Document:

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                                                                  EXHIBIT 10(vi)

                       KULICKE AND SOFFA INDUSTRIES, INC.
                      1997 NON-QUALIFIED STOCK OPTION PLAN
                           FOR NON-EMPLOYEE DIRECTORS
               (As Amended and Restated Effective March 21, 2003)

                  1.       Purpose

                  The purpose of the 1997 Non-Qualified Stock Option Plan for
Non-Employee Directors (the "Plan") of Kulicke and Soffa Industries, Inc. (the
"Company") is to encourage stock ownership by non-employee members of the
Company's Board of Directors (the "Board") by issuing options to purchase shares
of the Company's stock ("Options," and individually an "Option"), thereby
enabling such Board members to acquire or increase their proprietary interests
in the Company and thereby encouraging them to remain as Board members. The
Options issued pursuant to the Plan are intended to constitute non-qualified
stock options ("Non-Qualified Stock Options").

                  2.       Administration

                  The Plan will be administered by the Company's Compensation
Committee (the "Committee"), which shall consist of two or more non-employee
directors (as defined in Rule 16b-3(b)(3) promulgated under the Securities
Exchange Act of 1934, as amended (the "1934 Act"), or any successor thereto) who
will be appointed by, and will serve at the pleasure of, the Board. If a
Committee of two or more non-employee directors has not been appointed, the Plan
will be administrated by the full Board. The Committee will hold meetings when a
quorum is present at such times and places as it may determine. A quorum shall
consist of a majority of the Committee. A majority of the Committee present and
voting at a meeting at which a quorum is present, or acts reduced to, and
approved in, writing by a majority of the members of the Committee at any other
time, will be valid acts of the Committee. The Committee shall have no
discretion with respect to the eligibility or selection of non-officer members
of the Board to receive Options under the Plan, the number of shares of stock
subject to any such Options, or the purchase price thereunder.

                  The interpretation and construction by the Committee of any
provision of the Plan or of any Option granted under it will be final. Anything
herein to the contrary notwithstanding, no member of the Board or the Committee
will be liable for any action or determination made in good faith with respect
to the Plan or any Option granted under it.

                  3.       Eligibility

                  The only persons eligible to receive Options under the Plan
shall be each member of the Board who is not also an employee of the Company. An
eligible director who is granted an Option ("Optionee," which term shall also
include his executor(s) or administrator(s) under Section 5(f) hereof) may be
granted more than one Option.

                  4.       Stock

         Subject to adjustment as hereinafter provided, the aggregate number of
shares of common stock of the Company, no par value (the "Shares"), that may be
subject to Options under the Plan shall equal (i) 400,000 shares reduced by the
number of shares subject to options outstanding immediately prior to July 17,
2000, (ii) multiplied by two, (iii) reduced by the number of shares subject to
options issued on or after July 17, 2000, and (iv) increased by the number of
shares subject to options expiring or terminating on or after July 17, 2000,
which aggregate number equals 480,000 shares as of the effective date of this
amended and restated Plan. Shares issuable under the Plan may be authorized but
unissued Shares or reacquired Shares, as the Company may determine from time to
time. In addition, any Shares subject to an

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Option which expires or otherwise terminates for any reason whatever (including,
without limitation, the Optionee's surrender thereof) without having been
exercised shall continue to be available for the granting of Options under the
Plan.

                  5.       Terms and Conditions of Options

                  Each Option granted pursuant to the Plan will be evidenced by
an Option Notice in such form as is acceptable to the Committee. Each Option
Notice will include the information required by Subsections (a) and (b) of this
Section 5 and will be in conformity with and incorporate by reference all other
terms and conditions of the Plan, including the following terms and conditions:

                           (a)      Option Grant Dates. Options to purchase
10,000 Shares (5,000 Shares for Options granted prior to July 17, 2000), as
adjusted pursuant to Section 5(g), shall be granted automatically to each
eligible director on the last day of February on which the Company's shares are
publicly-traded in each of the years 1999 through 2008.

                           (b)      Option Price. The purchase price per Share
payable upon exercise of the Options shall be 100% of the fair market value per
Share on the date the Options are granted, which shall be the representative
closing price on such date of the Shares as reported by Nasdaq.

                           (c)      Payment. The price payable on the exercise
of the Option in whole or in part will be equal to the Option price multiplied
by the number of Shares as to which the Option is exercised, and shall be paid
in full upon exercise of any Option, either in cash or by delivering to the
Company shares of the Company's Common Stock having a fair market value, as of
the close of business on the day preceding such delivery, equal to the aggregate
exercise price of the Shares being purchased on exercise of the Options, or by a
combination of such cash and shares.

                           (d)      Option Term. Notwithstanding any other
provisions of this Plan, Options shall expire after the termination of ten years
and one month from the date of the grant, unless sooner terminated as provided
in this Plan, and shall be void and unexercisable thereafter.

                           (e)      Exercisability of Options. Options granted
under the Plan shall become exercisable in 25% annual increments (20% annual
increments for options granted on or before February 13, 2001), commencing on
the first anniversary of the date they are granted.

                           Options that have become exercisable may be exercised
in whole or in part, except that no Option may be exercised unless the total
number of Shares issuable upon exercise of such Option and all other Options
being exercised simultaneously is at least 25 or unless the number of Shares
purchased is the total number remaining unpurchased under the Option.

                           Options may be exercised only by the Optionee and may
not be exercised by any other person except as provided in Section 5(f) hereof.

