Document:

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                                                                   Exhibit 10.27

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                                OPTION AGREEMENT

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     This OPTION AGREEMENT (this "OPTION AGREEMENT") dated and effective as of
September 20, 2000 provides for the granting of options by NCI Acquisition
Corporation, a Delaware corporation (the "COMPANY") and the parent of Nationwide
Credit, Inc. ("NCI"), to Paula Boyer, an employee of NCI (the "OPTIONEE").

     The Company has duly adopted the NCI Acquisition Corporation 1997
Management Performance Option Plan (the "PLAN"), a copy of which is attached
hereto as EXHIBIT A and which is incorporated herein by reference. In accordance
with Section 6 of the Plan, the board of directors of the Company (the "BOARD OF
DIRECTORS") has determined that the Optionee is to be granted options under the
Plan to buy shares of the Company's common stock, $0.01 par value (the
"SHARES"), on the terms and subject to the conditions hereinafter provided.

     1.   NUMBER OF SHARES, OPTION PRICES.

     (a)  The Company hereby grants to the Optionee an option (the "CLASS A
OPTION") to purchase up to 1,000 Shares (the "CLASS A OPTION SHARES") at a price
of $100 per Share, exercisable by the payment of the exercise price in cash.

     (b)  In addition to the Class A Option, the Company hereby grants to the
Optionee an option (the "CLASS B Option") to purchase up to 1,000 Shares (the
"CLASS B OPTION SHARES") at a price of $100.00 per Share, exercisable by the
payment of the exercise price in cash. The Class B Option and the Class A Option
are collectively referred to herein as the "OPTIONS". The Class B Option Shares
and the Class A Option Shares are collectively referred to herein as the "OPTION
SHARES".

     2.   PERIOD OF OPTIONS AND CONDITIONS OF EXERCISE.

     (a)  Subject to the limitations set forth in the second sentence of Section
8 of the Plan, the period (the "CLASS A OPTION PERIOD") for which the Class A
Option shall be effective shall commence upon the date hereof and shall continue
until the eighth (8th) anniversary of the date hereof. The conditions to
exercise the Class A Option are as set forth in the Plan. For the avoidance of
doubt, the Company hereby acknowledges that it is not altering the vesting
period or vesting schedule with respect to the Class A Option from that set
forth in Section 9 of the Plan and that the Class A Option shall vest over a
three year period beginning on the date hereof (subject to Sections 9(d) and
9(e) of the Plan).

     (b)  Subject to the limitations set forth in the second sentence of Section
8 of the Plan, the period (the "CLASS B OPTION PERIOD") for which the Class B
Option shall be effective shall commence upon the date hereof and shall continue
until

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the tenth (10th) anniversary of the date hereof. Except as indicated in the next
sentence, the conditions to exercise the Class B Option are as set forth in the
Plan. The vesting period and vesting schedule for the Class B Option shall not
be as set forth in Section 9 of the Plan, but instead shall be as follows:

          (i)    The Class B Option held by the Optionee shall have a "Vested
     Percentage" equal to 100% under the following conditions: (x) if (A) the
     Optionee shall be employed full-time by NCI on the third (3rd) anniversary
     of the date hereof and (B) the Major Stockholders under the Stockholders'
     Agreement, dated as of December 31, 1997, among the Company and certain
     stockholders thereof (the "STOCKHOLDERS' AGREEMENT") shall have achieved an
     IRR (as defined below) in excess of thirty-four (34%) percent; or (y) the
     Optionee shall be employed full-time by NCI on the ninth (9th) anniversary
     of the date hereof. The "Vested Percentage" of the Class B Option held by
     the Optionee in the event the Optionee is a full-time employee of NCI on
     the third (3rd) anniversary of the date hereof (or if the Optionee's
     full-time employment is terminated by NCI prior to such date for any reason
     (other than for "Cause"), the Major Stockholders shall have realized an IRR
     within the range of percentages set forth in this Section 2(b)(i) within
     one-hundred and eighty (180) days of the date of such termination) with
     respect to the percentage of the IRR set forth below shall be as follows:

                                                            Vested Percentage
          IRR                                               of Class B Option
          ---                                               -----------------

          equal to or greater than 25% but less than 26%           10%
          equal to or greater than 26% but less than 27%           20%
          equal to or greater than 27% but less than 28%           30%
          equal to or greater than 28% but less than 29%           40%
          equal to or greater than 29% but less than 30%           50%
          equal to or greater than 30% but less than 31%           60%
          equal to or greater than 31% but less than 32%           70%
          equal to or greater than 32% but less than 33%           80%
          equal to or greater than 33% but less than 34%           90%
          equal to or greater than 34%                            100%

