Document:

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                                                                    EXHIBIT 10.1

                                   LANCE, INC.

                             1991 STOCK OPTION PLAN
                      (As amended through October 21, 2004)

     1. Purpose.  This Plan is intended to aid the Corporation and its
Subsidiaries in maintaining and developing strong management through encouraging
Key Employees and stimulating their efforts by giving suitable recognition, in
addition to salaries, to the ability and industry which contributes materially
to the success of the business of the Corporation and its Subsidiaries, and in
connection with the aforesaid to encourage the ownership by Key Employees of the
Corporation's Common Stock so as to increase their proprietary interest in the
success of the Corporation and its Subsidiaries. To this end, Incentive Stock
Options, Non-Qualified Stock Options and Stock Appreciation Rights may be
granted under the Plan.

     2. Definitions.  Whenever used in the Plan, unless the context clearly
indicates otherwise, the following terms shall have the following meanings:

          (a) Board or Board of Directors means the Board of Directors of the
     Corporation.

          (b) Change of Control means the acquisition or contracting to acquire
     or otherwise control beneficial ownership of in excess of thirty-five
     percent (35%) of the then outstanding voting securities of the Corporation
     by any person, corporation or other entity and its "affiliates" (as defined
     in Rule 12b-2 promulgated under the Securities Exchange Act of 1934, as
     amended from time to time) excluding, however, for purposes of determining
     such ownership (but not the number of shares outstanding) voting securities
     beneficially owned by members of the Van Every Family and any trust
     custodian or fiduciary account for the benefit of any one or more members
     of the Van Every Family. Van Every Family means the lineal descendants of
     Salem A. Van Every, Sr. (whether by blood or adoption) and their spouses.

          (c) Code means the Internal Revenue Code of 1986.

          (d) Common Stock means the $.83-1/3 par value Common Stock of the
     Corporation and any other stock or securities resulting from the adjustment
     thereof or substitution therefor as described in Paragraph 9 below.

          (e) Corporation means Lance, Inc., a North Carolina corporation.

          (f) Disability means the condition which results when an individual
     has become permanently and totally disabled within the meaning of Section
     22(e)(3) of the Code.

          (g) Fair Market Value, with respect to a share of the Common Stock at
     a particular time, shall be that value as determined by the Stock Option
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     Committee which shall be (i) if such Common Stock is listed on a national
     securities exchange or traded on the National Market System, the mean
     between the highest price and the lowest price at which the Common Stock
     shall have been sold regular way on a national securities exchange or the
     National Market System on said date, or, if no sales occur on said date,
     then on the next preceding date on which there were such sales of Common
     Stock, or (ii) if the Common Stock shall not be listed on a national
     securities exchange or traded on the National Market System, the mean
     between the bid and asked prices last reported by the National Association
     of Securities Dealers, Inc. for the over-the-counter market on said date
     or, if no bid and asked prices are reported on said date, then on the next
     preceding date on which there were such quotations or (iii) if at any time
     quotations for the Common Stock shall not be reported by the National
     Association of Securities Dealers, Inc. for the over-the-counter market and
     the Common Stock shall not be listed on any national securities exchange or
     traded on the National Market System, the fair market value determined by
     the Stock Option Committee on the basis of available prices for such Common
     Stock or in such other manner as the Stock Option Committee may deem
     reasonable.

          (h) Incentive Stock Option means an option to purchase shares of
     Common Stock which is granted under the Plan and which qualifies as an
     incentive stock option under Section 422 of the Code.

          (i) Key Employee means a regular employee, whether or not a director,
     of the Corporation or a Subsidiary who is an officer or in a managerial or
     other key position, as determined by the Stock Option Committee, and who,
     in the opinion of the Stock Option Committee, has demonstrated a capacity
     for contributing in a substantial measure to the success of the business
     and operations of the Corporation or a Subsidiary.

          (j) Non-Qualified Option means an option to purchase shares of Common
     Stock which is granted under the Plan and which is not an Incentive Stock
     Option.

          (k) Parent means a "parent corporation" within the meaning of Section
     424(e) of the Code and the Regulations thereunder.

          (l) Plan means the Lance, Inc. 1991 Stock Option Plan as set forth in
     this instrument, as the same may be amended from time to time.

          (m) Regulations means regulations promulgated by the United States
     Department of Treasury and in effect with respect to the Code.

          (n) Retirement means the termination of an employee's employment with
     the Corporation, its Subsidiaries and any Parent at any time on or after
     the last day of the fiscal year of the Corporation in which the employee
     attains the age of 60 years.

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          (o) Stock Appreciation Right means the right of the holder of an
     unexercised option granted under the Plan to receive, pursuant to the terms
     of such holder's Stock Appreciation Right Agreement, either cash or a
     number of shares of Common Stock based on the increase in the value of the
     optioned shares, as more particularly described in Paragraph 10 below.

          (p) Stock Appreciation Right Agreement means the written agreement
     between a Key Employee and the Corporation evidencing the grant of a Stock
     Appreciation Right under the Plan and setting forth the terms and
     conditions thereof; such Stock Appreciation Right Agreement may be combined
     in the same document with a Stock Option Agreement between the Key Employee
     and the Corporation.

          (q) Stock Option Agreement means the written agreement between a Key
     Employee and the Corporation evidencing the grant of an option under the
     Plan and setting forth the terms and conditions thereof and expressly
     stating whether the option granted therein is an Incentive Stock Option or
     a Non-Qualified Option; such Stock Option Agreement may be combined in the
     same document with a Stock Appreciation Right Agreement between the Key
     Employee and the Corporation.

          (r) Stock Option Committee means a committee of the Board of Directors
     appointed by the Board to administer the Plan and perform the functions set
     forth herein for the Stock Option Committee, which committee shall be
     composed of two or more members of the Board who are all "disinterested
     persons" within the meaning of Section 240.16b-3 of the regulations issued
     under the Securities Exchange Act of 1934.

          (s) Subsidiary means a "subsidiary corporation" within the meaning of
     Section 424(f) of the Code and the Regulations thereunder.

          (t) Successor Corporation means a corporation, or a parent or
     subsidiary corporation of such corporation, which issues or assumes a stock
     option in a transaction to which Section 424(a) of the Code applies.

Further, unless the context or an express reference indicates otherwise, the
term "option" as used in the Plan refers to both Incentive Stock Options and
Non-Qualified Stock Options.

     3. Administration.  The Plan shall be administered by the Stock Option
Committee. The Stock Option Committee shall have all of the powers necessary to
enable it properly to carry out its duties under the Plan, and not in limitation
of the foregoing, the Stock Option Committee shall have the power and duty to
construe and interpret the Plan and to determine all questions that shall arise
under the Plan, which interpretations and determinations shall be conclusive and
binding upon all persons. The Stock Option Committee may establish from time to
time such regulations, provisions, procedures and conditions of the options and
Stock Appreciation Rights,

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and the grants thereof, which in its opinion may be advisable in the
administration of the Plan. The Stock Option Committee shall keep minutes of its
meetings. A majority of the Stock Option Committee shall constitute a quorum,
and the acts of a majority of the members present at any meeting at which a
quorum is present, or acts approved in writing by the entire Stock Option
Committee, shall be the acts of the entire Stock Option Committee.

