Document:

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                                                                    EXHIBIT 10.3

                           CHANGE-IN-CONTROL AGREEMENT

         AGREEMENT, made and entered into as of the first day of May, 2001 (the
"Effective Date") by and between SL Industries, Inc., a New Jersey corporation
(the "Company"), and Jacob Cherian (the "Executive").

         WHEREAS, the Executive is the Vice President and Corporate Controller
of the Company;

         WHEREAS, the Company desires to provide certain protection to the
Executive in the event of a change-in-control of the Company in order to induce
the Executive to remain in the employ of the Company notwithstanding any risks
and uncertainties created by a potential change-in-control; and

         WHEREAS, the Executive desires to provide certain protection to the
Company and its successor in the event of a change-in-control by agreeing to
continue his employment for a specified period after a change-in-control, if
requested to do so, and agreeing not to compete with the Company or to solicit
the Company's employees and customers upon termination of employment with the
Company.

         NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration, the receipt of
which is mutually acknowledged, the Company and the Executive agree as follows:

1. EFFECTIVENESS; TERM

         This Agreement shall become effective as of the date hereof and shall
terminate on the tenth anniversary of the date hereof, or on such other date as
the parties hereto mutually agree in writing.

2. TERMINATION OF THE EXECUTIVE'S EMPLOYMENT FOLLOWING A CHANGE-IN-CONTROL

         (a) If the Executive's employment is terminated by the Company or its
successor, or the Executive terminates his employment with the Company or its
successor, and either termination occurs within one year following a
Change-in-Control (as hereinafter defined), or within one year following
execution by the Company of a definitive agreement contemplating a
Change-in-Control that occurs, whichever is later (the date of such termination
hereinafter the "Termination Date"), the Executive shall be entitled to receive
a Change-in-Control Payment (as hereinafter defined) with respect to such
termination.

         (b) Notwithstanding the foregoing, the Executive shall not be entitled
to receive the Change-in-Control Payment if the Executive's employment with the
Company or its successor is terminated due to death or disability (defined as
the inability or incapacity of the Executive, due to any medically determined
physical or mental impairment, to perform the Executive's duties
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and responsibilities for the Company for a total of one hundred eighty (180)
days).

         (c) "Change-in-Control Payment" means the product of two times the
Executive's annual rate of salary compensation in effect as of the Termination
Date.

         (d) "Change-in-Control" means that any of the following has occurred:

                  (i)      any person or other entity, including any person as
                           defined in Section 13(d)(3) of the Securities
                           Exchange Act of 1934 as amended (the "Exchange Act"),
                           becomes the beneficial owner, as defined in Rule
                           13d-3 under the Exchange Act, directly or indirectly,
                           of at least thirty percent (30%) or more of the total
                           combined voting power of all classes of capital stock
                           of the Company entitled to vote for the election of
                           directors of the Company (the "Voting Stock");

                  (ii)     the stockholders of the Company approve the sale of
                           all or substantially all of the assets of the Company
                           and such sale occurs;

                  (iii)    the Company's Board of Directors (the "Board")
                           approves the sale of a substantial portion of the
                           Company's assets, the proceeds of which are not
                           intended or reserved for subsequent reinvestment in
                           the Company, which sale the Board determines, in its
                           sole discretion, shall result in a material
                           diminution of the Employee's position, authority,
                           duties or responsibilities and such sale occurs;

                  (iv)     the stockholders of the Company approve a
                           consolidation or merger of the Company with another
                           corporation, the consummation of which would result
                           in the stockholders of the Company immediately before
                           the occurrence of the consolidation or merger owning,
                           in the aggregate, fifty percent (50%) or less of the
                           Voting Stock of the surviving entity, and such
                           consolidation or merger occurs; or

                  (v)      a change in the Board occurs with the result that the
                           members of the Board on the Effective Date (the
                           "Incumbent Directors") no longer constitute a
                           majority of such Board, provided that any person
                           becoming a director (other than a director whose
                           initial assumption of office is in connection with an
                           actual or threatened election contest or the
                           settlement thereof, including but not limited to a
                           consent solicitation relating to the election of
                           directors of the Company) whose election or
                           nomination for election was supported by two-thirds
                           (2/3) of the then Incumbent Directors shall be
                           considered an Incumbent Director for purposes hereof.

