Document:

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                                                                    EXHIBIT 10.2

                       EMPLOYMENT AND SEVERANCE AGREEMENT

         This Employment and Severance Agreement (the "Agreement") entered into
this First day of June, 2002, by and between AGCO CORPORATION, a Delaware
corporation (the "Company"), and Andrew H. Beck (the "Executive"),

                                   WITNESSETH:

     In consideration of the mutual covenants and agreements hereinafter set
forth, the Company and the Executive do hereby agree as follows:

         1.       EMPLOYMENT.

                  (a)      The Company hereby employs the Executive and the
Executive hereby agrees to serve the Company on the terms and conditions set
forth herein.

                  (b)      The employment term shall commence on June 1, 2002
and shall continue in effect until terminated in accordance with Section 5 or
any other provision of the Agreement.

         2.       POSITION AND DUTIES.

                  The Executive shall serve as an Executive Officer of the
Company and shall perform such duties and responsibilities as may from time to
time be prescribed by the Company's board of directors (the "Board"), provided
that such duties and responsibilities are consistent with the Executive's
position. The Executive shall perform and discharge faithfully, diligently and
to the best of his/her ability such duties and responsibilities and shall devote
all of his/her working time and efforts to the business and affairs of the
Company and its affiliates.

         3.       COMPENSATION.

                  (a)      BASE SALARY. The Company shall pay to the Executive
an annual base salary ("Base Salary") of One Hundred Ninety Four Thousand Three
Hundred Eighteen Dollars ($194,318), payable in equal semi-monthly installments
throughout the term of such employment subject to Section 5 hereof and subject
to applicable tax and payroll deductions. The Company shall consider increases
in the Executive's Base Salary annually, and any such increase in salary
implemented by the Company shall become the Executive's Base Salary for purposes
of this Agreement.

                  (b)      INCENTIVE COMPENSATION. Provided Executive has duly
performed his/her obligations pursuant to this Agreement, the Executive shall be
entitled to participate in or receive benefits under the Management Incentive
Compensation Plan implemented by the Company.

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                  (c)      OTHER BENEFITS. During the term of this Agreement,
the Executive shall be entitled to participate in the long term incentive plan
implemented by the Company and any employee benefit plans and arrangements which
are available to senior executive officers of the Company, including, without
limitation, group health and life insurance, pension and savings and the Senior
Management Employment Policy.

                  (d)      FRINGE BENEFITS. The Company shall pay or reimburse
Executive for all reasonable and necessary expenses incurred by him/her in
connection with his/her duties hereunder, upon submission by Executive to the
Company of such written evidence of such expense as the Company may require.
Throughout the term of this Agreement, the Company will provide Executive with
the use of a vehicle for purposes within the scope of his/her employment and
shall pay all expenses for fuel, maintenance and insurance in connection with
such use of the automobile. The Company further agrees that Executive shall be
entitled to four (4) weeks of vacation in any year of the term of employment
hereunder. Nothing paid to the Executive under any such Company plans or
arrangements shall be deemed to be in lieu of compensation to the Executive
hereunder.

         4.       NON-DISCLOSURE, NON-COMPETITION AND NON-SOLICITATION
                  COVENANTS.

                  (a)      ACKNOWLEDGEMENTS. The Executive acknowledges that as
an Executive Officer of the Company (i) he/she frequently will be exposed to
certain "Trade Secrets" and "Confidential Information" of the Company (as those
terms are defined in Subsection 4(b)), (ii) his/her responsibilities on behalf
of the Company will extend to all geographical areas where the Company is doing
business, and (iii) any competitive activity on his/her part during the term of
his employment and for a reasonable period thereafter would necessarily involve
his/her use of the Company's Trade Secrets and Confidential Information and,
therefore, would unfairly threaten the Company's legitimate business interests,
including its substantial investment in the proprietary aspects of its business
and the goodwill associated with its customer base. Moreover, the Executive
acknowledges that, in the event of the termination of his/her employment with
the Company, he/she would have sufficient skills to find alternative,
commensurate work in his/her field of expertise that would not involve a
violation of any of the provisions of this Section 4. Therefore, the Executive
acknowledges and agrees that it is reasonable for the Company to require him/her
to abide by the covenants set forth in this Section 4. The parties acknowledge
and agree that if the nature of the Executive's responsibilities for or on
behalf of the Company and the geographical areas in which the Executive must
fulfill them materially change, the parties will execute appropriate amendments
to the scope of the covenants in this Section 4.

                  (b)      DEFINITIONS. For purposes of this Section 4, the
following terms shall have the following meanings:

                           (i)      "COMPETITIVE POSITION" shall mean (i) the
Executive's direct or indirect equity ownership (excluding equity ownership of
less than one percent (1%) or

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control of all or any portion of a Competitor, or (ii) any employment,
consulting, partnership, advisory, directorship, agency, promotional or
independent contractor arrangement between the Executive and any Competitor
whereby the Executive is required to perform executive level services
substantially similar to those that he will perform for the Company as an
Executive Officer.

                           (ii)     "COMPETITOR" of the Company shall refer to
any person or entity engaged, wholly or partly, in the business of manufacturing
and distributing farm equipment machinery and replacement parts.

                           (iii)    "CONFIDENTIAL INFORMATION" shall mean the
proprietary and confidential data or information of the Company, other than
"Trade Secrets" (as defined below), which is of tangible or intangible value to
the Company and is not public information or is not generally known or available
to the Company's competitors.

                           (iv)     "TRADE SECRETS" shall mean information of
the Company, including, but not limited to, technical or non-technical data,
formulas, patterns, compilations, programs, devices, methods, techniques,
drawings, processes, financial data, financial plans, products plans, or lists
of actual or potential customers or suppliers, which: (a) derives economic
value, actual or potential, from not being generally known to, and not being
readily ascertainable by proper means by, other persons who can obtain economic
value from its disclosure or use; and (b) is the subject of efforts that are
reasonable under the circumstances to maintain its secrecy.

                           (v)      "WORK PRODUCT" shall mean all work product,
property, data, documentation, "know-how", concepts or plans, inventions,
improvements, techniques, processes or information of any kind, relating to the
Company and its business prepared, conceived, discovered, developed or created
by the Executive for the Company or any of the Company's customers.

                  (c)      NONDISCLOSURE; OWNERSHIP OF PROPRIETARY PROPERTY.

                           (i)      The Executive hereby covenants and agrees
that: (i) with regard to information constituting a Trade Secret, at all times
during the Executive's employment with the Company and all times thereafter
during which such information continues to constitute a Trade Secret; and (ii)
with regard to any Confidential Information, at all times during the Executive's
employment with the Company and for three (3) years after the termination of the
Executive's employment with the Company, the Executive shall regard and treat
all information constituting a Trade Secret or Confidential Information as
strictly confidential and wholly owned by the Company and will not, for any
reason in any fashion, either directly or indirectly, use, sell, lend, lease,
distribute, license, give, transfer, assign, show, disclose, disseminate,
reproduce, copy, appropriate or otherwise communicate any such information to
any party for any purpose other than strictly in accordance with the express
terms of this Agreement and other than as may be required by law.

                                      -3-

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                           (ii)     To the greatest extent possible, any Work
Product shall be deemed to be "work made for hire" (as defined in the Copyright
Act, 17 U.S.C.A. ss. 101 et seq., as amended) and owned exclusively by the
Company. The Executive hereby unconditionally and irrevocably transfers and
assigns to the Company all rights, title and interest the Executive may
currently have or in the future may have by operation of law or otherwise in or
to any Work Product, including, without limitation, all patents, copyrights,
trademarks, service marks and other intellectual property rights. The Executive
agrees to execute and deliver to the Company any transfers, assignments,
documents or other instruments which the Company may deem necessary or
appropriate to vest complete title and ownership of any Work Product, and all
rights therein, exclusively in the Company.

