Document:

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                                                                    Exhibit 4(k)

                               Russell Corporation
                             2000 Stock Option Plan

                                TABLE OF CONTENTS

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ARTICLE 1. ESTABLISHMENT, EFFECTIVE DATE, OBJECTIVES AND DURATION.................................................1
   1.1   Establishment of the Plan................................................................................1
   1.2   Objectives of the Plan...................................................................................1
   1.3   Duration of the Plan.....................................................................................1

ARTICLE 2. DEFINITIONS............................................................................................1

ARTICLE 3. ADMINISTRATION.........................................................................................7
   3.1   Committee................................................................................................7
   3.2   Powers of Committee......................................................................................7

ARTICLE 4. SHARES SUBJECT TO THE PLAN.............................................................................8
   4.1   Number of Shares Available...............................................................................8
   4.2   Adjustments in Authorized Shares.........................................................................9
   4.3   Treasury Shares Only.....................................................................................9

ARTICLE 5. ELIGIBILITY AND GENERAL CONDITIONS OF AWARDS...........................................................9
   5.1   Eligibility..............................................................................................9
   5.2   Grant Date...............................................................................................9
   5.3   Maximum Term.............................................................................................9
   5.4   Award Agreement..........................................................................................9
   5.5   Restrictions on Share Transferability....................................................................9
   5.6   Termination of Affiliation...............................................................................9
   5.7   Nontransferability of Awards............................................................................11

ARTICLE 6. STOCK OPTIONS.........................................................................................12
   6.1   Grant of Options........................................................................................12
   6.2   Award Agreement.........................................................................................12
   6.3   Option Price............................................................................................12
   6.4   Grant of Reload Options.................................................................................13
   6.5   Conditions on Reload Options............................................................................13
   6.6   Payment.................................................................................................13

ARTICLE 7. STOCK APPRECIATION RIGHTS.............................................................................14
   7.1   Grant of SARs...........................................................................................14
   7.2   Exercise of Tandem SARs.................................................................................14
   7.3   Payment of SAR Amount...................................................................................14

ARTICLE 8. RESTRICTED SHARES.....................................................................................15
   8.1   Grant of Restricted Shares..............................................................................15
   8.2   Award Agreement.........................................................................................15
   8.3   Consideration...........................................................................................15
   8.4   Effect of Forfeiture....................................................................................15
   8.5   Escrow; Legend..........................................................................................15

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ARTICLE 9. PERFORMANCE UNITS AND PERFORMANCE SHARES..............................................................15
   9.1   Grant of Performance Units and Performance Shares.......................................................15
   9.2   Value/Performance Goals.................................................................................15
   9.3   Earning of Performance Units and Performance Shares.....................................................16
   9.4   Form and Timing of Payment of Performance Units and Performance Shares..................................16

ARTICLE 10. BONUS SHARES AND DEFERRED SHARES.....................................................................16
   10.1  Bonus Shares............................................................................................16
   10.2  Deferred Shares.........................................................................................16

ARTICLE 11. BENEFICIARY DESIGNATION..............................................................................17

ARTICLE 12. DEFERRALS............................................................................................17

ARTICLE 13. RIGHTS OF EMPLOYEES AND CONSULTANTS..................................................................17
   13.1  Employment..............................................................................................17
   13.2  Participation...........................................................................................17

ARTICLE 14. CHANGE OF CONTROL....................................................................................17
   14.1  Change of Control.......................................................................................17
   14.2  Pooling of Interests Accounting.........................................................................18

ARTICLE 15. AMENDMENT, MODIFICATION, AND TERMINATION.............................................................19
   15.1  Amendment, Modification, and Termination................................................................19
   15.2  Adjustments Upon Certain Unusual or Nonrecurring Events.................................................19
   15.3  Awards Previously Granted...............................................................................19

ARTICLE 16. WITHHOLDING..........................................................................................19
   16.1  Withholding.............................................................................................19
   16.2  Notification under Code Section 83(b)...................................................................20

ARTICLE 17. ADDITIONAL PROVISIONS................................................................................20
   17.1  Successors..............................................................................................20
   17.2  Gender and Number.......................................................................................20
   17.3  Severability............................................................................................20
   17.4  Requirements of Law.....................................................................................21
   17.5  Securities Law Compliance...............................................................................21
   17.6  No Rights as a Stockholder..............................................................................21
   17.7  Nature of Payments......................................................................................22
   17.8  Governing Law...........................................................................................22
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                               Russell Corporation
                             2000 Stock Option Plan

ARTICLE 1.      ESTABLISHMENT, OBJECTIVES AND DURATION

         1.1.     Establishment of the Plan. Russell Corporation, an Alabama
corporation (the "Company"), hereby establishes an incentive compensation plan
to be known as the Russell Corporation 2000 Stock Option Plan (the "Plan"). The
Plan has been adopted by the Board of Directors of the Company (the "Board").
The Plan is effective as of January 18, 2000 (the "Effective Date").

         1.2.     Objectives of the Plan. The Plan is intended to allow
employees and consultants of the Company and its Subsidiaries to acquire or
increase equity ownership in the Company, thereby strengthening their commitment
to the success of the Company and stimulating their efforts on behalf of the
Company, and to assist the Company and its Subsidiaries in attracting new
employees and consultants and retaining existing employees and consultants. The
Plan is also intended to optimize the profitability and growth of the Company
through incentives which are consistent with the Company's goals; to provide
incentives for excellence in individual performance; and to promote teamwork.

         1.3.     Duration of the Plan. The Plan shall commence on the Effective
Date and shall remain in effect, subject to the right of the Board to amend or
terminate the Plan at any time pursuant to Article 15 hereof, until all Shares
subject to it shall have been purchased or acquired according to the Plan's
provisions.

ARTICLE 2.      DEFINITIONS

        Whenever used in the Plan, the following terms shall have the meanings
set forth below:

         2.1.     "Article" means an Article of the Plan.

         2.2.     "Award" means Options (including Reload Options), Restricted
Shares, Bonus Shares, Deferred Shares, stock appreciation rights (SARs),
Performance Units or Performance Shares granted under the Plan.

         2.3.     "Award Agreement" means a written agreement by which an Award
is evidenced.

         2.4.     "Beneficial Owner" has the meaning specified in Rule 13d-3 of
the SEC under the Exchange Act.

         2.5.     "Board" has the meaning set forth in Section 1.1.

         2.6.     "Bonus Shares" means Shares that are awarded to a Grantee
without cost and without restrictions in recognition of past performance
(whether determined by reference to another employee benefit plan of the Company
or otherwise) or as an incentive to become an employee or consultant of the
Company or a Subsidiary.

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         2.7.     "Cause" means, unless otherwise defined in an Award Agreement,

                           (i)      a Grantee's conviction of a felony or other
                  crime involving fraud, dishonesty or moral turpitude;

                           (ii)     a Grantee's willful or reckless material
                  misconduct in the performance of the Grantee's duties; or

                           (iii)    a Grantee's habitual neglect of duties;

provided, however, that for purposes of clauses (ii) and (iii), Cause shall not
include any one or more of the following: bad judgment, negligence or any act or
omission believed by the Grantee in good faith to have been in or not opposed to
the interest of the Company (without intent of the Grantee to gain, directly or
indirectly, a profit to which the Grantee was not legally entitled). A Grantee
who agrees to resign from his affiliation with the Company or a Subsidiary in
lieu of being terminated for Cause may be deemed to have been terminated for
Cause for purposes of this Plan.

         2.8.     "Change of Control" means, unless otherwise defined in an
Award Agreement, any one or more of the following:

                  (a)      any person (as such term is used in Rule 13d-5 of the
         SEC under the Exchange Act) or group (as such term is defined in
         Sections 3(a)(9) and 13(d)(3) of the Exchange Act), other than a
         Subsidiary, any employee benefit plan (or any related trust) of the
         Company or any of its Subsidiaries or any Excluded Person, becomes the
         Beneficial Owner of 20% or more of the common stock of the Company or
         of Voting Securities representing 20% or more of the combined voting
         power of the Company (such a person or group, a "20% Owner"), except
         that (i) no Change of Control shall be deemed to have occurred solely
         by reason of such beneficial ownership by a corporation with respect to
         which both more than 70% of the common stock of such corporation and
         Voting Securities representing more than 70% of the aggregate voting
         power of such corporation are then owned, directly or indirectly, by
         the persons who were the direct or indirect owners of the common stock
         and Voting Securities of the Company immediately before such
         acquisition in substantially the same proportions as their ownership,
         immediately before such acquisition, of the common stock and Voting
         Securities of the Company, as the case may be and (ii) such corporation
         shall not be deemed a 20% Owner; or

                  (b)      the Incumbent Directors (determined using the
         Effective Date as the baseline date) cease for any reason to constitute
         at least two-thirds of the directors of the Company then serving; or

                  (c)      approval by the stockholders of the Company of a
         merger, reorganization, consolidation, or similar transaction, or a
         plan or agreement for the sale or other disposition of all or
         substantially all of the consolidated assets of the Company or a plan
         of liquidation of the Company (any of the foregoing transactions, a
         "Reorganization Transaction") which, based on information included in
         the proxy and other written materials distributed to the Company's
         stockholders in connection with the solicitation by the Company of such

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         stockholder approval, is not expected to qualify as an Exempt
         Reorganization Transaction; or

                  (d)      the consummation by the Company of a Reorganization
         Transaction that for any reason fails to qualify as an Exempt
         Reorganization Transaction as of the date of such consummation,
         notwithstanding the fact that such Reorganization Transaction was
         expected to so qualify as of the date of such stockholder approval.

Notwithstanding the occurrence of any of the foregoing events, a Change of
Control shall not occur with respect to a Grantee if, in advance of such event,
the Grantee agrees in writing that such event shall not constitute a Change of
Control.

         2.9.     "Change of Control Value" means the Fair Market Value of a
Share on the date of a Change of Control.

         2.10.    "Code" means the Internal Revenue Code of 1986, as amended
from time to time, and regulations and rulings thereunder. References to a
particular section of the Code include references to successor provisions of the
Code or any successor statute.

         2.11.    "Committee" has the meaning set forth in Article 3.

         2.12.    "Common Stock" means the common stock, $0.01 par value, of the
Company.

         2.13.    "Company" has the meaning set forth in Section 1.1.

         2.14.    "Deferred Shares" means Shares that are awarded to a Grantee
on a deferred basis pursuant to Section 10.2.

         2.15.    "Disability" means a permanent and total disability, within
the meaning of Code Section 22(e)(3), as determined by the Committee in good
faith, upon receipt of medical advice from one or more individuals, selected by
the Committee, who are qualified to give professional medical advice.

         2.16.    "Effective Date" has the meaning set forth in Section 1.1.

         2.17.    "Eligible Person" means (i) any employee (including any
officer) of the Company or any Subsidiary, including any such employee who is on
an approved leave of absence, layoff, or has been subject to a disability which
does not qualify as a Disability and (ii) any person performing services for the
Company or a Subsidiary in the capacity of a consultant.

         2.18.    "Exchange Act" means the Securities Exchange Act of 1934, as
amended. References to a particular section of the Exchange Act include
references to successor provisions.

         2.19.    "Excluded Person" means any Person who, along with such
Person's Affiliates and Associates (as such terms are defined in Rule 12b-2 of
the General Rules and Regulations under the Exchange Act) is the Beneficial
Owner of 15% or more of the Shares outstanding as of the Effective Date,
provided that such Person, including such Person's Affiliates and Associates,
does not acquire, after the Effective Date hereof, additional Shares in excess
of 1% of the then

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outstanding Shares, exclusive of (i) Shares acquired by such Person and such
Person's Affiliates and Associates as a result of stock dividends, stock splits,
recapitalizations or similar transactions in which the Company did not receive
any consideration for issuing the Shares in question or as a result of
repurchases of stock by the Company; (y) Shares acquired by such Person and such
Person's Affiliates and Associates as a result of gifts, devises, bequests and
intestate succession; and (z) Shares acquired by such Person and such Person's
Affiliates and Associates as a result of participation by such Person and such
Person's Affiliates and Associates in any dividend reinvestment plan, stock
option plan or other similar plan or arrangement of the Company.