     4. Eligibility.  Only Key Employees shall be eligible to be granted options
to purchase the Corporation's Common Stock under the Plan and to be granted
Stock Appreciation Rights under the Plan. The Stock Option Committee shall, from
time to time, determine (i) those Key Employees to whom options and Stock
Appreciation Rights shall be granted, (ii) whether the options to be granted
shall be Incentive Stock Options or Non-Qualified Options and (iii) the number
of shares and conditions of each such option and Stock Appreciation Right. The
Stock Option Committee shall then grant such options and Stock Appreciation
Rights. No member of the Stock Option Committee while serving as such shall be
eligible to receive any option or Stock Appreciation Right hereunder of the
Corporation or any Parent or Subsidiary entitling the participants therein to
acquire stock or options to purchase Common Stock or the stock or securities of
any Parent or Subsidiary. Further, no Key Employee shall be eligible to receive
any option hereunder who, within the meaning of Section 422(b)(6) of the Code,
at the time the option is granted owns stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the
Corporation or of its Parent or Subsidiary corporations.

     5. Shares Available for Option.  The Board of Directors shall reserve for
the purposes of the Plan, out of the authorized but unissued Common Stock, a
total of 400,000 shares of Common Stock (or the number and kind of shares of
stock or other securities which, in accordance with Paragraph 9 of the Plan,
shall be substituted for such 400,000 shares or to which said 400,000 shares
shall be adjusted). The number of shares of Common Stock with respect to which
options may be granted hereunder shall not exceed 400,000 (subject to adjustment
in accordance with said Paragraph 9), which options in the discretion of the
Stock Option Committee may be either Incentive Stock Options or Non-Qualified
Options or a combination of both. No Key Employee shall be granted one or more
options under this Plan for an aggregate number of shares in excess of ten
percent (10%) of the total number of shares permitted to be granted under the
Plan, subject to adjustment as provided in Paragraph 9 of the Plan. In the event
that an option granted under the Plan to any Key Employee expires or is
terminated unexercised as to any shares covered thereby, such shares shall
thereafter be available for the granting of options under the Plan.

     6. Grant of Options.  Subject to the provisions of the Plan, the Stock
Option Committee shall have full and final authority to select the Key Employees
to whom options or Stock Appreciation Rights shall be awarded and to determine
(i) the number of shares to be covered by each option, (ii) whether the option
to be granted shall be an Incentive Stock Option or a Non-Qualified Option,
(iii) whether and the extent to which Stock Appreciation Rights shall be granted
with respect to an option and (iv) the consideration to the Corporation for the
granting of options and Stock Appreciation Rights, as well as the conditions, if
any, which it may deem appropriate to ensure that such consideration will be
received by, or will accrue to, the Corporation. In the discretion of the Stock
Option Committee such consideration need not be the

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same, but may vary for options and Stock Appreciation Rights granted under the
Plan at the same time or from time to time. The Stock Option Committee may grant
more than one option and related Stock Appreciation Right to a Key Employee
during the term of the Plan, and any such option and related Stock Appreciation
Right may be in addition to, or in substitution for, one or more options and
related Stock Appreciation Right previously granted. Each option shall be
confirmed by a Stock Option Agreement, and each Stock Appreciation Right shall
be confirmed by a Stock Appreciation Right Agreement. Subject to the terms and
conditions and within the limitations of the Plan, the Stock Option Committee
may modify, extend, replace or renew outstanding options and Stock Appreciation
Rights granted under the Plan, or accept the surrender of outstanding options
and Stock Appreciation Rights under the Plan (to the extent not theretofore
exercised) and grant new options and Stock Appreciation Rights in substitution
therefor (to the extent not theretofore exercised). Notwithstanding the
foregoing, however, no modification of an option or Stock Appreciation Right
shall, without the consent of the affected optionee, alter or impair any rights
or obligations under any option or Stock Appreciation Right theretofore granted
under the Plan.

     7. Option Price.  The Stock Option Committee shall establish the option
price at the time an option is granted. An Incentive Stock Option shall have an
option price per share of Common Stock not less than 100% of the Fair Market
Value per share of Common Stock subject to said option at the time said option
is granted. The option price of Non-Qualified Options granted hereunder may in
the discretion of the Stock Option Committee, be greater than, less than or
equal to the Fair Market Value per share of Common Stock at the time such
options are granted.

     8. Exercise of Options.

     (a) Subject to the further provisions of this Paragraph 8, each option
granted under the Plan shall be exercisable at such times and on such conditions
as may be determined by the Stock Option Committee at the time of the grant. In
the event any option is exercisable in installments, the right to purchase
shares pursuant to the exercise of the option shall be cumulative, so that when
the right to purchase any shares has accrued, such shares or any part thereof
may be purchased at any time thereafter until the expiration or termination of
the option.

     (b) Each option granted under the Plan by its terms shall require the Key
Employee granted such option to remain in the continuous employ of the
Corporation or a Parent or Subsidiary for at least six months from the date of
the grant of such option before the right to exercise any part of such option
will accrue.

     (c) The Stock Option Committee shall determine the term of each option at
the time of the grant; however, no Incentive Stock Option granted hereunder
shall be exercisable after the expiration of ten (10) years from the date it is
granted.

     (d) Each option granted hereunder by its terms shall be exercisable in full
after the expiration of the required period of continuous service of not less
than six months set forth in the Stock Option Agreement in the event of a Change
of Control.

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     (e) Not less than 100 shares of the Common Stock may be purchased at any
one time upon the exercise of an option unless the number of shares purchased is
the total number at such time purchasable under the option.

     (f) Options granted under the Plan shall not be transferable by the
optionee otherwise than by will, or if the optionee dies intestate, by the laws
of descent and distribution of the state of the optionee's domicile at the time
of the optionee's death, and such options shall be exercisable during such
optionee's lifetime only by such optionee.

     (g) (i) If the employment of an optionee by the Corporation, a Parent or
Subsidiary of the Corporation, or a Successor Corporation shall terminate
otherwise than by (A) such optionee's voluntary resignation with the consent of
the Corporation, a Parent or Subsidiary of the Corporation, or a Successor
Corporation (of which the Stock Option Committee shall be the sole judge), (B)
such optionee's Retirement or (C) such optionee's death or Disability, then such
optionee's rights under all then outstanding options and Stock Appreciation
Rights shall terminate immediately.

          (ii) If after the period referred to in Paragraph 8(b) above an
optionee shall voluntarily terminate such optionee's employment with the
Corporation, a Parent or Subsidiary of the Corporation, or a Successor
Corporation with the consent of the Corporation, a Parent or Subsidiary of the
Corporation, or a Successor Corporation (of which the Stock Option Committee
shall be the sole judge) and otherwise than by Retirement, then all options and
Stock Appreciation Rights held by such optionee at the time of such termination
of employment shall be exercisable by such optionee but only (A) if and to the
extent the same were exercisable at the time of such termination of employment
and (B) prior to the earlier of (a) the expiration dates of such options and
Stock Appreciation Rights and (b) that date which is three months from the date
of such termination of employment, such three month period to include the date
that such termination of employment occurs.

          (iii) If the employment of an optionee by the Corporation, a Parent or
Subsidiary of the Corporation, or a Successor Corporation shall terminate after
the period referred to in Paragraph 8(b) above and by reason of such optionee's
Retirement, then all options and Stock Appreciation Rights held by such optionee
on the date of such termination of employment shall be exercisable in full,
whether or not exercisable on the date of such termination of employment, at any
time prior to the earlier of (A) the expiration dates of such options and Stock
Appreciation Rights or (B) that date which is three months from the date of such
termination of employment, such three month period to include the date that such
termination of employment occurs.