     For purposes hereof, "IRR" means the internal rate of return per annum
     realized in cash by the Major Stockholders on their investment in the
     Shares acquired pursuant to the Stockholders' Agreement, taking into
     account all payments made to the Company by the Major Stockholders in
     consideration of the issuance of the Shares under the Stockholders'
     Agreement and all payment received by the Major Stockholders from the
     Company in respect of such Shares or received by the Major Stockholders
     upon any sale, transfer or other disposition thereof. The IRR shall be
     computed following the disposition by each of the Major Stockholders of not
     less than one-half (1/2) of the Shares acquired by the Major Stockholders
     pursuant to the Stockholders' Agreement based on the amounts paid for and
     received in respect of the Shares so disposed of. Upon subsequent
     dispositions of Shares, the IRR shall be computed on a cumulative basis for
     the aggregate Shares

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     disposed of, and in the event the cumulative IRR exceeds the rate
     previously computed in accordance with this Section 2(b)(i), the Vesting
     Percentage of the Class B Option shall be adjusted as appropriate.

          (ii)   The Vested Percentage of the unexercised portion of the Class B
     Option held by the Optionee in the event that the Optionee's full-time
     employment by NCI shall be terminated for "Cause" shall be zero percent
     (0%). Except as otherwise provided in any employment agreement between the
     Optionee and NCI or the Company (in which case the term "Cause" as used
     herein with respect to such Optionee shall have the meaning ascribed to it
     therein), "CAUSE" as used in this Option Agreement shall mean (w) the gross
     negligence or wilful misconduct of the Optionee in carrying out her
     obligations and duties, (x) any other breach by the Optionee of the terms
     of the Optionee's employment which has not been cured within five (5) days
     after delivery of notice by NCI to the Optionee of such breach (or such
     shorter period if such breach adversely affects NCI's ability to conduct
     debt collection activities in any jurisdiction), including, without
     limitation, the Optionee's insubordination, chronic absences from work or
     alcoholism or drug dependency, (y) the Optionee shall have committed an act
     of fraud, theft or dishonesty against the Company or NCI or any of their
     subsidiary or affiliated companies, or (z) the Optionee shall be indicted
     for or convicted of (or plead NOLO CONTENDRE to) any felony or be convicted
     of (or plead NOLO CONTENDRE to) any misdemeanor involving fraud, dishonesty
     or moral turpitude or any other misdemeanor that might, in the reasonable
     opinion of the Board of Directors, adversely affect the Optionee's ability
     to perform the Optionee's obligations or duties to the Company or NCI in
     any material respect or adversely affects NCI's ability to conduct its debt
     collection activities in any jurisdiction.

          (iii)  In the event of the occurrence of a Transfer Event (as defined
     below), the condition set forth in Section 2(b)(i)(x)(A) with respect to
     the Class B Option shall be deemed to be satisfied. For purposes hereof,
     "TRANSFER EVENT" shall mean (x) assets constituting all or substantially
     all of the assets of the Company are sold, in one or more related
     transactions, to any "person" or "group" (as such terms are defined in the
     United States Securities Exchange Act of 1934, as amended (the "EXCHANGE
     ACT")) and as a result, less than fifty percent (50%) of the outstanding
     voting securities or other capital interest of which are owned in the
     aggregate by the stockholders of the Company, directly or indirectly,
     immediately prior to or after such sale, (y) an event or series of events
     (whether a share purchase, merger, consolidation or other business
     combination or otherwise) by which any person or group (other than a
     stockholder of the Company on the date hereof) is or becomes the
     "beneficial owner" (as defined in the Exchange Act) directly or indirectly
     of more than fifty percent (50%) of the combined voting power of the then
     outstanding securities of the Company, or (z) a report filed on Schedule
     13D or Schedule 14D-1 (or any successor schedule, form or report) each as
     promulgated pursuant to the Exchange Act disclosing that any person (as the
     term "person" is used in Section 13(d)3 or Section 14(d)2 of the Exchange
     Act), other than a stockholder or group of stockholders of the Company on
     the date hereof, has become the beneficial owner (as the term "beneficial
     owner" is defined under Rule 13d-3 or any successor rule or regulation
     promulgated under the Exchange Act) of fifty percent (50%) or more of the
     issued and outstanding shares of voting securities of the Company,
     excluding in the case of each of clauses (x), (y) and (z) any
     reincorporation, reorganization or recapitalization transaction in which
     the stockholders of the Company

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     continue to possess all of the outstanding voting securities of the
     successor or surviving entity in the same relative proportions.

     3.   TERMINATION UPON TERMINATION OF EMPLOYMENT. The duration of the
Options shall be subject to the limitations set forth in the second sentence set
forth in Section 8 of the Plan.

