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                                                                   EXHIBIT 10.2

                               SECURITY AGREEMENT

     SECURITY AGREEMENT, dated as of March 19, 2003, by and among HEXCEL
CORPORATION, a Delaware corporation ("HEXCEL"), CLARK-SCHWEBEL CORPORATION, a
Delaware corporation ("CLARK-SCHWEBEL"), HEXCEL POTTSVILLE CORPORATION
("POTTSVILLE"), a Delaware corporation, CLARK-SCHWEBEL HOLDING CORPORATION, a
Delaware corporation ("HOLDING"), and CS TECH-FAB HOLDINGS, INC., a Delaware
corporation ("Tech-Fab" and together with Hexcel, Clark-Schwebel, Pottsville and
Holding, collectively the "OBLIGORS" and each individually, an "OBLIGOR"), and
FLEET CAPITAL CORPORATION, as administrative agent (the "ADMINISTRATIVE AGENT")
for itself and other lending institutions which are or may become parties to
that certain Credit and Guaranty Agreement dated as of March 19, 2003 (as
amended and in effect from time to time, the "CREDIT AGREEMENT"), among the
Hexcel, the Foreign Borrowers (as defined therein), the Guarantors named
therein, the lenders from time to time a party thereto, the Administrative
Agent, Fleet Capital Corporation, as fronting bank, Fleet National Bank, London
U.K. Branch, as fronting bank and issuing bank, Fleet National Bank, as issuing
bank, and Fleet Securities, Inc., as lead arranger.

     WHEREAS, it is a condition precedent to the Lenders (as defined in the
Credit Agreement) making any loans or otherwise extending credit to Hexcel and
the Foreign Borrowers under the Credit Agreement that the Obligors execute and
deliver to the Administrative Agent, for the benefit of the Lenders and the
Administrative Agent, a security agreement in substantially the form hereof; and

     WHEREAS, the Obligors wish to grant a security interest in favor of the
Administrative Agent, for the benefit of the Lenders and the Administrative
Agent, as herein provided;

     NOW, THEREFORE, in consideration of the promises contained herein and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

     1.  DEFINITIONS. All capitalized terms used herein without definitions
shall have the respective meanings provided therefor in the Credit Agreement.
The term "STATE", as used herein, means the State of New York. All terms defined
in the Uniform Commercial Code of the State and used herein shall have the same
definitions herein as specified therein. However, if a term is defined in
Article 9 of the Uniform Commercial Code of the State differently than in
another Article of the Uniform Commercial Code of the State, the term has the
meaning specified in Article 9. The term "STOCK" means the shares of stock
described in ANNEX A attached hereto and required to be pledged hereunder and
any additional shares of stock at the time required to be pledged with the
Administrative Agent hereunder, and the term "STOCK COLLATERAL" means the
property at any time required to be pledged to the Administrative Agent
hereunder (whether described herein or not) and all income therefrom, increases
therein and proceeds thereof.

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     2.  GRANT OF SECURITY INTEREST. Each Obligor hereby grants to the
Administrative Agent, for the benefit of the Lenders and the Administrative
Agent, to secure the payment and performance in full of all of the Obligations,
a security interest in and pledges and assigns to the Administrative Agent, for
the benefit of the Lenders and the Administrative Agent, all the following
properties, assets and rights of such Obligor, wherever located, whether now
owned or hereafter acquired or arising, and all proceeds and products thereof
(all of the same being hereinafter called the "COLLATERAL"):

     i.   all "Accounts" as defined in Section 9-102 of the Uniform Commercial
          Code of the State, but only to the extent that such accounts are:

                    (a) rights to payment for goods sold or services rendered
               (whether or not such goods or services conform to the contract),
               or

                    (b) rights to payment for goods to be sold or services to be
               rendered, but only, at any time, to the extent inventory (whether
               consisting of raw materials, work-in-process or finished goods)
               is then on hand that may, upon completion of manufacture, be
               delivered for such sale;

     ii.  all rights under contracts of sale relating to or affecting the
          creation or collection of any Accounts described in clause (i) above;

     iii. all rights under any existing or future policy of insurance relating
          to any Accounts described in clause (i) above;

     iv.  all letters of credit, guarantees, supporting obligations, and other
          obligations securing or supporting any Accounts described in clause
          (i) above;

     v.   all "Inventory" as defined in Section 9-102 of the Uniform Commercial
          Code of the State;

     vi.  all rights under contracts of sale relating to or affecting the
          completion or sale of any such Inventory;

     vii. all rights under any existing or future policy of property loss or
          casualty insurance relating to any such Inventory;

     viii. all cash and Cash Equivalents (as defined in the Credit Agreement);

     ix.  all investment property, to the extent and only to the extent
          consisting of Cash Equivalents and other proceeds of Collateral;

     x.   all deposit accounts (including, without limitation, bank accounts),
          but

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          excluding the Asset Sale Proceeds Account and deposits therein;

     xi.  (i) all intercompany loans to, and all other claims against, any
          Foreign Subsidiary, including, without limitation, all indebtedness
          for borrowed money and other monetary obligations owed by a Foreign
          Subsidiary to an Obligor, and (ii) all instruments evidencing the
          same, if any; in each case, whether or not evidenced by any instrument
          or promissory note and whether such intercompany loan to, or claim
          against, any Foreign Subsidiary is classified as an Account, General
          Intangible, Instrument or Payment Intangible; and

     xii. sixty-five percent (65%) of the shares of capital stock of every class
          of any first tier Material Foreign Subsidiary, as more fully described
          on ANNEX A hereto (as the same may be supplemented from time to time)
          and, to the extent that any such first tier Material Foreign
          Subsidiary is treated as a disregarded entity for United States
          federal income tax purposes, in addition, sixty-five percent (65%) of
          the shares of capital stock of any Material Foreign Subsidiary
          directly owned by such disregarded first tier Material Foreign
          Subsidiary.

     3.  AUTHORIZATION TO FILE FINANCING STATEMENTS; ADDITIONAL STOCK.

          3.1. AUTHORIZATION TO FILE FINANCING STATEMENTS.

          Each Obligor hereby irrevocably authorizes the Administrative Agent at
     any time and from time to time to file in any filing office in any Uniform
     Commercial Code jurisdiction any initial financing statements and
     amendments thereto that provide any other information required by part 5 of
     Article 9 of the Uniform Commercial Code of the State or such other
     jurisdiction for the sufficiency or filing office acceptance of any
     financing statement or amendment, including whether such Obligor is an
     organization, the type of organization and any organizational
     identification number issued to such Obligor. Each Obligor agrees to
     furnish any such information to the Administrative Agent promptly upon
     request. Such financing statements may describe the collateral in the same
     manner as described in this Security Agreement or may contain an indication
     or description of collateral that describes such property in any other
     manner as the Administrative Agent may determine, in its sole discretion,
     is necessary, advisable or prudent to ensure the perfection of the security
     interest in the collateral granted to the Administrative Agent in
     connection herewith. Each Obligor ratifies and confirms the authorization
     of the Administrative Agent to have filed in any Uniform Commercial Code
     jurisdiction any like initial financing statements or amendments thereto if
     filed prior to the date hereof.

          3.2. STOCK CERTIFICATES; AUTHORIZATION TO UPDATE ANNEX A.

          The certificates for the shares of any first tier Material Foreign
     Subsidiary, accompanied by stock powers or other appropriate instruments of
     assignment

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     thereof duly executed in blank by the Company, have been delivered to the
     Administrative Agent. Each of the Obligors agrees that the Administrative
     Agent may from time to time attach as ANNEX A hereto an updated list of the
     shares of capital stock or securities at the time required to be pledged
     with the Administrative Agent hereunder.

     4.  OTHER ACTIONS. Further to insure the attachment, perfection and
priority of, and the ability of the Administrative Agent to enforce, the
Administrative Agent's security interest in the Collateral, each Obligor agrees,
in each case at such Obligor's expense, to take the following actions with
respect to the following Collateral and without limitation on such Obligor's
other obligations contained in this Agreement:

          4.1  PROMISSORY NOTES AND TANGIBLE CHATTEL PAPER. If any Obligor
     shall, now or at any time hereafter, hold or acquire any promissory notes
     constituting Collateral, such Obligor shall forthwith endorse, assign and
     deliver the same to the Administrative Agent, accompanied by such
     instruments of transfer or assignment duly executed in blank as the
     Administrative Agent may from time to time specify.

