Document:

<PAGE>

                            THE SOMERSET GROUP, INC.
                           1991 STOCK INCENTIVE PLAN

                                    ARTICLE I
                                    ---------

                                Name and Purpose
                                ----------------

Section 1.01. Name. This Plan shall be known as The Somerset Group, Inc. 1991
------------  ----
Stock Incentive Plan.

Section 1.02. Purpose. The purposes of this Plan are (i) to enable the Company
------------  -------
and its Affiliates to attract and retain top quality management level Employees,
(ii) to encourage such Employees to acquire capital stock of the Company, and
(iii) to create in such Employees a proprietary interest in, and a greater
concern for, the welfare of the Company and its Affiliates.

                                   ARTICLE II
                                   ----------

                                   Definitions
                                   -----------

For purposes of this Plan and any amendments hereto, the following terms, when
capitalized, shall have the following meanings, unless a different meaning is
plainly required by the context:

Section 2.01. "Affiliate" means any corporation which is or becomes (i) a
------------
"parent corporation" of the Company within the meaning of Sections 425(e) and
(g) of the Code, or (ii) a "subsidiary corporation" of the Company within the
meaning of Section 425(f) of the Code.

Section 2.02. "Award Period" means, with respect to a Performance Share award,
------------
the period during which the award is subject to forfeiture and over which
achievement of specified performance objectives is measured.

Section 2.03. "Board" means the Board of Directors of the Company.
------------

Section 2.04. "Code" means the Internal Revenue Code of 1986, as amended.
------------

Section 2.05. "Company" means The Somerset Group, Inc., an Indiana corporation.
------------

Section 2.06. "Committee" means the person or persons appointed to administer
------------
the Plan pursuant to Section 4.01 below.

                                       1
<PAGE>

Section 2.07. "Employee" means any person, including an officer or director, who
------------
is a common-law employee of the Company or an Affiliate.

Section 2.08. "Incentive Stock Option" means an option to buy a specified number
------------
of shares of Stock, which option (i) is granted pursuant to Section 6.01 below,
(ii) is subject to the limitations and restrictions of Section 6.06 below, and
(iii) is intended to qualify under Section 422A of the Code.

Section 2.09. "Non-Qualified Stock Option" means an option to buy a specified
------------
number of shares of Stock, which option (i) is granted pursuant to Section 6.03
below, and (ii) is not intended to qualify under Section 422A of the Code.

Section 2.10. "Option" means an Incentive Stock Option or a Non-Qualified Stock
------------
Option.

Section 2.11. "Option Period" means the period from the date of the granting of
------------
an Option to the date after which such Option may no longer be exercised.

Section 2.12. "Option Price" means the per share price to be paid for shares of
------------
Stock purchased pursuant to an Option.

Section 2.13. "Participant" means an Employee who is granted a Right under the
------------
Plan.

Section 2.14. "Performance Share" means a right granted pursuant to Article VII
------------
to receive a specified number of shares of Stock, contingent upon the
achievement of specified performance objectives within a specified Award Period.

Section 2.15. "Plan" means The Somerset Group, Inc. 1991 Stock Incentive Plan as
------------
set forth in this document, and as hereafter amended.

Section 2.16. "Right" means an Option, Stock Appreciation Right or Performance
------------
Share, or any combination thereof, granted under the Plan. An Option, Stock
Appreciation Right or Performance Share shall be deemed to constitute as many
Rights as there are shares of Stock to which it relates.

Section 2.17. "Stock" means shares of the capital stock of the Company, of the
------------
class currently authorized, or capital stock of the Company issued in
substitution for such stock in a recapitalization.

Section 2.18. "Stock Appreciation Right" means a right granted under Article VI
------------
to receive an amount equal to the spread between the Value of a specified number
of shares of Stock at the time of exercise and the Option Price for such number
of shares specified in a related Option.

                                       2
<PAGE>

Section 2.19. "Termination of Employment" means an Employee's separation from
------------
the service of the Company and its Affiliates; provided, however, that an
Employee who is on an authorized leave of absence shall not be considered to
have terminated his employment until such leave shall have expired and he shall
have failed to return to work. For purposes of the foregoing, the term
"authorized leave of absence" shall include and be limited to the following: (i)
in the case of an Employee who has left or leaves a position (other than a
temporary position) with the Company or an Affiliate in order to perform
training and service as a member of the Armed Forces of the United States, any
absence from work occurring after such departure and prior to the close of the
period during which his right to re-employment is preserved by law; or (ii) in
the case of any other Employee, any absence from work not in excess of ninety
(90) days, which is intended by the Employee and the Company or the employing
Affiliate to be temporary and which, at the request of the Employee, is
authorized in writing by the Company or such Affiliate for a definite period of
time not in excess of ninety (90) days. An Employee who separates from the
service of the Company but continues in the service of an Affiliate (or
separates from the service of an Affiliate but continues in the service of the
Company) shall not be deemed to have incurred a Termination of Employment by
reason of such separation.

Section 2.20. "Value" means, with reference to Stock and a certain date, the
------------
per-share fair market value of Stock on such date, as determined by the
Committee in good faith in accordance with any applicable Treasury Regulations
under Sections 422A(b) (4) and 422A(c) (1) of the Code.

                                   ARTICLE III
                                   -----------

                              Stock Subject to Plan
                              ---------------------

Section 3.01. Maximum Number of Shares. The aggregate number of shares of Stock
------------  ------------------------
in respect of which Options and Performance Shares may be granted under the Plan
is limited to 100,000 shares, subject to adjustment in accordance with Section
3.03. Such aggregate number of shares may consist, in whole or in part, of
unissued shares or reacquired shares. The aggregate number of shares in respect
of which Stock Appreciation Rights may be granted under the Plan is limited to
the aggregate number of shares in respect to which Options are outstanding. For
this purpose, a Stock Appreciation Right shall be deemed to have been granted in
respect of the same shares in respect of which the Option to which it relates
were granted.

Section 3.02. Lapsed Rights. If shares of Stock originally subject to an Option
------------  -------------
or Performance Share under the Plan cease for any reason to be subject to
issuance or transfer pursuant to such Option or Performance Share, then the
shares shall again be available for inclusion in future grants under the Plan.
For this purpose, (i) the payment of cash or shares upon exercise of a Stock
Appreciation Right

                                       3
<PAGE>

issued with respect to an Option shall be deemed an issuance or transfer of the
shares with respect to which such Stock Appreciation Right is exercised and (ii)
the payment of cash in lieu of shares upon vesting of a Performance Share award
shall be deemed an issuance or transfer of the shares subject to such award.

Section 3.03. Adjustment Occasioned by Corporate Changes. If any change is made
------------  ------------------------------------------
in the Stock subject to the Plan or subject to any Rights granted under the
Plan, whether through merger, consolidation, reorganization, recapitalization,
stock dividend, split-up, combination of shares, exchange of shares, issuance by
dividend of rights to subscribe, change in capital structure or otherwise,
appropriate adjustments shall be made by the Committee as to the maximum number
of shares of Stock subject to the Plan, the maximum number of shares of Stock
for which Rights may be granted to anyone Employee or classification of
Employees, the number of shares of Stock to which each outstanding Right
relates, and the Option Price in respect of each outstanding Option as shall be
equitable to prevent dilution or enlargement of such Rights.

Except as otherwise provided in this Section 3.03, the holder of a Right shall
have no rights by reason of any subdivision or consolidation of shares of stock
of any class, or by reason of the payment of any stock dividend or any other
increase or decrease in the number of shares of any class, or by reason of any
dissolution, liquidation, merger, or consolidation or spin-off of assets or
stock of another corporation and any issue by the Company of shares of stock of
any class, or securities convertible into shares of stock of any class, shall
not affect, and no adjustment by reason thereof shall be made with respect to,
the number or Option Price of shares of Stock subject to a Right.

The grant of a Right pursuant to the Plan shall not affect in any way the right
or power of the Company to make adjustments, reclassifications, reorganizations
or changes of its capital or business structure or to merge or consolidate or to
dissolve, liquidate or sell, or transfer all or any part of its business or
assets.

                                   ARTICLE IV
                                   ----------

                                 Administration
                                 --------------

Section 4.01. Composition and Duties of Committee. The administration of the
------------  -----------------------------------
Plan shall be supervised by a Committee of three or more directors of the
Company appointed by the Board. Each member of the Committee must be a
"disinterested person" within the meaning of the definition of that term
contained in Reg. (S) 16b-3 promulgated under the Securities Exchange Act of
1934, as amended. A majority of the members of the Committee shall constitute a
quorum, and the action of a majority of the members present at any meeting at
which a quorum is

                                       4
<PAGE>

present shall be deemed the action of the Committee. The Committee may take
action without a meeting if, prior to such action, written consents thereto are
signed by all of the members of the Committee. The Committee may appoint a
secretary to keep minutes of its meetings and may make such rules and
regulations for the conduct of its business as it shall deem advisable. The
day-to-day administration of the Plan shall be carried out by such officers and
Employees as shall be designated by the Committee.

Section 4.02. Power of Committee. The Committee, after consultation with the
------------  ------------------
Chairman and President of the Company, shall have full power and authority from
time to time to make recommendations to the Board with respect to the Employees
who shall participate in the Plan and the extent and nature of their
participation. With respect to any director participating in the Plan, the
recommendations of the Committee shall be final and conclusive, unless otherwise
determined by the Board if a majority of the Board and a majority of the
directors acting in the matter are disinterested persons. The interpretation and
construction by the Committee of any provision of the Plan or of any agreement
entered into by the Company pursuant to the Plan, and any determination by the
Committee pursuant to the Plan or any such agreement, shall be final and
conclusive unless otherwise determined by the Board, in which latter event the
determination of the Board shall be final and conclusive; provided, however,
that with respect to any such interpretation, construction or determination
affecting a participating director, such interpretation, construction or
determination shall be final and conclusive, unless otherwise determined by the
Board if a majority of the Board and a majority of the directors acting in the
matter are disinterested persons.