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3. TIME OF PAYMENT OF CHANGE-IN-CONTROL PAYMENT

         (a) Except as provided in Section 4 below, any Change-in-Control
Payment to which the Executive is entitled under Section 2 above shall be paid
to the Executive in cash (subject to appropriate withholding) in a lump sum.
Such payment shall be made no later than (i) the effective date of the release
of claims executed by the Employee pursuant to Section 7(c) below, (ii) the
third business day following receipt by the Company of a notice of termination
from the Executive, or (iii) the Termination Date, whichever date is later.

         (b) The Executive shall be paid interest, compounded daily, at the
prime lending rate as announced from time to time by PNC Bank or its successor
on all or any part of the Change-in-Control Payment that is not paid when due.

4. CONTINUATION OF EMPLOYMENT BY THE EXECUTIVE

         Upon request by the Company received by the Executive on or before the
date on which the Change-in-Control shall occur, the Executive agrees to remain
employed with the Company for (i) up to one year after a Change-in-Control as
defined in Section 2(d)(iii) above, or (ii) up to ninety (90) days after a
Change-in-Control as otherwise defined in Section 2(d) above, at the salary and
with the benefits as in effect immediately prior to the Change-in-Control. If
the Executive has provided the Company with a notice of termination on or before
the date on which the Change-in-Control shall occur, the Change-in-Control
Payment shall be provided on the Termination Date provided in such notice of
termination.

5. CONTINUATION OF WELFARE BENEFITS

         Notwithstanding anything contained herein to the contrary, if the
Executive is entitled to receive the Change-in-Control Payment, the Company or
its successor shall continue to pay premiums on behalf of the Executive, as if
the Executive were still an employee of the Company, in the medical, dental,
hospitalization and life insurance plans, programs and/or arrangements of the
Company or any of its subsidiaries in which the Executive was participating on
the Termination Date on the same terms and conditions as other employees under
such plans, programs and/or arrangements until the earlier of (i) the end of the
24-month period following the Termination Date or (ii) the date, or dates, the
Executive is entitled to receive substantially equivalent coverage and benefits
under the plans, programs and/or arrangements of a subsequent employer (such
coverage and benefits to be determined on a coverage-by-coverage or
benefit-by-benefit basis). The Executive shall be eligible to continue his
benefits through COBRA at his own expense, to the extent provided by law.

6. NON-COMPETE AND NON-SOLICITATION

         (a) In consideration of the Company entering into this Agreement and
providing the compensation and benefits to be provided by the Company to the
Executive, the Executive agrees that the Executive will not, from the Effective
Date until one year after the Termination Date, engage in any Competitive
Activity. For purposes of this Agreement, the term

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"Competitive Activity" shall mean engaging in any of the following activities:
(i) serving as a director of any Competitor (as hereinafter defined); (ii)
directly or indirectly through one or more intermediaries, either (x)
controlling any Competitor or (y) owning any equity or debt interests in any
Competitor (other than equity or debt instruments that are public traded and, at
the time of any acquisition, when combined with other holdings, do not exceed
five percent (5%) of the particular class of interests outstanding) (it being
understood that, if interests in any Competitor are owned by an investment
vehicle or other entity in which the Employee owns an equity interest, a portion
of the interests in such Competitor owned by such entity shall be attributed to
the Employee, such portion determined by applying the percentage of the equity
interest in such entity); (iii) employment by (including serving as an officer
or partner of), providing consulting services to (including, without limitation,
as an independent contractor), or managing or operating the business or affairs
of, or being a lender to, any Competitor; or (iv) participating in the
ownership, management, operation or control of any Competitor. For purposes of
this Agreement, the term "Competitor" shall mean any person (other than the
Company or any majority-owned subsidiary of the Company) that engages in any
Business (as determined at the time of termination of employment) in the United
States in competition with the Company. For purposes of this Agreement, the term
"Business" shall mean the design, manufacture and marketing of power and data
quality equipment and systems for industrial, medical, aerospace,
telecommunications and consumer applications.

