Document:

<PAGE>

                                  eLOT, INC.

                           1999 STOCK INCENTIVE PLAN
<PAGE>

                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

ARTICLE I DEFINITIONS........................................................  5

     1.01. Acquiring Person..................................................  5
     1.02. Administrator.....................................................  5
     1.03. Affiliate.........................................................  5
     1.04. Agreement.........................................................  5
     1.05. Associate.........................................................  5
     1.06. Board.............................................................  5
     1.07. Change in Control.................................................  5
     1.08. Code..............................................................  6
     1.09. Committee.........................................................  6
     1.10. Common Stock......................................................  6
     1.11. Company...........................................................  6
     1.12. Continuing Director...............................................  7
     1.13. Control Affiliate.................................................  7
     1.14. Control Change Date...............................................  7
     1.15. Corresponding SAR.................................................  7
     1.16. Exchange Act......................................................  7
     1.17. Fair Market Value.................................................  7
     1.18. Initial Value.....................................................  8
     1.19. Option............................................................  8
     1.20. Participant.......................................................  8
     1.21. Person............................................................  8
     1.22. Plan..............................................................  8
     1.23. Related Entity....................................................  9
     1.24. SAR...............................................................  9
     1.25. Stock Award.......................................................  9

ARTICLE II PURPOSES..........................................................  9

ARTICLE III ADMINISTRATION................................................... 10

ARTICLE IV ELIGIBILITY....................................................... 10

ARTICLE V COMMON STOCK SUBJECT TO PLAN....................................... 11

     5.01. Common Stock Issued............................................... 11

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                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

     5.02. Aggregate Limit................................................... 11
     5.03. Reallocation of Shares............................................ 12
     5.04. Individual Annual Aggregate Limit................................. 12

ARTICLE VI OPTIONS........................................................... 12

     6.01. Award............................................................. 12
     6.02. Option Price...................................................... 13
     6.03. Maximum Option Period............................................. 13
     6.04. Nontransferability................................................ 13
     6.05. Transferable Options.............................................. 13
     6.06. Status as Employee or Service Provider............................ 14
     6.07. Exercise.......................................................... 14
     6.08. Payment........................................................... 14
     6.09. Change in Control................................................. 15
     6.10. Shareholder Rights................................................ 15
     6.11. Disposition of Shares............................................. 15
     6.12. Deferred Stock Benefits........................................... 15

ARTICLE VII SARS............................................................. 15

     7.01. Award............................................................. 15
     7.02. Maximum SAR Period................................................ 16
     7.03. Nontransferability................................................ 16
     7.04. Transferable SARs................................................. 16
     7.05. Exercise.......................................................... 16
     7.06. Change in Control................................................. 17
     7.07. Status as Employee or Service Provider............................ 17
     7.08. Settlement........................................................ 17
     7.09. Shareholder Rights................................................ 17

ARTICLE VIII STOCK AWARDS.................................................... 18

     8.01. Award............................................................. 18
     8.02. Vesting........................................................... 18
     8.03. Performance Objectives............................................ 18
     8.04. Status as Employee or Service Provider............................ 18
     8.05. Change in Control................................................. 19
     8.06. Shareholder Rights................................................ 19
     8.07. Deferred Stock Benefits........................................... 19

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                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

ARTICLE IX ADJUSTMENT UPON CHANGE IN COMMON STOCK............................ 19

ARTICLE X COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES.............. 20

ARTICLE XI GENERAL PROVISIONS................................................ 22

     11.01. Effect on Employment and Service................................. 22
     11.02. Unfunded Plan.................................................... 22
     11.03. Rules of Construction............................................ 22

ARTICLE XII AMENDMENT........................................................ 22

ARTICLE XIII DURATION OF PLAN................................................ 23

ARTICLE XIV EFFECTIVE DATE OF PLAN........................................... 23

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                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

                                   ARTICLE I
                                  DEFINITIONS
                                  -----------

1.01.  Acquiring Person
       ----------------

        Acquiring Person means a Person who, considered alone or together with
all Control Affiliates and Associates of that Person, is or becomes directly or
indirectly the beneficial owner (as defined in Rule 13d-3 under the Exchange
Act) of securities representing at least fifty percent (50%) of the Company's
then outstanding securities entitled to vote generally in the election of the
Board.

1.02.  Administrator
       -------------

       Administrator means the Board, the Committee, or any delegate of the
Committee that is appointed in accordance with Article III.

1.03.  Affiliate
       ---------

       Affiliate means any "subsidiary" or "parent" corporation (within the
meaning of Section 424 of the Code) of the Company, including a corporation that
becomes an Affiliate after the adoption of this Plan.

1.04.  Agreement
       ---------

       Agreement means a written agreement (including any amendment or
supplement thereto) between the Company and a Participant specifying the terms
and conditions of a Stock Award or an Option or SAR granted to such Participant.

1.05.  Associate
       ---------

       Associate, with respect to any Person, is defined in Rule 12b-2 of the
General Rules and Regulations under the Exchange Act.  An Associate does not
include the Company or a majority-owned subsidiary of the Company.

1.06.  Board
       -----

       Board means the Board of Directors of the Company.

1.07.  Change in Control
       -----------------

       Change in Control means (i) a Person is or becomes an Acquiring Person;
(ii) holders of the securities of the Company entitled to vote thereon approve
any

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                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

agreement with a Person (or, if such approval is not required by applicable
law and is not solicited by the Company, the closing of such an agreement) that
involves the transfer of all or substantially all of the Company's total assets
on a consolidated basis, as last reported in the Company's consolidated
financial statements filed with the Securities and Exchange Commission; (iii)
holders of the securities of the Company entitled to vote thereon approve a
transaction (or, if such approval is not required by applicable law and is not
solicited by the Company, the closing of such a transaction) pursuant to which
the Company will undergo a merger, consolidation, or statutory share exchange
with a Person, regardless of whether the Company is intended to be the surviving
or resulting entity after the merger, consolidation, or statutory share
exchange, other than a transaction that results in the voting securities of the
          ----- ----
Company carrying the right to vote in elections of persons to the Board
outstanding immediately prior to the closing of the transaction continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) at least fifty percent (50%) of the
Company's voting securities carrying the right to vote in elections of persons
to the Company's Board, or such securities of such surviving entity, outstanding
immediately after the closing of such transaction; (iv) the Continuing Directors
cease for any reason to constitute a majority of the Board; or (v) holders of
the securities of the Company entitled to vote thereon approve a plan of
complete liquidation of the Company or an agreement for the sale or liquidation
by the Company of substantially all of the Company's assets (or, if such
approval is not required by applicable law and is not solicited by the Company,
the commencement of actions constituting such a plan or the closing of such an
agreement).

1.08.  Code
       ----

       Code means the Internal Revenue Code of 1986, and any amendments thereto.

1.09.  Committee
       ---------

       Committee means the Compensation Committee of the Board.

1.10.  Common Stock
       ------------

       Common Stock means the common stock of the Company.

1.11.  Company
       -------

      Company means eLOT, Inc.

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                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

1.12.  Continuing Director
       -------------------

       Continuing Director means any member of the Board, while a member of the
Board and (i) who was a member of the Board immediately following the 1999
Annual Meeting of Shareholders, or (ii) whose nomination for or election to the
Board was recommended or approved by a majority of the Continuing Directors.

1.13.  Control Affiliate
       -----------------

       Control Affiliate with respect to any Person, means an affiliate as
defined in Rule 12b-2 of the General Rules and Regulations under the Exchange
Act.

1.14.  Control Change Date
       -------------------

       Control Change Date means the date on which a Change in Control occurs.
If a Change in Control occurs on account of a series of transactions, the
"Control Change Date" is the date of the last of such transactions.

1.15.  Corresponding SAR
       -----------------

       Corresponding SAR means an SAR that is granted in relation to a
particular Option and that can be exercised only upon the surrender to the
Company, unexercised, of that portion of the Option to which the SAR relates.