          (iv) If the employment of an optionee by the Corporation, a Parent or
Subsidiary of the Corporation, or a Successor Corporation shall terminate after
the period referred to in Paragraph 8(b) above and by reason of such optionee's
death or Disability, then all options and Stock Appreciation Rights held by such
optionee on the date of such termination of employment shall be exercisable in
full, whether or not exercisable on the date of such termination of employment,
at any time prior to the earlier of (A) the expiration dates of such options and
Stock Appreciation Rights or (B) that date which is one year from the date of
such termination of employment, such one year period to include the date that
such termination of employment

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occurs. In the event of the death of an optionee, such optionee's options and
Stock Appreciation Rights shall be exercisable to the extent herein otherwise
provided by the executor or any other person that may be empowered to do so
under the optionee's will, or, if the optionee shall fail to make a testamentary
disposition of said option and Stock Appreciation Rights or shall die intestate,
by the optionee's legal representative.

     (h) The option price for each share of Common Stock purchased pursuant to
the exercise of each option shall, at the time of the exercise of the option, be
paid in full (i) in cash or (ii) with the consent of the Stock Option Committee,
in whole or in part in shares of Common Stock. If shares of Common Stock are
accepted in payment of any part of the option price, such shares for such
purpose shall be valued at the Fair Market Value of such shares on the date of
exercise. Any such shares of Common Stock so accepted in payment of any part of
the option price shall not serve to increase the number of shares of Common
Stock otherwise available for issuance under the Plan. Each purchased share
shall be issued and delivered to the person entitled thereto at Charlotte, North
Carolina.

     (i) To the extent that an option is not exercised within the period of time
prescribed therefor as set forth in the Plan and the Stock Option Agreement
confirming such option, the option shall lapse and all rights of the optionee
thereunder shall terminate. The exercise of Non-Qualified Options granted
hereunder shall not affect the exercise of Incentive Stock Options granted
hereunder or vice versa.

     9. Adjustment of Number of Shares.  (a) In the event that a dividend shall
be declared upon the Common Stock payable in shares of Common Stock, the number
of shares of Common Stock then subject to any such option and the number of
shares reserved for issuance pursuant to the Plan but not yet covered by an
option shall be adjusted by adding to each such share the number of shares which
would be distributable thereon if such share had been outstanding on the date
fixed for determining the shareholders entitled to receive such stock dividend.
In the event that the outstanding shares of Common Stock shall be changed into
or exchanged for a different number or kind of shares of stock or other
securities of the Corporation or of another corporation, or changed into or
exchanged for cash or property or the right to receive cash or property (but not
including any dividend payable in cash or property other than a liquidating
distribution), whether through reorganization, recapitalization, stock split-up,
combination of shares, merger or consolidation, then there shall be substituted
for each share of Common Stock subject to any such option and for each share of
Common Stock reserved for issuance pursuant to the Plan but not yet covered by
an option, the number and kind of shares of stock or other securities or cash or
property or right to receive cash or property into which each outstanding share
of Common Stock shall be so changed or for which each such share shall be
exchanged. In the event there shall be any change, other than as specified above
in this Paragraph 9, in the number or kind of outstanding shares of Common Stock
or of any stock or other securities into which such Common Stock shall have been
changed or for which it shall have been exchanged, then if the Stock Option
Committee shall in its sole discretion determine that such change equitably
requires an adjustment in the number or kind of shares theretofore reserved for
issuance pursuant to the Plan but not yet covered by an option and of the shares
then subject to an option or options, such adjustment shall be made by the Stock
Option Committee and shall be effective and binding for all purposes of the Plan
and each Stock Option Agreement

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entered into under the Plan. In the case of any such substitution or adjustment
as provided for in this Paragraph 9 the option price in each Stock Option
Agreement for each share covered thereby prior to such substitution or
adjustment will be the option price for all shares of stock or other securities
or cash or property or right to receive cash or property which shall have been
substituted for such share or to which such share shall have been adjusted
pursuant to this Paragraph 9. No adjustment or substitution provided for in this
Paragraph 9 shall require the Corporation in any Stock Option Agreement to issue
a fractional share and the total substitution or adjustment with respect to each
Stock Option Agreement shall be limited accordingly.

     (b) In the event of (i) a dissolution or liquidation of the Company, (ii) a
sale of all or substantially all of the Company's assets, (iii) a merger or
consolidation involving the Company in which the Company is not the surviving
corporation or (iv) a merger or consolidation involving the Company in which the
Company is the surviving corporation but the holders of shares of the Company's
Common Stock receive securities of another corporation and/or other property,
including cash, the Stock Award Committee (as successor to the Stock Option
Committee) shall, in its absolute discretion, have the power to cancel,
effective immediately prior to the occurrence of such event, each option
(whether an Incentive Stock Option or a Non-Qualified Option) and each Stock
Appreciation Right outstanding immediately prior to such event (whether or not
then exercisable) and, in consideration of such cancellation, the Company will
pay to the Participant an amount in cash for each share of Common Stock subject
to such option or Stock Appreciation Right equal to the excess of (A) the value
as determined by the Stock Award Committee, in its absolute discretion, of the
property (including cash) received by the holder of one share of Common Stock as
a result of such event over (B) the exercise price of such option or Stock
Appreciation Right; or provide for the exchange of each option and Stock
Appreciation Right outstanding immediately prior to such event (whether or not
then exercisable) for an option on or stock appreciation right with respect to,
as appropriate, some or all of the property which a holder of the number of
shares of Common Stock subject to such option or Stock Appreciation Right would
have received in such transaction and, incident thereto, make an equitable
adjustment as determined by the Stock Award Committee, in its absolute
discretion, in the exercise price of the option or stock appreciation right, or
the number of shares or amount of property subject to the option or stock
appreciation right or, if appropriate, provide for a cash payment to the
Participant to whom such option or Stock Appreciation Right was granted in
partial consideration for the exchange of the option or Stock Appreciation
Right.

     10. Stock Appreciation Rights.  A Stock Appreciation Right may be granted
with respect to any option granted under the Plan. Such Stock Appreciation Right
may be granted contemporaneously with the grant of an option or at any time
after an option is granted. Such Stock Appreciation Right may be exercised by
surrendering the related option or applicable portion thereof, and to the extent
options have been so surrendered, they shall no longer be exercisable. Stock
Appreciation Rights shall be subject to the following terms and conditions:

          (a) A Stock Appreciation Right shall be exercisable to the extent, and
     only to the extent, the related option is exercisable, and Stock
     Appreciation Rights shall not be exercisable unless (i) the related option
     surrendered to the

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     Corporation in connection therewith is for at least 100 shares of Common
     Stock or (ii) all of the Stock Appreciation Rights then exercisable are
     exercised in full;

          (b) A Stock Appreciation Right shall entitle the optionee to surrender
     to the Corporation unexercised the related option or any portion thereof
     and to receive from the Corporation in exchange therefor the value thereof,
     which value shall be that amount equal to (i) the excess of the Fair Market
     Value on the date of the exercise of the Stock Appreciation Right of one
     share of Common Stock over the purchase price per share specified in such
     option, multiplied by (ii) the number of shares of Common Stock subject to
     the option, or portion thereof, which is so surrendered;

          (c) Upon the exercise of a Stock Appreciation Right, the Stock Option
     Committee shall have the sole and exclusive discretion to determine the
     form in which payment of the said value thereof shall be made to the
     optionee, which form of payment may be in cash, Common Stock valued at its
     Fair Market Value on the date of the exercise of the Stock Appreciation
     Right or any combination thereof;

          (d) No fractional shares shall be issued upon the exercise of a Stock
     Appreciation Right;