                                    ARTICLE V
                                    ---------

                                   Eligibility
                                   -----------

Section 5.01. Eligible Employees. Rights shall be granted only to Employees who,
------------  ------------------
in the opinion of the Committee, are, or give promise of becoming, responsible
for the direction and management of the operations of the Company, an Affiliate,
or any department or division of the Company or an Affiliate. An Employee who
has been granted a Right may, if he is otherwise eligible, be granted an
additional Right or Rights. No Employee may be granted a Right if he holds (or
thereby would become the holder of) more than fifty percent (50%) of all of the
Rights then outstanding under the Plan. In the event the Board shall by
resolution establish further limitations upon the maximum number of Rights
available under the Plan to any Employee or class of Employees, the Committee
shall adhere thereto.

                                       5
<PAGE>

                                   ARTICLE VI
                                   ----------

                      Options and Stock Appreciation Rights
                      -------------------------------------

Section 6.01. Awards of Incentive Stock Options. Subject to Section 3.01 above
------------  ---------------------------------
and Section 6.02 below, Incentive Stock Options may be granted to such eligible
Employees, at such times, and for such number of shares of Stock, as the
Committee may from time to time determine.

Section 6.02. Annual Limitation on Awards of Incentive Stock Options. The
------------  ------------------------------------------------------
aggregate Value of Stock with respect to which Incentive Stock Options are
exercisable for the first time by a Participant during any calendar year under
the Plan or any other plan of the Company or its Affiliates shall not exceed
$100,000. For purposes of the foregoing, the Value of Stock subject to an
Incentive Stock Option shall be determined as of the date such Incentive Stock
Option is granted.

Section 6.03. Awards of Non-Qualified Stock Options. Subject to Section 3.01
------------  -------------------------------------
above, Non-Qualified Stock Options may be granted to such eligible Employees, at
such times and for such number of shares of Stock, as the Committee may from
time to time determine.

Section 6.04. Awards of Stock Appreciation Rights. Stock Appreciation Rights may
------------  -----------------------------------
be granted at such times and to such eligible Employees as the Committee may
from time to time determine. Each Stock Appreciation Right shall relate only to
one or more shares of Stock subject to a specific Option and may be granted
concurrently with the Option to which it relates or any time prior to the
exercise, termination or expiration of the Option to which it relates. However,
at no time shall the total number of shares of Stock with respect to which Stock
Appreciation Rights remain outstanding and unexercised exceed the total number
of shares subject to Options then outstanding and unexercised.

A Stock Appreciation Right shall confer upon the recipient thereof the right to
receive from the Company or employing Affiliate, upon surrender of an Option or
a portion thereof, but without payment to the Company or such Affiliate, an
amount equal to the Value, on the exercise date, of the total number of shares
of Stock for which the Stock Appreciation right is exercised, less the Option
Price which the Participant would otherwise have been required to pay upon
purchase of such shares. The amount payable by the Company or Affiliate upon the
exercise of the Stock Appreciation Right may be paid in cash or in shares of
Stock or any combination thereof, as the Committee shall determine. Any shares
of Stock so paid shall satisfy such amount to the extent of the Value of such
shares on the business day next preceding the date of payment. No fractional
shares shall be issuable pursuant to any Stock Appreciation Right, but the
Participant shall instead be entitled to receive cash equal to the value of the
same fraction as would otherwise have been issuable. The value of such

                                       6
<PAGE>

fraction shall be determined with reference to the Value of a full share of
Stock as of the exercise date.

The Committee may fix, with respect to Stock Appreciation Rights granted under
this Plan, such waiting periods, exercise dates or other limitations as it shall
deem appropriate, provided that no Stock Appreciation Right shall be exercisable
prior to the date when the Option to which it relates first becomes exercisable
or after the expiration of said Option. The Committee may impose at any time
after the grant of any Stock Appreciation Right a total prohibition on the
exercise of such Stock Appreciation Right for such period or periods as it, in
its sole discretion, deems to be in the best interests of the Company and its
Affiliates.

Section 6.05. Terms and Conditions of Options and Stock Appreciation Rights.
------------  -------------------------------------------------------------
Options granted pursuant to the Plan shall be evidenced by agreements in such
form as the Committee shall from time to time approve. Stock Appreciation
Rights, if any, shall be evidenced by agreements amending and forming a part of
the Option agreements to which such rights relate. All such agreements shall
comply with and be subject to the following terms and conditions:

     Clause 6.05(a). Number of Shares. Each Option agreement shall state the
     --------------  ------------------
     total number of shares of Stock which are subject to the Option and, if
     applicable, the total number of shares with respect to which any related
     Stock Appreciation Right shall be exercisable.

     Clause 6.05(b). Option Price. The Option Price for the shares of Stock to
     --------------  ------------
     be issued pursuant to any Option granted under the Plan shall be determined
     by the Committee at the time such Option is granted, but such price in no
     event shall be less than the fair market value, as determined by the
     Committee, consistent with Treas. Reg. Section 20.2031-2 and any
     requirements of Section 422A of the Code, of such stock on the date in
     which such option is granted; provided, however, that the Committee shall
     have discretion to award non-qualified stock options to Participants at a
     price no less than 75% of the fair market value of the Stock on the date of
     grant, as determined by the Committee, consistent with Treas. Reg. Section
     20.2031-2.

     Clause 6.05(c). Term of Options and Stock Appreciation Rights. An Option
     --------------  ---------------------------------------------
     shall not be exercisable after the expiration of such period as shall be
     fixed by the Committee at the time of the grant thereof, but such period in
     no event shall exceed ten (10) years and one day from the date on which
     such Option is granted; provided, that Incentive Stock Options granted
     hereunder shall have terms not in excess of ten (10) years. Options shall
     be subject to earlier termination as hereinafter provided. Each Stock
     Appreciation Right shall expire not later than the expiration of the Option
     to which it relates.

                                       7
<PAGE>

     Clause 6.05(d). When Exercisable. No Option or related Stock Appreciation
     --------------  ----------------
     Right shall be exercisable during the period of six (6) months following
     the date of grant of the Option. No Stock Appreciation Right which is held
     by a person who is, or within the preceding six months has been, a director
     or officer of the Company for purposes of Section l6(b) of the Securities
     Exchange Act of 1934, as amended, may be exercised during a period
     beginning on the third business day following the date of release of a
     summary statement of the Company's quarterly or annual sales and earnings
     and ending on the twelfth business day following such date; provided,
     however, that this restriction shall not apply in the event the Committee
     elects, upon exercise of a Stock Appreciation Right, to have the entire
     amount payable by the Company upon such exercise paid in shares of Stock.
     Each Option agreement shall specify any other period or periods of time
     during which the Option or related stock Appreciation Right granted therein
     may not be exercised. Except as provided above or so specified, any Option
     or Stock Appreciation Right may be exercised in whole at any time or in
     part from time to time during its term.

     Clause 6.05(e). Effect of Exercising Options or Stock Appreciation Rights.
     --------------  ---------------------------------------------------------
     Upon the exercise of a Stock Appreciation Right, the Option to which it
     relates shall terminate with respect to the number of shares of Stock as to
     which the Stock Appreciation Right is so exercised. Conversely, upon the
     exercise of an Option, any related Stock Appreciation Right shall terminate
     to the extent the total number of shares of Stock with respect to which
     such Stock Appreciation Right remains outstanding would otherwise exceed
     the total number of shares of Stock with respect to which such Option
     remains unexercised.

     Clause 6.05(f). Procedure for Exercise. An Option or Stock Appreciation
     --------------  ----------------------
     Right may not be exercised for a fractional share of Stock. An Option or
     Stock Appreciation Right shall be deemed to be exercised when, in
     accordance with the terms of the Option agreement, written notice of such
     exercise has been given to the Company or employing Affiliate by the person
     entitled to do so and, in the case of the exercise of an Option, full
     payment for the shares with respect to which the Option is exercised has
     been received by the Company or employing Affiliate. Payment shall be made
     either (i) in cash (including check, bank draft or money order) or (ii) if
     permitted by the Committee, by delivering (a) shares of Stock held by the
     Participant for a period of at least one year and having a Value equal to
     the applicable Option Price or (b) a combination of cash and such shares of
     Stock.

     Clause 6.05(g). Exercise Following Termination of Employment. Except as
     --------------  --------------------------------------------
     provided in Clause 6.05(h) and Clause 6.05(i), an Option or Stock
     Appreciation Right may not be exercised more than thirty (30) days after
     the grantee's Termination of Employment. If a Participant's employment is
     terminated by the Company or

                                       8
<PAGE>

     employing Affiliate for cause, his Options and Stock Appreciation Rights
     shall, to the extent not previously exercised, terminate immediately. The
     foregoing provisions shall remain operative notwithstanding any
     re-employment of the Participant within such thirty (30) day period or
     thereafter.

     Clause 6.05(h). Exercise Following Retirement. A Participant who incurs a
     --------------  -----------------------------
     Termination of Employment after becoming eligible to retire (as determined
     for purposes of any pension plan of the Company or employing Affiliate for
     non-union Employees as then in effect) may exercise his Option or Stock
     Appreciation Right, to the extent it is exercisable upon the effective date
     of such termination, within three months after such effective date, but in
     no event after the expiration of the term of such Option or Stock
     Appreciation Right or after the close of such three month period; provided,
     however, that if such termination was effected by the Company or employing
     Affiliate for cause, said Option or Stock Appreciation Right shall, to the
     extent not previously exercised, terminate immediately. The foregoing
     provisions shall remain operative notwithstanding any re-employment of the
     Participant within such three month period or thereafter.

