Document:

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                                                               HECO Exhibit 10.2
                                                               -----------------

[MECO letterhead]
                                                                          CONT 9
                                                                            IC/G

                                    December 27, 1999

CERTIFIED - RETURN RECEIPT

Mr. G. Stephen Holaday
Plantation General Manager
Hawaiian Commercial & Sugar Company
P. O. Box 266
Puunene, HI 96784

Dear Mr. Holaday:

     Subject: Termination Notice for Amended and Restated Power Purchase
     Agreement between A&B Hawaii, Inc., through its division, Hawaiian
     Commercial & Sugar Company ("HC&S"), and Maui Electric Company, Limited
     ("MECO"), dated November 30, 1989 (the "Amended PPA"), as amended by the
     First Amendment to Amended and Restated Power Purchase Agreement, dated
     November 1, 1990 ("Amendment No. 1") (which are together referred to as the
     "PPA")

I would like to thank you and John Krieg for our recent discussion on the long
term generation needs for the island of Maui and the future role that HC&S may
play in meeting those needs.  MECO and HC&S have had a long term, mutually
beneficial relationship.  I fully expect that we will be able to continue this
relationship as our companies evolve to meet the challenges of the changing
business environment on Maui.

Due to these changing business conditions, it is appropriate to review the terms
and conditions under which MECO purchases electrical capacity and energy from
HC&S. Consequently, pursuant to Article XVII titled TERM OF AGREEMENT of the
subject  PPA; MECO hereby provides written notice of termination of said PPA.
The termination will be effective at the end of the day on December 31, 2001./1/
Mr. G. Stephen Holaday

____________________

     /1/ Pursuant to Article XVII of the Amended PPA, the PPA "shall continue in
effect through December 31, 1999, and from year to year thereafter, subject to
termination on or after January 1, 2000, on not less than two (2) years' prior
written notice by either party." As was provided in letter agreements dated
December 11, 1997 and October 22, 1998, no notice of termination was given prior
to the end of 1997 or 1998. As a result, the PPA remains in full force and
effect through December 31, 2001, and from year to year thereafter, subject to
termination on or after January 1, 2002, on not less than two (2) years' written
notice by either party. This letter provides such two (2) years' written notice
of termination.
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December 27, 1999
Page 2

I am optimistic that we will be able to negotiate a new, mutually acceptable
Power Purchase Agreement by December 2000.  This would provide time to obtain
approval from the Public Utilities Commission of the new PPA prior to the
expiration of the existing agreement.  The Hawaiian Electric Company, Inc.
("HECO") Power Purchase Division will lead the negotiations for MECO.  Dan Ching
is the Director of this group, and he is available to begin the negotiation
process at your earliest convenience.  Mr. Ching may be contacted at 808/543-
4340.

Again, I remain optimistic about our ability to complete successfully and in a
timely manner the negotiations for a new PPA and look forward to continuation of
our relationship.

                                   Sincerely,

                                   /s/ William S. BonnetEXHIBIT 4.1
                                   -----------

                              GENETIC VECTORS, INC.

                               1996 INCENTIVE PLAN

                                    ARTICLE 1

                        PURPOSE AND ADOPTION OF THE PLAN

         1.1 PURPOSE.  The purpose of the Genetic  Vectors,  Inc. 1996 Incentive
Plan (the  "PLAN") is to increase  the  proprietary  and vested  interest of the
Non-Employee Directors of Genetic Vectors, Inc. in the growth and performance of
Genetic  Vectors,  Inc., to assist in attracting and retaining  highly competent
employees,  to act as an incentive in motivating selected officers and other key
employees of Genetic Vectors,  Inc. and its  Subsidiaries,  to achieve long-term
corporate  objectives  and  to  enable  cash  incentive  awards  to  qualify  as
performance-based  for purposes of the tax deduction  limitations  under Section
162(m) of the Code.

         1.2  ADOPTION  AND  TERM.  The Plan has been  approved  by the Board of
Directors    of   Genetic    Vectors,    Inc.,    to   be    effective   as   of
___________________________  (the "EFFECTIVE DATE"); PROVIDED,  HOWEVER, that no
Incentive  Stock Option may be granted  hereunder  unless and until the Plan has
been  approved by the  shareholders  of the Company  within 12 months  before or
after the date the Plan is adopted by the Board. The Plan shall remain in effect
until terminated by action of the Board;  PROVIDED,  HOWEVER,  that no Incentive
Stock  Option  may be  granted  hereunder  after  the tenth  anniversary  of the
Effective  Date and the  provisions  of Articles 7, 8, 9 and 10 with  respect to
performance-based awards to "covered employees" under Section 162(m) of the Code
(as defined  herein) shall expire as of the fifth  anniversary  of the Effective
Date.

                                    ARTICLE 2

                                   DEFINITIONS

         For  the  purpose  of this  Plan,  capitalized  terms  shall  have  the
following meanings:

         2.1 AWARD means any one or a combination of Non-Qualified Stock Options
or Incentive  Stock Options  described in Article 6, Stock  Appreciation  Rights
described in Article 6, Restricted  Shares  described in Article 7,  Performance
Awards  described in Article 8, Awards of cash or any other Award made under the
terms of the Plan.

         2.2 AWARD AGREEMENT means a written agreement between the Company and a
Participant  or a  written  acknowledgment  from the  Company  to a  Participant
specifically  setting  forth the terms and  conditions of an Award granted under
the Plan.

         2.3 AWARD PERIOD  means,  with respect to an Award,  the period of time
set forth in the Award Agreement during which specified target performance goals
must be achieved or other  conditions  set forth in the Award  Agreement must be
satisfied.

         2.4 BENEFICIARY means an individual, trust or estate who or which, by a
written designation of the Participant filed with the Company or by operation of

                                      -1-
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law,  succeeds to the rights and obligations of the  Participant  under the Plan
and the Award Agreement upon the Participant's death.

         2.5 BOARD means the full Board of Directors of the Company.

         2.6 CHANGE IN CONTROL means,  and shall be deemed to have occurred upon
the occurrence of, any one of the following events:

                  a. The  acquisition  in one or more  transactions,  other than
from the  Company,  by any  individual,  entity or group  (within the meaning of
Section  13(d)(3) or  14(d)(2)  of the  Exchange  Act) of  beneficial  ownership
(within  the  meaning of Rule 13d-3  promulgated  under the  Exchange  Act) of a
number of  Company  Voting  Securities  in excess of 15% of the  Company  Voting
Securities unless such acquisition has been approved by the Board;

                  b. Any  election of persons to the Board that causes  majority
of the Board to consist of persons  other than (i) persons  who were  members of
the  Board on the  Effective  Date  and (ii)  persons  who  were  nominated  for
elections  as  members  of the  Board at a time  when a  majority  of the  Board
consisted  of  persons  who were  members  of the Board on the  Effective  Date;
PROVIDED,  HOWEVER, that any person nominated for election by a Board at least a
majority of whom constituted  persons described in clauses (i) and/or (ii) or by
persons who were themselves  nominated by such Board shall, for this purpose, be
deemed to have been nominated by a Board composed of persons described in clause
(i);

                  c. Approval  by   the   shareholders   of  the  Company  of  a
reorganization,  merger or consolidation, unless, following such reorganization,
merger  or  consolidation,  all or  substantially  all of  the  individuals  and
entities who were the respective  beneficial  owners of the  Outstanding  Common
Stock and Company Voting Securities  immediately  prior to such  reorganization,
merger or consolidation,  following such reorganization, merger or consolidation
beneficially own, directly or indirectly,  more than 80% of,  respectively,  the
then  outstanding  shares of common stock and the  combined  voting power of the
then outstanding voting securities entitled to vote generally in the election of
directors or  trustees,  as the case may be, of the entity  resulting  from such
reorganization,  merger or consolidation in substantially the same proportion as
their  ownership of the Outstanding  Common Stock and Company Voting  Securities
immediately prior to such reorganization,  merger or consolidation,  as the case
may be; or

                  d. Approval  by   the  shareholders  of the  Company  of (i) a
complete  liquidation  or  dissolution  of the  Company  or (ii) a sale or other
disposition of all or substantially all the assets of the Company.

         2.7 CODE  means  the   Internal  Revenue  Code  of  1986,  as  amended.
References  to a  section  of the  Code  shall  include  that  section  and  any
comparable   section  or  sections  of  any  future   legislation  that  amends,
supplements or supersedes such section.

