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                                                                    Exhibit 10.2

                          REGISTRATION RIGHTS AGREEMENT

      This Registration Rights Agreement (this "Agreement") is made and entered
into as of February 17, 2004, among Keryx Biopharmaceuticals, Inc., a Delaware
corporation (the "Company"), and the purchasers' signatory hereto (each such
purchaser is a "Purchaser" and all such purchasers are, collectively, the
"Purchasers").

      This Agreement is made pursuant to the Securities Purchase Agreement,
dated as of the date hereof among the Company and the Purchasers (the "Purchase
Agreement").

      The Company and the Purchasers hereby agree as follows:

   1. Definitions

      CAPITALIZED TERMS USED AND NOT OTHERWISE DEFINED HEREIN THAT ARE DEFINED
IN THE PURCHASE AGREEMENT SHALL HAVE THE MEANINGS GIVEN SUCH TERMS IN THE
PURCHASE AGREEMENT. As used in this Agreement, the following terms shall have
the following meanings:

            "Effectiveness Date" means, with respect to the Registration
      Statement registering for resale the Registrable Securities, the 60th
      calendar day following the Closing Date (75th calendar day in the event of
      a full review by the Commission); provided, however, in the event that the
      Company is notified by the Commission that one of the above Registration
      Statements will not be reviewed or is no longer subject to further review
      and comments, the Effectiveness Date as to the Registration Statement
      shall be the fifth Trading Day following the date on which the Company is
      so notified if such date precedes the dates required above.

            "Effectiveness Period" shall have the meaning set forth in Section
      2(a).

            "Filing Date" means, with respect to the Registration Statement
      registering for resale the Registrable Securities, the 30th day following
      the Closing Date.

            "Holder" or "Holders" means the holder or holders, as the case may
      be, from time to time of Registrable Securities.

            "Indemnified Party" shall have the meaning set forth in Section
      5(c).

            "Indemnifying Party" shall have the meaning set forth in Section
      5(c).

            "Proceeding" means an action, claim, suit, investigation or
      proceeding (including, without limitation, an investigation or partial
      proceeding, such as a deposition), whether commenced or threatened.

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            "Prospectus" means the prospectus included in the Registration
      Statement (including, without limitation, a prospectus that includes any
      information previously omitted from a prospectus filed as part of an
      effective registration statement in reliance upon Rule 430A promulgated
      under the Securities Act), as amended or supplemented by any prospectus
      supplement, with respect to the terms of the offering of any portion of
      the Registrable Securities covered by the Registration Statement, and all
      other amendments and supplements to the Prospectus, including
      post-effective amendments, and all material incorporated by reference or
      deemed to be incorporated by reference in such Prospectus.

            "Registrable Securities" means all of the Shares together with any
      shares of Common Stock issued or issuable upon any stock split, dividend
      or other distribution, recapitalization or similar event with respect to
      the foregoing.

            "Registration Statement" means the registration statements required
      to be filed hereunder, including (in each case) the Prospectus, amendments
      and supplements to the Registration Statement or Prospectus, including
      pre- and post-effective amendments, all exhibits thereto, and all material
      incorporated by reference or deemed to be incorporated by reference in the
      registration statement.

            "Rule 415" means Rule 415 promulgated by the Commission pursuant to
      the Securities Act, as such Rule may be amended from time to time, or any
      similar rule or regulation hereafter adopted by the Commission having
      substantially the same purpose and effect as such Rule.

      "Rule 424" means Rule 424 promulgated by the Commission pursuant to the
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the
same purpose and effect as such Rule.

   2. Shelf Registration

      (a) On or prior to the Filing Date, the Company shall prepare and file
with the Commission a "Shelf" Registration Statement covering the resale of all
of the Registrable Securities for an offering to be made on a continuous basis
pursuant to Rule 415. The Registration Statement shall be on Form S-3 (unless
the Company is not then eligible to register for resale the Registrable
Securities on Form S-3, in which case such registration shall be on another
appropriate form in accordance herewith) and shall contain (unless otherwise
directed by the Holders and except to the extent the Company determines that
modifications thereto are required under applicable law) substantially the "Plan
of Distribution" attached hereto as Annex A. Subject to the terms of this
Agreement, the Company shall use its best efforts to cause the Registration
Statement to be declared effective under the Securities Act as promptly as
possible after the filing thereof, but in any event prior to the Effectiveness
Date, and shall use its best efforts to keep the Registration Statement
continuously effective under the Securities Act until the date

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which is two years after the date that the Registration Statement is declared
effective by the Commission or such earlier date when all Registrable Securities
covered by the Registration Statement have been sold or may be sold without
volume restrictions pursuant to Rule 144(k) as determined by the counsel to the
Company pursuant to a written opinion letter to such effect, addressed and
acceptable to the Company's transfer agent and the affected Holders (the
"Effectiveness Period"). The Company shall immediately notify the Holders via
facsimile of the effectiveness of the Registration Statement on the same day
that the Company receives notification of the effectiveness from the Commission.

      (b) If: (i) the Registration Statement is not filed on or prior to its
Filing Date (if the Company files the Registration Statement without affording
the Holders the opportunity to review and comment on the same as required by
Section 3(a), the Company shall not be deemed to have satisfied clause (i)), or
(ii) the Company fails to file with the Commission a request for acceleration in
accordance with Rule 461 promulgated under the Securities Act, within five
Trading Days of the date that the Company is notified (orally or in writing,
whichever is earlier) by the Commission that the Registration Statement will not
be "reviewed," or not subject to further review, or (iii) prior to the
Effectiveness Date, the Company fails to file a pre-effective amendment and
otherwise respond in writing to comments made by the Commission in respect of
the Registration Statement within 10 Trading Days after the receipt of comments
by or notice from the Commission that such amendment is required in order for
the Registration Statement to be declared effective, or (iv) the Registration
Statement filed or required to be filed hereunder is not declared effective by
the Commission by the Effectiveness Date, or (v) after the Effectiveness Date,
the Registration Statement ceases for any reason to remain continuously
effective as to all Registrable Securities for which it is required to be
effective, or the Holders are not permitted to utilize the Prospectus therein to
resell such Registrable Securities for 10 consecutive Trading Days or in any
individual case an aggregate of 15 Trading Days during any 12 month period
(which need not be consecutive Trading Days) (any such failure or breach being
referred to as an "Event", and for purposes of clause (i) or (iv) the date on
which such Event occurs, or for purposes of clause (ii) the date on which such
five Trading Day period is exceeded, or for purposes of clause (iii) the date
which such 10 Trading Day period is exceeded, or for purposes of clause (v) the
date on which such 10 or 15 Trading Day period, as applicable, is exceeded being
referred to as "Event Date"), then, on each such Event Date and every monthly
anniversary thereof until the applicable Event is cured, the Company shall pay
to each Holder an amount in cash, as liquidated damages and not as a penalty,
equal to 2.0% per month of the Subscription Amount paid by such Holder pursuant
to the Purchase Agreement for Registrable Securities then held by such Holder
and covered (or to be covered) by the Registration Statement. If the Company
fails to pay any liquidated damages pursuant to this Section in full within
seven days after the date payable, the Company will pay interest thereon at a
rate of 15% per annum (or such lesser maximum amount that is permitted to be
paid by applicable law) to the Holder, accruing daily from the date such
liquidated damages are due until such amounts, plus all such interest thereon,
are paid in full. The liquidated damages pursuant to the terms hereof shall
apply on a pro-rata basis for any portion of a month prior to the cure of an
Event.

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   3. Registration Procedures

      In connection with the Company's registration obligations hereunder, the
Company shall:

      (a) Not less than three Trading Days prior to the filing of the
Registration Statement or any related Prospectus or any amendment or supplement
thereto (including any document that would be incorporated or deemed to be
incorporated therein by reference), the Company shall, (i) furnish to each
Holder copies of all such documents proposed to be filed, which documents (other
than those incorporated or deemed to be incorporated by reference) will be
subject to the review of such Holders, and (ii) cause its officers and
directors, counsel and independent certified public accountants to respond to
such inquiries as shall be necessary, in the reasonable opinion of respective
counsel to conduct a reasonable investigation within the meaning of the
Securities Act.

      (b) (i) Prepare and file with the Commission such amendments, including
post-effective amendments, to the Registration Statement and the Prospectus used
in connection therewith as may be necessary to keep the Registration Statement
continuously effective as to the applicable Registrable Securities for the
Effectiveness Period; (ii) cause the related Prospectus to be amended or
supplemented by any required Prospectus supplement (subject to the terms of this
Agreement), and as so supplemented or amended to be filed pursuant to Rule 424;
(iii) respond as promptly as reasonably possible, and in any event within 10
Trading Days, to any comments received from the Commission with respect to the
Registration Statement or any amendment thereto and as promptly as reasonably
possible provide the Holders true and complete copies of all correspondence from
and to the Commission relating to the Registration Statement; and (iv) comply in
all material respects with the provisions of the Securities Act and the Exchange
Act with respect to the disposition of all Registrable Securities covered by the
Registration Statement during the applicable period in accordance (subject to
the terms of this Agreement) with the intended methods of disposition by the
Holders thereof set forth in the Registration Statement as so amended or in such
Prospectus as so supplemented.

      (c) Notify the Holders of Registrable Securities to be sold (which notice
shall, pursuant to clauses (ii) through (vi) hereof, shall be accompanied by an
instruction to suspend the use of the Prospectus until the requisite changes
have been made) as promptly as reasonably possible and (if requested by any such
Person) confirm such notice in writing no later than two Trading Days following
the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective
amendment to the Registration Statement is proposed to be filed; (B) when the
Commission notifies the Company whether there will be a "review" of the
Registration Statement and whenever the Commission comments in writing on the
Registration Statement (the Company shall provide true and complete copies
thereof and all written responses thereto to each of the Holders); and (C) with
respect to the Registration Statement or any post-effective amendment, when the
same has become effective; (ii) of any request by the Commission or any other
Federal or state governmental authority for amendments or supplements to

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the Registration Statement or Prospectus or for additional information; (iii) of
the issuance by the Commission of any stop order suspending the effectiveness of
the Registration Statement covering any or all of the Registrable Securities or
the initiation of any Proceedings for that purpose; (iv) of the receipt by the
Company of any notification with respect to the suspension of the qualification
or exemption from qualification of any of the Registrable Securities for sale in
any jurisdiction, or the initiation or threatening of any Proceeding for such
purpose; (v) of the occurrence of any event or passage of time that makes the
financial statements included in the Registration Statement ineligible for
inclusion therein or any statement made in the Registration Statement or
Prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue in any material respect or that requires any revisions to the
Registration Statement, Prospectus or other documents so that, in the case of
the Registration Statement or the Prospectus, as the case may be, it will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading; and
(vi) the occurrence or existence of any pending corporate development with
respect to the Company that the Company believes may be material and that, in
the determination of the Company, makes it not in the best interest of the
Company to allow continued availability or the Registration Statement or
Prospectus; provided that the Company shall not disclose the nature of such
information to the Holder.

      (d) Promptly deliver to each Holder, without charge, as many copies of the
Prospectus or Prospectuses (including each form of prospectus) and each
amendment or supplement thereto as such Persons may reasonably request. Subject
to the terms of this Agreement, the Company hereby consents to the use of such
Prospectus and each amendment or supplement thereto by each of the selling
Holders in connection with the offering and sale of the Registrable Securities
covered by such Prospectus and any amendment or supplement thereto.

      (e) Use commercially reasonable efforts to register or qualify the resale
of such Registrable Securities as required under applicable securities or Blue
Sky laws of each State within the United States as any Holder requests in
writing, to keep each the Registration or qualification (or exemption therefrom)
effective during the Effectiveness Period; provided, that the Company shall not
be required to qualify generally to do business in any jurisdiction where it is
not then so qualified or subject the Company to any material tax in any such
jurisdiction where it is not then so subject.

      (f) Cooperate with the Holders to facilitate the timely preparation and
delivery of certificates representing Registrable Securities to be delivered to
a transferee pursuant to the Registration Statement, which certificates shall be
free, to the extent permitted by the Purchase Agreement, of all restrictive
legends, and to enable such Registrable Securities to be in such denominations
and registered in such names as any such Holders may request.