     4.   NON-TRANSFERABILITY OF PERFORMANCE OF OPTIONS; DEATH OF OPTIONEE. The
Options and this Option Agreement shall not be transferred by the Optionee
except to a living trust for the benefit of any or all of the Optionee's spouse
or descendants or to a deceased Optionee's executors, legal heirs, devisees,
administrators or testamentary trustees and beneficiaries, and the Options may
be exercised during the lifetime of the Optionee only by the Optionee. Except to
the extent provided above, the Options and this Option Agreement may not be
assigned, transferred, pledged, hypothecated or disposed of in any way (whether
by operation of law or otherwise) and shall not be subject to execution,
attachment or similar process.

     5.   EXERCISE OF OPTIONS. The Options shall be exercised in the manner set
forth in the Plan.

     6.   SPECIFIC RESTRICTIONS UPON OPTION SHARES. The Optionee hereby agrees
with the Company as follows:

     (a)  The Optionee is acquiring the Options and may acquire the Option
Shares for investment purposes only and not with a view to resale or other
distribution thereof to the public in violation of the Securities Act of 1933,
as amended (the "SECURITIES ACT"), and shall not dispose of any Options or
Option Shares in transactions which, in the opinion of counsel to the Company,
violate the Securities Act, or the rules and regulations thereunder, or any
applicable state securities or "blue sky" laws; and further

     (b)  If any Option Shares shall be registered under the Securities Act, no
public offering (otherwise than on a national securities exchange, as defined in
the Exchange Act) of any Option Shares shall be made by the Optionee (or any
other persons) under such circumstances that he or she (or such person) may be
deemed an underwriter, as defined in the Securities Act; and further

     (c)  The Company shall have the authority to endorse upon the certificate
or certificates representing the Option Shares such legends referring to the
foregoing restrictions, any restrictions resulting from the fact that the
Optionee is a party

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to the Stockholders' Agreement and any other applicable restrictions as it may
deem appropriate.

     (d)  The Optionee is, by reason of his, her or its business or financial
experience described below, capable of evaluating the merits and risks of this
investment and of protecting the Optionee's own interests in connection with the
acquisition of the Options and any purchase of Option Shares.

          List any information the Optionee believes is relevant in showing that
          he, she or it is able to evaluate adequately the risks and merits of
          this investment or has knowledge and experience in financial or
          business matters:

          Optionee is an executive officer of NCI.
          Optionee has had access to the Company's financial statements.
          Optionee has been afforded the opportunity to ask questions concerning
          the Options, the Company and NCI and has been supplied with all
          additional information deemed necessary by her to verify the accuracy
          of all information provided to her.

     7.   NOTICES. Any notice required or permitted under this Option Agreement
shall be deemed given (i) when delivered personally or by recognized overnight
courier, or (ii) when deposited in a United States Post Office as registered
mail, postage prepaid, addressed, as appropriate, either to the Optionee at his
or her address set forth below or such other address as he or she may designate
in writing to the Company, and to the Company at 2015 Vaughn Road, Building 300,
Kennesaw, GA 30144, Attention: President, or such other address as the Company
may designate in writing to the Optionee.

     8.   FAILURE TO ENFORCE NOT A WAIVER. The failure of the Company to enforce
at any time any provision of this Option Agreement shall in no way be construed
to be a waiver of such provision or of any other provision hereof.

     9.   GOVERNING LAW. This Option Agreement shall be governed by and
          construed in accordance with the laws of the State of New York,
          without giving effect to the conflict of laws principles thereof.

     10.  PROVISIONS OF PLAN. The Options provided for herein are granted
pursuant to the Plan, and said Options and this Option Agreement are in all
respects governed by the Plan and subject to all of the terms and provisions
thereof, whether such terms and provisions are incorporated in this Option
Agreement solely by reference or are expressly cited herein. A copy of the Plan
has been furnished to the Optionee, and the Optionee hereby acknowledges receipt
thereof.

                                      * * *

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     IN WITNESS WHEREOF, the Company has executed this Option Agreement on the
day and year first above written.

                                       NCI ACQUISITION CORPORATION

                                       By: /s/ MICHAEL LORD
                                           -------------------------------------
                                           Michael Lord

     The undersigned hereby accepts, and agrees to, all terms and provisions of
the foregoing Option Agreement.

                                       /s/ PAULA BOYER
                                       -----------------------------------------
                                       Signature

                                       Printed Name and Address:

                                       Paula Boyer

                                       5298 Happy Hollow Road
                                       Atlanta, GA 30360

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                                                                    Exhibit 10.4

                          PEMCO AVIATION GROUP, INC.
                        NONQUALIFIED STOCK OPTION PLAN
                                March 29, 1996
                            As Amended June 1, 1999

Section 1.  Purpose.  The purpose of the PEMCO AVIATION GROUP, INC. (the
            -------
"Company") Nonqualified Stock Option Plan (the "Plan") is to provide incentives
for selected persons to promote the financial success and progress of the
Company by granting such persons awards ("Awards") of incentives in the form of
options to purchase shares of the Company's Common Stock ("Options"), stock
appreciation rights ("SARs"), and Common Stock of the Company ("Stock Grants").
An Award may consist of one or a combination of such incentives and may be made
at any time or from time to time.