         2.8 COMMITTEE  means a compensation  committee of the Board which shall
be comprised of 2 or more  members,  all of which shall be  Outside/Non-Employee
Directors.

         2.9 COMPANY means Genetic Vectors, Inc., a Florida corporation, and its
successors.

         2.10 COMMON STOCK means  Common  Stock of the Company,  par value $.001
per share.

                                      -2-
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         2.11 COMPANY VOTING  SECURITIES  means the combined voting power of all
outstanding  voting  securities of the Company entitled to vote generally in the
election of directors to the Board.

         2.12 DATE OF GRANT means the date designated by the Plan  Administrator
as the date as of which it grants an Award,  which shall not be earlier than the
date on which the Plan Administrator approves the granting of such Award.

         2.13 EXCHANGE  ACT  means  the  Securities  Exchange  Act  of 1934,  as
amended.

         2.14 EXERCISE PRICE means, with respect to a Stock Appreciation  Right,
the amount established by the Plan Administrator in the Award Agreement which is
to be subtracted  from the Fair Market Value on the date of exercise in order to
determine  the amount of the payment to be made to the  Participant,  as further
described in Section 6.2.b.

         2.15 FAIR MARKET VALUE means,  on any date, the average of the high and
low quoted  sales prices of a share of Common  Stock,  as reported on the Nasdaq
SmallCap Market or any national securities exchange on which the Common Stock is
then listed,  as published in the Wall Street Journal or any other  newspaper of
general  circulation,  on such date or, if there were no sales on such date,  on
the last date  preceding  such date on which a sale was reported.  If the Common
Stock is not  listed on the  Nasdaq  SmallCap  Market or a  national  securities
exchange,  then Fair Market Value shall be  determined in good faith by the Plan
Administrator  without regard to any restriction  other than a restriction which
by its terms will never lapse.

         2.16 INCENTIVE  STOCK OPTION means a stock option within the meaning of
Section 422 of the Code.

         2.17 MERGER means any merger, reorganization,  consolidation, exchange,
transfer of assets or other  transaction  having  similar  effect  involving the
Company.

         2.18 NON-EMPLOYEE  DIRECTOR  means  a member of the Board who i) is not
currently  an  officer or  otherwise  employed  by the  Company or a parent or a
subsidiary  of the  Company,  ii)  does not  receive  compensation  directly  or
indirectly  from the  Company or a parent or a  subsidiary  of the  Company  for
services  rendered as a consultant or in any capacity  other than as a director,
except for an amount for which disclosure would not be required pursuant to Item
404(a)  of  Regulation  S-K,  iii) does not  possess  an  interest  in any other
transaction for which  disclosure  would be required  pursuant to Item 404(a) of
Regulation  S-K,  and iv) is not  engaged in a business  relationship  for which
disclosure would be required pursuant to Item 404(b) of Regulation S-K.

         2.19 NON-EMPLOYEE  DIRECTOR  OPTION means  a stock option  granted to a
Non-Employee Director in accordance with Section 6.1.a.

         2.20 NON-QUALIFIED  STOCK  OPTION  means a stock option which is not an
Incentive Stock Option.

         2.21 OPTIONS means all Non-Qualified  Stock Options and Incentive Stock
Options granted at any time under the Plan.

         2.22 OUTSIDE  DIRECTOR  means a member of the Board who qualifies as an

                                      -3-
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"outside director" for purposes of Section 162(m) of the Code.

         2.23 OUTSIDE/NON-EMPLOYEE  DIRECTOR  means a member  of  the  Board who
qualifies as both an Outside Director and a Non-Employee Director.

         2.24 OUTSTANDING  COMMON  STOCK  means,  at  any time,  the  issued and
outstanding shares of Common Stock.

         2.25 PARTICIPANT  means  a person  designated to receive an Award under
the Plan in accordance with Article 5.

         2.26 PERFORMANCE AWARDS means Awards granted in accordance with Article
8.

         2.27 PLAN  means the  Genetic  Vectors,  Inc.  1996  Incentive  Plan as
described herein, as the same may be amended from time to time.

         2.28 PLAN  ADMINISTRATOR  means  either  the Board or such  committees,
officers and/or employees of the Company that may be so designated under Article
3.

         2.29 PURCHASE  PRICE,  with respect to Options,  shall have the meaning
set forth in Section 6.1.b.

         2.30 RESTORATION  OPTION  means a  Non-Qualified  Stock Option  granted
pursuant to Section 6.1.f.

         2.31 RESTRICTED  SHARES  means  Common  Stock  subject to  restrictions
imposed in connection with Awards granted under Article 7.

         2.32 RETIREMENT  means early or normal  retirement under a pension plan
or  arrangement  of  the  Company  or  one  of its  Subsidiaries  in  which  the
Participant participates.

         2.33 RULE 16B-3  means Rule 16b-3  promulgated  by the  Securities  and
Exchange  Commission  under  Section 16 of the Exchange  Act, as the same may be
amended from time to time, and any successor rule.

         2.34 STOCK APPRECIATION  RIGHTS means Awards granted in accordance with
Article 6.

         2.35 SUBSIDIARY means a subsidiary of the Company within the meaning of
Section 424(f) of the Code

         2.36 TEN PERCENT  HOLDER  means any person who owns (within the meaning
of Section 424(d) of the Code) more than 10 percent of the total combined voting
power of all classes of stock of the Company and its Subsidiaries.

         2.37 TERMINATION  OF  EMPLOYMENT  means  the  voluntary or  involuntary
termination  of a  Participant's  employment  or service  as a  director  of the
Company or a Subsidiary for any reason, including death, disability,  retirement
or as the result of the divestiture of the Participant's employer or any similar
transaction in which the Participant's  employer ceases to be the Company or one
of its Subsidiaries. Whether entering military or other government service shall
constitute  Termination  of  Employment,  or whether a Termination of Employment
shall occur as a result of  disability,  shall be determined in each case by the
Plan Administrator in its sole discretion.

                                      -4-
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                                    ARTICLE 3

                                 ADMINISTRATION

         3.1 PLAN   ADMINISTRATOR;   SCOPE;   AUTHORITY.   The  Plan   shall  be
administered  by the Plan  Administrator.  The  Plan  Administrator  shall  have
exclusive and final  authority in each  determination,  interpretation  or other
action affecting the Plan and its  Participants.  The Plan  Administrator  shall
have the sole  discretionary  authority to interpret  the Plan, to establish and
modify  administrative  rules  for the  Plan,  to  impose  such  conditions  and
restrictions on Awards as it determines appropriate, to cancel Awards (including
those made pursuant to other plans of the Company) and to substitute new Options
for previously awarded Options which, at the time of such substitution,  have an
exercise price in excess of the Fair Market Value of the underlying Common Stock
(including  options granted under other incentive  compensation  programs of the
Company) with the consent of the recipient, and to take such steps in connection
with  the  Plan  and  Awards  granted  hereunder  as it may  deem  necessary  or
advisable.  The Plan  Administrator  shall not,  however,  have or exercise  any
discretion  that would  disqualify  amounts  payable  under  Articles 8 or 10 as
performance-based compensation for purposes of Section 162(m) of the Code.

         3.2 DELEGATION OF AUTHORITY. The Plan Administrator may, in the case of
performance-based  awards to "covered  employees"  within the meaning of Section
162(m) of the Code,  delegate such of its powers and authority under the Plan as
it deems appropriate to the Committee and, in the case of Awards to Participants
who are not subject to Section 16(b) of the Exchange  Act,  delegate such of its
powers  and  authority  under  the Plan as it deems  appropriate  to  designated
officers or  employees of the Company.  In the event of any such  delegation  of
authority,  references in the Plan to the Plan Administrator  shall be deemed to
refer to the delegate of the Plan Administrator.

                                    ARTICLE 4

                                     SHARES

         4.1 NUMBER OF SHARES  ISSUABLE.  The total  number of shares  initially
authorized to be issued under the Plan shall be 300,000  shares of Common Stock.
The  number of shares  available  for  issuance  under the Plan shall be further
subject to adjustment in accordance  with Section 11.7. The shares to be offered
under the Plan shall be authorized and unissued  Common Stock,  or issued Common
Stock which shall have been reacquired by the Company.