          (e) A Stock Appreciation Right granted under the Plan shall not be
     transferable by the optionee otherwise than by will, or if the optionee
     dies intestate, by the laws of descent and distribution of the state of the
     optionee's domicile at the time of the optionee's death, and such Stock
     Appreciation Right shall be exercisable during such optionee's lifetime
     only by such optionee;

          (f) A Stock Appreciation Right shall be subject to such other terms
     and conditions not inconsistent with the Plan as shall be determined from
     time to time by the Stock Option Committee;

          (g) If at the close of business on the last business day within the
     term of a Stock Appreciation Right such Stock Appreciation Right is
     exercisable under the terms of the Plan and if the optionee holding such
     Stock Appreciation Right has not exercised the related option in full then
     such Stock Appreciation Right or any portion thereof which is related to
     the unexercised portion of an option shall be automatically exercised in
     full;

          (h) A Stock Appreciation Right may be exercised only when the Fair
     Market Value of the shares of Common Stock subject to the related option
     exceeds the option price of such shares; and

          (i) Each Stock Appreciation Right granted under the Plan by its terms
     shall require the Key Employee granted such Stock Appreciation Right to
     remain in the continuous employ of the Corporation or a Parent or
     Subsidiary for at least

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     six months from the date of the grant of such Stock Appreciation Right
     before the right to exercise any part of such Stock Appreciation Right will
     accrue.

Upon the exercise of a Stock Appreciation Right, the option or part thereof to
which such Stock Appreciation Right is related shall be forfeited, and such
forfeiture shall have the effect of an exercise of the option for the purpose of
the limitation imposed on the number of shares of Common Stock to be issued
under the Plan or to any Key Employee under Paragraph 5 above. Upon the exercise
or partial exercise of an option, any related Stock Appreciation Right shall be
forfeited to the extent of such exercise.

     11. Amendment of Plan.  The Board of Directors shall have the right to
amend, suspend or terminate the Plan at any time provided that except as and to
the extent authorized and permitted by Paragraph 9 above, no amendment shall be
made which shall (i) increase the total number of shares which may be issued and
sold pursuant to options or Stock Appreciation Rights granted under the Plan,
(ii) decrease the minimum option price in the case of Incentive Stock Options,
(iii) change the class of employees eligible to receive options or (iv) withdraw
the administration of the Plan from a committee of Directors, none of whom is
eligible to be allotted stock or to receive options under the Plan, unless such
amendment is made by or with the approval of the shareholders of the
Corporation. Notwithstanding the foregoing, the Board of Directors shall have
the right without shareholder approval to amend the Plan in any manner necessary
to qualify the Plan as a plan under which Incentive Stock Options may be granted
or to change the Plan in any manner not previously permitted by the Code for
Incentive Stock Options, but authorized by amendments to the Code enacted
subsequent to the effective date of the Plan, regardless of whether such
amendment is mandatory or permissive under the Code, or expands or restricts the
Plan, unless such shareholder approval is required by the Code, Regulations or
by any other applicable law.

     12. Indemnification of Stock Option Committee.  The members of the Stock
Option Committee shall be indemnified by the Corporation to the fullest extent
permitted by North Carolina law.

     13. Compliance with Law and Other Conditions.  No shares shall be issued
pursuant to the exercise of any option or Stock Appreciation Right granted under
the Plan prior to compliance by the Corporation to the satisfaction of its
counsel with any applicable laws or Regulations.

     14. Good Faith Attempts.  To the extent consistent with Section 422(c)(1)
of the Code and the Regulations thereunder, the requirement set forth in
Paragraph 7 of the Plan that the option price of an Incentive Stock Option
granted under the Plan be not less than 100% of the Fair Market Value of the
Common Stock subject to such option at the time such option is granted shall be
considered to have been met if the Stock Option Committee has made a good faith
attempt to meet the requirements of Section 422(b)(4) of the Code and the
Regulations thereunder, as applicable, and such requirements are considered to
have been met pursuant to Section 422(c)(1) of the Code.

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     15. Construction.  It is intended that all Incentive Stock Options granted
under the Plan shall constitute "incentive stock options" under Section 422 of
the Code and to that end the Plan and all Stock Option Agreements providing for
Incentive Stock Options entered into pursuant to the Plan shall be construed and
interpreted so that all Incentive Stock Options granted under the Plan shall
constitute "incentive stock options" within the meaning of Section 422 of the
Code.

     16. Effective Date and Duration of Plan.  The effective date of the Plan
shall be February 19, 1991, the date on which it was adopted by the Board,
subject to the approval and ratification of the Plan by the shareholders of the
Corporation at the next meeting of the shareholders to be held no later than
February 18, 1992, by affirmative vote of the holders of a majority of those
shares of the Common Stock present or represented and entitled to vote at the
meeting. No options may be granted under the Plan subsequent to February 18,
2001.

                                       11<PAGE>
                                                                    EXHIBIT 10.3

                                   LANCE, INC.

                           1997 INCENTIVE EQUITY PLAN
                      (As amended through October 21, 2004)

                                TABLE OF CONTENTS

<TABLE>
<S>           <C>                                                             <C>
SECTION 1.    PURPOSE......................................................    1
SECTION 2.    DEFINITIONS..................................................    1
SECTION 3.    ADMINISTRATION...............................................    3
SECTION 4.    DURATION OF AND COMMON STOCK SUBJECT TO PLAN.................    4
SECTION 5.    ELIGIBILITY..................................................    4
SECTION 6.    STOCK OPTIONS................................................    4
SECTION 7.    STOCK APPRECIATION RIGHTS....................................    5
SECTION 8.    RESTRICTED AWARDS............................................    6
SECTION 9.    PERFORMANCE AWARDS...........................................    8
SECTION 10.   OTHER STOCK-BASED AND COMBINATION AWARDS.....................    9
SECTION 11.   DEFERRAL ELECTIONS...........................................    9
SECTION 12.   TERMINATION OF EMPLOYMENT....................................    9
SECTION 13.   NON-TRANSFERABILITY OF AWARDS................................    9
SECTION 14.   ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, ETC..............   10
SECTION 15.   CHANGE IN CONTROL............................................   11
SECTION 16.   AMENDMENT AND TERMINATION....................................   12
SECTION 17.   MISCELLANEOUS................................................   12
</TABLE>
<PAGE>
                                   LANCE, INC.

                           1997 INCENTIVE EQUITY PLAN
                      (As amended through January 30, 2001)

     SECTION 1. PURPOSE. The purpose of the Lance, Inc. 1997 Incentive Equity
Plan (the "Plan") is to attract and retain managerial and other key employees,
and to reward such employees for making major contributions to the success of
Lance, Inc. (the "Company"). The Plan is designed to meet these objectives by
offering performance-based stock and cash incentives and other equity-based
incentive awards, thereby providing such employees a proprietary interest in the
long term growth and performance of the Company.

     SECTION 2. DEFINITIONS. For purposes of the Plan, unless the context
clearly indicates otherwise, the following terms shall have the meanings set
forth below:

          (a) "Award" (collectively, "Awards") means an award or grant made to a
     Participant under Sections 6 through 10, inclusive, of the Plan.

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

          (c) "Code" means the Internal Revenue Code of 1986, as in effect from
     time to time, or any successor thereto, together with rules, regulations
     and interpretations promulgated thereunder.

          (d) "Common Stock" means the $.83 1/3 par value Common Stock of the
     Company or any security of the Company issued in substitution, exchange or
     lieu thereof pursuant to Section 14 hereof.