     Clause 6.05(i). Exercise Upon Death. If a Participant dies while he is
     --------------  -------------------
     employed by the Company or an Affiliate or within thirty (30) days after he
     incurs a Termination of Employment (unless such termination was by the
     Company or employing Affiliate for cause), his Option or Stock Appreciation
     Right may be exercised, whether or not exercisable on the date of his
     death, by the personal representative or other person at the time entitled
     by law to his rights under the Option agreement, at any time within one
     year after his Termination of Employment (whether by death or otherwise),
     but in no event after the expiration of the term of the Option or Stock
     Appreciation Right or after the close of such one year period.

     Clause 6.05(j). Non-Transferability. An Option or Stock Appreciation Right
     --------------  -------------------
     granted under the Plan may not be sold, pledged, assigned, hypothecated,
     transferred or disposed of in any manner other than by will or by the laws
     of descent and distribution. A Stock Appreciation Right may never be
     transferred except to the transferee of the Option to which it relates.
     During the lifetime of a Participant, his Option or related Stock
     Appreciation Right may be exercised only by him.

     Clause 6.05(k). Modification of Options. Subject to the express provisions
     --------------  -----------------------
     of the Plan, and within the limitations of the Plan, the Committee may
     modify, extend or renew outstanding Options and Stock Appreciation Rights
     or accept the surrender of outstanding Options and Stock Appreciation
     Rights and authorize the granting of new Options and Stock Appreciation
     Rights in substitution therefore. However, no modification of an Option or
     Stock Appreciation Right shall impair the rights of the holder thereof

                                       9
<PAGE>

     without his consent. The Committee may not decrease, directly or indirectly
     (by cancellation and substitution of Options or otherwise) the Option Price
     applicable to any Option; however, this prohibition shall not prevent the
     granting of an additional Option to a person holding an earlier Option
     which is exercisable at a higher Option Price.

     Clause 6.05(l). Effect of Change in Control. If a tender offer or exchange
     --------------  ---------------------------
     offer for Stock (other than such an offer by the Company) is commenced, or
     if the stockholders of the Company approve an agreement providing either
     for a transaction in which the Company will cease to be an independently
     publicly owned corporation or for a sale or other disposition of all or
     substantially all the assets of the Company and, prior to such approval, a
     resolution specifically approving such agreement shall not have been
     adopted by at least a majority of the Board, then, unless the Committee
     shall have otherwise provided in the Option Agreement, each Option
     previously granted and not fully exercisable shall become exercisable in
     full upon the happening of such event and shall remain so exercisable for a
     period of sixty (60) days following such date after which it shall revert
     to being exercisable in accordance with its terms.

     Clause 6.05(m). Other Provisions. The Option agreements authorized under
     --------------  ----------------
     this Section 6.05 may contain such other provisions, including, without
     limitation, restrictions on the exercise of the Option or related Stock
     Appreciation Right, as the Committee or the Board shall deem advisable.

Section 6.06. Additional Terms and Conditions Applicable to Incentive Stock
------------  -------------------------------------------------------------
Options. Incentive Stock Option agreements shall comply with and be subject to
-------
the following additional terms and conditions:

     Clause 6.06(a). Ten Percent Shareholders. If a Participant, at the time an
     --------------  ------------------------
     Incentive Stock Option is granted, owns stock possessing more than ten
     percent of the total combined voting power of all classes of stock of the
     Company or any Affiliate of the Company, then

          (i)  the Exercise Price for the shares of Stock to be issued pursuant
          to such Incentive Stock Option shall be not less than 110% of the
          Value of such shares at such time, and

          (ii)  the Option Period with respect to such Incentive Stock Option
          shall not exceed five years.

     Clause 6.06(b). Related Stock Appreciation Rights. A Stock Appreciation
     --------------  ---------------------------------
     Right which is related to an Incentive Stock Option shall be exercisable
     only when the Value of the Stock exceeds the Option Price specified in such
     related Incentive Stock Option and only when such related Incentive Stock
     Option is otherwise exercisable.

                                       10
<PAGE>

                                   ARTICLE VII
                                   -----------

                               Performance Shares
                               ------------------

Section 7.01. Award of Performance Shares. Performance Shares shall be granted
------------  ---------------------------
to such eligible Employees, at such times, and in such numbers, as the Committee
may from time to time determine.

A Performance Share award shall confer upon the recipient thereof the right to
receive a specified number of shares of Stock contingent upon the achievement of
specified performance objectives within a specified Award Period.

The Committee shall determine the duration of each Award Period, but in no event
shall an Award Period consist of less than one year or more than five years.
Award Periods may run consecutively or concurrently, in whole or in part.

The Committee shall select the Employees entitled to participate for each Award
Period and the number of Performance Shares to be awarded to each. The
objectives which must be achieved in order for such shares to vest may be the
same with respect to all Participants or may be determined separately for each
Participant or for different classifications of Participants. Such objectives
may be expressed in terms of a progression within a specified range, with the
participant being entitled to all shares covered by a Performance Share award
only in the event a specified maximum objective is met or surpassed but being
entitled to a percentage of such shares in the event a specified minimum
objective is met or surpassed and to increasing percentages of such shares in
the event specified intermediate objectives are met or surpassed. Such
objectives shall be determined by the Committee, after consultation with the
Chairman and President of the Company, within sixty (60) days after the
beginning of the Award Period. Such objectives may be expressed in terms of (i)
the net earnings of the Company or an Affiliate; (ii) the return on invested
capital of the Company or an affiliate; (iii) the profitability of any division
or department of the Company or an Affiliate; (iv) any combination of the
foregoing; or (v) any other standard or standards deemed appropriate by the
Committee. Not more than sixty (60) days after the beginning of an Award Period,
the Committee shall cause each Participant to be notified in writing of the
performance objectives applicable to him for that Award Period. After such
notice shall have been given, such performance objectives shall not be changed.

Section 7.02. Terms and Conditions of Performance Share Awards. Performance
------------  ------------------------------------------------
Share awards shall be evidenced by agreements in such form as the Committee
shall from time to time approve, which agreements shall comply with and be
subject to the following terms and conditions:

     Clause 7.02(a). Nature of Award. Each Performance Share agreement shall
     --------------  ---------------
     specify the number of Performance Shares to which it relates and, with
     respect to each such Performance Share, the performance objectives which
     must be satisfied in order for the

                                       11
<PAGE>

     Performance Share to vest and the Award Period within which such objectives
     must be satisfied.

     Clause 7.02(b). Vesting. A Participant shall become vested with respect to
     --------------  -------
     a Performance Share if the performance objectives with respect to such
     Performance Share are satisfied in full within the Award Period with
     respect to such Performance Share. Otherwise, the participant's rights with
     respect to such Performance Share shall be forfeited.

     Clause 7.02(c). Payment of Awards. Payments to Participants in respect of
     --------------  -----------------
     vested Performance Shares shall be made within sixty (60) days after the
     last day of the Award Period to which such award relates. Such payment may
     be made entirely in shares of Stock, entirely in cash, or in such
     combination of shares of Stock and cash as the Committee shall determine.
     The amount of cash payable per Performance Share shall be the per share
     Value of shares of Stock on the business day next preceding the date of
     payment.

     Clause 7.02(d). Termination of Employment. If a Participant incurs a
     --------------  -------------------------
     Termination of Employment prior to the expiration of an Award Period, the
     Performance Shares issued to him with respect to such Award Period shall be
     forfeited and he shall not be entitled to any payment with respect thereto;
     provided, however, that the Committee may provide for partial or complete
     exceptions to this rule where such Termination of Employment is due to the
     retirement, disability or death of the Participant and occurs within a
     period of six (6) months prior to the expiration of the Award Period;
     provided further, unless the Committee shall have provided otherwise in the
     agreement evidencing the Performance Share award, that this rule shall not
     apply in the event such termination is involuntary on the part of the
     Participant and occurs after a change in control. For purposes of the
     foregoing, the term "change in control" means anyone of the following
     events occurring after the commencement of the Award Period:

          (i) Any person, including a "group" as defined in Section 13(d) (3) of
          the Securities Exchange Act of 1934, shall become the beneficial owner
          of shares of the Company with respect to which twenty percent (20%) or
          more of the total number of votes for the election of the Board may be
          cast.

          (ii) As a result of, or in connection with, any cash tender offer,
          exchange offer, merger or other business combination, sale of assets
          or contested election, or combination of the foregoing, the persons
          who, at the beginning of the Award Period, are directors of the
          Company shall cease to constitute a majority of the Board of Directors
          of the Company.

                                       12
<PAGE>

          (iii) The stockholders of the Company approve an agreement providing
          either for a transaction in which the Company will cease to be an
          independently publicly owned corporation or for a sale or other
          disposition of all or substantially all the assets of the Company.

          (iv) During any period of two consecutive years beginning after the
          commencement of the Award Period, individuals, who at the beginning of
          such period constitute the Board, cease for any reason to constitute
          at least a majority thereof, unless the election of each director who
          was not a director at the beginning of such period has been approved
          in advance by directors representing at least two-thirds of the
          directors then in office who were directors at the beginning of such
          period.

     However, "change of control" shall not include an event by which control of
     the Company is acquired in connection with a reorganization which involves
     solely the acquisition of control of the Company by a corporation whose
     shares subsequent to such acquisition of control are owned by the same
     shareholders and in the same amounts as the shares of the Company are owned
     immediately prior to such acquisition of control, nor shall it include any
     subsequent acquisition of shares by a person or group which prior to the
     beginning of the Award Period was the beneficial owner of shares of the
     Company with respect to which twenty percent (20%) or more of the total
     number of votes for the election of the Board may be cast. The above events
     of "change of control" shall occur at the time of the change in share
     ownership under subparagraph (i), the cessation of the directorships under
     subparagraph (ii), the approval of an agreement under subparagraph (iii),
     or a change in the majority of the Board under subparagraph (iv), whichever
     first occurs.