         2.20.    "Exempt Reorganization Transaction" means a Reorganization
Transaction which results in the Persons who were the direct or indirect owners
of the outstanding common stock and Voting Securities of the Company immediately
before such Reorganization Transaction becoming, immediately after the
consummation of such Reorganization Transaction, the direct or indirect owners
of both more than 70% of the then-outstanding common stock of the Surviving
Corporation and Voting Securities representing more than 70% of the aggregate
voting power of the Surviving Corporation, in substantially the same respective
proportions as such Persons' ownership of the common stock and Voting Securities
of the Company immediately before such Reorganization Transaction.

         2.21.    "Fair Market Value" means (A) with respect to any property
other than Shares, the fair market value of such property determined by such
methods or procedures as shall be established from time to time by the
Committee, and (B) with respect to Shares, as of any date, (i) the average of
the high and low trading prices on such date on the New York Stock Exchange
Composite Transactions Tape (or, if no sale of Shares was reported for such
date, on the next preceding date on which a sale of Shares was reported), (ii)
if the Shares are not listed on the New York Stock Exchange, the average of the
high and low trading prices of the Shares on such other national exchange on
which the Shares are principally traded or as reported by the NASDAQ Stock
Market, or similar organization, or if no such quotations are available, the
average of the high bid and low asked quotations in the over-the-counter market;
or (iii) in the event that there shall be no public market for the Shares, the
fair market value of the Shares as determined by the Committee.

         2.22.    "Freestanding SAR" means an SAR that is granted independently
of any other Award.

         2.23.    "Grant Date" has the meaning set forth in Section 5.2.

         2.24.    "Grantee" means an individual who has been granted an Award.

         2.25.    "including" or "includes" mean "including, without
limitation," or "includes, without limitation", respectively.

         2.26.    "Incumbent Directors" means, as of any specified baseline
date, individuals then serving as members of the Board who were members of the
Board as of the date immediately preceding such baseline date; provided that any
subsequently-appointed or elected member of the Board whose election, or
nomination for election by stockholders of the Company or the Surviving
Corporation, as applicable, was approved by a vote or written consent of at
least two-thirds

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of the directors then comprising the Incumbent Directors shall also thereafter
be considered an Incumbent Director, unless the initial assumption of office of
such subsequently-elected or appointed director was in connection with (i) an
actual or threatened election contest, including a consent solicitation,
relating to the election or removal of one or more members of the Board, (ii) a
"tender offer" (as such term is used in Section 14(d) of the Exchange Act),
(iii) a proposed Reorganization Transaction, or (iv) a request, nomination or
suggestion of any Beneficial Owner of Voting Securities representing 15% or more
of the aggregate voting power of the Voting Securities of the Company or the
Surviving Corporation, as applicable.

         2.27.    "Mature Shares" means Shares for which the holder thereof has
good title, free and clear of all liens and encumbrances, and which such holder
either (i) has held for at least six months or (ii) has purchased on the open
market.

         2.28.    "Option" means an option granted under Article 6 of the Plan.

         2.29.    "Option Price" means the price at which a Share may be
purchased by a Grantee pursuant to an Option.

         2.30.    "Option Term" means the period beginning on the Grant Date of
an Option and ending on the expiration date of such Option, as specified in the
Award Agreement for such Option and as may, consistent with the provisions of
the Plan, be extended from time to time by the Committee prior to the expiration
date of such Option then in effect.

         2.31.    "Performance Period" has the meaning set forth in Section 9.2.

         2.32.    "Performance Share" or "Performance Unit" has the meaning set
forth in Article 9.

         2.33.    "Period of Restriction" means the period during which the
transfer of Restricted Shares is limited in some way (based on the passage of
time, the achievement of performance goals, or upon the occurrence of other
events as determined by the Committee) or the Shares are subject to a
substantial risk of forfeiture, as provided in Article 8.

         2.34.    "Person" shall have the meaning ascribed to such term in
Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d)
thereof, including a "group" as defined in Section 13(d) thereof.

         2.35.    "Plan" has the meaning set forth in Section 1.1.

         2.36.    "Reload Option" has the meaning set forth in Section 6.4.

         2.37.    "Reorganization Transaction" has the meaning set forth in
Section 2.7(c).

         2.38.    "Required Withholding" has the meaning set forth in Article
16.

         2.39.    "Restricted Shares" means Shares that are subject to transfer
restrictions and are subject to forfeiture if conditions specified in the Award
Agreement applicable to such Shares are not satisfied.

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         2.40.    "Rule 16b-3" means Rule 16b-3 promulgated by the SEC under the
Exchange Act, together with any successor rule, as in effect from time to time.

         2.41.    "SAR" means a stock appreciation right.

         2.42.    "SEC" means the United States Securities and Exchange
Commission, or any successor thereto.

         2.43.    "Section" means, unless the context otherwise requires, a
Section of the Plan.

         2.44.    "Section 16 Person" means a person who is subject to
obligations under Section 16 of the Exchange Act with respect to transactions
involving equity securities of the Company.

         2.45.    "Share" means a share of Common Stock.

         2.46.    "Strike Price" of any SAR shall equal, for any Tandem SAR
(whether granted at the same time as or after the grant of the related Option),
the Option Price of such Option, or for any other SAR, 100% of the Fair Market
Value of a Share on the Grant Date of such SAR; provided that the Committee may
specify a higher Strike Price in the Award Agreement.

         2.47.    "Subsidiary" means with respect to any Person (a) any
corporation of which more than 50% of the Voting Securities are at the time,
directly or indirectly, owned by such Person, and (b) any partnership or limited
liability company in which such Person has a direct or indirect interest
(whether in the form of voting power or participation in profits or capital
contribution) of more than 50%.

         2.48.    "Substitute Option" has the meaning set forth in Section 6.3.

         2.49.    "Surviving Corporation" means the corporation resulting from a
Reorganization Transaction or, if Voting Securities representing at least 50% of
the aggregate voting power of such resulting corporation are directly or
indirectly owned by another corporation, such other corporation.

         2.50.    "Tandem SAR" means an SAR that is granted in connection with a
related Option, the exercise of which shall require cancellation of the right to
purchase a Share under the related Option (and when a Share is purchased under
the related Option, the Tandem SAR shall similarly be canceled).

         2.51.    "Termination of Affiliation" occurs on the first day on which
an individual is for any reason no longer providing services to the Company or
any Subsidiary in the capacity of an employee or consultant, or with respect to
an individual who is an employee of, or consultant to, a Person which is a
Subsidiary, the first day on which such Person ceases to be a Subsidiary.

         2.52.    "Voting Securities" of a corporation means securities of such
corporation that are entitled to vote generally in the election of directors,
but not including any other class of securities of such corporation that may
have voting power by reason of the occurrence of a contingency.

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ARTICLE 3.      ADMINISTRATION

         3.1.     Committee. Subject to Article 15, and to Section 3.2, the
Plan shall be administered by the Board, or a committee of the Board appointed
by the Board to administer the Plan ("Plan Committee"). To the extent the Board
considers it desirable for transactions relating to Awards to qualify for an
exemption under Rule 16b-3, the Plan Committee shall consist of two or more
directors of the Company, all of whom qualify as "non-employee directors"
within the meaning of Rule 16b-3. The number of members of the Plan Committee
shall from time to time be increased or decreased, and shall be subject to such
conditions, in each case as the Board deems appropriate to permit transactions
in Shares pursuant to the Plan to satisfy such conditions of Rule 16b-3 as then
in effect. Any references herein to "Committee" are references to the Board or
the Plan Committee, as applicable.

         3.2.     Powers of Committee. Subject to the express provisions of the
Plan, the Committee has full and final authority and sole discretion as follows:

                  (a)      to determine when, to whom and in what types and
         amounts Awards should be granted and the terms and conditions
         applicable to each Award, including the Option Price, the Option Term,
         the benefit payable under any SAR, Performance Unit or Performance
         Share, and whether or not specific Awards shall be granted in
         connection with other specific Awards, and if so whether they shall be
         exercisable cumulatively with, or alternatively to, such other specific
         Awards;

                  (b)      to determine the amount, if any, that a Grantee shall
         pay for Restricted Shares, whether and on what terms to permit or
         require the payment of cash dividends thereon to be deferred, when
         Restricted Shares (including Restricted Shares acquired upon the
         exercise of an Option) shall be forfeited and whether such shares shall
         be held in escrow;

                  (c)      to construe and interpret the Plan and to make all
         determinations necessary or advisable for the administration of the
         Plan;

                  (d)      to make, amend, and rescind rules relating to the
         Plan, including rules with respect to the exercisability and
         nonforfeitability of Awards upon the Termination of Affiliation of a
         Grantee;

                  (e)      to determine the terms and conditions of all Award
         Agreements (which need not be identical) and, with the consent of the
         Grantee, to amend any such Award Agreement at any time, among other
         things, to permit transfers of such Awards to the extent permitted by
         the Plan; provided that the consent of the Grantee shall not be
         required for any amendment which (A) does not adversely affect the
         rights of the Grantee, or (B) is necessary or advisable (as determined
         by the Committee) to carry out the purpose of the Award as a result of
         any new or change in existing applicable law;

                  (f)      to cancel, with the consent of the Grantee,
         outstanding Awards and to grant new Awards in substitution therefor;

                  (g)      to accelerate the exercisability (including
         exercisability within a period of less than six months after the Grant
         Date) of, and to accelerate or waive any or all of the terms

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         and conditions applicable to, any Award or any group of Awards for any
         reason and at any time, including in connection with a Termination of
         Affiliation;

                  (h)      subject to Section 5.3, to extend the time during
         which any Award or group of Awards may be exercised;

                  (i)      to make such adjustments or modifications to Awards
         to Grantees who are working outside the United States as are advisable
         to fulfill the purposes of the Plan or to comply with applicable local
         law;

                  (j)      to delegate to the Chief Executive Officer of the
         Company the power to grant Options and Restricted Shares from time to
         time to specified categories of Eligible Persons in amounts and on
         terms to be specified by the Committee; provided that no such grants
         shall be made to individuals who are then Section 16 Persons;

                  (k)      to delegate to officers, employees or independent
         contractors of the Company matters involving the routine administration
         of the Plan and which are not specifically required by any provision of
         this Plan of to be performed by the Committee;

                  (l)      to impose such additional terms and conditions upon
         the grant, exercise or retention of Awards as the Committee may, before
         or concurrently with the grant thereof, deem appropriate, including
         limiting the percentage of Awards which may from time to time be
         exercised by a Grantee; and

                  (m)      to take any other action with respect to any matters
         relating to the Plan for which it is responsible.

        All determinations on any matter relating to the Plan or any Award
Agreement may be made in the sole and absolute discretion of the Committee, and
all such determinations of the Committee shall be final, conclusive and binding
on all Persons. No member of the Committee shall be liable for any action or
determination made with respect to the Plan or any Award.

ARTICLE 4.      SHARES SUBJECT TO THE PLAN

         4.1.     Number of Shares Available. Subject to Section 4.3 and to
adjustment as provided in Section 4.2, the number of Shares hereby reserved for
delivery under the Plan is 1,500,000. If any Shares subject to an Award granted
hereunder are forfeited or an Award or any portion thereof otherwise terminates
or is settled without the issuance of Shares, the Shares subject to such Award,
to the extent of any such forfeiture, termination or settlement, shall again be
available for grant under the Plan. If any Shares (whether subject to or
received pursuant to an Award granted hereunder, purchased on the open market,
or otherwise obtained, and including Shares that are deemed (by attestation or
otherwise) to have been delivered to the Company as payment for all or any
portion of the Option Price of an Option pursuant to the next following
sentence) are withheld or applied as payment by the Company in connection with
the exercise of an Award or the withholding of taxes related thereto, such
Shares, to the extent of any such withholding or payment, shall again be
available or shall increase the number of Shares available, as applicable, for
grant under the Plan. The Committee may from time to time determine the
appropriate methodology for calculating the number of Shares issued pursuant to
the Plan.