          4.2  DEPOSIT ACCOUNTS. Each Obligor shall comply with Section 7.17.1.1
     of the Credit Agreement with respect to each deposit account that any
     Obligor, now or at any time hereafter, opens or maintains, to the extent
     provided therein.

          4.3  INVESTMENT PROPERTY. Subject to Section 7.17.1.1 of the Credit
     Agreement, if any Obligor shall, now or at any time hereafter, hold or
     acquire any Collateral consisting of investment property, such Obligor
     shall promptly endorse, assign and deliver the same to the Administrative
     Agent, accompanied by such instruments of transfer or assignment duly
     executed in blank as the Administrative Agent may from time to time
     specify. Subject to Section 7.17.1.1 of the Credit Agreement, if any such
     Collateral consisting of investment property consisting of securities now
     or hereafter acquired by such Obligor are uncertificated and are issued to
     any Obligor or its nominee directly by the issuer thereof, such Obligor
     shall promptly notify the Administrative Agent thereof and, at the
     Administrative Agent's request and option, pursuant to an agreement in form
     and substance reasonably satisfactory to the Administrative Agent, either
     (a) cause the issuer to agree to comply without further consent of such
     Obligor or such nominee, at any time with instructions from the
     Administrative Agent as to such securities, or (b) arrange for the
     Administrative Agent to become the registered owner of the securities.
     Subject to Section 7.17.1.1 of the Credit Agreement, if any Collateral
     consisting of investment property is held by such Obligor or its nominee
     through a securities intermediary or commodity intermediary, such Obligor
     shall promptly notify the Administrative Agent thereof and, at the
     Administrative Agent's request and option, pursuant to an agreement in form
     and substance reasonably satisfactory to the Administrative Agent, either
     (i) cause such securities intermediary or (as the case may be) commodity
     intermediary to agree to comply, in each case without further consent of
     such Obligor or such nominee, at any time with entitlement orders

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     from the Administrative Agent to such securities intermediary as to such
     securities or other investment property, or (as the case may be) to apply
     any value distributed on account of any commodity contract as directed by
     the Administrative Agent to such commodity intermediary, or (ii) in the
     case of financial assets or other investment property held through a
     securities intermediary, arrange for the Administrative Agent to become the
     entitlement holder with respect to such investment property, with such
     Obligor being permitted, prior to the occurrence and continuance of an
     Event of Default, to exercise rights to withdraw or otherwise deal with
     such investment property. The provisions of this paragraph shall not apply
     to any financial assets credited to a securities account for which the
     Administrative Agent is the securities intermediary.

          4.4  LETTER-OF-CREDIT RIGHTS. If any Obligor is, now or at any time
     hereafter, a beneficiary under a letter of credit constituting Collateral,
     such Obligor shall promptly (and, in any event prior to the end of the next
     succeeding calendar quarter) notify the Administrative Agent thereof and,
     at the request and option of the Administrative Agent, such Obligor shall,
     pursuant to an agreement in form and substance satisfactory to the
     Administrative Agent, either (a) arrange for the issuer and any confirmer
     of such letter of credit to consent to an assignment to the Administrative
     Agent of the proceeds of the letter of credit or (b) arrange for the
     Administrative Agent to become the transferee beneficiary of the letter of
     credit, with the Administrative Agent agreeing, in each case, that the
     proceeds of the letter of credit are to be applied as provided in the
     Credit Agreement.

          4.5  COMMERCIAL TORT CLAIMS. If any Obligor shall, now or at any time
     hereafter, hold or acquire a commercial tort claim constituting Collateral,
     such Obligor shall immediately notify the Administrative Agent in writing
     signed by such Obligor of the particulars thereof and grant to the
     Administrative Agent, for the benefit of the Lenders and the Administrative
     Agent, in such writing a security interest therein and in the proceeds
     thereof, all upon the terms of this Agreement, with such writing to be in
     form and substance satisfactory to the Administrative Agent.

          4.6  ADDITIONAL STOCK. In case that any Obligor shall acquire any
     additional shares of the capital stock of any first tier Material Foreign
     Subsidiary or corporation which is the successor of any first tier Material
     Foreign Subsidiary, or any securities exchangeable for or convertible into
     shares of such capital stock of any class of any first tier Material
     Foreign Subsidiary, whether by purchase, stock dividend, stock split or
     otherwise, then such shares or other securities shall be subject to the
     pledge, assignment and security interest granted to the Administrative
     Agent, for the benefit of the Lenders and the Administrative Agent, under
     this Agreement and such Obligor shall deliver to the Administrative Agent
     forthwith any certificates therefor, accompanied by

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     stock powers or other appropriate instruments of assignment duly executed
     by such Obligor in blank.

          4.7  OTHER ACTIONS AS TO ANY AND ALL COLLATERAL. Each Obligor further
     agrees, upon the request of the Administrative Agent and at the
     Administrative Agent's option, to take any and all other actions as the
     Administrative Agent may reasonably determine to be necessary for the
     attachment and perfection of, and the ability of the Administrative Agent
     to enforce, the Administrative Agent's security interest in any and all of
     the Collateral, including, without limitation, executing, delivering and,
     where appropriate, filing financing statements and amendments relating
     thereto under the Uniform Commercial Code, to the extent, if any, that such
     Obligor's signature thereon is required therefor.

     5.  REPRESENTATIONS AND WARRANTIES CONCERNING OBLIGOR' LEGAL STATUS. Each
Obligor has previously delivered to the Administrative Agent a certificate
signed by such Obligor and entitled "Perfection Certificate" (the "PERFECTION
CERTIFICATE"). Each Obligor represents and warrants to the Lenders and the
Administrative Agent as of the date hereof, as follows: (a) such Obligor's exact
legal name is that indicated on the Perfection Certificate and on the signature
page hereof, (b) such Obligor is an organization of the type, and is organized
in the jurisdiction, set forth in the Perfection Certificate, (c) the Perfection
Certificate accurately sets forth such Obligor's organizational identification
number or accurately states that such Obligor has none, (d) the Perfection
Certificate accurately sets forth such Obligor's place of business or, if more
than one, its chief executive office, as well as such Obligor's mailing address,
if different, (e) all other information set forth on the Perfection Certificate
pertaining to such Obligor is accurate and complete in all material respects,
(f) except as notified to the Administrative Agent in writing, there has been no
material change in any of such information since the date on which the
Perfection Certificate was signed by such Obligor, (g) each Obligor has full
power, authority and legal right to execute, deliver and perform its obligations
under this Agreement and to pledge and grant a security interest in all of the
Collateral pursuant to this Agreement, and the execution, delivery and
performance hereof and the pledge of and granting of a security interest in the
Collateral hereunder have (i) been duly authorized by all necessary corporate or
other action and (ii) do not contravene (A) any law, rule or regulation, which
individually or in the aggregate, would have a Material Adverse Effect, or any
provision of such Obligor's Governing Documents or (B) any judgment, decree or
order of any tribunal, which individually or in the aggregate, would have a
Material Adverse Effect, or (C) any agreement or instrument to which such
Obligor is a party or by which it or any of its property is bound or affected
and (h) the information set forth in ANNEX A hereto relating to the Stock is
true, correct and complete in all material respects on the date hereof.

     6. COVENANTS CONCERNING OBLIGOR' LEGAL STATUS. Each Obligor covenants with
the Lenders and the Administrative Agent as follows: (a) without providing at
least fifteen (15) days prior written notice to the Administrative Agent, such
Obligor will not

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change its name, its place of business or, if more than one, chief executive
office, or organizational identification number if it has one, (b) if such
Obligor does not have an organizational identification number and later obtains
one, such Obligor will forthwith notify the Administrative Agent of such
organizational identification number, and (c) such Obligor will not change its
type of organization, jurisdiction of organization or other legal structure.