                           (f)      Termination of Options. Subject to Section
5(d) above and to Section 5(g) below, upon the death of an Optionee, all Options
held by such Optionee, whether or not then exercisable, shall immediately become
exercisable and remain exercisable by his executor(s) or administrator(s) for a
period of one year from the date of such Optionee's death.

                           Options may be terminated by agreement between the
Company and the Optionee.

                           (g)      Recapitalization. Subject to any required
action by the stockholders of the Company, the number of Shares as to which
Options may be granted under this Plan and the number of Shares subject to
outstanding Options and the Option price thereof will be proportionately
adjusted for any increase or decrease in the number of outstanding Shares of
Common Stock of the Company resulting from stock splits or reverse stock splits
but not for stock dividends. The number of Shares will be adjusted to the

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nearest whole share. Any stock dividend resulting in an increase of 20% or more
in the outstanding Common Stock shall be deemed a stock split.

                           If the Company is involved in any merger or
consolidation (as described below) or dissolution, all Options outstanding
hereunder shall become fully vested and shall terminate, in the case of mergers
or consolidation, on the date that such merger or consolidation becomes
effective, and in case of dissolution, on the date that the Articles of
Dissolution are filed with the Secretary of the Commonwealth of Pennsylvania. A
merger or consolidation shall be deemed to be covered by this Section 5(g) only
if it results in the shareholders of the Company immediately before such merger
or consolidation not owning, directly or indirectly, immediately following such
merger or consolidation more than 50% of the combined voting power of the
outstanding voting securities ("Voting Securities") of the corporation resulting
from such merger or consolidation, in substantially the same proportion as their
ownership of the Voting Securities outstanding immediately before such merger or
consolidation.

                           If Options become fully vested and are terminated
pursuant to the provisions of the foregoing paragraph, Optionees shall receive
in cash from the Company an amount equal to the fair market value of the Shares
which are subject to the outstanding Options on the date such Options become
fully vested (and subsequently terminate), less the purchase price under such
Options of such Shares. Fair market value shall be determined as of the close of
business on the day preceding the event terminating all outstanding Options
under this Plan.

                           Except as expressly provided above in this Section
5(g), the Optionee will have no rights by reason of any subdivision or
consolidation of shares of stock of any class of the Company or the payment of
any stock dividend by the Company or any other increase or decrease in the
number of shares of stock of any class of the Company or by reason of any
dissolution, liquidation, merger, or consolidation or spinoff of assets or stock
of another corporation.

                           The grant or existence of any Option shall not affect
in any way the right or power of the Company to make adjustments,
reclassification, reorganizations or changes of its capital or business
structure or to merge or to consolidate or to dissolve, liquidate or sell, or
transfer all or part of its stock or assets.

                           (h)      Rights as a Stockholder. The Optionee will
have no rights as a stockholder of the Company with respect to any Shares
subject to the Option until the Option has been exercised and a certificate with
respect to the Shares purchased upon exercise has been issued to him. No
adjustment will be made for dividends (ordinary or extraordinary, whether in
cash, securities or other property) or distributions or other rights for which
the record date is prior to the date the Shares so purchased have been issued.

                           (i)      Modification of Options. Insofar as is
consistent with the treatment of the Plan as a "formula plan" under Rule 16b-3
promulgated under Section 16(b) of the 1934 Act, or any successor thereto, and
subject to the terms and conditions of the Plan, the Committee may modify the
Options or accept the surrender of Options (to the extent not theretofore
exercised); provided, however, that the Committee may not modify the terms upon
which, the times at which or the periods within which Options may be exercised.
Notwithstanding the foregoing sentence, no modification of any Option which
adversely affects the Optionee shall be made without the consent of the
Optionee. Further, notwithstanding any provision of this Plan to the contrary
(other than Section 5(g)), the Option price of an outstanding Option shall not,
without the prior approval of the Company's stockholders, be reduced, whether
through amendment, cancellation, replacement grants, or other similar means;
provided, however, that this shall not preclude the grant, in accordance with
the provisions of this Plan, of additional Options: (i) not in replacement, in
whole or in part, of cancelled Options, or (ii) following expiration of Options.

                           (j)      Purchase for Investment. The issuance of
Shares on exercise of the Option will be conditioned on obtaining appropriate
representations and warranties of the Optionee that the purchase of Shares
thereunder will be for investment, and not with a view to the public resale or
distribution thereof, unless the Shares subject to the Option are registered
under the Securities Act of 1933,

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as amended (the "1933 Act"), and comply with any other law, regulation or rule
applicable thereto. Unless the Shares are registered under the 1933 Act, the
Optionee shall acknowledge that the Shares purchased on exercise of the Option
are not registered under the 1933 Act and may not be sold or otherwise
transferred unless the Shares have been registered under the 1933 Act in
connection with the sale or other transfer or counsel satisfactory to the
Company is of the opinion that the sale or other transfer is exempt from
registration under the 1933 Act, and unless said sale or transfer is in
compliance with any other applicable law, including all applicable state
securities law.

                           (k)      No Rights to Board Membership. An individual
granted an Option under this Plan shall not have any right to continue as a
member of the Board of the Company solely by virtue of the existence of such
Option.

                           (l)      Other Provisions. The Option Notice may
contain such other provisions, including, without limitation, restrictions upon
the exercise of the Option, as the Committee in its discretion deems advisable
and as are not inconsistent with (i) the provisions of this Plan or (ii) the
treatment of this Plan as a "formula plan" under Rule 16b-3 promulgated under
Section 16(b) of the 1934 Act, or any successor thereto.