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         4.2.     Adjustments in Authorized Shares. In the event that the
Committee determines that any dividend or other distribution (whether in the
form of cash, Shares, other securities, or other property), recapitalization,
stock split, reverse stock split, subdivision, consolidation or reduction of
capital, reorganization, merger, scheme of arrangement, split-up, spin-off or
combination involving the Company or repurchase or exchange of Shares or other
rights to purchase Shares or other securities of the Company, or other similar
corporate transaction or event that occurs at any time after the Effective Date
affects the Shares such that any adjustment is determined by the Committee to be
appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan, then the
Committee shall, in such manner as it may deem equitable, adjust any or all of
(i) the number and type of Shares (or other securities or property of the
Company or any Person that is a party to a Reorganization Transaction with the
Company) with respect to which Awards may be granted, (ii) the number and type
of Shares (or other securities or property of the Company or any Person that is
a party to a Reorganization Transaction with the Company) subject to outstanding
Awards, and (iii) the grant or exercise price with respect to any Award or, if
deemed appropriate, make provision for a cash payment to the holder of an
outstanding Award or the substitution of other property for Shares subject to an
outstanding Award; provided, that the number of Shares subject to any Award
denominated in Shares shall always be a whole number.

         4.3.     Treasury Shares Only. All Shares delivered in connection with
Awards shall be treasury shares. No Shares shall be newly-issued in connection
with any Awards hereunder.

ARTICLE 5.      ELIGIBILITY AND GENERAL CONDITIONS OF AWARDS

         5.1.     Eligibility. The Committee may grant Awards to any Eligible
Person, whether or not he or she has previously received an Award.

         5.2.     Grant Date. The Grant Date of an Award shall be the date on
which the Committee grants the Award or such later date as specified by the
Committee in the Award Agreement.

         5.3.     Maximum Term. Subject to the following proviso, the Option
Term or other period during which an Award may be outstanding shall not extend
more than 10 years after the Grant Date, and shall be subject to earlier
termination as herein specified; provided, that any deferral of a cash payment
or of the delivery of Shares that is permitted or required by the Committee
pursuant to Article 12 may, if so permitted or required by the Committee, extend
more than 10 years after the Grant Date of the Award to which the deferral
relates.

         5.4.     Award Agreement. To the extent not set forth in the Plan, the
terms and conditions of each Award (which need not be the same for each grant or
for each Grantee) shall be set forth in an Award Agreement.

         5.5.     Restrictions on Share Transferability. The Committee may
include in the Award Agreement such restrictions on any Shares acquired pursuant
to the exercise or vesting of an Award as it may deem advisable, including
restrictions under applicable federal securities laws.

         5.6.     Termination of Affiliation. Except as otherwise provided in an
Award Agreement (including an Award Agreement as amended by the Committee
pursuant to Section 3.2), and subject to the provisions of Section 14.1, the
extent to which the Grantee shall have the right to

                                      -9-
<PAGE>   13

exercise, vest in, or receive payment in respect of an Award following
Termination of Affiliation shall be determined in accordance with the following
provisions of this Section 5.6.

                  (a)      For Cause. If a Grantee has a Termination of
         Affiliation for Cause:

                           (i)      the Grantee's Restricted Shares and Deferred
                 Shares that are forfeitable immediately before such Termination
                 of Affiliation shall automatically be forfeited on such date,
                 subject in the case of Restricted Shares to the provisions of
                 Section 8.4 regarding repayment of certain amounts to the
                 Grantee;

                           (ii)     the Grantee's Deferred Shares that were
                 vested immediately before such Termination of Affiliation shall
                 promptly be settled by delivery to such Grantee of a number of
                 unrestricted Shares equal to the aggregate number of such
                 vested Deferred Shares, and

                           (iii)    any unexercised Option or SAR, and any
                 Performance Share or Performance Unit with respect to which the
                 Performance Period has not ended immediately before such
                 Termination of Affiliation, shall terminate effective
                 immediately upon such Termination of Affiliation.

                  (b)      On Account of Death or Disability. If a Grantee has
         a Termination of Affiliation on account of death or Disability:

                           (i)      the Grantee's Restricted Shares that were
                 forfeitable immediately before such Termination of Affiliation
                 shall thereupon become nonforfeitable;

                           (ii)     the Grantee's Deferred Shares that were
                 forfeitable immediately before such Termination of Affiliation
                 shall thereupon become nonforfeitable and the Company shall,
                 unless otherwise provided in an Award Agreement, promptly
                 settle all Deferred Shares, whether or not forfeitable, by
                 delivery to the Grantee (or, after his or her death, to his or
                 her personal representative or beneficiary designated in
                 accordance with Article 11) of a number of unrestricted Shares
                 equal to the aggregate number of the Grantee's Deferred Shares;

                           (iii)    any unexercised Option or SAR, whether or
                 not exercisable immediately before such Termination of
                 Affiliation, may be exercised, in whole or in part, at any time
                 after such Termination of Affiliation (but in either case only
                 during the Option Term) by the Grantee or, after his or her
                 death, by (A) his or her personal representative or the person
                 to whom the Option or SAR, as applicable, is transferred by
                 will or the applicable laws of descent and distribution, or (B)
                 the Grantee's beneficiary designated in accordance with Article
                 11; and

                           (iv)     the benefit payable with respect to any
                 Performance Share or Performance Unit with respect to which the
                 Performance Period has not ended immediately before such
                 Termination of Affiliation on account of death or Disability
                 shall be equal to the product of the Fair Market Value of a
                 Share as of the date of such Termination of Affiliation or the
                 value of the Performance Unit specified in the Award Agreement

                                      -10-

<PAGE>   14

         (determined as of the date of such Termination of Affiliation), as
         applicable, multiplied successively by each of the following:

                           (1)      a fraction, the numerator of which is the
                  number of months (including as a whole month any partial
                  month) that have elapsed since the beginning of such
                  Performance Period until the date of such Termination of
                  Affiliation and the denominator of which is the number of
                  months (including as a whole month any partial month) in the
                  Performance Period; and

                           (2)      a percentage determined by the Committee
                  that would be earned under the terms of the applicable Award
                  Agreement assuming that the rate at which the performance
                  goals have been achieved as of the date of such Termination of
                  Affiliation would continue until the end of the Performance
                  Period, or, if the Committee elects to compute the benefit
                  after the end of the Performance Period, the Performance
                  Percentage, as determined by the Committee, attained during
                  the Performance Period.

                  (c)      Any Other Reason. If a Grantee has a Termination of
         Affiliation for any reason other than for Cause, death or Disability,
         then:

                           (i)      the Grantee's Restricted Shares and Deferred
                  Shares, to the extent forfeitable immediately before such
                  Termination of Affiliation, shall thereupon automatically be
                  forfeited, subject in the case of Restricted Shares to the
                  provisions of Section 8.4 regarding repayment of certain
                  amounts to the Grantee;

                           (ii)     the Grantee's Deferred Shares that were not
                  forfeitable immediately before such Termination of Affiliation
                  shall, unless otherwise provided in an Award Agreement,
                  promptly be settled by delivery to the Grantee of a number of
                  unrestricted Shares equal to the aggregate number of the
                  Grantee's vested Deferred Shares;

                           (iii)    any unexercised Option or SAR, to the extent
                  exercisable immediately before such Termination of
                  Affiliation, shall remain exercisable in whole or in part for
                  three months after such Termination of Affiliation (but only
                  during the Option Term) by the Grantee or, after his or her
                  death, by (A) his or her personal representative or the person
                  to whom the Option or SAR, as applicable, is transferred by
                  will or the applicable laws of descent and distribution, or
                  (B) the Grantee's beneficiary designated in accordance with
                  Article 11; and

                           (iv)     any Performance Shares or Performance Units
                  with respect to which the Performance Period has not ended as
                  of the date of such Termination of Affiliation shall terminate
                  immediately upon such Termination of Affiliation.

         5.7.     Nontransferability of Awards.

                  (a)      Except as provided in Section 5.7(c) below, each
         Award, and each right under any Award, shall be exercisable only by the
         Grantee during the Grantee's lifetime, or, if permissible under
         applicable law, by the Grantee's guardian or legal representative or by
         a

                                      -11-
<PAGE>   15

         transferee receiving such Award pursuant to a qualified domestic
         relations order (a "QDRO") as defined in the Code or Title I of the
         Employee Retirement Income Security Act of 1974 or the rules
         thereunder.

                  (b)      Except as provided in Section 5.7(c) below, no Award
         (prior to the time, if applicable, Shares are issued in respect of such
         Award), and no right under any Award, may be assigned, alienated,
         pledged, attached, sold or otherwise transferred or encumbered by a
         Grantee otherwise than by will or by the laws of descent and
         distribution (or in the case of Restricted Shares, to the Company) or
         pursuant to a QDRO, and any such purported assignment, alienation,
         pledge, attachment, sale, transfer or encumbrance shall be void and
         unenforceable against the Company or any Subsidiary; provided, that the
         designation of a beneficiary shall not constitute an assignment,
         alienation, pledge, attachment, sale, transfer or encumbrance.

                  (c)      To the extent and in the manner permitted by the
         Committee, and subject to such terms and conditions as may be
         prescribed by the Committee, a Grantee may transfer an Award to (i) a
         spouse, sibling, parent or lineal descendant (including a lineal
         descendant by adoption) (any of the foregoing, an "Immediate Family
         Member") of the Grantee; (ii) a trust, the primary beneficiaries of
         which consist exclusively of the Grantee or Immediate Family Members,
         or (iii) a corporation, partnership or similar entity, the owners of
         which consist exclusively of the Grantee or Immediate Family Members of
         the Grantee.

ARTICLE 6.      STOCK OPTIONS

         6.1.     Grant of Options. Subject to the terms and provisions of the
Plan, Options may be granted to any Eligible Person in such number, and upon
such terms, and at any time and from time to time as shall be determined by the
Committee. Without limiting the generality of the foregoing, the Committee may
grant to any Eligible Person, or permit any Eligible Person to elect to receive,
an Option in lieu of or in substitution for any other compensation (whether
payable currently or on a deferred basis, and whether payable under this Plan or
otherwise) which such Eligible Person may be eligible to receive from the
Company or a Subsidiary, which Option may have a value (as determined by the
Committee under Black-Scholes or any other option valuation method) that is
equal to or greater than the amount of such other compensation.

         6.2.     Award Agreement. Each Option grant shall be evidenced by an
Award Agreement that shall specify the Option Price, the Option Term, the number
of shares to which the Option pertains, the time or times at which such Option
shall be exercisable and such other provisions as the Committee shall determine.

         6.3.     Option Price. The Option Price of an Option under this Plan
shall be determined by the Committee, and shall be no less than 100% of the Fair
Market Value of a Share on the Grant Date; provided, however, that any Option
("Substitute Option") that is (x) granted to a Grantee in connection with the
acquisition ("Acquisition"), however effected, by the Company of another
corporation or entity ("Acquired Entity") or the assets thereof, (y) associated
with an option to purchase shares of stock or other equity interest of the
Acquired Entity or an affiliate thereof ("Acquired Entity Option") held by such
Grantee immediately prior to such Acquisition, and (z) intended to preserve for
the Grantee the economic value of all or a portion of such Acquired

                                      -12-
<PAGE>   16
Entity Option, may be granted with such Option Price as the Committee determines
to be necessary to achieve such preservation of economic value.

         6.4.     Grant of Reload Options. The Committee may in connection with
the grant of an Option or thereafter provide that a Grantee who (i) is an
Eligible Person when he or she exercises an Option ("Exercised Option") and (ii)
satisfies the Option Price or Required Withholding applicable thereto with
Shares (including Shares that are deemed to have been delivered as payment for
all or any portion of the Option Price of an Exercised Option by attestation or
otherwise) shall automatically be granted, subject to Article 4, an additional
option ("Reload Option") in an amount equal to the sum ("Reload Number") of the
number of Shares tendered (including Shares that are deemed to have been
tendered) to exercise the Exercised Option plus, if so provided by the
Committee, the number of Shares, if any, retained by the Company in connection
with the exercise of the Exercised Option to satisfy any federal, state, local
or foreign tax withholding requirements.

         6.5.     Conditions on Reload Options. Reload Options shall be subject
to the following terms and conditions:

                  (a)      the Grant Date for each Reload Option shall be the
         date of exercise of the Exercised Option to which it relates;

                  (b)      subject to Section 6.5(c), the Reload Option may be
         exercised at any time during the Option Term of the Exercised Option
         (subject to earlier termination thereof as provided in the Plan or in
         the applicable Award Agreement); and

                  (c)      the terms of the Reload Option shall be the same as
         the terms of the Exercised Option to which it relates, except that,
         unless otherwise provided in the Award Agreement, the Option Price for
         the Reload Option shall be 100% of the Fair Market Value of a Share on
         the Grant Date of the Reload Option.