1.16.  Exchange Act
       ------------

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

1.17.  Fair Market Value
       -----------------

       Fair Market Value means, on any given date, the reported "closing"
price of a share of Common Stock in the Nasdaq Stock Market. The preceding
sentence to the contrary notwithstanding, if the Common Stock is listed upon
another stock exchange or exchanges, the Fair Market Value on any given date
shall be the highest closing price of the Common Stock on such exchange or
exchanges. If, on any given date, no share of Common Stock is traded on the
Nasdaq Stock Market or on an established stock exchange, then Fair Market Value
shall be determined with reference to the next preceding day that the Common
Stock was so traded.

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                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

1.18.  Initial Value
       -------------

       Initial Value means, with respect to a Corresponding SAR, the option
price per share of the related Option and, with respect to a SAR granted
independently of an Option, the Fair Market Value of one share of Common stock
on the date of grant.

1.19.  Option
       ------

       Option means a stock option that entitles the holder to purchase from the
Company a stated number of shares of Common Stock at the price set forth in an
Agreement.

1.20.  Participant
       -----------

       Participant means an employee of the Company or an Affiliate, a member of
the Board (whether or not such Board member is employed by the Company or an
Affiliate), or any other Person who provides services to the Company or an
Affiliate, who satisfies the requirements of Article IV and is selected by the
Administrator to receive, a Stock Award, an Option, an SAR, or a combination
thereof.

1.21.  Person
       ------

       Person means any human being, firm, corporation, partnership, or other
entity.  "Person" also includes any human being, firm, corporation, partnership,
or other entity as defined in sections 13(d)(3) and 14(d)(2) of the Exchange
Act.  The term "Person" does not include the Company or any Related Entity, and
the term Person does not include any employee-benefit plan maintained by the
Company or any Related Entity, and any person or entity organized, appointed, or
established by the Company or any Related Entity for or pursuant to the terms of
any such employee-benefit plan, unless the Board determines that such an
employee-benefit plan or such person or entity is a "Person".

1.22.  Plan
       ----

       Plan means the eLOT, Inc. 1999 Stock Incentive Plan.  The name of the
Plan shall be changed automatically to reflect any change of name of the Company
that is approved by the shareholders of the Company.

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                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

1.23.  Related Entity
       --------------

       Related Entity means any entity that is part of a controlled group of
corporations or is under common control with the Company within the meaning of
Sections 1563(a), 414(b) or 414(c) of the Code.

1.24.  SAR
       ---

       SAR means a stock appreciation right that in accordance with the terms of
an Agreement entitles the holder to receive, with respect to each share of
Common Stock encompassed by the exercise of such SAR, the amount determined by
the Administrator and specified in an Agreement.  In the absence of such a
determination, the holder shall be entitled to receive, with respect to each
share of Common Stock encompassed by the exercise of such SAR, the excess of the
Fair Market Value on the date of exercise over the Initial Value.  References to
"SARs" include both Corresponding SARs and SARs granted independently of
Options, unless the context requires otherwise.

1.25.  Stock Award
       -----------

       Stock Award means shares of Common Stock awarded to a Participant under
Article VIII.

                                   ARTICLE II
                                    PURPOSES
                                    --------

     The Plan is intended to assist the Company and its Affiliates in recruiting
and retaining individuals or entities with ability and initiative by enabling
such persons to participate in the future success of the Company and its
Affiliates and to associate their interests with those of the Company and its
shareholders.  The Plan is intended to permit the grant of both Options
qualifying under Section 422 of the Code ("incentive stock options") and Options
not so qualifying, and the grant of SARs, Stock Awards, and the deferral of
income with respect to Options and Stock Awards in accordance with the Plan and
procedures that may be established by the Administrator.  No Option that is
intended to be an incentive stock option shall be invalid for failure to qualify
as an incentive stock option.  The proceeds received by

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                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

the Company from the sale of shares of Common Stock pursuant to this Plan shall
be used for general corporate purposes.

                                  ARTICLE III
                                 ADMINISTRATION
                                 --------------

       The Plan shall be administered by the Administrator.  The Administrator
shall have authority to grant Stock Awards, Options and SARs upon such terms
(not inconsistent with the provisions of this Plan), as the Administrator may
consider appropriate.  Such terms may include conditions (in addition to those
contained in this Plan), on the exercisability of all or any part of an Option
or SAR or on the transferability or forfeitability of a Stock Award.
Notwithstanding any such conditions, the Administrator may, in its discretion,
(i) accelerate the time at which any Option or SAR may be exercised, or the time
at which a Stock Award may become transferable or nonforfeitable, or (ii)
suspend the forfeiture of any award made under this Plan.  In addition, the
Administrator shall have complete authority to interpret all provisions of this
Plan; to prescribe the form of Agreements and documents relating to the deferral
of income with respect to Options and Stock Awards; to adopt, amend, and rescind
rules and regulations pertaining to the administration of the Plan; and to make
all other determinations necessary or advisable for the administration of this
Plan.  The express grant in the Plan of any specific power to the Administrator
shall not be construed as limiting any power or authority of the Administrator.
Any decision made, or action taken, by the Administrator or in connection with
the administration of this Plan shall be final and conclusive.  Neither the
Administrator nor any member of the Committee shall be liable for any act done
in good faith with respect to this Plan or any Agreement, Option, SAR or Stock
Award.  All expenses of administering this Plan shall be borne by the Company.

       The Committee, in its discretion, may delegate to one or more officers of
the Company all or part of the Committee's authority and duties with respect to
grants and awards to individuals who are not subject to the reporting and other
provisions of Section 16 of the Exchange Act.  The Committee may revoke or amend
the terms of a delegation at any time but such action shall not invalidate any
prior actions of the Committee's delegate or delegates that were consistent with
the terms of the Plan.

                                   ARTICLE IV
                                  ELIGIBILITY
                                  -----------

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                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

       Any employee of the Company or an Affiliate, any member of the Board
(whether or not such Board member is employed by the Company or an Affiliate),
and any other Person who provides services to the Company or an Affiliate is
eligible to participate in this Plan if the Administrator, in its sole
discretion, determines that such Person has contributed significantly or can be
expected to contribute significantly to the profits or growth of the Company or
an Affiliate.

                                   ARTICLE V
                          COMMON STOCK SUBJECT TO PLAN
                          ----------------------------

5.01.  Common Stock Issued
       -------------------

       Upon the award of Common Stock pursuant to a Stock Award, the Company may
issue Common Stock from its authorized but unissued Common Stock.  Upon the
exercise of any Option or SAR, the Company may deliver to the Participant (or
the Participant's broker if the Participant so directs), shares of Common Stock
from its authorized but unissued Common Stock.  On the distribution of deferred
stock benefits in respect of a Stock Award or an Option that is not an incentive
stock option, the Company may issue shares of Common Stock from its authorized
but unissued Common Stock.

5.02.  Aggregate Limit
       ---------------

       The maximum aggregate number of shares of Common Stock that may be issued
under this Plan  is 13,000,000 shares.  The maximum aggregate number of shares
of Common Stock that may be issued under this Plan as Stock Awards (or as the
portion of a deferred stock benefit that represents forfeited shares of Common
Stock subject to such awards) is 1.3 million shares.  The maximum aggregate
number of shares of Common Stock that may be issued under this Plan and the
maximum number of shares of Common Stock that may be issued as Stock Awards (and
Deferred Stock Benefits that represent forfeited shares of Common Stock subject
to such awards) shall be subject to adjustment as provided in Article IX.
Shares of Common Stock issued in settlement of a deferred stock benefit, and the
shares of Common Stock subject to the Option or Stock Award or portion thereof
with respect to which such deferred stock benefit was elected, shall be counted
toward the foregoing limits only once (even in the case of shares subject to a
Stock Award that are canceled in connection with a deferred stock benefit
election).