         (b) The Executive agrees that, if the Executive receives a
Change-in-Control Payment as set forth in Section 2 above, the Executive shall
not directly or indirectly through another entity (i) induce or attempt to
induce any employee of the Company or of any affiliate of the Company to leave
the employ of the Company or such affiliate, or in any way interfere with the
relationship between the Company and such affiliate and any employee thereof, or
(ii) induce or attempt to induce any customer, supplier, licensee, licensor,
franchisee or other business relation of the Company (or any affiliate of the
Company) to cease doing business with the Company (or any affiliate of the
Company), or in any way interfere with the relationship between such customer,
supplier, licensee or business relation of the Company (or any affiliate of the
Company). For purposes of this Agreement, a customer, supplier, licensee,
licensor, franchisee or business relation means any person or entity which at
the time of determination is, or has been within one (1) year prior to such
time, a customer, supplier, licensee, licensor, franchisee or other business
relation of the Company (or any affiliate of the Company).

         (c) In the event of a Change-in-Control Payment, the Company may value
the non-competition and non-solicitation covenants and allocate the Payment
accordingly.

         (d) The Executive agrees that any violation of this Agreement will
cause immediate and irreparable harm to the Company, the amount of which will be
impossible to estimate or determine. The Executive further agrees that the
Company shall have the right to equitable relief by injunction or otherwise
(without the necessity of posting bond or other security) and the Executive
hereby knowingly waives the claim or defense that the Company has an adequate
remedy at law. The rights and remedies of the Company under this Agreement are
cumulative and are in addition to all other rights and remedies the Company may
have under any local, state or federal law, rule or regulation or otherwise. It
shall not be a defense to the Company's

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enforcement of this Agreement that the Company did breach or may have breached
this Agreement or any other agreement with the Executive, any such defense to
the Company's enforcement of this Agreement being hereby waived.

7. MISCELLANEOUS

         (a) NO EMPLOYMENT AGREEMENT. This Agreement does not constitute a
contract of employment or impose on the Company any obligation to retain the
Executive as an employee.

         (b) DEDUCTIONS AND WITHHOLDING. The Executive agrees that the Company
shall withhold from any and all compensation required to be paid to the
Executive pursuant to this Agreement all federal, state, local and/or other
taxes which the Company determines are required to be withheld in accordance
with applicable statutes and regulations from time to time in effect.

         (c) WAIVER AND RELEASE. The Executive acknowledges that (i) this
Agreement provides benefits greater than the benefits that the Executive would
otherwise be entitled to receive under any employment or severance agreement,
plan, program or arrangement of the Company or between the Company and the
Executive, and (ii) the Company has no obligation to enter into this Agreement.
In consideration of the Company assuming these additional obligations and
entering into this Agreement, the Executive agrees to execute a release of all
claims related to the Executive's employment or termination thereof prior to
payment of the Change-in-Control Payment. Such release will become effective on
the eighth day after it has been executed by the Executive, unless it has been
revoked beforehand.

         (d) ARBITRATION. Except for enforcement of the Executive's covenants
under Section 6, any dispute or controversy arising under or in connection with
this Agreement shall be settled exclusively by arbitration conducted in
Philadelphia, Pennsylvania under the Commercial Arbitration Rules then
prevailing of the American Arbitration Association and such submission shall
request the American Arbitration Association to: (i) appoint an arbitrator
experienced and knowledgeable concerning the matter then in dispute; (ii)
require the testimony to be transcribed; (iii) require the award to be
accompanied by findings of fact and a statement of reasons for the decision; and
(iv) request the matter to be handled by and in accordance with the expedited
procedures provided for in the Commercial Arbitration Rules. The determination
of the arbitrators, which shall be based upon a de novo interpretation of this
Agreement, shall be final and binding and judgment may be entered on the
arbitrators' award in any court having jurisdiction. All costs of the American
Arbitration Association and the arbitrator shall be borne by the Company, unless
the position advanced by the Executive is determined by the arbitrator to be
frivolous in nature.