Section 2.  General Provisions.
            ------------------

        A.  Administration. The Plan shall be administered by the
            --------------
Compensation Committee, which shall be comprised of two or more independent
outside directors appointed by the Board of Directors (the "Committee").
Notwithstanding the foregoing, if it would be consistent with all applicable
laws, including, without limitation, Rule 16b-3 promulgated under the Securities
Exchange Act of 1934, as amended ("Rule 16b-3"), and the Internal Revenue Code
of 1986, as amended (the "Code"), and the regulations promulgated thereunder
(including, without limitation, the regulations relating to Section 162(m) of
the Code), then the Plan may be administered by the Board of Directors, and if
so administered all subsequent references to the Committee shall refer to the
Board of Directors. Any action of the Committee shall be taken by majority vote
or the unanimous written consent of the Committee members.

        B.  Authority of the Committee. Subject to other provisions of the
            --------------------------
Plan, and with a view towards furtherance of its purpose, the Committee shall
have sole authority and absolute discretion:

     1. to construe and interpret the Plan;
     2. to define the terms used herein;
     3. to prescribe, amend and rescind rules and regulations relating to the
        Plan;
     4. to determine the persons to whom Awards are granted;
     5. to determine the time or times at which Awards shall be granted;
     6. to determine the number of shares subject to each Award;
     7. to determine all of the other terms and conditions of the Options,
        SARs, and Stock Grants awarded hereunder; and
     8. to make all other determinations necessary or advisable for the
        administration of the Plan and to do everything necessary or
        appropriate to administer the Plan.

All decisions, determinations and interpretations made by the Committee shall be
binding and conclusive on all participants in the Plan and on their legal
representatives, heirs and beneficiaries.

        C.  Maximum Number of Shares Subject to the Plan. The maximum
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aggregate

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number of shares of Common Stock subject to the Plan shall be 1,000,000, subject
to adjustment as provided in Section 2.G of the Plan. The Common Stock subject
to the Plan may be divided among the various types of Awards as the Committee
determines in its sole discretion from time to time. For purposes of calculating
the maximum number of shares of Common Stock which may be issued under the Plan,
(a) all shares underlying an Option (including the shares, if any, withheld for
tax withholding requirements) shall be counted when cash is used as full payment
for shares issued upon exercise of the Option; (b) in the case of net exercise
of an Option, only the net shares issued (including the shares, if any, withheld
for tax withholding requirements) shall be counted when shares of Common Stock
are used as full or partial payment for shares issued upon exercise of an
Option; (c) all shares underlying an SAR (including the shares, if any, withheld
for tax withholding requirements) shall be counted upon exercise of an SAR; and
(d) all shares issued pursuant to a Stock Grant (including the shares, if any,
withheld for tax withholding requirements) shall be counted when the shares are
no longer subject to any conditions, such as a vesting schedule, and
certificates representing such shares have been issued and delivered. If any
Options or SARs granted under the Plan expire or terminate for any reason before
they have been exercised, the shares subject to such Options or SARs shall again
be available under the Plan.

          D.   Eligibility and Participation. Subject to the terms of the Plan,
               -----------------------------
Awards may be granted to such employees, officers, directors, consultants and
independent contractors of the Company or any Parent, Subsidiary or Affiliate of
the Company, as defined below, as the Committee may select from time to time in
its sole discretion. Employees of the Company are eligible to receive Awards for
no more than an aggregate of 500,000 shares of the Company's Common Stock per
employee under the Plan. If any Options or SARs granted to an employee expire
unexercised or terminate before vesting, they shall not be included in the
foregoing maximum aggregate of 500,000 shares per employee. The Committee, in
its sole discretion, shall determine the number of shares of the Company's
Common Stock covered by any Award made to executive officers or other employees
under the Plan. Grants to non-employee directors of the Company may only be made
pursuant to formula grants in the manner and amounts set forth in Section 7
hereof, provided that, if, and to the extent that, the Committee or the Board of
Directors could exercise authority to determine the amount, price and timing of
grants hereunder to its members, consistent with all applicable laws, including,
without limitation Rule 16b-3, grants to non-employee directors may be made by
the Committee or the Board of Directors as permitted by law. A person may be
granted more than one Award under the Plan. As used in the Plan, the following
terms shall have the following meanings:

               1.  "Parent" means any corporation (other than the Company) in an
                    ------
unbroken chain of corporations ending with the Company if, at the time of the
granting of an Award, each of such corporations other than the Company owns
stock possessing 50% or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain.