         4.2 SHARES  SUBJECT TO TERMINATED  AWARDS.  Common Stock covered by any
unexercised  portions of terminated Options (including canceled Options) granted
under Article 6, Common Stock forfeited as provided in Section 7.2.a. and Common
Stock subject to any Awards which are otherwise  surrendered by the  Participant
may again be subject  to new  Awards  under the Plan.  Common  Stock  subject to
Options, or portions thereof, which have been surrendered in connection with the
exercise of Stock  Appreciation  Rights  shall not be available  for  subsequent
Awards  under  the Plan,  but  Common  Stock  issued in  payment  of such  Stock
Appreciation  Rights shall not be charged against the number of shares of Common

                                      -5-
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Stock available for the grant of Awards hereunder.

                                   ARTICLE 5

                                  PARTICIPATION

         5.1 ELIGIBLE  PARTICIPANTS.  Participants  in  the  Plan  shall be such
officers and other key employees of the Company and its Subsidiaries, whether or
not members of the Board, as the Plan Administrator, in its sole discretion, may
designate from time to time. In addition, Participants in the Plan shall include
such Non-Employee Directors as are granted Options under Section 6.1.a. The Plan
Administrator's  designation  of a Participant in any year shall not require the
Plan  Administrator  to designate such person to receive Awards or grants in any
other year.  The  designation of a Participant to receive awards or grants under
one portion of the Plan does not require the Plan  Administrator to include such
Participant  under other  portions  of the Plan.  The Plan  Administrator  shall
consider  such factors as it deems  pertinent in selecting  Participants  and in
determining the type and amount of their respective Awards.  Notwithstanding any
provision herein to the contrary,  the Plan Administrator may grant Awards under
the Plan,  other than Incentive  Stock  Options,  to  non-employees  who, in the
judgment of the Plan Administrator,  render significant  services to the Company
or  any  of  its  Subsidiaries,  on  such  terms  and  conditions  as  the  Plan
Administrator  deems  appropriate  and  consistent  with the intent of the Plan.
Subject to adjustment in accordance  with Section 11.7,  during the term of this
Plan,  no  Participant  shall be granted  Awards in respect of more than 100,000
shares of Common Stock (whether through grants of Options or Stock  Appreciation
Rights or other  grants of Common  Stock or rights  with  respect  thereto)  and
$3,000,000 in cash in any calendar year.

                                    ARTICLE 6

                   STOCK OPTIONS AND STOCK APPRECIATION RIGHTS

         6.1 OPTION AWARDS.

                  a. GRANTS.   The   Plan   Administrator  may  grant,  to  such
Participants  as the Plan  Administrator  may  select,  Options  entitling  such
Participants to purchase shares of Common Stock from the Company in such number,
at  such  price,  and  on  such  terms  and  subject  to  such  conditions,  not
inconsistent  with the terms of this  Plan,  as may be  established  by the Plan
Administrator. In addition, the Plan Administrator shall grant, to each director
who is a  Non-Employee  Director on the Effective Date and to each person who is
elected,  appointed  or  otherwise  becomes a  Non-Employee  Director  after the
Effective  Date,   Non-Qualified   Stock  Options  entitling  such  Non-Employee
Directors  to purchase  5,000  shares of Common Stock from the Company as of the
Effective  Date  or,  in the  case of a  person  who is  elected,  appointed  or
otherwise becomes a Non-Employee  Director after the Effective Date, on the date
in which such person is elected,  appointed or otherwise  becomes a Non-Employee
Director,  at such price, and on such terms and subject to such conditions,  not
inconsistent  with the terms of this  Plan,  as may be  established  by the Plan
Administrator.  The Plan  Administrator  shall also grant, to each  Non-Employee
Director  on each 5th year  anniversary  (i.e.,  the 5th  anniversary,  the 10th
anniversary,  the  15th  anniversary,  etc.)  of the  date of such  Non-Employee
Director's  initial grant pursuant to this Section 6.1.a.,  Non-Qualified  Stock
Options entitling such Non-Employee  Director to purchase 5,000 shares of Common
Stock from the  Company  at such  price,  and on such terms and  subject to such
conditions,  not inconsistent with the terms of this Plan, as may be established
by  the  Plan  Administrator,   PROVIDED  THAT  such  Non-Employee  Director  is

                                      -6-
<PAGE>

continuing in office after such anniversary date.  Except as otherwise  provided
in  Sections  6.3.c.  and  6.5,  Non-Employee  Director  Options  shall  not  be
exercisable  prior to the first  anniversary of the Date of Grant, at which time
they  will be  immediately  exercisable,  in whole or in part.  The terms of any
Option granted under this Plan shall be set forth in an Award Agreement.

                  b. PURCHASE PRICE OF OPTIONS. The Purchase Price of each share
of Common Stock which may be purchased upon exercise of any Option granted under
the Plan shall be determined by the Plan Administrator;  PROVIDED, HOWEVER, that
i) the  Purchase  Price  of the  Common  Stock  purchased  pursuant  to  Options
designated by the Plan  Administrator  as Incentive Stock Options shall be equal
to or greater  than the Fair  Market  Value of the  Common  Stock on the Date of
Grant as  required  under  Section  422 of the Code and,  in the case of Options
granted to Ten  Percent  Holders and  designated  by the Plan  Administrator  as
Incentive  Stock  Options,  the  Purchase  Price of the Common  Stock  purchased
pursuant  to such  Options  shall be equal to or  greater  than 110% of the Fair
Market Value of the Common Stock on the Date of Grant as required  under Section
422 of the  Code,  and ii) the  Purchase  Price of the  Common  Stock  purchased
pursuant to Non-Employee  Director Options shall be equal to or greater than the
Fair Market Value of the Common Stock on the Date of Grant.

                  c. DESIGNATION  OF  OPTIONS.  Except  as  otherwise  expressly
provided in the Plan, the Plan  Administrator may designate,  at the time of the
grant of each Option, the Option as an Incentive Stock Option or a Non-Qualified
Stock Option.

                  d. INCENTIVE STOCK OPTION SHARE LIMITATION. To the extent that
the aggregate Fair Market Value of Common Stock with respect to which  Incentive
Stock Options (determined without regard to this Section 6.1.d.) are exercisable
for the 1st time by any Participant during any calendar year (under all plans of
the  Company and its  Subsidiaries)  exceeds  $100,000,  such  options  shall be
treated as options which are not Incentive stock Options.

                  e. RIGHTS AS A  SHAREHOLDER.  A Participant or a transferee of
an Option  pursuant to Section 11.4 shall have no rights as a  shareholder  with
respect to Common Stock covered by an Option until the Participant or transferee
shall have  become the holder of record of any such  shares,  and no  adjustment
shall be made for dividends in cash or other property or  distributions or other
rights with  respect to any such Common Stock for which the record date is prior
to the date on which the  Participant  or a transferee  of the Option shall have
become the holder of record of any such shares covered by the Option;  PROVIDED,
HOWEVER,  that such  Participants  are entitled to share  adjustments to reflect
capital changes under Section 11.7.

                  f. RESTORATION  OPTIONS UPON THE EXERCISE OF A  NON-QUALIFIED
STOCK OPTION. In the event that any Participant  delivers to the Company, or has
withheld from the shares otherwise issuable upon the exercise of a Non-Qualified
Stock  Option,  shares of Common Stock in payment of the  Purchase  Price of any
Non-Qualified Stock Option granted hereunder in accordance with Section 6.4, the
Plan  Administrator  shall  have  the  authority  to grant  or  provide  for the
automatic  grant of a  Restoration  Option to such  Participant.  The grant of a
Restoration  Option shall be subject to the  satisfaction  of such conditions or
criteria as the Plan  Administrator  in its sole discretion shall establish from
time to time. A Restoration  Option shall entitle the holder thereof to purchase
a number  of  shares  of Common  Stock  equal to the  number  of such  shares so
delivered  or  withheld  upon  exercise  of  the  original  Option  and,  in the
discretion of the Plan Administrator, the number of shares, if any, delivered to
or withheld by the Corporation to satisfy any withholding tax liability  arising
in connection  with the exercise of the original  Option.  A Restoration  Option
shall  have a per  share  Purchase  Price of not less than 100% of the per share
Fair Market Value of the Common  Stock on the date of grant of such  Restoration

                                      -7-
<PAGE>

Option,  a term not longer than the remaining term of the original Option at the
time of  exercise  thereof,  and such  other  terms and  conditions  as the Plan
Administrator in its sole discretion shall determine.