         (e) LEGAL FEES. Except for legal fees the Executive incurs in defending
Company's enforcement of the Executive's covenants under Section 6, the Company
or its successor shall pay to the Executive all reasonable legal fees and
expenses incurred by the Executive in disputing in good faith any issues
hereunder relating to the termination of the

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Executive's employment, or in seeking in good faith to obtain or enforce any
benefit or right provided by this Agreement. Such payments shall be made within
30 days after delivery of the Executive's written request for payment
accompanied with such evidence of fees and expenses incurred as the Company
reasonably may require.

         (f) NO DUTY TO MITIGATE/SET-OFF. The Company agrees that in order for
the Executive to receive payments or benefits under this Agreement, the
Executive shall not be required to seek other employment. Further, the amount of
any such payment or benefit shall not be reduced by any compensation earned by
the Executive or any benefit provided to the Executive as the result of
employment by the Company or its successor after a Change-in-Control pursuant to
Section 4 hereof, by another employer, or otherwise, except as provided in
Section 5 or 7(g) hereof. The Company's obligations to make any payment or
provide any benefit under this Agreement shall not be affected by any
circumstances, including, without limitation, any set-off, counterclaim,
recoupment, defense or other right which the Company or a successor may have
against the Executive.

         (g) OFFSET. The Change-in-Control Payment shall be reduced by any
severance cash payment made by the Company or any subsidiary of the Company to
the Executive pursuant to (i) any severance plan, program, policy or arrangement
of the Company or any subsidiary of the Company, (ii) any employment or
consulting agreement between the Company or any subsidiary of the Company and
the Executive, and (iii) any federal, state or local statute, rule, regulation
or ordinance.

         (h) ENTIRE AGREEMENT. This Agreement embodies the entire agreement of
the parties with respect to any payment and benefit which may become due or
owing to the Executive in the event of a termination in connection with a
Change-in-Control and supersedes any other prior oral or written agreements
between the Executive and the Company with respect thereto, including that
certain Agreement Regarding Severance Benefit dated as of December 29, 2000, by
and between the Executive and the Company. To the extent that any payments or
benefits conferred upon the Executive herein are invalidated or rendered
unenforceable by a court of competent jurisdiction, the payments and benefits
provided in such other agreements shall remain in full force and effect.

         (i) OTHER AGREEMENTS. Except as provided in paragraph (h) above,
nothing in this Agreement shall affect or modify (i) any obligations the
Executive has under any agreement with the Company with respect to confidential
information, assignment of inventions and discoveries, non-solicitation of
employees and customers, non-competition, or otherwise, or (ii) any payments or
benefits the Executive may be entitled to receive under any agreement with
respect to severance payments not in connection with a Change-in-Control, the
acceleration of options or other Stock Awards, or otherwise, and all such
agreements remain in full force and effect.

         (j) AMENDMENTS. No party may amend, modify or terminate this Agreement
without the express written consent of the other party.

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         (k) BINDING AGREEMENT. This Agreement shall be binding upon the Company
and its successors and assigns and shall inure to the benefit of and be
enforceable by the Executive's personal or legal representatives, executors,
administrators, heirs, distributees, devises and legatees and the Company's
successors and assigns.