               2.  "Subsidiary" means any corporation (other than the Company)
                    ----------
in an unbroken chain of corporations beginning with the Company if, at the time
of granting of an Award, each of the corporations other than the last
corporation in the unbroken chain owns stock possessing 50% or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

               3.   "Affiliate" means any corporation that directly, or
                     ---------
indirectly through one or more intermediaries, controls or is controlled by, or
is under common control with, another corporation, where "control" (including
the terms "controlled by" and "under common control

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with") means the possession, direct or indirect, of the power to cause the
direction of the management and policies of the corporation, whether through the
ownership of voting securities, by contract or otherwise.

               4.  "Common Stock" means shares of the Company's $.0001 par value
                    ------------
common stock, or such other shares as are substituted pursuant to Section 2.G
hereof.

               E.   Effective Date of Plan. The Plan was adopted by the Company
                    ----------------------
in September 1989 and was amended April 17, 1992, May 17, 1994, May 29, 1996 and
May 12, 1997. On April 2, 1999, the Committee adopted the most recent amendments
to the Plan, which were submitted to the shareholders of the Company and
approved on June 1, 1999.

               F.  Termination and Amendment of Plan. The Plan shall terminate
                   ---------------------------------
on September 8, 2009. No Options, SARs, or Stock Grants shall be granted under
the Plan after that date. Subject to the limitation contained in Section 2.H of
the Plan, the Board or the Committee may at any time amend or revise the terms
of the Plan, including the form and substance of the Options, SARs, and Stock
Grants granted hereunder, provided that no such amendment or revision shall (i)
increase the maximum aggregate number of shares that may be issued pursuant to
Awards granted under the Plan, except as permitted under Section 2.G of the
Plan; or (ii) effect any change to the Plan which is required to be approved by
shareholders by law, including without limitation the regulations promulgated
under Section 162(m) of the Code.

               G.   Adjustments. If the outstanding shares of Common Stock are
                    -----------
increased, decreased, changed into or exchanged for a different number or kind
of shares or securities through merger, consolidation, combination, exchange of
shares, reorganization, recapitalization, reclassification, stock dividend,
stock split or reverse stock split, an appropriate and proportionate adjustment
shall be made in the maximum number and kind of shares as to which Options,
SARs, and Stock Grants may be granted under the Plan. A corresponding adjustment
shall be made to the number or kind of shares allocated to unexercised Options
and SARs, or portions thereof, and to unvested Options, SARs, and Stock Grants
granted prior to any such change. Any such adjustment in outstanding Options or
SARs shall be made without change in the aggregate purchase price applicable to
the unexercised portion of such Options or SARs, but with a corresponding
adjustment in the price for each share covered by the Options or SARs.

               H.   Prior Options and Obligations. No amendment, suspension or
                    -----------------------------
termination of the Plan shall, without the consent of the person who has
received an Award, alter or impair any of that person's Options or obligations
under any Award granted under the Plan prior to that amendment, suspension or
termination.

               I.   Privileges of Stock Ownership. Notwithstanding the exercise
                    -----------------------------
of any Option or SAR, or the receipt of any Stock Grant, granted pursuant to the
terms of the Plan, no person shall have any of the rights or privileges of a
shareholder of the Company with respect to any shares of stock until
certificates representing such shares have been issued and delivered. No shares
shall be required to be issued and delivered upon exercise of any Option or SAR,
or pursuant to a Stock Grant, until there has been compliance with all of the
requirements of law and of all regulatory agencies having jurisdiction over the
issuance and delivery of the securities.

               J.   Reservation of Shares of Common Stock. During the term of
                    -------------------------------------
the Plan, the Company will at all times reserve and keep available such number
of shares of its Common

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Stock as shall be sufficient to satisfy the requirements of the Plan. In
addition, the Company will from time to time, as is necessary to accomplish the
purposes of the Plan, seek or obtain from any regulatory agency having
jurisdiction any requisite authority in order to issue shares of common stock
hereunder. The inability of the Company to obtain from any regulatory agency
having jurisdiction the authority deemed by the Company's counsel to be
necessary to the lawful issuance of any Award or shares of its stock hereunder
shall relieve the Company of any and all liability with respect to the
nonissuance of the Award or the shares of Common Stock as to which the requisite
authority shall not have been obtained.

