all or any portion of its
responsibilities and powers to any one or more of its members
and may delegate all or any portion of its responsibilities and
powers to any other person or persons selected by it. Any such
allocation or delegation may be revoked by the Administrator at
any time.  The Administrator may authorize any one or more of
its members or any officer of the Company to execute and
deliver documents on behalf of the Administrator.

Any determination made by the Administrator or pursuant to
delegated authority pursuant to the provisions of the Plan with
respect to any Award shall be made in the sole discretion of
the Administrator or such delegate at the time of the grant of
the Award or, unless in contravention of any express term of
the Plan, at any time thereafter. All decisions made by the
Administrator or any appropriately delegated officer pursuant
to the provisions of the Plan shall be final and binding on all
persons, including the Company and Participants.

No member of the Administrator, and no officer of the Company,
shall be liable for any action taken or omitted to be taken by
such individual or by any other member of the Administrator or
officer of the Company in connection with the performance of
duties under this Plan, except for such individual's own
willful misconduct or as expressly provided by law.

     3.   STOCK SUBJECT TO PLAN.

Subject to adjustment as provided in this Section 3, the
aggregate number of shares of Stock which may be delivered
under the Plan shall not exceed 3 million shares.  Such shares
may consist, in whole or in part, of authorized but unissued
shares or treasury shares.

To the extent any shares of Stock covered by an Award are not
delivered to a Participant or beneficiary thereof because the
Award expires, is forfeited, canceled or otherwise terminated,
or the shares of Stock are not delivered because the Award is
settled in cash or used to satisfy the applicable tax
withholding obligation, such shares shall not be deemed to have
been delivered for purposes of determining the maximum number
of shares of Stock available for delivery under the Plan.  If
the exercise price of any Stock Option is satisfied by
tendering shares of Stock to the Company (by actual delivery or
by attestation), only the number of shares of Stock issued net
of the shares of Stock tendered shall be deemed delivered for
purposes of determining the maximum number of shares of Stock
available for delivery under the Plan.

Subject to adjustment as provided in this Section 3, the
maximum number of shares that may be covered by Stock Options,
Stock Appreciation Rights and Stock Awards, in the aggregate,
granted to any one Participant during any calendar year shall
be 300,000 shares.

In the event of any Company stock dividend, stock split,
combination or exchange of shares, recapitalization or other
change in the capital structure of the Company, corporate
separation or division of the Company (including, but not
limited to, a split-up, spin-off, split-off or distribution to
Company stockholders other than a normal cash dividend), sale
by the Company of all or a substantial portion of its assets
(measured on either a stand-alone or consolidated basis),
reorganization, rights offering, partial or complete
liquidation, or any other corporate transaction, Company share
offering or other event involving the Company and having an
effect similar to any of the foregoing, the Administrator may
make such substitution or adjustments in the (A) number and
kind of shares that may be delivered under the Plan, (B)
maximum imposed in the immediately preceding paragraph, (C)
number and kind of shares subject to outstanding Awards, (D)
exercise price of outstanding Stock Options and Stock
Appreciation Rights and (E) other characteristics or terms of
the Awards as it may determine appropriate in its sole
discretion to equitably reflect such corporate transaction,
share offering or other event; provided, however, that the
number of shares subject to any Award shall always be a whole
number.

     4.   STOCK OPTIONS.

Stock Options may be granted alone or in addition to other
Awards granted under the Plan and may be of two types:
Incentive Stock Options and Non-Qualified Stock Options. Any
Stock Option granted under the Plan shall be in such form as
the Administrator may from time to time approve.

The Administrator shall have the authority to grant any
Participant Incentive Stock Options, Non-Qualified Stock
Options or both types of Stock Options (in each case with or
without Stock Appreciation Rights).  Incentive Stock Options
may be granted only to employees of the Company and its
Subsidiaries. To the extent that any Stock Option is not
designated as an Incentive Stock Option or, even if so
designated, does not qualify as an Incentive Stock Option, it
shall constitute a Non-Qualified Stock Option.  Incentive Stock
Options may be granted only within 10 years from the date the
Plan is adopted, or the date the Plan is approved by the
Company's stockholders, whichever is earlier.

Stock Options shall be evidenced by option agreements, each in
a form approved by the Administrator. An option agreement shall
indicate on its face whether it is intended to be an agreement
for an Incentive Stock Option or a Non-Qualified Stock Option.
The grant of a Stock Option shall occur as of the date the
Administrator determines.

Anything in the Plan to the contrary notwithstanding, no term
of the Plan relating to Incentive Stock Options shall be
interpreted, amended or altered, nor shall any discretion or
authority granted under the Plan be exercised, so as to
disqualify the Plan under Section 422 of the Code or, without
the consent of the Optionee affected, to disqualify any
Incentive Stock Option under Section 422 of the Code.

To the extent that the aggregate Fair Market Value of Stock
with respect to which Incentive Stock Options are exercisable
for the first time by a Participant during any calendar year
(under all plans of the Company) exceeds $100,000, such Stock
Options shall be treated as Non-Qualified Stock Options.

Stock Options granted under this Section 4 shall be subject to
the following terms and conditions and shall contain such
additional terms and conditions as the Administrator shall deem
desirable:

          (a)  Exercise Price.  The exercise price per share of
          Stock purchasable under a Stock Option shall be
          determined by the Administrator and shall not be
          less than the Fair Market Value of the Stock on
          the date of grant; provided that if the Stock
          Option is granted in connection with the
          recipient's hiring, promotion or similar event,
          the exercise price shall not be less than the
          Fair Market Value of the Stock on the date of
          such hiring, promotion or similar event so long
          as the grant of the Stock Option occurs not more
          than 90 days after the date of such hiring,
          promotion or similar event.  If the Stock Option
          is intended to qualify as an Incentive Stock
          Option, the exercise price per share shall be
          not less than the Fair Market Value per share on
          the date the Stock Option is granted, or if
          granted to an individual who is a Ten Percent
          Holder, not less than 110% of such Fair Market
          Value per share.