     7. REPRESENTATIONS AND WARRANTIES CONCERNING COLLATERAL, ETC. Each Obligor
further represents and warrants to the Lenders and the Administrative Agent as
follows: (a) such Obligor is the owner of or has rights in the Collateral, free
from any right or claim of any person or any adverse lien, except for the
security interest created by this Agreement and other Liens permitted by the
Credit Agreement, and (b) none of the Collateral constitutes, or is the proceeds
of, "farm products" as defined in Section 9-102(a)(34) of the Uniform Commercial
Code of the State.

     8. COVENANTS CONCERNING COLLATERAL, ETC. Each Obligor further covenants
with the Lenders and the Administrative Agent as follows: (a) except for the
security interest herein granted and Liens permitted by the Credit Agreement,
such Obligor shall (except for sales, transfers or other dispositions permitted
by the Credit Agreement) be the owner of the Collateral free from any right or
claim of any other person or any lien, and such Obligor shall defend the same
against all material claims and demands of all persons at any time claiming the
same or any interests therein adverse to the Administrative Agent or any of the
Lenders and such Obligor will have the like title to and right to pledge and
grant a security interest in the Stock Collateral hereafter pledged or in which
a security interest is granted to the Administrative Agent hereunder and will
likewise defend the rights, pledge and security interest thereof and therein of
the Lenders and the Administrative Agent, (b) such Obligor shall not pledge,
mortgage or create, or suffer to exist any right of any person in or claim by
any person to the Collateral, or any lien in the Collateral in favor of any
person, other than the Administrative Agent except for Liens permitted by the
Credit Agreement, (c) such Obligor will permit the Administrative Agent, or its
designee, to inspect the Collateral, and such Obligor will pay all taxes,
assessments, governmental charges and levies upon the Collateral or incurred in
connection with the use or operation of the Collateral, in each case to the
extent and as further provided in the Credit Agreement.

     9.   INSURANCE.

          9.1. MAINTENANCE OF INSURANCE. Each Obligor will maintain with
     financially sound and reputable insurers insurance with respect to its
     properties and business against such casualties and contingencies as shall
     be in accordance with general practices of businesses of similar size and
     financial strength engaged in similar activities in similar geographic
     areas. In addition, all such insurance, to the extent it relates to the
     Collateral, shall be payable to the Administrative Agent as loss payee
     under a "standard" or "New York" loss payee clause for the benefit of the
     Lenders and the Administrative Agent.

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          9.2. INSURANCE PROCEEDS. Upon the occurrence and during the
     continuance of an Event of Default, the proceeds of any casualty insurance
     in respect of any casualty loss of any of the Collateral shall, subject to
     the rights, if any, of other parties with an interest having priority in
     the property covered thereby, be held by the Administrative Agent as cash
     collateral for the Obligations (it being understood and agreed that if an
     Event of Default is not then continuing, the Obligors shall be entitled to
     receive and use the proceeds of such insurance and, further, in the event
     the Administrative Agent receives or is holding any such proceeds at a time
     when an Event of Default is not continuing, it shall hold such proceeds in
     trust for the Obligors and shall promptly remit such proceeds to the
     Company or the relevant Obligor).

          9.3. CONTINUATION OF INSURANCE. All policies of insurance shall
     provide for at least thirty (30) days prior written cancellation notice to
     the Administrative Agent. In the event of failure by any Obligor to provide
     and maintain insurance as herein provided, the Administrative Agent may, at
     its option, and upon prior written notice to Hexcel provide such insurance
     and charge the amount thereof to such Obligor. Each Obligor shall furnish
     the Administrative Agent with certificates of insurance evidencing
     compliance with the foregoing Section 9.1.

     10.  COLLATERAL PROTECTION EXPENSES; PRESERVATION OF COLLATERAL.

          10.1. EXPENSES INCURRED BY ADMINISTRATIVE AGENT. Upon the occurrence
     and during the continuance of an Event of Default in the Administrative
     Agent's reasonable discretion, if any Obligor fails to do so, the
     Administrative Agent may discharge taxes and other encumbrances at any time
     levied or placed on any of the Collateral, maintain any of the Collateral
     (subject to license), and pay any necessary filing fees or insurance
     premiums. Each Obligor agrees to reimburse the Administrative Agent on
     demand for all reasonable expenditures so made. The Administrative Agent
     shall have no obligation to any Obligor to make any such expenditures, nor
     shall the making thereof be construed as a waiver or cure of any Default or
     Event of Default.

          10.2. ADMINISTRATIVE AGENT'S OBLIGATIONS AND DUTIES. Neither the
     Administrative Agent nor any Lender shall have any obligation or liability
     under any contract or agreement by reason of or arising out of this
     Agreement or the receipt by the Administrative Agent or any Lender of any
     payment relating to any of the Collateral, nor shall the Administrative
     Agent or any Lender be obligated in any manner to perform any of the
     obligations of such Obligor under or pursuant to any such contract or
     agreement, to make inquiry as to the nature or sufficiency of any payment
     received by the Administrative Agent or any Lender in respect of the
     Collateral or as to the sufficiency of any performance by any party under
     any such contract or agreement, to present or file any claim, to take any
     action to enforce any performance or to collect the payment of any amounts
     which may have been assigned to the Administrative Agent or to which the
     Administrative Agent or any Lender may be entitled at any time or times.
     The Administrative Agent's sole duty with respect to the custody, safe
     keeping

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     and physical preservation of the Collateral in its possession, under
     Section 9-207 of the Uniform Commercial Code of the State or otherwise,
     shall be to deal with such Collateral in the same manner as the
     Administrative Agent deals with similar property for its own account;
     PROVIDED, HOWEVER, the Administrative Agent shall comply with all laws and
     perform all acts as may be required by any governmental authority,
     including, without limitation, protecting classified and export controlled
     assets and information (including information, contracts and programs) in
     the manner requested by such governmental authority.

     11. SECURITIES AND DEPOSITS; DIVIDENDS, ETC.

          11.1. SECURITIES AND DEPOSITS.

          The Administrative Agent may at any time following and during the
     continuance of a Default and Event of Default, at its option, transfer to
     itself or any nominee any securities constituting Collateral, receive any
     income thereon and hold such income as additional Collateral or apply it to
     the Obligations. Whether or not any Obligations are due, the Administrative
     Agent may following and during the continuance of a Default and Event of
     Default that has occurred and is continuing, demand, sue for, collect, or
     make any settlement or compromise which it deems desirable with respect to
     the Collateral.

          11.2.  DIVIDENDS, VOTING, ETC.

          So long as no Event of Default shall have occurred and be continuing,
     each Obligor shall be entitled to receive all cash dividends paid in
     respect of the Stock, to vote the Stock and to give consents, waivers and
     ratifications in respect of the Stock; PROVIDED, HOWEVER, that no vote
     shall be cast or consent, waiver or ratification given by such Obligor if
     the effect thereof would materially impair any of the Stock Collateral or
     be inconsistent with or result in any violation of any of the provisions of
     the Credit Agreement or any of the other Loan Documents. All such rights of
     any Obligor to receive cash dividends with respect to the Stock shall cease
     in case an Event of Default shall have occurred and be continuing. All such
     rights of such Obligor to vote and give consents, waivers and ratifications
     with respect to the Stock shall, at the Administrative Agent's option, as
     evidenced by the Administrative Agent's notifying such Obligor of such
     election, cease in case an Event of Default shall have occurred and be
     continuing.

     12. NOTIFICATION TO ACCOUNT DEBTORS AND OTHER PERSONS OBLIGATED ON
COLLATERAL. If an Event of Default shall have occurred and be continuing, each
Obligor shall, at the request and option of the Administrative Agent, notify
account debtors and other persons obligated on any of the Collateral of the
security interest of the Administrative Agent in any account or other Collateral
and that payment thereof is to be made directly to the Administrative Agent or
to any financial institution designated by the Administrative Agent as the
Administrative Agent's agent therefor, and the Administrative Agent may itself,
if an Event of Default shall have occurred and be

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continuing without notice to or demand upon such Obligor, so notify account
debtors and other persons obligated on Collateral. After the making of such a
request or the giving of any such notification in accordance with the terms
hereof, such Obligor shall hold any proceeds of collection of accounts and other
Collateral received by such Obligor as trustee for the Administrative Agent, for
the benefit of the Lenders and the Administrative Agent, without commingling the
same with other funds of such Obligor and shall turn the same over to the
Administrative Agent in the identical form received, together with any necessary
endorsements or assignments. The Administrative Agent shall apply the proceeds
of collection of accounts and other Collateral received by the Administrative
Agent to the Obligations, such proceeds to be immediately credited after final
payment in cash or other immediately available funds of the items giving rise to
them.