                           (iii)    The Executive shall immediately notify the
Company of any intended or unintended, unauthorized disclosure or use of any
Trade Secrets or Confidential Information by the Executive or any other person
of which the Executive becomes aware. In addition to complying with the
provisions of Section 4(c) (i) and 4 (c) (ii), the Executive shall exercise his
best efforts to assist the Company, to the extent the Company deems reasonably
necessary, in the procurement of any protection of the Company's rights to or in
any of the Trade Secrets or Confidential Information.

                           (iv)     Immediately upon termination of the
Executive's employment with the Company, or at any point prior to or after that
time upon the specific request of the Company, the Executive shall return to the
Company all written or descriptive materials of any kind in the Executive's
possession or to which the Executive has access that constitute or contain any
Confidential Information or Trade Secrets, and the confidentiality obligations
of this Agreement shall continue until their expiration under the terms of this
Agreement.

                  (d)      NON-COMPETITION. The Executive agrees that during
his/her employment, he/she will not, either directly or indirectly, alone or in
conjunction with any other party, (i) accept or enter into a Competitive
Position with a Competitor of the Company, or (ii) take any action in
furtherance of or in conjunction with a Competitive Position with a Competitor
of the Company. The Executive agrees that for two (2) years after any
termination of his employment with the Company, he/she will not, in the
"Restricted Territory" (as defined in the next sentence), either directly or
indirectly, alone or in conjunction with any other party, (A) accept or enter
into a Competitive Position with a Competitor of the Company, or (B) take any
action in furtherance of or in conjunction with a Competitive Position with a
Competitor of the Company. For purposes of this Section 4, "Restricted
Territory" shall refer to all geographical areas comprised within the fifty
United States of America, Western Europe, Brazil and Canada. The Executive and
the Company each acknowledge that the scope of the Restricted Territory is
reasonable because (1) the Company is conducting substantial business in all
fifty states (as well as several foreign countries), (2) the Executive occupies
one of the top executive positions with the Company, and (3) the Executive will
be carrying out his employment responsibilities in all locations where the
Company is doing business.

                  (e)      NON-SOLICITATION OF CUSTOMERS. The Executive agrees
that during the term of his/her employment, he/she will not, either directly or
indirectly, along or in

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conjunction with any other party, solicit, divert or appropriate or attempt to
solicit, divert or appropriate any customer or actively sought prospective
customer of the Company for or on behalf of any Competitor of the Company. The
Executive agrees that for two (2) years after any termination of his employment
with the Company, he/she will not, in the Restricted Territory, either directly
or indirectly, alone or in conjunction with any other party, for or on behalf of
a Competitor of the Company, solicit, divert or appropriate or attempt to
solicit, divert or appropriate any customer or actively sought prospective
customer of the Company with whom he had substantial contact during a period of
time of up to, but no longer than, eighteen (18) months prior to any termination
of his/her employment with the Company.

                  (f)      NON-SOLICITATION OF COMPANY PERSONNEL. The Executive
agrees that, except to the extent that he/she is required to do so in connection
with his/her express employment responsibilities on behalf of the Company,
during the term of his/her employment he/she will not, either directly or
indirectly, alone or in conjunction with any other party, solicit or attempt to
solicit any employee, consultant, contractor or other personnel of the Company
to terminate, alter or lessen that party's affiliation with the Company or to
violate the terms of any agreement or understanding between such employee,
consultant, contractor or other person and the Company. The Executive agrees
that for two (2) years after any termination of his/her employment with the
Company, and in the Restricted Territory, he/she will not, either directly or
indirectly, alone or in conjunction with any other party, solicit or attempt to
solicit any "material" or "key" (as those terms are defined in the next
sentence) employee, consultant, contractor or other personnel of the Company to
terminate, alter or lessen that party's affiliation with the Company or to
violate the terms of any agreement or understanding between such employee,
consultant, contractor or other person and the Company. For purposes of the
preceding sentence, "material" or "key" employees, consultants, contractors or
other personnel of the Company are those who have access to the Company's Trade
Secrets and Confidential Information and whose position or affiliation with the
Company is significant.

                  (g)      REMEDIES. Executive agrees that damages at law for
the Executive's violation of any of the covenants in this Section 4 would not be
an adequate or proper remedy and that should the Executive violate or threaten
to violate any of the provisions of such covenants, the Company or its
successors or assigns shall be entitled to obtain a temporary or permanent
injunction against Executive in any court having jurisdiction prohibiting any
further violation of any such covenants, in addition to any award or damages,
compensatory, exemplary or otherwise, for such violation, if any.

                  (h)      PARTIAL ENFORCEMENT. The Company has attempted to
limit the rights of the Executive to compete only to the extent necessary to
protect the Company from unfair competition. The Company, however, agrees that,
if the scope of enforceability of these restrictive covenants is in any way
disputed at any time, a court or other trier of fact may modify and enforce the
covenant to the extent that it believes to be reasonable under the circumstances
existing at the time.

         5.       TERMINATION.

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                  (a)      DEATH. The Executive's employment hereunder shall
terminate upon the death of the Executive, provided, however, that for purposes
of the payment of compensation and benefits to the Executive under this
Agreement the death of the Executive shall be deemed to have occurred ninety
(90) days from the last day of the month in which the death of the Executive
shall have occurred.

                  (b)      INCAPACITY. The Company may terminate the Executive's
employment hereunder at the end of any calendar month by giving written Notice
of Termination to the Executive in the event of the Executive's incapacity due
to physical or mental illness which prevents the proper performance of the
duties of the Executive set forth herein or established pursuant hereto for a
substantial portion of any six (6) month period of the Executive's term of
employment hereunder. Any question as to the existence, extent or potentiality
of illness or incapacity of Executive upon which Company and Executive cannot
agree shall be determined by a qualified independent physician selected by the
Company and approved by Executive (or, if Executive is unable to give such
approval, by any adult member of the immediate family or the duly appointed
guardian of the Executive). The determination of such physician shall be
certified in writing to the Company and to the Executive and shall be final and
conclusive for all purposes of this Agreement.

                  (c)      CAUSE. The Company may terminate the Executive's
employment hereunder for Cause by giving written Notice of Termination to the
Executive. For the purposes of this Agreement, the Company shall have "Cause" to
terminate the Executive's employment hereunder upon: (i) the Executive's
habitual drunkenness or chronic substance abuse; (ii) a willful failure by the
Executive to materially perform and discharge the duties and responsibilities of
the Executive hereunder; (iii) any breach by the Executive of the provisions of
Section 4 hereof; (iv) any misconduct by the Executive that is materially
injurious to the Company; or (v) a conviction of a felony involving the personal
dishonesty or moral turpitude of the Executive.

                  (d)      WITHOUT CAUSE; GOOD REASON.

                  (i)      The Company may terminate the Executive's employment
hereunder without Cause, by giving written Notice of termination to the
Executive.

                  (ii)     The Executive may terminate his employment hereunder,
by giving written Notice of Termination to the Company. For the purposes of this
Agreement, the Executive shall have "Good Reason" to terminate his employment
hereunder upon (and without the written consent of the Executive) (a) a
reduction in the Executive's base salary or benefits received from the Company,
other than in connection with an across-the-board reduction in salaries and/or
benefits for similarly situated employees of the Company or pursuant to the
Company's standard retirement policy; or (b) the relocation of the Executive's
full-time office to a location greater than fifty (50) miles from the Company's
current corporate office; or (c) a material breach by the Company of this
Agreement.

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                  (e)      NOTICE OF TERMINATION. Any termination by the Company
pursuant to the Subsections (b), (c) or (d)(i) above or by the Executive
pursuant to Subsection (d)(ii) above, shall be communicated by written Notice of
Termination from the party issuing such notice to the other party hereto. For
purposes of this Agreement, a "Notice of Termination" shall mean a notice which
shall indicate the specific termination provision of this Agreement relied upon
and shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for such termination. A date of termination specified in the
Notice of Termination shall not be dated earlier than ninety (90) days from the
date such Notice is delivered or mailed to the applicable party.