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                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

5.03.  Reallocation of Shares
       ----------------------

       If an Option is terminated, in whole or in part, for any reason other
than its exercise (including an exercise that results in a deferred stock
benefit) or the exercise of a Corresponding SAR that is settled with shares of
Common Stock, the number of shares allocated to the Option or portion thereof
may be reallocated to other Options, SARs, and Stock Awards to be granted, and
to deferred stock benefits to be distributed, under this Plan. If an SAR is
terminated, in whole or in part, for any reason other than its exercise that is
settled with shares of Common Stock or the exercise of a related Option, the
number of shares of Common Stock allocated to the SAR or portion thereof may be
reallocated to other Options, SARs, and Stock Awards to be granted, and deferred
stock benefits to be distributed, under this Plan. If a Stock Award is
forfeited, in whole or in part, for any reason (other than a cancellation that
results in a deferred stock benefit), the number of shares of Common Stock
allocated to the Stock Award or portion thereof may be reallocated to other
Options, SARs, and Stock Awards to be granted, and deferred stock benefits to be
distributed, under this Plan. If a deferred stock benefit is forfeited, in whole
or in part, the number of shares of Common Stock allocated to the deferred stock
benefit or portion thereof may be reallocated to other Options, SARs, and Stock
Awards to be granted, and to the other deferred stock benefits to be
distributed, under the Plan.

5.04.  Individual Annual Aggregate Limit
       ---------------------------------

       No Participant may be granted any combination of Options, SARs and Stock
Awards in any calendar year covering more than an aggregate of 1,000,000 shares.

                                   ARTICLE VI
                                    OPTIONS
                                    -------

6.01.  Award
       -----

       In accordance with the provisions of Article IV, the Administrator will
designate each individual to whom an Option is to be granted and will specify
the number of shares of Common Stock covered by such awards; provided, however,
that no Participant may be granted Options in any calendar year covering more
than 500,000 shares.

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                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

6.02.  Option Price
       ------------

       The price per share for shares of Common Stock purchased on the exercise
of an Option shall be determined by the Administrator on the date of grant, but
shall not be less than the Fair Market Value on the date the Option is granted
in the case of an Option intended to qualify as an incentive stock option.

6.03.  Maximum Option Period
       ---------------------

       The maximum period in which an Option may be exercised shall be
determined by the Administrator on the date of grant, except that no Option that
is an incentive stock option shall be exercisable after the expiration of ten
years from the date such Option was granted. The terms of any Option that is an
incentive stock option may provide that it is exercisable for a period less than
such maximum period.

6.04.  Nontransferability
       ------------------

       Except as provided in Section 6.05, each Option granted under this Plan
shall be nontransferable except by will or by the laws of descent and
distribution.  In the event of any transfer of an Option (by the Participant or
his transferee), the Option and any Corresponding SAR that relates to such
Option must be transferred to the same person or persons or entity or entities.
Except as provided in Section 6.05, during the lifetime of the Participant to
whom the Option is granted, the Option may be exercised only by the Participant.
No right or interest of a Participant in any Option shall be liable for, or
subject to, any lien, obligation, or liability of such Participant.

6.05.  Transferable Options
       --------------------

       Section 6.04 to the contrary notwithstanding, if the Agreement provides,
an Option that is not an incentive stock option may be transferred by a
Participant to such persons or entities permitted under Securities Exchange
Commission Rule 16b-3 ("Rule 16b-3") as in effect from time to time on such
terms and conditions as may be permitted under Rule 16b-3 as in effect from time
to time. The holder of an Option transferred pursuant to this Section shall be
bound by the same terms and conditions that governed the Option during the
period that it was held by the Participant; provided, however, that such
transferee may not transfer the Option except by will or the laws of descent and
distribution. In the event of any transfer of an Option (by the Participant or
his transferee), the Option and any Corresponding SAR that relates to such
Option must be transferred to the same person or persons or entity or entities.

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                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

6.06.  Status as Employee or Service Provider
       --------------------------------------

       For purposes of determining the applicability of Section 422 of the Code
(relating to incentive stock options), or in the event that the terms of any
Option provide that it may be exercised only during employment or service or
within a specified period of time after termination of employment or service,
the Administrator may decide to what extent leaves of absence for governmental
or military service, illness, temporary disability, or other reasons shall not
be deemed interruptions of continuous employment or service.

6.07.  Exercise
       --------

       Subject to the provisions of this Plan and the applicable Agreement, an
Option may be exercised in whole at any time or in part from time to time at
such times and in compliance with such requirements as the Administrator shall
determine; provided, however, that incentive stock options (granted under the
Plan and all plans of the Company and its Affiliates) may not be first
exercisable in a calendar year for shares of Common Stock having a Fair Market
Value (determined as of the date an Option is granted) exceeding $100,000.  An
Option granted under this Plan may be exercised with respect to any number of
whole shares less than the full number for which the Option could be exercised.
A partial exercise of an Option shall not affect the right to exercise the
Option from time to time in accordance with this Plan and the applicable
Agreement with respect to the remaining shares subject to the Option.  The
exercise of an Option shall result in the termination of any Corresponding SAR
to the extent of the number of shares with respect to which the Option is
exercised.

6.08.  Payment
       -------

       Subject to rules established by the Administrator and unless otherwise
provided in an Agreement, payment of all or part of the Option price may be made
in cash, a cash equivalent acceptable to the Administrator, or with shares of
Common Stock.  If shares of Common Stock are used to pay all or part of the
Option price, the sum of the cash and cash equivalent and the Fair Market Value
(determined as of the day preceding the date of exercise) of the shares
surrendered must not be less than the Option price of the shares for which the
Option is being exercised.

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                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

6.09.  Change in Control
       -----------------

       Section 6.07 to the contrary notwithstanding, each outstanding Option
shall be fully exercisable (in whole or in part at the discretion of the holder)
on and after a Control Change Date.

6.10.  Shareholder Rights
       ------------------

       No Participant shall have any rights as a shareholder with respect to
shares subject to his Option until the date of exercise of such Option.

6.11.  Disposition of Shares
       ---------------------

       A Participant shall notify the Company of any sale or other disposition
of shares acquired pursuant to an Option that was an incentive stock option if
such sale or disposition occurs (i) within two years of the grant of an Option
or (ii) within one year of the issuance of shares to the Participant. Such
notice shall be in writing and directed to the Secretary of the Company.

6.12.  Deferred Stock Benefits
       -----------------------

       If permitted by the Administrator, and in accordance with any procedures
so established, a Participant may elect to defer all or part of the gain
attributable to the exercise of an Option that is not an incentive stock option
and thereby elect a deferred stock benefit, which shall be payable in shares of
Common Stock, on the terms specified by the Administrator.  The terms and
conditions of such an election and the deferred stock benefit shall be
determined by the Administrator.

                                  ARTICLE VII
                                      SARS
                                      ----

7.01.  Award
       -----

       In accordance with the provisions of Article IV, the Administrator will
designate each individual to whom SARs are to be granted and will specify the
number of shares of Common Stock covered by such awards; provided, however, that
no Participant may be granted SARs in any calendar year covering more than
500,000 shares of Common Stock. For purposes of the foregoing limits, an Option
and Corresponding SAR shall be treated as a single award.  In addition no
Participant may be granted Corresponding SARs (under all incentive stock option
plans of the

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                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

Company and its Affiliates) that are related to incentive stock options which
are first exercisable in any calendar year for shares of Common Stock having an
aggregate Fair Market Value (determined as of the date the related Option is
granted) that exceeds $100,000.

7.02.  Maximum SAR Period
       ------------------

       The term of each SAR shall be determined by the Administrator on the date
of grant, except that no Corresponding SAR that is related to an incentive stock
option shall have a term of more than ten years from the date such related
Option was granted.  The terms of any Corresponding SAR that is related to an
incentive stock option may provide that it has a term that is less than such
maximum period.

7.03.  Nontransferability
       ------------------

       Except as provided in Section 7.04, each SAR granted under this Plan
shall be nontransferable except by will or by the laws of descent and
distribution. In the event of any such transfer, a Corresponding SAR and the
related Option must be transferred to the same person or persons or entity or
entities. During the lifetime of the Participant to whom the SAR is granted, the
SAR may be exercised only by the Participant. No right or interest of a
Participant in any SAR shall be liable for, or subject to, any lien, obligation,
or liability of such Participant.

7.04.  Transferable SARs
       -----------------

       Section 7.03 to the contrary notwithstanding, if the Agreement provides,
an SAR, other than a Corresponding SAR that is related to an incentive stock
option, may be transferred by a Participant to any person or entity permitted
under Rule 16b-3 as in effect from time to time on such terms and conditions as
may be permitted under Rule 16b-3 as in effect from time to time. The holder of
an SAR transferred pursuant to this Section shall be bound by the same terms and
conditions that governed the SAR during the period that it was held by the
Participant; provided, however, that such transferee may not transfer the SAR
except by will or the laws of descent and distribution. In the event of any
transfer of a Corresponding SAR (by the Participant or his transferee), the
Corresponding SAR and the related Option must be transferred to the same person
or person or entity or entities.