          (e) "Company" means Lance, Inc., a North Carolina corporation, and any
     subsidiary corporations within the meaning of Section 424(f) of the Code,
     as well as any successor corporation or corporations thereto.

          (f) "Stock Award Committee" means the committee of the Board
     constituted as provided in Section 3 of the Plan.

          (g) "Disability" means the inability, by reason of physical or mental
     infirmity or both, of an individual to perform satisfactorily the duties
     then assigned to such individual or any other duties the Company is willing
     to assign to such individual for which compensation is payable. Disability
     shall be determined by the Stock Award Committee based upon such evidence
     as the Stock Award Committee shall deem sufficient and, upon medical
     evidence, if available, and, in the discretion of the Stock Award
     Committee, upon certification of such Disability by an independent
     qualified physician.
<PAGE>
          (h) "Exchange Act" means the Securities Exchange Act of 1934, as
     amended and in effect from time to time, or any successor statute.

          (i) "Fair Market Value," with respect to a share of the Common Stock
     at a particular time, shall be that value as determined by the Stock Award
     Committee which shall be (i) if such Common Stock is listed on a national
     securities exchange or traded on the National Market System, the mean
     between the highest price and the lowest price at which the Common Stock
     shall have been sold regular way on a national securities exchange or the
     National Market System on said date, or, if no sales occur on said date,
     then on the next preceding date on which there were such sales of Common
     Stock, (ii) if the Common Stock shall not be listed on a national
     securities exchange or traded on the National Market System, the mean
     between the bid and asked prices last reported by the National Association
     of Securities Dealers, Inc. for the over-the-counter market on said date
     or, if no bid and asked prices are reported on said date, then on the next
     preceding date on which there were such quotations, or (iii) if at any time
     quotations for the Common Stock shall not be reported by the National
     Association of Securities Dealers, Inc. for the over-the-counter market and
     the Common Stock shall not be listed on any national securities exchange or
     traded on the National Market System, the fair market value determined by
     the Stock Award Committee in such manner as it may deem reasonable.

          (j) "Incentive Stock Option" means any Stock Option granted pursuant
     to the provisions of Section 6 of the Plan that is intended to be and is
     specifically designated as an "incentive stock option" within the meaning
     of Section 422 of the Code.

          (k) "Non-Qualified Stock Option" means any Stock Option granted
     pursuant to the provisions of Section 6 of the Plan that is not an
     Incentive Stock Option.

          (l) "Participant" means an employee of the Company who is granted an
     Award under the Plan.

          (m) "Performance Award" means an Award granted pursuant to the
     provisions of Section 9 of the Plan the vesting of which is contingent on
     performance attainment.

          (n) "Performance Equity Grant" means an Award of units representing
     shares of Common Stock granted pursuant to the provisions of Section 9 of
     the Plan.

          (o) "Performance Unit Grant" means an Award of monetary units granted
     pursuant to the provisions of Section 9 of the Plan.

                                       2
<PAGE>
          (p) "Plan" means the Lance, Inc. 1997 Incentive Equity Plan as set
     forth herein, as the same may be hereafter amended and from time to time in
     effect.

          (q) "Restricted Award" means an Award granted pursuant to the
     provisions of Section 8 of the Plan.

          (r) "Restricted Stock Grant" means an Award of shares of Common Stock
     granted pursuant to the provisions of Section 8 of the Plan.

          (s) "Restricted Unit Grant" means an Award of units representing
     shares of Common Stock granted pursuant to the provisions of Section 8 of
     the Plan.

          (t) "Retirement" means the termination of an employee's employment
     with the Company at any time after the last day of the calendar month
     immediately preceding the calendar month in which the employee attains the
     age of 60 years.

          (u) "Stock Appreciation Right" means an Award to benefit from the
     appreciation of Common Stock granted pursuant to the provisions of Section
     7 of the Plan.

          (v) "Stock Option" means an Award to purchase shares of Common Stock
     granted pursuant to the provisions of Section 6 of the Plan.

          (w) "First Effective Amendment Date" means that date on which the
     stockholders of the Company approve the amendment to the Plan to increase
     the number of shares of Common Stock reserved for grants of Awards under
     the Plan by an additional 1,500,000 shares of Common Stock.

     SECTION 3. ADMINISTRATION.

     (a) The Plan shall be administered by those members of the Stock Award
Committee of the Board who are "nonemployee directors" for purposes of Rule
16b-3 under the Exchange Act.

     (b) The Stock Award Committee is authorized to grant Awards under the Plan,
to construe and interpret the Plan, to promulgate, amend and rescind rules and
regulations relating to the implementation of the Plan, and to make all other
determinations necessary or advisable for the administration of the Plan. Any
determination, decision or action of the Stock Award Committee in connection
with the construction, interpretation, administration or application of the Plan
shall be final, conclusive and binding upon all persons participating in the
Plan and any person validly claiming under or through persons participating in
the Plan. The Company shall effect the granting of Awards under the Plan in
accordance with the determinations made by the

                                       3
<PAGE>
Stock Award Committee, by execution of instruments in writing in such form as
are approved by the Stock Award Committee.

     SECTION 4. DURATION OF AND COMMON STOCK SUBJECT TO PLAN.

     (a) Term. The Plan shall be effective on April 18, 1997, subject to
approval by a plurality of the shares voting on approval of the Plan at the
Annual Meeting of Stockholders held on said date or any adjournment thereof. The
Plan shall terminate on March 31, 2007.

     (b) Shares of Common Stock Subject to Plan. The maximum number of shares of
Common Stock with respect to which Awards may be granted under the Plan, subject
to adjustment as provided in Section 14 of the Plan, shall be 1,500,000 shares
of the total authorized shares of the Common Stock. Beginning on the First
Effective Amendment Date, there is hereby reserved for grants of Awards under
the Plan, subject to adjustment as provided in Section 14 of the Plan, an
additional 1,500,000 shares of Common Stock. For the purpose of computing the
total number of shares of Common Stock available for Awards under the Plan,
there shall be counted against the foregoing limitation the number of shares of
Common Stock subject to issuance upon exercise or settlement of Awards and the
number of shares of Common Stock which equal the value of Restricted Unit Grants
and Performance Equity Grants and other stock-based Awards in each case
determined as of the dates on which such Awards are granted. If any Awards are
forfeited, terminated, settled in cash in lieu of stock, exchanged for other
Awards, or expire unexercised, the shares of Common Stock which were theretofore
subject to such Awards shall again be available for Awards under the Plan to the
extent of such forfeiture, termination, settlement, exchange or expiration.
Further, any shares of Common Stock which are used as full or partial payment to
the Company by a Participant of the purchase price of shares of Common Stock
upon exercise of Stock Options shall again be available for Awards under the
Plan, as shall any shares covered by Stock Appreciation Rights which are not
issued as payment upon exercise. Common Stock which may be issued under the Plan
may be either authorized and unissued shares or issued shares which have been
reacquired by the Company. No fractional shares of Common Stock shall be issued
under the Plan.

     (c) Individual Award Limit. In no event shall a Participant receive an
Award or Awards during any one calendar year covering in the aggregate more than
150,000 shares of Common Stock.

     SECTION 5. ELIGIBILITY. Only managerial and other key employees shall be
eligible to be granted Awards under the Plan. The Stock Award Committee shall,
from time to time, (i) determine those managerial and other key employees to
whom Awards shall be granted and the conditions of each such Award or issue and
sale and (ii) grant such Awards. No member of the Stock Award Committee while
serving as such shall be eligible to receive any Award hereunder.