                                  ARTICLE VIII
                                  ------------

                                  Miscellaneous
                                  -------------

Section 8.01. Reservation of Shares. The Company during the term of this Plan,
------------  ---------------------
will at all times reserve and keep available such number of shares of Stock as
shall be sufficient to satisfy the requirements of the Plan. However, no
Participant shall have any right in or against any shares so reserved.

Section 8.02. Rights as a Stockholder. The holder of an Option or Performance
------------  -----------------------
Share shall have no rights as a stockholder with respect to shares covered
thereby until the date of the issuance to him of a stock certificate for such
shares. Except as provided in Section 3.03, no adjustment shall be made for
dividends or other distributions or

                                       13
<PAGE>

rights for which the record date is prior to the date of such issuance.

Section 8.03. Conditions Upon Issuance of Shares. Shares shall not be issued
------------  ----------------------------------
with respect to any Right granted under the Plan unless the issuance and
delivery of such shares pursuant thereto shall comply with all relevant
provisions of law (including, by way of illustration, 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 further be subject to the approval of counsel for the Company with respect
to such compliance. If, at the time of the exercise or vesting of any Right, it
is necessary or desirable, in the opinion of counsel for the Company, in order
to comply with any then applicable laws or regulations relating to the sale of
securities, that the holder shall agree to hold any shares issued to him for
investment and without any present intention to resell or distribute the same
and that the holder will dispose of such shares only in compliance with such
laws and regulations, the holder will, upon the request of the Company, execute
and deliver to the Company an agreement to such effect.

Section 8.04. Preemption of Applicable Laws and Regulations. Anything in the
------------  ---------------------------------------------
Plan or any Option or Performance Share agreement to the contrary
notwithstanding, if, at any time specified herein or therein for the issuance of
shares or the payment of consideration to the holder as a result of the exercise
of any Stock Appreciation Right, as the case may be, any law, regulation, or
requirement of any governmental authority having jurisdiction in the premises,
shall require either the Company, an Affiliate or the holder to take any action
in connection with the shares then to be issued or such payment, the issuance of
such shares or the making of such payment, as the case may be, shall be deferred
until such action shall have been taken.

Section 8.05. Withholding Taxes. The Committee may adopt and apply rules to
------------  -----------------
ensure that the Company and its Affiliates will be able to comply with
applicable provisions of any federal, state or local relating to the withholding
of tax.

Section 8.06. No Right to Continued Employment. Neither the adoption and
------------  --------------------------------
maintenance of the Plan nor the grant of any Right pursuant to the Plan shall be
deemed (i) to give any Employee the right to remain in the employ of the Company
or any Affiliate; (ii) to affect the right of the Company or an Affiliate to
discipline or discharge any Employee at any time; (iii) to give the Company or
an Affiliate the right to require any Employee to remain in its employ; or (iv)
to affect any Employee's right to terminate his employment at any time.

Section 8.07. Interpretation of Plan. The Company intends that Incentive Stock
------------  ----------------------
Options granted under the Plan shall comply with the provisions of Section
422A(b) of the Code, and the provisions of the

                                       14
<PAGE>

Plan and all Incentive Stock Option agreements entered into pursuant to the Plan
shall be construed to effectuate such intention.

Section 8.08. Applicable Law. The Plan and any Right agreements entered into
------------  --------------
pursuant to the Plan shall be construed, regulated, interpreted and administered
under and in accordance with the laws of the State of Indiana.

Section 8.09. Successors. This Plan shall be binding upon the successors and
------------  ----------
assigns of the Company.

                                   ARTICLE IX
                                   ----------

                            Amendment and Termination
                            -------------------------

Section 9.01. Term of Plan. The Plan shall become effective upon its adoption by
------------  ------------
the Board, subject to ratification of the Plan by the stockholders of the
Company. Unless the stockholders of the Company fail to ratify the Plan within
one year after its adoption, or unless the Plan is sooner terminated under
Section 9.02 below, the Plan shall continue in effect for a term of ten (10)
years after its adoption.

Section 9.02. Amendment and Termination. The Board may from time to time alter,
------------  -------------------------
amend, suspend, or terminate this Plan; provided, however, that no such action
may, without the approval of the stockholders of the Company, alter the
provisions of the Plan so as to (a) increase the maximum number of shares of
Stock with respect to which Rights may be granted under the Plan, except as
provided in Section 3.03 hereof; (b) change the class of persons eligible to
receive Rights under the Plan; (c) extend the term of the Plan; (d) withdraw the
administration of the Plan from the Committee; (e) permit any member of the
Committee to be eligible to receive a Right under the Plan; (f) extend beyond
ten (10) years and one day the maximum term which may be specified for Options
or Stock Appreciation Rights granted under the Plan; or (g) extend beyond five
(5) years the maximum term which may be specified for an Award Period with
respect to performance Shares granted under the Plan.

Section 9.03. Effect of Amendment or Termination. No amendment or termination of
------------  ----------------------------------
the Plan may, without the consent of the Participant, adversely affect the
rights of any Participant under a Right awarded before the date thereof. The
termination of the Plan shall not affect or impair the power, authority and
discretion of the Committee with respect to any Right granted prior to the
termination.

                                       15<PAGE>

                                                                   Exhibit 10(n)

                           THE SOMERSET GROUP, INC.

                           1998 Stock Incentive Plan

<PAGE>

                             THE SOMERSET GROUP, INC.
                            1998 STOCK INCENTIVE PLAN

                                Table of Contents

<TABLE>
<CAPTION>
                                                                                               Page
<S>                                                                                            <C>
ARTICLE I         GENERAL
         1.1      Purpose...................................................................      1
         1.2      Administration............................................................      1
         1.3      Persons Eligible for Awards...............................................      3
         1.4      Types of Awards Under Plan................................................      3
         1.5      Shares Available for Awards...............................................      3

ARTICLE II        AWARDS UNDER THE PLAN
         2.1      Agreements Evidencing Awards..............................................      5
         2.2      No Rights as a Shareholder................................................      5
         2.3      Grant of Stock Options, Stock Appreciation Rights and Dividend
                  Equivalent Rights.........................................................      5
         2.4      Exercise of Options and Stock Appreciation Rights.........................      7
         2.5      Termination of Continuous Status..........................................      8
         2.6      Grant of Restricted Stock.................................................     10
         2.7      Other Stock-Based Awards..................................................     11
         2.8      Grant of Dividend Equivalent Rights.......................................     11
         2.9      Deferral..................................................................     12

ARTICLE III       MISCELLANEOUS
         3.1      Amendment of the Plan; Modification of Awards.............................     12
         3.2      Tax Withholding...........................................................     12
         3.3      Nonassignability..........................................................     13
         3.4      Requirement of Notification of Election Under Section 83(b) of
                  the Code..................................................................     13
         3.5      Requirement of Notification Upon Disqualifying Disposition Under
                  Section 421(b) of the Code................................................     13
         3.6      Right of Discharge Reserved...............................................     13
         3.7      Nature of Payments........................................................     14
         3.8      Non-Uniform Determinations................................................     14
         3.9      Other Payments or Awards..................................................     14
         3.10     Dissolution, Liquidation, Merger..........................................     14
         3.11     Section 162(m)............................................................     15
         3.12     Successors and Assigns....................................................     16
         3.13     Designation of Beneficiary................................................     16
         3.14     Settlement by Subsidiaries................................................     16
         3.15     Expenses..................................................................     16
         3.16     Sections Headings.........................................................     16
         3.17     Effective Date and Term of Plan...........................................     16
         3.18     Governing Law.............................................................     17
</TABLE>
<PAGE>

<TABLE>
<S>                                                                                             <C>
ARTICLE IV        DEFINITIONS
         4.1      "Award"...................................................................     17
         4.2      "Board"...................................................................     17
         4.3      "Cause"...................................................................     17
         4.4      "Committee" ..............................................................     17
         4.5      "Consultant"..............................................................     18
         4.6      "Continuous Status".......................................................     18
         4.7      "Disability"..............................................................     18
         4.8      "Fair Market Value".......................................................     18
         4.9      "Incentive Stock Option"..................................................     19
         4.10     "Non-Qualified Stock Option"..............................................     19
         4.11     "Subsidiary"..............................................................     19
</TABLE>
<PAGE>

                           THE SOMERSET GROUP, INC.

                           1998 STOCK INCENTIVE PLAN

     The Board of Directors of The Somerset Group, Inc. (the "Company") has
established the following Stock Incentive Plan (the "Plan") for employees and
directors of the Company and its Subsidiaries. All capitalized terms used in the
Plan have the meanings given them in Article IV.

                                   ARTICLE I
                                   ---------
                                    General
                                    -------

1.1  Purpose

     The purpose of The Somerset Group, Inc. 1998 Stock Incentive Plan (the
"Plan") is to provide for officers, other employees and directors of, and
Consultants to, the Company and its Subsidiaries (collectively, the "Employers")
an incentive (a) to enter into and remain in the service of the Employers, (b)
to enhance the long-term performance of the Employers, and (c) to acquire a
proprietary interest in the Company.