                  (f)      OBLIGATION TO PAY. Except upon voluntary termination
by the Executive without Good Reason and subject to Section 6 below, the Company
shall pay the compensation specified in this Subsection 5(f) to the Executive
for the period specified in this Subsection 5(f). The Company also will continue
insurance benefits during the remainder of the applicable period, including the
Severance Period set forth in this Subsection 5(f). If the Executive's
employment shall be terminated by reason of death, the estate of the Executive
shall be paid all sums otherwise payable to the Executive through the end of the
third month after the month in which the death of the Executive occurred and all
bonus or other incentive benefits accrued or accruable to the Executive through
the end of the month in which the death of the Executive occurred and the
Company shall have no further obligations to the Executive under this Agreement.
If the Executive's employment is terminated by reason of incapacity, the
Executive or the person charged with legal responsibility for the Executive's
estate shall be paid all sums otherwise payable to the Executive, including the
bonus and other benefits accrued or accruable to the Executive, through the date
of termination specified in the Notice of Termination, and the Company shall
have no further obligations to the Executive under this Agreement. If the
Executive's employment shall be terminated for Cause, the Company shall pay the
Executive his Base Salary through the date of termination specified in the
Notice of Termination and the Company shall have no further obligations to the
Executive under this Agreement. If the Executive's employment shall be
terminated by the Company, without cause, or by the Executive for Good Reason,
the Company shall (x) continue to pay the Executive the Base Salary (at the rate
in effect on the date of such termination) for a period of two (2) years
beginning as of the date of such termination (such two (2) year period being
referred to hereinafter as the "Severance Period") at such intervals as the same
would have been paid had the Executive remained in the active service of the
Company, and (y) pay the Executive a pro rata portion of the bonus or other
incentive benefits to which the Executive would have been entitled for the year
of termination, had the Executive remained employed for the entire year, which
incentive compensation shall be payable at the time incentive compensation is
payable generally under the applicable incentive plans. The executive shall have
no further right to receive any other compensation benefits or perquisites after
the date of termination of employment except as determined under the terms of
the employee benefit plans or programs of the Company or under applicable law.

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         6.       CONDITIONS APPLICABLE TO SEVERANCE PERIOD; MITIGATION OF
                  DAMAGES

                  (a)      If during the Severance Period, the Executive
breaches his obligations under Section 4 above, the Company may, upon written
notice to the Executive, terminate the Severance Period and cease to make any
further payments or provide any benefits described in Subsection 5(f).

                  (b)      Although the Executive shall not be required to
mitigate the amount of any payment provided for in Subsection 5(f) by seeking
other employment, any such payments shall be reduced by any amounts which the
Executive receives or is entitled to receive from another employer with respect
to the Severance Period. The Executive shall promptly notify the Company in
writing in the event that other employment is obtained during the Severance
Period.

         7.       NOTICES. For the purpose of this Agreement, notices and all
other communications to either party hereunder provided for in the Agreement
shall be in writing and shall be deemed to have been duly given when delivered
in person or mailed by certified first-class mail, postage prepaid, addressed:

                  in the case of the Company to:

                           AGCO Corporation
                           4205 River Green Parkway
                           Duluth, Georgia 30096
                           Attention: R.J. Ratliff

                  in the case of the Executive to:

                  --------------------------------

                  --------------------------------

                  --------------------------------

                  --------------------------------

or to such other address as either party shall designate by giving written
notice of such change to the other party.

         8.       ARBITRATION. Any claim, controversy, or dispute arising
between the parties with respect to this Agreement, to the maximum extent
allowed by applicable law, shall be submitted to and resolved by binding
arbitration. The arbitration shall be conducted pursuant to the terms of the
Federal Arbitration Act and (except as otherwise specified herein) the
Commercial Arbitration Rules of the American Arbitration Association in effect
at the time the arbitration is commenced. The venue for the arbitration shall be
the Atlanta, Georgia offices of the American Arbitration Association. Either
party may notify the other party at any time of the existence of an arbitrable
controversy by delivery in person or by certified mail of a Notice of Arbitrable
Controversy. Upon receipt of such a Notice, the parties shall attempt in good
faith to

                                      -8-

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resolve their differences within fifteen (15) days after the receipt of such
Notice. Notice to the Company and the Executive shall be sent to the addresses
specified in Section 7 above. If the dispute cannot be resolved within the
fifteen (15) day period, either party may file a written Demand for Arbitration
with the American Arbitration Association's Atlanta, Georgia Regional Office,
and shall send a copy of the Demand for Arbitration to the other party. The
arbitration shall be conducted before a panel of three (3) arbitrators. The
arbitrators shall be selected as follows: (a) The party filing the Demand for
Arbitration shall simultaneously specify his or its arbitrator, giving the name,
address and telephone number of said arbitrator; (b) The party receiving such
notice shall notify the party demanding the arbitration of his or its
arbitrator, giving the name, address and telephone number of the arbitrator
within five (5) days of the receipt of such Demand for Arbitration; (c) A
neutral person shall be selected through the American Arbitration Association's
arbitrator selection procedures to serve as the third arbitrator. The arbitrator
designated by any party need not be neutral. In the event that any person fails
or refuses timely to name his arbitrator within the time specified in this
Section 8, the American Arbitration Association shall (immediately upon notice
from the other party) appoint an arbitrator. The arbitrators thus constituted
shall promptly meet, select a chairperson, fix the time, date(s), and place of
the hearing, and notify the parties. To the extent practical, the arbitrators
shall schedule the hearing to commence within sixty (60) days after the
arbitrators have been impaneled. A majority of the panel shall render an award
within ten (10) days of the completion of the hearing, which award may include
an award of interest, legal fees and costs of arbitration. The panel of
arbitrators shall promptly transmit an executed copy of the award to the
respective parties. The award of the arbitrators shall be final, binding and
conclusive upon the parties hereto. Each party shall have the right to have the
award enforced by any court of competent jurisdiction.

Executive initials:__________                        Company initials:__________

         9.       NO WAIVER. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is approved
by the Board and agreed to in a writing signed by the Executive and such officer
as may be specifically authorized by the Board. No waiver by either party hereto
at any time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of any other provisions or conditions of this Agreement
at the same or at any prior or subsequent time.

         10.      SUCCESSORS AND ASSIGNS. The rights and obligations of the
Company under this Agreement shall inure to the benefit of and be binding upon
the successors and assigns of the Company and the Executive's rights under this
Agreement shall inure to the benefit of and be binding upon his heirs and
executors. Neither this Agreement or any rights or obligations of the Executive
herein shall be transferable or assignable by the Executive.

         11.      VALIDITY. The invalidity or unenforceability of any provision
or provisions of this Agreement shall not affect the validity or enforceability
of any other provisions of this

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Agreement, which shall remain in full force and effect. The parties intend for
each of the covenants contained in Section 4 to be severable from one another.

         12.      SURVIVAL. The provisions of Section 4 hereof shall survive the
termination of Executive's employment and shall be binding upon the Executive's
personal or legal representative, executors, administrators, successors, heirs,
distributee, devisees and legatees and the provisions of Section 5 hereof
relating to payments and termination of the Executive's employment hereunder
shall survive such termination and shall be binding upon the Company.

         13.      COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

         14.      ENTIRE AGREEMENT. This Agreement constitutes the full
agreement and understanding of the parties hereto with respect to the subject
matter hereof and all prior or contemporaneous agreements or understandings are
merged herein. The parties to this Agreement each acknowledge that both of them
and their respective agents and advisors were active in the negotiation and
drafting of the terms of this Agreement.