     SECTION 6. STOCK OPTIONS. Stock Options may be granted under the Plan in
the form of Incentive Stock Options or Non-Qualified Stock Options; and such
Stock Options shall be subject to the following terms and conditions and shall
contain such additional terms and conditions, not inconsistent with the express
provisions of the Plan, as the Stock Award Committee shall determine:

                                       4
<PAGE>
          (a) Grant. Stock Options may be granted under the Plan on such terms
     and conditions not inconsistent with the provisions of the Plan and in such
     form as the Stock Award Committee may from time to time approve. Stock
     Options may be granted alone, in addition to or in combination with other
     Awards under the Plan.

          (b) Stock Option Price. The option exercise price per share of Common
     Stock purchasable under a Stock Option shall be determined by the Stock
     Award Committee at the time of grant, but in no event shall the exercise
     price of an Incentive Stock Option be less than 100% of the Fair Market
     Value of the Common Stock on the date of the grant of such Incentive Stock
     Option.

          (c) Option Term. The term of each Stock Option shall be fixed by the
     Stock Award Committee; except that the term of Incentive Stock Options
     shall not exceed 10 years after the date the Incentive Stock Option is
     granted.

          (d) Exercisability. A Stock Option shall be exercisable at such time
     or times and subject to such terms and conditions as shall be determined by
     the Stock Award Committee at the date of grant.

          (e) Method of Exercise. A Stock Option may be exercised, in whole or
     in part, by a Participant's giving written notice of exercise to the
     Company specifying the number of shares to be purchased. Such notice shall
     be accompanied by payment in full of the purchase price in cash or, if
     acceptable to the Stock Award Committee in its sole discretion, in shares
     of Common Stock already owned by the Participant, or by surrendering
     outstanding Awards denominated in stock or stock units.

          (f) Special Rule for Incentive Stock Options. With respect to
     Incentive Stock Options granted under the Plan, the aggregate Fair Market
     Value (determined as of the date the Incentive Stock Option is granted) of
     the number of shares with respect to which Incentive Stock Options are
     exercisable for the first time by a Participant during any calendar year
     shall not exceed $100,000 or such other limit as may be required by the
     Code.

     SECTION 7. STOCK APPRECIATION RIGHTS. Stock Appreciation Rights may be
granted under the Plan subject to the following terms and conditions and shall
contain such additional terms and conditions, not inconsistent with the express
terms of the Plan, as the Stock Award Committee shall determine:

          (a) Stock Appreciation Rights. A Stock Appreciation Right is an Award
     entitling a Participant to receive an amount equal to (or if the Stock
     Award Committee shall so determine at the time of grant, less than) the
     excess of the Fair Market Value of a share of Common Stock on the date of
     exercise over the Fair Market Value of a share of Common Stock on the date
     of grant of the Stock

                                       5
<PAGE>
     Appreciation Right, or such other price as is set by the Stock Award
     Committee, multiplied by the number of shares of Common Stock with respect
     to which the Stock Appreciation Right shall have been exercised.

          (b) Grant. A Stock Appreciation Right may be granted in combination
     with, in addition to or completely independent of a Stock Option or any
     other Award under the Plan.

          (c) Exercise. A Stock Appreciation Right may be exercised by a
     Participant in accordance with procedures established by the Stock Award
     Committee, except that in no event shall a Stock Appreciation Right be
     exercisable within the first six months after the date of grant. The Stock
     Award Committee may also provide that a Stock Appreciation Right shall be
     automatically exercised on one or more specified dates.

          (d) Form of Payment. Payment upon exercise of a Stock Appreciation
     Right may be made in cash, in shares of Common Stock, or any combination
     thereof, as the Stock Award Committee shall determine; provided, however,
     that any Stock Appreciation Right exercised upon or subsequent to the
     occurrence of a Change in Control (as defined in Section 15) shall be paid
     in cash.

     SECTION 8. RESTRICTED AWARDS. Restricted Awards may be granted under the
Plan in the form of either Restricted Stock Grants or Restricted Unit Grants.
Restricted Awards shall be subject to the following terms and conditions and
shall contain such additional terms and conditions, not inconsistent with the
express provisions of the Plan, as the Stock Award Committee shall determine:

          (a) Restricted Stock Grants. A Restricted Stock Grant is an Award of
     shares of Common Stock to a Participant subject to such terms and
     conditions as the Stock Award Committee deems appropriate, including,
     without limitation, restrictions on the sale, assignment, transfer or other
     disposition of such shares and the requirement that the Participant forfeit
     such shares back to the Company upon termination of employment prior to
     vesting.

          (b) Restricted Unit Grants. A Restricted Unit Grant is an Award of
     units to be paid in cash upon vesting (with each unit having a value
     equivalent to the Fair Market Value of one share of Common Stock) granted
     to a Participant subject to such terms and conditions as the Stock Award
     Committee deems appropriate, including, without limitation, the requirement
     that the Participant forfeit such units upon termination of employment
     prior to vesting.

          (c) Grants of Awards. Restricted Awards may be granted under the Plan
     in such form and on such terms and conditions as the Stock Award Committee
     may from time to time approve. Restricted Awards may be granted alone, in
     addition to or in combination with other Awards under the Plan. Subject to
     the terms of the Plan, the Stock Award Committee shall determine the number

                                       6
<PAGE>
     of Restricted Awards to be granted to a Participant and the Stock Award
     Committee may impose different terms and conditions on any particular
     Restricted Award made to any Participant. Each Participant receiving a
     Restricted Stock Grant shall be issued a stock certificate in respect of
     such shares of Common Stock. Such certificate shall be registered in the
     name of such Participant, shall be accompanied by a stock power duly
     executed by such Participant, and shall bear an appropriate legend
     referring to the terms, conditions and restrictions applicable to such
     Award; which certificate evidencing such shares shall be held in custody by
     the Company until the restrictions thereon shall have lapsed.

          (d) Restriction Period. Restricted Awards shall provide that in order
     for a Participant's rights to vest in such Awards, the Participant must
     remain in the employment of the Company, subject to relief for specified
     reasons, for a period of time commencing on the date of the Award and
     ending on such later date or dates as the Stock Award Committee may
     designate at the time of the Award ("Restriction Period"). During the
     Restriction Period, a Participant may not sell, assign, transfer, pledge,
     encumber or otherwise dispose of shares of Common Stock received under a
     Restricted Stock Grant. The Stock Award Committee, in its sole discretion,
     may provide for the lapse of restrictions in installments during the
     Restriction Period. Upon expiration of the applicable Restriction Period
     (or lapse of restrictions during the Restriction Period where the
     restrictions lapse in installments), the Participant shall be entitled to
     receive his or her Restricted Award or portion thereof, as the case may be.

          (e) Payment of Awards. A Participant shall be entitled to receive
     payment for a Restricted Unit Grant (or portion thereof) upon expiration of
     the applicable Restriction Period. Payment in settlement of a Restricted
     Unit Grant shall be made as soon as practicable following the expiration of
     the Restriction Period in cash, in shares of Common Stock equal to the
     number of units granted under the Restricted Unit Grant with respect to
     which such payment is made, or in any combination thereof, as the Stock
     Award Committee in its sole discretion shall determine. The Stock Award
     Committee may also, in its discretion, permit a Participant to elect to
     receive, in lieu of shares of unrestricted stock at the conclusion of a
     Restriction Period, a cash payment equal to the Fair Market Value of the
     Restricted Stock vesting on the date the restrictions expire.