      (g) Upon the occurrence of any event contemplated by this Section 3, as
promptly as reasonably possible under the circumstances prepare a supplement or

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amendment, including a post-effective amendment, to the Registration Statement
or a supplement to the related Prospectus or any document incorporated or deemed
to be incorporated therein by reference, and file any other required document so
that, as thereafter delivered, neither the Registration Statement nor such
Prospectus will contain an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading. If the Company notifies the Holders in accordance with clauses
(ii) through (vi) of Section 3(c) above to suspend the use of any Prospectus
until the requisite changes to such Prospectus have been made, or the Company
otherwise notifies the Holders of its election to suspend the availability of
the Registration Statement and Prospectus pursuant to clause (vi) of Section
3(c), then the Holders shall suspend use of such Prospectus. The Company will
use its best efforts to ensure that the use of the Prospectus may be resumed as
promptly as is practicable, except that in the case of suspension of the
availability of the Registration Statement and Prospectus pursuant to clause
(vi) of Section 3(c), the Company shall not be required to take such action
until such time as it shall determine that the continued availability of the
Registration Statement and Prospectus is no longer not in the best interests of
the Company. The Company shall be entitled to exercise its right under this
Section 3(g) to suspend the availability of the Registration Statement and
Prospectus, subject to the payment of liquidated damages pursuant to Section
2(b), for a period not to exceed 60 consecutive days or for multiple periods not
to exceed 90 days in any 12 month period.

      (h) Comply with all applicable rules and regulations of the Commission.

      (i) Use its best efforts to avoid the issuance of, or, if issued, obtain
the withdrawal of (i) any order suspending the effectiveness of the Registration
Statement, or (ii) any suspension of the qualification (or exemption from
qualification) of any of the Registrable Securities for sale in any
jurisdiction, at the earliest practicable moment.

      (j) The Company may require, at any time prior to the third Trading Day
prior to the Filing Date, each Holder to furnish to the Company a statement as
to the number of shares of Common Stock beneficially owned by such Holder and,
if requested by the Commission, the controlling person thereof, within three
Trading Days of the Company's request. During any periods that the Company is
unable to meet its obligations hereunder with respect to the registration of the
Registrable Securities solely because any Holder fails to furnish such
information within three Trading Days of the Company's request, any liquidated
damages that are accruing at such time shall be tolled, until such information
is delivered to the Company.

      4. Registration Expenses. All fees and expenses incident to the
performance of or compliance with this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold pursuant to
the Registration Statement. The fees and expenses referred to in the foregoing
sentence shall include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses (A) with respect to filings
required to be made with the Trading Market on which the Common Stock is then
listed for trading, and (B) in compliance with

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applicable state securities or Blue Sky laws reasonably agreed to by the Company
in writing (including, without limitation, fees and disbursements of counsel for
the Company in connection with Blue Sky qualifications or exemptions of the
Registrable Securities and determination of the eligibility of the Registrable
Securities for investment under the laws of such jurisdictions as requested by
the Holders)), (ii) printing expenses (including, without limitation, expenses
of printing certificates for Registrable Securities and of printing prospectuses
requested by the Holders), (iii) messenger, telephone and delivery expenses,
(iv) fees and disbursements of counsel for the Company, and (v) fees and
expenses of all other Persons retained by the Company in connection with the
consummation of the transactions contemplated by this Agreement. In addition,
the Company shall be responsible for all of its internal expenses incurred in
connection with the consummation of the transactions contemplated by this
Agreement (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expense of
any annual audit and the fees and expenses incurred in connection with the
listing of the Registrable Securities on any securities exchange as required
hereunder. In no event shall the Company be responsible for any broker or
similar commissions or, except to the extent provided for in the Transaction
Documents, any legal fees or other costs of the Holders.

   5. Indemnification

      (a) Indemnification by the Company. The Company shall, notwithstanding any
termination of this Agreement, indemnify and hold harmless each Holder, the
officers, directors, agents, brokers (including brokers who offer and sell
Registrable Securities as principal as a result of a pledge or any failure to
perform under a margin call of Common Stock), investment advisors and employees
of each of them, each Person who controls any such Holder (within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act) and the
officers, directors, agents and employees of each such controlling Person, to
the fullest extent permitted by applicable law, from and against any and all
losses, claims, damages, liabilities, costs (including, without limitation,
costs of preparation and reasonable attorneys' fees) and expenses (collectively,
"Losses"), as incurred, arising out of or relating to any breach of applicable
securities laws or untrue or alleged untrue statement of a material fact
contained in the Registration Statement, any Prospectus or any form of
prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, or arising out of or relating to any omission or alleged omission of
a material fact required to be stated therein or necessary to make the
statements therein (in the case of any Prospectus or form of prospectus or
supplement thereto, in light of the circumstances under which they were made)
not misleading, except to the extent, but only to the extent, that (1) such
untrue statements or omissions or alleged untrue statements or omissions are
based solely upon information regarding such Holder furnished in writing to the
Company by such Holder expressly for use therein, or to the extent that such
information relates to such Holder or such Holder's proposed method of
distribution of Registrable Securities and was reviewed and expressly approved
in writing by such Holder expressly for use in the Registration Statement, such
Prospectus or such form of Prospectus or in any amendment or supplement thereto
or (2) in the case of an occurrence of an event of the type specified in Section
3(c)(ii)-(vi), the

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use by such Holder of an outdated or defective Prospectus after the Company has
notified such Holder in writing that the Prospectus is outdated or defective and
prior to the receipt by such Holder of the Advice contemplated in Section 6(d).
The Company shall notify the Holders promptly of the institution, threat or
assertion of any Proceeding arising from or in connection with the transactions
contemplated by this Agreement of which the Company is aware.

      (b) Indemnification by Holders. Each Holder shall, severally and not
jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning
of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the
directors, officers, agents or employees of such controlling Persons, to the
fullest extent permitted by applicable law, from and against all Losses (as
determined by a court of competent jurisdiction in a final judgment not subject
to appeal or review) arising out of or based upon any untrue statement of a
material fact contained in any Registration Statement, any Prospectus, or any
form of prospectus, or in any amendment or supplement thereto, arising solely
out of or based solely upon: (i) such Holder's failure to comply with the
prospectus delivery requirements of the Securities Act or (ii) any omission of a
material fact required to be stated therein or necessary to make the statements
therein not misleading to the extent, but only to the extent, such untrue
statement or omission is contained in any information so furnished in writing by
such Holder to the Company specifically for inclusion in the Registration
Statement or such Prospectus or to the extent that (1) such untrue statements or
omissions are based upon information regarding such Holder furnished in writing
to the Company by such Holder expressly for use therein, or to the extent such
information relates to such Holder or such Holder's proposed method of
distribution of Registrable Securities and was reviewed and expressly approved
in writing by such Holder expressly for use in the Registration Statement, such
Prospectus or such form of Prospectus or in any amendment or supplement thereto
or (2) in the case of an occurrence of an event of the type specified in Section
3(c)(ii)-(vi), the use by such Holder of an outdated or defective Prospectus
after the Company has notified such Holder in writing that the Prospectus is
outdated or defective and prior to the receipt by such Holder of the Advice
contemplated in Section 6(d). In no event shall the liability of any selling
Holder hereunder be greater in amount than the dollar amount of the net proceeds
received by such Holder upon the sale of the Registrable Securities covered by
such Registration Statement giving rise to such indemnification obligation.

      (c) Conduct of Indemnification Proceedings. If any Proceeding shall be
brought or asserted against any Person entitled to indemnity hereunder (an
"Indemnified Party"), such Indemnified Party shall promptly notify the Person
from whom indemnity is sought (the "Indemnifying Party") in writing, and the
Indemnifying Party shall assume the defense thereof, including the employment of
counsel reasonably satisfactory to the Indemnified Party and the payment of all
fees and expenses incurred in connection with defense thereof; provided, that
the failure of any Indemnified Party to give such notice shall not relieve the
Indemnifying Party of its obligations or liabilities pursuant to this Agreement,
except (and only) to the extent that such failure shall have prejudiced the
Indemnifying Party.

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      An Indemnified Party shall have the right to employ separate counsel in
any such Proceeding and to participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Party or
Parties unless: (1) the Indemnifying Party has agreed in writing to pay such
fees and expenses; or (2) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably
satisfactory to such Indemnified Party in any such Proceeding; or (3) the named
parties to any such Proceeding (including any impleaded parties) include both
such Indemnified Party and the Indemnifying Party, and such Indemnified Party
shall have been advised by counsel that a material conflict of interest is
likely to exist if the same counsel were to represent such Indemnified Party and
the Indemnifying Party (in which case, if such Indemnified Party notifies the
Indemnifying Party in writing that it elects to employ separate counsel at the
expense of the Indemnifying Party, the Indemnifying Party shall not have the
right to assume the defense thereof and the expense of one such counsel for each
Holder shall be at the expense of the Indemnifying Party). The Indemnifying
Party shall not be liable for any settlement of any such Proceeding effected
without its written consent, which consent shall not be unreasonably withheld.
No Indemnifying Party shall, without the prior written consent of the
Indemnified Party, effect any settlement of any pending Proceeding in respect of
which any Indemnified Party is a party, unless such settlement includes an
unconditional release of such Indemnified Party from all liability on claims
that are the subject matter of such Proceeding.

      Subject to the terms of this Agreement, all reasonable fees and expenses
of the Indemnified Party (including reasonable fees and expenses to the extent
incurred in connection with investigating or preparing to defend such Proceeding
in a manner not inconsistent with this Section) shall be paid to the Indemnified
Party, as incurred, within ten Trading Days of written notice thereof to the
Indemnifying Party (regardless of whether it is ultimately determined that an
Indemnified Party is not entitled to indemnification hereunder; provided, that
the Indemnifying Party may require such Indemnified Party to undertake to
reimburse all such fees and expenses to the extent it is finally judicially
determined that such Indemnified Party is not entitled to indemnification
hereunder).

      (d) Contribution. If a claim for indemnification under Section 5(a) or
5(b) is unavailable to an Indemnified Party (by reason of public policy or
otherwise), then each Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Losses, in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions, statements or omissions that
resulted in such Losses as well as any other relevant equitable considerations.
The relative fault of such Indemnifying Party and Indemnified Party shall be
determined by reference to, among other things, whether any action in question,
including any untrue or alleged untrue statement of a material fact or omission
or alleged omission of a material fact, has been taken or made by, or relates to
information supplied by, such Indemnifying Party or Indemnified Party, and the
parties' relative intent, knowledge, access to information and

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opportunity to correct or prevent such action, statement or omission. The amount
paid or payable by a party as a result of any Losses shall be deemed to include,
subject to the limitations set forth in Section 5(c), any reasonable attorneys'
or other reasonable fees or expenses incurred by such party in connection with
any Proceeding to the extent such party would have been indemnified for such
fees or expenses if the indemnification provided for in this Section was
available to such party in accordance with its terms.

      The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5(d) were determined by pro rata
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 5(d), no Holder shall be required
to contribute, in the aggregate, any amount in excess of the amount by which the
proceeds actually received by such Holder from the sale of the Registrable
Securities subject to the Proceeding exceeds the amount of any damages that such
Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission.

      The indemnity and contribution agreements contained in this Section are in
addition to any liability that the Indemnifying Parties may have to the
Indemnified Parties.

   6. Miscellaneous

      (a) Amendments and Waivers. The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given, unless the same shall be in writing and signed by the Company and all of
the Holders of the then outstanding Registrable Securities. Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof with respect
to a matter that relates exclusively to the rights of Holders and that does not
directly or indirectly affect the rights of other Holders may be given by
Holders of all of the Registrable Securities to which such waiver or consent
relates; provided, however, that the provisions of this sentence may not be
amended, modified, or supplemented except in accordance with the provisions of
the immediately preceding sentence.

      (b) No Inconsistent Agreements. Neither the Company nor any of its
subsidiaries has entered, as of the date hereof, nor shall the Company or any of
its subsidiaries, on or after the date of this Agreement, enter into any
agreement with respect to its securities, that would have the effect of
impairing the rights granted to the Holders in this Agreement or otherwise
conflicts with the provisions hereof. Except as set forth on Schedule 6(b),
neither the Company nor any of its subsidiaries has previously entered into any
agreement granting any registration rights with respect to any of its securities
to any Person that have not been satisfied in full.

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      (c) Compliance. Each Holder covenants and agrees that it will comply with
the prospectus delivery requirements of the Securities Act as applicable to it
in connection with sales of Registrable Securities pursuant to the Registration
Statement.