         15.      GOVERNING LAW. The validity, construction and enforcement of
this Agreement, and the determination of the rights and duties of the parties
hereto, shall be governed by the laws of the State of Georgia.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement.

                                       AGCO CORPORATION

                                       By:
                                          --------------------------------------

                                       Name:
                                            ------------------------------------

                                       Title:
                                             -----------------------------------

                                       EXECUTIVE OFFICER

                                       -----------------------------------------

                                      -10-<PAGE>
                                                                    EXHIBIT 10.1

                           CTI MOLECULAR IMAGING, INC.
                          2002 LONG-TERM INCENTIVE PLAN

<PAGE>

                           CTI MOLECULAR IMAGING, INC.
                          2002 LONG-TERM INCENTIVE PLAN

                                TABLE OF CONTENTS

<TABLE>
         <S>                                                                                     <C>
         ARTICLE 1  PURPOSE......................................................................1

                  1.1      General...............................................................1

         ARTICLE 2  DEFINITIONS..................................................................1

                  2.1      Definitions...........................................................1

         ARTICLE 3  EFFECTIVE DATE...............................................................7

                  3.1      Effective Date........................................................7

         ARTICLE 4  ADMINISTRATION...............................................................8

                  4.1      Committee.............................................................8

                  4.2      Actions and Interpretations by the Committee..........................8

                  4.3      Authority of Committee................................................8

                  4.4      Award Certificates....................................................10

         ARTICLE 5  SHARES SUBJECT TO THE PLAN...................................................10

                  5.1      Number of Shares......................................................10

                  5.2      Lapsed Awards.........................................................10

                  5.3      Stock Distributed.....................................................10

                  5.4      Limitation on Awards..................................................10

         ARTICLE 6  ELIGIBILITY..................................................................11

                  6.1      General...............................................................11

         ARTICLE 7  STOCK OPTIONS................................................................11

                  7.1      General...............................................................11

                  7.2      Incentive Stock Options...............................................12

         ARTICLE 8  STOCK APPRECIATION RIGHTS....................................................13

                  8.1      Grant of Stock Appreciation Rights....................................13

         ARTICLE 9  PERFORMANCE AWARDS...........................................................14

                  9.1      Grant of Performance Awards...........................................14

                  9.2      Performance Goals.....................................................14

                  9.3      Right to Payment......................................................15
</TABLE>
<PAGE>

<TABLE>
         <S>                                                                                     <C>
                  9.4      Other Terms...........................................................15

         ARTICLE 10  RESTRICTED STOCK AWARDS.....................................................15

                  10.1     Grant of Restricted Stock.............................................15

                  10.2     Issuance and Restrictions.............................................15

                  10.3     Forfeiture............................................................16

                  10.4     Certificates for Restricted Stock.....................................16

         ARTICLE 11  DIVIDEND EQUIVALENTS........................................................16

                  11.1     Grant of Dividend Equivalents.........................................16

         ARTICLE 12  STOCK OR OTHER STOCK-BASED AWARDS...........................................16

                  12.1     Grant of Stock or Other Stock-Based Awards............................16

         ARTICLE 13  PROVISIONS APPLICABLE TO AWARDS.............................................17

                  13.1     Stand-Alone, Tandem, and Substitute Awards............................17

                  13.2     Term of Awards........................................................17

                  13.3     Form of Payment of Awards.............................................17

                  13.4     Limits on Transfer....................................................17

                  13.5     Beneficiaries.........................................................17

                  13.6     Stock Certificates....................................................18

                  13.7     Acceleration upon Death or Disability.................................18

                  13.8     Acceleration upon a Change of Control.................................18

                  13.9     Acceleration for Other Reasons........................................18

                  13.10    Effect of Acceleration................................................18

                  13.11    Qualified Performance-Based Awards....................................19

                  13.12    Termination of Employment.............................................20

                  13.13    Loans or Guarantees...................................................20

         ARTICLE 14  CHANGES IN CAPITAL STRUCTURE................................................21

                  14.1     General...............................................................21

         ARTICLE 15  AMENDMENT, MODIFICATION AND TERMINATION.....................................21

                  15.1     Amendment, Modification and Termination...............................21

                  15.2     Awards Previously Granted.............................................22

         ARTICLE 16  GENERAL PROVISIONS..........................................................22

                  16.1     No Rights to Awards; Non-Uniform Determinations.......................22

                  16.2     No Stockholder Rights.................................................22
</TABLE>

                                      -2-
<PAGE>
<TABLE>
                  <S>                                                                            <C>

                  16.3     Withholding...........................................................22

                  16.4     No Right to Continued Service.........................................23

                  16.5     Unfunded Status of Awards.............................................23

                  16.6     Indemnification.......................................................23

                  16.7     Relationship to Other Benefits........................................23

                  16.8     Expenses..............................................................23

                  16.9     Titles and Headings...................................................23

                  16.10    Gender and Number.....................................................24

                  16.11    Fractional Shares.....................................................24

                  16.12    Government and Other Regulations......................................24

                  16.13    Governing Law.........................................................24

                  16.14    Additional Provisions.................................................25

                  16.15    No Limitations on Rights of Company...................................25

                  16.16    Code Section 162(m)...................................................25
</TABLE>

                                      -3-

<PAGE>
                          CTI MOLECULAR IMAGING, INC.
                         2002 LONG-TERM INCENTIVE PLAN

                                   ARTICLE 1
                                    PURPOSE

         1.1      GENERAL. The purpose of the CTI Molecular Imaging, Inc. 2002
Long-Term Incentive Plan (the "Plan") is to promote the success, and enhance the
value, of CTI Molecular Imaging, Inc. (the "Company"), by linking the personal
interests of employees, officers, and directors and consultants of the Company
or any Affiliate (as defined below) to those of Company stockholders and by
providing such persons with an incentive for outstanding performance. The Plan
is further intended to provide flexibility to the Company in its ability to
motivate, attract, and retain the services of employees, officers, directors and
consultants upon whose judgment, interest, and special effort the successful
conduct of the Company's operation is largely dependent. Accordingly, the Plan
permits the grant of incentive awards from time to time to selected employees,
officers, directors and consultants of the Company and its Affiliates.

                                   ARTICLE 2
                                  DEFINITIONS

         2.1      DEFINITIONS. When a word or phrase appears in this Plan with
the initial letter capitalized, and the word or phrase does not commence a
sentence, the word or phrase shall generally be given the meaning ascribed to it
in this Section or in Section 1.1 unless a clearly different meaning is required
by the context. The following words and phrases shall have the following
meanings:

                  (a)      "Affiliate" means (i) any Subsidiary or Parent, or
         (ii) an entity that directly or through one or more intermediaries
         controls, is controlled by or is under common control with, the
         Company, as determined by the Committee.

                  (b       "Award" means any Option, Stock Appreciation Right,
         Restricted Stock Award, Performance Award, Dividend Equivalent Award,
         or Other Stock-Based Award, or any other right or interest relating to
         Stock or cash, granted to a Participant under the Plan.

                  (c)      "Award Certificate" means a written document, in such
         form as the Committee prescribes from time to time, setting forth the
         terms and conditions of an Award.

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

                  (e)      "Cause" as a reason for a Participant's termination
         of employment shall have the meaning assigned such term in the
         employment agreement, if any,

<PAGE>

         between such Participant and the Company or an affiliated company,
         provided, however that if there is no such employment agreement in
         which such term is defined, "Cause" shall mean any of the following
         acts by the Participant, as determined by the Board: gross neglect of
         duty, prolonged absence from duty without the consent of the Company,
         intentionally engaging in any activity that is in conflict with or
         adverse to the business or other interests of the Company, or willful
         misconduct, misfeasance or malfeasance of duty which is reasonably
         determined to be detrimental to the Company.