          (b)  Option Term.  The term of each Stock Option
          shall be fixed by the Administrator, but no
          Incentive Stock Option shall be exercisable more
          than 10 years (or five years in the case of an
          individual who is a Ten Percent Holder) after
          the date the Incentive Stock Option is granted.

          (c)  Exercisability.  Except as otherwise provided
          herein, Stock Options shall be exercisable at
          such time or times, and subject to such terms
          and conditions, as shall be determined by the
          Administrator. If the Administrator provides
          that any Stock Option is exercisable only in
          installments, the Administrator may at any time
          waive such installment exercise provisions, in
          whole or in part, based on such factors as the
          Administrator may determine.  In addition, the
          Administrator may at any time, in whole or in
          part, accelerate the exercisability of any Stock
          Option.

          (d)  Method of Exercise.  Subject to the provisions
          of this Section 4, Stock Options may be
          exercised, in whole or in part, at any time
          during the option term by giving written notice
          of exercise to the Company specifying the number
          of shares of Stock subject to the Stock Option
          to be purchased.

          The exercise price of any Stock Option shall be
          paid in full in cash (by certified or bank check
          or such other instrument as the Company may
          accept) or, unless otherwise provided in the
          applicable option agreement, by one or more of
          the following: (i) in the form of unrestricted
          Stock already owned by the Optionee (or, in the
          case of the exercise of a Non-Qualified Stock
          Option, Restricted Stock subject to a Stock
          Award hereunder) based in any such instance on
          the Fair Market Value of the Stock on the date
          the Stock Option is exercised; (ii) by
          certifying ownership of shares of Stock owned by
          the Optionee to the satisfaction of the
          Administrator for later delivery to the Company
          as specified by the Company; (iii) by
          irrevocably authorizing a third party to sell
          shares of Stock (or a sufficient portion of the
          shares) acquired upon exercise of the Stock
          Option and remit to the Company a sufficient
          portion of the sale proceeds to pay the entire
          exercise price and any tax withholding resulting
          from such exercise; or (iv) by any combination
          of cash and/or any one or more of the methods
          specified in clauses (i), (ii) and (iii).
          Notwithstanding the foregoing, a form of payment
          shall not be permitted to the extent it would
          cause the Company to recognize a compensation
          expense (or additional compensation expense)
          with respect to the Stock Option for financial
          reporting purposes.

          If payment of the option exercise price of a
          Non-Qualified Stock Option is made in whole or
          in part in the form of Restricted Stock, the
          number of shares of Stock to be received upon
          such exercise equal to the number of shares of
          Restricted Stock used for payment of the option
          exercise price shall be subject to the same
          forfeiture restrictions to which such Restricted
          Stock was subject, unless otherwise determined
          by the Administrator.

          No shares of Stock shall be issued upon exercise
          of a Stock Option until full payment therefor
          has been made.  Upon exercise of a Stock Option
          (or a portion thereof), the Company shall have a
          reasonable time to issue the Stock for which the
          Stock Option has been exercised.  An Optionee
          shall have all rights of a stockholder of the
          Company holding the Stock (including, if
          applicable, the right to vote the shares and the
          right to receive dividends), when the Optionee
          has given written notice of exercise and has
          tendered payment in full for such shares.

          (e)  Transferability of Stock Options.  Except as
          otherwise provided in the applicable option
          agreement, a Non-Qualified Stock Option (i)
          shall be transferable by the Optionee to a
          Family Member of the Optionee, provided that (A)
          any such transfer shall be by gift with no
          consideration and (B) no subsequent transfer of
          such Stock Option shall be permitted other than
          by will or the laws of descent and distribution,
          and (ii) shall not otherwise be transferable
          except by will or the laws of descent and
          distribution.  An Incentive Stock Option shall
          not be transferable except by will or the laws
          of descent and distribution.  A Stock Option
          shall be exercisable, during the Optionee's
          lifetime, only by the Optionee or by the
          guardian or legal representative of the
          Optionee, it being understood that the terms
          "holder" and "Optionee" include the guardian and
          legal representative of the Optionee named in
          the applicable option agreement and any person
          to whom the Stock Option is transferred (X)
          pursuant to the first sentence of this Section
          4(e) or pursuant to the applicable option
          agreement or (Y) by will or the laws of descent
          and distribution.  Notwithstanding the
          foregoing, references herein to the termination
          of an Optionee's employment or provision of
          services shall mean the termination of
          employment or provision of services of the
          person to whom the Stock Option was originally
          granted.

          (f)  Termination by Death.  Unless otherwise provided
          in the applicable option agreement, if an
          Optionee's employment or provision of services
          terminates by reason of death, any Stock Option
          held by such Optionee may thereafter be
          exercised, to the extent then exercisable, or on
          such accelerated basis as the Administrator may
          determine, for a period of one year from the
          date of such death or until the expiration of
          the stated term of such Stock Option, whichever
          period is shorter.  In the event of termination
          of employment or provision of services due to
          death, if an Incentive Stock Option is exercised
          after the expiration of the exercise periods
          that apply for purposes of Section 422 of the
          Code, such Stock Option will thereafter be
          treated as a Non-Qualified Stock Option.

          (g)  Termination by Reason of Disability.  Unless
          otherwise provided in the applicable option
          agreement, if an Optionee's employment or
          provision of services terminates by reason of
          Disability, any Stock Option held by such
          Optionee may thereafter be exercised by the
          Optionee, to the extent it was exercisable at
          the time of termination, or on such accelerated
          basis as the Administrator may determine, for a
          period of three years from the date of such
          termination of employment or provision of
          services or until the expiration of the stated
          term of such Stock Option, whichever period is
          shorter; provided, however, that if the Optionee
          dies within such period, an unexercised Stock
          Option held by such Optionee shall,
          notwithstanding the expiration of such period,
          continue to be exercisable to the extent to
          which it was exercisable at the time of death
          for a period of one year from the date of such
          death or until the expiration of the stated term
          of such Stock Option, whichever period is
          shorter.  In the event of termination of
          employment or provision of services by reason of
          Disability, if an Incentive Stock Option is
          exercised after the expiration of the exercise
          periods that apply for purposes of Section 422
          of the Code, such Stock Option will thereafter
          be treated as a Non-Qualified Stock Option.