7.05.  Exercise
       --------

       Subject to the provisions of this Plan and the applicable Agreement, an
SAR may be exercised in whole at any time or in part from time to time at such
times and

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                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

in compliance with such requirements as the Administrator shall determine;
provided, however, that a Corresponding SAR that is related to an incentive
stock option may be exercised only to the extent that the related Option is
exercisable and only when the Fair Market Value exceeds the option price of the
related Option. An SAR granted under this Plan may be exercised with respect to
any number of whole shares less than the full number for which the SAR could be
exercised. A partial exercise of an SAR shall not affect the right to exercise
the SAR from time to time in accordance with this Plan and the applicable
Agreement with respect to the remaining shares subject to the SAR. The exercise
of a Corresponding SAR shall result in the termination of the related Option to
the extent of the number of shares with respect to which the SAR is exercised.

7.06.  Change in Control
       -----------------

       Section 7.05 to the contrary notwithstanding, each outstanding SAR shall
be fully exercisable (in whole or in part at the discretion of the holder) on
and after a Control Change Date.

7.07.  Status as Employee or Service Provider
       --------------------------------------

       If the terms of any SAR provide that it may be exercised only during
employment or service or within a specified period of time after termination of
employment or service, the Administrator may decide to what extent leaves of
absence for governmental or military service, illness, temporary disability or
other reasons shall not be deemed interruptions of continuous employment or
service.

7.08.  Settlement
       ----------

       At the Administrator's discretion, the amount payable as a result of the
exercise of an SAR may be settled in cash, shares of Common Stock, or a
combination of cash and Common Stock.  No fractional share will be deliverable
upon the exercise of an SAR but a cash payment will be made in lieu thereof.

7.09.  Shareholder Rights
       ------------------

       No Participant shall, as a result of receiving an SAR, have any rights
as a shareholder of the Company or any Affiliate until the date that the SAR is
exercised and then only to the extent that the SAR is settled by the issuance of
Common Stock.

                                      -17-
<PAGE>

                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

                                 ARTICLE VIII
                                 STOCK AWARDS
                                 ------------

8.01.  Award
       -----

       In accordance with the provisions of Article IV, the Administrator will
designate each individual to whom a Stock Award is to be made and will specify
the number of shares covered by such awards; provided, however, that no
Participant may receive Stock Awards in any calendar year for more than 200,000
shares.

8.02.  Vesting
       -------

       The Administrator, on the date of the award, may prescribe that a
Participant's rights in a Stock Award shall be forfeitable or otherwise
restricted for a period of time or subject to such conditions as may be set
forth in the Agreement.

8.03.  Performance Objectives
       ----------------------

       In accordance with Section 8.02, the Administrator may prescribe that
Stock Awards will become vested or transferable or both based on objectives
stated with respect to the Company's return on equity, earnings per share, total
earnings, earnings growth, return on capital, Fair Market Value, Common Stock
price appreciation, or such other measures as may be selected by the
Administrator. If the Administrator, on the date of award, prescribes that a
Stock Award shall become nonforfeitable and transferable only upon the
attainment of performance objectives, the shares subject to such Stock Award
shall become nonforfeitable and transferable only to the extent that the
Administrator certifies that such objectives have been achieved.

8.04.  Status as Employee or Service Provider
       --------------------------------------

       In the event that the terms of any Stock Award provide that shares may
become transferable and nonforfeitable thereunder only after completion of a
specified period of employment or service, the Administrator may decide in each
case to what extent leaves of absence for governmental or military service,
illness, temporary disability, or other reasons shall not be deemed
interruptions of continuous employment or service.

                                      -18-
<PAGE>

                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

8.05.  Change in Control
       -----------------

       Sections 8.02, 8.03 and 8.04 to the contrary notwithstanding, each
outstanding Stock Award shall be transferable and nonforfeitable on and after a
Control Change Date.

8.06.  Shareholder Rights
       ------------------

       Prior to their forfeiture (in accordance with the applicable Agreement
and while the shares of Common Stock granted pursuant to the Stock Award may be
forfeited or are nontransferable), a Participant will have all rights of a
shareholder with respect to a Stock Award, including the right to receive
dividends and vote the shares; provided, however, that during such period (i) a
Participant may not sell, transfer, pledge, exchange, hypothecate, or otherwise
dispose of shares granted pursuant to a Stock Award, (ii) the Company shall
retain custody of the certificates evidencing shares granted pursuant to a Stock
Award, and (iii) the Participant will deliver to the Company a stock power,
endorsed in blank, with respect to each Stock Award. The limitations set forth
in the preceding sentence shall not apply after the shares granted under the
Stock Award are transferable and are no longer forfeitable.

8.07.  Deferred Stock Benefits
       -----------------------

       If permitted by the Administrator, and in accordance with any procedures
so established, a Participant may elect to forfeit all or a portion of a Stock
Award and thereby elect to receive a deferred sock benefit which shall be
payable in shares of Common Stock, on the terms specified by the Administrator,
in lieu of such forfeited Stock Award or portion thereof. The terms and
conditions of such an election and the deferred stock benefit shall be
determined by the Administrator.

                                   ARTICLE IX
                     ADJUSTMENT UPON CHANGE IN COMMON STOCK
                     --------------------------------------

       The maximum number of shares as to which Options, SARs, and Stock Awards
may be granted and the maximum number of shares that may be distributed as
deferred stock benefits pursuant to this Plan; the terms of outstanding Stock
Awards, Options, and SARs and undistributed deferred stock benefits; and the per
individual limitations on the number of shares of Common Stock for which
Options, SARs, and Stock Awards may be granted shall be adjusted as the
Committee shall determine to be equitably required in the event that (i) the
Company (a) effects one

                                      -19-
<PAGE>

                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

or more stock dividends, stock split-ups, subdivisions or consolidations of
shares or (b) engages in a transaction to which Section 424 of the Code applies
or, (ii) there occurs any other event which, in the judgment of the Committee
necessitates such action. Any determination made under this Article IX by the
Committee shall be final and conclusive.

       The issuance by the Company of stock of any class, or securities
convertible into stock of any class, for cash or property, or for labor or
services, either upon direct sale or upon the exercise of rights or warrants to
subscribe therefor, or upon conversion of stock or obligations of the Company
convertible into such stock or other securities, shall not affect, and no
adjustment by reason thereof shall be made with respect to, the maximum number
of shares as to which Options, SARs, and Stock Awards may be granted or the
maximum number of shares that may be distributed as deferred stock benefits; the
per individual limitations on the number of shares for which Options, SARs, and
Stock Awards may be granted; or the terms of outstanding Stock Awards, Options,
or SARs or undistributed deferred stock benefits.

       The Committee may make Stock Awards and may grant Options and SARs in
substitution for performance shares, phantom shares, stock awards, stock
options, stock appreciation rights, or similar awards held by an individual who
becomes an employee of the Company or an Affiliate in connection with a
transaction described in the first paragraph of this Article IX.
Notwithstanding any provision of the Plan (other than the limitation of Section
5.02), the terms of such substituted Stock Awards, Option or  SAR grants shall
be as the Committee, in its discretion, determines is appropriate.

                                   ARTICLE X
                      COMPLIANCE WITH LAW AND APPROVAL OF
                               REGULATORY BODIES
                               -----------------

       No Option or SAR shall be exercisable, no shares of Common Stock shall be
issued, no certificates for shares of Common Stock shall be delivered, and no
payment shall be made under this Plan except in compliance with all applicable
federal and state laws and regulations (including, without limitation,
withholding tax requirements), any listing agreement to which the Company is a
party, and the rules of all domestic stock exchanges on which the Company's
shares may be listed.  The Company shall have the right to rely on an opinion of
its counsel as to such compliance.  Any stock certificate issued to evidence
shares of Common Stock when

                                      -20-
<PAGE>

                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

a Stock Award is granted, a deferred stock benefit is distributed or for which
an Option or SAR is exercised may bear such legends and statements as the
Administrator may deem advisable to assure compliance with federal and state
laws and regulations. No Option or SAR shall be exercisable, no Stock Award
shall be granted, no shares of Common Stock shall be issued, no certificate for
shares of Common Stock shall be delivered, and no payment shall be made under
this Plan until the Company has obtained such consent or approval as the
Administrator may deem advisable from regulatory bodies having jurisdiction over
such matters.