               K.   Tax Withholding. The exercise of any Option or SAR, and the
                    ---------------
receipt of any Stock Grant, is subject to the condition that if at any time the
Company shall determine, in its discretion, that the satisfaction of withholding
tax or other withholding obligations under any state or federal law is necessary
or desirable as a condition of, or in connection with, such exercise or delivery
or purchase of shares pursuant thereto, then in such event, the exercise of an
Option or SAR, or the receipt of a Stock Grant, shall not be effective unless
such withholding shall have been effected or obtained in a manner acceptable to
the Company.

               L.   Fair Market Value. The "fair market value" of the Common
                    -----------------
Stock means if there is an established market for the Company's Common Stock on
a stock exchange, in an over-the-counter market or otherwise, the mean of the
highest and lowest quoted selling prices on the valuation date, or (b) if there
were no such sales on the valuation date, then in accordance with Treasury
Regulation Section 20.2031-2 or successor regulations. With respect to the grant
of Options or SARs, unless otherwise specified by the Committee at the time of
grant, or in the Plan (as in the case of automatic grants to non-employee
directors pursuant to Section 7 hereof), the valuation date for purposes of
determining fair market value shall be the date of grant. The Committee may,
however, specify in any grant of an Option or SAR that, instead of the date of
grant, the valuation date shall be a valuation period of up to ninety (90) days
preceding the date of grant, and fair market value for purposes of such grant
shall be the average over the valuation period of the mean of the highest and
lowest quoted selling prices on each date on which sales were made in the
valuation period, provided, however, that if the Committee fails to specify a
valuation period and there were no sales on the date of grant then fair market
value shall be determined as if the Committee had specified a thirty (30) day
valuation period for such determination, unless there is no established market
for the Company's Common Stock in which case determination of fair market value
shall be in accordance with clause (b) above.

Section 3.
             -------

               A.   Option Price. The option price for shares acquired pursuant
                    ------------
to the exercise of any Option, in whole or in part, shall be determined by the
Committee at the time of the grant of the Option. Such option price may be less
than the fair market value of the Company's Common Stock on the date of grant,
but in no event shall the option price be less than fifty percent (50%) of the
fair market value of the Common Stock on the date of grant. The foregoing
notwithstanding, the option price of Options granted to officers or directors
shall be 100% of the fair market value of the Company's Common Stock on the date
of grant.

               B.   Exercise of Options. Each Option shall be exercisable in one
                    -------------------
or more installments during its term, and the right to exercise may be
cumulative, as determined by the Committee. No Option may be exercised for a
fraction of a share of Common Stock. The option price shall be

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paid at the time of exercise of the Option in cash or shares of the Company's
Common Stock, or in a combination thereof. If permitted by the Committee,
payment may also be made by delivering a properly executed notice together with
irrevocable instructions to a broker to promptly deliver to the Company the
amount of sale or loan proceeds attributable to the purchased shares needed to
pay the exercise price. If any portion of the purchase price at the time of
exercise is paid in shares of Common Stock, those shares shall be tendered at
their fair market value on the date of exercise. The Committee may also permit a
participant to effect a net exercise of an Option without tendering any shares
of the Company's Common Stock as payment for the Option. In such an event, the
participant will be deemed to have paid for the exercise of the Option with
shares of the Company's stock and shall receive from the Company a number of
shares equal to the difference between the shares that would have been tendered
and the number of Options exercised. The Committee may in its discretion and
subject to ratification by the entire Board of Directors, loan one or more
participants all or a portion of the exercise price, together with the amount of
any tax liability incurred by the participant as a result of the exercise of the
Option, for up to three (3) years with interest payable at the prime rate quoted
in the Wall Street Journal on the date of exercise. Non- employee directors may
receive such loans for the exercise of their Options without Committee approval
or Board ratification.

               C.   Acceleration of Options. Notwithstanding the first sentence
                    -----------------------
of Section 3.B of the Plan, if the Company or its shareholders enter into an
agreement to dispose of all or substantially all of the assets or stock of the
Company by means of a sale, merger or other reorganization, liquidation, or
otherwise, any Option granted pursuant to the Plan shall become immediately
exercisable with respect to the full number of shares subject to that Option
during the period commencing as of the date of the agreement to dispose of all
or substantially all of the assets or stock of the Company and ending when the
disposition of assets or stock contemplated by that agreement is consummated or
the Option is otherwise terminated in accordance with its provisions or the
provisions of the Plan, whichever occurs first; provided that no Option shall be
immediately exercisable under this Section on account of any agreement of merger
or other reorganization where the shareholders of the Company immediately before
the consummation of the transaction will own at least 50% of the total combined
voting power of all classes of stock entitled to vote of the surviving entity
(whether the Company or some other entity) immediately after the consummation of
the transaction. In the event the transaction contemplated by the agreement
referred to in this Section is not consummated, but rather is terminated,
canceled or expires, the Options granted pursuant to the Plan shall thereafter
be treated as if that agreement had never been entered into.