                  (f)      "Change of Control" means and includes the occurrence
         of any one of the following events but shall specifically exclude a
         Public Offering:

                           (i)      individuals who, on the Effective Date,
                  constitute the Board of Directors of the Company (the
                  "Incumbent Directors") cease for any reason to constitute at
                  least a majority of such Board, provided that any person
                  becoming a director after the Effective Date and whose
                  election or nomination for election was approved by a vote of
                  at least a majority of the Incumbent Directors then on the
                  Board shall be an Incumbent Director; provided, however, that
                  no individual initially elected or nominated as a director of
                  the Company as a result of an actual or threatened election
                  contest with respect to the election or removal of directors
                  ("Election Contest") or other actual or threatened
                  solicitation of proxies or consents by or on behalf of any
                  "person" (such term for purposes of this definition being as
                  defined in Section 3(a)(9) of the Exchange Act and as used in
                  Section 13(d)(3) and 14(d)(2) of the Exchange Act) other than
                  the Board ("Proxy Contest"), including by reason of any
                  agreement intended to avoid or settle any Election Contest or
                  Proxy Contest, shall be deemed an Incumbent Director; or

                           (ii)     any person is or becomes a "beneficial
                  owner" (as defined in Rule 13d-3 under the Exchange Act),
                  directly or indirectly, of either (A) 35% or more of the
                  then-outstanding shares of common stock of the Company
                  ("Company Common Stock") or (B) securities of the Company
                  representing 35% or more of the combined voting power of the
                  Company's then outstanding securities eligible to vote for the
                  election of directors (the "Company Voting Securities");
                  provided, however, that for purposes of this subsection (ii),
                  the following acquisitions shall not constitute a Change of
                  Control: (w) an acquisition directly from the Company, (x) an
                  acquisition by the Company or a Subsidiary of the Company, (y)
                  an acquisition by any employee benefit plan (or related trust)
                  sponsored or maintained by the Company or any Subsidiary of
                  the Company, or (z) an acquisition pursuant to a
                  Non-Qualifying Transaction (as defined in subsection (iii)
                  below); or

                           (iii)    the consummation of a reorganization,
                  merger, consolidation, statutory share exchange or similar
                  form of corporate

                                      -2-
<PAGE>
                  transaction involving the Company or a Subsidiary (a
                  "Reorganization"), or the sale or other disposition of all or
                  substantially all of the Company's assets (a "Sale") or the
                  acquisition of assets or stock of another corporation (an
                  "Acquisition"), unless immediately following such
                  Reorganization, Sale or Acquisition: (A) all or substantially
                  all of the individuals and entities who were the beneficial
                  owners, respectively, of the outstanding Company Common Stock
                  and outstanding Company Voting Securities immediately prior to
                  such Reorganization, Sale or Acquisition beneficially own,
                  directly or indirectly, more than 50% of, respectively, the
                  then outstanding shares of common stock and the combined
                  voting power of the then outstanding voting securities
                  entitled to vote generally in the election of directors, as
                  the case may be, of the corporation resulting from such
                  Reorganization, Sale or Acquisition (including, without
                  limitation, a corporation which as a result of such
                  transaction owns the Company or all or substantially all of
                  the Company's assets or stock either directly or through one
                  or more subsidiaries, the "Surviving Company") in
                  substantially the same proportions as their ownership,
                  immediately prior to such Reorganization, Sale or Acquisition,
                  of the outstanding Company Common Stock and the outstanding
                  Company Voting Securities, as the case may be, and (B) no
                  person (other than (w) the Company or any Subsidiary of the
                  Company, (x) the Surviving Company or its ultimate parent
                  corporation, (y) any employee benefit plan (or related trust)
                  sponsored or maintained by any of the foregoing, or (z) any
                  person acquiring Company Common Stock or Company Voting
                  Securities, as the case may be, directly from the Company) is
                  the beneficial owner, directly or indirectly, of 35% or more
                  of the total common stock or 35% or more of the total voting
                  power of the outstanding voting securities eligible to elect
                  directors of the Surviving Company, and (C) at least a
                  majority of the members of the board of directors of the
                  Surviving Company were Incumbent Directors at the time of the
                  Board's approval of the execution of the initial agreement
                  providing for such Reorganization, Sale or Acquisition (any
                  Reorganization, Sale or Acquisition which satisfies all of the
                  criteria specified in (A), (B) and (C) above shall be deemed
                  to be a "Non-Qualifying Transaction"); or

                           (iv)     approval by the stockholders of the Company
                  of a complete liquidation or dissolution of the Company.

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

                  (h)      "Committee" means the committee of the Board
         described in Article 4.

                  (i)      "Company" means CTI Molecular Imaging, Inc., its
         successors and assigns.

                                      -3-
<PAGE>

                  (j)      "Continuous Status as a Participant" means the
         absence of any interruption or termination of service as an employee,
         officer, consultant or director of the Company or an Affiliate, as
         applicable. Continuous Status as a Participant shall not be considered
         interrupted in the case of any leave of absence authorized in writing
         by the Company prior to its commencement.

                  (k)      "Covered Employee" means a covered employee as
         defined in Code Section 162(m)(3), provided that no employee shall be a
         Covered Employee until the deduction limitations of Code Section 162(m)
         are applicable to the Company and any reliance period under Code
         Section 162(m) has expired, as described in Section 16.16 hereof.

                  (l)      "Director Option" means an Option granted to a
         Non-Employee Director under the Plan.

                  (m)      "Disability" or "Disabled" has the same meaning as
         provided in the long-term disability plan or policy maintained by the
         Company or if applicable, most recently maintained, by the Company or
         if applicable, an Affiliate, for the Participant, whether or not such
         Participant actually receives disability benefits under such plan or
         policy. If no long-term disability plan or policy was ever maintained
         on behalf of Participant or if the determination of Disability relates
         to an Incentive Stock Option, Disability means Permanent and Total
         Disability as defined in Section 22(e)(3) of the Code. In the event of
         a dispute, the determination whether a Participant is Disabled will be
         made by the Committee and may be supported by the advice of a physician
         competent in the area to which such Disability relates.

                  (n)      "Dividend Equivalent" means a right granted to a
         Participant under Article 11.

                  (o)      "Effective Date" has the meaning assigned such term
         in Section 3.1.

                  (p)      "Eligible Participant" means an employee, officer,
         consultant or director of the Company or any Affiliate. To the extent
         necessary to preserve the employee benefits plan exemption under
         applicable state securities, until such time, if any, as the Company's
         common stock shall be traded on an Exchange, the term "Eligible
         Participant" shall exclude any person who is not an employee of the
         Company or an Affiliate.

                  (q)      "Exchange" means the Nasdaq National Market or any
         national securities exchange on which the Stock may from time to time
         be listed or traded.

                  (r)      "Fair Market Value", on any date, means (i) if the
         Stock is listed on a securities exchange or is traded over the Nasdaq
         National Market, the closing

                                      -4-
<PAGE>
         sales price on such exchange or over such system on such date or, in
         the absence of reported sales on such date, the closing sales price on
         the immediately preceding date on which sales were reported, or (ii) if
         the Stock is not listed on a securities exchange or traded over the
         Nasdaq National Market, the mean between the bid and offered prices as
         quoted by Nasdaq for such date, provided that if it is determined that
         the fair market value is not properly reflected by such Nasdaq
         quotations, Fair Market Value will be determined by such other method
         as the Committee determines in good faith to be reasonable.