                                      -21-
<PAGE>

                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

                                   ARTICLE XI
                               GENERAL PROVISIONS
                               ------------------

11.01. Effect on Employment and Service
       --------------------------------

       Neither the adoption of this Plan, its operation, nor any documents
describing or referring to this Plan (or any part thereof), shall confer upon
any individual any right to continue in the employ or service of the Company or
an Affiliate or in any way affect any right and power of the Company or an
Affiliate to terminate the employment or service of any individual at any time
with or without assigning a reason therefor.

11.02. Unfunded Plan
       -------------

       The Plan, insofar as it provides for grants, shall be unfunded, and the
Company shall not be required to segregate any assets that may at any time be
represented by grants under this Plan.  Any liability of the Company to any
person with respect to any grant under this Plan shall be based solely upon any
contractual obligations that may be created pursuant to this Plan.  No such
obligation of the Company shall be deemed to be secured by any pledge of, or
other encumbrance on, any property of the Company.

11.03. Rules of Construction
       ---------------------

       Headings are given to the articles and sections of this Plan solely as a
convenience to facilitate reference.  The reference to any statute, regulation,
or other provision of law shall be construed to refer to any amendment to or
successor of such provision of law.

                                  ARTICLE XII
                                   AMENDMENT
                                   ---------

       The Board may amend or terminate this Plan from time to time; provided,
however, that no amendment may become effective until shareholder approval is
obtained if the amendment increases the aggregate number of shares of Common
Stock that may be issued under the Plan.  No amendment shall, without a
Participant's consent, adversely affect any rights of such Participant under any
Stock

                                      -22-
<PAGE>

                                  eLOT, INC.
                           1999 STOCK INCENTIVE PLAN

Award, Option, or SAR, outstanding, or deferred stock benefit that is
undistributed, at the time such amendment is made.

                                  ARTICLE XIII
                                DURATION OF PLAN
                                ----------------

       No Stock Award, Option or SAR, may be granted under this Plan after
October 1, 2009. Stock Awards, Options, and SARs granted before that date, and
deferred stock benefits elected by a Participant before that date, shall remain
valid in accordance with their terms.

                                  ARTICLE XIV
                             EFFECTIVE DATE OF PLAN
                             ----------------------

       Options, SARs, and Stock Awards may be granted under this Plan upon its
adoption by the Board; provided that, unless this Plan is approved by a majority
of the votes cast by the Company's shareholders, voting either in person or by
proxy, at a duly held shareholders' meeting at which a quorum is present, no
Option or SAR shall be exercisable and no Stock Award shall be effective.

                                      -23-BLUE VALLEY BAN CORP.

                           1998 EQUITY INCENTIVE PLAN

<PAGE>

                                Table of Contents

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

   2.1 ARTICLE...............................................................1

   2.2 AWARD.................................................................1

   2.3 AWARD AGREEMENT.......................................................1

   2.4 BOARD.................................................................1

   2.5 CAUSE.................................................................1

   2.6 CODE..................................................................2

   2.7 COMMITTEE.............................................................2

   2.8 COMMON STOCK..........................................................2

   2.9 COMPANY...............................................................2

   2.10 COVERED EMPLOY.......................................................2

   2.11 DEFERRED SHARE UNITS.................................................2

   2.12 DISABILITY...........................................................2

   2.13 DISQUALIFYING DISPOSITION............................................2

   2.14 ELIGIBLE PERSON......................................................2

   2.15 EXCHANGE ACT.........................................................3

   2.16 FAIR MARKET VALUE....................................................3

   2.17 GRANT DATE...........................................................3

   2.18 GRANTEE..............................................................3

   2.19 INCENTIVE STOCK OPTION...............................................3

   2.20 INCLUDING............................................................3

   2.21 MATURE SHARES........................................................3

   2.22 MINIMUM CONSIDERATION................................................3

   2.23 OPTION...............................................................3

   2.24 OPTION PRICE.........................................................3
<PAGE>

   2.25 OPTION TERM..........................................................3

   2.26 PERFORMANCE-BASED EXCEPTION..........................................4

   2.27 PERIOD OF RESTRICTION................................................4

   2.28 PERSON...............................................................4

   2.29 PLAN.................................................................4

   2.30 RELOAD OPTION........................................................4

   2.31 REQUIRED WITHHOLDING.................................................4

   2.32 RESTRICTED SHARES....................................................4

   2.33 RULE 16B-3...........................................................4

   2.34 SEC..................................................................4

   2.35 SECTION..............................................................4

   2.36 SHARE................................................................4

   2.37 SUBSIDIARY...........................................................4

   2.38 TERMINATION OF AFFILIATION...........................................4

   2.39 10% OWNER............................................................5

Article 3. Administration....................................................5

   3.1 COMMITTEE.............................................................5

   3.2 POWERS OF COMMITTEE...................................................5

Article 4. Shares Subject to the Plan and Maximum Awards.....................6

   4.1 NUMBER OF SHARES AVAILABLE FOR GRANTS.................................6

   4.2 ADJUSTMENTS IN AUTHORIZED SHARES......................................7

Article 5. Eligibility and General Conditions of Awards......................7

   5.1 ELIGIBILITY...........................................................7

   5.2 GRANT DATE............................................................7

   5.3 MAXIMUM TERM..........................................................7

   5.4 AWARD AGREEMENT.......................................................7

   5.5 RESTRICTIONS ON SHARE TRANSFERABILITY.................................7

   5.6 TERMINATION OF AFFILIATION............................................8

   5.7 NONTRANSFERABILITY OF AWARDS..........................................9

   5.8 CANCELLATION AND RESCISSION OF AWARDS.................................9

   5.9 LOANS AND GUARANTEES..................................................9
<PAGE>

Article 6. Stock Options....................................................10

   6.1 GRANT OF OPTIONS.....................................................10

   6.2 AWARD AGREEMENT......................................................10

   6.3 OPTION PRICE.........................................................10

   6.4 GRANT OF INCENTIVE STOCK OPTIONS.....................................10

   6.5 GRANT OF RELOAD OPTIONS..............................................11

   6.6 CONDITIONS ON RELOAD OPTIONS.........................................12

   6.7 PAYMENT..............................................................12

Article 7. Restricted Shares................................................13

   7.1 GRANT OF RESTRICTED SHARES...........................................13

   7.2 AWARD AGREEMENT......................................................13

   7.3 CONSIDERATION........................................................13

   7.4 EFFECT OF FORFEITURE.................................................13

   7.5 ESCROW; LEGENDS......................................................13

Article 8. Beneficiary Designation..........................................13

Article 9. Deferred Share Units/Deferrals...................................14

   9.1 DEFERRED SHARE UNITS.................................................14

   9.2 DEFERRALS............................................................14

Article 10. Rights of Employees/Directors...................................14

   10.1 EMPLOYMENT..........................................................14

   10.2 PARTICIPATION.......................................................14

Article 11. Amendment, Modification, and Termination........................14

   11.1 AMENDMENT, MODIFICATION, AND TERMINATION............................14

   11.2 ADJUSTMENT OF AWARDS UPON THE OCCURRENCE OF CERTAIN UNUSUAL OR .......

      NONRECURRING EVENTS...................................................14

   11.3 AWARDS PREVIOUSLY GRANTED...........................................15

Article 12. Withholding.....................................................15

   12.1 WITHHOLDING.........................................................15

   12.2 NOTIFICATION UNDER CODE SECTION 83(B)...............................16

Article 13. Successors......................................................16

<PAGE>

Article 14. Additional Provisions...........................................16

   14.1 GENDER AND NUMBER...................................................16
   14.2 SEVERABILITY........................................................16

   14.3 REQUIREMENTS OF LAW.................................................16

   14.4 SECURITIES LAW COMPLIANCE...........................................17

   14.5 NO RIGHTS AS A STOCKHOLDER..........................................17

   14.6 NATURE OF PAYMENT...................................................17

   14.7 GOVERNING LAW.......................................................18

EXHIBIT A..................................................................19

Sample STOCK OPTION AGREEMENT..............................................21
<PAGE>
                              Blue Valley Ban Corp.
                           1998 Equity Incentive Plan

Article 1. Establishment, Effective Date, Objectives and Duration

     1.1 Establishment of the Plan. Blue Valley Ban Corp., a Kansas corporation
(the "Company"), hereby establishes an incentive compensation plan to be known
as the "Blue Valley Ban Corp. 1998 Equity Incentive Plan" (the "Plan"). The Plan
has been adopted by the Board of Directors of the Company (the "Board") and
approved by the shareholders of the Company. The Plan shall be effective as of
April 9 , 1998 (the "Effective Date").