      (d) Discontinued Disposition. Each Holder agrees by its acquisition of
such Registrable Securities that, upon receipt of a notice from the Company of
the occurrence of any event of the kind described in Sections 3(c)(ii), (iii) or
(vi), such Holder will forthwith discontinue disposition of such Registrable
Securities under the Registration Statement until such Holder's receipt of the
copies of the supplemented Prospectus and/or amended Registration Statement
contemplated by Section 3(g), or until it is advised in writing (the "Advice")
by the Company that the use of the applicable Prospectus may be resumed, and, in
either case, has received copies of any additional or supplemental filings that
are incorporated or deemed to be incorporated by reference in such Prospectus or
Registration Statement. The Company may provide appropriate stop orders to
enforce the provisions of this paragraph. The Company agrees and acknowledges
that any periods during which the Holder is required to discontinue the
disposition of the Registrable Securities hereunder shall be subject to the
provisions of Section 2(b).

      (e) Piggy-Back Registrations. If at any time during the Effectiveness
Period there is not an effective Registration Statement covering all of the
Registrable Securities and the Company shall determine to prepare and file with
the Commission the Registration Statement relating to an offering for its own
account or the account of others under the Securities Act of any of its equity
securities, other than on Form S-4 or Form S-8 (each as promulgated under the
Securities Act) or their then equivalents relating to equity securities to be
issued solely in connection with any acquisition of any entity or business or
equity securities issuable in connection with stock option or other employee
benefit plans, then the Company shall send to each Holder written notice of such
determination and, if within fifteen days after receipt of such notice, any such
Holder shall so request in writing, the Company shall include in the
Registration Statement all or any part of such Registrable Securities such
holder requests to be registered; provided, that, the Company shall not be
required to register any Registrable Securities pursuant to this Section 6(e)
that are eligible for resale pursuant to Rule 144(k) promulgated under the
Securities Act or that are the subject of a then effective Registration
Statement.

      (f) Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be delivered as set forth
in the Purchase Agreement.

      (g) Successors and Assigns. This Agreement shall inure to the benefit of
and be binding upon the successors and permitted assigns of each of the parties
and shall inure to the benefit of each Holder. The Company may not assign its
rights or obligations hereunder without the prior written consent of all of the
Holders of the then-outstanding Registrable Securities. Each Holder may assign
their respective rights hereunder in the manner and to the Persons as permitted
under the Purchase Agreement.

                                       11
<PAGE>
      (h) Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original
and, all of which taken together shall constitute one and the same Agreement. In
the event that any signature is delivered by facsimile transmission, such
signature shall create a valid binding obligation of the party executing (or on
whose behalf such signature is executed) the same with the same force and effect
as if such facsimile signature were the original thereof.

      (i) Governing Law. All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by and
construed and enforced in accordance with the internal laws of the State of New
York, without regard to the principles of conflicts of law thereof. Each party
hereby irrevocably submits to the exclusive jurisdiction of the state and
federal courts sitting in the City of New York, Borough of Manhattan, for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof to such party at the
address in effect for notices to it under the Purchase Agreement and agrees that
such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. Each party hereto hereby
irrevocably waives, to the fullest extent permitted by applicable law, any and
all right to trial by jury in any legal proceeding arising out of or relating to
this Agreement or the transactions contemplated hereby. If either party shall
commence a Proceeding to enforce any provisions of this Agreement, then the
prevailing party in such Proceeding shall be reimbursed by the other party for
its attorneys fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such Proceeding.

      (j) Cumulative Remedies. The remedies provided herein are cumulative and
not exclusive of any remedies provided by law.

      (k) Severability. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall in
no way be affected, impaired or invalidated, and the parties hereto shall use
their reasonable efforts to find and employ an alternative means to achieve the
same or substantially the same result as that contemplated by such term,
provision, covenant or restriction. It is hereby stipulated and declared to be
the intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

      (l) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

                                       12
<PAGE>
      (m) Remedies. In the event of a breach by the Company or by a Holder, of
any of their obligations under this Agreement, each Holder or the Company, as
the case may be, in addition to being entitled to exercise all rights granted by
law and under this Agreement, including recovery of damages, will be entitled to
specific performance of its rights under this Agreement. The Company and each
Holder agree that monetary damages would not provide adequate compensation for
any losses incurred by reason of a breach by it of any of the provisions of this
Agreement and hereby further agrees that, in the event of any action for
specific performance in respect of such breach, it shall waive the defense that
a remedy at law would be adequate.

      (n) Independent Nature of Purchasers' Obligations and Rights. The
obligations of each Purchaser hereunder is several and not joint with the
obligations of any other Purchaser hereunder, and no Purchaser shall be
responsible in any way for the performance of the obligations of any other
Purchaser hereunder. Nothing contained herein or in any other agreement or
document delivered at any closing, and no action taken by any Purchaser pursuant
hereto or thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert with
respect to such obligations or the transactions contemplated by this Agreement.
Each Purchaser shall be entitled to protect and enforce its rights, including
without limitation the rights arising out of this Agreement, and it shall not be
necessary for any other Purchaser to be joined as an additional party in any
proceeding for such purpose.

                              ********************

                                       13
<PAGE>
      IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

                                    BY: KERYX BIOPHARMACEUTICALS, INC.

                                    /s/ Michael S. Weiss
                                    -----------------------------

                                    Name:   Michael S. Weiss
                                    Title:  Chairman and CEO

                       [SIGNATURE PAGE OF HOLDERS FOLLOWS]

                                       14
<PAGE>
                       [SIGNATURE PAGE OF HOLDERS TO RRA]

                                    BY: ADAGE CAPITAL MANAGEMENT, L.P.

                                    /s/ Phill Goss
                                    -----------------------------

                                    Name:   Phill Goss
                                    Title:  Managing Director

                                       15
<PAGE>
                       [SIGNATURE PAGE OF HOLDERS TO RRA]

                                    BY: ATLAS EQUITY I, LTD.

                                    /s/ Taylor J. O'Malley
                                    -----------------------------

                                    Name:   Taylor J. O'Malley
                                    Title:  Manager

                                       16
<PAGE>
                       [SIGNATURE PAGE OF HOLDERS TO RRA]

                                    BY: DEERFIELD INTERNATIONAL LIMITED

                                    /s/ Arnold Snider
                                    -----------------------------

                                    Name:   Arnold Snider
                                    Title:  President

                                       17
<PAGE>
                       [SIGNATURE PAGE OF HOLDERS TO RRA]

                                    BY: DEERFIELD PARTNERS, L.P.

                                    /s/ Arnold Snider
                                    -----------------------------

                                    Name:   Arnold Snider
                                    Title:  President

                                       18
<PAGE>
                       [SIGNATURE PAGE OF HOLDERS TO RRA]

                                    MAVERICK FUND II, LTD.
                                    BY: MAVERICK CAPITAL, LTD.,
                                           ITS INVESTMENT MANAGER

                                    /s/ Michelle Perrin
                                    -----------------------------

                                    Name:   Michelle Perrin
                                    Title:  Director of Fund Accounting

                                       19
<PAGE>
                       [SIGNATURE PAGE OF HOLDERS TO RRA]

                                    MAVERICK FUND, L.D.C.
                                    BY: MAVERICK CAPITAL, LTD.
                                           ITS INVESTMENT MANAGER

                                    /s/ Michelle Perrin
                                    -----------------------------

                                    Name:   Michelle Perrin
                                    Title:  Director of Fund Accounting

                                       20
<PAGE>
                       [SIGNATURE PAGE OF HOLDERS TO RRA]

                                    MAVERICK FUND USA, LTD.
                                    BY: MAVERICK CAPITAL, LTD.,
                                           ITS INVESTMENT MANAGER

                                    /s/ Michelle Perrin
                                    -----------------------------

                                    Name:   Michelle Perrin
                                    Title:  Director of Fund Accounting

                                       21
<PAGE>
                       [SIGNATURE PAGE OF HOLDERS TO RRA]

                                    BY: S.A.C. HEALTHCO FUND, LLC

                                    /s/ Brian Cohn
                                    -----------------------------

                                    Name:   Brian Cohn
                                    Title:  President

                                       22
<PAGE>
                       [SIGNATURE PAGE OF HOLDERS TO RRA]

                                  BY: SONOSTAR VENTURES, LLC

                                   /s/ Gregory F. Kiernan
                                   -----------------------------

                                   Name:   Gregory F. Kiernan
                                   Title:  President and Chief Executive Officer

                                       23
<PAGE>
                       [SIGNATURE PAGE OF HOLDERS TO RRA]

                                    BY: T. ROWE PRICE ASSOCIATES, INC.

                                    /s/ Jay Markowitz
                                    -----------------------------

                                    Name:   Jay Markowitz
                                    Title:  Vice President

                                       24
<PAGE>
                              PLAN OF DISTRIBUTION

      The selling stockholders and any of their pledgees, assignees and
successors-in-interest may, from time to time, sell any or all of their shares
of common stock on any stock exchange, market or trading facility on which the
shares are traded or in private transactions. These sales may be at fixed or
negotiated prices. The selling stockholders may use any one or more of the
following methods when selling shares:

   -  ordinary brokerage transactions and transactions in which the
      broker-dealer solicits purchasers;

   -  block trades in which the broker-dealer will attempt to sell the shares as
      agent but may position and resell a portion of the block as principal to
      facilitate the transaction;

   -  purchases by a broker-dealer as principal and resale by the broker-dealer
      for its account;

   -  an exchange distribution in accordance with the rules of the applicable
      exchange;

   -  privately negotiated transactions;

   -  settlement of short sales created after the date of this Prospectus;

   -  broker-dealers may agree with the selling stockholders to sell a specified
      number of such shares at a stipulated price per share;

   -  a combination of any such methods of sale; and

   -  any other method permitted pursuant to applicable law.

   The selling stockholders may also sell shares under Rule 144 under the
Securities Act, if available, rather than under this prospectus. Broker-dealers
engaged by the selling stockholders may arrange for other brokers-dealers to
participate in sales. Broker-dealers may receive commissions or discounts from
the selling stockholders (or, if any broker-dealer acts as agent for the
purchaser of shares, from the purchaser) in amounts to be negotiated. The
selling stockholders do not expect these commissions and discounts to exceed
what is customary in the types of transactions involved.

      The selling stockholder may from time to time pledge or grant a security
interest in some or all of the Shares or common stock owned by them and, if they
default in the performance of their secured obligations, the pledgees or secured
parties may offer and sell the shares of common stock from time to time under
this prospectus, or under an amendment to this prospectus under Rule 424(b)(3)
or other applicable provision of the Securities Act of 1933 amending the list of
selling stockholders to include the pledgee, transferee or other successors in
interest as selling stockholders under this prospectus.

                                       25
<PAGE>
      The selling stockholders also may transfer the shares of common stock in
other circumstances, in which case the transferees, pledgees or other successors
in interest will be the selling beneficial owners for purposes of this
prospectus.

      The selling stockholders and any broker-dealers or agents that are
involved in selling the shares may be deemed to be "underwriters" within the
meaning of the Securities Act in connection with such sales. In such event, any
commissions received by such broker-dealers or agents and any profit on the
resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act. The selling stockholders have
informed the Company that none of them have any agreement or understanding,
directly or indirectly, with any person to distribute the common stock.

      The Company is required to pay all fees and expenses incurred by the
Company incident to the registration of the shares. The Company has agreed to
indemnify the selling stockholders against certain losses, claims, damages and
liabilities, including liabilities under the Securities Act.

                                       26<PAGE>

                                                                    Exhibit 10.1

                              JLG INDUSTRIES, INC.
                            LONG TERM INCENTIVE PLAN

1.       PURPOSE

         The JLG Industries, Inc. Long Term Incentive Plan (the "Plan"), is
         designed to enable key personnel and Outside Directors of JLG
         Industries, Inc. (the "Company") and its Subsidiaries to acquire or
         increase a proprietary interest in the Company, and thus to share in
         the future success of the Company's business. In addition, the Plan is
         designed to motivate key personnel by means of growth-related
         incentives to achieve long-range goals. Accordingly, the Plan is
         intended as a further means not only of attracting and retaining
         outstanding personnel and directors, but also of promoting a closer
         identity of interests between management, Outside Directors, and
         shareholders. This Plan reflects the consolidation of the Company's
         prior plans, the JLG Industries, Inc. Stock Incentive Plan (for
         employees) and the JLG Industries, Inc. Directors Stock Option Plan
         (for Outside Directors).