         6.6.     Payment. Options granted under this Article 6 shall be
exercised by the delivery of a written notice of exercise to the Company,
setting forth the number of Shares with respect to which the Option is to be
exercised, accompanied by full payment for the Shares made by cash, personal
check or wire transfer or, subject to the approval of the Committee, any one or
more of the following means:

                  (a)      Mature Shares, valued at their Fair Market Value on
         the date of exercise;

                  (b)      Restricted Shares held by the Grantee for at least
         six months prior to the exercise of the Option, each such share valued
         at the Fair Market Value of a Share on the date of exercise; or

                  (c)      pursuant to procedures approved by the Committee,
         through the sale of the Shares acquired on exercise of the Option
         through a broker-dealer to whom the Grantee has submitted an
         irrevocable notice of exercise and irrevocable instructions to deliver
         promptly to the Company the amount of sale or loan proceeds sufficient
         to pay for such Shares, together with, if requested by the Company, the
         amount of federal, state, local or foreign withholding taxes payable by
         Grantee by reason of such exercise.

                                      -13-
<PAGE>   17

If any Restricted Shares ("Tendered Restricted Shares") are used to pay the
Option Price, a number of Shares acquired on exercise of the Option equal to the
number of Tendered Restricted Shares shall be subject to the same restrictions
as the Tendered Restricted Shares, determined as of the date of exercise of the
Option.

ARTICLE 7.      STOCK APPRECIATION RIGHTS

         7.1.     Grant of SARs. Subject to the terms and conditions of the
Plan, SARs may be granted to any Eligible Person at any time and from time to
time as shall be determined by the Committee. The Committee may grant
Freestanding SARs, Tandem SARs, or any combination thereof. The Committee shall
determine the number of SARs granted to each Grantee (subject to Article 4), the
Strike Price thereof, and, consistent with Section 7.2 and the other provisions
of the Plan, the other terms and conditions pertaining to such SARs.

         7.2.     Exercise of Tandem SARs. Tandem SARs may be exercised for all
or part of the Shares subject to the related Option upon the surrender of the
right to exercise the equivalent portion of the related Option. A Tandem SAR may
be exercised only with respect to the Shares for which its related Option is
then exercisable.

        Notwithstanding any other provision of this Plan to the contrary, with
respect to a Tandem SAR, (i) the Tandem SAR will expire no later than the
expiration of the underlying Option; (ii) the value of the payout with respect
to the Tandem SAR may be for no more than 100% of the difference between the
Option Price of the underlying Option and the Fair Market Value of the Shares
subject to the underlying Option at the time the Tandem SAR is exercised; and
(iii) the Tandem SAR may be exercised only when the Fair Market Value of the
Shares subject to the Option exceeds the Option Price of the Option.

         7.3.     Payment of SAR Amount. Upon exercise of an SAR, the Grantee
shall be entitled to receive payment from the Company in an amount determined by
multiplying:

                  (a)      the excess of the Fair Market Value of a Share on the
         date of exercise over the Strike Price;

by

                  (b)      the number of Shares with respect to which the SAR is
         exercised;

provided that the Committee may provide in the Award Agreement that the benefit
payable on exercise of an SAR shall not exceed such percentage of the Fair
Market Value of a Share on the Grant Date as the Committee shall specify. As
determined by the Committee, the payment upon SAR exercise may be in cash, in
Shares which have an aggregate Fair Market Value (as of the date of exercise of
the SAR) equal to the amount of the payment, or in some combination thereof, as
set forth in the Award Agreement.

                                      -14-
<PAGE>   18
ARTICLE 8.      RESTRICTED SHARES

         8.1.     Grant of Restricted Shares. Subject to the terms and
provisions of the Plan, the Committee, at any time and from time to time, may
grant Restricted Shares to any Eligible Person in such amounts as the Committee
shall determine.

         8.2.     Award Agreement. Each grant of Restricted Shares shall be
evidenced by an Award Agreement that shall specify the Period(s) of Restriction,
the number of Restricted Shares granted, and such other provisions as the
Committee shall determine. The Committee may impose such conditions or
restrictions on any Restricted Shares as it may deem advisable, including
restrictions based upon the achievement of specific performance goals
(Company-wide, divisional, Subsidiary or individual), time-based restrictions on
vesting or restrictions under applicable securities laws.

         8.3.     Consideration. The Committee shall determine the amount, if
any, that a Grantee shall pay for Restricted Shares. Such payment shall be made
in full by the Grantee before the delivery of the shares and in any event no
later than 10 business days after the Grant Date for such shares.

         8.4.     Effect of Forfeiture. If Restricted Shares are forfeited, and
if the Grantee was required to pay for such shares or acquired such Restricted
Shares upon the exercise of an Option, the Grantee shall be deemed to have
resold such Restricted Shares to the Company at a price equal to the lesser of
(x) the amount paid by the Grantee for such Restricted Shares, or (y) the Fair
Market Value of a Share on the date of such forfeiture. The Company shall pay to
the Grantee the required amount as soon as is administratively practical. Such
Restricted Shares shall cease to be outstanding, and shall no longer confer on
the Grantee thereof any rights as a stockholder of the Company, from and after
the date of the event causing the forfeiture, whether or not the Grantee accepts
the Company's tender of payment for such Restricted Shares.

         8.5.     Escrow; Legends. The Committee may provide that the
certificates for any Restricted Shares (x) shall be held (together with a stock
power executed in blank by the Grantee) in escrow by the Secretary of the
Company until such Restricted Shares become nonforfeitable or are forfeited or
(y) shall bear an appropriate legend restricting the transfer of such Restricted
Shares. If any Restricted Shares become nonforfeitable, the Company shall cause
certificates for such shares to be issued without such legend.

ARTICLE 9.      PERFORMANCE UNITS AND PERFORMANCE SHARES

         9.1.     Grant of Performance Units and Performance Shares. Subject to
the terms of the Plan, Performance Units or Performance Shares may be granted to
any Eligible Person in such amounts and upon such terms, and at any time and
from time to time, as shall be determined by the Committee.

         9.2.     Value/Performance Goals. Each Performance Unit shall have an
initial value that is established by the Committee at the time of grant. Each
Performance Share shall have an initial value equal to the Fair Market Value of
a Share on the date of grant. The Committee shall set performance goals which,
depending on the extent to which they are met, will determine the number or
value of Performance Units or Performance Shares that will be paid out to the

                                      -15-
<PAGE>   19
Grantee. For purposes of this Article 9, the time period during which the
performance goals must be met shall be called a "Performance Period."

         9.3.     Earning of Performance Units and Performance Shares. Subject
to the terms of this Plan, after the applicable Performance Period has ended,
the holder of Performance Units or Performance Shares shall be entitled to
receive a payout based on the number and value of Performance Units or
Performance Shares earned by the Grantee over the Performance Period, to be
determined as a function of the extent to which the corresponding performance
goals have been achieved.

        If a Grantee is promoted, demoted or transferred to a different business
unit of the Company during a Performance Period, then, to the extent the
Committee determines appropriate, the Committee may adjust, change or eliminate
the performance goals or the applicable Performance Period as it deems
appropriate in order to make them appropriate and comparable to the initial
performance goals or Performance Period.

         9.4.     Form and Timing of Payment of Performance Units and
Performance Shares. Payment of earned Performance Units or Performance Shares
shall be made in a lump sum following the close of the applicable Performance
Period. The Committee may pay earned Performance Units or Performance Shares in
cash or in Shares (or in a combination thereof) which have an aggregate Fair
Market Value equal to the value of the earned Performance Units or Performance
Shares at the close of the applicable Performance Period. Such Shares may be
granted subject to any restrictions deemed appropriate by the Committee. The
form of payout of such Awards shall be set forth in the Award Agreement
pertaining to the grant of the Award.

        As determined by the Committee, a Grantee may be entitled to receive any
dividends declared with respect to Shares which have been earned in connection
with grants of Performance Units or Performance Shares but not yet distributed
to the Grantee. In addition, a Grantee may, as determined by the Committee, be
entitled to exercise his or her voting rights with respect to such Shares.

ARTICLE 10.     BONUS SHARES AND DEFERRED SHARES

         10.1.    Bonus Shares. Subject to the terms of the Plan, the Committee
may grant Bonus Shares to any Eligible Person, in such amount and upon such
terms and at any time and from time to time as shall be determined by the
Committee.

         10.2.    Deferred Shares. Subject to the terms and provisions of the
Plan, Deferred Shares may be granted to any Eligible Person in such amounts and
upon such terms, and at any time and from time to time, as shall be determined
by the Committee. The Committee may impose such conditions or restrictions on
any Deferred Shares as it may deem advisable, including time-vesting
restrictions and deferred payment features. The Committee may cause the Company
to establish a grantor trust to hold Shares subject to Deferred Share Awards.
Without limiting the generality of the foregoing, the Committee may grant to any
Eligible Person, or permit any Eligible Person to elect to receive, Deferred
Shares in lieu of or in substitution for any other compensation (whether payable
currently or on a deferred basis, and whether payable under this

                                      -16-
<PAGE>   20
Plan or otherwise) which such Eligible Person may be eligible to receive from
the Company or a Subsidiary.

ARTICLE 11.     BENEFICIARY DESIGNATION

        Each Grantee under the Plan may, from time to time, name any beneficiary
or beneficiaries (who may be named contingently or successively) to whom any
benefit under the Plan is to be paid in case of his or her death before he or
she receives any or all of such benefit. Each such designation shall revoke all
prior designations by the same Grantee, shall be in a form prescribed by the
Company, and will be effective only when filed by the Grantee in writing with
the Company during the Grantee's lifetime. In the absence of any such
designation, benefits remaining unpaid at the Grantee's death shall be paid to
the Grantee's estate.

ARTICLE 12.     DEFERRALS

        The Committee may permit or require a Grantee to defer receipt of the
payment of cash or the delivery of Shares that would otherwise be due by virtue
of the exercise of an Option or SAR, the lapse or waiver of restrictions with
respect to Restricted Shares, the satisfaction of any requirements or goals with
respect to Performance Units or Performance Shares, the grant of Bonus Shares or
the expiration of the deferral period for Deferred Shares. If any such deferral
is required or permitted, the Committee shall establish rules and procedures for
such deferrals.

ARTICLE 13.     RIGHTS OF EMPLOYEES AND CONSULTANTS

         13.1.    Employment. Nothing in the Plan shall interfere with or limit
in any way the right of the Company to terminate any Grantee's employment or
consultancy at any time, nor confer upon any Grantee the right to continue in
the employ or as consultant of the Company.

         13.2.    Participation. No employee or consultant shall have the right
to be selected to receive an Award, or, having been so selected, to be selected
to receive a future Award.

ARTICLE 14.     CHANGE OF CONTROL

         14.1.    Change of Control. Except as otherwise provided in a Grantee's
Award Agreement, if a Change of Control occurs, then:

                  (a)      the Grantee's Restricted Shares that were forfeitable
         shall thereupon become nonforfeitable;

                  (b)      the Grantee's Deferred Shares that were forfeitable
         shall thereupon become nonforfeitable and the Company shall immediately
         settle all Deferred Shares, whether or not forfeitable, by delivery to
         such Grantee of a number of unrestricted Shares equal to the aggregate
         number of the Grantee's Deferred Shares;

                  (c)      any unexercised Option or SAR, whether or not
         exercisable on the date of such Change of Control, shall thereupon be
         fully exercisable and may be exercised, in whole or in part; and

                                      -17-
<PAGE>   21

                  (d)      the Company shall immediately pay to the Grantee,
         with respect to any Performance Share or Performance Unit with respect
         to which the Performance Period has not ended as of the date of such
         Change of Control, a cash payment equal to the product of (A) in the
         case of a Performance Share, the Change of Control Value or (B) in the
         case of a Performance Unit, the value of the Performance Unit specified
         in the Award Agreement, as applicable, multiplied successively by each
         of the following:

                           (i)      a fraction, the numerator of which is the
                  number of whole and partial months that have elapsed between
                  the beginning of such Performance Period and the date of such
                  Change of Control and the denominator of which is the number
                  of whole and partial months in the Performance Period; and

                           (ii)     a percentage equal to a greater of (x) the
                  target percentage, if any, specified in the applicable Award
                  Agreement or (y) the maximum percentage, if any, that would be
                  earned under the terms of the applicable Award Agreement
                  assuming that the rate at which the performance goals have
                  been achieved as of the date of such Change of Control would
                  continue until the end of the Performance Period.