     1.2 Objectives of the Plan. The Plan is intended to allow selected
employees and directors 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 directors and retaining existing employees and directors. 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 employees
and directors with an incentive for excellence in individual performance; and to
promote teamwork among employees and directors.

     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 11 hereof, until all Shares subject to
it shall have been purchased or acquired according to the Plan's provisions.
However, in no event may an Incentive Stock Option be granted under the Plan on
or after the date 10 years following the earlier of (i) the date the Plan was
adopted and (ii) the date the Plan was approved by the shareholders of the
Company.

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 Incentive Stock Options), Restricted
Shares or Deferred Share Units granted under the Plan.

     2.3 "Award Agreement" means the written agreement by which an Award shall
be evidenced.

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

     2.5 "Cause" means, unless otherwise defined in an Award Agreement, any one
or more of the following, as determined by the Committee:
<PAGE>

               (i) a Grantee's commission of a crime which, in the judgment of
          the Committee, is likely to result in injury to the Company or a
          Subsidiary;

               (ii) the material violation by the Grantee of written policies of
          the Company or a Subsidiary;

               (iii) the habitual neglect by the Grantee in the performance of
          his or her duties to the Company or a Subsidiary; or

               (iv) action or inaction by the Grantee in connection with his or
          her duties to the Company or a Subsidiary resulting, in the judgment
          of the Committee, in a material injury to the Company or a Subsidiary.

     2.6 "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.

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

     2.8 "Common Stock" means the common stock, $10.00 par Value, of the
Company.

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

     2.10 "Covered Employ" means a Grantee who, as of the date that the value of
an Award is recognizable as income, is one of the group of "covered employees,"
within the meaning of Code Section 162(m).

     2.11 "Deferred Share Units" means units granted under Section 9.1 of the
Plan.

     2.12 "Disability" means, unless otherwise defined in an Award Agreement,
for purposes of the exercise of an Incentive Stock Option after Termination of
Affiliation, a disability within the meaning of Section 22(e)(3) of the Code,
and for all other purposes, a mental or physical condition which, in the
judgment of the Committee, renders a Grantee unable to perform any of the
principal job responsibilities which such Grantee held or the tasks to which
such Grantee was assigned at the time the disability was incurred, and which
condition is expected to be permanent or for an indefinite duration exceeding
two years.

     2.13 "Disqualifying Disposition" has the meaning set forth in Section 6.4.

     2.14 "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 director of the Company or any Subsidiary.

                                       2
<PAGE>

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

     2.16 "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, unless otherwise determined in the good faith discretion
of the Committee, as of any date, (i) the closing price on the date of
determination on the New York Stock Exchange (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
closing price of the Shares on such other national exchange on which the Shares
are principally traded or as reported by the National Market System, 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 as reported by the
National Quotation Bureau Incorporated or similar organizations; or (iii) in the
event that there shall be no public market for the Shares, the fair market value
of the Shares as determined (which determination shall be conclusive) in good
faith by the Committee.

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

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

     2.19 "Incentive Stock Option" means an option granted under Article 6 of
the Plan that is intended to meet the requirements of Section 422 of the Code or
any successor provisions thereto.

     2.20 "including" or "includes" means "including, without limitation," or
"includes, without limitation", respectively.

     2.21 "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.

     2.22 "Minimum Consideration" means $.01 per Share or such other amount that
is from time to time considered to be capital under applicable law.

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

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

     2.25 "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, in the discretion of the Committee
and consistent with the provisions of the Plan, be extended from time to time
prior to the expiration date of such Option then in effect.

                                       3
<PAGE>

     2.26 "Performance-Based Exception" means the performance-based exception
from the tax deductibility limitations of Code Section 162(m).

     2.27 "Period of Restriction" means the period during which the transfer of
Restricted Shares is limited in some way (the length of the period being based
on the passage of time, the achievement of performance goals, or upon the
occurrence of other events as determined by the Committee, in its discretion),
and the Shares are subject to a substantial risk of forfeiture, as provided in
Article 7.

     2.28 "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.

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

     2.30 "Reload Option" has the meaning set forth in Section 6.5.

     2.31 "Required Withholding" has the meaning set forth in Article 12.

     2.32 "Restricted Shares" means Shares that are subject to forfeiture if the
Grantee does not satisfy the conditions, if any, specified in the Award
Agreement applicable to such Shares.

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

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

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

     2.36 "Share" means a share of Common Stock.

     2.37 "Subsidiary" means, for purposes of grants of Incentive Stock Options,
a corporation as defined in Section 424(f) of the Code (with the Company being
treated as the employer corporation for purposes of this definition) and, for
all other purposes, a United States or foreign corporation with respect to which
the Company owns, directly or indirectly, 50% or more of the thenoutstanding
common stock.

     2.38 "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 director, or with respect to an
individual who is an employee or director of a Subsidiary, the first day on
which the Company no longer owns, directly or indirectly, voting securities
possessing at least 50% of the combined voting power of the thenoutstanding
securities entitled to vote generally in the election of directors of such
Subsidiary.

                                       4
<PAGE>

     2.39 "10% Owner" means a person who owns capital stock (including stock
treated as owned under Section 424(d) of the Code) possessing more than 10% of
the total combined voting power of all classes of capital stock of the Company
or any Subsidiary.

Article 3.  Administration

     3.1 Committee. Subject to Article 11, and to Section 3.2, the Plan shall be
administered by the Board, or a committee appointed by the Board to administer
the Plan. Any references herein to "Committee" are references to the Board, or a
committee established by the Board, as applicable. To the extent the Board
considers it desirable to comply with or qualify under Rule 16b-3 or meet the
Performance-Based Exception, the Committee shall consist of two or more
directors of the Company, all of whom qualify as "outside directors" as defined
for purposes of the regulations under Code Section 162(m) and "non-employee
directors" within the meaning of Rule 16b-3. The number of members of the
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 and the Performance-Based Exception as then in effect.

     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:

               (i) to determine when, to whom and in what types and amounts
          Awards should be granted and the terms and conditions applicable to
          each Award, 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;

               (ii) to determine the amount, if any, that a Grantee shall pay
          for Restricted Shares, whether to permit or require the payment of
          cash dividends thereon to be deferred and the terms related thereto,
          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;

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

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

               (v) 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

                                       5
<PAGE>

          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;

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

               (vii) 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 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;

               (viii) subject to Sections 1.3 and 5.3, to extend the time during
          which any Award or group of Awards may be exercised;

               (ix) to make such adjustments or modifications to Awards to
          Grantees working outside the United States as are advisable to fulfill
          the purposes of the Plan;

               (x) 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

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

     The determination of the Committee on all matters relating to the Plan or
any Award Agreement shall be final, conclusive and binding on all Persons. No
member of the Committee shall be liable for any action or determination made in
good faith with respect to the Plan or any Award.