          (h)  Termination by Reason of Retirement.  Unless
          otherwise provided in the applicable  option
          agreement, if an Optionee's employment or
          provision of services terminates by reason of
          Retirement, any Stock Option held by such
          Optionee may thereafter be exercised by the
          Optionee, to the extent it was exercisable at
          the time of such Retirement, or on such
          accelerated basis as the Administrator may
          determine, for a period of three years from the
          date of such termination of employment or
          provision of services or until the expiration of
          the stated term of such Stock Option, whichever
          period is shorter; provided, however, that if
          the Optionee dies within such period, any
          unexercised Stock Option held by such Optionee
          shall, notwithstanding the expiration of such
          period, continue to be exercisable to the extent
          to which it was exercisable at the time of death
          for a period of one year from the date of such
          death or until the expiration of the stated term
          of such Stock Option, whichever period is
          shorter. In the event of termination of
          employment or provision of services by reason of
          Retirement, if an Incentive Stock Option is
          exercised after the expiration of the exercise
          periods that apply for purposes of Section 422
          of the Code, such Stock Option will thereafter
          be treated as a Non-Qualified Stock Option.

          (i)  Other Termination. Unless otherwise provided in
          the applicable option agreement, if an
          Optionee's employment or provision of services
          terminates for any reason other than death,
          Disability or Retirement, any Stock Option held
          by such Optionee shall thereupon terminate;
          provided, however, that, if such termination of
          employment or provision of services is
          involuntary on the part of the Optionee and
          without Cause, such Stock Option, to the extent
          then exercisable, or on such accelerated basis
          as the Administrator may determine, may be
          exercised for the lesser of 90 days from the
          date of such termination of employment or
          provision of services or the remainder of such
          Stock Option's term, and provided, further, that
          if the Optionee dies within such period, any
          unexercised Stock Option held by such Optionee
          shall, notwithstanding the expiration of such
          period, continue to be exercisable to the extent
          to which it was exercisable at the time of death
          for a period of one year from the date of such
          death or until the expiration of the stated term
          of such Stock Option, whichever period is
          shorter.  In the event of termination of
          employment or provision of services for any
          reason other than death, Disability or
          Retirement, if an Incentive Stock Option is
          exercised after the expiration of the exercise
          periods that apply for purposes of Section 422
          of the Code, such Stock Option will thereafter
          be treated as a Non-Qualified Stock Option.

          (j)  Exception to Termination.  Notwithstanding
          anything in this Plan to the contrary, if an
          Optionee's employment by, or provision of
          services to, the Company or an Affiliate ceases
          as a result of a transfer of such Optionee from
          the Company to an Affiliate, or from an
          Affiliate to the Company, such transfer will not
          be a termination of employment or provision of
          services for purposes of this Plan, unless
          expressly determined otherwise by the
          Administrator.  A termination of employment or
          provision of services shall occur for an
          Optionee who is employed by, or provides
          services to,  an Affiliate of the Company if the
          Affiliate shall cease to be an Affiliate and the
          Optionee shall not immediately thereafter be
          employed by, or provide services to, the Company
          or an Affiliate.

          (k)  Participant Loans.  The Administrator may in its
          discretion authorize the Company to:

               (i)  lend to an Optionee an amount equal to
               such portion of the exercise price of a
               Stock Option as the Administrator may
               determine; or

               (ii) guarantee a loan obtained by an Optionee
               from a third-party for the purpose of
               tendering such exercise price.

          The terms and conditions of any loan or
          guarantee, including the term, interest rate,
          whether the loan is with recourse against the
          Optionee and any security interest thereunder,
          shall be determined by the Administrator, except
          that no extension of credit or guarantee shall
          obligate the Company for an amount to exceed the
          lesser of (i) the aggregate Fair Market Value on
          the date of exercise, less the par value, of the
          shares of Stock to be purchased upon the
          exercise of the Stock Option, and (ii) the
          amount permitted under applicable laws or the
          regulations and rules of the Federal Reserve
          Board and any other governmental agency having
          jurisdiction.

     5.   STOCK APPRECIATION RIGHTS.

Stock Appreciation Rights may be granted either on a stand-
alone basis or in conjunction with all or part of any Stock
Option granted under the Plan.  In the case of a Non-Qualified
Stock Option, such rights may be granted either at or after the
time of grant of such Stock Option.  In the case of an
Incentive Stock Option, such rights may be granted only at the
time of grant of such Stock Option. A Stock Appreciation Right
shall terminate and no longer be exercisable as determined by
the Administrator, or, if granted in conjunction with all or
part of any Stock Option, upon the termination or exercise of
the related Stock Option.

A Stock Appreciation Right  may be exercised by a Participant
as determined by the Administrator in accordance with this
Section 5, and, if granted in conjunction with all or part of
any Stock Option, by surrendering the applicable portion of the
related Stock Option in accordance with procedures established
by the Administrator. Upon such exercise and surrender, the
Participant shall be entitled to receive an amount determined
in the manner prescribed in this Section 5.  Stock Options
which have been so surrendered, if any, shall no longer be
exercisable to the extent the related Stock Appreciation Rights
have been exercised.

Stock Appreciation Rights shall be evidenced by agreements,
each in a form approved by the Administrator, and shall be
subject to such terms and conditions as shall be determined by
the Administrator, including the following:

               (i)  Stock Appreciation Rights granted on a
               stand-alone basis shall be exercisable
               only at such time or times and to such
               extent as determined by the
               Administrator. Stock Appreciation Rights
               granted in conjunction with all or part
               of any Stock Option shall be exercisable
               only at the time or times and to the
               extent that the Stock Options to which
               they relate are exercisable in accordance
               with the provisions of Section 4 and this
               Section 5.