               D.   Written Notice Required. Any Option granted pursuant to the
                    -----------------------
Plan shall be exercised when written notice of that exercise has been given to
the Company at its principal office by the person entitled to exercise the
Option and full payment for the shares with respect to which the Option is
exercised has been received by the Company.

Section 4.     Reload Options.  Concurrently with the award of Options under the
               --------------
Plan, the Committee may authorize reload options ("Reload Options") to purchase,
for cash or shares, the number of shares of Common Stock used to exercise the
underlying Option.

               A.   Reload Option Amendment. Each notice evidencing the grant of
                    -----------------------
an Option shall state whether the Committee has authorized Reload Options with
respect to the underlying Option. Upon the exercise of an underlying Option, the
Reload Option will be evidenced by an

                                       5
<PAGE>

amendment to the notice of grant of the underlying Option. Reload Options shall
be subject to the terms and conditions in the underlying option agreement and
shall be subject to the terms and conditions set forth in the Plan.

          B.   Reload Option Price.  The option price per share of Common Stock
               -------------------
deliverable upon exercise of a Reload Option shall be the fair market value of a
share of Common Stock on the date of exercise of the underlying Option.

          C.   Term and Exercise. Each Reload Option is fully exercisable from
               -----------------
the date of exercise of the underlying Option and shall remain exercisable for
the remaining term of the underlying Option. Reload Options may be exercised in
the same manner as the underlying Options in accordance with the Plan.

          D.   Termination of Employment. No additional Reload Options shall be
               -------------------------
granted to participants in the Plan when an Option or Reload Option is exercised
pursuant to the terms of the Plan following termination of the participant's
employment or the cessation of the participant's service to the Company as a
director, consultant or independent contractor.

Section 5.     Stock Appreciation Rights. The Committee may, from time to time
               -------------------------
in its sole discretion, grant SARs in addition to or in conjunction with Options
granted hereunder, either at the time of the grant of the Options or at any
subsequent time during the term of the Options. Subject to the terms of the
Plan, the Committee shall determine and designate the recipients of SARs, the
dates SARs are granted, the number of shares subject to SARs, the duration of
each SAR, and whether SARs are alternative to any previously or
contemporaneously granted Option or Reload Option ("Related Options"). SARs
shall be subject to the terms and conditions and evidenced by agreements in the
form determined from time to time by the Committee.

          A.   Value of SARs. SARs shall entitle their holders to receive a
               -------------
number of shares of the Company's Common Stock equal to (i) the excess of the
fair market value of a share of the Company's Common Stock on the date of
exercise over a specified price fixed by the Committee, which price may not be
less than 100% of the fair market value of a share of Common Stock on the date
of the grant, multiplied by (ii) the number of shares as to which the holder is
exercising the SAR.

          B.   Duration. The term of an SAR granted as an alternative to an
               --------
Option will be the same as the term of its Related Option; upon exercise of the
SAR, the Related Option will terminate, and upon exercise of the Related Option,
the SAR will terminate. The term of an SAR granted in addition to and separately
from any Option shall be specified by the Committee at the time such SAR is
granted.

          C.   Exercise of SARs. SARs may be exercised according to their terms
               ----------------
by providing written notice to the Company at any time prior to the expiration
of the SAR. No SAR may be exercised for a fraction of a share of Common Stock.
If the SAR is alternative to an Option, the Related Option shall be deemed
terminated to the extent the SAR is exercised.

Section 6.     Stock Grants.  The Committee may, from time to time in its sole
               ------------
discretion, grant shares of the Company's Common Stock under the Plan.  Such
Stock Grants may be awarded with or without conditions, such as vesting
schedules or performance requirements.  Recipients of Stock Grants will not be
required to pay for the acquisition of the Company's Common Stock

                                       6
<PAGE>

but will be subject to tax consequences and resale restrictions.

Section 7.  Grants to Outside Directors.  Except as provided in Section 2.D
            ---------------------------
hereof, the Committee shall have no discretion to determine the amount, price or
timing of grants of Awards to directors who are not employees of the Company.
Grants of Awards hereunder to directors who are not employees of the Company
shall be granted on December 10 of each year without further action by the
Committee.  Each such grant shall be for one share of Common Stock for each two
dollars of director's compensation to include retainer plus four Board meetings
paid to the director during the calendar year, but not to include any additional
compensation for committee meetings attended not held in conjunction with Board
meetings or for additional Board meetings attended beyond four; such amount to
be reduced accordingly if less than four Board meetings attended.  The exercise
price for Options granted to outside directors shall be 100% of the fair market
value of the Common Stock on the date of grant calculated in accordance with
Section 2.L hereof with a valuation period of thirty (30) days. Each Option
granted in accordance with this Section shall include authorization for a Reload
Option in accordance with Section 4 of the Plan.