                  6.       Term of Plan.

                  The Plan shall terminate on March 1, 2008. No Option shall be
granted under this Plan after February 29, 2008. However, the termination of
this Plan shall not affect any option which is outstanding on March 1, 2008.

                  7.       Amendment of the Plan.

                  Insofar as is consistent with the treatment of the Plan as a
"formula plan" under Rule 16b-3 promulgated under Section 16(b) of the 1934 Act,
or any successor thereto, the Board may, from time to time, with respect to any
Shares at the time not subject to an Option, suspend or discontinue the Plan or
revise or amend it in any respect whatsoever.

                  8.       Application of Funds.

                  The proceeds received by the Company from the sale of Shares
pursuant to the exercise of Options will be used for general purposes.

                  9.       No Obligation to Exercise Option.

                  The granting of an Option will impose no obligation upon the
Optionee to exercise such Option.

                  10.      Approval of Stockholders; Effective Date.

                  The Plan shall be effective December 9, 1997, the date it was
adopted by the Board. The Plan was approved by the Company's shareholders on
February 10, 1998. As amended and restated, the Plan shall be effective March
21, 2003.<PAGE>

                                                                  EXHIBIT 10(ix)

                       KULICKE AND SOFFA INDUSTRIES, INC.

                      1998 EMPLOYEE INCENTIVE STOCK OPTION
                       AND NON-OUALIFTED STOCK OPTION PLAN
               (As Amended and Restated Effective March 21, 2003)

                                    SECTION 1

                                     PURPOSE

         This KULICKE AND SOFFA INDUSTRIES, INC. 1998 EMPLOYEE STOCK OPTION PLAN
("Plan") is intended to provide a means whereby KULICKE AND SOFFA INDUSTRIES,
INC. ("Company") and any Subsidiary (as hereinafter defined) may, through the
grant of incentive stock options and non-qualified stock options (collectively,
"Options") to officers and other Key Employees (as defined in Section 3),
attract and retain such Key Employees and motivate such Key Employees to
exercise their best efforts on behalf of the Company and of any Subsidiary.

         As used in the Plan, the term "incentive stock options" ("ISOs") means
Options which qualify as incentive stock options within the meaning of section
422 of the Internal Revenue Code of 1986, as amended ("Code"), at the time they
are granted and which are either designated as ISOs in the Grant Letters (as
hereinafter defined) covering such Options or which are designated as ISOs by
the Committee (as defined in Section 2 hereof) at the time of grant. The term
"non-qualified stock options" ("NQSOs") means all other Options granted under
the Plan. The term "Subsidiary" means any corporation (whether or not in
existence at the time the Plan is adopted) which, at the time an Option is
granted, is a subsidiary of the Company under the definition of "subsidiary
corporation" contained in section 424(f) of the Code. With respect to NQSOs, the
term Subsidiary shall also mean any trade or business (whether or not
incorporated and whether or not in existence at the time the Plan is adopted) in
which, at the time the NQSO is granted, the Company owns a more than 50% equity
interest.

                                    SECTION 2
                                 ADMINISTRATION

         The Plan shall be administered by the Company's Compensation Committee
("Committee"), which shall consist solely of not fewer than two (2)
"non-employee directors" (within the meaning of Rule 16b-3(b)(3) under the
Securities Exchange Act of 1934, or any successor thereto) of the Company who
are also "outside directors" (within the meaning of Treas. Reg.
Section 1.162-27(e)(3), or any successor thereto), who shall be appointed by,
and shall serve at the pleasure of, the Company's Board of Directors ("Board").
Each member of such Committee, while serving as such, shall be deemed to be
acting in his or her capacity as a director of the Company.

         The Committee shall have the authority, subject to the terms of the
Plan, to select the persons to be granted ISOs and NQSOs under the Plan, to
grant Options on behalf of the

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Company, and to set the date of grant and the other terms of such Options. The
Committee may correct any defect, supply any omission and reconcile any
inconsistency in the Plan and in any Option granted hereunder in the manner and
to the extent it shall deem desirable. The Committee also shall have the
authority to establish such rules and regulations, not inconsistent with the
provisions of the Plan, for the proper administration of the Plan, and to amend,
modify or rescind any such rules and regulations, and to make such
determinations and interpretations under, or in connection with, the Plan, as it
deems necessary or advisable. All such rules, regulations, determinations and
interpretations shall be binding and conclusive upon the Company, its
Subsidiaries and shareholders and all officers and employees and former officers
and employees, and upon their respective legal representatives, beneficiaries,
successors and assigns and upon all other persons claiming under or through any
of them. The Committee may delegate to the Office of the President and/or to
other senior officers of the Company its duties under the Plan pursuant to such
conditions or limitations as the Committee may establish, except that only the
Committee may make any awards to or determinations regarding grants to employees
who are subject to Section 16 of the Securities Exchange Act of 1934.

         No member of the Board or the Committee, and no delegate of the
Committee, shall be liable for any action or determination made in good faith
with respect to the Plan or any Option granted hereunder.