         (l) GOVERNING LAW; VENUE AND JURISDICTION. This Agreement shall be
governed and construed in accordance with the laws of the State of New Jersey
without reference to conflict of laws principles. The Executive does hereby
irrevocably consent that any legal action or proceeding arising out of or in any
manner relating to this Agreement, or any other document delivered in connection
herewith, shall be brought exclusively in any state court in Burlington County,
New Jersey or in any federal court in the District of New Jersey. The Executive
further irrevocably consents to the service of any complaint, summons, notice or
other process relating to any such action or proceeding by delivery thereof to
the Executive by hand or by any other manner provided for below. The Executive
hereby expressly and irrevocably waives any claim or defense in any such action
or proceeding based on any alleged lack of personal jurisdiction, improper venue
or forum non conveniens or any similar basis.

         (m) NOTICES. All notices required or permitted by this Agreement shall
be in writing and shall be given by personal delivery or sent by registered or
certified mail, postage prepaid, return receipt requested, or by reputable
overnight courier, prepaid, receipt acknowledged, to the following addresses:

                                    If to the Company:

                                    SL Industries, Inc.
                                    520 Fellowship Road, Suite A-114
                                    Mt. Laurel, NJ  08054
                                    Attention:   Owen Farren
                                                 President and CEO

                                    If to the Executive:

                                    Jacob Cherian
                                    254 Old Short Hills Road
                                    Short Hills, NJ  07078

         (n) COUNTERPARTS. This Agreement may be executed and delivered in
separate counterparts, each of which when so executed and delivered shall be
deemed an original and all of which taken together shall constitute one and the
same agreement. Delivery of an executed counterpart of the signature page to
this Agreement by facsimile transmission shall be effective as manual delivery
of an executed counterpart. Any party so delivering this Agreement by facsimile
transmission shall promptly manually deliver an executed counterpart, provided
that any failure to do so shall not affect the validity of the counterpart
delivered by facsimile transmission.

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         (o) LEGAL ADVICE. THE EXECUTIVE ACKNOWLEDGES THAT (i) HE HAS BEEN
STRONGLY ENCOURAGED BY THE COMPANY TO REVIEW THIS AGREEMENT WITH HIS PERSONAL
ATTORNEY AND HAS EITHER DONE SO OR HAS KNOWINGLY AND VOLUNTARILY WAIVED HIS
RIGHT TO DO SO AND (ii) HE UNDERSTANDS ALL OF THE TERMS AND CONDITIONS OF THIS
AGREEMENT AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS.

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the date first written above.

                                                     SL INDUSTRIES, INC.

                                    By: __________________________
                                            Owen Farren
                                            President and CEO

                                    ______________________________
                                            JACOB CHERIANBADGER METER, INC.
                             1999 STOCK OPTION PLAN

1.        Purpose

          The purpose of the Badger Meter, Inc. 1999 Stock Option Plan (the
"Plan") is to promote the best interests of Badger Meter, Inc. (the "Company")
and its shareholders by encouraging directors and key employees of the Company
and its subsidiaries to secure or increase on reasonable terms their stock
ownership in the Company. The Board of Directors of the Company believes the
Plan will promote continuity of management, increase incentive and personal
interest in the welfare of the Company by those who are primarily responsible
for shaping and carrying out the long-range plans of the Company and its
subsidiaries and securing their continued growth and financial success. It is
intended that certain of the options issued under the Plan may constitute
incentive stock options within the meaning of Section 422 of the Internal
Revenue Code ("Incentive Stock Options") and the remainder of the options issued
under the Plan will constitute non-qualified stock options ("Non-qualified Stock
Options").

2.        Effective Date

          The Plan shall become effective on the date of adoption by the Board
of Directors of the Company (the "Board"), subject to the approval and
ratification of the Plan by the shareholders of the Company within twelve (12)
months of the date of adoption by the Board, and all options granted prior to
such shareholder approval shall be subject to such approval.

3.        Administration

          (a) The Plan shall be administered by the Management Review Committee
of the Board (the "Committee") as such Committee may be constituted from time to
time. The Committee shall consist of not less than two members of the Board
selected by the Board, each of whom shall qualify as a non-employee director
within the meaning of Rule 16b-3 under the Securities Exchange Act of 1934
("Exchange Act"), or any successor rule or regulation thereto. A majority of the
members of the Committee shall constitute a quorum. All determinations of the
Committee shall be made by a majority of its members. Any decision or
determination reduced to writing and signed by all of the members of the
Committee shall be fully effective as if it had been made by a majority vote at
a meeting duly called and held.