                  (s)      "Good Reason" has the meaning assigned such term in
         the employment agreement, if any, between a Participant and the Company
         or an Affiliate, provided, however that if there is no such employment
         agreement in which such term is defined, and unless otherwise defined
         in the applicable Award Certificate, "Good Reason" shall mean any of
         the following acts by the Company or an Affiliate without the consent
         of the Participant (in each case, other than an isolated, insubstantial
         and inadvertent action not taken in bad faith and which is remedied by
         the Company or an Affiliate promptly after receipt of notice thereof
         given by the Participant): (i) the assignment to the Participant of
         duties materially inconsistent with, or a material diminution in, the
         Participant's position, authority, duties or responsibilities as in
         effect on the Grant Date, (ii) a reduction by the Company or an
         Affiliate in the Participant's base salary, (iii) the Company or an
         Affiliate requiring the Participant, without his or her consent, to be
         based at any office or location more than 35 miles from the location at
         which the Participant was stationed immediately prior to a Change of
         Control, or (iv) the material breach by the Company or an Affiliate of
         any employment agreement between the Participant and the Company or an
         Affiliate.

                  (t)      "Grant Date" means the date an Award is made by the
         Committee.

                  (u)      "Incentive Stock Option" means an Option that is
         intended to meet the requirements of Section 422 of the Code or any
         successor provision thereto.

                  (v)      "Non-Employee Director" means a director of the
         Company who is not a common law employee of the Company or any
         Affiliate.

                  (w)      "Non-Qualified Stock Option" means an Option that is
         not an Incentive Stock Option.

                  (x)      "Option" means a right granted to a Participant under
         Article 7 of the Plan to purchase Stock at a specified price during
         specified time periods. An Option may be either an Incentive Stock
         Option or a Non-Qualified Stock Option.

                  (y)      "Other Stock-Based Award" means a right, granted to a
         Participant under Article 12, that relates to or is valued by reference
         to Stock or other Awards relating to Stock.

                                      -5-
<PAGE>

                  (z)      "Parent" means a corporation which owns or
         beneficially owns a majority of the outstanding voting stock or voting
         power of the Company. Notwithstanding the above, with respect to an
         Incentive Stock Option, Parent shall have the meaning set forth in
         Section 424(e) of the Code.

                  (aa)     "Participant" means a person who, as an employee,
         officer, consultant or director of the Company or any Affiliate, has
         been granted an Award under the Plan; provided that in the case of the
         death of a Participant, the term "Participant" refers to a beneficiary
         designated pursuant to Section 13.5 or the legal guardian or other
         legal representative acting in a fiduciary capacity on behalf of the
         Participant under applicable state law and court supervision.

                  (bb)     "Performance Award" means Performance Shares or
         Performance Units granted pursuant to Article 9.

                  (cc)     "Performance Share" means any right granted to a
         Participant under Article 9 to a unit to be valued by reference to a
         designated number of Shares to be paid upon achievement of such
         performance goals as the Committee establishes with regard to such
         Performance Share.

                  (dd)     "Performance Unit" means a right granted to a
         Participant under Article 9 to a unit valued by reference to a
         designated amount of cash or property other than Shares to be paid to
         the Participant upon achievement of such performance goals as the
         Committee establishes with regard to such Performance Unit.

                  (ee)     "Plan" means the CTI Molecular Imaging, Inc. 2002
         Long-Term Incentive Plan, as amended from time to time.

                  (ff)     "Public Offering" shall occur on the effective time
         and date of a registration statement filed by the Company under the
         1933 Act, for a public offering of any class or series of the Company's
         equity securities.

                  (gg)     "Qualified Performance-Based Award" means (i) a
         Performance Award, Restricted Stock Award or Other Stock-Based Award
         that is intended to qualify for the Section 162(m) Exemption and is
         made subject to performance goals based on Qualified Performance
         Criteria as set forth in Section 13.11, or (ii) an Option or Stock
         Appreciation Right having an exercise price equal to or greater than
         the Fair Market Value of the underlying Stock as of the Grant Date.

                  (hh)     "Qualified Performance Criteria" means one or more of
         the performance criteria listed in Section 13.11(b) upon which
         performance goals for certain Qualified Performance-Based Awards may be
         established by the Committee.

                                      -6-
<PAGE>
                  (ii)     "Restricted Stock Award" means Stock granted to a
         Participant under Article 10 that is subject to certain restrictions
         and to risk of forfeiture.

                  (jj)     "Section 162(m) Exemption" means the exemption from
         the limitation on deductibility imposed by Section 162(m) of the Code
         that is set forth in Section 162(m)(4)(C) of the Code or any successor
         provision thereto.

                  (kk)     "Shares" means shares of the Company's Stock. If
         there has been an adjustment or substitution pursuant to Section 14.1,
         the term "Shares" shall also include any shares of stock or other
         securities that are substituted for Shares or into which Shares are
         adjusted pursuant to Section 14.1.

                  (ll)     "Stock" means the $0.01 par value common stock of the
         Company and such other securities of the Company as may be substituted
         for Stock pursuant to Article 14.

                  (mm)     "Stock Appreciation Right" or "SAR" means a right
         granted to a Participant under Article 8 to receive a payment equal to
         the difference between the Fair Market Value of a Share as of the date
         of exercise of the SAR over the grant price of the SAR, all as
         determined pursuant to Article 8.

                  (nn)     "Subsidiary" means any corporation, limited liability
         company, partnership or other entity of which a majority of the
         outstanding voting stock or voting power is beneficially owned directly
         or indirectly by the Company. Notwithstanding the above, with respect
         to an Incentive Stock Option, Subsidiary shall have the meaning set
         forth in Section 424(f) of the Code.

                  (oo)     "1933 Act" means the Securities Act of 1933, as
         amended from time to time.

                  (pp)     "1934 Act" means the Securities Exchange Act of 1934,
         as amended from time to time.

                                    ARTICLE 3
                                 EFFECTIVE DATE

         3.1      EFFECTIVE DATE. The Plan was adopted by the Board of Directors
of CTI, Inc., the predecessor of the Company, on March 28, 2002. The Plan was
assumed by the Company and ratified by the Board of Directors of the Company on
May 21, 2002 and was approved by the stockholders on May 23, 2002 The Plan will
become effective on the effective date of the Company's initial Public Offering
of the Stock.

                                      -7-
<PAGE>
                                    ARTICLE 4
                                 ADMINISTRATION

         4.1.     COMMITTEE. The Plan shall be administered by a Committee
appointed by the Board (which Committee shall consist of at least two directors)
or, at the discretion of the Board from time to time, the Plan may be
administered by the Board. It is intended that at least two of the directors
appointed to serve on the Committee shall be "non-employee directors" (within
the meaning of Rule 16b-3 promulgated under the 1934 Act) and "outside
directors" (within the meaning of Code Section 162(m) and the regulations
thereunder) and that any such members of the Committee who do not so qualify
shall abstain from participating in any decision to make or administer Awards
that are made to Eligible Participants who at the time of consideration for such
Award are, or who are anticipated to be become, either (i) Covered Employees or
(ii) persons subject to the short-swing profit rules of Section 16 of the 1934
Act. However, the mere fact that a Committee member shall fail to qualify under
either of the foregoing requirements or shall fail to abstain from such action
shall not invalidate any Award made by the Committee which Award is otherwise
validly made under the Plan. The members of the Committee shall be appointed by,
and may be changed at any time and from time to time in the discretion of, the
Board. The Board may reserve to itself any or all of the authority and
responsibility of the Committee under the Plan or may act as administrator of
the Plan for any and all purposes. To the extent the Board has reserved any
authority and responsibility or during any time that the Board is acting as
administrator of the Plan, it shall have all the powers of the Committee
hereunder, and any reference herein to the Committee (other than in this Section
4.1) shall include the Board. To the extent any action of the Board under the
Plan conflicts with actions taken by the Committee, the actions of the Board
shall control.