                                    SECTION 3
                                   ELIGIBILITY

         The class of employees who shall be eligible to receive Options under
the Plan shall be the Key Employees (including any directors who also are Key
Employees) of the Company and/or of a Subsidiary. Key Employees of the Company
and/or of a Subsidiary which is a "subsidiary corporation" (within the meaning
of section 424(f) of the Code) of the Company shall be eligible to receive ISOs
and/or NQSOs. Key Employees of a Subsidiary which is not a "subsidiary
corporation" (within the meaning of section 424(f) of the Code) shall be
eligible to receive NQSOs only. A "Key Employee" is an officer or other employee
who occupies a responsible executive, professional, managerial or administrative
position and who the Committee believes has the capacity to contribute to the
long-term success of the Company and its Subsidiaries. More than one Option may
be granted to a Key Employee under the Plan.

                                    SECTION 4
                                      STOCK

         Subject to adjustment as hereinafter provided, the aggregate number of
shares of common stock of the Company, no par value ("Common Shares"), that may
be subject to Options under the Plan shall equal (i) 2,000,000 shares reduced by
the number of shares subject to options outstanding immediately prior to July
17, 2000, (ii) multiplied by two, (iii) reduced by the number of shares subject
to options issued on or after July 17, 2000, and (iv) increased by the number of
shares subject to options expiring or terminating on or after July 17, 2000,
which aggregate number equals 470,575 shares as of the effective date of this
amended and restated

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Plan. Shares issuable under the Plan may be authorized but unissued shares or
reacquired shares, as the Company may determine from time to time. Any Common
Shares subject to an Option which expires or otherwise terminates for any reason
whatever (including, without limitation, the Key Employee's surrender thereof)
without having been exercised shall continue to be available for the granting of
Options under the Plan.

         Notwithstanding anything in this Plan to the contrary, no Key Employee
shall receive Options for more than 1,200,000 Common Shares under the Plan;
provided, however, that in the case of a Key Employee who has exercised options
under the Plan prior to July 17, 2000, the maximum number of Common Shares
available to such Key Employee shall equal (i) 600,000 Common Shares reduced by
the number of Common Shares received by the Key Employee upon the exercise of
Options under this Plan prior to July 17, 2000, (b) multiplied by two. If an
Option is cancelled, the Common Shares covered by the cancelled Option shall be
counted against such maximum number of shares for which Options may be granted
to a single Key Employee. If the exercise price of an Option is reduced after
the date of grant, the transaction shall be treated as a cancellation of the
original Option and the grant of a new Option for purposes of counting the
maximum number of shares for which Options may be granted to a single Key
Employee.

                                    SECTION 5
                                  ANNUAL LIMIT

         (a)      ISOs. The aggregate Fair Market Value (determined as of the
date the ISO is granted) of the Common Shares with respect to which ISOs become
exercisable for the first time by a Key Employee during any calendar year (under
this Plan and any other ISO plan of the Company, of any parent corporation
(within the meaning of section 424(e) of the Code ("Parent")), or of any
subsidiary corporation (within the meaning of section 424(f) of the Code) shall
not exceed $100,000. The term "Fair Market Value" shall mean the value of the
Common Shares arrived at by a good faith determination of the Committee and
shall be:

                  (1)      The quoted closing price, if there is a market for
and there are sales of Common Shares on a registered securities exchange or in
an over the counter market, on the date specified;

                  (2)      The weighted average of the quoted closing prices on
the nearest date before and the nearest date after the specified date, if there
are no sales of Common Shares on the specified date but there are such sales on
dates within a reasonable period both before and after the specified date;

                  (3)      The mean between the bid and asked prices, as
reported by the National Quotation Bureau on the specified date, if actual sales
are not available during a reasonable period beginning before and ending after
the specified date; or

                  (4)      Such other method of determining Fair Market Value as
shall be authorized by the Code, or the rules or regulations thereunder, and
adopted by the Committee.

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                  Where the Fair Market Value of Common Shares is determined
under (2) above, the average of the closing prices on the nearest sales date
before and the nearest date after the specified date shall be weighted inversely
by the respective numbers of trading days between the dates of reported sales
and the specified date (i.e., the valuation date), in accordance with Treasury
Regulation Section 20.2031-2(b)(1), or any successor thereto, under the Code.

         (b)      OPTIONS OVER ANNUAL LIMIT. If an Option intended as an ISO is
granted to a Key Employee and such Option may not be treated in whole or in part
as an ISO pursuant to the limitation in (a) above, such Option shall be treated
as an ISO to the extent it may be so treated under such limitation and as an
NQSO as to the remainder. For purposes of determining whether an ISO would cause
such limitation to be exceeded, ISOs shall be taken into account in the order
granted.

         (c)      NQSOs. The annual limit set forth above for ISOs shall not
apply to NQSOs.

                                    SECTION 6
                                     OPTIONS

         (a)      GRANTING OF OPTIONS. From time to time until the expiration or
earlier suspension or discontinuance of the Plan, the Committee may, on behalf
of the Company, grant to Key Employees under the Plan such Options as it
determines are warranted, subject to the limitations of the Plan; provided,
however, that grants of ISOs and NQSOs shall be separate and not in tandem i.e.,
a Key Employee's exercise of an ISO shall not affect his or her right to
exercise an NQSO, and vice versa). The granting of an Option under the Plan
shall not be deemed either to entitle the Key Employee to, or to disqualify the
Key Employee from, any participation in any other grant of Options under the
Plan. In making any determination as to whether a Key Employee shall be granted
an Option and as to the number of shares to be covered by such Option, the
Committee shall take into account the duties of the Key Employee, the
Committee's views as to his or her present and potential contributions to the
success of the Company or a Subsidiary, and such other factors as the Committee
shall deem relevant in accomplishing the purposes of the Plan. Moreover, the
Committee may determine that the Grant Letter (as defined below) shall provide
that said Option may be exercised only if certain conditions, as determined by
the Committee, are fulfilled.