1.2  Administration

     1.2.1 This Plan shall be administered by a Committee consisting of two or
more members of the Board. To the extent required for transactions under the
Plan to qualify for the exemptions available under Rule 16b-3 ("Rule 16b-3")
promulgated under the Securities Exchange Act of 1934 (the "1934 Act"), all
actions relating to Awards to persons subject to Section 16 of the 1934 Act
shall be taken by the Board unless each person who serves on the Committee is a
"non-employee director" within the meaning of Rule 16b-3 or such actions are
taken by another committee of the Board comprised solely of "non-employee
directors." To the extent required for compensation realized from Awards under
the Plan to be deductible by the Employers pursuant to Section 162(m) of the
Internal Revenue Code of 1986 (the "Code"), the members of the Committee shall
be "outside directors" within the meaning of Section 162(m).

     1.2.2 Subject to the provisions of the Plan and directions from the Board,
the Committee is authorized to:

           (a) determine the persons to whom Awards are to be granted;

           (b) determine the type of Award to be granted, the number of
shares of Common Stock to be covered by the Award, the pricing of the Award, the
time or times when the Award shall be granted and may be exercised, any
restrictions on the exercise
<PAGE>

of the Award, and any restrictions upon shares of Common Stock acquired pursuant
to the exercise of any Award;

          (c) provide for the extension of the exercisability of an Award,
accelerate the vesting or exercisability of an Award, eliminate or make less
restrictive any restrictions contained in an Award, waive any restriction or
other provisions of the Plan or in any Award, and to amend or modify any Award
provided such amendment or modification either is not adverse to or is consented
to by the grantee thereof;

          (d) conclusively interpret the provisions of the Plan and any Plan
Agreement executed pursuant to Section 2.1;

          (e) prescribe, amend and rescind rules and regulations relating to the
Plan (including rules governing its own operations) or make individual decisions
as questions arise, or both;

          (f) correct any defect, supply any omission or reconcile any
inconsistency in the Plan;

          (g) amend the Plan to reflect changes in applicable law;

          (h) delegate to one or more officers of the Company or a Subsidiary
some or all of its authority under the Plan;

          (i) employ such legal counsel, independent auditors and consultants as
it deems desirable for the administration of the Plan and rely upon any opinion
or computation received therefrom;

          (j) make all other determinations and take all other actions necessary
or advisable for the administration of the Plan.

    1.2.3 The determination of the Committee on all matters relating to the Plan
or any Plan Agreement shall be final, binding and conclusive.

    1.2.4 No member of the Committee shall be liable for any action or
determination made in good faith, and the members of such Committee shall be
entitled to indemnification and reimbursement in the manner provided in the
Company's articles of incorporation and bylaws as amended from time to time. In
the performance of its responsibilities with respect to the Plan, such Committee
shall be entitled to rely upon information and advice furnished by the Company's
officers, the Company's accountants, the Company's counsel and any other party
such Committee deems necessary, and no member of such Committee shall be liable
for any action taken or not taken in reliance upon any such advice.
<PAGE>

1.3  Persons Eligible for Awards

     Awards under the Plan may be made to such directors, officers and other
employees of the Employers (including prospective employees conditioned on their
becoming employees) and to such Consultants to the Employers (collectively,
"eligible persons") as the Committee in its discretion shall select.

1.4  Types of Awards Under Plan

     Awards may be made under the Plan in the form of (a) Incentive Stock
Options (within the meaning of Section 422 of the Code), (b) Non-Qualified Stock
Options, (c) stock appreciation rights, (d) dividend equivalent rights, (e)
restricted stock, and (f) other stock-based compensation, all as more fully set
forth in Article II. No Incentive Stock Option may be granted to a person who is
not an employee of an Employer on the date of grant.

1.5  Shares Available for Awards

     1.5.1 The maximum number of shares of Common Stock that may be issued
pursuant to this Plan is 145,000, subject to adjustment in accordance with
Section 1.5.3. Shares issued pursuant the Plan may be authorized but unissued
shares or reacquired shares, including shares purchased on the open market. If
any Award is canceled or forfeited, or terminates for any other reason without
all of the shares covered thereby being issued or settled in cash, then the
shares as to which the Award is canceled or forfeited or so terminates may again
be awarded pursuant to the Plan. Restricted shares issued under this Plan that
are repurchased by the Company, pursuant to an exercise of its repurchase rights
under the applicable Plan Agreement, for the same price for which they were sold
to the grantee, shall be deemed forfeited for purposes of the foregoing and be
available for reissuance pursuant to subsequent Awards. If previously acquired
shares of Common Stock are delivered to the Company in full or partial payment
of the exercise price for the exercise of an option granted under this Plan, the
number of shares available for future Awards under this Plan shall be reduced
only by the net number of shares issued upon the exercise of the option. Awards
that may be satisfied either by the issuance of shares or by cash or other
consideration shall be counted against the maximum number of shares that may be
issued under this Plan, even though the Award ultimately is satisfied by the
payment of consideration other than shares, as, for example, when an option is
granted in tandem with a stock appreciation right that is settled by a cash
payment of the stock appreciation. However, Awards will not reduce the number of
shares that may be issued pursuant to this Plan if the settlement of the Award
will not require the issuance of shares, as, for example, a stock appreciation
right that may be satisfied only by the payment of cash. Shares of Common Stock
issued in settlement, assumption or substitution of outstanding awards (or
obligations to grant future awards) under the plans or arrangements of an
unrelated entity shall not reduce the maximum number of shares available for
issuance under this Plan, to the extent such settlement, assumption or
substitution is made in connection with an Employer's acquisition of such
unrelated entity or an interest in such unrelated entity.
<PAGE>

     1.5.2 In no event may any eligible person be granted Awards in any calendar
year with respect to more than 25,000 shares of Common Stock, subject to
adjustment from time to time in accordance with Section 1.5.3. The number of
shares relating to an Award that is granted in a calendar year to an eligible
person and that subsequently is forfeited, canceled or otherwise terminated
shall continue to count toward such limitation in such calendar year.

     1.5.3 Subject to any required action by the shareholders of the Company,
the number of shares of Common Stock covered by each outstanding Award, the
number of shares available for Awards, the number of shares that may be subject
to Awards to any one eligible person, and the price per share of Common Stock
covered by each such outstanding Award shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the
number of issued shares of Common Stock effected without receipt of
consideration by the Company. Such adjustment shall be made in a manner which
shall preclude the enlargement or dilution of rights and benefits under such
options. Such adjustment shall be made by the Committee, whose determination in
that respect shall be final, binding and conclusive. Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an Award. After any adjustment made
pursuant to this Section 1.5.3, the number of shares subject to each outstanding
Award shall be rounded to the nearest whole number.

     1.5.4 Except as provided in this Section 1.5 and in Section 2.3.7, there
shall be no limit on the number or the value of the shares of Common Stock that
may be subject to Awards to any individual under the Plan.

                                  ARTICLE II
                                  ----------
                             Awards under the Plan
                             ---------------------

2.1  Agreements Evidencing Awards

     Each Award granted under the Plan (except an Award of unrestricted stock)
shall be evidenced by a written agreement ("Plan Agreement") which shall contain
such provisions as the Committee in its discretion deems necessary or desirable.
By accepting an Award pursuant to the Plan, a grantee thereby agrees that the
Award shall be subject to all of the terms and provisions of the Plan and the
applicable Plan Agreement.

2.2  No Rights as a Shareholder

     No grantee of an option or stock appreciation right (or other person having
the right to exercise such Award) shall have any of the rights of a shareholder
of the
<PAGE>

Company with respect to shares subject to such Award until the issuance of a
stock certificate to such person for such shares. Except as otherwise provided
in Section 1.5.3, no adjustment shall be made for dividends, distributions or
other rights (whether ordinary or extraordinary, and whether in cash, securities
or other property) for which the record date is prior to the date such stock
certificate is issued.

2.3  Grant of Stock Options, Stock Appreciation Rights and Dividend Equivalent
Rights

     2.3.1 The Committee may grant Incentive Stock Options and Non-Qualified
Stock Options (collectively, "options") to purchase shares of Common Stock from
the Company, to such eligible persons, in such amounts and subject to such terms
and conditions, as the Committee shall determine in its discretion, subject to
the provisions of the Plan. The grantee and the Company shall enter into
separate Plan Agreements for Incentive Stock Options and Non-Qualified Stock
Options. At any time and from time to time, the grantee and the Company may
agree to modify a Plan Agreement in order that an Incentive Stock Option may be
converted to a Non-Qualified Stock Option.

     2.3.2 The Committee may grant stock appreciation rights to such eligible
persons, in such amounts and subject to such terms and conditions, as the
Committee shall determine in its discretion, subject to the provisions of the
Plan. Stock appreciation rights may be granted in connection with all or any
part of, or independently of, any option granted under the Plan. A stock
appreciation right granted in connection with a Non-Qualified Stock Option may
be granted at or after the time of grant of such option. A stock appreciation
right granted in connection with an Incentive Stock Option may be granted only
at the time of grant of such option.

     2.3.3 The grantee of a stock appreciation right shall have the right,
subject to the terms of the Plan and the applicable Plan Agreement, to receive
from the Company an amount equal to (a) the excess of the Fair Market Value of a
share of Common Stock on the date of exercise of the stock appreciation right
over (b) the exercise price of such right as set forth in the Plan Agreement (or
over the option exercise price if the stock appreciation right is granted in
connection with an option), multiplied by (c) the number of shares with respect
to which the stock appreciation right is exercised. Except as otherwise provided
in the applicable Plan Agreement, payment upon exercise of a stock appreciation
right shall be in cash or in shares of Common Stock (valued at their Fair Market
Value on the date of exercise of the stock appreciation right) or both, as the
Committee shall determine in its discretion. Upon the exercise of a stock
appreciation right granted in connection with an option, the number of shares
subject to the option shall be reduced by the number of shares with respect to
which the stock appreciation right is exercised. Upon the exercise of an option
in connection with which a stock appreciation right has been granted, the number
of shares subject to the stock appreciation right shall be reduced by the number
of shares with respect to which the option is exercised.
<PAGE>

     2.3.4 Each Plan Agreement with respect to an option shall set forth the
amount (the "option exercise price") payable by the grantee to the Company upon
exercise of the option evidenced thereby. The option exercise price per share
shall be determined by the Committee in its discretion; provided, however, that
the exercise price of any option shall be at least 100% of the Fair Market Value
of a share of Common Stock on the date the option is granted.