     13. POWER OF ATTORNEY.

          13.1. APPOINTMENT AND POWERS OF ADMINISTRATIVE AGENT. Each Obligor
     hereby irrevocably constitutes and appoints the Administrative Agent and
     any officer or agent thereof, with full power of substitution, as its true
     and lawful attorneys-in-fact with full irrevocable power and authority in
     the place and stead of such Obligor or in the Administrative Agent's own
     name, for the purpose of carrying out the terms of this Agreement, to, upon
     the occurrence and during the continuance of an Event of Default, take any
     and all appropriate action and to execute any and all documents and
     instruments that may be necessary to accomplish the purposes of this
     Agreement and, without limiting the generality of the foregoing, hereby
     gives said attorneys the power and right, on behalf of such Obligor,
     without notice to or assent by such Obligor, to do the following:

                (a) upon the occurrence and during the continuance of a Default
          or an Event of Default, generally to sell, transfer, pledge, make any
          agreement with respect to or otherwise dispose of or deal with any of
          the Collateral in such manner as is consistent with the Uniform
          Commercial Code of the State and as fully and completely as though the
          Administrative Agent were the absolute owner thereof for all purposes,
          and to do, at such Obligor's expense, at any time, or from time to
          time, all acts and things which the Administrative Agent deems
          reasonably necessary to protect, preserve or realize upon the
          Collateral and the Administrative Agent's security interest therein,
          in order to effect the intent of this Agreement, all no less fully and
          effectively as such Obligor might do, including, without limitation,
          the execution, delivery and recording, in connection with any sale or
          other disposition of any Collateral, of the endorsements, assignments
          or other instruments of conveyance or transfer with respect to such
          Collateral; and

                (b) notwithstanding the foregoing, prior to the occurrence and
          continuance of an Event of Default, to file such financing statements
          with respect hereto, with or without such Obligor's signature, or a
          photocopy of this Agreement in substitution for a financing statement,
          as the

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          Administrative Agent may reasonably deem appropriate and to execute in
          such Obligor's name such financing statements and amendments thereto
          and continuation statements which may require such Obligor's
          signature.

          13.2. RATIFICATION BY OBLIGOR. To the extent permitted by law, each
     Obligor hereby ratifies all that said attorneys shall lawfully do or cause
     to be done by virtue hereof. This power of attorney is a power coupled with
     an interest and is irrevocable.

          13.3. NO DUTY ON ADMINISTRATIVE AGENT. The powers conferred on the
     Administrative Agent hereunder are solely to protect the interests of the
     Administrative Agent and the Lenders in the Collateral and shall not impose
     any duty upon the Administrative Agent to exercise any such powers. The
     Administrative Agent shall be accountable only for the amounts that it
     actually receives as a result of the exercise of such powers, and neither
     it nor any of its officers, directors, employees or agents shall be
     responsible to any Obligor for any act or failure to act, except for the
     Administrative Agent's or any of its officers', employees' or agents' own
     gross negligence or willful misconduct.

     14.  RIGHTS AND REMEDIES. If an Event of Default shall have occurred and be
continuing, the Administrative Agent, without any other notice to or demand upon
any Obligor, shall have in any jurisdiction in which enforcement hereof is
sought, in addition to all other rights and remedies, the rights and remedies of
a secured party under the Uniform Commercial Code of the State and any
additional rights and remedies as may be provided to a secured party in any
jurisdiction in which Collateral is located, including, without limitation, the
right to take possession of the Collateral, and for that purpose the
Administrative Agent may, so far as such Obligor can give authority therefor,
enter upon any premises on which the Collateral may be situated and remove the
same therefrom. If an Event of Default shall have occurred and be continuing,
the Administrative Agent may in its reasonable discretion require such Obligor
to assemble all or any part of the Collateral at such location or locations
within the jurisdiction(s) of such Obligor's principal office(s) or at such
other locations as the Administrative Agent may reasonably designate. If an
Event of Default shall have occurred and by continuing, each Obligor will allow
the Administrative Agent and its officers, employees and agents reasonable and
non-exclusive access to and use of all real property, equipment and fixtures
owned or leased by such Obligor, as necessary or reasonably appropriate in the
reasonable opinion of the Administrative Agent, to manufacture, produce,
complete, remove and/or sell, in any lawful manner, any Collateral. If an Event
of Default shall have occurred and be continuing, each Obligor further agrees at
the request and direction of the Administrative Agent, to manufacture, produce,
complete, remove and/or sell, and/or to cooperate with the Administrative
Agent's manufacture, production, completion, removal and/or sale of, any
Collateral. Unless the Collateral is perishable or threatens to decline speedily
in value or is of a type customarily sold on a recognized market, the
Administrative Agent shall give to such Obligor at least ten (10) Business Days
prior written notice of the time and place of any public sale of Collateral

<Page>

                                      -12-

or of the time after which any private sale or any other intended disposition is
to be made. Each Obligor hereby acknowledges that ten (10) Business Days prior
written notice of such sale or sales shall be reasonable notice. In addition,
each Obligor waives any and all rights that it may have to a judicial hearing in
advance of the enforcement of any of the Administrative Agent's rights and
remedies hereunder, including, without limitation, its right following an Event
of Default to take immediate possession of the Collateral and to exercise its
rights and remedies with respect thereto.

     15.  STANDARDS FOR EXERCISING RIGHTS AND REMEDIES. To the extent that
applicable law imposes duties on the Administrative Agent to exercise remedies
in a commercially reasonable manner, each Obligor acknowledges and agrees that
it is not commercially unreasonable for the Administrative Agent (a) to fail to
incur expenses reasonably deemed significant by the Administrative Agent to
prepare Collateral for disposition or otherwise to fail to complete raw material
or work in process into finished goods or other finished products for
disposition, (b) to fail to obtain third party consents for access to Collateral
to be disposed of, or to obtain or, if not required by other law, to fail to
obtain governmental or third party consents for the collection or disposition of
Collateral to be collected or disposed of, (c) to fail to exercise collection
remedies against account debtors or other persons obligated on Collateral or to
fail to remove Liens on or any adverse claims against Collateral, (d) to
exercise collection remedies against account debtors and other persons obligated
on Collateral directly or through the use of collection agencies and other
collection specialists, (e) to advertise dispositions of Collateral through
publications or media of general circulation, whether or not the Collateral is
of a specialized nature, (f) to contact other persons, whether or not in the
same business as such Obligor, for expressions of interest in acquiring all or
any portion of the Collateral, (g) to hire one or more professional auctioneers
to assist in the disposition of Collateral, whether or not the collateral is of
a specialized nature, (h) to dispose of Collateral by utilizing internet sites
that provide for the auction of assets of the types included in the Collateral
or that have the reasonable capability of doing so, or that match buyers and
sellers of assets, (i) to dispose of assets in wholesale rather than retail
markets, (j) to disclaim disposition warranties, (k) to purchase insurance or
credit enhancements to insure the Administrative Agent against risks of loss,
collection or disposition of Collateral or to provide to the Administrative
Agent a guaranteed return from the collection or disposition of Collateral, or
(l) to the extent reasonably deemed appropriate by the Administrative Agent, to
obtain the services of brokers, investment bankers, consultants and other
professionals to assist the Administrative Agent in the collection or
disposition of any of the Collateral. Each Obligor acknowledges that the purpose
of this Section 16 is to provide non-exhaustive indications of what actions or
omissions by the Administrative Agent would fulfill the Administrative Agent's
duties under the Uniform Commercial Code of the State or any other relevant
jurisdiction in the Administrative Agent's exercise of remedies against the
Collateral and that other actions or omissions by the Administrative Agent shall
not be deemed to fail to fulfill such duties solely on account of not being
indicated in this Section 15. Without limitation upon the foregoing, nothing
contained in this Section 15 shall be construed to grant any rights to the such
Obligor or to impose any duties on the Administrative Agent that would not have

<Page>

                                      -13-

been granted or imposed by this Agreement or by applicable law in the absence of
this Section 15.