               (ii) Upon the exercise of a Stock Appreciation
               Right, a Participant shall be entitled to
               receive an amount in cash, shares of
               Stock or both, which in the aggregate are
               equal in value to the excess of the Fair
               Market Value of one share of Stock over
               (i) such value per share of Stock as
               shall be determined by the Administrator
               at the time of grant (if the Stock
               Appreciation Right is granted on a stand-
               alone basis), or (ii) the exercise price
               per share specified in the related Stock
               Option (if the Stock Appreciation Right
               is granted in conjunction with all or
               part of any Stock Option), multiplied by
               the number of shares in respect of which
               the Stock Appreciation Right shall have
               been exercised, with the Administrator
               having the right to determine the form of
               payment.

               (iii)     A Stock Appreciation Right shall be
               transferable only to, and shall be
               exercisable only by, such persons
               permitted in accordance with Section
               4(e).

     6.   STOCK AWARDS OTHER THAN OPTIONS.

Stock Awards may be directly issued under the Plan, subject to
such terms, conditions, performance requirements, restrictions,
forfeiture provisions, contingencies and limitations as the
Administrator shall determine.  Stock Awards may be issued
which are fully and immediately vested upon issuance or which
vest in one or more installments over the Participant's period
of employment or other service to the Company or upon the
attainment of specified performance objectives, or the Company
may issue Stock Awards which entitle the Participant to receive
a specified number of vested shares of Stock upon the
attainment of one or more performance goals or service
requirements established by the Administrator.

Shares representing a Stock Award shall be evidenced in such
manner as the Administrator may deem appropriate, including
book-entry registration or issuance of one or more certificates
(which may bear appropriate legends referring to the terms,
conditions and restrictions applicable to such Award).  The
Administrator may require that any such certificates be held in
custody by the Company until any restrictions thereon shall
have lapsed and that the Participant deliver a stock power,
endorsed in blank, relating to the Stock covered by such Award.

A Stock Award may be issued in exchange for any consideration
which the Administrator may deem appropriate in each individual
instance, including, without limitation:

               (i)  cash or cash equivalents;

               (ii) past services rendered to the Company or
               any Affiliate; or

               (iii)     future services to be rendered to the
               Company or any Affiliate (provided that,
               in such case, the par value of the stock
               subject to such Stock Award shall be paid
               in cash or cash equivalents, unless the
               Administrator provides otherwise).

A Stock Award that is subject to restrictions on transfer
and/or forfeiture provisions may be referred to as an award of
"Restricted Stock" or "Restricted Stock Units."

     7.   CHANGE IN CONTROL PROVISIONS.

          (a)  Impact of Event.  Notwithstanding any other
          provision of the Plan to the contrary, in the
          event of a Change in Control:

               (i)  Any Stock Options and Stock Appreciation
               Rights outstanding as of the date such
               Change in Control is determined to have
               occurred and not then exercisable and
               vested shall become fully exercisable and
               vested to the full extent of the original
               grant;

               (ii) The restrictions applicable to any
               outstanding Stock Award shall lapse, and
               the Stock relating to such Award shall
               become free of all restrictions and
               become fully vested and transferable to
               the full extent of the original grant;

               (iii)     All outstanding repurchase rights of the
               Company with respect to any outstanding
               Awards shall terminate; and

               (iv) Outstanding Awards shall be subject to
               any agreement of merger or reorganization
               that effects such Change in Control,
               which agreement shall provide for:

                    (A)  The continuation of the
                    outstanding Awards by the
                    Company, if the Company is a
                    surviving corporation;

                    (B)  The assumption of the outstanding
                    awards by the surviving
                    corporation or its parent or
                    subsidiary;

                    (C)  The substitution by the surviving
                    corporation or its parent or
                    subsidiary of equivalent awards
                    for the outstanding Awards; or

                    (D)  Settlement of each share of Stock
                    subject to an outstanding Award
                    for the Change in Control Price
                    (less, to the extent applicable,
                    the per share exercise price).

               (v)  In the absence of any agreement of merger
               or reorganization effecting such Change
               in Control, each share of Stock subject
               to an outstanding Award shall be settled
               for the Change in Control Price (less, to
               the extent applicable, the per share
               exercise price), or, if the per share
               exercise price equals or exceeds the
               Change in Control Price, the outstanding
               Award shall terminate and be canceled.

          (b)  Definition of Change in Control.  For purposes
          of the Plan, a "Change in Control" shall mean
          the happening of any of the following events:

               (i)  An acquisition by any individual, entity
               or group (within the meaning of Section
               13(d)(3) or 14(d)(2) of the Exchange Act)
               (a "Person") of beneficial ownership
               (within the meaning of Rule 13d-3
               promulgated under the Exchange Act) of
               35% or more of either (1) the then
               outstanding shares of common stock of the
               Company (the "Outstanding Company Common
               Stock") or (2) the combined voting power
               of the then outstanding voting securities
               of the Company entitled to vote generally
               in the election of directors (the
               "Outstanding Company Voting Securities");
               excluding, however, the following: (1)
               any acquisition directly from the
               Company, other than an acquisition by
               virtue of the exercise of a conversion
               privilege unless the security being so
               converted was itself acquired directly
               from the Company, (2) any acquisition by
               the Company; (3) any acquisition by any
               employee benefit plan (or related trust)
               sponsored or maintained by the Company or
               any corporation controlled by the
               Company; or (4) any acquisition by any
               Person pursuant to a transaction which
               complies with clauses (1), (2) and (3) of
               subsection (iii) of this Section 7(b); or