         (b)      TERMS AND CONDITIONS OF OPTIONS. The Options granted pursuant
to the Plan shall specify whether they are ISOs or NQSOS; however, if the Option
is not designated in the Grant Letter as an ISO or NQSO, the Option shall
constitute an ISO if it complies with the terms of section 422 of the Code, and
otherwise, it shall constitute an NQSO. In addition, the Options granted
pursuant to the Plan shall include expressly or by reference the following terms
and conditions, as well as such other provisions not inconsistent with the
provisions of this Plan as the Committee shall deem desirable, and for ISOs
granted under this Plan, the provisions of section 422(b) of the Code:

                  (1)      NUMBER OF SHARES. A statement of the number of Common
Shares to which the Option pertains.

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                  (2)      PRICE. A statement of the Option exercise price,
which shall be determined and fixed by the Committee in its discretion at the
time of grant, but shall not be less than 100% (110% in the case of an ISO
granted to a more than 10% shareholder as provided in Subsection (10) below) of
the Fair Market Value of the optioned Common Shares on the date the Option is
granted.

                  (3)      TERM.

                           (A)      ISOs. Subject to earlier termination as
provided in Subsections (5) through (8) below, the term of each ISO shall be not
more than 10 years (5 years in the case of a more than 10% shareholder as
provided in Subsection (10) below) from the date of grant.

                           (B)      NQSQs. Subject to earlier termination as
provided in Subsections (5) through (8) below, the term of each NQSO shall be
not more than 10 years from the date of grant.

                  (4)      EXERCISE.

                           (A)      GENERAL. Options shall be exercisable in
such installments, on such dates, and/or upon fulfillment of such other
conditions as the Committee may specify, provided, however, that Options granted
prior to October 2, 2001, shall be exercisable in such installments commencing
not less than 12 months from the date of grant; and further provided that:

                                    (i)      In the case of new Options granted
to a Key Employee in replacement for options (whether granted under this Plan or
otherwise) held by the Key Employee, the new Options may be made exercisable, if
so determined by the Committee, in its discretion, at the earliest date the
replaced options were exercisable; and

                                    (ii)     The Committee may accelerate the
exercise date of any outstanding Options in its discretion, if it deems such
acceleration to be desirable.

                  Any Common Shares the right to the purchase of which has
accrued under an Option may be purchased at any time up to the expiration or
termination of the Option. Exercisable Options may be exercised, in whole or in
part, from time to time by giving written notice of exercise to the Company at
its principal office, specifying the number of Common Shares to be purchased and
accompanied by payment in full of the aggregate Option exercise price for such
shares. Options may not be exercised in installments of less than 25 shares,
unless such Option is exhausted upon its exercise. Only full shares shall be
issued under the Plan, and any fractional share which might otherwise be
issuable upon the exercise of an Option granted hereunder shall be forfeited.

                           (B)      MANNER OF PAYMENT. The Option price shall be
payable:

                                    (i)      In cash or its equivalent;

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                                    (ii)     In the case of Options granted on
or after May 16, 2000, in Common Shares previously acquired by the Key Employee;
provided that if such Common Shares were acquired through the exercise of an ISO
or NQSO, such shares have been held by the Key Employee for such period of time
as required to be considered "mature" shares for purposes of accounting
treatment; and further provided, that with respect to Options granted prior to
May 16, 2000, in the case of an ISO, if the Committee, in its discretion, causes
the Grant Letter so to provide and in the case of an NQSO if the Committee, in
its discretion, so determines at or prior to the time of exercise, in Common
Shares previously acquired by the Key Employee, provided that if such shares
were acquired through the exercise of an ISO granted under this Plan or any
other plan of the Company and are used to pay the Option exercise price of an
ISO, such shares have been held by the Key Employee for a period of not less
than the holding period described in section 422(a)(1) of the Code on the date
of exercise, or if such Common Shares were acquired through exercise of an NQSO
or ISO granted under this Plan or any other plan of the Company and are used to
pay the Option exercise price of an NQSO, such shares have been held by the Key
Employee for a period of more than 12 months on the date of exercise; or

                                    (iii)    In any combination of (i) and (ii)
above.

                  In the event such Option exercise price is paid, in whole or
in part, with Common Shares, the portion of the Option exercise price so paid
shall equal the Fair Market Value on the date of exercise of the Option of the
Common Shares surrendered in payment of such Option exercise price.

                  (5)      TERMINATION OF EMPLOYMENT. If a Key Employee's
employment by the Company (and Subsidiaries) is terminated by either party prior
to the expiration date fixed for his or her Option for any reason other than
death, disability, Retirement or Cause (as hereinafter defined), such Option may
be exercised, to the extent of the number of shares with respect to which the
Key Employee could have exercised it on the date of such termination, or to any
greater extent permitted by the Committee, by the Key Employee at any time prior
to the earlier of:

                           (A)      The expiration date specified in such
Option; or

                           (B)      Three months after the date of such
termination of employment.

                  If a Key Employee's employment by the Company (and
Subsidiaries) is terminated for Cause, all Options held by the Key Employee
shall terminate concurrently with receipt by the Optionee of oral or written
notice that his or her employment has been terminated. For purposes of this
Plan, termination for Cause shall include termination by reason of any dishonest
or illegal act, or any willful refusal or failure to perform duties properly
assigned.