          If at any time the Committee shall not be in existence or not consist
of directors who are qualified as "non-employee directors" as defined above, the
Board shall administer the Plan. To the extent permitted by applicable law, the
Board may, in its discretion, delegate to another committee of the Board or to
one or more senior officers of the Company any or all of the authority and
responsibility of the Committee with respect to options to participants other
than participants who are subject to the provisions of Section 16 of the
Exchange Act. To the extent that the Board has delegated to such other committee
or one or more officers the authority and responsibility of the Committee, all
references to the Committee herein shall include such other committee or one or
more officers.

          (b) Subject to the express provisions of the Plan, the Committee shall
have complete authority to select the key employees to whom options shall be
granted, to determine the number of shares subject to each option, the time at
which the option is to be granted, the type of option, the option period, the
option price and the manner in which options become exercisable, and shall
establish such other terms and conditions of the options as the Committee may
deem necessary or desirable. In making such determinations, the Committee may
take into account the nature of the services rendered by the respective
employees, their present and potential contribution to the success of their
respective organizations and such other factors as the Committee in its
discretion shall deem relevant. Subject to the express provisions of the Plan,
the Committee shall also have complete authority to
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interpret the Plan, to prescribe, amend and rescind the rules and regulations
relating to it, to waive any conditions or restriction with respect to any
options, and to make all other determinations necessary or advisable for the
administration of the Plan. The determinations of the Committee on the matters
referred to in this paragraph 3 shall be conclusive.

4.        Eligibility

          Any non-employee director ("Director") or key employee ("Employee") of
the Company or its present and future subsidiaries, as defined in Section 424(f)
of the Internal Revenue Code ("Subsidiaries"), whose judgment, initiative and
efforts contribute materially to the successful performance of the Company or
its Subsidiaries, shall be eligible to receive options under the Plan.

5.        Shares Subject to the Plan

          The shares which may be issued pursuant to options under the Plan
shall be shares of the Company's Common Stock, $1.00 par value ("Stock"), and
may be either authorized and unissued or treasury shares. The total number of
shares for which options may be granted and which may be purchased pursuant to
options under the Plan shall not exceed an aggregate of 200,000 shares, subject
to adjustment as provided in the following sentence and in paragraph 12 hereof.
If an option granted under the Plan expires, is canceled or terminates
unexercised as to any shares of Stock subject thereto, or if shares of Stock are
used to satisfy the Company's withholding tax obligations, such shares shall
again be available for the granting of additional options under the Plan.

6.        Option Price

          The option price per share of Stock shall be fixed by the Committee,
but shall be not less than 100% in the case of Incentive Stock Options of the
fair market value of the Stock on the date the option is granted. Unless
otherwise determined by the Committee, the "fair market value" of Stock on the
date of grant shall be the closing price for a share of Stock on such date, or,
if such date is not a trading date, the next preceding trading date as quoted on
the American Stock Exchange Transaction Reporting System.

7.        Grant of Options

          (a) Subject to the terms and conditions of the Plan, the Committee
may, from time to time, grant to Employees options to purchase such number of
shares of Stock and on such terms and conditions as the Committee may determine.
More than one option may be granted to the same Employee. The day on which the
Committee approves the granting of an option shall be considered as the date on
which such option is granted.

          (b) Notwithstanding the foregoing, each Director of the Company who is
not an employee of the Company or any subsidiary or affiliate thereof, and who
first became or becomes a Director after April 23, 1999, shall, upon approval of
the Plan by the shareholders of the Company, or at the time of their first
election to the Board, subject to adjustments as provided in paragraph 12,
automatically receive an option to purchase 6,000 shares of Stock on that date.
Any date on which a Director receives an option shall be referred to as a "Grant
Date". Such options shall be Non-qualified Stock Options with an expiration date
ten (10) years after the Grant Date. The option price per share shall be the
closing price for a share of Stock on the Grant Date, or if such day is not a
trading day, the next preceding trading day as quoted on the American Stock
Exchange Transaction Reporting System.