               (ii) Within any period of 24 consecutive
               months, a change in the composition of
               the Board such that the individuals who,
               immediately prior to such period,
               constituted the Board (such Board shall
               be hereinafter referred to as the
               "Incumbent Board") cease for any reason
               to constitute at least a majority of the
               Board; provided, however, for purposes of
               this Section 7(b), that any individual
               who becomes a member of the Board during
               such period, whose election, or
               nomination for election by the Company's
               stockholders, was approved by a vote of
               at least a majority of those individuals
               who are members of the Board and who were
               also members of the Incumbent Board (or
               deemed to be such pursuant to this
               proviso) shall be considered as though
               such individual were a member of the
               Incumbent Board; but, provided further,
               that any such individual whose initial
               assumption of office occurs as a result
               of either an actual or threatened
               election contest (as such terms are used
               in Rule 14a-11 of Regulation 14A
               promulgated under the Exchange Act) or
               other actual or threatened solicitation
               of proxies or consents by or on behalf of
               a Person other than the Board shall not
               be so considered as a member of the
               Incumbent Board; or

               (iii)     The approval by the stockholders of the
               Company of a reorganization, merger or
               consolidation or sale or other
               disposition of all or substantially all
               of the assets of the Company ("Corporate
               Transaction"); excluding, however, such a
               Corporate Transaction pursuant to which
               (1) all or substantially all of the
               individuals and entities who are the
               beneficial owners, respectively, of the
               Outstanding Company Common Stock and
               Outstanding Company Voting Securities
               immediately prior to such Corporate
               Transaction will beneficially own,
               directly or indirectly, more than 60% of,
               respectively, the outstanding shares of
               common stock, and the combined voting
               power of the then outstanding voting
               securities entitled to vote generally in
               the election of directors, as the case
               may be, of the corporation resulting from
               such Corporate Transaction (including,
               without limitation, a corporation which
               as a result of such transaction owns the
               Company or all or substantially all of
               the Company's assets, either directly or
               through one or more subsidiaries) in
               substantially the same proportions as
               their ownership, immediately prior to
               such Corporate Transaction, of the
               Outstanding Company Common Stock and
               Outstanding Company Voting Securities, as
               the case may be, (2) no Person (other
               than the Company, any employee benefit
               plan (or related trust) sponsored or
               maintained by the Company, any
               corporation controlled by the Company, or
               such corporation resulting from such
               Corporate Transaction) will beneficially
               own, directly or indirectly, more than
               35% of, respectively, the outstanding
               shares of common stock of the corporation
               resulting from such Corporate Transaction
               or the combined voting power of the
               outstanding voting securities of such
               corporation entitled to vote generally in
               the election of directors, except to the
               extent that such ownership existed with
               respect to the Company prior to the
               Corporate Transaction, and (3)
               individuals who were members of the Board
               immediately prior to the approval by the
               stockholders of the Corporation of such
               Corporate Transaction will constitute at
               least a majority of the members of the
               board of directors of the corporation
               resulting from such Corporate
               Transaction; or

                (iv)     The approval by the stockholders of the
               Company of a complete liquidation or
               dissolution of the Company, other than to
               a corporation pursuant to a transaction
               which would comply with clauses (1), (2)
               and (3) of subsection (iii) of this
               Section 7(b), assuming for this purpose
               that such transaction were a Corporate
               Transaction.

          (c)  Change in Control Price.  For purposes of the
          Plan, "Change in Control Price" means the
          highest of (i) the highest reported sales price,
          regular way, of a share of Stock in any
          transaction reported on the New York Stock
          Exchange Composite Tape or other national
          securities exchange on which such shares are
          listed or on Nasdaq, as applicable, during the
          60-day period prior to and including the date of
          a Change in Control, (ii) if the Change in
          Control is the result of a tender or exchange
          offer or a Corporate Transaction, the highest
          price per share of Stock paid in such tender or
          exchange offer or Corporate Transaction, and
          (iii) the Fair Market Value of a share of Stock
          upon the Change in Control.  To the extent that
          the consideration paid in any such transaction
          described above consists all or in part of
          securities or other non-cash consideration, the
          value of such securities or other non-cash
          consideration shall be determined in the sole
          discretion of the Board.

     2.   AUTOMATIC ANNUAL OPTION GRANTS TO NON-EMPLOYEE
     DIRECTORS.

          (a)  Initial Grant.  Any person who initially becomes
          a Non-Employee Director after the Effective Date
          shall automatically be granted a Non-Qualified
          Stock Option to purchase 75,000 shares of Stock
          having an exercise price per share equal to the
          Fair Market Value of the Stock as of the date
          such person initially becomes a Non-Employee
          Director.

          (b)  Annual Grants.  On the third business day
          following the Company's annual meeting of
          stockholders, each person who serves as a Non-
          Employee Director on such date shall
          automatically receive a Non-Qualified Stock
          Option to purchase 30,000 shares of Stock.

          (c)  Exercisability.  Any Stock Option granted to a
          Non-Employee Director under this Section 8 shall
          be exercisable in full as of the grant date.
          Notwithstanding the foregoing, in the event that
          such Non-Employee Director's service as a
          Director has terminated prior to the first
          anniversary of the grant date of such Stock
          Option for any reason other than death,
          Disability or retirement at or after age 65, the
          Company shall have the right to repurchase the
          shares obtained upon exercise of such Stock
          Option at a price per share equal to the lesser
          of (i) the exercise price per share under such
          Stock Option or (ii) the Fair Market Value per
          share as of the date of such termination (the
          "Repurchase Right").  Notwithstanding the
          foregoing, the Administrator may at any time
          waive the Repurchase Right, in whole or in part,
          based on such factors as the Administrator may
          determine.

          (d)  Termination by Death, Disability or Retirement.
          The Repurchase Right of the Company with respect
          to any Stock Option granted to a Non-Employee
          Director under this Section 8 shall terminate in
          full upon the termination of such Non-Employee
          Director's service as a Director because of
          death, Disability or retirement at or after age
          65.

          (e)  Method of Exercise.  Any Stock Option granted to
          a Non-Employee Director under this Section 8 may
          be exercised in accordance with the terms and
          procedures described in Section 4(d).