         4.2      ACTION AND INTERPRETATIONS BY THE COMMITTEE. For purposes of
administering the Plan, the Committee may from time to time adopt rules,
regulations, guidelines and procedures for carrying out the provisions and
purposes of the Plan and make such other determinations, not inconsistent with
the Plan, as the Committee may deem appropriate. The Committee's interpretation
of the Plan, any Awards granted under the Plan, any Award Certificate and all
decisions and determinations by the Committee with respect to the Plan are
final, binding, and conclusive on all parties. Each member of the Committee is
entitled to, in good faith, rely or act upon any report or other information
furnished to that member by any officer or other employee of the Company or any
Affiliate, the Company's or an Affiliate's independent certified public
accountants, Company counsel or any executive compensation consultant or other
professional retained by the Company to assist in the administration of the
Plan.

         4.3      AUTHORITY OF COMMITTEE. Except as provided below, the
Committee has the exclusive power, authority and discretion to:

                  (a)      Grant Awards;

                                      -8-
<PAGE>

                  (b)      Designate Participants;

                  (c)      Determine the type or types of Awards to be granted
         to each Participant;

                  (d)      Determine the number of Awards to be granted and the
         number of Shares to which an Award will relate;

                  (e)      Determine the terms and conditions of any Award
         granted under the Plan, including but not limited to, the exercise
         price, grant price, or purchase price, any restrictions or limitations
         on the Award, any schedule for lapse of forfeiture restrictions or
         restrictions on the exercisability of an Award, and accelerations or
         waivers thereof, based in each case on such considerations as the
         Committee in its sole discretion determines;

                  (f)      Accelerate the vesting, exercisability or lapse of
         restrictions of any outstanding Award, in accordance with Article 13,
         based in each case on such considerations as the Committee in its sole
         discretion determines;

                  (g)      Determine whether, to what extent, and under what
         circumstances an Award may be settled in, or the exercise price of an
         Award may be paid in, cash, Stock, other Awards, or other property, or
         an Award may be canceled, forfeited, or surrendered;

                  (h)      Prescribe the form of each Award Certificate, which
         need not be identical for each Participant;

                  (i)      Decide all other matters that must be determined in
         connection with an Award;

                  (j)      Establish, adopt or revise any rules, regulations,
         guidelines or procedures as it may deem necessary or advisable to
         administer the Plan;

                  (k)      Make all other decisions and determinations that may
         be required under the Plan or as the Committee deems necessary or
         advisable to administer the Plan;

                  (l)      Amend the Plan or any Award Certificate as provided
         herein; and

                  (m)      Adopt such modifications, procedures, and subplans as
         may be necessary or desirable to comply with provisions of the laws of
         non-U.S. jurisdictions in which the Company or any Affiliate may
         operate, in order to assure the viability of the benefits of Awards
         granted to participants located in such other jurisdictions and to meet
         the objectives of the Plan.

                                      -9-
<PAGE>

         Notwithstanding the foregoing, grants of Awards to Non-Employee
Directors hereunder shall be made only in accordance with the terms, conditions
and parameters of a plan or plans for the compensation of Non-Employee
Directors, and the Committee may not make discretionary grants hereunder to
Non-Employee Directors.

         To the extent permitted under Delaware law, the Board or the Committee
may expressly delegate to any individual or group of individuals some or all of
the Committee's authority under subsections (a) through (i) above, except that
no delegation of its duties and responsibilities may be made with respect to
Awards to Eligible Participants who are, or who are anticipated to be become,
either (i) Covered Employees or (ii) persons subject to the short-swing profit
rules of Section 16 of the 1934 Act. The acts of such delegates shall be treated
hereunder as acts of the Committee and such delegates shall report to the
Committee regarding the delegated duties and responsibilities.

         4.4.     AWARD CERTIFICATES. Each Award shall be evidenced by an Award
Certificate. Each Award Certificate shall include such provisions, not
inconsistent with the Plan, as may be specified by the Committee.

                                    ARTICLE 5
                           SHARES SUBJECT TO THE PLAN

         5.1.     NUMBER OF SHARES. Subject to adjustment as provided in Section
14.1, the aggregate number of Shares reserved and available for Awards or which
may be used to provide a basis of measurement for or to determine the value of
an Award (such as with a Stock Appreciation Right or Performance Award) shall be
1,875,000 (such number is prior to giving effect to any adjustment to the
Company's capital structure in connection with the Company's anticipated initial
Public Offering). Not more than 10% of such aggregate number of Shares may be
granted as Awards of Restricted Stock, Performance Shares or unrestricted Stock.
Not more than 1,875,000 Shares (such number is prior to giving effect to any
adjustment to the Company's capital structure in connection with the Company's
anticipated initial Public Offering) Shares shall be granted in the form of
Incentive Stock Options.

         5.2.     LAPSED AWARDS. To the extent that an Award is canceled,
terminates, expires, is forfeited or lapses for any reason, any Shares subject
to the Award will again be available for the grant of Awards under the Plan and
Shares subject to Awards settled in cash will be available for the grant of
Awards under the Plan.

         5.3.     STOCK DISTRIBUTED. Any Stock distributed pursuant to an Award
may consist, in whole or in part, of authorized and unissued Stock, treasury
Stock, or Stock purchased on the open market.

         5.4.     LIMITATION ON AWARDS. The following provisions of this Section
5.4 shall not be applicable until the deduction limitation of Code Section
162(m) are

                                      -10-
<PAGE>
applicable to the Company and any reliance period under Code Section 162(m) has
expired, as described in Section 16.16 hereof. Notwithstanding any provision in
the Plan to the contrary (but subject to adjustment as provided in Section
14.1), the maximum number of Shares with respect to one or more Options and/or
SARs that may be granted during any one calendar year under the Plan to any one
Participant shall be 250,000 (such number is prior to giving effect to any
adjustment to the Company's capital structure in connection with the Company's
anticipated initial Public Offering); provided, however, that in connection with
his or her initial employment with the Company, a Participant may be granted
Options or SARs with respect to up to an additional 125,000 Shares (such number
is prior to giving effect to any adjustment to the Company's capital structure
in connection with the Company's anticipated initial Public Offering), which
shall not count against the foregoing annual limit. The maximum fair market
value (measured as of the Grant Date) of any Awards other than Options and SARs
that may be received by any one Participant (less any consideration paid by the
Participant for such Award) during any one calendar year under the Plan shall be
$5,000,000.

                                    ARTICLE 6
                                   ELIGIBILITY

         6.1.     GENERAL. Awards may be granted only to Eligible Participants;
except that Incentive Stock Options may not be granted to Eligible Participants
who are not employees of the Company or a Parent or Subsidiary as defined in
Section 424(e) and (f) of the Code.

                                    ARTICLE 7
                                  STOCK OPTIONS

         7.1.     GENERAL. The Committee is authorized to grant Options to
Participants on the following terms and conditions:

                  (a)      EXERCISE PRICE. The exercise price per Share under an
         Option shall be determined by the Committee, provided that the exercise
         price for any Option shall not be less than the Fair Market Value as of
         the Grant Date.

                  (b)      TIME AND CONDITIONS OF EXERCISE. The Committee shall
         determine the time or times at which an Option may be exercised in
         whole or in part, subject to Section 7.1(d). The Committee shall also
         determine the performance or other conditions, if any, that must be
         satisfied before all or part of an Option may be exercised or vested.
         The Committee may waive any exercise or vesting provisions at any time
         in whole or in part based upon factors as the Committee may determine
         in its sole discretion so that the Option becomes exercisable or vested
         at an earlier date. The Committee may permit an arrangement whereby
         receipt of Stock upon exercise of an Option is delayed until a
         specified future date.

                                      -11-
<PAGE>

                  (c)      PAYMENT. The Committee shall determine the methods by
         which the exercise price of an Option may be paid, the form of payment,
         including, without limitation, cash, Shares, or other property
         (including "cashless exercise" arrangements), and the methods by which
         Shares shall be delivered or deemed to be delivered to Participants;
         provided, however, that if Shares are used to pay the exercise price of
         an Option, such Shares must have been held by the Participant for at
         least six months.