     16.  NO WAIVER BY ADMINISTRATIVE AGENT, ETC. The Administrative Agent shall
not be deemed to have waived any of its rights and remedies in respect of the
Obligations or the Collateral unless such waiver shall be in writing and signed
by the Administrative Agent and, to the extent required by the Credit Agreement,
with the consent of the Required Lenders. No delay or omission on the part of
the Administrative Agent in exercising any right or remedy shall operate as a
waiver of such right or remedy or any other right or remedy. A waiver on any one
occasion shall not be construed as a bar to or waiver of any right or remedy on
any future occasion. All rights and remedies of the Administrative Agent with
respect to the Obligations or the Collateral, whether evidenced hereby or by any
other instrument or papers, shall be cumulative and may be exercised singularly,
alternatively, successively or concurrently at such time or at such times as the
Administrative Agent deems expedient.

     17.  SURETYSHIP WAIVERS BY OBLIGORS.

     Each Obligor waives demand, notice, protest, notice of acceptance of this
Agreement, notice of loans made, credit extended, Collateral received or
delivered or other action taken in reliance hereon and all other demands and
notices of any description. With respect to both the Obligations and the
Collateral, each Obligor assents to any extension or postponement of the time of
payment or any other indulgence, to any substitution, exchange or release of or
failure to perfect any security interest in any Collateral, to the addition or
release of any party or person primarily or secondarily liable, to the
acceptance of partial payment thereon and the settlement, compromising or
adjusting of any thereof, all in such manner and at such time or times as the
Administrative Agent may deem reasonably advisable. The Administrative Agent
shall have no duty as to the collection or protection of the Collateral or any
income therefrom, the preservation of rights against prior parties, or the
preservation of any rights pertaining thereto beyond the safe custody thereof as
set forth in Section 10.2. Each Obligor further waives any and all other
suretyship defenses.

     18.  MARSHALLING. Neither the Administrative Agent nor any Lender shall be
required to marshal any present or future collateral security (including but not
limited to the Collateral) for, or other assurances of payment of, the
Obligations or any of them or to resort to such collateral security or other
assurances of payment in any particular order, and all of the rights and
remedies of the Administrative Agent or any Lender hereunder and of the
Administrative Agent or any Lender in respect of such collateral security and
other assurances of payment shall be cumulative and in addition to all other
rights and remedies, however existing or arising. To the extent that it lawfully
may, each Obligor hereby agrees that it will not invoke any law relating to the
marshalling of collateral which might cause delay in or impede the enforcement
of the Administrative Agent's rights and remedies under this Agreement or under
any other instrument creating or evidencing any of the Obligations or under
which any of the Obligations is outstanding or by which any of the Obligations
is secured or payment

<Page>

                                      -14-

thereof is otherwise assured, and, to the extent that it lawfully may, each
Obligor hereby irrevocably waives the benefits of all such laws.

     19.  PROCEEDS OF DISPOSITIONS; EXPENSES. Each Obligor shall pay to the
Administrative Agent on demand any and all reasonable expenses, including
reasonable and documented attorneys' fees and disbursements, incurred or paid by
the Administrative Agent in protecting, preserving or enforcing the
Administrative Agent's rights and remedies under or in respect of any of the
Obligations or any of the Collateral. After deducting all of said expenses, the
residue of any proceeds of collection or sale or other disposition of Collateral
shall, to the extent actually received in cash, be applied to the payment of the
Obligations in such order or preference as the Administrative Agent may
determine in accordance with the Credit Agreement, proper allowance and
provision being made for any Obligations not then due. Upon the final payment
and satisfaction in full of all of the Obligations and after making any payments
required by Sections 9-608(a)(1)(C) or 9-615(a)(3) of the Uniform Commercial
Code of the State, any excess shall be returned to such Obligor. In the absence
of final payment and satisfaction in full of all of the Obligations, such
Obligor shall remain liable for any deficiency.

     20.  OVERDUE AMOUNTS. Until paid, all amounts due and payable by each
Obligor hereunder shall be a debt secured by the Collateral and shall bear,
whether before or after judgment, interest at the rate of interest for principal
then in effect under the Credit Agreement.

     21.  GOVERNING LAW; CONSENT TO JURISDICTION. THIS AGREEMENT IS INTENDED TO
TAKE EFFECT AS A SEALED INSTRUMENT AND SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. Each Obligor agrees that any
action or claim arising out of any dispute in connection with this Agreement,
any rights or obligations hereunder or the performance or enforcement of such
rights or obligations may be brought in the courts of the State or any federal
court sitting therein and consents to the non-exclusive jurisdiction of such
court and to service of process in any such suit being made upon such Obligor by
mail at the address specified in Section 15.6 of the Credit Agreement. Each
Obligor hereby waives any objection that it may now or hereafter have to the
venue of any such suit or any such court or that such suit is brought in an
inconvenient court.

     22. WAIVER OF JURY TRIAL. THE ADMINISTRATIVE AGENT AND EACH OBLIGOR WAIVES
ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY
DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER
OR THE PERFORMANCE OR ENFORCEMENT OF ANY SUCH RIGHTS OR OBLIGATIONS. Except as
prohibited by law, the Administrative Agent and each Obligor waives any right
which it may have to claim or recover in any litigation referred to in the
preceding sentence any special, exemplary, punitive or consequential damages or
any damages other than, or in addition to, actual damages. Each Obligor (a)
certifies that neither the Administrative Agent or any Lender nor any
representative, agent or attorney of the Administrative Agent or any Lender has
represented, expressly or otherwise, that the

<Page>

                                      -15-

Administrative Agent or any Lender would not, in the event of litigation, seek
to enforce the foregoing waivers or other waivers contained in this Agreement
and (b) acknowledges that, in entering into the Credit Agreement, the
Administrative Agent and the Lenders are relying upon, among other things, the
waivers and certifications contained in this Section 22.

     23.  RELATION TO CHARGE OVER SHARES AND FRENCH PLEDGE. The provisions of
this Agreement supplement the provisions of the Charge Over Shares and the
French Pledge.

     24.  MISCELLANEOUS. The headings of each section of this Agreement are for
convenience only and shall not define or limit the provisions thereof. This
Agreement and all rights and obligations hereunder shall be binding upon each
Obligor and its successors and assigns, and shall inure to the benefit of the
Administrative Agent, the Lenders and their respective successors and assigns
permitted pursuant to the Credit Agreement. If any term of this Agreement shall
be held to be invalid, illegal or unenforceable, the validity of all other terms
hereof shall in no way be affected thereby, and this Agreement shall be
construed and be enforceable as if such invalid, illegal or unenforceable term
had not been included herein. Each Obligor acknowledges receipt of a copy of
this Agreement.

     25   TERMINATION. (a) Notwithstanding anything to the contrary in this
Security Agreement or any other Loan Document: (i) the security interests
hereunder shall automatically cease, terminate and be void, all rights to the
Collateral shall automatically revert to the relevant Obligor, and the
obligations of the Obligors hereunder shall automatically be discharged and
released, upon repayment in full, in cash, of all the Obligations and the
termination of all lending commitments under the Credit Agreement, in each case
without any further action by the Administrative Agent, the Fronting Bank, the
Issuing Bank, any Lender or any other Person, and (ii) the security interest
hereunder shall automatically cease, terminate and be void with respect to any
Collateral that is sold, transferred or otherwise disposed of in accordance with
the terms of the Credit Agreement, and all rights with respect to such
Collateral shall automatically revert to the applicable Obligor, in each case
without any further action by the Administrative Agent, the Fronting Bank, the
Issuing Bank, any Lender or any other Person; PROVIDED that the security
interest in the proceeds and products of such Collateral shall continue.