         6.2 STOCK APPRECIATION RIGHTS.

                  a. STOCK  APPRECIATION RIGHT AWARDS. The Plan Administrator is
authorized to grant to any  Participant one or more Stock  Appreciation  Rights.
Such  Stock  Appreciation  Rights may be granted  either  independent  of, or in
tandem with, Options granted to the same Participant.  Stock Appreciation Rights
granted in tandem with Options may be granted  simultaneously  with,  or, in the
case  of  Non-Qualified  Stock  Options,   subsequent  to,  the  grant  to  such
Participant  of the related  Option;  PROVIDED,  HOWEVER,  that:  (i) any Option
covering any share of Common Stock shall expire and not be exercisable  upon the
exercise of any Stock  Appreciation  Right with respect to the same share,  (ii)
any Stock Appreciation Right covering any share of Common Stock shall expire and
not be  exercisable  upon the exercise of any related Option with respect to the
same share, and (iii) any Option and Stock  Appreciation Right covering the same
share of Common Stock may not be exercised  simultaneously.  Upon  exercise of a
Stock  Appreciation  Right  with  respect  to  a  share  of  Common  Stock,  the
Participant  shall be entitled to receive an amount equal to the excess, if any,
of (A) the Fair Market  Value of a share of Common Stock on the date of exercise
over (B) the Exercise Price of such Stock  Appreciation Right established in the
Award Agreement, which amount shall be payable as provided in Section 6.2.c.

                  b. EXERCISE PRICE.  The Exercise Price  established  under any
Stock Appreciation Right granted under this Plan shall be determined by the Plan
Administrator,  but in the case of Stock  Appreciation  Rights granted in tandem
with Options  shall not be less than the Purchase  Price of the related  Option.
Upon  exercise of Stock  Appreciation  Rights,  the number of shares  subject to
exercise under any related Option shall  automatically  be reduced by the number
of shares of Common Stock represented by the Option or portion thereof which are
surrendered as a result of the exercise of such Stock Appreciation Rights.

                  c. PAYMENT OF INCREMENTAL  VALUE. Any payment which may become
due  from  the  Company  by  reason  of a  Participant's  exercise  of  a  Stock
Appreciation  Right may be paid to the  Participant  as  determined  by the Plan
Administrator  (i) all in  cash,  (ii)  all in  Common  Stock,  or  (iii) in any
combination of cash and Common Stock.  In the event that all or a portion of the
payment is made in Common Stock,  the number of shares of Common Stock delivered
in  satisfaction  of such payment  shall be determined by dividing the amount of
such payment or portion  thereof by the Fair Market Value of the Common Stock on
the Exercise  Date. No fractional  share of Common Stock shall be issued to make
any payment in respect of Stock  Appreciation  Rights;  if any fractional  share
would be  issuable,  the  combination  of cash and Common  Stock  payable to the
Participant shall be adjusted as directed by the Plan Administrator to avoid the
issuance of any fractional share.

         6.3      TERMS OF STOCK OPTIONS AND STOCK APPRECIATION RIGHTS.

                  a. CONDITIONS ON EXERCISE.  Award  Agreements  with respect to
Options  and/or Stock  Appreciation  Rights may contain  such  waiting  periods,
exercise dates and/or restrictions on exercise  (including,  but not limited to,
periodic  installments)  as may be determined by the Plan  Administrator  at the
time of grant.

                  b. DURATION OF OPTIONS AND STOCK APPRECIATION RIGHTS.  Options

                                      -8-
<PAGE>

and Stock  Appreciation  Rights shall  terminate after the first to occur of the
following events:

               (1) Expiration  of  the  Option  or Stock  Appreciation  Right as
provided in the Award Agreement; or

               (2) Termination  of  the Award as  provided  in  Section  6.3.e.,
following the Participant's Termination of Employment;

               (3) In the  case of an  Incentive  Stock  Option  not  granted to
a Ten Percent Holder, 10 years from the Date of Grant;

               (4) In the case of an  Incentive  Stock  Option  granted to a Ten
Percent Holder, 5 years from the Date of Grant;

               (5) In the case of a Stock  Appreciation  Right granted in tandem
with an Option, upon the expiration of the related Option; or

               (6) In the case of a Non-Employee  Director Option, 10 years from
the Date of Grant.

         c. ACCELERATION OF EXERCISE TIME. The Plan  Administrator,  in its sole
discretion,  shall  have the right  (but  shall  not in any case be  obligated),
exercisable  at any time after the Date of Grant,  to permit the exercise of any
Option  or Stock  Appreciation  Right  prior to the time  such  Option  or Stock
Appreciation  Right would otherwise  become  exercisable  under the terms of the
Award Agreement.

         d. EXTENSION OF EXERCISE TIME. In addition to the extensions  permitted
under  Section  6.3.e.  in the  event of  Termination  of  Employment,  the Plan
Administrator,  in its sole  discretion,  shall have the right (but shall not in
any case be  obligated),  exercisable on or at any time after the Date of Grant,
to permit any Option or Stock  Appreciation  Right granted under this Plan to be
exercised  after its  expiration  date  described  in  Section  6.3.e,  subject,
however,  to  the  limitations  described  in  Sections  6.3.b.(1),   6.3.b.(3),
6.3.b.(4),6.3.b(5) and 6.3.b.(6).

         e. EXERCISE OF OPTIONS OR STOCK APPRECIATION RIGHTS UPON TERMINATION OF
EMPLOYMENT.

               (1) TERMINATION OF VESTED OPTIONS AND STOCK  APPRECIATION  RIGHTS
UPON TERMINATION OF EMPLOYMENT.

                    (a) TERMINATION.  In the event of Termination  of Employment
of a Participant,  other than by reason of death, disability or Retirement,  the
right of such  Participant  to exercise the Option or Stock  Appreciation  Right
under the Plan shall  terminate  30 days after the date of such  Termination  of
Employment,  unless the exercise period is extended by the Plan Administrator or
unless otherwise agreed in the Award Agreement.

                    (b) DISABILITY   OR   RETIREMENT.   In   the    event  of  a
Participant's  Termination  of Employment by reason of disability or Retirement,
the right of such  Participant  to exercise  the  Options or Stock  Appreciation
Rights which he or she was entitled to exercise upon  Termination  of Employment
(or which became  exercisable at a later date pursuant to Section  6.3.d.) shall
terminate 3 years after the date of such  Termination  of Employment  unless the
exercise period is extended by the Plan Administrator in accordance with Section

                                      -9-
<PAGE>

6.3.d.  In no event,  however,  may any  Option or Stock  Appreciation  Right be
exercised later than the date of expiration of the Option determined pursuant to
Section 6.3.b.(1), 6.3.b.(3), 6.3.b.(4),6.3.b(5) and 6.3.b.(6).

                    (c) DEATH. In the event of the death of a Participant  while
employed by, or serving on the Board of, the Company or a Subsidiary,  or within
the additional period of time from the date of such Participant's Termination of
Employment,  and prior to the  expiration  of the  Option or Stock  Appreciation
Right as may be permitted in Section  6.3.e.(1)(b)  or Section 6.3.d.  above, to
the extent the right to exercise the Option or Stock  Appreciation Right accrued
as of the date of such  Termination of Employment and did not expire during such
additional  period  and  prior to the  Participant's  death,  the  right of such
Participant's  Beneficiary  to exercise the Option or Stock  Appreciation  Right
under the Plan shall  terminate  upon the expiration of 3 years from the date of
such Participant's death (but in no event more than 3 years from the date of the
Participant's  Termination of Employment by reason of disability or retirement),
unless the exercise period is extended by the Plan  Administrator  in accordance
with Section 6.3.d. In no event,  however,  may any Option or Stock Appreciation
Right be exercised  later than the date of expiration  of the Option  determined
pursuant to Section 6.3.b.(1), 6.3.b.(3), 6.3.b.(4),6.3.b(5) and 6.3.b.(6).