          (c) Notwithstanding the foregoing, each Director of the Company who is
not an employee of the Company or any subsidiary or affiliate thereof, and who
first became or becomes a Director after April 23, 1999, shall, upon approval of
the Plan by the shareholders of the Company, or at the time of their first
election to the Board, be entitled to receive an option to purchase up to 2,500
shares of Stock on that date with the amount of

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options granted fixed by the number of options unexercised under the Long-Term
Incentive Plan approved by the Management Review Committee on January 26, 1999,
in order to increase the Directors' stake in the future of the Company. Any date
on which a Director receives an option shall be referred to as a Grant Date.
Such options shall be Non-qualified Stock Options with an expiration date ten
(10) years after the Grant Date. The option price per share shall be the closing
price for a share of Stock on the Grant Date, or if such day is not a trading
day, the next preceding trading day as quoted on the American Stock Exchange
Transaction Reporting System.

8.        Option Period

          Except as set forth in paragraph 7, the Committee shall determine the
expiration date of each option, but in the case of Incentive Stock Options such
expiration date shall be not later than ten (10) years after the date such
option is granted.

9.        Maximum Per Participant

          The aggregate fair market value (determined at the time the option is
granted pursuant to paragraph 7) of the Stock with respect to which any
Incentive Stock Options are exercisable for the first time by a Director or
Employee during any calendar year under the Plan or any other such plan of the
Company or any Subsidiary shall not exceed $100,000.

10.       Exercise of Options

          An option may be exercised, subject to its terms and conditions and
the terms and conditions of the Plan, in full at any time or in part from time
to time by delivery to the Company at its principal office of a written notice
of exercise specifying the number of shares with respect to which the option is
being exercised. Any notice of exercise shall be accompanied by full payment of
the option price of the shares being purchased (a) in cash or its equivalent; or
(b) with the consent of the Committee, by delivering to the Company shares of
Stock (valued at their fair market value as of the date of exercise, as
determined by the Committee consistent with the method of valuation set forth in
paragraphs 6 and 7); (c) with the consent of the Committee, by any combination
of (a) and (b); or (d) by delivering (including by fax) to the Company or its
designated agent an executed irrevocable option exercise form together with
irrevocable instructions to a broker/dealer to sell or margin a sufficient
portion of the shares of Stock and delivering the sale or margin loan proceeds
directly to the Company to pay for the option price.

11.       Transferability

          No option shall be assignable or transferable by a Director or an
Employee other than by will or the laws of descent and distribution, and may be
exercised during the life of the Director or Employee only by the Director or
Employee or his guardian or legal representative, except that an Employee may,
to the extent allowed by the Committee and in a manner specified by the
Committee, (a) designate in writing a beneficiary to exercise the option after
the Employee's death and (b) transfer any option.

12.       Capital Adjustments Affecting Common Stock

          In the event of a capital adjustment resulting from a stock dividend,
stock split, reorganization, recapitalization, merger, consolidation,
combination or exchange of shares or the like, the number of shares of Stock
subject to the Plan and the aggregate number and class of shares under option in
outstanding option agreements shall be adjusted in a manner consistent with such
capital adjustment; provided, however, that no such adjustment shall require the
Company to sell any fractional shares. The determination of the Committee as to
any adjustment shall be final. Notwithstanding the foregoing, options subject to
grant or previously granted to Directors under the Plan at the time of any
capital adjustments shall be subject only to such adjustments as shall be

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necessary to maintain the relative proportionate interest of each Director and
preserve, without exceeding, the value of such options.