          (f)  Option Term.  Any Stock Option granted to a Non-
          Employee Director under this Section 8 shall
          terminate on the earliest of (i) the tenth
          anniversary of the grant date, (ii) the date 90
          days after the termination of such Non-Employee
          Director's service as a Director for any reason
          other than death, Disability or retirement at or
          after age 65 or (iii) the date one year after
          the termination of such Non-Employee Director's
          service as a Director because of death,
          Disability or retirement at or after age 65.

          (g)  Transferability.  A Stock Option granted to a
          Non-Employee Director under this Section 8 shall
          be transferable by such Non-Employee Director to
          the same extent as a Stock Option granted
          pursuant to Section 4, and shall be exercisable
          by any such person as would  be permitted to
          exercise such Stock Option if granted pursuant
          to Section 4, in each case as provided in
          Section 4(e).

     8.   MISCELLANEOUS.

          (a)  Amendment.  The Board may amend, alter, or
          discontinue the Plan, but no amendment,
          alteration or discontinuation shall be made
          which would adversely affect the rights of a
          Participant under an Award theretofore granted
          without the Participant's consent, except such
          an amendment (i) made to avoid an expense charge
          to the Company or an Affiliate, or (ii) made to
          permit the Company or an Affiliate a deduction
          under the Code.  No such amendment shall be made
          without the approval of the Company's
          stockholders to the extent such approval is
          required by law, agreement or the rules of any
          stock exchange or market on which the Stock is
          listed.

          The Administrator may amend the terms of any
          Stock Option or other Award theretofore granted,
          prospectively or retroactively, but no such
          amendment shall adversely affect the rights of
          the holder thereof without the holder's consent.

          Notwithstanding anything in the Plan to the
          contrary, if any right under this Plan would
          cause a transaction to be ineligible for pooling
          of interests accounting that would, but for the
          right hereunder, be eligible for such accounting
          treatment, the Administrator may modify or
          adjust the right so that pooling of interests
          accounting shall be available, including the
          substitution of Stock having a Fair Market Value
          equal to the cash otherwise payable hereunder
          for the right which caused the transaction to be
          ineligible for pooling of interests accounting.

          (b)  Unfunded Status of Plan.  It is intended that
          this Plan be an "unfunded" plan for incentive
          and deferred compensation.  The Administrator
          may authorize the creation of trusts or other
          arrangements to meet the obligations created
          under this Plan to deliver Stock or make
          payments, provided that, unless the
          Administrator otherwise determines, the
          existence of such trusts or other arrangements
          is consistent with the "unfunded" status of this
          Plan.

(c)  General Provisions.

               (i)  The Administrator may require each person
               purchasing or receiving shares pursuant
               to an Award to represent to and agree
               with the Company in writing that such
               person is acquiring the shares without a
               view to the distribution thereof. The
               certificates for such shares may include
               any legend which the Administrator deems
               appropriate to reflect any restrictions
               on transfer.

               All certificates for shares of Stock or
               other securities delivered under the Plan
               shall be subject to such stock transfer
               orders and other restrictions as the
               Administrator may deem advisable under
               the rules, regulations and other
               requirements of the Commission, any stock
               exchange or market on which the Stock is
               then listed and any applicable Federal or
               state securities law, and the
               Administrator may cause a legend or
               legends to be put on any such
               certificates to make appropriate
               reference to such restrictions.

               (ii) Nothing contained in the Plan shall
               prevent the Company or any Affiliate from
               adopting other or additional compensation
               arrangements for its employees.

               (iii)     The adoption of the Plan shall not confer
               upon any employee, director, consultant
               or advisor any right to continued
               employment, directorship or service, nor
               shall it interfere in any way with the
               right of the Company or any Subsidiary or
               Affiliate to terminate the employment or
               service of any employee, consultant or
               advisor at any time.

               (iv) No later than the date as of which an
               amount first becomes includible in the
               gross income of the Participant for
               Federal income tax purposes with respect
               to any Award under the Plan, the
               Participant shall pay to the Company, or
               make arrangements satisfactory to the
               Company regarding the payment of, any
               Federal, state, local or foreign taxes of
               any kind required by law to be withheld
               with respect to such amount. The
               obligations of the Company under the Plan
               shall be conditional on such payment or
               arrangements, and the Company, its
               Subsidiaries and its Affiliates shall, to
               the extent permitted by law, have the
               right to deduct any such taxes from any
               payment otherwise due to the Participant.
               The Administrator may establish such
               procedures as it deems appropriate for
               the settlement of withholding obligations
               with Stock.

               (v)  The Administrator shall establish such
               procedures as it deems appropriate for a
               Participant to designate a beneficiary to
               whom any amounts payable in the event of
               the Participant's death are to be paid.

               (vi) Any amounts owed to the Company or an
               Affiliate by the Participant of whatever
               nature may be offset by the Company from
               the value of any shares of Stock, cash or
               other thing of value under this Plan or
               an agreement to be transferred to the
               Participant, and no shares of Stock, cash
               or other thing of value under this Plan
               or an agreement shall be transferred
               unless and until all disputes between the
               Company and the Participant have been
               fully and finally resolved and the
               Participant has waived all claims to such
               against the Company or an Affiliate.

               (vii)     The grant of an Award shall in no way
               affect the right of the Company to
               adjust, reclassify, reorganize or
               otherwise change its capital or business
               structure or to merge, consolidate,
               dissolve, liquidate or sell or transfer
               all or any part of its business or
               assets.