               (2) TERMINATION OF UNVESTED OPTIONS OR STOCK APPRECIATION  RIGHTS
UPON  TERMINATION OF EMPLOYMENT.  Subject to Section  6.3.c.,  to the extent the
right to  exercise  an  Option or a Stock  Appreciation  Right,  or any  portion
thereof,  has not accrued as of the date of Termination of Employment such right
shall expire on the date of such Termination of Employment.  Notwithstanding the
foregoing,  the Plan  Administrator  may,  within its  discretion and under such
terms as it deems appropriate, permit a Participant who terminates employment or
service as a director by reason of  Retirement  and who will  continue to render
significant  services to the Company or one of its Subsidiaries after his or her
Termination of Employment,  to continue  vesting in his or her Options and Stock
Appreciation  Rights  during the  period in which the  individual  continues  to
render such services.

         6.4 EXERCISE  PROCEDURES.  Each  Option  and Stock  Appreciation  Right
granted under the Plan shall be exercised by written notice to the Company which
must be received by the  officer or  employee of the Company  designated  in the
Award Agreement on or before the close of business on the expiration date of the
Award. The Purchase Price of shares purchased upon exercise of an Option granted
under the Plan shall be paid in full in cash by the Participant  pursuant to the
Award Agreement;  PROVIDED,  HOWEVER, that the Plan Administrator may (but shall
not be  required  to) permit  payment to be made by  delivery  to the Company of
either (a) Common Stock (which may include Restricted Shares or shares otherwise
issuable in connection with the exercise of the Option, subject to such rules as
the Plan  Administrator  deems  appropriate)  or (b) any combination of cash and
Common Stock, or (c) such other  consideration as the Plan  Administrator  deems
appropriate  and  in  compliance  with  applicable  law  (including  payment  in
accordance with a cashless exercise program under which, if so instructed by the
Participant,  Common Stock may be issued directly to the Participant's broker or
dealer  upon  receipt of an  irrevocable  written  notice of  exercise  from the
Participant).  In the event that any Common  Stock shall be  transferred  to the
Company  to  satisfy  all or any  part of the  Purchase  Price,  the part of the
Purchase  Price deemed to have been  satisfied by such  transfer of Common Stock
shall be equal to the product derived by multiplying the Fair Market Value as of
the date of exercise  times the number of shares of Common Stock  transferred to
the Company.  The Participant may not transfer to the Company in satisfaction of
the  Purchase  Price  any  fractional  share of  Common  Stock.  Any part of the
Purchase  Price paid in cash upon the  exercise of any Option  shall be added to
the  general  funds  of the  Company  and may be used for any  proper  corporate

                                      -10-
<PAGE>

purpose.  Unless the Plan Administrator  shall otherwise  determine,  any Common
Stock transferred to the Company as payment of all or part of the Purchase Price
upon the exercise of any Option shall be held as treasury shares.

         6.5 CHANGE  IN  CONTROL.   Unless  otherwise    provided  by  the  Plan
Administrator  in the applicable  Award  Agreement,  in the event of a Change in
Control,  all Options outstanding on the date of such Change in Control, and all
Stock Appreciation  Rights shall become  immediately and fully exercisable.  The
provisions  of this Section 6.5 shall not be  applicable to any Options or Stock
Appreciation  Rights granted to a Participant  if any Change in Control  results
from such Participant's  beneficial  ownership (within the meaning of Rule 13d-3
under the Exchange Act) of Common Stock or Company Voting Securities.

                                    ARTICLE 7

                                RESTRICTED SHARES

         7.1 RESTRICTED SHARE AWARDS.  The Plan  Administrator  may grant to any
Participant  an Award of  Common  Stock in such  number of  shares,  and on such
terms,  conditions and  restrictions,  whether based on  performance  standards,
periods of service,  retention by the  Participant  of ownership of purchased or
designated shares of Common Stock or other criteria,  as the Plan  Administrator
shall establish.  With respect to performance-based  Awards of Restricted Shares
intended  to  qualify  for  deductibility  under  Section  162(m)  of the  Code,
performance  targets will include  specified  levels of one or more of operating
income, earnings per share, return on investment, return on shareholders' equity
and/or objective measures of individual performance. The terms of any Restricted
Share  Award  granted  under this Plan shall be set forth in an Award  Agreement
which shall  contain  provisions  determined by the Plan  Administrator  and not
inconsistent with this Plan.

                  a. ISSUANCE OF RESTRICTED SHARES. As soon as practicable after
the Date of Grant of a  Restricted  Share Award by the Plan  Administrator,  the
Company shall cause to be transferred on the books of the Company, or its agent,
Common Stock, registered on behalf of the Participant, evidencing the Restricted
shares covered by the Award,  but subject to forfeiture to the Company as of the
Date of  Grant if an Award  Agreement  with  respect  to the  Restricted  Shares
covered by the Award is not duly executed by the Participant and timely returned
to the Company.  All Common Stock covered by Awards under this Article VII shall
be subject to the  restrictions  terms and conditions  contained in the Plan and
the Award Agreement entered into by the Participant.  Until the lapse or release
of all  restrictions  applicable  to an Award of  Restricted  Shares  the  share
certificates  representing  such Restricted Shares may be held in custody by the
Company, its designee, or, if the certificates bear a restrictive legend, by the
Participant.  Upon the lapse or release of all  restrictions  with respect to an
Award as described in Section 7.1.d., one or more share certificates, registered
in the name of the Participant,  for an appropriate number of shares as provided
in Section 7.1.d.,  free of any restrictions set forth in the Plan and the Award
Agreement shall be delivered to the Participant.

                  b. SHAREHOLDER  RIGHTS.  Beginning on the Date of Grant of the
Restricted  Share  Award and  subject to  execution  of the Award  Agreement  as
provided in Section 7.1.a.,  the  Participant  shall become a shareholder of the
Company with respect to all shares subject to the Award Agreement and shall have
all of the rights of a shareholder,  including, but not limited to, the right to
vote such shares and the right to receive dividends; PROVIDED, HOWEVER, that any
Common  Stock  distributed  as a  dividend  or  otherwise  with  respect  to any
Restricted  Shares as to which the  restrictions  have not yet lapsed,  shall be

                                      -11-
<PAGE>

subject  to the  same  restrictions  as  such  Restricted  Shares  and  held  or
restricted as provided in Section 7.1.a.

                  c. RESTRICTION  ON  TRANSFERABILITY.  None  of the  Restricted
Shares may be assigned or transferred (other than by will or the laws of descent
and  distribution,  or, in the case of Participants not subject to Section 16 of
the Exchange Act, to an INTER VIVOS trust with respect to which the  Participant
is treated as the owner under Sections 671 through 677 of the Code),  pledged or
sold prior to lapse of the restrictions applicable thereto.

                  d. DELIVERY OF SHARES UPON VESTING. Upon expiration or earlier
termination of the forfeiture  period without a forfeiture and the  satisfaction
of or release from any other conditions prescribed by the Plan Administrator, or
at such  earlier  time as provided  under the  provisions  of Section  7.3,  the
restrictions  applicable to the  Restricted  Shares shall lapse.  As promptly as
administratively  feasible  thereafter,  subject to the  requirements of Section
11.5,  the  Company  shall  deliver  to  the  Participant  or,  in  case  of the
Participant's  death,  to  the  Participant's  Beneficiary,  one or  more  share
certificates for the appropriate  number of shares of Common Stock,  free of all
such restrictions, except for any restrictions that may be imposed by law.

         7.2 TERMS OF RESTRICTED SHARES.

                  a. FORFEITURE OF RESTRICTED SHARES. Subject to Sections 7.2.b.
and 7.3, all  Restricted  Shares shall be forfeited  and returned to the Company
and all rights of the Participant  with respect to such Restricted  Shares shall
terminate  unless the  Participant  continues in the service of the Company or a
Subsidiary as an employee until the expiration of the forfeiture period for such
Restricted  Shares and satisfies any and all other  conditions  set forth in the
Award Agreement.  The Plan  Administrator  shall determine the forfeiture period
(which  may,  but need  not,  lapse in  installments)  and any  other  terms and
conditions applicable with respect to any Restricted Share Award.

                  b. WAIVER  OF  FORFEITURE  PERIOD.  Notwithstanding   anything
contained in this Article 7 to the contrary,  the Plan Administrator may, in its
sole discretion,  waive the forfeiture period and any other conditions set forth
in any Award Agreement  under  appropriate  circumstances  (including the death,
disability  or  Retirement  of  the   Participant   or  a  material   change  in
circumstances  arising after the date of an Award) and subject to such terms and
conditions  (including  forfeiture of a  proportionate  number of the Restricted
Shares) as the Plan Administrator shall deem appropriate.