2.       DEFINITIONS

         In this Plan document, unless the context clearly indicates otherwise,
         words in the masculine gender shall be deemed to refer to females as
         well as males, any term used in the singular also shall refer to the
         plural, and the following capitalized terms shall have the following
         meanings set forth in this Section 2:

         (a)      "Award" means an Option, Restricted Share, Right, Bonus Share,
                  Performance Unit, or Performance Share. Unless the context
                  clearly indicates otherwise, the term "Awards" shall include
                  Options, Restricted Shares, Rights, Bonus Shares, Performance
                  Units, or Performance Shares. "Equity Award" means any Option,
                  Restricted Share, Bonus Share, Performance Unit, Performance
                  Share, or other Award that is settled in Shares; "Cash Award"
                  means any Right, Performance Unit, Performance Share, or other
                  Award that is settled in cash.

         (b)      "Beneficiary" means the person or persons designated in
                  writing by the Grantee as his beneficiary in respect of an
                  Award; or, in the absence of an effective designation or if
                  the designated person or persons predecease the Grantee, the
                  Grantee's Beneficiary shall be the person or persons who
                  acquire by bequest or inheritance the Grantee's rights in
                  respect of an Award. In order to be effective, a Grantee's
                  designation of a Beneficiary must be on file with the Company
                  before the Grantee's death. Any such designation may be
                  revoked and a new designation substituted for it at any time
                  before the Grantee's death.

         (c)      "Board of Directors" or "Board" means the Board of Directors
                  of the Company.

         (d)      "Bonus Share" means a Share granted pursuant to Section 12(g)
                  hereof without restriction.

<PAGE>

         (e)      "Change in Control" means the first to occur of the following
                  events:

                  (1)      an acquisition (other than directly from the Company)
                           of securities of the Company by any person,
                           immediately after which such person, together with
                           all securities law affiliates and associates of such
                           person, becomes the beneficial owner of securities of
                           the Company representing 25 percent or more of the
                           voting power; provided that, in determining whether a
                           Change in Control has occurred, the acquisition of
                           securities of the Company in a non-control
                           acquisition will not constitute an acquisition that
                           would cause a Change in Control; or

                  (2)      three or more directors, whose election or nomination
                           for election is not approved by a majority of the
                           members of the Incumbent Board, are elected within
                           any single 12-month period to serve on the Board of
                           Directors; provided that an individual whose election
                           or nomination for election is approved as a result of
                           either an actual or threatened election contest or
                           proxy contest, including by reason of any agreement
                           intended to avoid or settle any election contest or
                           proxy contest, will be deemed not to have been
                           approved by a majority of the incumbent Board for
                           purposes of this definition; or

                  (3)      members of the Incumbent Board cease for any reason
                           to constitute at least a majority of the Board of
                           Directors; or

                  (4)      approval by shareholders of the Company of:

                           (i)      a merger, consolidation, or reorganization
                                    involving the Company, unless

                                    (A)      the shareholders of the Company,
                                             immediately before the merger,
                                             consolidation, or reorganization,
                                             own, directly or indirectly
                                             immediately following such merger,
                                             consolidation, or reorganization,
                                             at least 75 percent of the combined
                                             voting power of the outstanding
                                             voting securities of the
                                             corporation resulting from such
                                             merger, consolidation, or
                                             reorganization in substantially the
                                             same proportion as their ownership
                                             of the voting securities
                                             immediately before such merger,
                                             consolidation, or reorganization;

                                    (B)      individuals who were members of the
                                             incumbent Board immediately prior
                                             to the execution of the agreement
                                             providing for such merger,
                                             consolidation, or reorganization
                                             constitute at least a majority of
                                             the board of directors of the
                                             surviving corporation; and

                                      -2-

<PAGE>

                                    (C)      no person (other than (I) the
                                             Company or any Subsidiary thereof,
                                             (II) any employee benefit plan (or
                                             any trust forming a part thereof)
                                             maintained by the Company, any
                                             Subsidiary thereof, or the
                                             surviving corporation, or (III) any
                                             person who, immediately prior to
                                             such merger, consolidation, or
                                             reorganization, had beneficial
                                             ownership of securities
                                             representing 25 percent or more of
                                             the voting power) has beneficial
                                             ownership of securities
                                             representing 25 percent or more of
                                             the combined voting power of the
                                             surviving corporation's then
                                             outstanding voting securities;

                           (ii)     a complete liquidation or dissolution of the
                                    Company; or

                           (iii)    an agreement for the sale or other
                                    disposition of all or substantially all of
                                    the assets of the Company to any person
                                    (other than a transfer to a Subsidiary).

         (f)      "Code" means the Internal Revenue Code of 1986, as amended
                  from time to time.

         (g)      "Committee" means a committee consisting of such number of
                  members of the Compensation Committee of the Board of
                  Directors with such qualifications as are required to qualify
                  as an outside director for purposes of (i) Rule 16b-3 under
                  the Securities Exchange Act of 1934, as in effect from time to
                  time (or any successor rule of similar import) and (ii)
                  Section 162(m) of the Code, and the regulations thereunder, as
                  in effect from time to time (or any successor provision of
                  similar import), to the extent that Awards made under the Plan
                  are intended to qualify as performance-based compensation
                  thereunder.

         (h)      "Company" means JLG Industries, Inc.

         (i)      "Covered Executive" means an individual who is determined by
                  the Committee to be reasonably likely to be a "covered
                  employee" under Section 162(m) of the Code, and to receive
                  compensation that would exceed the deductibility limits under
                  Section 162(m), as of the end of the Company's taxable year
                  for which an Award to the individual will be deductible.

         (j)      "Disability" or "Disabled" means having a total and permanent
                  disability as defined in Section 22(e)(3) of the Code.

         (k)      "Effective Date" means November 20, 2003, provided that the
                  Plan shall have been approved by the Company's shareholders.

         (l)      "Election Contest" means an election contest described in Rule
                  14a-11 promulgated under the Securities Exchange Act.

         (m)      "Employee" means any person who is an employee, as defined in
                  Section 3401(c) of the Code, of the Company, any Subsidiary,
                  or any Parent.

                                      -3-

<PAGE>

         (n)      "Fair Market Value" means, when used in connection with the
                  Shares on a certain date, the fair market value of a Share as
                  determined by the Committee, and shall be deemed equal to the
                  closing price at which Shares are traded on such date (or on
                  the next preceding day for which such information is
                  ascertainable at the time of the Committee's determination) as
                  reported for such date by The Wall Street Journal (or if
                  Shares are not traded on such date, on the next preceding day
                  on which Shares are traded) (or if Shares are traded on such
                  date but no edition of The Wall Street Journal reporting such
                  prices for such date is published, the fair market value shall
                  be deemed equal to the closing price at which Shares are
                  traded on such date as reported through the National
                  Association of Securities Dealers Automated Quotations System
                  in any other newspaper).

         (o)      "Grantee" means a person to whom an Award has been granted
                  under the Plan.

         (p)      "Incentive Stock Option" means an Option granted in accordance
                  with Section 8 hereof that complies with the terms and
                  conditions set forth in Section 422(b) of the Code and is
                  designated by the Committee as an Incentive Stock Option.

         (q)      "Incumbent Board" means individuals who, as of the close of
                  business on the Effective Date, are members of the Board of
                  Directors; provided that, if the election, or nomination for
                  election by the Company's shareholders, of any new director
                  was approved by a vote of at least 75 percent of the Incumbent
                  Board, such new director shall, for purposes of the Plan, be
                  considered as a member of the Incumbent Board; provided
                  further 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 Context or
                  other actual or threatened Proxy Contest, including by reason
                  of any agreement intended to avoid or settle any Election
                  Contest or Proxy Contest.

         (r)      "Limited Stock Appreciation Right" means a right that provides
                  for payment in accordance with Section 11 hereof.

         (s)      "Non-qualified Stock Option" means an Option granted under the
                  Plan other than an Incentive Stock Option.

         (t)      "Option" means any option to purchase a Share or Shares
                  pursuant to the provisions of the Plan. Unless the context
                  clearly indicates otherwise, the term "Option" shall include
                  both Incentive Stock Options and Non-qualified Stock Options.

         (u)      "Option Agreement" means the written, or to the extent
                  permitted by law, electronic, agreement to be entered into by
                  the Company and the Grantee, as provided in Section 7 hereof.

         (v)      "Outside Director" means each member of the Board of Directors
                  who is not an Employee.

                                      -4-

<PAGE>

         (w)      "Parent" means any parent corporation of the Company within
                  the meaning of Section 424(e) of the Code (or a successor
                  provision of similar import).

         (x)      "Performance Share" means an Award made pursuant to Section
                  14.

         (y)      "Performance Unit" means an Award made pursuant to Section 13.

         (z)      "Performance-Based Restricted Shares" means Restricted Shares
                  that are intended to qualify as performance-based compensation
                  under Section 162(m) of the Code, and the regulations
                  thereunder.

         (aa)     "Plan" means the JLG Industries, Inc. Long Term Incentive
                  Plan, as set forth herein and as amended from time to time
                  (except where the context makes clear that the reference is
                  either to the JLG Industries, Inc. Stock Incentive Plan or to
                  the JLG Industries, Inc. Directors Stock Option Plan, both as
                  in effect prior to the Effective Date).

         (bb)     "Prior Plans" shall mean the JLG Industries, Inc. Stock
                  Incentive Plan or the JLG Industries, Inc. Directors Stock
                  Option Plan, as the context requires, which were replaced by
                  the Plan as of the Effective Date.

         (cc)     "Proxy Contest" means a solicitation of proxies or consents by
                  or on behalf of a person or entity other than the Board of
                  Directors.

         (dd)     "Quota" means the portion of the total number of Shares
                  subject to an Option that the Grantee of the Option may
                  purchase during each of the several periods of the Term of the
                  Option (if the Option is subject to Quotas), as provided in
                  Section 17(a) hereof.

         (ee)     "Restricted Shares" means Shares granted pursuant to Section
                  12(a) through 12(f) hereof or purchased under a Non-qualified
                  Stock Option pursuant to Section 9(d) hereof and subject to
                  such restrictions and other terms and conditions as the
                  Committee shall determine in accordance with the Plan.

         (ff)     "Retirement" means retirement pursuant to the JLG Industries,
                  Inc. Employees' Retirement Savings Plan, as amended from time
                  to time.

         (gg)     "Right" means a Stock Appreciation Right or a Limited Stock
                  Appreciation Right.

         (hh)     "Shares" means shares of the Company's $.20 par value common
                  stock, or any security into which such shares may be converted
                  by reason of any event of the type referred to in Sections 22
                  or 23 of the Plan.

         (ii)     "Stock Appreciation Right" or "SAR" means a right that
                  provides payment in accordance with Section 10.

         (jj)     "Subsidiary" means a subsidiary corporation of the Company
                  within the meaning of Section 424(f) of the Code (or a
                  successor provision of similar import.)

                                      -5-

<PAGE>

         (kk)     "Term" means the period during which a particular Option or
                  Right may be exercised.

3.       EFFECTIVE DATE AND DURATION OF THE AMENDED AND RESTATED PLAN

         (a)      Upon adoption by the Company's Board of Directors and approval
                  by the Company's shareholders at the Company's annual meeting
                  on November 20, 2003, the Plan shall be effective as of the
                  Effective Date and shall continue in effect until December 31,
                  2013; provided, however, that no Incentive Stock Options shall
                  be granted under the Plan more than 10 years from the earlier
                  of the date the Plan is adopted or approved by shareholders.
                  The adoption of the Plan as of the Effective Date shall not
                  affect the terms of any Option or Award that was outstanding
                  prior to the Effective Date; all such Options and Awards shall
                  continue to be governed by the terms of the applicable Prior
                  Plan in effect immediately prior to the Effective Date.

         (b)      Awards may be granted at any time prior to the earlier of the
                  expiration of the term of the Plan, as described in subsection
                  (a) above, or the termination of the Plan pursuant to Section
                  24 hereof. For the purpose of commencing the ten-year period
                  specified in Section 422(b)(2) of the Code during which
                  Incentive Stock Options may be granted, the adoption of this
                  Plan as of the Effective Date shall constitute the adoption of
                  a new plan. An Award outstanding at the time the Plan is
                  terminated (either by expiration of the term of the Plan or by
                  termination of the Plan pursuant to Section 24 hereof) shall
                  not cease to be or cease to become exercisable pursuant to its
                  terms solely because of the termination of the Plan.

         (c)      No Awards of Performance-Based Restricted Shares, Performance
                  Shares, or Performance Units shall be made on any date to a
                  Covered Executive, unless the material terms of the
                  performance goals have been approved by shareholders within
                  the preceding five years.