     2.3.5 Each Plan Agreement with respect to an option or stock appreciation
right shall set forth the periods during which the Award evidenced thereby shall
be exercisable, whether in whole or in part. Such periods shall be determined by
the Committee in its discretion; provided, however, that no Incentive Stock
Option (or a stock appreciation right granted in connection with an Incentive
Stock Option) shall be exercisable more than 10 years after the date of grant.

     2.3.6 If the aggregate Fair Market Value (determined as of the time the
options are granted) of the stock with respect to which Incentive Stock Options
granted under this Plan and all other plans of the Employers are first
exercisable by any employee during any calendar year shall exceed the maximum
limit (currently, $100,000), if any, imposed from time to time under Section 422
of the Code, the options creating such excess (in reverse chronological order,
starting with the options having the latest date of grant) shall be treated as
Non-Qualified Stock Options.

     2.3.7 Notwithstanding the provisions of Sections 2.3.4 and 2.3.5, to the
extent required under Section 422 of the Code, an Incentive Stock Option may not
be granted under the Plan to an individual who, at the time the option is
granted, owns stock possessing more than 10% of the total combined voting power
of all classes of stock of his or her Employer or of its parent or subsidiary
corporations (as such ownership may be determined for purposes of Section
422(b)(6) of the Code) unless (a) at the time such Incentive Stock Option is
granted the option exercise price is at least 110% of the Fair Market Value of
the shares subject thereto and (b) the Incentive Stock Option by its terms is
not exercisable after the expiration of five years from the date it is granted.

     2.3.8 The Committee, in its sole discretion, may include a provision in the
Plan Agreement for any Non-Qualified Stock Option that provides for a cash
payment, by the Company or employing Subsidiary to the grantee, as soon as
practicable after the exercise thereof, of an amount equal to all or a portion
of the tax benefit to be received by the Company or its Subsidiaries
attributable to the federal income tax deduction resulting from the exercise of
such Non-Qualified Stock Option.

2.4  Exercise of Options and Stock Appreciation Rights

     2.4.1 Subject to the provisions of this Article II, each option or stock
appreciation right granted under the Plan shall be exercisable as follows:

     2.4.2 An Award of options or stock appreciation rights or both may be
exercised by the grantee at such time or times within the applicable exercise
period as the grantee
<PAGE>

chooses, except that no such Award may be exercised in more than two
installments or otherwise than for whole shares. After an Award has been
exercised twice as to less than all of the options and stock appreciation rights
included therein, the Award shall terminate as to the remainder of such options
and rights, and such remaining options and rights no longer shall be
exercisable. A stock appreciation right granted in connection with an option may
be exercised at any time when, and to the same extent that, the related option
may be exercised. An option or stock appreciation right shall be exercised by
the filing of a written notice with the Company, on such form and in such manner
as the Committee shall prescribe.

     2.4.3 Any written notice of exercise of an option shall be accompanied by
payment for the shares being purchased. Such payment shall be made: (a) by
certified or official bank check (or the equivalent thereof acceptable to the
Company) for the full option exercise price; or (b) unless the applicable Plan
Agreement provides otherwise, by delivery of shares of Common Stock acquired at
least one year prior to the option exercise date and having a Fair Market Value
(determined as of the exercise date) equal to all or part of the option exercise
price and a certified or official bank check (or the equivalent thereof
acceptable to the Company) for any remaining portion of the full option exercise
price; or (c) at the discretion of the Committee and to the extent permitted by
law, by such other provision as the Committee may from time to time prescribe.

     2.4.4 Promptly after receiving payment of the full option exercise price,
or after receiving notice of the exercise of a stock appreciation right for
which payment will be made partly or entirely in shares, the Company shall,
subject to the provisions of Section 3.2 (relating to certain tax withholding
requirements), deliver to the grantee or to such other person as may then have
the right to exercise the Award, a certificate or certificates for the shares of
Common Stock for which the Award has been exercised. If the method of payment
employed upon option exercise so requires, and if applicable law permits, an
optionee may direct the Company to deliver the certificate(s) to the optionee's
stockbroker.

2.5  Termination of Continuous Status

     2.5.1 Upon termination of the grantee's Continuous Status other than for
Cause, and other than by reason of the grantee's death or Disability, the
grantee of an option or stock appreciation right may exercise the same within
such period of time as is specified in the applicable Plan Agreement to the
extent that he or she is entitled to exercise it on the date of such termination
(but in no event later than the expiration of the term of such option or stock
appreciation right as set forth in such Plan Agreement). In the absence of a
specified time in the Plan Agreement, such option or stock appreciation right
shall remain exercisable for three months following such termination. If, on the
date of termination, the grantee is not entitled to exercise such option or
stock appreciation right in full, the shares subject to the unexercisable
portion thereof shall revert to the Plan. If, after termination, the grantee
does not exercise such option or stock appreciation right within the applicable
time period or such longer period as the Committee may allow, such option or
stock appreciation right shall terminate, and the shares covered thereby
<PAGE>

shall revert to the Plan. Notwithstanding the above, in the event the Company is
involved in a merger as a result of which grantees are precluded from selling
shares of the acquiring or successor company until the publication of financial
results covering post-merger combined operations ("Pooling Restrictions"),
options held by grantees subject to such Pooling Restrictions shall remain
exercisable until five business days after the expiration of such Pooling
Restrictions (but not beyond the original term of the option), notwithstanding
an earlier termination of such grantee's Continuous Status.

         2.5.2 Notwithstanding the above, in the event of a grantee's change in
status from one relationship with the Employers to another, the grantee's
Continuous Status shall not automatically terminate solely as a result of such
change in status. In the event a grantee ceases to be an employee but retains
Continuous Status, an Incentive Stock Option held by that grantee shall cease to
be treated as an Incentive Stock Option and shall be treated for tax purposes as
a Non-Qualified Stock Option three months and one day following such termination
of employment.

         2.5.3 Upon termination of a grantee's Continuous Status as a result of
the grantee's Disability, the grantee of an option or stock appreciation right
may exercise the same at any time within twelve months from the date of
termination (or within such longer or shorter period of time as the applicable
Plan Agreement may specify or such longer period of time as the Committee may
allow), but only to the extent that the grantee is entitled to exercise it on
the date of termination (and in no event later than the expiration of the term
of the option or stock appreciation right as set forth in the applicable Plan
Agreement). If, on the date of termination, the grantee is not entitled to
exercise such option or stock appreciation right in full, the shares subject to
the unexercisable portion thereof shall revert to the Plan. If, after
termination, the grantee does not exercise such option or stock appreciation
right within the applicable time period or such longer period as the Committee
may allow, such option or stock appreciation right shall terminate, and the
shares covered thereby shall revert to the Plan.

         2.5.4 In the event of the grantee's death, an option or stock
appreciation right may be exercised at any time within twelve months following
the date of death (or within such longer or shorter period of time as the
applicable Plan Agreement may specify or such longer period of time as the
Committee may allow), but only to the extent that the grantee was entitled to
exercise the same on the date of his or her death, and in no event later than
the expiration of the term of the option or stock appreciation right as set
forth in the applicable Plan Agreement. If, at the time of death, the grantee
was not entitled to exercise such option or stock appreciation right in full,
the shares subject to the unexercisable portion thereof shall immediately revert
to the Plan. If, after death, such option or stock appreciation right is not
exercised within the applicable time period or such longer period as the
Committee may allow, such option or stock appreciation right shall terminate,
and the shares covered thereby shall revert to the Plan. If the grantee's estate
or a person who acquired the right to exercise the option by bequest or
inheritance does not exercise the option with the time specified herein, the
option shall terminate, and the Shares covered by such option shall revert to
the Plan.
<PAGE>

         2.5.5 Any exercise of an option or stock appreciation right following
the grantee's death shall be made only by the grantee's beneficiary, or by the
legatee thereof under the grantee's last will if no validly designated
beneficiary survives the grantee and such will specifically disposes of such
Award, or by the grantee's personal representative if no validly designated
beneficiary and no such specific legatee survives the grantee. If a grantee's
beneficiary, specific legatee or personal representative shall be entitled to
exercise any option or stock appreciation right pursuant to the preceding
sentence, such beneficiary, specific legatee or personal representative shall be
bound by all the terms and conditions of the Plan and the applicable Plan
Agreement which would have applied to the grantee.

         2.5.6 Anything herein to the contrary notwithstanding, no option or
stock appreciation right may be exercised after the grantee's Continuous Status
is terminated or deemed to have been terminated for Cause as provided in Section
4.3.

2.6      Grant of Restricted Stock

         2.6.1 The Committee may grant restricted shares of Common Stock to such
eligible persons, in such amounts, and subject to such terms and conditions as
the Committee shall determine in its discretion, subject to the provisions of
the Plan. Awards of restricted stock may be made independently of or in
connection with any other Award under the Plan. In addition, such Awards may be
made in combination with awards under other incentive plans of the Company, and
any performance goals and standards adopted for purposes of such other plans may
be incorporated and applied for purposes of the Award as conditions which must
satisfied in order for the shares covered by the Award to become nonforfeitable
and transferable. The grantee of a restricted stock Award shall have no rights
with respect to such Award unless such grantee (i) accepts the Award within such
period as the Committee shall specify by executing a Plan Agreement in such form
as the Committee shall determine and (ii) makes payment to the Company by
certified or official bank check (or the equivalent thereof acceptable to the
Company) of the purchase price, if any, for the shares covered by the Award in
such amount as the Committee may determine.