         14.2.    Pooling of Interests Accounting. If the Committee determines:

                  (a)      that the consummation of a sale or merger of the
         Company (a "Closing") is reasonably likely to occur but for the
         circumstances described in this Section;

                  (b)      that, based on the advice of the Company's
         independent accountants and such other factors that the Committee deems
         relevant, the grant of any Award or exercise of some or all outstanding
         Options or SARs would preclude the use of pooling of interests
         accounting ("pooling") after the Closing; and

                  (c)      the preclusion of pooling can reasonably be expected
         to have a material adverse effect on the terms of such sale or merger
         or on the likelihood of a Closing (a "Pooling Material Adverse
         Effect"),

then the Committee may:

                           (i)      make adjustments to such Options, SARs or
                  other Awards (including the substitution, effective upon such
                  Closing, of Options, SARs or other Awards denominated in
                  shares or other equity securities of another party to such
                  proposed sale or merger transaction) prior to the Closing so
                  as to permit pooling after the Closing,

                           (ii)     cause the Company to pay the benefits
                  attributable to such Options, SARs or other Awards (including
                  for this purpose not only the spread between the then Fair
                  Market Value of the Shares subject to such Options or SARs and
                  the Option Price or Strike Price applicable thereto, but also
                  the additional value of such Options or SARs in excess of such
                  spread, as determined by the Committee) in the form of Shares
                  if such payment would not cause the transaction to remain or
                  become ineligible for pooling; or

                                      -18-
<PAGE>   22
                           (iii)    provided that the Committee has determined,
                  based on the advice of the Company's independent accountants
                  and such other factors that the Committee deems relevant, that
                  no reasonable alternative is available to the Company to
                  prevent such a Pooling Material Adverse Effect, cancel any or
                  all such Options, SARs or other Awards without the consent of
                  any affected Grantee.

ARTICLE 15.     AMENDMENT, MODIFICATION, AND TERMINATION

         15.1.    Amendment, Modification, and Termination. Subject to the terms
of the Plan, the Board may at any time and from time to time, alter, amend,
suspend or terminate the Plan in whole or in part without the approval of the
Company's stockholders.

         15.2.    Adjustments Upon Certain Unusual or Nonrecurring Events. The
Committee may make adjustments in the terms and conditions of Awards in
recognition of unusual or nonrecurring events (including the events described in
Section 4.2) affecting the Company or the financial statements of the Company or
of changes in applicable laws, regulations, or accounting principles, whenever
the Committee determines that such adjustments are appropriate in order to
prevent dilution or enlargement of the benefits or potential benefits intended
to be made available under the Plan.

         15.3.    Awards Previously Granted. Notwithstanding any other provision
of the Plan to the contrary (but subject to Section 14.2), no termination,
amendment or modification of the Plan shall adversely affect in any material way
any Award previously granted under the Plan, without the written consent of the
Grantee of such Award.

ARTICLE 16.     WITHHOLDING

         16.1.    Withholding

                  (a)      Mandatory Tax Withholding.

                           (i)      Whenever under the Plan, Shares are to be
                  delivered upon exercise or payment of an Award or upon
                  Restricted Shares becoming nonforfeitable, or any other event
                  with respect to rights and benefits hereunder, the Company
                  shall be entitled to require (x) that the Grantee remit an
                  amount in cash, or if determined by the Committee, Mature
                  Shares, sufficient to satisfy all federal, state, local and
                  foreign tax withholding requirements related thereto
                  ("Required Withholding"), (y) the withholding of such Required
                  Withholding from compensation otherwise due to the Grantee or
                  from any Shares or other payment due to the Grantee under the
                  Plan or (z) any combination of the foregoing.

                           (ii)     Any Grantee who makes an election under
                  Section 83(b) of the Code shall remit to the Company an amount
                  sufficient to satisfy all resulting Required Withholding;
                  provided that, in lieu of or in addition to the foregoing, the
                  Company shall have the right to withhold such Required
                  Withholding from compensation otherwise due to the Grantee or
                  from any Shares or other payment due to the Grantee under the
                  Plan.

                                      -19-
<PAGE>   23

                  (b)      Elective Share Withholding.

                           (i)      Subject to subsection 16.1(b)(ii), a Grantee
                  may elect the withholding ("Share Withholding") by the Company
                  of a portion of the Shares subject to an Award upon the
                  exercise of such Award or upon Restricted Shares becoming
                  non-forfeitable or upon making an election under Section 83(b)
                  of the Code (each, a "Taxable Event") having a Fair Market
                  Value equal to (x) the minimum amount necessary to satisfy
                  Required Withholding liability attributable to the Taxable
                  Event; or (y) with the Committee's prior approval, a greater
                  amount, not to exceed the estimated total amount of such
                  Grantee's tax liability with respect to the Taxable Event.

                           (ii)     Each Share Withholding election shall be
                  subject to the following conditions:

                                    (1)      any Grantee's election shall be
                           subject to the Committee's discretion to revoke the
                           Grantee's right to elect Share Withholding at any
                           time before the Grantee's election if the Committee
                           has reserved the right to do so in the Award
                           Agreement;

                                    (2)      the Grantee's election must be made
                           on or before the date (the "Tax Date") on which the
                           amount of tax to be withheld is determined; and

                                    (3)      the Grantee's election shall be
                           irrevocable.

         16.2.    Notification under Code Section 83(b). If the Grantee, in
connection with the exercise of any Option, or the grant of Restricted Shares,
makes the election permitted under Section 83(b) of the Code to include in such
Grantee's gross income in the year of transfer the amounts specified in Section
83(b) of the Code, then such Grantee shall notify the Company of such election
within 10 days of filing the notice of the election with the Internal Revenue
Service, in addition to any filing and notification required pursuant to
regulations issued under Section 83(b) of the Code. The Committee may, in
connection with the grant of an Award or at any time thereafter prior to such an
election being made, prohibit a Grantee from making the election described
above.

ARTICLE 17.     ADDITIONAL PROVISIONS

         17.1.    Successors. All obligations of the Company under the Plan with
respect to Awards granted hereunder shall be binding on any successor to the
Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation, or otherwise of all or substantially
all of the business or assets of the Company.

         17.2.    Gender and Number. Except where otherwise indicated by the
context, any masculine term used herein also shall include the feminine; the
plural shall include the singular and the singular shall include the plural.

         17.3.    Severability. If any part of the Plan is declared by any court
or governmental authority to be unlawful or invalid, such unlawfulness or
invalidity shall not invalidate any other part of the Plan. Any Section or part
of a Section so declared to be unlawful or invalid shall, if

                                      -20-
<PAGE>   24

possible, be construed in a manner which will give effect to the terms of such
Section or part of a Section to the fullest extent possible while remaining
lawful and valid.

         17.4.    Requirements of Law. The granting of Awards and the issuance
of Shares under the Plan shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or stock
exchanges as may be required. Notwithstanding any provision of the Plan or any
Award, Grantees shall not be entitled to exercise, or receive benefits under,
any Award, and the Company shall not be obligated to deliver any Shares or other
benefits to a Grantee, if such exercise or delivery would constitute a violation
by the Grantee or the Company of any applicable law or regulation.

         17.5.    Securities Law Compliance.

                  (a)      If the Committee deems it necessary to comply with
         any applicable securities law, or the requirements of any stock
         exchange upon which Shares may be listed, the Committee may impose any
         restriction on Shares acquired pursuant to Awards under the Plan as it
         may deem advisable. All certificates for Shares delivered under the
         Plan pursuant to any Award or the exercise thereof shall be subject to
         such stop transfer orders and other restrictions as the Committee may
         deem advisable under the rules, regulations and other requirements of
         the SEC, any stock exchange upon which Shares are then listed, any
         applicable securities law, and the Committee may cause a legend or
         legends to be placed on any such certificates to refer to such
         restrictions. If so requested by the Company, the Grantee shall
         represent to the Company in writing that he or she will not sell or
         offer to sell any Shares unless a registration statement shall be in
         effect with respect to such Shares under the Securities Act of 1933 or
         unless he or she shall have furnished to the Company evidence
         satisfactory to the Company that such registration is not required.

                  (b)      If the Committee determines that the exercise of, or
         delivery of benefits pursuant to, any Award would violate any
         applicable provision of securities laws or the listing requirements of
         any stock exchange upon which any of the Company's equity securities
         are then listed, then the Committee may postpone any such exercise or
         delivery, as applicable, but the Company shall use all reasonable
         efforts to cause such exercise or delivery to comply with all such
         provisions at the earliest practicable date.

         17.6.    No Rights as a Stockholder. A Grantee shall not have any
rights as a stockholder with respect to the Shares (other than Restricted
Shares) which may be deliverable upon exercise or payment of such Award until
such shares have been delivered to him or her. Restricted Shares, whether held
by a Grantee or in escrow by the Secretary of the Company, shall confer on the
Grantee all rights of a stockholder of the Company, except as otherwise provided
in the Plan or Award Agreement. Unless otherwise determined by the Committee at
the time of a grant of Restricted Shares, any cash dividends that become payable
on Restricted Shares shall be deferred and, if the Committee so determines,
reinvested in additional Restricted Shares. Except as otherwise provided in an
Award Agreement, any stock dividends and deferred cash dividends issued with
respect to Restricted Shares shall be subject to the same restrictions and other
terms as apply to the Restricted Shares with respect to which such dividends are
issued. The Committee may provide for payment of interest on deferred cash
dividends.

                                     -21-
<PAGE>   25

         17.7.    Nature of Payments. Awards shall be special incentive payments
to the Grantee and shall not be taken into account in computing the amount of
salary or compensation of the Grantee for purposes of determining any pension,
retirement, death or other benefit under (a) any pension, retirement,
profit-sharing, bonus, insurance or other employee benefit plan of the Company
or any Subsidiary or (b) any agreement between (i) the Company or any Subsidiary
and (ii) the Grantee, except as such plan or agreement shall otherwise expressly
provide.

         17.8.    Governing Law. The Plan shall be construed in accordance with
and governed by the laws of the State of Alabama other than its laws respecting
choice of law.

                                      -22-<PAGE>   1

                                                                     EXHIBIT 4.4

                             INTEGRITY INCORPORATED
                          1999 LONG-TERM INCENTIVE PLAN

                                    ARTICLE 1
                                     PURPOSE

         1.1      GENERAL. The purpose of the Integrity Incorporated 1999
Long-Term Incentive Plan (the "Plan") is to promote the success, and enhance the
value, of Integrity Incorporated (the "Company"), by linking the personal
interests of its employees, officers and directors to those of Company
stockholders and by providing such persons with an incentive for outstanding
performance. The Plan is further intended to provide flexibility to the Company
in its ability to motivate, attract, and retain the services of employees,
officers and directors upon whose judgment, interest, and special effort the
successful conduct of the Company's operation is largely dependent. Accordingly,
the Plan permits the grant of incentive awards from time to time to selected
employees, officers and directors.

                                    ARTICLE 2
                                 EFFECTIVE DATE

         2.1      EFFECTIVE DATE. The Plan shall be effective as of the date
upon which it shall be approved by the Board (the "Effective Date"). However,
the Plan shall be submitted to the stockholders of the Company for approval
within 12 months of the Board's approval thereof. No Incentive Stock Options
granted under the Plan may be exercised prior to approval of the Plan by the
stockholders and if the stockholders fail to approve the Plan within 12 months
of the Board's approval thereof, any Incentive Stock Options previously granted
hereunder shall be automatically converted to Non-Qualified Stock Options
without any further act. In the discretion of the Committee, Awards may be made
to Covered Employees which Awards are intended to constitute qualified
performance-based compensation under Code Section 162(m). Any such Awards shall
be contingent upon the stockholders having approved the Plan.

                                    ARTICLE 3
                                   DEFINITIONS

         3.1      DEFINITIONS. When a word or phrase appears in this Plan with
the initial letter capitalized, and the word or phrase does not commence a
sentence, the word or phrase shall generally be given the meaning ascribed to it
in this Section or in Section 1.1 unless a clearly different meaning is required
by the context. The following words and phrases shall have the following
meanings:

                  (a)      "Award" means any Option, Stock Appreciation Right,
         Restricted Stock Award, Performance Share Award or Other Stock-Based
         Award, or any other right or interest relating to Stock or cash,
         granted to a Participant under the Plan.