4.       NUMBER AND SOURCE OF SHARES SUBJECT TO THE PLAN

         (a)      The Company may grant Equity Awards under the Plan with
                  respect to not more than (i) 230,254 Shares with respect to
                  which Awards were authorized but not granted under the Prior
                  Plans, as of July 31, 2003, plus (ii) 2,920,000 additional
                  Shares, plus (iii) no more than 5,800,000 additional Shares
                  pursuant to subsection (d), below. The aggregate limit of
                  3,150,254 Shares available (plus no more than 5,800,000 Shares
                  available pursuant to subsection (d), below, if any) for
                  Equity Awards shall be subject to adjustment as provided in
                  Section 22 hereof. Shares available for Equity Awards shall be
                  provided from Shares in the treasury or by the issuance of
                  Shares authorized but unissued.

                                      -6-

<PAGE>

         (b)      If an Option granted on or after the Effective Date is
                  surrendered before exercise, or lapses or is terminated
                  without being exercised, in whole or in part, for any reason
                  other than the exercise of a Limited Stock Appreciation Right,
                  the Shares subject to the Option shall be restored to the
                  aggregate maximum number of Shares (specified in subsection
                  (a) above) with respect to which Equity Awards may be granted
                  under the Plan, but only to the extent that the Option or any
                  related Right has not been exercised. Similarly, if any
                  Restricted Share is forfeited and returned to the Company,
                  such forfeited Share shall be restored to the aggregate
                  maximum number of Shares with respect to which Equity Awards
                  may be granted under the Plan. Shares surrendered in payment
                  of the exercise price of an Option also shall be restored to
                  the aggregate maximum number of Shares with respect to which
                  Equity Awards may be granted under the Plan.

         (c)      Awards of Restricted Shares, Bonus Shares, and Performance
                  Units or Performance Shares settled in stock shall not in the
                  aggregate exceed 850,000 Shares, and shall also count against
                  the overall limit on Shares available for Equity Awards under
                  subsection (a).

         (d)      If, on or after the Effective Date, any of the Equity Awards
                  granted under the Prior Plans before the Effective Date which
                  remain unexercised or unvested on the Effective Date is
                  surrendered before exercise, lapses or is terminated without
                  being exercised, or is forfeited, in whole or in part, for any
                  reason, the Company may grant Equity Awards under this Plan
                  with respect to the Shares subject to such Equity Awards in
                  addition to the maximum number of Shares specified in clauses
                  (i) and (ii) of subsection (a), above, provided that no more
                  than 5,800,000 shall be available for issuance under this Plan
                  pursuant to this subsection (d).

         (e)      The maximum number of Shares that can be the subject of Equity
                  Awards to any individual in any fiscal year of the Company is
                  400,000 Shares. For purposes of this subsection (e), if an
                  Equity Award is canceled, the Shares covered by the canceled
                  Award shall be counted against the maximum number of Shares
                  for which Equity Awards may be granted to the individual.

         (f)      The Plan replaces the Prior Plans as of the Effective Date.
                  Upon shareholder approval of the Plan, all remaining Shares
                  with respect to which additional Awards were authorized but
                  not granted under the Prior Plans will be cancelled and Shares
                  available for Equity Awards on or after the Effective Date
                  shall be provided solely in Section 4 hereof. Awards may be
                  made under the Prior Plans prior to the Effective Date of the
                  Plan; provided that no Awards may be made under the Prior Plan
                  with respect to the Shares described in clause (i) of
                  subsection (a). If shareholders do not approve the Plan, the
                  Prior Plans shall remain in effect in accordance with their
                  terms.

5.       ADMINISTRATION OF THE PLAN

         (a)      The Plan shall be administered by the Committee.

                                      -7-

<PAGE>

         (b)      Except as provided in the following sentence, the Committee
                  may adopt, amend and rescind rules and regulations relating to
                  the Plan as it may deem proper, shall make all other
                  determinations necessary or advisable for the administration
                  of the Plan, and may provide for conditions and assurances
                  deemed necessary or advisable to protect the interests of the
                  Company, to the extent not contrary to the express provisions
                  of the Plan; provided, however, that the Committee may take
                  action only upon the agreement of a majority of its members
                  then in office. No action or determination by the Committee
                  may adversely affect any right acquired by any Grantee or
                  Beneficiary under the terms of any Award granted before the
                  date such action or determination is taken or made, unless the
                  affected Grantee or Beneficiary shall expressly consent; but
                  it shall be conclusively presumed that any adjustment pursuant
                  to Section 22 does not adversely affect any such right. Any
                  action that the Committee may take through a written
                  instrument signed by all of its members then in office shall
                  be as effective as though taken at a meeting duly called and
                  held.

         (c)      The powers of the Committee shall include plenary authority to
                  interpret the Plan, and, subject to the provisions hereof, the
                  Committee may determine (i) the persons to whom Awards shall
                  be granted; (ii) the number of Shares subject to each Award;
                  (iii) the Term of each Award; (iv) the frequency of Awards and
                  the date on which each Award shall be granted; (v) the type of
                  each Award; (vi) the Quotas (if any), exercise periods, and
                  other terms and conditions applicable to each Option and
                  Right, and the provisions of each Option Agreement; (vii) any
                  performance criteria pursuant to which Awards may be granted;
                  and (viii) the restrictions and other terms and conditions of
                  each grant of Restricted Shares and the provisions of any
                  instruments evidencing such grants. The Committee also may
                  accelerate at any time the exercisability of outstanding
                  Options, provided that no Option shall be exercisable prior to
                  the expiration of the mandatory six-month holding period
                  specified in Section 17(a) hereof.

         (d)      The determinations, interpretations, and other actions made or
                  taken by the Committee pursuant to the provisions of the Plan
                  shall be final, binding, and conclusive for all purposes and
                  upon all persons.

         (e)      Subject to the limits established by the Committee pursuant to
                  this Section 5(e), the Company's Chief Executive Officer is
                  authorized to grant Awards to key Employees (excluding those
                  Employees required to file ownership reports with the
                  Securities and Exchange Commission under Section 16(a) of the
                  Securities and Exchange Act of 1934) having such terms,
                  consistent with the terms of the Plan, as the Chief Executive
                  Officer shall determine. No later than 90 days after the
                  commencement of each fiscal year of the Company, the Committee
                  may establish (i) a maximum aggregate amount of Awards which
                  the Chief Executive Officer may grant during such fiscal year
                  and (ii) the maximum amount of Awards which the Chief
                  Executive Officer may grant to any one Grantee during such
                  fiscal year. Upon granting any Awards pursuant to the Plan,
                  the Chief Executive Officer, promptly, but in any event not
                  later than the next Committee meeting, shall inform the
                  Committee of the terms and number of Awards granted

                                      -8-

<PAGE>

                  to any Grantee. The types of Awards that the Chief Executive
                  Officer may grant shall be limited to Restricted Shares, Bonus
                  Shares, and Non-qualified Stock Options which, in each case,
                  are not intended to qualify as performance-based compensation
                  for purposes of Section 162(m) of the Code. The exercise price
                  of any Options granted by the Chief Executive Officer pursuant
                  to the Plan shall not be less than the Fair Market Value of
                  the Shares on the date the Option is granted.

6.       EMPLOYEES AND OUTSIDE DIRECTORS ELIGIBLE TO RECEIVE AWARDS

         (a)      Awards may be granted under the Plan to key Employees of the
                  Company or any Subsidiary (including employees who are
                  directors and/or officers). All determinations by the
                  Committee as to the identity of the persons to whom Awards
                  shall be granted hereunder shall be conclusive.

         (b)      Outside Directors may be granted Awards (excluding Incentive
                  Stock Options), subject to the provisions of Section 16
                  hereof.

         (c)      An individual Grantee may receive more than one Award.

7.       OPTION AGREEMENT

         (a)      No Option or Right shall be exercised by a Grantee unless he
                  shall have executed and delivered an Option Agreement
                  evidencing the grant of such Option or Right. The Agreement
                  shall set forth the number of Shares subject to the Option or
                  Right and the terms, conditions, and restrictions applicable
                  thereto.

         (b)      Appropriate officers of the Company are hereby authorized to
                  execute and deliver Option Agreements in the name of the
                  Company as directed from time to time by the Committee.

8.       INCENTIVE STOCK OPTIONS

         (a)      The Committee may authorize the grant of Incentive Stock
                  Options to officers and key Employees, subject to the terms
                  and conditions set forth in the Plan. The Option Agreement
                  relating to an Incentive Stock Option shall state that the
                  Option evidenced by the Option Agreement is intended to be an
                  "incentive stock option" within the meaning of Section 422(b)
                  of the Code.

         (b)      The Term of each Incentive Stock Option shall end (unless the
                  Option shall have terminated earlier under another provision
                  of the Plan) on a date fixed by the Committee and set forth in
                  the applicable Option Agreement. In no event shall the Term of
                  an Incentive Stock Option extend beyond ten years from the
                  date of grant. In the case of any Grantee who, on the date the
                  Option is granted, owns (within the meaning of Section 424(d)
                  of the Code) more than ten percent of the total combined
                  voting power of all classes of stock of the Company, a Parent,
                  or a

                                      -9-

<PAGE>

                  Subsidiary, the Term of the Option shall not extend beyond
                  five years from the date of grant.

         (c)      To the extent that the aggregate Fair Market Value of the
                  Shares with respect to which Incentive Stock Options
                  (determined without regard to this paragraph (c)) are
                  exercisable by any Grantee for the first time during any
                  calendar year (under all stock option plans of the Company,
                  its Parent and its Subsidiaries) exceeds $100,000 (excluding
                  any Options that do not qualify as Incentive Stock Options at
                  the time of grant), the portion of any such Option that
                  exceeds the $100,000 limit shall be a Non-qualified Stock
                  Option. For the purpose of this subsection (c), the Fair
                  Market Value of Shares shall be determined as of the time the
                  Option with respect to such stock is granted.

         (d)      For purposes of applying the limitation in subsection (c), the
                  following rules shall apply, except to the extent that final
                  regulations issued under Code Sections 421, 422, or 424
                  provide or require otherwise:

                  (1)      The limitation in subsection (c) shall be applied by
                           taking Options into account in the order in which
                           they were granted.

                  (2)      An Incentive Stock Option shall be considered to be
                           first exercisable at any time during a calendar year
                           if the Incentive Stock Option will become exercisable
                           during the year assuming that any condition on the
                           optionee's ability to exercise the Incentive Stock
                           Option related to performances of services is
                           satisfied. If the optionee's ability to exercise the
                           Incentive Stock Option in the year is subject to an
                           acceleration provision, then the Incentive Stock
                           Option is considered first exercisable in the
                           calendar year in which the acceleration provision is
                           triggered.

                  (3)      After an acceleration provision is triggered, the
                           Options subject to such provision are then taken into
                           account in accordance with subsection (d)(1) for
                           purposes of applying the limitation in subsection (c)
                           to all Options first exercisable during a calendar
                           year.

                  (4)      An Option (or portion thereof) is disregarded if,
                           prior to the calendar year during which it would
                           otherwise have become exercisable for the first time,
                           the Option (or portion thereof) is modified and
                           thereafter ceases to be an Incentive Stock Option, is
                           canceled, or is transferred in violation of the
                           nontransferability requirements of Code Section 421.

                  (5)      If an Option (or portion thereof) is modified,
                           canceled, or transferred at any other time, such
                           Option (or portion thereof) is treated as outstanding
                           according to its original terms until the end of the
                           calendar year during which it would otherwise have
                           become exercisable for the first time.

         (e)      The Option price to be paid by the Grantee to the Company for
                  each Share purchased upon the exercise of an Incentive Stock
                  Option shall be equal to the

                                      -10-

<PAGE>

                  Fair Market Value of a Share on the date the Option is
                  granted, except that with respect to any Incentive Stock
                  Option granted to a Grantee who, on the date the Option is
                  granted, owns (within the meaning of Section 424(d) of the
                  Code) more than ten percent of the total combined voting power
                  of all classes of stock of the Company, a Parent, or a
                  Subsidiary, the Option price for each Share purchased shall
                  not be less than 110 percent of the Fair Market Value of a
                  Share on the date the Option is granted. In no event may an
                  Incentive Stock Option be granted if the Option price per
                  Share is less than the par value of a Share.