                  (6)      EXERCISE UPON RETIREMENT OF KEY EMPLOYEE. If a Key
Employee' s employment is terminated prior to the expiration date fixed for his
or her Option by reason of Retirement (as hereinafter defined), such Option
shall accelerate and may be exercised, to the extent it remains unexercised on
the date of such Retirement, by the Key Employee at any time prior to the
earlier of:

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                           (A)      The expiration date specified in such
Option; or

                           (B)      One year after the date of such Retirement.

                  For purposes of this Plan, Retirement shall mean, effective
for options granted on or after February 12, 2002, a Key Employee's retirement
from the Company and its Subsidiaries at or after attaining age 50 and
completing at least three years of employment with the Company and its
Subsidiaries, provided the sum of such Employee's age and years of employment
with the Company and its Subsidiaries equals or exceeds 60. With respect to
options granted prior to February 12, 2002, Retirement shall mean (i) for
options granted on or after May 16, 2000, a Key Employee's retirement from the
Company and its Subsidiaries at or after attaining age 65 and completing at
least five years of employment with the Company and its Subsidiaries, or before
such time if expressly agreed to by the Company, and (ii) for options granted
prior to May 16, 2000, a Key Employee's retirement from the Company and its
Subsidiaries at or after attaining age 65 or before age 65 if expressly agreed
to by the Company. The Office of the President of the Company shall have the
authority to grant requests for termination on account of Retirement under the
Plan, provided the age and/or employment requirements of the applicable standard
are met.

                  (7)      EXERCISE UPON DISABILITY OF KEY EMPLOYEE. If a Key
Employee shall become disabled (within the meaning of section 22(e)(3) of the
Code) during his or her employment and, prior to the expiration date fixed for
his or her Option, his or her employment is terminated as a consequence of such
disability, such Option shall accelerate and may be exercised, to the extent it
remains unexercised on the date of such termination, by the Key Employee at any
time prior to the earlier of:

                           (A)      The expiration date specified in such
Option; or

                           (B)      One year after the date of such termination
of employment.

                  In the event of the Key Employee's legal disability, such
Option may be so exercised by the Key Employee's legal representative.

                  (8)      EXERCISE UPON DEATH OF KEY EMPLOYEE. If a Key
Employee shall die during his or her employment and prior to the expiration date
fixed for his or her Option, or if a Key Employee whose employment is terminated
for any reason shall die following his or her termination of employment but
prior to the earliest of:

                           (A)      The expiration date fixed for his or her
Option;

                           (B)      The expiration of the period determined
under Subsections (5), (6) (if applicable), and (7) above; or

                           (C)      In the case of an ISO which is to remain an
ISO, three months following termination of employment;

                                      - 7 -

<PAGE>

his or her Option shall accelerate and may be exercised, to the extent it
remains unexercised on the date of his or her death, by the Key Employee's
estate, personal representative or beneficiary who acquired the right to
exercise such Option by bequest or inheritance or by reason of the death of the
Key Employee, at any time prior to the earlier of:

                                    (i)      The expiration date specified in
such Option; or

                                    (ii)     One year after the date of death.

                  (9)      RIGHTS AS A SHAREHOLDER. A Key Employee shall have no
rights as a shareholder with respect to any shares covered by his or her Option
until the issuance of a stock certificate to him or her for such shares.

                  (10)     TEN PERCENT SHAREHOLDER. If the Key Employee owns
more than 10% of the total combined voting power of all shares of stock of the
Company or of a Subsidiary or Parent at the time an ISO is granted to such Key
Employee, the Option exercise price for the ISO shall be not less than 110% of
the Fair Market Value of the optioned Common Shares on the date the ISO is
granted, and such ISO, by its terms, shall not be exercisable after the
expiration of five years after the date the ISO is granted. The conditions set
forth in this Subsection (10) shall not apply to NQSOS.

         (c)      GRANT LETTERS. Options granted under the Plan shall be
evidenced by written documents ("Grant Letters") in such form as the Committee
shall, from time to time, approve, which Grant Letters shall contain such
provisions, not inconsistent with the provisions of the Plan, for NQSOs granted
pursuant to the Plan, and such conditions, not inconsistent with section 422(b)
of the Code or the provisions of the Plan, for ISOs granted pursuant to the
Plan, as the Committee shall deem advisable, and which Grant Letters shall
specify whether the Option is an ISO or NQSO; provided, however, if the Option
is not designated in the Grant Letter as an ISO or NQSO, the Option shall
constitute an ISO if it complies with the terms of section 422 of the Code, and
otherwise, it shall constitute an NQSO. Each Key Employee shall be bound by the
terms of the Grant Letter.

                                    SECTION 7
                               CAPITAL ADJUSTMENTS

         The number of shares which may be issued under the Plan, the maximum
number of shares with respect to which Options may be granted to any Key
Employee under the Plan, both as stated in Section 4 hereof, and the number of
shares issuable upon exercise of outstanding Options under the Plan (as well as
the Option exercise price per share under such outstanding Options) shall,
subject to the provisions of section 424(a) of the Code, be adjusted, as may be
deemed appropriate by the Committee, to reflect any stock dividend, stock split,
share combination, or similar change in the capitalization of the Company.