13.       Corporate Mergers and Other Consolidations

          The Committee may also grant options having terms and provisions which
vary from those specified in the Plan provided that any options granted pursuant
to this paragraph are granted in substitution for, or in connection with the
assumption of, existing options granted by another company and assumed or
otherwise agreed to be provided for by the Company pursuant to or by reason of a
transaction involving a corporate merger, consolidation, acquisition or other
reorganization to which the Company is a party.

14.       Option Agreements

          All options granted under the Plan shall be evidenced by written
agreement (which need not be identical) in such form as the Committee shall
determine. Each option agreement shall specify whether the option granted
thereunder is intended to constitute an Incentive Stock Option or a
Non-qualified Stock Option.

15.       Transfer Restrictions

          Shares of Stock purchased under the Plan and held by any person who is
an officer or Director of the Company, or who directly or indirectly controls
the Company, may not be sold or otherwise disposed of except pursuant to an
effective registration statement under the Securities Act of 1933 or except in a
transaction in compliance with Rule 144 under such Act or other transaction
which, in the opinion of counsel for the Company, is exempt from registration
under such Act. The Committee may waive the foregoing restrictions in whole or
in part in any particular case or cases, or may terminate such restrictions,
whenever the Committee determines that such restrictions afford no substantial
benefit to the Company.

16.       Amendment of Plan

          Shareholder approval of any amendment of the Plan shall be obtained if
otherwise required by: (i) the rules and/or regulations promulgated under
Section 16 of the Exchange Act (in order for the Plan to remain qualified under
Rule 16b-3); (ii) the Internal Revenue Code of 1986, as amended, or any rules
promulgated thereunder (in order to allow for Incentive Stock Options to be
granted under the Plan); or (iii) the listing requirements of the American Stock
Exchange or any principal securities exchange or market on which the Stock is
then traded (in order to maintain the quotation or listing of the Stock
thereon). The provisions of paragraphs 7(b) and 7(c) cannot be amended more than
once every six (6) months other than to comport with changes in the Internal
Revenue Code of 1986, as amended, the Employee Retirement Income Security Act of
1974, as amended, or the rules and regulations thereunder.

17.       Termination of Plan

          The Board shall have the right to suspend or terminate the Plan at any
time; provided, however, that no Incentive Stock Options may be granted after
the tenth (10th) anniversary of the effective date of the Plan as described in
paragraph 2 hereof. Termination of the Plan shall not affect the rights of
Employees or Directors under options previously granted to them, and all
unexpired options shall continue in force and operation after termination of the
Plan except as they may lapse or be terminated by their own terms and
conditions.

18.       Tax Withholding

          (a) The Company may deduct and withhold from any cash otherwise
payable to an Employee such amount as may be required for the purpose of
satisfying the Company's obligation to withhold federal, state or local taxes as
the result of the exercise of an option. In the event the amount so withheld is
insufficient for such

                                       4
<PAGE>
purpose, the Company may require that the Employee pay to the Company upon its
demand or otherwise make arrangements satisfactory to the Company for payment of
such amount as may be requested by the Company in order to satisfy its
obligation to withhold any such taxes.

          (b) An Employee may be permitted to satisfy the Company's withholding
tax requirements by electing to have the Company withhold shares of Stock
otherwise issuable to the Employee or to deliver to the Company shares of Stock
having a fair market value on the date income is recognized pursuant to the
exercise of an option equal to the amount required to be withheld. The election
shall be made in writing and shall be made according to such rules and
procedures as the Committee may determine.

19.       Rights as a Shareholder

          A Director or an Employee shall have no rights as a shareholder with
respect to any shares subject to any option until the date the options shall
have been exercised, the shares shall have been fully paid and a stock
certificate shall have been issued.

20.       Miscellaneous

          The grant of any option under the Plan may also be subject to other
provisions as the Committee determines appropriate, including, without
limitation, provisions for (a) one or more means to enable Employees to defer
recognition of taxable income relating to options; (b) the purchase of Stock
under options in installments; and (c) compliance with federal or state
securities laws and stock exchange requirements.

                                       5

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