         7.3 CHANGE  IN  CONTROL.   Unless  otherwise   provided  by   the  Plan
Administrator  in the applicable  Award  Agreement,  in the event of a Change in
Control,  all  restrictions  applicable  to the  Restricted  Share  Award  shall
terminate  fully and the  Participant  shall  immediately  have the right to the
delivery of share certificate or certificates for such shares in accordance with
Section 7.1.d.

                                    ARTICLE 8

                               PERFORMANCE AWARDS

         8.1 PERFORMANCE AWARDS.

                  a. AWARD  PERIODS  AND  CALCULATIONS  OF  POTENTIAL  INCENTIVE

                                      -12-
<PAGE>

AMOUNTS. The Plan Administrator may grant Performance Awards to Participants.  A
Performance  Award shall consist of the right to receive a payment  (measured by
the Fair Market Value of a specified number of shares of Common Stock, increases
in such Fair Market Value  during the Award  Period  and/or a fixed cash amount)
contingent upon the extent to which certain  predetermined  performance  targets
have  been  met  during  an  Award  Period.  Performance  Awards  may be made in
conjunction  with, or in addition to, Restricted Share Awards made under Article
7. The Award Period shall be two or more fiscal or calendar  years as determined
by the Plan Administrator.  The Plan Administrator,  in its discretion and under
such terms as it deems appropriate, may permit newly eligible employees, such as
those who are promoted or newly hired,  to receive  Performance  Awards after an
Award Period has commenced.

                  b. PERFORMANCE  TARGETS.  The performance  targets may include
such goals related to the performance of the Company and/or the performance of a
Participant as may be established by the Plan  Administrator  in its discretion.
In the case of Performance  Awards intended to qualify for  deductibility  under
Section 162(m) of the Code, the targets will include  specified levels of one or
more of operating income,  earnings per share,  return on investment,  return on
shareholders'  equity and/or objective measures of individual  performance.  The
performance targets established by the Plan Administrator may vary for different
Award  Periods  and  need  not be the same  for  each  Participant  receiving  a
Performance Award in an Award Period. Except to the extent inconsistent with the
performance-based  compensation  exception  under Section 162(m) of the Code, in
the case of  Performance  Awards  granted to  employees  to whom such section is
applicable,   the  Plan  Administrator,   in  its  discretion,  but  only  under
extraordinary circumstances as determined by the Plan Administrator,  may change
any prior  determination of performance targets for any Award Period at any time
prior to the final  determination of the Award when events or transactions occur
to cause the performance targets to be an inappropriate measure of achievement.

                  c. SHAREHOLDER  APPROVAL.  In the case of Performance  Awards
intended to qualify for  deductibility  under  Section  162(m) of the Code,  the
material  terms  under  which  the  remuneration  is to be paid,  including  the
performance  goals,  will be, to the extent required under Section 162(m) of the
Code,  disclosed to the  shareholders  of the Company and approved by a majority
vote (in a separate shareholder vote) of the shareholders before payment of such
remuneration is made pursuant to Section 8.1.e.

                  d. EARNING PERFORMANCE  AWARDS. The Plan Administrator,  at or
as soon as  practicable  after the Date of Grant,  shall  prescribe a formula to
determine the  percentage of the  Performance  Award to be earned based upon the
degree of attainment of performance targets.

                  e. PAYMENT OF EARNED  PERFORMANCE  AWARDS.  Payments of earned
Performance  Awards shall be made in cash or Common Stock,  or a combination  of
cash and Common Stock, in the discretion of the Plan Administrator.  In the case
of Performance Awards intended to qualify for deductibility under Section 162(m)
of the Code, such payments of earned Performance Awards will be conditioned,  to
the  extent  required  under  Section  162(m) of the Code,  upon  prior  written
certification  by  the  Plan   Administrator  of  attainment  of  the  specified
performance targets. The Plan Administrator,  in its sole discretion, may define
such terms and  conditions  with  respect to the  payment of earned  Performance
Awards as it may deem desirable.

         8.2 TERMS OF PERFORMANCE AWARDS.

                  a. TERMINATION OF EMPLOYMENT.  Unless otherwise provided below
or in Section  8.3, in the case of a  Participant's  Termination  of  Employment
prior to the end of an Award Period,  the  Participant  will not have earned any
Performance Awards.

                                      -13-
<PAGE>

                  b. RETIREMENT. If a Participant's Termination of Employment is
because of Retirement prior to the end of an Award Period,  the Participant will
not be paid any Performance Awards,  unless the Plan Administrator,  in its sole
and  exclusive  discretion,  determines  that an Award should be paid. In such a
case, the Participant  shall be entitled to receive a pro-rata portion of his or
her Award as determined under Section 8.2.d.

                  c. DEATH OR  DISABILITY.  If a  Participant's  Termination  of
Employment  is due to  death  or  disability  (as  determined  in the  sole  and
exclusive  discretion  of the Plan  Administrator)  prior to the end of an Award
Period, the Participant or the Participant's  personal  representative  shall be
entitled  to receive a pro-rata  share of his or her Award as  determined  under
Section 8.2.d.

                  d. PRO-RATA  PAYMENT.  The  amount  of any  payment  made to a
Participant  whose  employment is terminated by retirement,  death or disability
(under circumstances  described in Sections 8.2.b and 8.2.c.) will be the amount
determined by multiplying the amount of the  Performance  Award which would have
been earned,  determined at the end of the Award Period, had such employment not
been  terminated,  by a fraction,  the numerator of which is the number of whole
months  such  Participant  was  employed  during  the  Award  Period,   and  the
denominator of which is the total number of months of the Award Period. Any such
payment made to a Participant whose employment is terminated prior to the end of
an  Award  Period  under  this  Section  8.2  shall  be  made  at the end of the
respective Award Period,  unless otherwise  determined by the Plan Administrator
in its sole  discretion.  Any partial  payment  previously made or credited to a
deferred  account for the benefit of a  Participant  as provided  under  Section
8.1.e. of the Plan shall be subtracted from the amount  otherwise  determined as
payable as provided in this Section 8.2.d.

                  e. OTHER EVENTS.  Notwithstanding  anything to the contrary in
this  Article  8,  the  Plan  Administrator  may,  in  its  sole  and  exclusive
discretion,  determine  to pay all or any  portion of a  Performance  Award to a
Participant  who has terminated  employment  prior to the end of an Award Period
under certain  circumstances  (including the death,  disability or retirement of
the Participant or a material change in circumstances  arising after the Date of
Grant) and subject to such terms and conditions as the Plan Administrator  shall
deem appropriate.

         8.3 CHANGE  IN  CONTROL.   Unless  otherwise    provided  by  the  Plan
Administrator  in the applicable  Award  Agreement,  in the event of a Change in
Control,  all Performance  Awards for all Award Periods shall immediately become
fully payable to all  Participants  and shall be paid to Participants  within 30
days after such Change in Control.

                                    ARTICLE 9

                            OTHER STOCK-BASED AWARDS

         9.1 GRANT OF  OTHER  STOCK-BASED  AWARDS.  Other  stock-based  Awards,
consisting  of  Awards  of  stock  purchase  rights  (with or  without  loans to
Participants  by the  Company  containing  such terms as the Plan  Administrator
shall  determine),  Awards of cash, Awards of Common Stock, and Awards valued in
whole or in part by reference to, or otherwise  based on,  Common Stock,  may be
granted either alone or in addition to or in conjunction with other Awards under
the Plan.  Subject to the provisions of the Plan, the Plan  Administrator  shall
have sole and complete  authority to determine  the persons to whom and the time
or times at which  such  Awards  shall be made,  the  number of shares of Common

                                      -14-
<PAGE>

Stock to be granted  pursuant to such Awards,  and all other  conditions  of the
Awards.  Any such Award shall be confirmed by an Award Agreement executed by the
Plan Administrator and the Participant, which Award Agreement shall contain such
provisions as the Plan  Administrator  determines to be necessary or appropriate
to carry out the intent of this Plan with respect to such Award.