         In the event of a corporate transaction (as that term is described in
section 424(a) of the Code and the Treasury Regulations issued thereunder as,
for example, a merger, consolidation,

                                      - 8 -

<PAGE>

acquisition of property or stock, separation, reorganization, or liquidation),
each outstanding Option shall be assumed by the surviving or successor
corporation; provided, however, that in the event of a proposed corporate
transaction, the Committee may terminate all or a portion of the outstanding
Options if it determines that such termination is in the best interests of the
Company. If the Committee decides to terminate outstanding Options, the
Committee shall give each Key Employee holding an Option to be terminated not
less than ten days' notice prior to any such termination by reason of such a
corporate transaction, and any such Option which is to be so terminated shall
become fully exercisable and may be exercised up to, and including the date
immediately preceding such termination.

         The Committee also may, in its discretion, change the terms of any
outstanding Option to reflect any such corporate transaction, provided that, in
the case of ISOs which are to remain ISOs, such change is excluded from the
definition of a "modification" under section 424(h) of the Code unless the
Option holder consents to such change.

                                    SECTION 8
                                CHANGE IN CONTROL

         All Options shall become fully vested and exercisable upon a Change in
Control of the Company. "Change in Control" shall mean any of the following
events:

         (a)      An acquisition (other than directly from the Company) of any
voting securities of the Company ("Voting Securities") by any "Person" (as such
term is used for purposes of section 13(d) or 14(d) of the Securities Exchange
Act of 1934, as amended (the "1934 Act")) immediately after which such Person
has "Beneficial Ownership" (within the meaning of Rule 13d-3 promulgated under
the 1934 Act) of 50% or more of the combined voting power of all then
outstanding Voting Securities, provided, however, that any such acquisition
approved by two-thirds of the Incumbent Board (as hereinafter defined) shall not
be deemed to be a Change in Control;

         (b)      The individuals who, as of November 11, 1998, are members of
the Company's Board of Directors (the "Incumbent Board") cease for any reason to
constitute at least two-thirds of the Board of Directors; provided, however,
that if the election, or nomination for election by the shareholders, of any new
director was approved by a vote of at least two-thirds of the members of the
Board of Directors who constitute Incumbent Board members, such new directors
shall for all purposes be considered as members of the Incumbent Board as of
November 11, 1998; provided further, however, that no individual shall be
considered a member of the Incumbent Board if such individual initially assumed
office as a result of either an actual or threatened "Election Contest" (as
described in Rule 14a-11 promulgated under the 1934 Act) or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other
than the Board of Directors (a "Proxy Contest") including by reason of any
agreement intended to avoid or settle any Election Contest or Proxy Contest;

         (c)      Approval by shareholders of the Company of (1) a merger or
consolidation involving the Company if the shareholders of the Company
immediately before such merger or

                                      - 9 -

<PAGE>

consolidation do not own, directly or indirectly, immediately following such
merger or consolidation more than 50% of the combined voting power of the
outstanding Voting Securities of the corporation resulting from such merger or
consolidation in substantially the same proportion as their ownership of the
Voting Securities immediately before such merger or consolidation or (2) a
complete liquidation or dissolution of the Company or an agreement for the sale
or other disposition of all or substantially all of the assets of the Company;
or

         (d)      Acceptance of shareholders of the Company of shares in a share
exchange if the shareholders of the Company immediately before such share
exchange do not own, directly or indirectly, immediately following such share
exchange more than 50% of the combined voting power of the outstanding Voting
Securities of the corporation resulting from such share exchange in
substantially the same proportion as their ownership of the Voting Securities
outstanding immediately before such share exchange.

                                    SECTION 9
                     AMENDMENT OR DISCONTINUANCE OF THE PLAN

         At any time and from time to time, the Board may suspend or terminate
the Plan or amend it, and the Committee may amend any outstanding Options, in
any respect whatsoever, except that the following amendments shall require the
approval by the affirmative votes of holders of at least a majority of the
shares present, or represented, and entitled to vote at a duly held meeting of
shareholders of the Company:

         (a)      With respect to ISOS, any amendment which would:

                  (1)      Change the class of employees eligible to participate
in the Plan;

                  (2)      Except as permitted under Section 7 hereof, increase
the maximum number of Common Shares with respect to which ISOs may be granted
under the Plan; or

                  (3)      Extend the duration of the Plan under Section 10
hereof with respect to any ISOs granted hereunder; and

         (b)      Any amendment which would require shareholder approval
pursuant to Treasury Regulation Section 1.162-27(e)(4)(vi), or any successor
thereto.

         Notwithstanding the foregoing, no such suspension, discontinuance or
amendment shall materially impair the rights of any holder of an outstanding
Option without the consent of such holder.

                                     - 10 -

<PAGE>

                                   SECTION 10
                               TERMINATION OF PLAN

         Unless earlier terminated as provided in the Plan, the Plan and all
authority granted hereunder shall terminate absolutely at 12:00 midnight on
November 10, 2008, which date is within ten years after the date the Plan was
adopted by the Board, and no Options hereunder shall be granted thereafter.
Nothing contained in this Section 10, however, shall terminate or affect the
continued existence of rights created under Options issued hereunder and
outstanding on November 10, 2008 which by their terms extend beyond such date.

                                   SECTION 11
                                 EFFECTIVE DATE

         This Plan became effective on November 11, 1998 (the date the Plan was
adopted by the Board); provided, however, that if the Plan is not approved by
the shareholders in the manner described in Section 9 within 12 months after
such date, the Plan and all Options granted hereunder shall be null and void. As
amended and restated, the Plan shall be effective March 21, 2003.