               (viii)    If any payment or right accruing to a
               Participant under this Plan (without the
               application of this Section
               (9)(c)(viii)), either alone or together
               with other payments or rights accruing to
               the Participant from the Company or an
               Affiliate ("Total Payments") would
               constitute a "parachute payment" (as
               defined in Section 280G of the Code and
               regulations thereunder), such payment or
               right shall be reduced to the largest
               amount or greatest right that will result
               in no portion of the amount payable or
               right accruing under this Plan being
               subject to an excise tax under Section
               4999 of the Code or being disallowed as a
               deduction under Section 280G of the Code;
               provided, however, that the foregoing
               shall not apply to the extent provided
               otherwise in an Award or in the event the
               Participant is party to an agreement with
               the Company or an Affiliate that
               explicitly provides for an alternate
               treatment of payments or rights that
               would constitute "parachute payments."
               The determination of whether any
               reduction in the rights or payments under
               this Plan is to apply shall be made by
               the Administrator in good faith after
               consultation with the Participant, and
               such determination shall be conclusive
               and binding on the Participant.  The
               Participant shall cooperate in good faith
               with the Administrator in making such
               determination and providing the necessary
               information for this purpose.  The
               foregoing provisions of this Section
               9(c)(viii) shall apply with respect to
               any person only if, after reduction for
               any applicable Federal excise tax imposed
               by Section 4999 of the Code and Federal
               income tax imposed by the Code, the Total
               Payments accruing to such person would be
               less than the amount of the Total
               Payments as reduced, if applicable, under
               the foregoing provisions of this Plan and
               after reduction for only Federal income
               taxes.

               (ix) To the extent that the Administrator
               determines that the restrictions imposed
               by the Plan preclude the achievement of
               the material purposes of the Awards in
               jurisdictions outside the United States,
               the Administrator in its discretion may
               modify those restrictions as it
               determines to be necessary or appropriate
               to conform to applicable requirements or
               practices of jurisdictions outside of the
               United States.

               (x)  The headings contained in this Plan are
               for reference purposes only and shall not
               affect the meaning or interpretation of
               this Plan.

               (xi) If any provision of this Plan shall for
               any reason be held to be invalid or
               unenforceable, such invalidity or
               unenforceability shall not effect any
               other provision hereby, and this Plan
               shall be construed as if such invalid or
               unenforceable provision were omitted.

               (xii)     This Plan shall inure to the benefit of
               and be binding upon each successor and
               assign of the Company.  All obligations
               imposed upon a Participant, and all
               rights granted to the Company hereunder,
               shall be binding upon the Participant's
               heirs, legal representatives and
               successors.

               (xiii)    This Plan and each agreement granting an
               Award constitute the entire agreement
               with respect to the subject matter hereof
               and thereof, provided that in the event
               of any inconsistency between this Plan
               and such agreement, the terms and
               conditions of the Plan shall control.

               (xiv)     In the event there is an effective
               registration statement under the
               Securities Act pursuant to which shares
               of Stock shall be offered for sale in an
               underwritten offering, a Participant
               shall not, during the period requested by
               the underwriters managing the registered
               public offering, effect any public sale
               or distribution of shares of Stock
               received, directly or indirectly, as an
               Award or pursuant to the exercise or
               settlement of an Award.

               (xv) None of the Company, an Affiliate or the
               Administrator shall have any duty or
               obligation to disclose affirmatively to a
               record or beneficial holder of Stock or
               an Award, and such holder shall have no
               right to be advised of, any material
               information regarding the Company or any
               Affiliate at any time prior to, upon or
               in connection with receipt or the
               exercise of an Award or the Company's
               purchase of Stock or an Award from such
               holder in accordance with the terms
               hereof.

     9.   DEFERRAL OF AWARDS.

The Administrator (in its sole discretion) may permit a
Participant to:

          (a)  have cash that otherwise would be paid to such
          Participant as a result of the exercise of a
          Stock Appreciation Right or the settlement of a
          Stock Award credited to a deferred compensation
          account established for such Participant by the
          Administrator as an entry on the Company's
          books;

          (b)  have Stock that otherwise would be delivered to
          such Participant as a result of the exercise of
          a Stock Option or a Stock Appreciation Right
          converted into an equal number of Stock units;
          or

          (c)  have Stock that otherwise would be delivered to
          such Participant as a result of the exercise of
          a Stock Option or Stock Appreciation Right or
          the settlement of a Stock Award converted into
          amounts credited to a deferred compensation
          account established for such Participant by the
          Administrator as an entry on the Company's
          books.  Such amounts shall be determined by
          reference to the Fair Market Value of the Stock
          as of the date on which they otherwise would
          have been delivered to such Participant.

A deferred compensation account established under this Section
10 may be credited with interest or other forms of investment
return, as determined by the Administrator.  A Participant for
whom such an account is established shall have no rights other
than those of a general creditor of the Company.  Such an
account shall represent an unfunded and unsecured obligation of
the Company and shall be subject to the terms and conditions of
the applicable agreement between such Participant and the
Company.  If the deferral or conversion of Awards is permitted
or required, the Administrator (in its sole discretion) may
establish rules, procedures and forms pertaining to such
awards, including (without limitation) the settlement of
deferred compensation accounts established under this Section
10.

     10.  DEFINITIONS.

For purposes of this Plan, the following terms are defined as
set forth below:

          (a)  "Affiliate" means a corporation or other entity
          controlled by the Company and designated by the
          Administrator as such.

          (b)  "Award" means a Stock Appreciation Right, Stock
          Option or Stock Award.

(c)  "Board" means the Board of Directors of the
Company.

          (d)  "Cause" means (i) the conviction of the
          Participant for committing a felony under
          Federal law or the law of the state in which
          such action occurred, (ii) dishonesty in the
          course of fulfilling the Participant's duties as
          an employee or director of, or consultant or
          advisor to, the Company or (iii) willful and
          deliberate failure on the part of the
          Participant to perform such duties in any
          material respect.  Notwithstanding the
          foregoing, if the Participant and the Company or
          the Affiliate have entered into an employment or
          services agreement which defines the term
          "Cause" (or a similar term), such definition
          shall govern for purposes of determining whether
          such Participant has been terminated for Cause
          for purposes of this Plan.  The determination of
          Cause shall be made by the Administrator, in its
          sole discretion.

          (e)  "Code" means the Internal Revenue Code of 1986,
          as amended from time to time,  and any successor
          thereto.

          (f)  "Commission" means the Securities and Exchange
          Commission or any successor agency.