Article 4.  Shares Subject to the Plan and Maximum Awards

     4.1 Number of Shares Available for Grants. Subject to adjustment as
provided in Section 4.2, the number of Shares hereby reserved for issuance under
the Plan shall be 50,000, and the number of Shares for which Awards may be
granted to any Grantee in any calendar year shall not exceed 15,000. If
anyShares subject to an Award granted hereunder are forfeited or such Award
otherwise terminates without the issuance of such Shares or of other
consideration in lieu of such Shares, the Shares subject to such Award, to the
extent of any such forfeiture or termination shall again be available for grant
under the Plan. If any Shares subject to an Award granted hereunder are
withheld, applied as payment, or sold and the proceeds thereof applied as
payment in connection with the exercise of an Award or the withholding or
payment of taxes related thereto, such Shares, to the extent of any such
withholding or payment, shall again be available for grant under the Plan. The
Committee shall from time to time determine the appropriate methodology for
calculating the number of Shares issued pursuant to the Plan. Shares issued
pursuant to the Plan may be treasury Shares or newly issued Shares.

                                       6
<PAGE>
     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 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) with respect to which Awards may be granted, (ii) the number and type
of Shares (or other securities or property) 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; provided, in each case that with respect to Awards of Incentive Stock
Options no such adjustment shall be authorized to the extent that such authority
would cause the Plan to violate Section 422(b)(1) of the Code or any successor
provision thereto; and provided further, that the number of Shares subject to
any Award denominated in Shares shall always be a whole number.

Article 5.  Eligibility and General Conditions of Awards

     5.1 Eligibility. The Committee may in its discretion 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 in advance by the
Committee.

     5.3 Maximum Term. Any provision of the Plan to the contrary
notwithstanding, the Option Term or other period during which an Award may be
outstanding shall under no circumstances extend more than 10 years after the
Grant Date, and shall be subject to earlier termination as herein provided.

     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 impose 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. Except as otherwise provided by the Committee in an Award
Agreement, all Shares acquired pursuant to the exercise or vesting of an Award
shall be subject to (i) the option right by the Company to purchase such Shares
set forth in Article V of the Company's Articles of Incorporation (as the same
may be amended from time to time), (ii) the right of the Company to purchase,
and to require a Grantee to sell. to the Company, such Shares at any time within
sixty (60) days following such Grantee's Termination of Affiliation (or, if
later, following the Grantee's acquisition of such Shares pursuant to exercise
or vesting of an Award) at a purchase price

                                       7
<PAGE>

payable in cash equal to the Fair Market Value of the shares on the date of
purchase, and (iii) in the event of a transaction pursuant to which the holders
of more than 50% of the then-outstanding Shares agree to sell their Shares to
any Person, the right of the Company to require the Grantee to sell to such
Person, on the same terms and conditions applicable to the sale by such other
shareholders, any or, all Shares acquired pursuant to the exercise or vesting of
an Award.

     5.6 Termination of Affiliation. Except as otherwise provided by the
Committee in an Award Agreement, the extent to which the Grantee shall have the
right to 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. Except as otherwise provided by the Committee in an
     Award Agreement, if a Grantee has a Termination of Affiliation for Cause,
     (i) the Grantee's Restricted Shares and Deferred Share Units that are
     forfeitable shall thereupon be forfeited, subject to the provisions of
     Section 7.4 regarding repayment of certain amounts to the Grantee; and (ii)
     any unexercised Option shall terminate effective immediately upon such
     Termination of Affiliation.

          (b) On Account of Death. Except as otherwise provided by the Committee
     in an Award Agreement, if a Grantee has a Termination of Affiliation on
     account of death, then:

               (i) the Grantee's Restricted Shares and Deferred Share Units that
          were forfeitable shall thereupon become nonforfeitable; and .

               (ii) any unexercised Option, whether or not exercisable on the
          date of such Termination of Affiliation, may be exercised, in whole or
          in part, within the first 12 months after such Termination of
          Affiliation (but only during the Option Term) by (A) the Grantee's
          personal representative or the person to whom the Option is
          transferred by will or the applicable laws of descent and
          distribution, or (B) the Grantee's beneficiary designated in
          accordance with Article 8.

          (c) On Account of Disability. Except as otherwise provided by the
     Committee in an Award Agreement, if a Grantee has a Termination of
     Affiliation on account of Disability, then:

               (i) the Grantee's Restricted Shares and Deferred Share Units that
          were forfeitable shall thereupon become nonforfeitable; and

               (ii) any unexercised Option, whether or not exercisable on the
          date of such Termination of Affiliation, may be exercised, in whole or
          in part, within the first 12 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 is transferred by will or the applicable
          laws of descent and distribution, or (B) the Grantee's beneficiary
          designated in accordance with Article 8.

                                       8
<PAGE>

          (d) Any Other Reason. Except as otherwise provided by the Committee in
     an Award Agreement, 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 Share Units, to
          the extent forfeitable on the date of the Grantee's Termination of
          Affiliation, shall be forfeited on such date; and

               (ii) any unexercised Option, to the extent exercisable
          immediately before the Grantee's Termination of Affiliation, may be
          exercised in whole or in part, not later than 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 is transferred by will
          or the applicable laws of descent and distribution, or (B) the
          Grantee's beneficiary designated in accordance with Article 8.

     5.7 Nontransferability of Awards.

          (a) 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
     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 as amended ("ERISA"), or the rules
     thereunder.

          (b) 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.

     5.8 Cancellation and Rescission of Awards. Unless the Award Agreement
specifies otherwise, the Committee may cancel, rescind, suspend, withhold, or
otherwise limit or restrict any unexercised Award at any Lime if the Grantee is
not in compliance with all applicable provisions of the Award Agreement and the
Plan or if the Grantee has a Termination of Affiliation for Cause.

     5.9 Loans and Guarantees. The Committee may in its discretion, and subject
to applicable law, (i) allow a Grantee to defer payment to the Company of all or
any portion of the Option Price of an Option, (ii) allow a Grantee to defer
payment to the Company of all or any portion of the purchase price of Restricted
Shares, or (iii) cause the Company to loan to the Grantee all or any portion of
any taxes associated with the exercise, nonforfeitability of, or payment of
benefits in connection with, an Award, or cause the Company to guarantee a loan
from a third party to the Grantee, in an amount equal to all or any portion of
such Option Price, purchase price of Restricted Shares or any related taxes. Any
such payment deferral, loan

                                       9
<PAGE>

or guarantee by the Company shall be on such terms and conditions as the
Committee may determine.

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.

     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 in the sole discretion of the Committee, and may be less than, equal
to, or more than 100% of the Fair Market Value of a Share on the Grant Date;
provided, however, that the Option Price of an Incentive Stock Option shall be
at least equal to 100% of the Fair Market Value of a Share on the Grant Date.

     6.4 Grant of Incentive Stock Options. At the time of the grant of any
Option, the Committee may in its discretion designate that such Option shall be
made subject to additional restrictions to permit it to qualify as an "incentive
stock option" under the requirements of Section 422 of the Code. Any Option
designated as an Incentive Stock Option:

               (i) shall, if granted to a 10% Owner, have an Option Price not
          less than 110% of the Fair Market Value of a Share on its Grant Date;

               (ii) shall be for a period of not more than 10 years (five years
          in the case of an Incentive Stock Option granted to a 10% Owner) from
          its Grant Date, and shall be subject to earlier termination as
          provided herein or in the applicable Award Agreement;

               (iii) shall not have an aggregate Fair Market Value (as of the
          Grant Date of each Incentive Stock Option) of the Shares with respect
          to which Incentive Stock Options (whether granted under the Plan or
          any other stock option plan of the Grantee's employer or any parent or
          Subsidiary thereof ("Other Plans")) are exercisable for the first time
          by such Grantee during any calendar year, determined in accordance
          with the provisions of Section 422 of the Code, which exceeds $100,000
          (the 1100,000 Limit");

               (iv) shall, if the aggregate Fair Market Value of the Shares
          (determined on the Grant Date) with respect to the portion of such
          grant which is exercisable for the first time during any calendar year
          ("Current Grant") and all Incentive Stock Options previously granted
          under the Plan and any Other Plans which are exercisable for the first
          time during a calendar year ("Prior Grants") would exceed the $100,000
          Limit, be exercisable as follows:

                                       10
<PAGE>

                    (A) the portion of the Current Grant which would, when added
               to any Prior Grants, be exercisable with respect to Shares which
               would have an aggregate Fair Market Value (determined as of the
               respective Grant Date for such options) in excess of tile
               $100,000 Limit shall, notwithstanding the terms of the Current
               Grant, be exercisable for the first time by the Grantee in the
               first subsequent calendar year or years in which it could be
               exercisable for the first time by the Grantee when added to all
               Prior Grants without exceeding the $100,000 Limit; and