                                   SECTION 12
                                  MISCELLANEOUS

         (a)      GOVERNING LAW. The Plan and the Grant Letters entered into,
and the Options granted thereunder, shall be governed by the applicable Code
provisions to the maximum extent possible. Otherwise, the operation of, and the
rights of Key Employees under, the Plan, the Grant Letters, and the Options
shall be governed by applicable federal law and otherwise by the laws of the
Commonwealth of Pennsylvania.

         (b)      RIGHTS. Neither the adoption of the Plan nor any action of the
Board or the Committee shall be deemed to give any individual any right to be
granted an Option, or any other right hereunder, unless and until the Committee
shall have granted such individual an Option, and then his or her rights shall
be only such as are provided by this Plan and the Grant Letter.

         Any Option under the Plan shall not entitle the holder thereof to any
rights as a shareholder of the Company prior to the exercise of such Option and
the issuance of the shares pursuant thereto. Further, notwithstanding any
provisions of the Plan or any Grant Letter with a Key Employee, the Company
shall have the right, in its discretion, to retire a Key Employee at any time
pursuant to its retirement rules or otherwise to terminate his or her employment
at any time for any reason whatsoever.

         (c)      NO OBLIGATION TO EXERCISE OPTION. The granting of an Option
shall impose no obligation upon a Key Employee to exercise such Option.

                                     - 11 -

<PAGE>

         (d)      NON-TRANSFERABILITY. No Option which is to remain an ISO and,
except as otherwise provided by the Committee, no other Option shall be
assignable or transferable by the Key Employee otherwise than by will or by the
laws of descent and distribution, and subject to the preceding clause, during
the lifetime of the Key Employee, any Options shall be exercisable only by him
or her or by his or her guardian or legal representative. If a Key Employee is
married at the time of exercise of an Option and if the Key Employee so requests
at the time of exercise, the certificate or certificates issued shall be
registered in the name of the Key Employee and the Key Employee's spouse,
jointly, with right of survivorship.

         (e)      WITHHOLDING AND USE OF SHARES TO SATISFY TAX OBLIGATIONS. The
obligation of the Company to deliver Common Shares to a Key Employee pursuant to
any Option under the Plan shall be subject to applicable federal, state and
local tax withholding requirements.

         With respect to Options granted on or after May 16, 2000, in order to
satisfy the withholding requirements of applicable federal tax laws, Key
Employees may satisfy the minimum required federal withholding tax, in whole or
in part, by returning to the Company Common Shares, which shares shall be
valued, for this purpose, at their Fair Market Value on the date of exercise of
the Option (or if later, the date on which the Key Employee recognizes ordinary
income with respect to such exercise) ("Determination Date"). Alternatively, the
Committee, in its discretion, may permit the Key Employee to satisfy the minimum
required federal withholding tax, in whole or in part, by electing to have the
Company withhold Common Shares. An election to use Common Shares to satisfy tax
withholding requirements must be made in compliance with and subject to any
withholding rules adopted by the Committee. The Company may not withhold shares
in excess of the number necessary to satisfy the minimum required federal income
tax withholding requirements. In the event Common Shares acquired under the
exercise of an Option, granted under this Plan or any other plan of the Company,
are used to satisfy such withholding requirement, such Common Shares must have
been held by the Key Employee for such period of time as required to be
considered "mature" shares for purposes of accounting treatment; provided,
however, with respect to Options granted prior to May 16, 2000, in the event
Common Shares acquired under the exercise of an ISO, granted under this Plan or
any other plan of the Company, are used to satisfy such withholding
requirements, such Common Shares must have been held by the Key Employee for a
period of not less than the holding period described in section 422(a)(1) of the
Code on the Determination Date, or if such Common Shares were acquired through
exercise of an NQSO, granted under the Plan or any other plan of the Company,
such option must have been granted to the Key Employee at least six (6) months
prior to the Determination Date.

         (f)      LISTING AND REGISTRATION OF SHARES. Each Option shall be
subject to the requirement that, if at any time the Committee shall determine,
in its discretion, that the listing, registration or qualification of the shares
covered thereby upon any securities exchange or under any state or federal law,
or the consent or approval of any governmental regulatory body, is necessary or
desirable as a condition of, or in connection with, the granting of such Option
or the purchase or vesting of shares thereunder, or that action by the Company
or by the Key Employee should be taken in order to obtain an exemption from any
such requirement, no such Option may be exercised, in whole or in part, unless
and until such listing, registration, qualification, consent, approval, or
action shall have been effected, obtained, or taken under conditions acceptable
to the

                                     - 12 -

<PAGE>

Committee. Without limiting the generality of the foregoing, each Key Employee
or his or her legal representative or beneficiary may also be required to give
satisfactory assurance that shares purchased upon exercise of an Option are
being purchased for investment and not with a view to distribution, and
certificates representing such shares may be legended accordingly.

         (g)      MODIFICATION OF OPTION. With respect to Options outstanding on
February 9, 1999, and to Options granted on and after such date, notwithstanding
any provision of this Plan to the contrary (other than Section 7), the option
price of an outstanding Option shall not, without the prior approval of the
Company's stockholders, be reduced whether through amendment, cancellation,
replacement grants, or other similar means; provided, however, that this shall
not preclude the grant, in accordance with the provisions of this Plan, of
additional Options: (1) not in replacement, in whole or in part, of cancelled
Options, or (2) following expiration of Options.

                                     - 13 -

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