         9.2 TERMS OF OTHER  STOCK-BASED  AWARDS.  In  addition to the terms and
conditions  specified  in the Award  Agreement,  Awards  made  pursuant  to this
Article 9 shall be subject to the following:

                  a. RESTRICTION ON TRANSFERABILITY. Any Common Stock subject to
Awards made under this Article 9 may not be sold, assigned, transferred, pledged
or otherwise encumbered prior to the date on which the shares are issued, or, if
later,  the date on which any  applicable  restriction,  performance or deferral
period lapses; and

                  b. RECIPIENTS'  RIGHTS. If specified by the Plan Administrator
in the Award Agreement,  the recipient of an Award under this Article 9 shall be
entitled to receive,  currently or on a deferred basis, interest or dividends or
dividend  equivalents  with  respect  to the  Common  Stock or other  securities
covered by the Award; and

                  c. ADDITIONAL PROVISIONS.  The Award Agreement with respect to
any Award shall contain provisions dealing with the disposition of such Award in
the event of a Termination of Employment  prior to the exercise,  realization or
payment of such Award,  whether such  termination  occurs because of retirement,
disability,  death or other reason,  with such provisions to take account of the
specific nature and purpose of the Award.

         9.3 FOREIGN QUALIFIED  AWARDS.  Awards under the Plan may be granted to
such employees of the Company and its  Subsidiaries  who are residing in foreign
jurisdictions  as the Plan  Administrator  in its sole  discretion may determine
from time to time. The Plan Administrator may adopt such supplements to the Plan
as may be necessary or appropriate  to comply with the  applicable  laws of such
foreign jurisdictions and to afford Participants  favorable treatment under such
laws;  PROVIDED,  HOWEVER,  that no  Award  shall  be  granted  under  any  such
supplement with terms or conditions inconsistent with the provision set forth in
the Plan.

                                   ARTICLE 10

                        SHORT-TERM CASH INCENTIVE AWARDS

         10.1 ELIGIBILITY.  Executive  officers of the Company who are from time
to time  determined  by the Plan  Administrator  to be "covered  employees"  for
purposes of Section  162(m) of the Code will be  eligible to receive  short-term
cash incentive awards under this Article 10.

         10.2 AWARDS.

                  a.  PERFORMANCE  TARGETS.  For each fiscal year of the Company
after  fiscal  year  1996,  the Plan  Administrator  shall  establish  objective
performance targets based on one or more of the following:  economic value added
(the amount, if any, by which net operating profit after tax exceeds a reference
cost of capital of no less than 7%),  operating profit,  return on investment or
working  capital,   reductions  in  inventory,   inventory  turns  and  delivery
performance, any one of which may be measured with respect to the Company or any
one or more of its  Subsidiaries  and either in absolute terms or as compared to

                                      -15-
<PAGE>

another company or companies,  and objective measures of individual performance.
Such  performance  targets shall be established by the Plan  Administrator  on a
timely  basis to ensure  that the targets are  considered  "preestablished"  for
purposes of Section 162(m) of the Code.

                  b.  SHAREHOLDER  APPROVAL.  In the case of Awards  intended to
qualify for  deductibility  under Section 162(m) of the Code, the material terms
under which the  remuneration is to be paid,  including the  performance  goals,
will be, to the extent  required under Section 162(m) of the Code,  disclosed to
the  shareholders  of the Company and approved by a majority vote (in a separate
shareholder  vote) of the  shareholders  before payment of such  remuneration is
made pursuant to Section 10.2.d.

                  c. AMOUNTS OF AWARDS. In conjunction with the establishment of
performance  targets for a fiscal year,  the Plan  Administrator  shall adopt an
objective formula (on the basis of percentages of Participants' salaries, shares
in a bonus pool or otherwise) for computing the respective amounts payable under
the Plan to Participants  if and to the extent that the performance  targets are
attained.  Such  formula  shall  comply  with  the  requirements  applicable  to
performance-based compensation plans under Section 162(m) of the Code.

                  d. PAYMENT OF AWARDS.  Awards will be payable to  Participants
in cash each year upon prior written  certification by the Plan Administrator of
attainment of the specified performance targets for the preceding fiscal year.

                  e. NEGATIVE DISCRETION.  Notwithstanding the attainment by the
Company of the specified  performance targets, the Plan Administrator shall have
the discretion, which need not be exercised uniformly among the Participants, to
reduce or eliminate the award that would be otherwise paid.

                  f. GUIDELINES. The Plan Administrator shall adopt from time to
time written policies for its implementation of this Article 10. Such guidelines
shall reflect the intention of the Company that all payments  hereunder  qualify
as performance-based compensation under Section 162(m) of the Code.

                  g. NON-EXCLUSIVE  ARRANGEMENT.  The adoption  and operation of
this Article 10 shall not preclude the Plan  Administrator  from approving other
short-term  incentive  compensation  arrangements for the benefit of individuals
who are Participants  hereunder as the Plan Administrator  deems appropriate and
in the best interests of the Company.

                                   ARTICLE 11

              TERMS APPLICABLE TO ALL AWARDS GRANTED UNDER THE PLAN

         11.1 PLAN PROVISIONS  CONTROL AWARD TERMS.  The terms of the Plan shall
govern  all  Awards  granted  under  the  Plan,  and in no event  shall the Plan
Administrator have the power to grant any Award under the Plan which is contrary
to any of the  provisions  of the Plan.  In the event any provision of any Award
granted under the Plan shall  conflict with any term in the Plan as  constituted
on the Date of Grant of such Award,  the term in the Plan as  constituted on the
Date of Grant of such Award shall  control.  Except as provided in Section  11.3
and  Section  11.7,  the  terms of any Award  granted  under the Plan may not be
changed after the Date of Grant of such Award so as to  materially  decrease the

                                      -16-
<PAGE>

value of the Award without the express written approval of the holder.

         11.2 AWARD  AGREEMENT.  No person shall have any rights under any Award
granted under the Plan unless and until the Company and the  Participant to whom
such Award shall have been granted  shall have  executed and  delivered an Award
Agreement  or received  any other Award  acknowledgment  authorized  by the Plan
Administrator  expressly  granting  the  Award  to such  person  and  containing
provisions setting forth the terms of the Award.

         11.3 MODIFICATION OF AWARD AFTER GRANT. No Award granted under the Plan
to a Participant may be modified (unless such  modification  does not materially
decrease  the  value of the  Award)  after the Date of Grant  except by  express
written  agreement  between the Company and the  Participant,  provided that any
such change (a) shall not be  inconsistent  with the terms of the Plan,  and (b)
shall be approved by the Plan Administrator.

         11.4 LIMITATION ON TRANSFER.  Except  as provided in Section 7.1.c.  in
the case of Restricted  Shares,  a  Participant's  rights and interest under the
Plan  may not be  assigned  or  transferred  other  than by will or the  laws of
descent and  distribution,  and during the lifetime of a  Participant,  only the
Participant  personally  (or  the  Participant's  personal  representative)  may
exercise rights under the Plan. The  Participant's  Beneficiary may exercise the
Participant's rights to the extent they are exercisable under the Plan following
the  death  of  the  Participant.   Notwithstanding  the  foregoing,   the  Plan
Administrator  may grant  Non-Qualified  Stock  Options  that are  transferable,
without payment of consideration, to immediate family members of the Participant
or to trusts or partnerships for such family members, and the Plan Administrator
may also amend  outstanding  Non-Qualified  Stock  Options  to provide  for such
transferability.

         11.5 TAXES.  The Company shall be entitled,  if the Plan  Administrator
deems it  necessary  or  desirable,  to  withhold  (or secure  payment  from the
Participant in lieu of  withholding)  the amount of any withholding or other tax
required by law to be withheld or paid by the Company with respect to any amount
payable and/or shares issuable under such  Participant's  Award, or with respect
to any income  recognized  upon a  disqualifying  disposition of shares received
pursuant to the exercise of an Incentive Stock Option, and the Company may defer
payment or issuance  of the cash or shares upon  exercise or vesting of an Award
unless  indemnified to its satisfaction  against any liability for any such tax.
The amount of such  withholding  or tax payment  shall be determined by the Plan
Administrator  and shall be payable by the  Participant at such time as the Plan
Administrator determines in accordance with the following rules:

                  a. The  Participant  shall have the right to elect to meet his
or her  withholding  requirement  (i) by having  withheld from such Award at the
appropriate  time that number of shares of Common Stock,  rounded up to the next
whole share, whose Fair Market Value is equal to the amount of withholding taxes
due,  (ii) by direct  payment to the  Company in cash of the amount of any taxes
required to be withheld with respect to such Award or (iii) by a combination  of
shares and cash.

                  b. The Plan Administrator  shall have the discretion as to any
Award,  to cause the  Company to pay to tax  authorities  for the benefit of any
Participant, or to reimburse such Participant for the individual taxes which are
due on the grant,  exercise or vesting of any share  Award,  or the lapse of any
restriction on any share Award (whether by reason of a  Participant's  filing of
an election  under Section 83(b) of the Code or otherwise),  including,  but not
limited to,  Federal  income tax,  state income tax, local income tax and excise
tax  under  Section  4999 of the Code,  as well as for any such  taxes as may be
imposed upon such tax payment or reimbursement.