     (b)   Upon any termination of this Security Agreement and/or the security
interest hereunder, the Administrative Agent will, at the expense of the
applicable Obligor, execute and deliver to such Obligor such documents as such
Obligor shall reasonably request to evidence the termination of this Security
Agreement and/or such security interest hereunder, and the release and
reassignment of any such Collateral, as the case may be.

<Page>

     IN WITNESS WHEREOF, intending to be legally bound, each Obligor has caused
this Security Agreement to be duly executed as of the date first above written.

                                             HEXCEL CORPORATION

                                        By: /s/ Stephen C. Forsyth
                                            ------------------------------------
                                             Name:   Stephen C. Forsyth
                                             Title: Executive Vice President

                                             CLARK-SCHWEBEL
                                             CORPORATION

                                        By:  /s/ Stephen C. Forsyth
                                             -----------------------------------
                                             Name:   Stephen C. Forsyth
                                             Title:   Vice President

                                             HEXCEL POTTSVILLE
                                             CORPORATION

                                        By:  /s/ Stephen C. Forsyth
                                             -----------------------------------
                                             Name:   Stephen C. Forsyth
                                             Title:   Vice President

                                             CLARK-SCHWEBEL HOLDING
                                             CORPORATION

                                         By: /s/ Stephen c. Forsyth
                                             -----------------------------------
                                             Name:   Stephen C. Forsyth
                                             Title:   Vice President

                                             CS TECH-FAB HOLDINGS, INC.,

                                         By: /s/ Stephen C. Forsyth
                                             -----------------------------------
                                             Name:   Stephen C. Forsyth
                                             Title:   Vice President

<Page>

                                       -2-

Accepted:

FLEET CAPITAL CORPORATION,
 as Administrative Agent

By: /s/ Edgar Ezerins
    --------------------------------------
Name:  Edgar Ezerins
Title: Senior Vice President<Page>

                                                                    Exhibit 10.3

                               HEXCEL CORPORATION
                            2003 INCENTIVE STOCK PLAN

                                   I. PURPOSE

          This Hexcel Corporation 2003 Incentive Stock Plan (this "Plan") is an
amendment and restatement of the Current Incentive Stock Plan and the Current
Broad Based Plan (the Current Incentive Stock Plan together with the Current
Broad Based Plan to be collectively referred to as the "Amended and Restated
Plans"). This Plan combines the Amended and Restated Plans into one plan and
increases the number of shares available under the Amended and Restated Plans.
Upon the Effective Date, each Award (as defined in the Amended and Restated
Plans) outstanding under either of the Amended and Restated Plans shall become
an Award outstanding under this Plan, and shall continue to be subject to the
same terms and conditions to which such Award was subject prior to the adoption
of this Plan.

          This Plan is intended to attract, retain and provide incentives to
Employees, officers, Directors and consultants of the Corporation, and to
thereby increase overall stockholders' value. This Plan generally provides for
the granting of stock, stock options, stock appreciation rights, restricted
shares, other stock-based awards or any combination of the foregoing to the
eligible participants.

                                 II. DEFINITIONS

     (a)  "Affiliate" of any Person shall mean any other Person that directly or
indirectly, through one or more intermediaries, Controls, is Controlled by, or
is under common Control with, such first Person. The term "Control" shall have
the meaning specified in Rule 12b-2 under the Exchange Act.

     (b)  "Award" includes, without limitation, stock options (including
Director Options and incentive stock options within the meaning of Section
422(b) of the Code) with or without stock appreciation rights, dividend
equivalent rights, stock awards, restricted share awards, or other awards that
are valued in whole or in part by reference to, or are otherwise based on, the
Common Stock ("other Common Stock-based Awards"), all on a stand-alone,
combination or tandem basis, as described in or granted under this Plan.

     (c)  "Award Agreement" means a written agreement setting forth the terms
and conditions of each Award made under this Plan.

     (d)  "Beneficial Owner" (and variants thereof) shall have the meaning given
in Rule 13d-3 promulgated under the Exchange Act.

     (e)  "Board" means the Board of Directors of the Corporation.

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

<Page>

     (g)  "Committee" means the Compensation Committee of the Board or such
other committee of the Board as may be designated by the Board from time to time
to administer this Plan.

     (h)  "Common Stock" means the $.01 par value common stock of the
Corporation.

     (i)  "Corporation" means Hexcel Corporation, a Delaware corporation.

     (j)  "Current Broad Based Plan" means the Hexcel Corporation 1998 Broad
Based Incentive Stock Plan, dated as of February 5, 1998, as amended on February
3, 2000, February 1, 2001 and January 10, 2002

     (k)  "Current Incentive Stock Plan" means the Hexcel Corporation Incentive
Stock Plan, dated as of February 21, 1996, which Plan was amended and restated
January 30, 1997, further amended on December 10, 1997, further amended on March
25, 1999, further amended on December 2, 1999, amended and restated on February
3, 2000, amended and restated on December 19, 2000, and further amended on
January 10, 2002

     (l)  "Director" means a member of the Board.

     (m)  "Director Option" means a stock option granted pursuant to Section VII
hereof to a Director.

     (n)  "Director Optionee" means a recipient of an Award of a Director
Option.

     (o)  "Effective Date" means March 19, 2003.

     (p)  "Employee" means an employee of the Corporation or a Subsidiary.

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

     (r)  "Fair Market Value" means the closing price for the Common Stock as
reported in publications of general circulation from the New York Stock Exchange
Consolidated Transactions Tape on such date, or, if there were no sales on the
valuation date, on the next preceding date on which such closing price was
recorded; provided, however, that the Committee may specify some other
definition of Fair Market Value in good faith with respect to any particular
Award.

     (s)  "Participant" means an Employee, officer, Director or consultant who
has been granted an Award under this Plan.

     (t)  "Person" shall have the meaning given in Section 3(a)(9) of the
Exchange Act, as modified and used in Sections 13(d) and 14(d) of the Exchange
Act.

     (u)  "Plan Year" means a calendar year.

     (v)  "Stockholders Agreement" means any stockholders agreement, governance
agreement or other similar agreement between the Corporation and a holder or
holders of Voting Securities.

                                        2
<Page>

     (w)  "Subsidiary" means any corporation or other entity, whether domestic
or foreign, in which the Corporation has or obtains, directly or indirectly, a
proprietary interest of more than 50% by reason of stock ownership or otherwise.

     (x)  "Voting Securities" means Common Stock and any other securities of the
Corporation entitled to vote generally in the election of directors of the
Corporation.

                                III. ELIGIBILITY

          Any Employee, officer, Director or consultant of the Corporation or a
Subsidiary selected by the Committee is eligible to receive an Award pursuant to
Section VI hereof. Additionally, Directors described in Section VII(a) hereof
are eligible to receive Awards of Director Options pursuant to Section VII.

                             IV. PLAN ADMINISTRATION

     (a)  Except as otherwise determined by the Board, this Plan shall be
administered by the Committee. The Board, or the Committee to the extent
determined by the Board, shall periodically make determinations with respect to
the participation of Employees, officers, Directors and consultants in this Plan
and, except as otherwise required by law or this Plan, the grant terms of
Awards, including vesting schedules, price, restriction or option period,
dividend rights, post-retirement and termination rights, payment alternatives
such as cash, stock, contingent awards or other means of payment consistent with
the purposes of this Plan, and such other terms and conditions as the Board or
the Committee deems appropriate which shall be contained in an Award Agreement
with respect to a Participant.

     (b)  The Committee shall have authority to interpret and construe the
provisions of this Plan and any Award Agreement and make determinations pursuant
to any Plan provision or Award Agreement which shall be final and binding on all
persons. No member of the Committee shall be liable for any action or
determination made in good faith, and the members shall be entitled to
indemnification and reimbursement in the manner provided in the Corporation's
Certificate of Incorporation, as it may be amended from time to time.

     The Committee shall have the authority at the time of the grant of any
Award to provide for the conditions and circumstances under which such Award
shall be forfeited. The Committee shall have the authority to accelerate the
vesting of any Award and the time at which any Award becomes exercisable. The
Committee shall have the authority to cancel an Award (with the consent of the
Participant holding such Award) on such terms and conditions as the Committee
shall determine.