         2.6.2 Promptly after a grantee accepts a restricted stock Award, the
Company shall issue in the grantee's name a certificate or certificates for the
shares of Common Stock covered by the Award. Upon the issuance of such
certificate(s), the grantee shall have the rights of a shareholder with respect
to the restricted stock, subject to the nontransferability restrictions and
Company repurchase rights described in Sections 2.6.4 and 2.6.5 and to such
other restrictions and conditions as the Committee in its discretion may include
in the applicable Plan Agreement.

         2.6.3 Unless the Committee shall otherwise determine, any certificate
issued evidencing shares of restricted stock shall remain in the possession of
the Company until such shares are free of any restrictions specified in the
applicable Plan Agreement.
<PAGE>

         2.6.4 Shares of restricted stock may not be sold, assigned,
transferred, pledged or otherwise encumbered or disposed of, except as
specifically provided in this Plan or the applicable Plan Agreement. The
Committee shall specify in the applicable Plan Agreement the date or dates and
the conditions (which may depend upon or be related to the attainment of
performance goals, maintaining Continuous Status and other conditions) on which
the foregoing transfer restrictions shall lapse and the restricted stock shall
vest. Unless the applicable Plan Agreement provides otherwise, additional shares
of Common Stock or other property distributed to the grantee in respect of
shares of restricted stock, as dividends or otherwise, shall be subject to the
same restrictions applicable to such restricted stock.

         2.6.5 Except as otherwise specified in the applicable Plan Agreement,
shares covered by an Award of restricted stock shall be forfeited if and when,
during the restricted period as to such shares, and prior to the vesting of such
shares, the grantee's Continuous Status terminates or any condition to which the
vesting of such shares is subject can no longer be satisfied. It is contemplated
that a Plan Agreement may provide for the grantee to vest as to a pro rata
portion of an Award of restricted stock if the termination of his or her
Continuous Status is due to death, Disability or retirement after age 62 and
completing five years of service. In all events, however, shares covered by an
Award of restricted stock shall be forfeited if, during the restricted period as
to such shares, the grantee's Continuous Status is terminated for Cause.

         2.6.6 If and when shares covered by an Award of restricted stock are
forfeited, the grantee shall be deemed to have resold such shares to the Company
at the lesser of the purchase price paid by the grantee (such purchase price
shall be deemed to be zero dollars if no purchase price was paid) or the Fair
Market Value of such shares on the date of such forfeiture. The Company shall
pay such amount to the grantee as soon as is administratively practical. Such
shares shall cease to be outstanding, and shall no longer confer on the grantee
any rights as a stockholder of the Company, from and after the date of such
forfeiture.

         2.6.7 Except as otherwise provided in the applicable Plan Agreement or
an agreement entered into pursuant to Section 2.9, at the end of the period
during which shares covered by an Award of restricted stock are subject to
forfeiture or restrictions on transfer, any of such shares that have not been
forfeited shall become nonforfeitable and fully transferable.

2.7      Other Stock-Based Awards

         The Board may authorize other types of stock-based Awards (including
the grant of unrestricted shares), which the Committee may grant to such
eligible persons, and in such amounts and subject to such terms and conditions,
as the Committee shall in its discretion determine, subject to the provisions of
the Plan. Such Awards may entail the transfer of actual shares of Common Stock
to grantees, or payment in cash or otherwise of amounts based on the value of
shares of Common Stock.
<PAGE>

2.8      Grant of Dividend Equivalent Rights

         The Committee may in its discretion include in the Plan Agreement with
respect to any Award a dividend equivalent right entitling the grantee to
receive amounts equal to the ordinary dividends that would be paid on the shares
of Common Stock covered by such Award, during the time such Award is outstanding
and unexercised, if such shares were then outstanding. In the event such a
provision is included in a Plan Agreement, the Committee shall determine whether
such payments shall be made in cash, in shares of Common Stock or in another
form, whether they shall be conditioned upon the exercise or vesting of the
Award to which they relate, the time or times at which they shall be made, and
such other terms and conditions as the Committee shall deem appropriate.

2.9      Deferral

         If permitted by the Committee, a grantee may elect to enter into a
written agreement with his or her Employer providing for the deferral of any
form of payment hereunder (whether in the form of cash or Common Stock), subject
to such terms and conditions as the Committee may deem appropriate.

                                  ARTICLE III
                                  -----------
                                 Miscellaneous
                                 -------------

3.1 Amendment of the Plan; Modification of Awards

         3.1.1 The Board may from time to time suspend, discontinue, revise or
amend the Plan in any respect whatsoever, except that no such amendment shall
materially impair any rights or materially increase any obligations under any
Award theretofore made under the Plan without the consent of the grantee (or,
after the grantee's death, the person having the right to exercise the Award).
For purposes of this Section 3.1, any action of the Board or the Committee that
alters or affects the tax treatment of any Award shall not be considered to
materially impair any rights of any grantee.

         3.1.2 Shareholder approval of any amendment shall be obtained to the
extent necessary to comply with Section 422 of the Code (relating to Incentive
Stock Options) or other applicable law or regulation.

         3.1.3 The Committee may amend any outstanding Plan Agreement
(including, without limitation, an amendment which would accelerate the time or
times at which the Award becomes unrestricted or may be exercised) or may waive
or amend any goals, restrictions or conditions set forth in the Plan Agreement.
However, any such amendment (other than an amendment pursuant to Section 3.10,
relating to dissolution, liquidation or merger of the Company) that materially
impairs the rights or materially increases the obligations of a grantee under an
outstanding Award shall be made only with the consent of the grantee (or, upon
the grantee's death, the person having the right to exercise the Award).
<PAGE>

3.2      Tax Withholding

         3.2.1 As a condition to the receipt of any shares of Common Stock
pursuant to any Award or the lifting of restrictions on any Award, or in
connection with any other event that gives rise to a federal or other
governmental tax withholding obligation on the part of the Employers relating to
an Award (including, without limitation, FICA tax), the Employers shall be
entitled to require that the grantee remit to the Employers an amount sufficient
in the opinion of the Employers to satisfy such withholding obligation.

         3.2.2 If the event giving rise to the withholding obligation is a
transfer of shares of Common Stock, then, unless otherwise specified in the
applicable Plan Agreement, the grantee may satisfy the withholding obligation
imposed under Section 3.2.1 by electing to have the Employers withhold shares of
Common Stock having a Fair Market Value equal to the amount of tax to be
withheld. For this purpose, Fair Market Value shall be determined as of the date
on which the amount of tax to be withheld is determined (and any fractional
share amount shall be settled in cash).

3.3      Nonassignability

         Except to the extent otherwise provided in the applicable Plan
Agreement, no Award or right granted to any person under the Plan shall be
assignable or transferable other than by will or by the laws of descent and
distribution, and all such Awards and rights shall be exercisable during the
life of the grantee only by the grantee or the grantee's legal representative.

3.4      Requirement of Notification of Election Under Section 83(b) of the Code

         If any grantee shall, in connection with the acquisition of shares of
Common Stock under the Plan, make the election permitted under Section 83(b) of
the Code (that is, an election to include in gross income in the year of
transfer the amounts specified in Section 83(b)), such grantee shall notify the
Company of such election within 10 days of filing notice of the election with
the Internal Revenue Service, in addition to any filing and notification
required pursuant to regulations issued under the authority of Code Section
83(b).

3.5      Requirement of Notification Upon Disqualifying Disposition Under
Section 421(b) of the Code

         If any grantee shall make any disposition of shares of Common Stock
issued pursuant to the exercise of an Incentive Stock Option under the
circumstances described in Section 421(b) of the Code (relating to certain
disqualifying dispositions), such grantee shall notify the Company of such
disposition within 10 days thereof.

3.6      Right of Discharge Reserved
<PAGE>

         Nothing in the Plan shall confer upon any employee of the Company or
any Subsidiary any right to continued employment with the Company or such
Subsidiary or interfere in any way with the right of the Company or such
Subsidiary to terminate the employment of any of its employees at any time, with
or without cause, in accordance with applicable laws and any applicable
employment agreement.

3.7      Nature of Payments

         3.7.1 Any and all grants of Awards and issuances of shares of Common
Stock under the Plan shall be in consideration of services performed for the
Employers by the grantee.

         3.7.2 All such grants and issuances shall constitute a special
incentive payment to the grantee and shall not be taken into account in
computing the amount of salary or compensation of the grantee for the purpose of
determining any benefits under any pension, retirement, profit-sharing, bonus,
life insurance or other benefit plan of the Employers or under any agreement
between an Employer and the grantee, unless such plan or agreement specifically
provides otherwise.

3.8      Non-Uniform Determinations

         The Committee's determinations under the Plan need not be uniform and
may be made by it selectively among persons who receive, or are eligible to
receive, Awards under the Plan (whether or not such persons are similarly
situated). Without limiting the generality of the foregoing, the Committee shall
be entitled, among other things, to make non-uniform and selective
determinations, and to enter into non-uniform and selective Plan Agreements, as
to (a) the persons to receive Awards under the Plan, (b) the terms and
provisions of Awards under the Plan, and (c) the treatment of leaves of absence
pursuant to Section 4.6.

3.9      Other Payments or Awards

         Nothing contained in the Plan shall be deemed in any way to limit or
restrict the Employers from making any Award or payment to any person under any
other plan, arrangement or understanding, whether now existing or hereafter in
effect.