         (f)      Any Grantee who disposes of Shares purchased upon the exercise
                  of an Incentive Stock Option either (i) within two years after
                  the date on which the Option was granted, or (ii) within one
                  year after the transfer of such Shares to the Grantee, shall
                  promptly notify the Company of the date of such disposition
                  and of the amount realized upon such disposition.

9.       NON-QUALIFIED STOCK OPTIONS

         (a)      The Committee may authorize the grant of Non-qualified Stock
                  Options subject to the terms and conditions set forth in the
                  Plan. Unless an Option is designated by the Committee as an
                  Incentive Stock Option, it is intended that the Option will
                  not be an "incentive stock option" within the meaning of
                  Section 422(b) of the Code and, instead, will be a
                  Non-qualified Stock Option. The Option Agreement relating to a
                  Non-qualified Stock Option shall state that the Option
                  evidenced by the Option Agreement will not be treated as an
                  Incentive Stock Option.

         (b)      The Term of each Non-qualified Stock Option shall end (unless
                  the Option shall have terminated earlier under another
                  provision of the Plan) on a date fixed by the Committee and
                  set forth in the applicable Option Agreement. In no event
                  shall the Term of a Non-qualified Stock Option extend beyond
                  ten years from the date of grant of the Option.

         (c)      In no event may a Non-qualified Stock Option be granted if the
                  Option price per Share is less than the Fair Market Value at
                  the time of grant.

         (d)      At the time of the grant of a Non-qualified Stock Option, the
                  Committee shall specify whether the Shares purchased under the
                  Option shall or shall not be Restricted Shares (or whether
                  they shall be a specified combination of Shares that are, and
                  Shares that are not, Restricted Shares). Restricted Shares
                  purchased under an Option shall be subject to the terms,
                  conditions and restrictions set out in subsections (b) through
                  (e) of Section 12, and such additional terms, conditions and
                  restrictions as the Committee may determine. Subject to the
                  provisions of subsections (b) through (e) of Section 12, the
                  Committee, at the time of grant, shall determine (and the
                  Option Agreement shall specify) the terms and conditions of
                  any Restricted Shares that may be purchased under the
                  Non-qualified Stock Option, including the duration of the
                  restrictions that shall be imposed on the Restricted Shares,
                  and the dates on which, or circumstances in

                                      -11-

<PAGE>

                  which, the restrictions shall expire, lapse or be removed or
                  the Restricted Shares shall be forfeited. Shares purchased
                  under an Option after the Company obtains actual knowledge
                  that a Change in Control has occurred shall not be subject to
                  any restrictions.

10.      STOCK APPRECIATION RIGHTS

         (a)      The Committee may authorize the grant of Stock Appreciation
                  Rights subject to the terms and conditions set forth in the
                  Plan. SARs are rights that, on exercise, entitle the Grantee
                  to receive the excess of (i) the Fair Market Value of a Share
                  on the date of exercise over (ii) the Fair Market Value of a
                  Share on the date of grant, multiplied by the number of Shares
                  with respect to which the SAR is exercised.

         (b)      The amount to be paid to a Grantee upon the exercise of an SAR
                  shall be paid in cash.

11.      LIMITED STOCK APPRECIATION RIGHTS

         (a)      The Committee may authorize the grant of Limited Stock
                  Appreciation Rights in connection with all or part of any
                  Option.

         (b)      A Limited Stock Appreciation Right may be exercised only at
                  such times, by such persons, and to such extent, as the
                  related Option is exercisable. Furthermore, a Limited Stock
                  Appreciation Right may be exercised only within the 60-day
                  period beginning on the date on which the Company obtains
                  actual knowledge that a Change in Control has occurred. As
                  soon as the Company obtains actual knowledge that a Change in
                  Control has occurred, the Company shall promptly notify each
                  Grantee in writing of the Change in Control, whether or not
                  the Grantee holds a Limited Stock Appreciation Right.

         (c)      The Shares that are subject to a Limited Stock Appreciation
                  Right shall not be used more than once to calculate the amount
                  to be received pursuant to the exercise of the Limited Stock
                  Appreciation Right. The right of a Grantee to exercise an
                  Option shall be canceled if and to the extent that the Shares
                  subject to the Option are used to calculate the amount to be
                  received upon the exercise of the related Limited Stock
                  Appreciation Right, and the right of a Grantee to exercise a
                  Limited Stock Appreciation Right shall be canceled if and to
                  the extent that the Shares with respect to which the Limited
                  Stock Appreciation Right may be exercised are purchased upon
                  the exercise of the related Option.

         (d)      A Limited Stock Appreciation Right may be granted coincident
                  with or after the grant of any related Option, provided that
                  the Committee shall consult with counsel before granting a
                  Limited Stock Appreciation Right after the grant of a related
                  Incentive Stock Option.

         (e)      The amount to be paid to the Grantee upon exercise of a
                  Limited Stock Appreciation Right that is related to a
                  Non-qualified Stock Option shall be paid in

                                      -12-

<PAGE>

                  cash, and shall be equal to the number of Shares with respect
                  to which the Limited Stock Appreciation Right is exercised
                  multiplied by the excess of

                  (1)      the higher of (i) the highest Fair Market Value of a
                           Share during the period commencing on the ninetieth
                           (90th) day preceding the exercise of the Limited
                           Stock Appreciation Right and ending on the date of
                           exercise; or (ii) if an event described in paragraph
                           (i) of the definition of "Change in Control", above,
                           has occurred, the highest price per Share (A) paid
                           for any Share in any transaction occurring during the
                           period described in clause (i) by any person or group
                           (as defined in the definition of "Change in Control",
                           above) whose acquisition of Shares caused the Change
                           in Control to occur, or (B) paid for any Share as
                           shown on Schedule 13D (or an amendment thereto) filed
                           pursuant to Section 13(d) of the Securities Exchange
                           Act of 1934 by any such person or group, over

                  (2)      the Option price of the related Non-qualified Stock
                           Option.

         (f)      The amount to be paid to the Grantee upon exercise of a
                  Limited Stock Appreciation Right that is related to an
                  Incentive Stock Option shall be paid in cash, and shall be
                  equal to the number of Shares with respect to which the
                  Limited Stock Appreciation Right is exercised multiplied by
                  the excess of (i) the Fair Market Value (as of the exercise
                  date of the Limited Stock Appreciation Right) of a Share over
                  (ii) the Option price of the related Incentive Stock Option.

12.      RESTRICTED SHARES AND BONUS SHARES

         (a)      The Committee may authorize the grant of Restricted Shares
                  subject to the terms and conditions set forth in the Plan. The
                  following terms, conditions and restrictions and such
                  additional terms, conditions and restrictions as may be
                  determined by the Committee shall apply to Restricted Shares.
                  Subject to the provisions of this Section 12 (including, in
                  the case of Performance-Based Restricted Shares, paragraph
                  (f)), the Committee shall determine at the time of grant the
                  size and the terms and conditions of each grant of Restricted
                  Shares, including the duration of the restrictions that shall
                  be imposed on the Restricted Shares, the dates on which, or
                  circumstances in which, the restrictions shall expire, lapse
                  or be removed or the Restricted Shares shall be forfeited, and
                  the price to be paid to the Company by the Grantee (and the
                  terms of payment thereof) for the Restricted Shares. In no
                  event, however, shall the price of a Restricted Share be less
                  than the par value of a Share on the date of grant. The
                  Committee may cause to be issued an instrument evidencing the
                  grant of the Restricted Shares to the Grantee, which
                  instrument may set forth the restrictions and other terms and
                  conditions of the grant.

         (b)      A Grantee who has acquired Restricted Shares (pursuant to
                  either a grant of Restricted Shares or the exercise of an
                  Option to purchase Restricted Shares) shall have beneficial
                  ownership of the Restricted Shares, including the right to
                  receive

                                      -13-

<PAGE>

                  dividends on (subject, in the case of Performance-Based
                  Restricted Shares, to the provisions of paragraph (f)) and the
                  right to vote, the Restricted Shares. A certificate or
                  certificates representing the number of Restricted Shares
                  acquired shall be registered in the name of the Grantee. The
                  Committee, in its sole discretion, shall determine when the
                  certificate or certificates shall be delivered to the Grantee
                  (or, in the event of the Grantee's death, to his Beneficiary),
                  may provide for the holding of such certificate or
                  certificates in custody by a bank or other institution or by
                  the Company itself pending their delivery to the Grantee or
                  Beneficiary, and may provide for any appropriate legend to be
                  borne by the certificate or certificates referring to the
                  terms, conditions and restrictions applicable to the Shares.
                  Any attempt to dispose of the Shares in contravention of such
                  terms, conditions and restrictions shall be ineffective.

         (c)      While subject to the restrictions imposed by the Committee in
                  accordance with this Section 12, Restricted Shares

                  (1)      shall not be sold, assigned, conveyed, transferred,
                           pledged, hypothecated, or otherwise disposed of, and

                  (2)      shall be returned to the Company forthwith, and all
                           the rights of the Grantee to such Shares shall
                           immediately terminate, if the Grantee's continuous
                           employment with the Company or any Subsidiary shall
                           terminate for any reason, except as provided in
                           Section 12(d). The return of the Shares shall be
                           accomplished, if necessary, by the Grantee's
                           delivering or causing to be delivered to the Company
                           the certificate(s) for the Shares, accompanied by
                           such endorsement(s) and/or instrument(s) of transfer
                           as may be required by the Company. Upon the return of
                           Shares in accordance with this paragraph (2), the
                           Company shall pay to the Grantee an amount in cash
                           equal to the lesser of the aggregate price paid for
                           the Shares returned or the current fair market value
                           of the Shares returned.

         (d)      Subject to the following provisions of this Section 12(d), the
                  restrictions imposed on Restricted Shares shall lapse on such
                  date or dates as the Committee shall determine when the
                  Restricted Shares (or any Option to purchase them) are
                  granted. In addition, if a Grantee who has been in the
                  continuous employment of the Company or a Subsidiary since the
                  date on which he acquired the Restricted Shares becomes
                  Disabled or dies while in such employment, then the
                  restrictions imposed on the Restricted Shares shall lapse;
                  provided that, if such Restricted Shares are intended to
                  qualify as Performance-Based Restricted Shares, they shall
                  cease to qualify as performance-based compensation for
                  purposes of Section 162(m) of the Code if the restrictions
                  lapse on the account of the Disability or death of the
                  Grantee. All restrictions imposed on Restricted Shares shall
                  lapse immediately following the date on which the Company
                  obtains actual knowledge that a Change in Control has
                  occurred.

         (e)      If, after Restricted Shares are transferred to a Grantee
                  (pursuant to either a grant of Restricted Shares or the
                  exercise of an Option to purchase Restricted Shares),

                                      -14-

<PAGE>

                  the Grantee properly elects, pursuant to section 83(b) of the
                  Code, to include in gross income for Federal income tax
                  purposes the amount determined under section 83(b) of the
                  Code, the Grantee shall furnish to the Company a copy of his
                  completed and signed election form, and shall pay (or make
                  arrangements satisfactory to the Company to pay) to the
                  Company any Federal, state or local taxes required to be
                  withheld with respect to the Shares. If the Grantee fails to
                  make such payments, the Company and its Subsidiaries shall, to
                  the extent permitted by law, have the right to deduct from any
                  payment of any kind otherwise due to the Grantee any Federal,
                  state or local taxes of any kind required by law to be
                  withheld with respect to the Shares.

         (f)      The Committee may authorize the grant of Performance-Based
                  Restricted Shares subject to the following terms and
                  conditions, in addition to all other applicable terms and
                  conditions set forth in the Plan:

                  (1)      The restrictions imposed on Performance-Based
                           Restricted Shares shall expire, lapse or be removed
                           based solely on the account of the attainment of
                           performance targets established by the Committee
                           using one or more of the criteria set forth in
                           Section 15 hereof.

                  (2)      Dividends shall be payable on Performance-Based
                           Restricted Shares only to the extent of the Shares
                           received based upon the attainment of the
                           pre-established performance target(s).

                  (3)      Prior to the release of restrictions on any
                           Performance-Based Restricted Shares, the Committee
                           shall certify in writing (which may be set forth in
                           the minutes of the Committee) that the
                           pre-established performance target(s) have been
                           satisfied.