                                      -17-
<PAGE>

                  c. In the case of  Participants  who are subject to Section 16
of the Exchange  Act, the Plan  Administrator  may impose such  limitations  and
restrictions as it deems  necessary or appropriate  with respect to the delivery
or withholding of shares of Common Stock to meet tax withholding obligations.

         11.6 SURRENDER  OF  AWARDS.  Any Award  granted  under the Plan may be
surrendered  to  the  Company  for  cancellation  on  such  terms  as  the  Plan
Administrator and the holder approve.

         11.7 ADJUSTMENTS TO REFLECT CAPITAL CHANGES.

                  a. RECAPITALIZATION.  The number and kind of shares subject to
outstanding  Awards,  the Purchase Price or Exercise Price for such shares,  the
number and kind of shares  available for Awards  subsequently  granted under the
Plan and the maximum  number of shares in respect of which Awards can be made to
any Participant in any calendar year shall be appropriately  adjusted to reflect
any stock  dividend,  stock split,  combination  or exchange of shares,  merger,
consolidation  or other  change in  capitalization  with a  similar  substantive
effect  upon  the  Plan  or  the  Awards   granted  under  the  Plan.  The  Plan
Administrator  shall have the power and sole  discretion to determine the amount
of the adjustment to be made in each case.

                  b.  MERGER.  After  any  Merger in which  the  Company  is the
surviving  corporation,  each  Participant  shall,  at no  additional  cost,  be
entitled  upon any exercise of an Option or receipt of another Award to receive,
subject to any required action by shareholders,  in lieu of the number of shares
of Common Stock receivable or exercisable pursuant to such Award, the number and
class of shares or other  securities to which such  Participant  would have been
entitled pursuant to the terms of the Merger if, at the time of the Merger, such
Participant  had been the  holder of  record of a number of shares  equal to the
number of shares  receivable or exercisable  pursuant to such Award.  Comparable
rights shall accrue to each  Participant  in the event of successive  Mergers of
the character  described above. In the event of a Merger in which the Company is
not  the  surviving  corporation,  the  surviving,  continuing,   successor,  or
purchasing corporation, as the case may be (the "ACQUIRING CORPORATION"),  shall
either assume the  Company's  rights and  obligations  under  outstanding  Award
Agreements or substitute awards in respect of the Acquiring  Corporation's stock
for such outstanding  Awards. In the event the Acquiring  Corporation elects not
to assume or substitute  for such  outstanding  Awards,  the Board shall provide
that any unexercisable  and/or unvested portion of the outstanding  Awards shall
be  immediately  exercisable  and  vested as of a date  prior to such  merger or
consolidation,  as the Board so determines.  The exercise  and/or vesting of any
Award that was  permissible  solely by reason of this Section  11.7.b.  shall be
conditioned  upon the consummation of the merger or  consolidation.  Any Options
which are neither  assumed by the Acquiring  Corporation nor exercised as of the
date of the Merger shall  terminate  effective as of the  effective  date of the
Merger.

                  c. OPTIONS TO PURCHASE SHARES OR STOCK OF ACQUIRED  COMPANIES.
After any  merger in which the  Company  or a  Subsidiary  shall be a  surviving
corporation,  the Plan  Administrator  may grant  substituted  options under the
provisions  of the Plan,  pursuant  to Section  424 of the Code,  replacing  old
options  granted  under a plan of another  party to the merger  whose  shares or
stock  subject to the old options may no longer be issued  following the merger.
The foregoing  adjustments and manner of application of the foregoing provisions
shall be determined by the Plan  Administrator in its sole discretion.  Any such
adjustments may provide for the elimination of any fractional shares which might
otherwise become subject to any Options.

                                      -18-
<PAGE>

         11.8 NO RIGHT TO EMPLOYMENT. No employee or other person shall have any
claim of right to be granted an Award under this Plan.  Neither the Plan nor any
action taken hereunder shall be construed as giving any employee any right to be
retained in the employ of the Company or any of its Subsidiaries.

         11.9 AWARDS NOT INCLUDABLE FOR BENEFIT PURPOSES. Payments received by a
Participant  pursuant to the provisions of the Plan shall not be included in the
determination  of benefits under any pension,  group  insurance or other benefit
plan applicable to the Participant  which is maintained by the Company or any of
its  Subsidiaries,  except as may be  provided  under the terms of such plans or
determined by the Board.

         11.10 GOVERNING LAW. All determinations made and actions taken pursuant
to the Plan shall be governed by the laws of the State of Florida and  construed
in accordance therewith.

         11.11 NO STRICT  CONSTRUCTION.  No rule of strict construction shall be
implied against the Company, the Plan Administrator,  or any other person in the
interpretation of any of the terms of the Plan, any Award granted under the Plan
or any rule or procedure established by the Plan Administrator.

         11.12 COMPLIANCE  WITH RULE  16B-3.  It is   intended  that the Plan be
applied and  administered in compliance with Rule 16b-3. If any provision of the
Plan would be in violation of Rule 16b-3 if applied as written,  such  provision
shall not have effect as written and shall be given  effect so as to comply with
Rule 16b-3, as determined by the Plan Administrator.  The Board is authorized to
amend the Plan and to make any such  modifications to Award Agreements to comply
with Rule 16b-3,  as it may be amended from time to time,  and to make any other
such amendments or  modifications as it deems necessary or appropriate to better
accomplish  the  purposes  of the Plan in light of any  amendments  made to Rule
16b-3.

         11.13 CAPTIONS.  The captions (i.e., all Section  headings) used in the
Plan are for  convenience  only, do not constitute a part of the Plan, and shall
not be deemed to limit,  characterize or affect in any way any provisions of the
Plan,  and all  provisions of the Plan shall be construed as if no captions have
been used in the Plan.

         11.14 SEVERABILITY.  Whenever possible,  each provision in the Plan and
every  Award at any time  granted  under the Plan shall be  interpreted  in such
manner as to be effective and valid under  applicable  law, but if any provision
of the Plan or any Award at any time granted  under the Plan shall be held to be
prohibited by or invalid under  applicable law, then (a) such provision shall be
deemed  amended to  accomplish  the  objectives  of the  provision as originally
written to the fullest extent  permitted by law and (b) all other  provisions of
the Plan and every other Award at any time  granted  under the Plan shall remain
in full force and effect.

         11.15 AMENDMENT AND TERMINATION.

                  a.  AMENDMENT.   The  Board  shall  have  complete  power  and
authority to amend the Plan at any time; PROVIDED, HOWEVER, that the Board shall
not, without the requisite  affirmative approval of shareholders of the Company,
make any amendment which requires  shareholder  approval under Rule 16b-3 or the
Code,  unless such compliance is no longer desired under Rule 16b-3, the Code or
under any other  applicable law or rule of any stock exchange which lists Common
Stock or Company Voting Securities. No termination or amendment of the Plan may,
without the consent of the Participant to whom any Award shall  theretofore have

                                      -19-
<PAGE>

been granted under the Plan, adversely affect the right of such individual under
such Award.

                  b.  TERMINATION.  The Board shall have the right and the power
to  terminate  the Plan at any time.  No Award  shall be granted  under the Plan
after the  termination  of the Plan,  but the  termination of the Plan shall not
have any other effect and any Award  outstanding at the time of the  termination
of the Plan may be exercised after  termination of the Plan at any time prior to
the expiration  date of such Award to the same extent such Award would have been
exercisable had the Plan not terminated.

                                      * * *

                                      -20-

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