<PAGE>   2

                  (b)      "Award Agreement" means any written agreement,
         contract, or other instrument or document evidencing an Award.

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

                  (d)      "Change in Control" means and includes each of the
         following:

                           (1)      The acquisition by any individual, entity or
                  group (within the meaning of Section 13(d)(3) or 14(d)(2) of
                  the 1934 Act) (a "Person") of beneficial ownership (within the
                  meaning of Rule 13d-3 promulgated under the 1934 Act) of 50%
                  or more of 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"); provided, however, that for purposes of this
                  subsection (1), the following acquisitions shall not
                  constitute a Change of Control: (i) any acquisition by a
                  Person who is on the Effective Date the beneficial owner of
                  50% or more of the Outstanding Company Voting Securities, (ii)
                  any acquisition directly from the Company, (iii) any
                  acquisition by the Company, (iv) any acquisition by any
                  employee benefit plan (or related trust) sponsored or
                  maintained by the Company or any corporation controlled by the
                  Company, or (v) any acquisition by any corporation pursuant to
                  a transaction which complies with clauses (i) and (ii) of
                  subsection (3) of this definition; or

                           (2)      Individuals who, as of the Effective Date,
                  constitute the Board (the "Incumbent Board") cease for any
                  reason to constitute at least a majority of the Board;
                  provided, however, that any individual becoming a director
                  subsequent to the Effective Date whose election, or nomination
                  for election by the Company's stockholders, was approved by a
                  vote of at least a majority of the directors then comprising
                  the Incumbent Board shall be considered as though such
                  individual were a member of the Incumbent Board, but
                  excluding, for this purpose, any such individual whose initial
                  assumption of office occurs as a result of an actual or
                  threatened election contest with respect to the election or
                  removal of directors or other actual or threatened
                  solicitation of proxies or consents by or on behalf of a
                  Person other than the Board; or

                           (3)      Consummation of a reorganization, merger,
                  consolidation or share exchange, or sale or other disposition
                  of all or substantially all of the assets of the Company (a
                  "Business Combination"), in each case, unless, following such
                  Business Combination, (i) all or substantially all of the
                  individuals and entities who were the beneficial owners of the
                  Outstanding Company Voting Securities immediately prior to
                  such Business Combination beneficially own, directly or
                  indirectly, more than

                                      -2-
<PAGE>   3

                  50% of the combined voting power of the then outstanding
                  voting securities entitled to vote generally in the election
                  of directors of the corporation resulting from such Business
                  Combination (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
                  Business Combination of the Outstanding Company Voting
                  Securities, and (ii) at least a majority of the members of the
                  board of directors of the corporation resulting from such
                  Business Combination were members of the Incumbent Board at
                  the time of the execution of the initial agreement, or of the
                  action of the Board, providing for such Business Combination.

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

                  (f)      "Committee" means the committee of the Board
         described in Article 4.

                  (g)      "Company" means Integrity Incorporated, a Delaware
         corporation.

                  (h)      "Covered Employee" means a covered employee as
         defined in Code Section 162(m)(3).

                  (i)      "Disability" means any illness or other physical or
         mental condition of a Participant that renders the Participant
         incapable of performing his customary and usual duties for the Company,
         or any medically determinable illness or other physical or mental
         condition resulting from a bodily injury, disease or mental disorder
         which, in the judgment of the Committee, is permanent and continuous in
         nature. The Committee may require such medical or other evidence as it
         deems necessary to judge the nature and permanency of the Participant's
         condition. Notwithstanding the above, with respect to an Incentive
         Stock Option, Disability shall mean Permanent and Total Disability as
         defined in Section 22(e)(3) of the Code.

                  (j)      "Effective Date" has the meaning assigned such term
         in Section 2.1.

                  (k)      "Fair Market Value", on any date, means the closing
         sales price of the Stock as reported on a securities exchange or the
         Nasdaq National Market or Nasdaq Small Cap Market on such date or, in
         the absence of reported sales on such date, the closing sales price on
         the immediately preceding date on which sales were reported, provided
         that if it is determined that the fair market value is not properly
         reflected by such market quotations, Fair Market Value will be
         determined by such other method as the Committee determines in good
         faith to be reasonable.

                                      -3-
<PAGE>   4

                  (l)      "Incentive Stock Option" means an Option that is
         intended to meet the requirements of Section 422 of the Code or any
         successor provision thereto.

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

                  (n)      "Option" means a right granted to a Participant under
         Article 7 of the Plan to purchase Stock at a specified price during
         specified time periods. An Option may be either an Incentive Stock
         Option or a Non-Qualified Stock Option.

                  (o)      "Other Stock-Based Award" means a right, granted to a
         Participant under Article 11, that relates to or is valued by reference
         to Stock or other Awards relating to Stock.

                  (p)      "Parent" means a corporation which owns or
         beneficially owns a majority of the outstanding voting stock or voting
         power of the Company. For Incentive Stock Options, the term shall have
         the same meaning as set forth in Code Section 424(e).

                  (q)      "Participant" means a person who, as an employee,
         officer or director of the Company or any Subsidiary, has been granted
         an Award under the Plan.

                  (r)      "Performance Share" means a right granted to a
         Participant under Article 9, to receive cash, Stock, or other Awards,
         the payment of which is contingent upon achieving certain performance
         goals established by the Committee.

                  (s)      "Plan" means the Integrity Incorporated 1999
         Long-Term Incentive Plan, as amended from time to time.

                  (t)      "Restricted Stock Award" means Stock granted to a
         Participant under Article 10 that is subject to certain restrictions
         and to risk of forfeiture.

                  (u)      "Stock" means the $0.01 par value Class A common
         stock of the Company and such other securities of the Company as may be
         substituted for Stock pursuant to Article 13.

                  (v)      "Stock Appreciation Right" or "SAR" means a right
         granted to a Participant under Article 8 to receive a payment equal to
         the difference between the Fair Market Value of a share of Stock as of
         the date of exercise of the SAR over the grant price of the SAR, all as
         determined pursuant to Article 8.

                                      -4-
<PAGE>   5

                  (w)      "Subsidiary" means any corporation, limited liability
         company, partnership or other entity of which a majority of the
         outstanding voting stock or voting power is beneficially owned directly
         or indirectly by the Company. For Incentive Stock Options, the term
         shall have the meaning set forth in Code Section 424(f).

                  (x)      "1933 Act" means the Securities Act of 1933, as
         amended from time to time.

                  (y)      "1934 Act" means the Securities Exchange Act of 1934,
         as amended from time to time.

                                    ARTICLE 4
                                 ADMINISTRATION

         4.1      COMMITTEE. The Plan shall be administered by the Compensation
Committee of the Board or, at the discretion of the Board from time to time, by
the Board. The Committee shall consist of two or more members of the Board. It
is intended that the directors appointed to serve on the Committee shall be
"non-employee directors" (within the meaning of Rule 16b-3 promulgated under the
1934 Act) and "outside directors" (within the meaning of Code Section 162(m) and
the regulations thereunder) to the extent that Rule 16b-3 and, if necessary for
relief from the limitation under Code Section 162(m) and such relief is sought
by the Company, Code Section 162(m), respectively, are applicable. However, the
mere fact that a Committee member shall fail to qualify under either of the
foregoing requirements shall not invalidate any Award made by the Committee
which Award is otherwise validly made under the Plan. The members of the
Committee shall be appointed by, and may be changed at any time and from time to
time in the discretion of, the Board. During any time that the Board is acting
as administrator of the Plan, it shall have all the powers of the Committee
hereunder, and any reference herein to the Committee (other than in this Section
4.1) shall include the Board.

         4.2      ACTION BY THE COMMITTEE. For purposes of administering the
Plan, the following rules of procedure shall govern the Committee. A majority of
the Committee shall constitute a quorum. The acts of a majority of the members
present at any meeting at which a quorum is present, and acts approved
unanimously in writing by the members of the Committee in lieu of a meeting,
shall be deemed the acts of the Committee. Each member of the Committee is
entitled to, in good faith, rely or act upon any report or other information
furnished to that member by any officer or other employee of the Company or any
Parent or Subsidiary, the Company's independent certified public accountants, or
any executive compensation consultant or other professional retained by the
Company to assist in the administration of the Plan.

         4.3      AUTHORITY OF COMMITTEE. The Committee has the exclusive power,
authority and discretion to:

                                      -5-
<PAGE>   6

                  (a)      Designate Participants;

                  (b)      Determine the type or types of Awards to be granted
         to each Participant;

                  (c)      Determine the number of Awards to be granted and the
         number of shares of Stock to which an Award will relate;

                  (d)      Determine the terms and conditions of any Award
         granted under the Plan, including but not limited to, the exercise
         price, grant price, or purchase price, any restrictions or limitations
         on the Award, any schedule for lapse of forfeiture restrictions or
         restrictions on the exercisability of an Award, and accelerations or
         waivers thereof, based in each case on such considerations as the
         Committee in its sole discretion determines;

                  (e)      Accelerate the vesting or lapse of restrictions of
         any outstanding Award, based in each case on such considerations as the
         Committee in its sole discretion determines;

                  (f)      Determine whether, to what extent, and under what
         circumstances an Award may be settled in, or the exercise price of an
         Award may be paid in, cash, Stock, other Awards, or other property, or
         an Award may be canceled, forfeited, or surrendered;

                  (g)      Prescribe the form of each Award Agreement, which
         need not be identical for each Participant;

                  (h)      Decide all other matters that must be determined in
         connection with an Award;

                  (i)      Establish, adopt or revise any rules and regulations
         as it may deem necessary or advisable to administer the Plan;

                  (j)      Make all other decisions and determinations that may
         be required under the Plan or as the Committee deems necessary or
         advisable to administer the Plan; and

                  (k)      Amend the Plan or any Award Agreement as provided
         herein.

         4.4.     DECISIONS BINDING. The Committee's interpretation of the Plan,
any Awards granted under the Plan, any Award Agreement and all decisions and
determinations by the Committee with respect to the Plan are final, binding, and
conclusive on all parties.

                                      -6-
<PAGE>   7

                                    ARTICLE 5
                           SHARES SUBJECT TO THE PLAN

         5.1.     NUMBER OF SHARES. Subject to adjustment as provided in Section
13.1, the aggregate number of shares of Stock reserved and available for Awards
or which may be used to provide a basis of measurement for or to determine the
value of an Award (such as with a Stock Appreciation Right or Performance Share
Award) shall be 400,000, of which not more than 50% may be granted as Awards of
Restricted Stock or unrestricted Stock Awards.

         5.2.     LAPSED AWARDS. To the extent that an Award is canceled,
terminates, expires or lapses for any reason, any shares of Stock subject to the
Award will again be available for the grant of an Award under the Plan and
shares subject to SARs or other Awards settled in cash will be available for the
grant of an Award under the Plan.

         5.3.     STOCK DISTRIBUTED. Any Stock distributed pursuant to an Award
may consist, in whole or in part, of authorized and unissued Stock, treasury
Stock or Stock purchased on the open market.

         5.4.     LIMITATION ON AWARDS. Notwithstanding any provision in the
Plan to the contrary (but subject to adjustment as provided in Section 13.1),
the maximum number of shares of Stock with respect to one or more Options and/or
SARs that may be granted during any one calendar year under the Plan to any one
Participant shall be 200,000. The maximum fair market value (measured as of the
date of grant) of any Awards other than Options and SARs that may be received by
any one Participant (less any consideration paid by the Participant for such
Award) during any one calendar year under the Plan shall be $5,000,000.

                                    ARTICLE 6
                                   ELIGIBILITY

         6.1.     GENERAL. Awards may be granted only to individuals who are
employees, officers or directors of the Company or a Parent or Subsidiary.

                                    ARTICLE 7
                                  STOCK OPTIONS

         7.1.     GENERAL. The Committee is authorized to grant Options to
Participants on the following terms and conditions:

                  (a)      EXERCISE PRICE. The exercise price per share of Stock
         under an Option shall be determined by the Committee, provided that the
         exercise price for an Option shall not be less than the Fair Market
         Value as of the date of the grant.