         (g)      The Committee may authorize the grant of Bonus Shares in
                  consideration for services rendered by a Grantee to the
                  Company or a Subsidiary subject to the terms and conditions
                  set forth in the Plan. Bonus Shares may be awarded pursuant to
                  an Award Agreement containing such terms and conditions as may
                  be established by the Committee. Notwithstanding the
                  foregoing, Bonus Shares may not be awarded to any Grantee
                  required to file ownership reports with the Securities and
                  Exchange Commission under Section 16(a) of the Securities and
                  Exchange Act of 1934, and no Grantee may receive more than
                  5,000 Bonus Shares during any fiscal year of the Company.

13.      PERFORMANCE UNITS

         (a)      The Committee may authorize the grant of Performance Units
                  subject to the terms and conditions set forth in the Plan.
                  Performance Units are rights, denominated in cash or cash
                  units, to receive, at a specified future date, payment in cash
                  or Shares, as determined by the Committee of an amount equal
                  to all or a portion of the value of a unit granted by the
                  Committee.

                                      -15-

<PAGE>

         (b)      At the time of the Award of Performance Units, the Committee
                  shall determine the performance factors applicable to the
                  determination of the ultimate payment value of the Performance
                  Units, using one or more of the criteria set forth in Section
                  15 hereof.

         (c)      Prior to the payment of any Performance Units, the Committee
                  shall certify in writing (which may be set forth in the
                  minutes of the Committee) that the pre-established performance
                  target(s) have been met.

         (d)      The maximum value of an Award of Performance Units granted to
                  any one Grantee in any fiscal year shall not exceed $5
                  million. The foregoing limitation shall be applied at the time
                  of settlement, regardless of whether such settlement is made
                  in cash or Shares.

14.      PERFORMANCE SHARES

         (a)      The Committee may authorize the grant of Performance Shares
                  subject to the terms and conditions set forth in the Plan.
                  Performance Shares are rights, denominated in Shares or stock
                  units equivalent to Shares, to receive, at a specified future
                  date, payment in cash or Shares, as determined by the
                  Committee. Such payment shall be of an amount equal to all or
                  a portion of the Fair Market Value of Shares of the Company on
                  the last day of the specified performance period of a
                  specified number of Shares, based on performance during the
                  period.

         (b)      At the time of the Award of Performance Shares, the Committee
                  shall determine the performance factors applicable to the
                  determination of the ultimate payment value of the Performance
                  Shares, using one or more of the criteria set forth in Section
                  15 hereof.

         (c)      Prior to the payment of any Performance Shares, the Committee
                  shall certify in writing (which may be set forth in the
                  minutes of the Committee) that the pre-established performance
                  target(s) have been met.

         (d)      The maximum number of Shares (or the equivalent value in cash)
                  of any Award of Performance Shares granted to any one Grantee
                  in a fiscal year shall not exceed the limit set forth in
                  Section 4(d).

15.      PERFORMANCE CRITERIA

         (a)      The Committee shall provide for the lapse or expiration of
                  restrictions on Performance-Based Restricted Shares, and shall
                  determine the extent to which Awards of Performance Units and
                  Performance Shares are earned, using one or more of the
                  following objectives: (i) increase in net sales; (ii) pretax
                  income before allocation of corporate overhead and/or bonus;
                  (iii) budget; (iv) earnings per share; (v) net income; (vi)
                  attainment of division, group or corporate financial goals;
                  (vii) return on stockholders' equity; (viii) return on assets;
                  (ix) attainment

                                      -16-

<PAGE>

                  of strategic and operational initiatives; (x) appreciation in
                  or maintenance of the price of the common stock or any other
                  publicly-traded securities of the Company; (xi) increase in
                  market share; (xii) gross profits; (xiii) earnings before
                  interest and taxes; (xiv) earnings before interest, taxes,
                  depreciation and amortization; (xv) economic value-added
                  models; (xvi) comparisons with various stock market indices;
                  (xvii) comparisons with performance metrics of peer companies;
                  or (xviii) reductions in costs.

         (b)      The performance objective shall be sufficiently specific that
                  a third party having knowledge of the relevant facts could
                  determine whether the objective is met. The Committee shall,
                  at the time it establishes the performance target(s) for an
                  Award, specify the period over which the performance target(s)
                  relate. The establishment of the actual performance targets
                  and, if an Award is based on more than one of the foregoing
                  criteria, the relative weighting of such criteria, shall be at
                  the sole discretion of the Committee; provided, however, that
                  in all cases the performance targets must be established by
                  the Committee in writing no later than 90 days after the
                  commencement of the period to which the performance target(s)
                  relates (or, if less, no later than after 25 percent of the
                  period has elapsed) and when achievement of the performance
                  target(s) is substantially uncertain. Once established by the
                  Committee, the performance target(s) may not be changed to
                  increase the amount of compensation that otherwise would be
                  due upon the attainment of the performance target(s).

         (c)      If a Grantee who has been in the continuous employment of the
                  Company or a Subsidiary since the date on which he acquired
                  Performance Based-Restricted Shares becomes Disabled or dies
                  while in such employment, then the restrictions imposed on the
                  Restricted Shares shall lapse. All restrictions imposed on
                  Performance-Based Restricted Shares shall lapse immediately
                  following the date on which the Company obtains actual
                  knowledge that a Change in Control has occurred. The Committee
                  may, in its discretion, provide that the performance target(s)
                  under a Performance Unit or Performance Share shall be deemed
                  satisfied when (i) the Company obtains actual knowledge that
                  Change in Control has occurred, (ii) the Grantee becomes
                  Disabled or (iii) the Grantee dies. Performance-Based
                  Restricted Shares, Performance Units, and Performance Shares
                  that become fully payable on account of (i) the Grantee's
                  death, (ii) the Grantee becoming disabled, or (iii) a Change
                  in Control, shall cease to qualify as performance-based
                  compensation for purposes of Section 162(m) of the Code.

         (d)      The performance target(s) with respect to any
                  Performance-Based Restricted Share, Performance Share or
                  Performance Unit shall be measured over a period no greater
                  than five consecutive years.

16.      GRANTS OF AWARDS TO OUTSIDE DIRECTORS

         (a)      In the discretion of the Committee, from time to time, Awards
                  may be granted to Outside Directors, excluding Incentive Stock
                  Options. Unless otherwise specified

                                      -17-

<PAGE>

                  by the Committee, any Awards to Outside Directors for a year
                  shall be made on the date on which the results of the election
                  of directors held at the Company's annual meeting for that
                  year are certified by the judge of elections. Notwithstanding
                  the foregoing, no Awards shall be granted to any Outside
                  Director in a year unless the Company had a net profit before
                  extraordinary events (as determined by the Company's
                  independent auditors and reflected in the Company's annual
                  report) for the immediately preceding fiscal year.

         (b)      The Committee may, in its discretion, grant Awards, excluding
                  Incentive Stock Options, to any individual who is appointed to
                  the Board for the first time by action of the Board and not
                  action of the Company's shareholders. Unless otherwise
                  specified by the Committee, the date of such grant shall be
                  the date on which the Outside Director is appointed to the
                  Board for the first time.

17.      TERMS AND QUOTAS OF OPTION

         (a)      Each Option and Right granted under the Plan shall be
                  exercisable only during a Term commencing at least six months
                  after the date on which the Option or Right was granted. The
                  Committee shall have authority to grant both Options
                  exercisable in full at any time during their Term and Options
                  exercisable in Quotas. In exercising an Option that is subject
                  to Quotas, the Grantee may purchase less than the full Quota
                  available under the Option during any period. Quotas or
                  portions thereof not purchased in earlier periods shall
                  accumulate and shall be available for purchase in later
                  periods within the Term of the Option.

         (b)      Upon the expiration of the mandatory six-month holding period
                  specified in subsection (a) above, any Option shall be
                  exercisable in full, notwithstanding the applicability of any
                  Quota or other limitation on the exercise of such Option,
                  immediately following the date on which the Company obtains
                  actual knowledge that a Change in Control has occurred.

         (c)      Repricing of Options, within the meaning of Section 303A(8) of
                  the New York Stock Exchange Listed Company Manual, shall not
                  be permitted under the Plan. For purposes of the preceding
                  sentence, the cancellation of an Option in exchange for
                  another Option, Restricted Shares, or other equity shall not
                  be considered a repricing of the original option if the
                  cancellation and exchange occurs in connection with a merger,
                  acquisition, spin-off, or other similar corporate transaction.

18.      EXERCISE OF OPTION OR RIGHT

         (a)      Options or Rights shall be exercised by delivering or mailing
                  to the Committee:

                  (1)      a notice, in the form and in the manner prescribed by
                           the Committee, specifying the number of Shares to be
                           purchased, or the number of Shares

                                      -18-

<PAGE>

                           with respect to which a Limited Stock Appreciation
                           Right shall be exercised, and

                  (2)      if an Option is exercised, payment in full of the
                           Option price for the Shares so purchased

                                    (i) by money order, cashier's check,
                                    certified check; or other cash equivalent
                                    approved by the Committee

                                    (ii) subject to paragraph (v), below, by the
                                    tender of Shares to the Company, or by the
                                    attestation to the ownership of the Shares
                                    that otherwise would be tendered to the
                                    Company in exchange for the Company's
                                    reducing the number of Shares that it issues
                                    to the Grantee by the number of Shares
                                    necessary for payment in full of the Option
                                    price for the Shares so purchased;

                                    (iii) by money order, cashier's check, or
                                    certified check and the tender of Shares to
                                    the Company, or by money order, cashier's
                                    check, or certified check and (subject to
                                    paragraph (v), below) the attestation to the
                                    ownership of the Shares that otherwise would
                                    be tendered to the Company in exchange for
                                    the Company's reducing the number of Shares
                                    that it issues to the Grantee by the number
                                    of Shares necessary for payment in full of
                                    the Option price for the Shares so
                                    purchased; or

                                    (iv) unless the Committee expressly notifies
                                    the Grantee otherwise (at the time of grant
                                    in the case of an Incentive Stock Option or
                                    at any time prior to full exercise in the
                                    case of a Non-qualified Stock Option), and
                                    except to the extent that the Option is an
                                    Option to purchase Restricted Shares, by the
                                    Grantee's (a) irrevocable instructions to
                                    the Company to deliver the Shares issuable
                                    upon exercise of the Option promptly to the
                                    broker for the Grantee's account and (b)
                                    irrevocable instruction letter to the broker
                                    to sell Shares sufficient to pay the
                                    exercise price and upon such sale to deliver
                                    the exercise price to the Company, provided
                                    that at the time of such exercise, such
                                    exercise would not subject the Grantee to
                                    liability under section 16(b) of the
                                    Securities Exchange Act of 1934, or would be
                                    exempt pursuant to Rule 16b-3 promulgated
                                    under such Act or any other exemption from
                                    such liability. The Company shall deliver an
                                    acknowledgment to the broker upon receipt of
                                    instructions to deliver the Shares. The
                                    Company shall deliver the Shares to the
                                    broker upon the settlement date. The broker
                                    shall deliver to the Company cash sale
                                    proceeds sufficient to cover the exercise
                                    price upon receipt of the Shares from the
                                    Company.

                                      -19-

<PAGE>

                                    (v) Shares tendered or attested to in
                                    exchange for Shares issued under the Plan
                                    must be held by the Grantee for at least six
                                    months prior to their tender or their
                                    attestation to the Company, and may not be
                                    Restricted Shares at the time they are
                                    tendered or attested to. The Committee shall
                                    determine acceptable methods for tendering
                                    or attesting to Shares to exercise an Option
                                    under the Plan, and may impose such
                                    limitations and prohibitions on the use of
                                    Shares to exercise Options as it deems
                                    appropriate. For purposes of determining the
                                    amount of the Option price satisfied by
                                    tendering or attesting to Shares, such
                                    Shares shall be valued at their Fair Market
                                    Value on the date of tender or attestation,
                                    as applicable. Except as provided in this
                                    paragraph, the date of exercise shall be
                                    deemed to be the date that the notice of
                                    exercise and payment of the Option price are
                                    received by the Committee. For exercise
                                    pursuant to Section 18(a)(2)(iv) of the
                                    Plan, the date of exercise shall be deemed
                                    to be the date that the notice of exercise
                                    is received by the Committee.

         (b)      Subject to subsection (c) below, upon receipt of the notice of
                  exercise and, if an Option is exercised, upon payment of the
                  Option price, the Company shall promptly deliver to the
                  Grantee (or Beneficiary) a certificate or certificates for the
                  Shares purchased, without charge to him for issue or transfer
                  tax, and if a Limited Stock Appreciation Right is exercised,
                  shall promptly distribute cash to be paid upon the exercise of
                  the Right.