          (f) Rights as a Stockholder. A Participant shall have, with respect to
     the shares of Common Stock received under a Restricted Stock Grant, all of
     the rights of a Stockholder of the Company, including the right to vote the
     shares, and the right to receive any cash dividends. Stock dividends issued
     with respect to the shares covered by a Restricted Stock Grant shall be
     treated as additional shares under the Restricted Stock Grant and shall be
     subject to the same restrictions and other terms and conditions that apply
     to shares under the Restricted Stock Grant with respect to which such
     dividends are issued.

                                       7
<PAGE>
     SECTION 9. PERFORMANCE AWARDS. Performance Awards may be granted under the
Plan in the form of either Performance Equity Grants or Performance Unit Grants.
Performance Awards may be subject to the following terms and conditions and may
contain such additional terms and conditions, not inconsistent with the express
provisions of the Plan, as the Stock Award Committee shall determine:

          (a) Performance Equity Grants. A Performance Equity Grant is an Award
     of units (with each unit equivalent in value to one share of Common Stock
     as it varies throughout the term of the designated performance period) to a
     Participant and may be subject to such terms and conditions as the Stock
     Award Committee deems appropriate, including, without limitation, the
     requirement that the Participant forfeit such units or a portion of such
     units in the event certain performance criteria are not met within a
     designated period of time.

          (b) Performance Unit Grants. A Performance Unit Grant is an Award of
     units to be paid in cash upon vesting (with each unit representing such
     monetary amount as designated by the Stock Award Committee) to a
     Participant subject to such terms and conditions as the Stock Award
     Committee deems appropriate, including, without limitation, the requirement
     that the Participant forfeit such units or a portion of such units in the
     event certain performance criteria are not met within a designated period
     of time.

          (c) Grants of Awards. Performance Awards may be granted under the Plan
     in such form as the Stock Award Committee may from time to time approve.
     Performance Awards may be granted alone, in addition to or in combination
     with other Awards under the Plan. Subject to the terms of the Plan, the
     Stock Award Committee shall determine the number of Performance Awards to
     be granted to a Participant and the Stock Award Committee may impose
     different terms and conditions on any particular Performance Award made to
     any Participant.

          (d) Performance Goals and Performance Periods. Performance Awards
     shall provide that in order for a Participant's rights to vest in such
     Awards the Company or the Participant, or a combination thereof, must
     achieve certain performance goals ("Performance Goals") over a designated
     performance period ("Performance Period"). The Performance Goals and
     Performance Period shall be established by the Stock Award Committee, in
     its sole discretion. The Stock Award Committee shall establish Performance
     Goals for each Performance Period before, or as soon as practicable after,
     the commencement of the Performance Period. The Stock Award Committee may
     also establish a schedule or formula for such Performance Period setting
     forth the portion of the Performance Award which will be earned or
     forfeited based on the degree of achievement of the Performance Goals
     actually achieved or exceeded. In setting Performance Goals, the Stock
     Award Committee may use such measures of performance as it deems
     appropriate.

                                       8
<PAGE>
          (e) Payment of Awards. In the case of a Performance Equity Grant, the
     Participant shall be entitled to receive payment for each unit earned in an
     amount equal to the Fair Market Value of a share of Common Stock on the
     date on which the Stock Award Committee determines the number of units
     earned by the Participant. In the case of a Performance Unit Grant, the
     Participant shall be entitled to receive payment for each unit earned in an
     amount equal to the dollar value of each unit times the number of units
     earned. Payment in settlement of a Performance Award shall be made as soon
     as practicable following the conclusion of the respective Performance
     Period in cash, in shares of Common Stock, or in any combination thereof,
     as the Stock Award Committee in its sole discretion shall determine.

     SECTION 10. OTHER STOCK-BASED AND COMBINATION AWARDS.

     (a) The Stock Award Committee may grant other Awards under the Plan
pursuant to which Common Stock is or may in the future be acquired, or Awards
denominated in stock units, including ones valued using measures other than
market value. Such other stock-based Awards may be granted either alone, in
addition to or in combination with any other type of Award granted under the
Plan.

     (b) The Stock Award Committee may also grant Awards under the Plan in
combination with other Awards or in exchange of Awards, or in combination with
or as alternatives to grants or rights under any other employee plan of the
Company, including the plan of any acquired entity.

     (c) Subject to the provisions of the Plan, the Stock Award Committee shall
have authority to determine the individuals to whom and the time or times at
which such Awards shall be made, the number of shares of Common Stock to be
granted or covered pursuant to such Awards, and any and all other conditions
and/or terms of the Awards.

     SECTION 11. DEFERRAL ELECTIONS. The Stock Award Committee may permit a
Participant to elect to defer his or her receipt of the payment of cash or the
delivery of shares of Common Stock that would otherwise be due to such
Participant by virtue of the exercise or earn out of an Award made under the
Plan. If any such election is permitted, the Stock Award Committee may establish
rules and procedures for such payment deferrals, including the possible (a)
payment or crediting of reasonable interest on such deferred amounts credited in
cash, and (b) the payment or crediting dividend equivalents in respect of
deferrals credited in units of Common Stock.

     SECTION 12. TERMINATION OF EMPLOYMENT. The terms and conditions under which
an Award may be exercised after a Participant's termination of employment shall
be determined by the Stock Award Committee.

     SECTION 13. NON-TRANSFERABILITY OF AWARDS. No Award under the Plan, and no
rights or interests therein, shall be assignable or transferable by a
Participant except by will or the laws of descent and distribution. During the
lifetime of a Participant, Stock Options and Stock

                                       9
<PAGE>
Appreciation Rights are exercisable only by, and payments in settlement of
Awards will be payable only to, the Participant or his or her legal
representative.

     SECTION 14. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, ETC.

     (a) The existence of the Plan and the Awards granted hereunder shall not
affect or restrict in any way the right or power of the Board or the
Stockholders of the Company to make or authorize any adjustment,
recapitalization, reorganization or other change in the Company's capital
structure or its business, any merger or consolidation of the Company, any issue
of bonds, other debentures, preferred or prior preference stocks, the
dissolution or liquidation of the Company or any sale or transfer of all or any
part of its assets or business, or any other corporate act or proceeding.

     (b) In the event that a dividend shall be declared upon the Common Stock
payable in shares of Common Stock, the number of shares of Common Stock then
subject to any Award and the number of shares reserved for issuance pursuant to
the Plan but not yet covered by an Award shall be adjusted by adding to each
such share the number of shares which would be distributable thereon if such
share had been outstanding on the date fixed for determining the Stockholders
entitled to receive such stock dividend. In the event that the outstanding
shares of Common Stock shall be changed into or exchanged for a different number
or kind of shares of stock or other securities of the Company or of another
corporation, or changed into or exchanged for cash or property or the right to
receive cash or property (but not including any dividend payable in cash or
property other than a liquidating distribution), whether through reorganization,
recapitalization, stock split-up, combination of shares, merger or
consolidation, then there shall be substituted for each share of Common Stock
subject to any Award and for each share of Common Stock reserved for issuance
pursuant to the Plan but not yet covered by an Award, the number and kind of
shares of stock or other securities or cash or property or right to receive cash
or property into which each outstanding share of Common Stock shall be so
changed or for which each such share shall be exchanged. In the event there
shall be any change other than as specified above in this Section 14, in the
number or kind of outstanding shares of Common Stock or of any stock or other
securities into which such Common Stock shall have been changed or for which it
shall have been exchanged, then if the Stock Award Committee shall in its sole
discretion determine that such change equitably requires an adjustment in the
number or kind of shares theretofore reserved for issuance pursuant to the Plan
but not yet covered by an Award and of the shares then subject to an Award or
Awards, such adjustment shall be made by the Stock Award Committee and shall be
effective and binding for all purposes of the Plan and each agreement entered
into with a Participant under the Plan. In the case of any such substitution or
adjustment as provided for in this Section 14, the Award price for each share
covered thereby prior to such substitution or adjustment will be the Award price
for all shares of stock or other securities or cash or property or right to
receive cash or property which shall have been substituted for such share or to
which such share shall have been adjusted pursuant to this Section 14. No
adjustment or substitution provided for in this Section 14 shall require the
Company in any agreement with a Participant to issue a fractional share and the
total substitution or adjustment with respect to each agreement with a
Participant shall be limited accordingly. In the event that the number of shares
of Common Stock subject to an Award is adjusted pursuant

                                       10
<PAGE>
to the provisions of this Section 14, then any Stock Appreciation Rights related
to such Award shall be appropriately and equitably adjusted.