                                      -7-
<PAGE>   8

                  (b)      TIME AND CONDITIONS OF EXERCISE. The Committee shall
         determine the time or times at which an Option may be exercised in
         whole or in part. The Committee also shall determine the performance or
         other conditions, if any, that must be satisfied before all or part of
         an Option may be exercised. The Committee may waive any exercise
         provisions at any time in whole or in part based upon factors as the
         Committee may determine in its sole discretion so that the Option
         becomes exercisable at an earlier date.

                  (c)      PAYMENT. The Committee shall determine the methods by
         which the exercise price of an Option may be paid, the form of payment,
         including, without limitation, cash, shares of Stock, or other property
         (including "cashless exercise" arrangements), and the methods by which
         shares of Stock shall be delivered or deemed to be delivered to
         Participants; provided that if shares of Stock surrendered in payment
         of the exercise price were themselves acquired otherwise than on the
         open market, such shares shall have been held by the Participant for at
         least six months.

                  (d)      EVIDENCE OF GRANT. All Options shall be evidenced by
         a written Award Agreement between the Company and the Participant. The
         Award Agreement shall include such provisions, not inconsistent with
         the Plan, as may be specified by the Committee.

         7.2.     INCENTIVE STOCK OPTIONS. The terms of any Incentive Stock
Options granted under the Plan must comply with the following additional rules:

                  (a)      EXERCISE PRICE. The exercise price per share of Stock
         shall be set by the Committee, provided that the exercise price for any
         Incentive Stock Option shall not be less than the Fair Market Value as
         of the date of the grant.

                  (b)      EXERCISE. In no event may any Incentive Stock Option
         be exercisable for more than ten years from the date of its grant.

                  (c)      LAPSE OF OPTION. An Incentive Stock Option shall
         lapse under the earliest of the following circumstances; provided,
         however, that the Committee may, prior to the lapse of the Incentive
         Stock Option under the circumstances described in paragraphs (3), (4)
         and (5) below, provide in writing that the Option will extend until a
         later date, but if Option is exercised after the dates specified in
         paragraphs (3), (4) and (5) below, it will automatically become a
         Non-Qualified Stock Option:

                           (1)      The Incentive Stock Option shall lapse as of
                  the option expiration date set forth in the Award Agreement.

                           (2)      The Incentive Stock Option shall lapse ten
                  years after it is granted, unless an earlier time is set in
                  the Award Agreement.

                                      -8-
<PAGE>   9

                           (3)      If the Participant terminates employment for
                  any reason other than as provided in paragraph (4) or (5)
                  below, the Incentive Stock Option shall lapse, unless it is
                  previously exercised, three months after the Participant's
                  termination of employment.

                           (4)      If the Participant terminates employment by
                  reason of his Disability, the Incentive Stock Option shall
                  lapse, unless it is previously exercised, one year after the
                  Participant's termination of employment.

                           (5)      If the Participant dies while employed, or
                  during the three-month period described in paragraph (3) or
                  during the one-year period described in paragraph (4) and
                  before the Option otherwise lapses, the Option shall lapse one
                  year after the Participant's death. Upon the Participant's
                  death, any exercisable Incentive Stock Options may be
                  exercised by the Participant's beneficiary, determined in
                  accordance with Section 12.6.

                  Unless the exercisability of the Incentive Stock Option is
         accelerated as provided in Article 12, if a Participant exercises an
         Option after termination of employment, the Option may be exercised
         only with respect to the shares that were otherwise vested on the
         Participant's termination of employment.

                  (d)      INDIVIDUAL DOLLAR LIMITATION. The aggregate Fair
         Market Value (determined as of the time an Award is made) of all shares
         of Stock with respect to which Incentive Stock Options are first
         exercisable by a Participant in any calendar year may not exceed
         $100,000.00.

                  (e)      TEN PERCENT OWNERS. No Incentive Stock Option shall
         be granted to any individual who, at the date of grant, owns stock
         possessing more than ten percent of the total combined voting power of
         all classes of stock of the Company or any Parent or Subsidiary unless
         the exercise price per share of such Option is at least 110% of the
         Fair Market Value per share of Stock at the date of grant and the
         Option expires no later than five years after the date of grant.

                  (f)      EXPIRATION OF INCENTIVE STOCK OPTIONS. No Award of an
         Incentive Stock Option may be made pursuant to the Plan after the day
         immediately prior to the tenth anniversary of the Effective Date.

                  (g)      RIGHT TO EXERCISE. During a Participant's lifetime,
         an Incentive Stock Option may be exercised only by the Participant or,
         in the case of the Participant's Disability, by the Participant's
         guardian or legal representative.

                  (h)      DIRECTORS. The Committee may not grant an Incentive
         Stock Option to a non-employee director. The Committee may grant an
         Incentive Stock

                                      -9-
<PAGE>   10

         Option to a director who is also an employee of the Company or Parent
         or Subsidiary but only in that individual's position as an employee and
         not as a director.

                                    ARTICLE 8
                            STOCK APPRECIATION RIGHTS

         8.1.     GRANT OF SARs. The Committee is authorized to grant SARs to
Participants on the following terms and conditions:

                  (a)      RIGHT TO PAYMENT. Upon the exercise of a Stock
         Appreciation Right, the Participant to whom it is granted has the right
         to receive the excess, if any, of:

                           (1)      The Fair Market Value of one share of Stock
                  on the date of exercise; over

                           (2)      The grant price of the Stock Appreciation
                  Right as determined by the Committee.

                  (b)      OTHER TERMS. All awards of Stock Appreciation Rights
         shall be evidenced by an Award Agreement. The terms, methods of
         exercise, methods of settlement, form of consideration payable in
         settlement, and any other terms and conditions of any Stock
         Appreciation Right shall be determined by the Committee at the time of
         the grant of the Award and shall be reflected in the Award Agreement.

                                    ARTICLE 9
                               PERFORMANCE SHARES

         9.1.     GRANT OF PERFORMANCE SHARES. The Committee is authorized to
grant Performance Shares to Participants on such terms and conditions as may be
selected by the Committee. The Committee shall have the complete discretion to
determine the number of Performance Shares granted to each Participant. All
Awards of Performance Shares shall be evidenced by an Award Agreement.

         9.2.     RIGHT TO PAYMENT. A grant of Performance Shares gives the
Participant rights, valued as determined by the Committee, and payable to, or
exercisable by, the Participant to whom the Performance Shares are granted, in
whole or in part, as the Committee shall establish at grant or thereafter. The
Committee shall set performance goals and other terms or conditions to payment
of the Performance Shares in its discretion which, depending on the extent to
which they are met, will determine the number and value of Performance Shares
that will be paid to the Participant.

<PAGE>   11

         9.3.     OTHER TERMS. Performance Shares may be payable in cash, Stock,
or other property, and have such other terms and conditions as determined by the
Committee and reflected in the Award Agreement.

                                   ARTICLE 10
                             RESTRICTED STOCK AWARDS

         10.1.    GRANT OF RESTRICTED STOCK. The Committee is authorized to make
Awards of Restricted Stock to Participants in such amounts and subject to such
terms and conditions as may be selected by the Committee. All Awards of
Restricted Stock shall be evidenced by a Restricted Stock Award Agreement.

         10.2.    ISSUANCE AND RESTRICTIONS. Restricted Stock shall be subject
to such restrictions on transferability and other restrictions as the Committee
may impose (including, without limitation, limitations on the right to vote
Restricted Stock or the right to receive dividends on the Restricted Stock).
These restrictions may lapse separately or in combination at such times, under
such circumstances, in such installments, upon the satisfaction of performance
goals or otherwise, as the Committee determines at the time of the grant of the
Award or thereafter.

         10.3.    FORFEITURE. Except as otherwise determined by the Committee at
the time of the grant of the Award or thereafter, upon termination of employment
during the applicable restriction period or upon failure to satisfy a
performance goal during the applicable restriction period, Restricted Stock that
is at that time subject to restrictions shall be forfeited and reacquired by the
Company; provided, however, that the Committee may provide in any Award
Agreement that restrictions or forfeiture conditions relating to Restricted
Stock will be waived in whole or in part in the event of terminations resulting
from specified causes, and the Committee may in other cases waive in whole or in
part restrictions or forfeiture conditions relating to Restricted Stock.

         10.4.    CERTIFICATES FOR RESTRICTED STOCK. Restricted Stock granted
under the Plan may be evidenced in such manner as the Committee shall determine.
If certificates representing shares of Restricted Stock are registered in the
name of the Participant, certificates must bear an appropriate legend referring
to the terms, conditions, and restrictions applicable to such Restricted Stock.

                                   ARTICLE 11
                            OTHER STOCK-BASED AWARDS

         11.1.    GRANT OF OTHER STOCK-BASED AWARDS. The Committee is
authorized, subject to limitations under applicable law, to grant to
Participants such other Awards that are payable in, valued in whole or in part
by reference to, or otherwise based on or related to shares of Stock, as deemed
by the Committee to be consistent with the purposes of the Plan, including
without limitation shares of Stock awarded purely as a "bonus" and not subject
to any restrictions or conditions, convertible or exchangeable debt

<PAGE>   12
securities, other rights convertible or exchangeable into shares of Stock, and
Awards valued by reference to book value of shares of Stock or the value of
securities of or the performance of specified Parents or Subsidiaries. The
Committee shall determine the terms and conditions of such Awards.

                                   ARTICLE 12
                         PROVISIONS APPLICABLE TO AWARDS

         12.1.    STAND-ALONE, TANDEM, AND SUBSTITUTE AWARDS. Awards granted
under the Plan may, in the discretion of the Committee, be granted either alone
or in addition to, in tandem with, or in substitution for, any other Award
granted under the Plan. If an Award is granted in substitution for another
Award, the Committee may require the surrender of such other Award in
consideration of the grant of the new Award. Awards granted in addition to or in
tandem with other Awards may be granted either at the same time as or at a
different time from the grant of such other Awards.

         12.2.    EXCHANGE PROVISIONS. The Committee may at any time offer to
exchange or buy out any previously granted Award for a payment in cash, Stock,
or another Award (subject to Section 13.1), based on the terms and conditions
the Committee determines and communicates to the Participant at the time the
offer is made, and after taking into account the tax, securities and accounting
effects of such an exchange.

         12.3.    TERM OF AWARD. The term of each Award shall be for the period
as determined by the Committee, provided that in no event shall the term of any
Incentive Stock Option or a Stock Appreciation Right granted in tandem with the
Incentive Stock Option exceed a period of ten years from the date of its grant
(or, if Section 7.2(e) applies, five years from the date of its grant).

         12.4.    FORM OF PAYMENT FOR AWARDS. Subject to the terms of the Plan
and any applicable law or Award Agreement, payments or transfers to be made by
the Company or a Parent or Subsidiary on the grant or exercise of an Award may
be made in such form as the Committee determines at or after the time of grant,
including without limitation, cash, Stock, other Awards, or other property, or
any combination, and may be made in a single payment or transfer, in
installments, or on a deferred basis, in each case determined in accordance with
rules adopted by, and at the discretion of, the Committee.

         12.5.    LIMITS ON TRANSFER. No right or interest of a Participant in
any unexercised or restricted Award may be pledged, encumbered, or hypothecated
to or in favor of any party other than the Company or a Parent or Subsidiary, or
shall be subject to any lien, obligation, or liability of such Participant to
any other party other than the Company or a Parent or Subsidiary. No unexercised
or restricted Award shall be assignable or transferable by a Participant other
than by will or the laws of descent and distribution or, except in the case of
an Incentive Stock Option, pursuant to a domestic relations order that would
satisfy Section 414(p)(1)(A) of the Code if such Section applied

<PAGE>   13
to an Award under the Plan; provided, however, that the Committee may (but need
not) permit other transfers where the Committee concludes that such
transferability (i) does not result in accelerated taxation, (ii) does not cause
any Option intended to be an incentive stock option to fail to be described in
Code Section 422(b), and (iii) is otherwise appropriate and desirable, taking
into account any factors deemed relevant, including without limitation, any
state or federal tax or securities laws or regulations applicable to
transferable Awards.

         12.6     BENEFICIARIES. Notwithstanding Section 12.5, a Participant
may, in the manner determined by the Committee, designate a beneficiary to
exercise the rights of the Participant and to receive any distribution with
respect to any Award upon the Participant's death. A beneficiary, legal
guardian, legal representative, or other person claiming any rights under the
Plan is subject to all terms and conditions of the Plan and any Award Agreement
applicable to the Participant, except to the extent the Plan and Award Agreement
otherwise provide, and to any additional restrictions deemed necessary or
appropriate by the Committee. If no beneficiary has been designated or survives
the Participant, payment shall be made to the Participant's estate. Subject to
the foregoing, a beneficiary designation may be changed or revoked by a
Participant at any time provided the change or revocation is filed with the
Committee.