          (g)  "Committee" means a committee of Directors
          appointed by the Board to administer this Plan.
          With respect to Stock Options granted at the
          time the Company is publicly held, if any,
          insofar as the Committee is responsible for
          granting Options to Participants hereunder, it
          shall consist solely of two or more directors,
          each of whom is a "Non-Employee Director" within
          the meaning of Rule 16b-3 of the Securities
          Exchange Act and each of whom is also an
          "outside director" under Section 162(m) of the
          Code.

          (h)  "Company" means Othnet, Inc., a Delaware
          corporation.

          (i)  "Director" means a member of the Company's Board
          of Directors.

          (j)  "Disability" means mental or physical illness
          that entitles the Participant to receive
          benefits under the long-term disability plan of
          the Company or an Affiliate, or if the
          Participant is not covered by such a plan or the
          Participant is not an employee of the Company or
          an Affiliate, a mental or physical illness that
          renders a Participant totally and permanently
          incapable of performing the Participant's duties
          for the Company or an Affiliate; provided,
          however, that a Disability shall not qualify
          under this Plan if it is the result of (i) a
          willfully self-inflicted injury or willfully
          self-induced sickness; or (ii) an injury or
          disease contracted, suffered or incurred while
          participating in a criminal offense.
          Notwithstanding the foregoing, if the
          Participant and the Company or an Affiliate have
          entered into an employment or services agreement
          which defines the term "Disability" (or a
          similar term), such definition shall govern for
          purposes of determining whether such Participant
          suffers a Disability for purposes of this Plan.
          The determination of Disability shall be made by
          the Administrator, in its sole discretion.  The
          determination of Disability for purposes of this
          Plan shall not be construed to be an admission
          of disability for any other purpose.

(k)  "Effective Date" means March 22, 2001.

          (l)  "Eligible Individual" means any officer,
          employee or director of the Company or a
          Subsidiary or Affiliate, or any consultant or
          advisor providing services to the Company or a
          Subsidiary or Affiliate.

          (m)  "Exchange Act" means the Securities Exchange Act
          of 1934, as amended from time to time, and any
          successor thereto.

          (n)  "Fair Market Value" means, as of any given date,
          until such time as the Stock is traded on Nasdaq
          (or the principal stock exchange or market on
          which the Stock is then traded), the fair market
          value of the Stock as determined by the
          Administrator or under procedures established by
          the Administrator and thereafter, the mean
          between the highest and lowest reported sales
          prices of the Stock on Nasdaq (or the principal
          stock exchange or market on which the Stock is
          then traded) on the date as of which such value
          is being determined or the last previous day on
          which a sale was reported.

          (o)  "Family Member" means any child, stepchild,
          grandchild, parent, stepparent, grandparent,
          spouse, former spouse, sibling, niece, nephew,
          mother-in-law, father-in-law, son-in-law,
          daughter-in-law, brother-in-law or sister-in-law
          of a Participant (including adoptive
          relationships); any person sharing the
          Participant's household (other than a tenant or
          employee); any trust in which the Participant
          and any of these persons have all of the
          beneficial interest; any foundation in which the
          Participant and any of these persons control the
          management of the assets; any corporation,
          partnership, limited liability company or other
          entity in which the Participant and any of these
          other persons are the direct and beneficial
          owners of all of the equity interests (provided
          the Participant and these other persons agree in
          writing to remain the direct and beneficial
          owners of all such equity interests); and any
          personal representative of the Participant upon
          the Participant's death for purposes of
          administration of the Participant's estate or
          upon the Participant's incompetency for purposes
          of the protection and management of the assets
          of the Participant.

          (p)  "Incentive Stock Option" means any Stock Option
          intended to be and designated as an "incentive
          stock option" within the meaning of Section 422
          of the Code.

          (q)  "Nasdaq" means The Nasdaq Stock Market,
          including the Nasdaq National Market and the
          Nasdaq SmallCap Market.

          (r)  "Non-Employee Director" means a Director who is
          not an officer or employee of the Company.

          (s)  "Non-Qualified Stock Option" means any Stock
          Option that is not an Incentive Stock Option.

          (t)  "Optionee" means a person who holds a Stock
          Option.

          (u)  "Participant" means a person granted an Award.

          (v)  "Representative" means (i) the person or entity
          acting as the executor or administrator of a
          Participant's estate pursuant to the last will
          and testament of a Participant or pursuant to
          the laws of the jurisdiction in which the
          Participant had his or her primary residence at
          the date of the Participant's death; (ii) the
          person or entity acting as the guardian or
          temporary guardian of a Participant; (iii) the
          person or entity which is the beneficiary of the
          Participant upon or following the Participant's
          death; or (iv) any person to whom an Option has
          been transferred with the permission of the
          Administrator or by operation of law; provided
          that only one of the foregoing shall be the
          Representative at any point in time as
          determined under applicable law and recognized
          by the Administrator.

          (w)  "Retirement" means retirement from active
          employment under a pension plan of the Company
          or any subsidiary or Affiliate, or under an
          employment contract with any of them, or
          termination of employment or provision of
          services at or after age 55 under circumstances
          which the Administrator, in its sole discretion,
          deems equivalent to retirement.

          (x)  "Stock" means Common Stock, par value $.001 per
          share, of the Company.

          (y)  "Stock Appreciation Right" means a right granted
          under Section 5.

          (z)  "Stock Award" means an Award, other than a Stock
          Option or Stock Appreciation Right, made in
          Stock or denominated in shares of Stock.

          (aa) "Stock Option" means an option granted under
          Section 4.

          (bb) "Subsidiary" means any company during any period
          in which it is a "subsidiary corporation" (as
          such term is defined in Section 424(f) of the
          Code) with respect to the Company.

          (cc) "Ten Percent Holder" means an individual who
          owns, or is deemed to own, stock possessing more
          than 10% of the total combined voting power of
          all classes of stock of the Company or of any
          parent or subsidiary corporation of the Company,
          determined pursuant to the rules applicable to
          Section 422(b)(6) of the Code.

In addition, certain other terms used herein have the
definitions given to them in the first places in which they are
used.

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