             V. CAPITAL STOCK SUBJECT TO THE PROVISIONS OF THIS PLAN

     (a)  The capital stock subject to the provisions of this Plan shall be
shares of authorized but unissued Common Stock and shares of Common Stock held
as treasury stock. Subject to adjustment in accordance with the provisions of
Section XI, and subject to Section V(c) below, the maximum number of shares of
Common Stock that shall be available for grants of Awards under this Plan shall
be 14,233,848, which, as of the Effective Date, includes (i) 8,483,918 shares of
Common Stock subject to outstanding grants of Awards under this Plan,

                                        3
<Page>

and (ii)5,749,930 shares of Common Stock available for future grants of Awards
under this Plan.

     (b)  The grant of a restricted share Award shall be deemed to be equal to
the maximum number of shares which may be issued under the Award. Awards payable
only in cash will not reduce the number of shares available for Awards granted
under this Plan.

     (c)  There shall be carried forward and be available for Awards under this
Plan, in addition to shares available for grant under paragraph (a) of this
Section V, all of the following: (i) shares represented by Awards which are
cancelled, forfeited, surrendered, terminated, paid in cash or expire
unexercised; and (ii) the excess amount of variable Awards which become fixed at
less than their maximum limitations.

                    VI. DISCRETIONARY AWARDS UNDER THIS PLAN

          As the Board or Committee may determine, the following types of
Awards and other Common Stock-based Awards may be granted under this Plan on a
stand-alone, combination or tandem basis:

     (a)  STOCK OPTION. A right to buy a specified number of shares of Common
Stock at a fixed exercise price during a specified time, all as the Committee
may determine.

     (b)  INCENTIVE STOCK OPTION. An Award which may be granted only to
Employees in the form of a stock option which shall comply with the requirements
of Code Section 422 or any successor section as it may be amended from time to
time. The exercise price of any incentive stock option shall not be less than
100% of the Fair Market Value of the Common Stock on the date of grant of the
incentive stock option Award. Subject to adjustment in accordance with the
provisions of Section XI, the aggregate number of shares which may be subject to
incentive stock option Awards under this Plan shall not exceed the maximum
number of shares provided in paragraph (a) of Section V above. To the extent
that the aggregate Fair Market Value of Common Stock with respect to which
options intended to be incentive stock options are exercisable for the first
time by any individual during any calendar year exceeds $100,000, such options
shall be treated as options which are not incentive stock options.

     (c)  STOCK OPTION IN LIEU OF COMPENSATION ELECTION. A right given with
respect to a year to a Director, officer or key Employee to elect to exchange
annual retainers, fees or compensation for stock options.

     (d)  STOCK APPRECIATION RIGHT. A right which may or may not be contained in
the grant of a stock option or incentive stock option to receive the excess of
the Fair Market Value of a share of Common Stock on the date the option is
surrendered over the option exercise price or other specified amount contained
in the Award Agreement.

     (e)  RESTRICTED SHARES. A transfer of Common Stock to a Participant subject
to forfeiture until such restrictions, terms and conditions as the Committee may
determine are fulfilled.

     (f)  DIVIDEND OR EQUIVALENT. A right to receive dividends or their
equivalent in value in Common Stock, cash or in a combination of both with
respect to any new or previously existing Award.

                                        4
<Page>

     (g)  STOCK AWARD. An unrestricted transfer of ownership of Common Stock.

     (h)  OTHER STOCK-BASED AWARDS. Other Common Stock-based Awards which are
related to or serve a similar function to those Awards set forth in this
Section VI.

                       VII. FORMULA AWARDS UNDER THIS PLAN

          In addition to discretionary Awards (including, without limitation,
options) that may be granted to Directors pursuant to Section VI hereof,
Director Options shall be granted as provided below:

     (a)  GRANTS OF DIRECTOR OPTIONS.

          (i)    With respect to any individual who becomes a Director and who
is not also a full-time employee of the Corporation or any Subsidiary (provided
such individual has not previously received a grant pursuant to this Section
VII(a)(i)), such individual shall be granted, as of the date of election or
appointment as a Director, a Director Option to acquire 10,000 shares of Common
Stock upon the terms and subject to the conditions set forth in this Plan and
this Section VII.

          (ii)   Immediately after each annual meeting of stockholders of the
Corporation each Director who is not on such date also a full-time employee of
the Corporation or any Subsidiary shall be granted a Director Option to acquire
2,000 shares of Common Stock upon the terms and subject to the conditions set
forth in this Plan and this Section VII.

          (iii)  If on any date when Options are to be granted pursuant to
Section VII(a)(i) or (ii) the total number of shares of Common Stock as to which
Director Options are to be granted exceeds the number of shares of Common Stock
remaining available under this Plan, there shall be a PRO RATA reduction in the
number of shares of Common Stock as to which each Director Option is granted on
such day.

     (b)  TERMS OF DIRECTOR OPTIONS.

          The terms of each Director Option granted under this Section VII shall
be determined by the Board consistent with the provisions of this Plan,
including the following:

          (i)    The purchase price of the shares of Common Stock subject to
each Director Option shall be equal to the Fair Market Value of such shares on
the date such option is granted.

          (ii)   Each Director Option shall be exercisable as to one-third of
the shares subject thereto immediately upon the grant of the option and as to an
additional one-third of such shares on the first and second anniversaries of the
date of such grant.

          (iii)  Each Director Option shall expire ten years after the granting
thereof. Each Director Option shall be subject to earlier expiration as
expressly provided in Section VII(c) hereof.

     (c)  DISABILITY, DEATH OR TERMINATION OF DIRECTOR STATUS; CHANGE IN
CONTROL.

                                        5
<Page>

          (i)    If a Director Optionee ceases to be a Director for any reason
other than his disability or death, each Director Option held by him to the
extent exercisable on the effective date of his ceasing to be a Director shall
remain exercisable until the earlier to occur of (i) the first anniversary of
such effective date and (ii) the expiration of the stated term of the Director
Option; PROVIDED, HOWEVER, that if the Director Optionee is removed, withdraws
or otherwise ceases to be a Director due to his fraud, dishonesty or intentional
misrepresentation in connection with his duties as a Director or his
embezzlement, misappropriation or conversion of assets or opportunities of the
Corporation or any Subsidiary, all unexercised Director Options held by the
Director Optionee shall expire forthwith. Each Director Option held by the
Director Optionee to the extent not exercisable on the effective date of his
ceasing to be a Director for any reason other than his disability or death shall
expire forthwith.

          (ii)   If a Director Optionee ceases to be a Director as a result of
his disability or death, each Director Option held by him to the extent that the
Director Option is exercisable on the effective date of his ceasing to be a
Director shall remain exercisable by the Director Optionee or the Director
Optionee's executor, administrator, legal representative or beneficiary, as the
case may be, until the earlier to occur of (x) the third anniversary of such
effective date and (y) the expiration of the stated term of the Director Option.
Each Director Option held by the Director Optionee to the extent not exercisable
on the effective date of his ceasing to be a Director as a result of his
disability or death shall expire forthwith.