         12.7.    STOCK CERTIFICATES. All Stock certificates delivered under the
Plan are subject to any stop-transfer orders and other restrictions as the
Committee deems necessary or advisable to comply with federal or state
securities laws, rules and regulations and the rules of any national securities
exchange or automated quotation system on which the Stock is listed, quoted, or
traded. The Committee may place legends on any Stock certificate to reference
restrictions applicable to the Stock.

         12.8.    ACCELERATION UPON A CHANGE IN CONTROL. Except as otherwise
provided in the Award Agreement, upon the occurrence of a Change in Control, all
outstanding Options, Stock Appreciation Rights, and other Awards in the nature
of rights that may be exercised shall become fully exercisable and all
restrictions on outstanding Awards shall lapse; provided, however that such
acceleration will not occur if, in the opinion of the Company's accountants,
such acceleration would preclude the use of "pooling of interest" accounting
treatment for a Change in Control transaction that (a) would otherwise qualify
for such accounting treatment, and (b) is contingent upon qualifying for such
accounting treatment. To the extent that this provision causes Incentive Stock
Options to exceed the dollar limitation set forth in Section 7.2(d), the excess
Options shall be deemed to be Non-Qualified Stock Options.

         12.9.    ACCELERATION UPON CERTAIN EVENTS NOT CONSTITUTING A CHANGE IN
CONTROL. In the event of the occurrence of any circumstance, transaction or
event not constituting a Change in Control (as defined in Section 3.1) but which
the Board of Directors deems to be, or to be reasonably likely to lead to, an
effective change in control of the Company of a nature that would be required to
be reported in response to Item 6(e) of Schedule 14A of the 1934 Act, the
Committee may in

<PAGE>   14

its sole discretion declare all outstanding Options, Stock Appreciation Rights,
and other Awards in the nature of rights that may be exercised to be fully
exercisable, and/or all restrictions on all outstanding Awards to have lapsed,
in each case, as of such date as the Committee may, in its sole discretion,
declare, which may be on or before the consummation of such transaction or
event. To the extent that this provision causes Incentive Stock Options to
exceed the dollar limitation set forth in Section 7.2(d), the excess Options
shall be deemed to be Non-Qualified Stock Options.

         12.10.   ACCELERATION FOR ANY OTHER REASON. Regardless of whether an
event has occurred as described in Section 12.8 or 12.9 above, the Committee may
in its sole discretion at any time determine that all or a portion of a
Participant's Options, Stock Appreciation Rights, and other Awards in the nature
of rights that may be exercised shall become fully or partially exercisable,
and/or that all or a part of the restrictions on all or a portion of the
outstanding Awards shall lapse, in each case, as of such date as the Committee
may, in its sole discretion, declare. The Committee may discriminate among
Participants and among Awards granted to a Participant in exercising its
discretion pursuant to this Section 12.10.

         12.11    EFFECT OF ACCELERATION. If an Award is accelerated under
Section 12.8 or 12.9, the Committee may, in its sole discretion, provide (i)
that the Award will expire after a designated period of time after such
acceleration to the extent not then exercised, (ii) that the Award will be
settled in cash rather than Stock, (iii) that the Award will be assumed by
another party to the transaction giving rise to the acceleration or otherwise be
equitably converted in connection with such transaction, or (iv) any combination
of the foregoing. The Committee's determination need not be uniform and may be
different for different Participants whether or not such Participants are
similarly situated.

         12.12.   PERFORMANCE GOALS. The Committee may determine that any Award
granted pursuant to this Plan to a Participant (including, but not limited to,
Participants who are Covered Employees) shall be determined solely on the basis
of (a) the achievement by the Company or a Parent or Subsidiary of a specified
target return, or target growth in return, on equity or assets, (b) the
Company's stock price, (c) the achievement by an individual or a business unit
of the Company, Parent or Subsidiary of a specified target, or target growth in,
revenues, net income or earnings per share, (d) the achievement of objectively
determinable goals with respect to service or product delivery, service or
product quality, customer satisfaction, meeting budgets and/or retention of
employees, or (e) any combination of the goals set forth in (a) through (d)
above. If an Award is made on such basis, the Committee shall establish goals
prior to the beginning of the period for which such performance goal relates (or
such later date as may be permitted under Code Section 162(m) or the regulations
thereunder) and the Committee may for any reason reduce (but not increase) any
Award, notwithstanding the achievement of a specified goal. Any payment of an
Award granted with performance goals shall be conditioned on the written
certification of the Committee in each case that the performance goals and any
other material conditions were satisfied.

<PAGE>   15

         12.13.   TERMINATION OF EMPLOYMENT. Whether military, government or
other service or other leave of absence shall constitute a termination of
employment shall be determined in each case by the Committee at its discretion,
and any determination by the Committee shall be final and conclusive. A
termination of employment shall not occur in a circumstance in which a
Participant transfers from the Company to one of its Parents or Subsidiaries,
transfers from a Parent or Subsidiary to the Company, or transfers from one
Parent or Subsidiary to another Parent or Subsidiary.

                                   ARTICLE 13
                          CHANGES IN CAPITAL STRUCTURE

         13.1.    GENERAL. In the event a stock dividend is declared upon the
Stock, the authorization limits under Section 5.1 and 5.4 shall be increased
proportionately, and the shares of Stock then subject to each Award shall be
increased proportionately without any change in the aggregate purchase price
therefor. In the event the Stock shall be changed into or exchanged for a
different number or class of shares of stock or securities of the Company or of
another corporation, whether through reorganization, recapitalization,
reclassification, share exchange, stock split-up, combination of shares, merger
or consolidation, the authorization limits under Section 5.1 and 5.4 shall be
adjusted proportionately, and there shall be substituted for each such share of
Stock then subject to each Award the number and class of shares into which each
outstanding share of Stock shall be so exchanged, all without any change in the
aggregate purchase price for the shares then subject to each Award, or, subject
to Section 15.2, there shall be made such other equitable adjustment as the
Committee shall approve.

                                   ARTICLE 14
                    AMENDMENT, MODIFICATION AND TERMINATION

         14.1.    AMENDMENT, MODIFICATION AND TERMINATION. The Board or the
Committee may, at any time and from time to time, amend, modify or terminate the
Plan without stockholder approval; provided, however, that the Board or
Committee may condition any amendment or modification on the approval of
stockholders of the Company if such approval is necessary or deemed advisable
with respect to tax, securities or other applicable laws, policies or
regulations.

         14.2     AWARDS PREVIOUSLY GRANTED. At any time and from time to time,
the Committee may amend, modify or terminate any outstanding Award without
approval of the Participant; provided, however, that, subject to the terms of
the applicable Award Agreement, such amendment, modification or termination
shall not, without the Participant's consent, reduce or diminish the value of
such Award determined as if the Award had been exercised, vested, cashed in or
otherwise settled on the date of such amendment or termination, and provided
further that, except as otherwise permitted in the

<PAGE>   16

Plan, the exercise price of any Option may not be reduced and the original term
of any Option may not be extended. No termination, amendment, or modification of
the Plan shall adversely affect any Award previously granted under the Plan,
without the written consent of the Participant.

                                   ARTICLE 15
                               GENERAL PROVISIONS

         15.1.    NO RIGHTS TO AWARDS. No Participant or eligible participant
shall have any claim to be granted any Award under the Plan, and neither the
Company nor the Committee is obligated to treat Participants or eligible
participants uniformly.

         15.2.    NO STOCKHOLDER RIGHTS. No Award gives the Participant any of
the rights of a stockholder of the Company unless and until shares of Stock are
in fact issued to such person in connection with such Award.

         15.3.    WITHHOLDING. The Company or any Parent or Subsidiary shall
have the authority and the right to deduct or withhold, or require a Participant
to remit to the Company, an amount sufficient to satisfy federal, state, and
local taxes (including the Participant's FICA obligation) required by law to be
withheld with respect to any taxable event arising as a result of the Plan. With
respect to withholding required upon any taxable event under the Plan, the
Committee may, at the time the Award is granted or thereafter, require that any
such withholding requirement be satisfied, in whole or in part, by withholding
shares of Stock having a Fair Market Value on the date of withholding equal to
the amount required to be withheld for tax purposes, all in accordance with such
procedures as the Committee establishes.

         15.4.    NO RIGHT TO CONTINUED SERVICE. Nothing in the Plan or any
Award Agreement shall interfere with or limit in any way the right of the
Company or any Parent or Subsidiary to terminate any Participant's employment or
status as an officer or director at any time, nor confer upon any Participant
any right to continue as an employee, officer or director of the Company or any
Parent or Subsidiary.

         l5.5.    UNFUNDED STATUS OF AWARDS. The Plan is intended to be an
"unfunded" plan for incentive and deferred compensation. With respect to any
payments not yet made to a Participant pursuant to an Award, nothing contained
in the Plan or any Award Agreement shall give the Participant any rights that
are greater than those of a general creditor of the Company or any Parent or
Subsidiary.

         15.6.    INDEMNIFICATION. To the extent allowable under applicable law,
each member of the Committee shall be indemnified and held harmless by the
Company from any loss, cost, liability, or expense that may be imposed upon or
reasonably incurred by such member in connection with or resulting from any
claim, action, suit, or proceeding to which such member may be a party or in
which he may be involved by reason of any action or failure to act under the
Plan and against and from any and all amounts paid by

<PAGE>   17

such member in satisfaction of judgment in such action, suit, or proceeding
against him provided he gives the Company an opportunity, at its own expense, to
handle and defend the same before he undertakes to handle and defend it on his
own behalf. The foregoing right of indemnification shall not be exclusive of any
other rights of indemnification to which such persons may be entitled under the
Company's Certificate of Incorporation or Bylaws, as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold them
harmless.

         15.7.    RELATIONSHIP TO OTHER BENEFITS. No payment under the Plan
shall be taken into account in determining any benefits under any pension,
retirement, savings, profit sharing, group insurance, welfare or benefit plan of
the Company or any Parent or Subsidiary unless provided otherwise in such other
plan.

         15.8.    EXPENSES. The expenses of administering the Plan shall be
borne by the Company and its Parents or Subsidiaries.

         15.9.    TITLES AND HEADINGS. The titles and headings of the Sections
in the Plan are for convenience of reference only, and in the event of any
conflict, the text of the Plan, rather than such titles or headings, shall
control.

         15.10.   GENDER AND NUMBER. Except where otherwise indicated by the
context, any masculine term used herein also shall include the feminine; the
plural shall include the singular and the singular shall include the plural.

         15.11.   FRACTIONAL SHARES. No fractional shares of Stock shall be
issued and the Committee shall determine, in its discretion, whether cash shall
be given in lieu of fractional shares or whether such fractional shares shall be
eliminated by rounding up.

         15.12.   GOVERNMENT AND OTHER REGULATIONS. The obligation of the
Company to make payment of awards in Stock or otherwise shall be subject to all
applicable laws, rules, and regulations, and to such approvals by government
agencies as may be required. The Company shall be under no obligation to
register under the 1933 Act, or any state securities act, any of the shares of
Stock paid under the Plan. The shares paid under the Plan may in certain
circumstances be exempt from registration under the 1933 Act, and the Company
may restrict the transfer of such shares in such manner as it deems advisable to
ensure the availability of any such exemption.

         15.13.   GOVERNING LAW. To the extent not governed by federal law, the
Plan and all Award Agreements shall be construed in accordance with and governed
by the laws of the State of Delaware.

         15.14    ADDITIONAL PROVISIONS. Each Award Agreement may contain such
other terms and conditions as the Committee may determine; provided that such
other terms and conditions are not inconsistent with the provisions of this
Plan.

<PAGE>   18

         The foregoing is hereby acknowledged as being the Integrity
Incorporated 1999 Long-Term Incentive Plan as adopted by the Board of Directors
of the Company on February 11, 1999, and to be submitted to the Company's
stockholders at the 1999 Annual Meeting of Stockholders.

                                            Integrity Incorporated

                                            By:  /s/ P. Michael Coleman
                                                 ------------------------------
                                            Its: President
                                                 ------------------------------

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