Section 8.  Terms and Conditions May Differ.   The terms and conditions of
            -------------------------------
Awards granted under the Plan may differ as the Committee shall in its
discretion determine so long as all Awards satisfy the requirements of the Plan.

Section 9.  Duration of Options and SARs.  Each Option and each SAR granted
            ----------------------------
pursuant to the Plan shall expire on the date determined by the Committee which
shall be not later than ten years after the date of grant and shall be subject
to early termination as provided in the Plan.  Subject to the foregoing, Options
granted to outside directors pursuant to Section 7 hereof shall be fully vested
on the date of grant and shall be exercisable for a period of ten years.

Section 10. Limitations on Acquiring Voting Stock.  No Award may be granted to
            -------------------------------------
persons who are not officers or directors of the Company if such Award would
cause that person to hold, beneficially or of record, in excess of 5% of the
outstanding voting stock of the Company.

Section 11. Compliance with Securities Laws.  Shares of Common Stock shall not
            ------------------------------
be issued with respect to any Award granted under the Plan unless the issuance
and delivery of the shares pursuant thereto shall comply with all relevant
provisions of state and federal law, including without limitation the Securities
Act of 1933, as amended, the rules and regulations promulgated thereunder and
the requirements of any stock exchange upon which the shares may then be listed,
and shall be further subject to the approval of counsel for the Company with
respect to such compliance.  Further, each recipient of an Award hereunder shall
consent to the imposition of a legend on the certificate representing the shares
of Common Stock issued hereunder restricting the transferability of such shares
as required by law, the Award, or by the Plan.

Section 12. Employment.  Each recipient of an Award, if requested by the
            ----------
Committee, must agree in writing as a condition of the granting of his or her
Award, to remain in the employ of the Company or to remain as a consultant to
the Company, or any of its Subsidiaries, following the date of the granting of
that Award for a period or periods specified by the Committee, which period(s)
shall in no event exceed an aggregate of four years.  Nothing in the Plan or in
any Award granted hereunder shall confer upon any Award recipient any right to
continued employment or retainer by the Company or any of its Subsidiaries, or
limit in any way the right

                                       7
<PAGE>

of the Company or any Subsidiary at any time to terminate or alter the terms of
that employment or consulting arrangement.

Section 13.    Rights Upon Termination of Employment, Director, Consultant or
               --------------------------------------------------------------
Independent Contractor Status.  If an Award recipient ceases to be employed by
------------------------------
the Company or ceases to serve as a director, consultant or independent
contractor of the Company, or any Subsidiary, for any reason other than death or
retirement, his or her Award shall terminate one year from the date of the Award
recipient ceases to be employed by or serve as a director, consultant or
independent contractor of the Company; provided that the Committee may, in its
discretion, allow Options and SARs to remain exercisable (to the extent
exercisable on the date of termination of employment or retainer) for up to one
additional year for each year of service to the Company by the Award recipient
(up to a maximum of five years after the date of termination), unless the
Option, SAR, or the Plan otherwise provides for earlier termination; and
provided further that, for purposes of determining when a director no longer
serves the Company, the period during which post-retirement or similar benefits
are paid to the director by the Company shall be deemed to be continued service.

Section 14.    Rights Upon Death. Except as otherwise limited by the Committee
               -----------------
at the time of the grant of an Option or SAR, if the recipient dies while he or
she is an employee, director or consultant of the Company or any Subsidiary, his
or her Options and SARs shall remain exercisable for one year after the date of
death, unless the Options, SARs, or the Plan otherwise provide for earlier
termination. During such exercise period after death, Options and SARs may be
fully exercised, to the extent that they remain unexercised on the date of the
recipient's death, by the person or persons to whom the recipient's rights to
the Options or SARs shall pass by will or by laws of descent and distribution.

Section 15.  Waiver of Vesting Restrictions in the Event of Retirement.
             ---------------------------------------------------------
Notwithstanding any provision of the Plan, in the event an Award recipient
retires as an employee or director of the Company, or any Subsidiary, the
Committee shall have the discretion to waive any vesting restrictions on the
retiree's Options, SARs, or Stock Grants.

Section 16.    Awards Not Transferable.  Awards granted pursuant to the Plan may
               -----------------------
not be sold, pledged, assigned or transferred in any manner otherwise than by
will or the laws of descent and distribution.  During the lifetime of the Award
recipient, Options and SARs may only be exercised by that recipient or by his or
her guardian or legal representative.

Section 17.    Reports to Shareholders.  Upon written request, the Company shall
               -----------------------
furnish to each Award recipient a copy of its most recent Form 10-K Annual
Report and each quarterly report to shareholders issued since the end of the
Company's most recent fiscal year.

                                       8

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