          (iii)  In the event of a Change in Control (as hereinafter defined)
while a Director Optionee is a Director, each Director Option held by the
Director Optionee to the extent not then exercisable shall thereupon become
exercisable. If a Change in Control occurs on or before the effective date of a
Director Optionee's ceasing to be a Director, the provisions of this subsection
(iii) shall govern with respect to the exercisability of the Director Options
held by him as of the date on which the Director Optionee ceases to be a
Director and the provisions of subsection (i) or (ii) of this Section VII(c)
shall govern with respect to the period of time during which such Director
Options shall remain exercisable. For purposes of this subsection (iii), "Change
in Control" shall mean any of the following events:

               (1) any Person is or becomes the Beneficial Owner, directly or
indirectly, of 40% or more of either (A) the then outstanding Common Stock of
the Corporation (the "Outstanding Common Stock") or (B) the combined voting
power of the then outstanding securities entitled to vote generally in the
election of directors of the Corporation (the "Total Voting Power"); excluding,
however, the following: (I) any acquisition by the Corporation or any of its
Controlled Affiliates, (II) any acquisition by any employee benefit plan (or
related trust) sponsored or maintained by the Corporation or any of its
Controlled Affiliates and (III) any Person who becomes such a Beneficial Owner
in connection with a transaction described in the exclusion within paragraph (3)
below; or

               (2) a change in the composition of the Board such that the
individuals who, as of the Effective Date, constitute the Board (such
individuals shall be hereinafter referred to as the "Incumbent Directors") cease
for any reason to constitute at least a majority of the Board; PROVIDED,
HOWEVER, for purposes of this definition, that any individual who becomes a
director subsequent to such date whose election, or nomination for election by
the Corporation's stockholders, was made or approved pursuant to the terms of
each then existing Stockholders Agreement or by a vote of at least a majority of
the Incumbent Directors (or directors whose election or nomination for election
was previously so approved) shall be

                                        6
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considered a member of the Incumbent Board; but, PROVIDED, FURTHER, that any
such individual whose initial assumption of office occurs as a result of either
an actual or threatened election contest (as such terms are used in Rule 14a-11
of Regulation 14A promulgated under the Exchange Act) or other actual or
threatened solicitation of proxies or consents by or on behalf of a person or
legal entity other than the Board shall not be considered a member of the
Incumbent Board; or

               (3) there is consummated a merger or consolidation of the
Corporation or any direct or indirect subsidiary of the Corporation or a sale or
other disposition of all or substantially all of the assets of the Corporation
("Corporate Transaction"); excluding, however, such a Corporate Transaction (A)
pursuant to which all or substantially all of the individuals and entities who
are the Beneficial Owners, respectively, of the Outstanding Common Stock and
Total Voting Power immediately prior to such Corporate Transaction will
Beneficially Own, directly or indirectly, more than 50%, respectively, of the
outstanding common stock and the combined voting power of the then outstanding
common stock and the combined voting power of the then outstanding securities
entitled to vote generally in the election of directors of the company resulting
from such Corporate Transaction (including, without limitation, a company which
as a result of such transaction owns the Corporation or all or substantially all
of the Corporation's assets either directly or through one or more subsidiaries)
in substantially the same proportions as their ownership immediately prior to
such Corporate Transaction of the Outstanding Common Stock and Total Voting
Power, as the case may be, and (B) immediately following which the individuals
who comprise the Board immediately prior thereto constitute at least a majority
of the board of directors of the company resulting from such Corporate
Transaction (including, without limitation, a company which as a result of such
transaction owns the Corporation or all or substantially all of the
Corporation's assets either directly or through one or more subsidiaries); or

               (4) the approval by the stockholders of the Corporation of a
complete liquidation or dissolution of the Corporation.

                             VIII. AWARD AGREEMENTS

          Each Award under this Plan shall be evidenced by an Award Agreement
setting forth the terms and conditions of the Award and executed by the
Corporation and Participant.

                         IX. OTHER TERMS AND CONDITIONS

     (a)  ASSIGNABILITY. Unless provided to the contrary in any Award, no Award
shall be assignable or transferable except by will, by the laws of descent and
distribution and during the lifetime of a Participant, the Award shall be
exercisable only by such Participant. No Award granted under this Plan shall be
subject to execution, attachment or process.

     (b)  TERMINATION OF EMPLOYMENT OR OTHER RELATIONSHIP. The Committee shall
determine the disposition of the grant of each Award in the event of the
retirement, disability, death or other termination of a Participant's employment
or other relationship with the Corporation or a Subsidiary.

     (c)  RIGHTS AS A STOCKHOLDER. A Participant shall have no rights as a
stockholder with respect to shares covered by an Award until the date the
Participant is the holder of record. No adjustment will be made for dividends or
other rights for which the record date is prior to such date.

                                        7
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     (d)  NO OBLIGATION TO EXERCISE. The grant of an Award shall impose no
obligation upon the Participant to exercise the Award.

     (e)  PAYMENTS BY PARTICIPANTS. The Committee may determine that Awards for
which a payment is due from a Participant may be payable: (i) in U.S. dollars by
personal check, bank draft or money order payable to the order of the
Corporation, by money transfers or direct account debits; (ii) through the
delivery or deemed delivery based on attestation to the ownership of shares of
Common Stock with a Fair Market Value equal to the total payment due from the
Participant; (iii) pursuant to a "cashless exercise" program if established by
the Corporation; (iv) by a combination of the methods described in (i) through
(iii) above; or (v) by such other methods as the Committee may deem appropriate.

     (f)  WITHHOLDING. Except as otherwise provided by the Committee, (i) the
deduction of withholding and any other taxes required by law will be made from
all amounts paid in cash and (ii) in the case of payments of Awards in shares of
Common Stock, the Participant shall be required to pay the amount of any taxes
required to be withheld prior to receipt of such stock, or alternatively, a
number of shares the Fair Market Value of which equals the amount required to be
withheld may be deducted from the payment.

     (g)  MAXIMUM AWARDS. The maximum number of shares of Common Stock that may
be issued to any single Participant pursuant to options under this Plan is equal
to the maximum number of shares provided for in paragraph (a) of Section V.

                   X. TERMINATION, MODIFICATION AND AMENDMENTS

     (a)  The Committee may at any time terminate this Plan or from time to time
make such modifications or amendments of this Plan as it may deem advisable;
provided, however, that no amendments to this Plan which require stockholder
approval under applicable law, rule or regulation shall become effective unless
the same shall be approved by the requisite vote of the Corporation's
stockholders.

     (b)  No termination, modification or amendment of this Plan may adversely
affect the rights conferred by an Award without the consent of the recipient
thereof.

                                        8
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                              XI. RECAPITALIZATION

          The aggregate number of shares of Common Stock as to which Awards may
be granted to Participants, the number of shares thereof covered by each
outstanding Award, and the per share price thereof set forth in each outstanding
Award, shall all be proportionately adjusted for any increase or decrease in the
number of issued shares of Common Stock resulting from a subdivision or
consolidation of shares or other capital adjustment, or the payment of a stock
dividend or other increase or decrease in such shares, effected without receipt
of consideration by the Corporation, or other change in corporate or capital
structure; provided, however, that any fractional shares resulting from any such
adjustment shall be eliminated. The Committee shall also make the foregoing
changes and any other changes, including changes in the classes of securities or
other consideration available, to the extent it is deemed necessary or desirable
to preserve the intended benefits of this Plan for the Corporation and the
Participants in the event of any other reorganization, recapitalization, merger,
consolidation, spin-off, extraordinary dividend or other distribution or similar
transaction.

                           XII. NO RIGHT TO EMPLOYMENT

          Except as provided in Section VII with respect to Director Options, no
person shall have any claim or right to be granted an Award, and the grant of an
Award shall not be construed as giving a Participant the right to be retained in
the employ of, or in any other relationship with, the Corporation or a
Subsidiary. Further, the Corporation and each Subsidiary expressly reserve the
right at any time to dismiss a Participant free from any liability, or any claim
under this Plan, except as provided herein or in any Award Agreement issued
hereunder or in any other agreement applicable between a Participant and the
Corporation or a Subsidiary.

                               XIII. GOVERNING LAW

          To the extent that federal laws do not otherwise control, this Plan
shall be construed in accordance with and governed by the laws of the State of
Delaware.

                               XIV. SAVINGS CLAUSE

          This Plan is intended to comply in all aspects with applicable laws
and regulations. In case any one more of the provisions of this Plan shall be
held invalid, illegal or unenforceable in any respect under applicable law and
regulation, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby and the invalid,
illegal or unenforceable provision shall be deemed null and void; however, to
the extent permissible by law, any provision which could be deemed null and void
shall first be construed, interpreted or revised retroactively to permit this
Plan to be construed in compliance with all applicable laws so as to foster the
intent of this Plan.

                           XV. EFFECTIVE DATE AND TERM

          This Plan shall be effective as of the Effective Date.

          THIS PLAN SHALL TERMINATE ON THE TENTH ANNIVERSARY DATE OF THE
EFFECTIVE DATE. NO AWARDS SHALL BE GRANTED AFTER THE TERMINATION OF THIS PLAN.

                                        9

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