     (c) In the event of (i) a dissolution or liquidation of the Company, (ii) a
sale of all or substantially all of the Company's assets, (iii) a merger or
consolidation involving the Company in which the Company is not the surviving
corporation or (iv) a merger or consolidation involving the Company in which the
Company is the surviving corporation but the holders of shares of the Company's
Common Stock receive securities of another corporation and/or other property,
including cash, the Stock Award Committee shall, in its absolute discretion,
have the power to cancel, effective immediately prior to the occurrence of such
event, each Stock Option and each Stock Appreciation Right outstanding
immediately prior to such event (whether or not then exercisable) and, in
consideration of such cancellation, the Company will pay to the Participant an
amount in cash for each share of Common Stock subject to such Stock Option or
Stock Appreciation Right equal to the excess of (A) the value as determined by
the Stock Award Committee, in its absolute discretion, of the property
(including cash) received by the holder of one share of Common Stock as a result
of such event over (B) the exercise price of such Stock Option or Stock
Appreciation Right; or provide for the exchange of each Stock Option and Stock
Appreciation Right outstanding immediately prior to such event (whether or not
then exercisable) for an option on or stock appreciation right with respect to,
as appropriate, some or all of the property which a holder of the number of
shares of Common Stock subject to such Stock Option or Stock Appreciation Right
would have received in such transaction and, incident thereto, make an equitable
adjustment as determined by the Stock Award Committee, in its absolute
discretion, in the exercise price of the option or stock appreciation right, or
the number of shares or amount of property subject to the option or stock
appreciation right or, if appropriate, provide for a cash payment to the
Participant to whom such Stock Option or Stock Appreciation Right was granted in
partial consideration for the exchange of the Stock Option or Stock Appreciation
Right.

     SECTION 15. CHANGE IN CONTROL.

     (a) In the event of a Change in Control (as defined below) of the Company,
(i) all Stock Options or Stock Appreciation Rights then outstanding shall become
fully exercisable as of the date of the Change in Control, whether or not then
exercisable, (ii) all restrictions and conditions of all Restricted Stock Grants
and Restricted Unit Grants then outstanding shall be deemed satisfied as of the
date of the Change in Control, and (iii) all Performance Equity Grants and
Performance Unit Grants shall be deemed to have been fully earned as of the date
of the Change in Control.

     (b) "Change in Control" means the acquisition or contracting to acquire or
otherwise control beneficial ownership of in excess of thirty-five percent (35%)
of the then outstanding voting securities of the Company by any person,
corporation or other entity and its "affiliates" (as defined in Rule 13d-5(b)(1)
promulgated under the Exchange Act, as amended from time to time) excluding,
however, for purposes of determining such ownership (but not the number of
shares outstanding) voting securities beneficially owned by members of the Van
Every Family and any trust, custodian or fiduciary account for the benefit of
any one or more members of the

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<PAGE>
Van Every Family. Van Every Family means the lineal descendants of Salem A. Van
Every, Sr. (whether by blood or adoption) and their spouses.

     SECTION 16. AMENDMENT AND TERMINATION. Without further approval of the
Stockholders, the Board may at any time terminate the Plan, or may amend it from
time to time in such respects as the Board may deem advisable, except that the
Board may not, without approval of the Stockholders, make any amendment which
would (i) require Stockholder approval for Incentive Stock Options granted or to
be granted under the Plan to qualify as incentive stock options within the
meaning of Section 422 of the Code or (ii) require Stockholder approval under
applicable law or the rules of any national securities exchange upon which the
Common Stock is listed at the time such amendment is proposed.

     SECTION 17. MISCELLANEOUS.

     (a) Tax Withholding. The Company shall have the right to deduct from any
settlement, including the delivery or vesting of shares, made under the Plan any
federal, state or local taxes of any kind required by law to be withheld with
respect to such payments or to take such other action as may be necessary in the
opinion of the Company to satisfy all obligations for the payment of such taxes.
If Common Stock is used to satisfy tax withholding, such stock shall be valued
based on the Fair Market Value when the tax withholding is required to be made.

     (b) No Right To Employment. Neither the adoption of the Plan nor the
granting of any Award hereunder shall confer upon any employee of the Company
any right to continued employment with the Company, nor shall it interfere in
any way with the right of the Company to terminate the employment of any of its
employees at any time, with or without cause.

     (c) Unfunded Plan. The Plan shall be unfunded and the Company shall not be
required to segregate any assets that may at any time be represented by Awards
under the Plan. Any liability of the Company to any person with respect to any
Award under the Plan shall be based solely upon any contractual obligations that
may be effected pursuant to the Plan. No such obligation of the Company shall be
deemed to be secured by any pledge of, or other encumbrance on, any property of
the Company.

     (d) Payments to Trust. The Stock Award Committee is authorized to cause to
be established a trust agreement or several trust agreements whereunder the
Company may make payments of amounts due or to become due to Participants in the
Plan.

     (e) Engaging in Competition With Company. In the event a Participant's
employment with the Company is terminated for any reason whatsoever, and within
18 months after the date thereof such Participant accepts employment with any
competitor of, or otherwise engages in competition with, the Company, the Stock
Award Committee, in its sole discretion, may require such Participant to return
to the Company the economic value of any Award which is realized or obtained
(measured at the date of exercise, vesting or payment) by such Participant at
any time during the period beginning on that date which is six months prior to
the date of such Participant's termination of employment with the Company.

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<PAGE>
     (f) Securities Law Restrictions. No shares of Common Stock shall be issued
under the Plan unless counsel for the Company shall be satisfied that such
issuance will be in compliance with applicable Federal and state securities
laws. Certificates for shares of Common Stock delivered under the Plan may be
subject to such stop-transfer orders and other restrictions as the Stock Award
Committee may deem advisable under the rules, regulations, and other
requirements of the Securities and Exchange Commission, any stock exchange upon
which the Common Stock is then listed, and any applicable federal or state
securities law. The Stock Award Committee may cause a legend or legends to be
put on any such certificates to make appropriate reference to such restrictions.

     (g) Award Agreement. Each Participant receiving an Award under the Plan
shall enter into an agreement with the Company in a form specified by the Stock
Award Committee agreeing to the terms and conditions of the Award and such
related matters as the Stock Award Committee shall, in its sole discretion,
determine.

     (h) Costs of Plan. The costs and expenses of administering the Plan shall
be borne by the Company.

     (i) Governing Law. The Plan and all actions taken thereunder shall be
governed by and construed in accordance with the laws of the State of North
Carolina.

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