                    (B) if, viewed as of the date of the Current Grant, any
               portion of a Current Grant could not be exercised under the
               preceding provisions of this Section during any calendar year
               commencing with the calendar yew in which it is first exercisable
               through and including the last calendar you in which it may by
               its terms be exercised, such portion of the Current Grant shall
               not be an Incentive Stock Option, but shall be exercisable as a
               separate option at such date or dates as are provided in the
               Current Grant;

               (v) shall be granted within 10 years from the earlier of the date
          the Plan is adopted or the date the Plan is approved by the
          stockholders of the Company;

               (vi) shall require the Grantee to notify the Committee of any
          disposition of any Shares issued pursuant to the exercise of the
          Incentive Stock Option under the circumstances described in Section
          421(b) of the Code (relating to certain disqualifying dispositions)
          (any such circumstance, a "Disqualifying Disposition"), within 10 days
          of such Disqualifying Disposition; and

               (vii) shall by its terms not be assignable or transferable other
          than by will or the laws of descent and distribution and may be
          exercised, during the Grantee's lifetime, only by the Grantee;
          PROVIDED, HOWEVER, that the Grantee may, to the extent provided in the
          Plan in any manner specified by the Committee, designate in writing a
          beneficiary to exercise his or her Incentive Stock, Option after the
          Grantee's death.

     Notwithstanding the foregoing and Section 3.2(v), the Committee may,
without the consent of the Grantee, at any time before the exercise of an Option
(whether or not an Incentive Stock Option), take any action necessary to prevent
such Option from being treated as an Incentive Stock Option.

     6.5 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, (ii) exercises such Option for Shares which
have a Fair Market Value equal to not less than 120% of the Option Price for
such Option ("Exercised Option") and (iii) satisfies the Option Price or
Required Withholding applicable thereto with Shares 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 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 or local tax withholding
requirements; provided that no Reload Option shall be granted in connection with
the exercise of an Option that has been transferred by the initial Grantee
thereof.

                                       11
<PAGE>

     6.6 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 6.6(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.

     6.7 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 any one or more of the
following means subject to the approval of the Committee:

               (A) cash, personal check or wire transfer;

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

               (C) with the approval of the Committee, 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;

               (D) subject to applicable law, pursuant to procedures previously
          approved by the Company, 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; or

               (E) in the discretion of the Committee, payment may also be made
          in accordance with Section 5.9.

The Committee may in its discretion specify that, if any Restricted Shares
("Tendered Restricted Shares") are used to pay the Option Price, (x) all the
Shares acquired on exercise of the Option shall be subject to the same
restrictions as the Tendered Restricted Shares, determined as of the date of
exercise of the Option, or (y) a number of Shares acquired on exercise of the
Option

                                       12
<PAGE>
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.  Restricted Shares

     7.1 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.

     7.2 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 and/or restrictions on any
Restricted Shares granted pursuant to the Plan as it may deem advisable,
including restrictions based upon the achievement of specific performance goals
(Company-wide, divisional, and/or individual), time-based restrictions on
vesting following the attainment of the performance goals, and/or restrictions
under applicable securities laws. The Committee may also grant Restricted Shares
without any performance, time-based or other restrictions which shall be
nonforfeitable upon grant.

     7.3 Consideration. The Committee shall determine the amount, if any, that a
Grantee shall pay for Restricted Shares, subject to the following sentence.
Except with respect to Restricted Shares that are treasury shares, for which no
payment need be required, the Committee shall require the Grantee to pay at
least the Minimum Consideration for each Restricted Share. 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.

     7.4 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 such Restricted Shares 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.

     7.5 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.

Article 8.  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

                                       13
<PAGE>

Plan is to be paid in case of his or her death before he or she receives any or
ail 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 9.  Deferred Share Units/Deferrals

     9.1 Deferred Share Units. Subject to the terms and provisions of the Plan,
Deferred Share Units 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. Except as otherwise provided in an Award Agreement, each
Deferred Share Unit shall have an initial value equal to the Fair Market Value
of a Share on the date of grant. The Committee may impose such conditions and/or
restrictions on any Deferred Share Units granted pursuant to the Plan as it may
deem advisable, including time-vesting restrictions and deferred payment
features. Except as otherwise provided in an Award Agreement, payment to the
Grantee of the value or increase in value, as applicable, of Deferred Share
Units shall be made upon the Grantee's Termination of Affiliation.

     9.2 Deferrals. The Committee may permit or require a Grantee to defer
receipt of the delivery of Shares that would otherwise be due by virtue of the
exercise of an Option or the lapse or waiver of restrictions with respect to
Restricted Shares. If any such deferral is required or permitted, the Committee
shall, in its sole discretion, establish rules and procedures for such
deferrals. Except as otherwise provided in an Award Agreement, any Shares that
are subject to such deferral shall be delivered to the Grantee upon the earlier
of (i) the first day on which Shares are traded in a public market or (ii) the
Grantee's Termination of Affiliation.

Article 10. Rights of Employees/Directors

     10.1 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
directorship at any time, nor confer upon any Grantee the right to continue in
the employ or as a director of the Company.

     10.2 Participation. No employee or director shall have the right to be
selected to receive an Award under this Plan, or, having been so selected, to be
selected to receive a future Award.

Article 11. Amendment, Modification, and Termination

     11.1 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.

     11.2 Adjustment of Awards Upon the Occurrence of Certain Unusual or
Nonrecurring Events. The Committee may make adjustments in the terms and
conditions of, and the criteria included in, 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

                                       14
<PAGE>

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; provided that no such adjustment shall be
authorized to the extent that such authority would be inconsistent with the
Plan's meeting the requirements of the Performance-Based Exception.

     11.3 Awards Previously Granted. Notwithstanding any other provision of the
Plan to the contrary, 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 12. Withholding

     12.1 Withholding

          (a) Mandatory Tax Withholding.

               (1) 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 (i) that the
          Grantee remit an amount in cash, or in the Committee's discretion,
          Mature Shares, sufficient to satisfy all federal, state, and local tax
          withholding requirements related thereto ("Required Withholding"),
          (ii) the withholding of such Required Withholding from compensation
          otherwise due to the Grantee or from any Shares due to the Grantee
          under the Plan or (iii) any combination of the foregoing.

               (2) Any Grantee who makes a Disqualifying Disposition or 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.

          (b) Elective Share Withholding.

               (1) Subject to the following subsection, a Grantee may elect the
          withholding ("Share Withholding") by the Company of a portion of the
          Shares otherwise deliverable to such Grantee upon the exercise of an
          Award or upon Restricted Shares becoming non-forfeitable (each, a
          "Taxable Event") having a Fair Market Value equal to (i) the minimum
          amount necessary to satisfy Required Withholding liability
          attributable to the Taxable Event; or (ii) 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.

                                       15
<PAGE>

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

                    (i) 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;

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

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

     12.2 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, prohibit a Grantee from making the
election described above.

Article 13. 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
and/or assets of the Company.

Article 14. Additional Provisions

     14.1 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.

     14.2 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 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.

     14.3 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 national securities
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
deliver 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.

                                       16
<PAGE>

     14.4 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 put on any such certificates
     to make appropriate reference to such restrictions. If so requested by the
     Company, the Grantee shall make a written representation to the Company
     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 1993, as amended, and any applicable state securities
     law or unless he or she shall have furnished to the Company, in form and
     substance satisfactory to the Company, that such registration is not
     required.

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

     14.5 No Rights as a Stockholder. A Grantee shall not have any rights as a
stockholder of the Company 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. At the time of a grant of Restricted Shares, the
Committee may require the payment of cash dividends thereon to be deferred and,
if the Committee so determines, reinvested in additional Restricted Shares.
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 in its discretion provide for payment of interest on deferred cash
dividends.

     14.6 Nature of Payment. 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
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     14.7 Governing Law. The Plan, and all agreements hereunder, shall be
construed in accordance with and governed by the laws of the State of Kansas,
other than its laws respecting choice of law.

                                       18

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