3.10     Dissolution, Liquidation, Merger

         3.10.1 In the event of the proposed dissolution or liquidation of the
Company, all outstanding awards will terminate immediately prior to the
consummation of such proposed action, unless otherwise provided by the
Committee. The Committee, in the exercise of its sole discretion in such
instances, may accelerate the date on which any Award becomes exercisable or
fully vested or may declare that any Award shall terminate as of a specified
date.
<PAGE>

         3.10.2 In the event of a merger or consolidation ("Merger") of the
Company with or into any other corporation or entity ("Corporation"),
outstanding Awards shall be assumed or an equivalent option or right shall be
substituted by such successor Corporation or a parent or subsidiary of such
successor Corporation, unless the Committee determines, in the exercise of its
sole discretion, to accelerate the date on which an Award becomes exercisable or
fully vested. In the absence of an assumption or substitution, Awards shall, to
the extent not exercised, terminate as of the date of the closing of the Merger.
For the purposes of this Section 3.10.2, an Award shall be considered assumed
if, for every share of Common Stock subject thereto immediately prior to the
Merger, the grantee has the right, following the Merger, to acquire the
consideration received in the Merger transaction by holders of shares of Common
Stock (and if holders were offered a choice of consideration, the type of
consideration chosen by the holders of a majority of the outstanding shares);
provided, however, that if such consideration received in the Merger was not
solely common stock of the successor Corporation or its parent, the Committee
may, with the consent of the successor Corporation and the grantee, provide for
the consideration to be acquired pursuant to the Award, for each share of Common
Stock subject thereto, to be solely common stock of the successor Corporation or
its parent equal in fair market value to the per share consideration received by
holders of Common Stock in the Merger. For purposes hereof, the term "Merger"
shall include any transaction in which another corporation acquires all of the
issued and outstanding Common Stock of the Company.

         3.10.3 Nothing contained in the Plan shall be construed to give a
grantee the right to enjoin the Company or any Subsidiary from taking any
corporate action which is deemed by it to be appropriate or in its best
interest, whether or not such action would have an adverse effect on Awards made
under the Plan. Any right of a grantee, beneficiary or other person respecting
such a corporate action shall be limited to a claim for actual damages and
attorneys fees.

3.11     Section 162(m)

         If this Plan is subject to Section 162(m) of the Internal Revenue Code,
it is intended that the Plan meet all of the requirements of such section so
that options and stock appreciation rights granted hereunder and, if determined
by the Committee, restricted stock granted hereunder shall constitute
"performance-based" compensation within the meaning of such section. If any
provision of the Plan would disqualify the Plan or would not permit the Plan to
comply with such section, such provision shall be construed or deemed amended to
conform to the requirements of such section; provided that no such construction
or amendment shall have an adverse impact on the economic value to the grantee
of any Award previously granted hereunder.
<PAGE>

3.12     Successors and Assigns

         Awards under the Plan shall be binding upon and inure to the benefit of
the successors and assigns of the Company and its Subsidiaries. In the event of
a sale of substantially all of the assets of the Company or a Subsidiary, or a
merger, consolidation or share exchange involving the Company, all obligations
of the Company or such Subsidiary under the Plan with respect to Awards granted
hereunder shall be binding on the successor to the transaction. Employment of a
grantee with such successor shall be considered employment with the Company or
such Subsidiary for purposes of the Plan.

3.13     Designation of Beneficiary

         A grantee may designate a beneficiary or beneficiaries to receive any
payments which may be made following the grantee's death. Such designation may
be changed or canceled at any time without the consent of such beneficiary. Any
such designation, change or cancellation must be made in a form approved by the
Committee and shall not be effective until received by the Committee. If a
grantee does not designate a beneficiary, or if the designated beneficiary or
beneficiaries predecease the grantee, any payments which may be made following
the grantee's death shall be made to the grantee's estate.

3.14     Settlement by Subsidiaries

         Settlement of Awards held by employees of a Subsidiary shall be made by
and at the expense of the Subsidiary.

3.15     Expenses

         The costs and expenses of administering the Plan shall be borne by the
Company.

3.16     Section Headings

         The section headings contained herein are for the purpose of
convenience only and are not intended to define or limit the contents of the
sections.

3.17     Effective Date and Term of Plan

         3.17.1 The Plan was adopted by the Board on February 18, 1998, subject
to approval by the Company's shareholders. The Plan shall become effective on
the day following its approval by the stockholders (the "Effective Date").

         3.17.2 Unless sooner terminated by the Board, the provisions of the
Plan respecting the grant of Incentive Stock Options shall terminate on the day
before the tenth anniversary of the adoption of the Plan by the Board, and no
Incentive Stock Option Awards shall thereafter be made under the Plan. All
Awards made under the Plan prior to its termination shall remain in effect until
such Awards have been satisfied or
<PAGE>

terminated in accordance with the terms and provisions of the Plan and the
applicable Plan Agreements.

3.18     Governing Law

         All rights and obligations under the Plan shall be construed and
interpreted in accordance with the laws of the State of Indiana, without giving
effect to principles of conflict of laws.

                                  ARTICLE IV
                                  ----------
                                  Definitions
                                  -----------

         4.1 "Award" means a grant made under this Plan of Incentive Stock
Options, Non-Qualified Stock Options, stock appreciation rights, dividend
equivalent rights, restricted stock, or other stock-based compensation.

         4.2 "Board" means the Board of Directors of the Company.

         4.3 "Cause," when used in connection with termination of a grantee's
employment or Continuous Status, shall have the meaning set forth in any
then-effective employment agreement between the grantee and his or her Employer.
In the absence of such an employment agreement provision, "Cause" means: (a)
conviction of any crime (whether or not involving an Employer) constituting a
felony in the jurisdiction involved; (b) engaging in any substantiated act
involving moral turpitude; (c) engaging in any act which, in each case,
subjects, or if generally known would subject, an Employer to public ridicule or
embarrassment; (d) material violation of his or her Employer's policies,
including, without limitation, those relating to sexual harassment or the
disclosure or misuse of confidential information; (e) serious neglect or
misconduct in the performance of the grantee's duties for his or her Employer or
willful or repeated failure or refusal to perform such duties. The Committee
shall have the right to determine whether the termination of a grantee's
employment or Continuous Status is a dismissal for Cause and the date of
termination in such a case, which date the Committee may deem to be the date of
the action that is Cause for dismissal. Such determinations of the Committee
shall be final, binding and conclusive.

         4.4 "Committee" means the Stock Administration Committee of the Board,
or its successor, the Compensation Committee.

         4.5 "Consultant" means any person, including an advisor, who is engaged
by an Employer to render services on a regular or periodic basis and who is
compensated for such services.

         4.6 "Continuous Status" means that the Grantee's relationship with the
Employers as a director, officer, employee or Consultant, is not interrupted or
terminated. Continuous Status shall not be considered interrupted in the case of
transfers between locations of an Employer, or between Employers, or from an
Employer to any successor.
<PAGE>

The Committee in its discretion may determine (a) whether any leave of absence
constitutes a termination of Continuous Status for purposes of the Plan, (b) the
impact, if any, of any such leave of absence on Awards theretofore made under
the Plan, and (c) when a change in a Consultant's association with the Employers
constitutes a termination of Continuous Status for purposes of the Plan. For
purposes of Incentive Stock Options, no leave of absence may exceed 90 days,
unless reemployment upon expiration of such leave is guaranteed by statute or
contract. If reemployment upon expiration of a leave of absence is not so
guaranteed, then on the 181st day of such leave any Incentive Stock Option held
by the grantee shall cease to be treated as an Incentive Stock Option and shall
be treated for tax purposes as a Non-Qualified Stock Option.

         4.7 "Disability" means, with respect to any termination of Continuous
Status, any physical or mental impairment of a grantee which (i) prevents the
grantee from doing any substantial gainful activity for which he or she is
fitted by education, training or experience, and (ii) is expected to last at
least 12 months from the date of such termination of Continuous Service or to
result in death within such period of 12 months.

         4.8 "Fair Market Value" means, with reference to a share of Common
Stock and a given day, the per share value of Common Stock on such day,
determined as follows:

             (a) If the principal market for the Common Stock (the "Market") is
a national securities exchange or the National Association of Securities Dealers
Automated Quotation System ("NASDAQ") National Market, the last sale price of
Common Stock on such day or, if no reported sale takes place on such day, the
average of the high bid and low asked price of Common Stock as reported on such
Market for such day ("average price") or, if no such average price can be
determined for such day, the most recent reported sale price of Common Stock
within the preceding ten business days, or if no such sale shall have occurred,
the average price for the most recent business day preceding such day for which
an average price can be determined, provided an average price can be determined
for any of the ten business days preceding such day;

             (b) If the Market is the NASDAQ National List, the NASDAQ
Supplemental List or another market, the average of the high bid and low asked
price for Common Stock on such day (the "average price"), or, if no such average
price can be determined for such day, the most recent reported sale price within
the preceding ten business days, or, if no such sale shall have occurred, the
average price for the most recent business day preceding such day for which an
average price can be determined, provided an average price can be determined for
any of the ten business days preceding such day; or,

             (c) In the event that neither paragraph (a) nor (b) shall apply,
the Fair Market Value of a share of Common Stock on any day shall be determined
in good faith by the Committee.
<PAGE>

         4.9  "Incentive Stock Option" means an option that is intended to
qualify for special federal income tax treatment pursuant to Sections 421 and
422 of the Code, as now constituted or subsequently amended, or pursuant to a
successor provision of the Code, and which is so designated in the applicable
Plan Agreement. Any option that is not specifically designated as an Incentive
Stock Option shall under no circumstances be considered an Incentive Stock
Option.

         4.10 "Non-Qualified Stock Option" means any option that is not an
Incentive Stock Option.

         4.11 "Subsidiary" means any corporation, partnership or other entity in
which the Company, directly or indirectly, owns a fifty percent (50%) or greater
interest.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]