         (c)      The exercise of each Option and Right and the grant or
                  distribution of Restricted Shares under the Plan shall be
                  subject to the condition that if at any time the Company shall
                  determine (in accordance with the provisions of the following
                  sentence) that it is necessary as a condition of, or in
                  connection with, such exercise (or the delivery or purchase of
                  Shares thereunder), grant or distribution

                           (i) to satisfy tax withholding or other withholding
                           liabilities,

                           (ii) to effect the listing, registration, or
                           qualification on any securities exchange or under any
                           state or Federal law of any Shares otherwise
                           deliverable in connection with such exercise, grant
                           or distribution, or

                           (iii) to obtain the consent or approval of any
                           regulatory body,

                  then in any such event such exercise, grant or distribution
                  shall not be effective unless such withholding, listing,
                  registration, qualification, consent or approval shall have
                  been effected or obtained free of any conditions not
                  acceptable to the Company in its reasonable and good faith
                  judgment. Any such determination (described in the preceding
                  sentence) by the Company must be reasonable, must be made in
                  good faith, and must be made without any intent to postpone or
                  limit such exercise, grant or distribution beyond the minimum
                  extent necessary and without any intent otherwise to deny or
                  frustrate any Grantee's rights in respect of

                                      -20-

<PAGE>

                  any Award. In seeking to effect or obtain any such
                  withholding, listing, registration, qualification, consent or
                  approval, the Company shall act with all reasonable diligence.
                  Any such postponement or limitation affecting the right to
                  exercise an Option or Right or the grant or distribution of
                  Restricted Shares shall not extend the time within which the
                  Option or Right may be exercised or the Restricted Shares may
                  be granted or distributed, unless the Company and the Grantee
                  choose to amend the terms of the Award to provide for such an
                  extension; and neither the Company nor its directors or
                  officers shall have any obligation or liability to the Grantee
                  or to a Beneficiary with respect to any Shares with respect to
                  which the Award shall lapse, or with respect to which the
                  grant or distribution shall not be effected, because of a
                  postponement or limitation that conforms to the provisions of
                  this subsection (c).

         (d)      Except as provided in Section 18(e) below, Options and Rights
                  granted under the Plan shall be nontransferable other than by
                  will or by the laws of descent and distribution in accordance
                  with Section 19(a) hereof, and an Option or Right may be
                  exercised during the lifetime of the Grantee only by the
                  Grantee.

         (e)      Subject to the approval of the Committee in its sole
                  discretion, Non-qualified Stock Options, Limited Stock
                  Appreciation Rights that are granted in connection with
                  Non-qualified Stock Options, and Restricted Shares may be
                  transferable to members of the immediate family of the Grantee
                  and to one or more trusts for the benefit of such family
                  members, partnerships in which such family members are the
                  only partners, or corporations in which such family members
                  are the only stockholders. "Members of the immediate family"
                  means the Grantee's spouse, children, stepchildren,
                  grandchildren, parents, grandparents, siblings (including half
                  brothers and sisters), and individuals who are family members
                  by adoption.

         (f)      Upon the purchase of Shares under an Option, the stock
                  certificate or certificates may, at the request of the
                  purchaser, be issued in his name and the name of another
                  person as joint tenants with right of survivorship.

19.      EXERCISE OF OPTION OR RIGHT AFTER DEATH, DISABILITY, RETIREMENT, OTHER
         TERMINATION OF EMPLOYMENT, OR CHANGE IN CONTROL

         (a)      Death

         If a Grantee's employment with the Company and its Subsidiaries or
         status as a member of the Board shall cease due to the Grantee's death,
         or if the Grantee shall die within three months after cessation of
         employment or Board membership while an Option or Right is exercisable
         pursuant to subsection (d) or (e) below, any Option or Right held by
         the Grantee on the date of his death may be exercised only within
         twelve months after the Grantee's death, and only by the Grantee's
         Beneficiary, to the extent that the Option or Right could have been
         exercised immediately before the Grantee's death.

                                      -21-

<PAGE>

         (b)      Disability

         If a Grantee's employment with the Company and its Subsidiaries or
         status as a member of the Board shall cease due to his Disability,
         after at least six months of continuous employment with the Company
         and/or a Subsidiary immediately following the date on which an Option
         or Right was granted (with respect to Grantees other than Outside
         Directors), the Grantee may exercise the Option or Right, to the extent
         that the Option or Right could be exercised at the cessation of
         employment or termination of membership on the Board, at any time
         within two years after the Grantee shall so cease to be an employee or
         Outside Director.

         (b)      Retirement

         If a Grantee's employment with the Company and its Subsidiaries or
         status as a member of the Board ceases due to his Retirement, after at
         least six months of continuous employment with the Company and/or a
         Subsidiary immediately following the date on which an Option or Right
         was granted (with respect to Grantees other than Outside Directors),
         the Grantee may exercise the Option or Right, to the extent the Option
         or Right could be exercised at the cessation of employment, at any time
         within five years after the Grantee's Retirement.

         (c)      Termination of Employment for Any Other Reason

         The Option Agreement shall specify the period, if any, during which an
         Option or Right may be exercised subsequent to the termination of a
         Grantee's employment with the Company and its Subsidiaries, or
         termination of status as a member of the Board at any time other than
         within three months after the date on which the Company obtains actual
         knowledge that a Change in Control has occurred and for any reason
         other than those specified in subsections (a) through (c) above;
         provided, however, that the Option Agreement shall not permit the
         exercise of any Option or Right later than three months after such
         termination; and provided further that the Option or Right may not be
         exercised to an extent greater than the extent to which it could be
         exercised at the cessation of employment or termination of membership
         on the Board.

         (d)      Termination of Employment After a Change in Control

         If, within three months after the Company obtains actual knowledge that
         a Change in Control has occurred, a Grantee's employment with the
         Company and its Subsidiaries or status as a member of the Board ceases
         for any reason other than those specified in subsections (a) through
         (c) above, the Grantee may exercise the Option at any time within three
         months after such cessation of employment or termination of membership
         on the Board.

         (e)      Notwithstanding any other provision of this Section 19, in no
                  event shall an Option be exercisable after the expiration date
                  specified in the Option Agreement.

                                      -22-

<PAGE>

20.      TAX WITHHOLDING

         (a)      The Company shall have the right to collect an amount
                  sufficient to satisfy any Federal, State and/or local tax
                  withholding requirements that might apply with respect to any
                  Award to a Grantee (including, without limitation, the
                  exercise of an Option or Right, the disposition of Shares, or
                  the grant or distribution of Restricted Shares or Bonus
                  Shares) in the manner specified in subsection (b) or (c)
                  below. Alternatively, a Grantee may elect to satisfy any such
                  tax withholding requirements in the manner specified in
                  subsection (d) or (e) below to the extent permitted therein.

         (b)      The Company shall have the right to require Grantees to remit
                  to the Company an amount sufficient to satisfy any such tax
                  withholding requirements. For purposes of determining the
                  amount withheld, the value of the Shares subject to an Award
                  generally shall be the Fair Market Value on the date the tax
                  becomes due. If Shares are sold in a broker-assisted cashless
                  exercise, however, the Company shall use the sale price as the
                  value of the Shares on the sale date.

         (c)      The Company and its Subsidiaries also shall, to the extent
                  permitted by law, have the right to deduct from any payment of
                  any kind (whether or not related to the Plan) otherwise due to
                  a Grantee any such taxes required to be withheld.

         (d)      If the Committee in its sole discretion approves, a Grantee
                  may irrevocably elect to have any tax withholding obligation
                  satisfied by (i) having the Company withhold Shares otherwise
                  deliverable to the Grantee, or (ii) delivering Shares (other
                  than Restricted Shares) to the Company, provided that the
                  Shares withheld or delivered have a Fair Market Value (on the
                  date that the amount of tax to be withheld is determined)
                  equal to the amount required to be withheld.

         (e)      A Grantee may elect to have any tax withholding obligation
                  satisfied in the manner described in Section 18(a)(2)(iv)
                  hereof, to the extent permitted therein.

         (f)      A Grantee who is eligible to participate in the JLG
                  Industries, Inc. Executive Deferred Compensation Plan or the
                  JLG Industries, Inc. Directors' Deferred Compensation Plan
                  (each a "Deferred Compensation Plan") may elect to surrender
                  Equity Awards prior to vesting and/or to forgo receipt of
                  Shares upon exercise of Options and to receive in lieu thereof
                  an equivalent number of Company Stock Units under the
                  applicable Deferred Compensation Plan, subject to the terms
                  and conditions prescribed from time to time in such Deferred
                  Compensation Plan.

21.      SHAREHOLDER RIGHTS

         No person shall have any rights of a shareholder by virtue of an Option
         or Right except with respect to Shares actually issued to him, and the
         issuance of Shares shall confer no retroactive right to dividends.

                                      -23-

<PAGE>
22.      ADJUSTMENT FOR CHANGES IN CAPITALIZATION

         (a)      Subject to the provisions of Section 23 hereof, in the event
                  that there is any change in the Shares through merger,
                  consolidation, reorganization, recapitalization or otherwise;
                  or if there shall be any dividend on the Shares, payable in
                  Shares; or if there shall be a stock split or a combination of
                  Shares, the aggregate number of shares available for Awards,
                  the number of Shares subject to outstanding Awards, and the
                  Option price per Share of each out standing Option may be
                  proportionately adjusted by the Board of Directors as it deems
                  equitable in its absolute discretion to prevent dilution or
                  enlargement of the rights of the Grantees; provided that any
                  fractional Shares resulting from such adjustments shall be
                  eliminated.

         (b)      Subject to the provisions of Section 23 hereof, any Shares to
                  which a Grantee shall become entitled as a result of a stock
                  dividend on Restricted Shares, or as a result of a stock
                  split, combination of Shares, merger, consolidation,
                  reorganization, recapitalization or other event affecting
                  Restricted Shares, shall have the same status, be subject to
                  the same restrictions, and bear the same legend (if any) as
                  the Shares with respect to which they were issued, except as
                  may be otherwise provided by the Board of Directors.

         (c)      The Board's determination with respect to any such adjustments
                  shall be conclusive.

23.      EFFECTS OF MERGER OR OTHER REORGANIZATION

         If the Company shall be the surviving corporation in a merger or other
         reorganization, Awards shall extend to stock and securities of the
         Company after the merger or other reorganization to the same extent
         that a person who held, immediately before the merger or
         reorganization, the number of Shares corresponding to the number of
         Shares covered by the Award would be entitled to have or obtain stock
         and securities of the Company under the terms of the merger or
         reorganization.

24.      TERMINATION, SUSPENSION, OR MODIFICATION OF PLAN

         The Board of Directors may at any time terminate, suspend, or modify
         the Plan, except that the Board shall not, without approval by the
         affirmative votes of the holders of a majority of the securities of the
         Company present, or represented, and entitled to vote, at a meeting
         duly held in accordance with applicable law, change (other than through
         adjustment for changes in capitalization as provided in Section 22
         hereof) (a) the aggregate number of Shares for which Awards may be
         granted; (b) the class of persons eligible for Awards; (c) the minimum
         Option price, applicable to Options or Rights, that is provided for
         under the terms of the Plan; (d) the maximum duration of the Plan; (e)
         the Shares with respect to which Awards are granted; or (f) the
         granting corporation for purposes of Awards under the Plan. In
         addition, the Board shall seek shareholder approval for any "material
         revision" of the Plan as defined in Section 303A(8) of the New York
         Stock Exchange Listed Company Manual, or any successor provision. No

                                      -24-

<PAGE>

         termination, suspension or modification of the Plan shall adversely
         affect any right acquired by any Grantee, or by any Beneficiary, under
         the terms of any Award granted before the date of such termination,
         suspension or modification, unless such Grantee or Beneficiary shall
         expressly consent; but it shall be conclusively presumed that any
         adjustment pursuant to Section 22 hereof does not adversely affect any
         such right.

25.      APPLICATION OF PROCEEDS

         The proceeds received by the Company from the sale of Shares (including
         Restricted Shares) under the Plan shall be used for general corporate
         purposes.

26.      GENERAL PROVISIONS

         The grant of an Award in any year shall not give the Grantee any right
         to similar grants in future years or any right to be retained in the
         employ or on the Board of the Company or its Subsidiaries.

27.      GOVERNING LAW

         The Plan shall be construed and its provisions enforced and
         administered in accordance with the laws of the Commonwealth of
         Pennsylvania except to the extent that such laws may be superseded by
         any Federal law.

                                      -25-

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