                  (d)      EXERCISE TERM. In no event may any Option be
         exercisable for more than ten years from the Grant Date.

                  (e)      ADDITIONAL OPTIONS UPON EXERCISE. The Committee may,
         in its sole discretion, provide in an original Award Certificate for
         the automatic grant of a new Option to any Participant who delivers
         Shares as full or partial payment of the exercise price of the original
         Option. Any new Option granted in such a case (i) shall be for the same
         number of Shares as the Participant delivered in exercising the
         original Option, (ii) shall have an exercise price of 100% of the Fair
         Market Value of the surrendered Shares on the date of exercise of the
         original Option (the grant date for the new Option), and (iii) shall
         have a term equal to the unexpired term of the original Option.

         7.2.     INCENTIVE STOCK OPTIONS. The terms of any Incentive Stock
Options granted under the Plan must comply with the following additional rules:

                  (a)      LAPSE OF OPTION. An Incentive Stock Option shall
         lapse upon the earliest of the following circumstances; provided,
         however, that the Committee may, prior to the lapse of the Incentive
         Stock Option under the circumstances described in subsections (3), (4),
         (5) and (6) below, provide in writing that the Option will extend until
         a later date, but if an Option is so extended and is exercised after
         the dates specified in subsections (3) and (4) below, it will
         automatically become a Non-Qualified Stock Option:

                           (1)      The expiration date set forth in the Award
                  Certificate.

                           (2)      The tenth anniversary of the Grant Date.

                           (3)      Three months after termination of the
                  Participant's Continuous Status as a Participant for any
                  reason other than the Participant's Disability, death or
                  termination by the Company for Cause.

                           (4)      One year after the termination of the
                  Participant's Continuous Status as a Participant by reason of
                  the Participant's Disability.

                           (5)      One year after the termination of the
                  Participant's death if the Participant dies while employed, or
                  during the three-month period

                                      -12-
<PAGE>

                  described in paragraph (3) or during the one-year period
                  described in paragraph (4) and before the Option otherwise
                  lapses.

                           (6)      Thirty days after of the termination of the
                  Participant's Continuous Status as a Participant if such
                  termination is for Cause.

                  Unless the exercisability of the Incentive Stock Option is
         accelerated as provided in Article 13, if a Participant exercises an
         Option after termination of employment, the Option may be exercised
         only with respect to the Shares that were otherwise vested on the
         Participant's termination of employment. Upon the Participant's death,
         any exercisable Incentive Stock Options may be exercised by the
         Participant's beneficiary, determined in accordance with Section 13.5.

                  (b)      INDIVIDUAL DOLLAR LIMITATION. The aggregate Fair
         Market Value (determined as of the Grant Date) of all Shares with
         respect to which Incentive Stock Options are first exercisable by a
         Participant in any calendar year may not exceed $100,000.00.

                  (c)      TEN PERCENT OWNERS. No Incentive Stock Option shall
         be granted to any individual who, at the Grant Date, owns stock
         possessing more than ten percent of the total combined voting power of
         all classes of stock of the Company or any Parent or Subsidiary unless
         the exercise price per Share of such Option is at least 110% of the
         Fair Market Value per Share at the Grant Date and the Option expires no
         later than five years after the Grant Date.

                  (d)      EXPIRATION OF AUTHORITY TO GRANT INCENTIVE STOCK
         OPTIONS. No Incentive Stock Option may be granted pursuant to the Plan
         after the day immediately prior to the tenth anniversary of the
         Effective Date.

                  (e)      RIGHT TO EXERCISE. During a Participant's lifetime,
         an Incentive Stock Option may be exercised only by the Participant or,
         in the case of the Participant's Disability, by the Participant's
         guardian or legal representative.

                  (f)      ELIGIBLE GRANTEES. The Committee may not grant an
         Incentive Stock Option to a person who is not at the Grant Date an
         employee of the Company or a Parent or Subsidiary.

                                    ARTICLE 8
                            STOCK APPRECIATION RIGHTS

         8.1.     GRANT OF Stock Appreciation Rights. The Committee is
authorized to grant Stock Appreciation Rights to Participants on the following
terms and conditions:

                                      -13-
<PAGE>

                  (a)      RIGHT TO PAYMENT. Upon the exercise of a Stock
         Appreciation Right, the Participant to whom it is granted has the right
         to receive the excess, if any, of:

                           (1)      The Fair Market Value of one Share on the
                  date of exercise; over

                           (2)      The grant price of the Stock Appreciation
                  Right as determined by the Committee, which shall not be less
                  than the Fair Market Value of one Share on the Grant Date in
                  the case of any Stock Appreciation Right related to an
                  Incentive Stock Option.

                  (b)      OTHER TERMS. All awards of Stock Appreciation Rights
         shall be evidenced by an Award Certificate. The terms, methods of
         exercise, methods of settlement, form of consideration payable in
         settlement, and any other terms and conditions of any Stock
         Appreciation Right shall be determined by the Committee at the time of
         the grant of the Award and shall be reflected in the Award Certificate.

                                    ARTICLE 9
                               PERFORMANCE AWARDS

         9.1.     GRANT OF PERFORMANCE AWARDS. The Committee is authorized to
grant Performance Shares or Performance Units to Participants on such terms and
conditions as may be selected by the Committee. The Committee shall have the
complete discretion to determine the number of Performance Shares or Performance
Units granted to each Participant, subject to Section 5.4, and to designate the
provisions of such Performance Awards as provided in Section 4.3.

         9.2.     PERFORMANCE GOALS. The Committee may establish performance
goals for Performance Awards which may be based on any one or more of the
Qualified Performance Criteria listed in Section 13.11(b) or any other criteria
selected by the Committee. Such performance goals may be described in terms of
Company-wide objectives or in terms of objectives that relate to the performance
of an Affiliate or a division, region, department or function within the Company
or an Affiliate. If the Committee determines that a change in the business,
operations, corporate structure or capital structure of the Company or the
manner in which the Company or an Affiliate conducts its business, or other
events or circumstances render performance goals to be unsuitable, the Committee
may modify such performance goals in whole or in part, as the Committee deems
appropriate. If a Participant is promoted, demoted or transferred to a different
business unit or function during a performance period, the Committee may
determine that the performance goals or performance period are no longer
appropriate and may (i) adjust, change or eliminate the performance goals or the
applicable performance period as it deems appropriate to make such goals and
period comparable to the initial goals and period, or (ii) make a cash payment
to the participant in amount

                                      -14-
<PAGE>
determined by the Committee. The foregoing two sentences shall not apply with
respect to a Performance Award that is intended to be a Qualified
Performance-Based Award.

         9.3.     RIGHT TO PAYMENT. The grant of a Performance Share to a
Participant will entitle the Participant to receive at a specified later time a
specified number of Shares, or the equivalent cash value, if the performance
goals established by the Committee are achieved and the other terms and
conditions thereof are satisfied. The grant of a Performance Unit to a
Participant will entitle the Participant to receive at a specified later time a
specified dollar value in cash or property other than Shares, variable under
conditions specified in the Award, if the performance goals in the Award are
achieved and the other terms and conditions thereof are satisfied. The Committee
shall set performance goals and other terms or conditions to payment of the
Performance Awards in its discretion which, depending on the extent to which
they are met, will determine the number and value of the Performance Award that
will be paid to the Participant.

         9.4.     OTHER TERMS. Performance Awards may be payable in cash, Stock,
or other property, and have such other terms and conditions as determined by the
Committee and reflected in the Award Certificate. For purposes of determining
the number of Shares to be used in payment of a Performance Award denominated in
cash but payable in whole or in part in Shares or Restricted Stock, the number
of Shares to be so paid will be determined by dividing the cash value of the
Award to be so paid by the Fair Market Value of a Share on the date of
determination of the amount of the Award by the Committee, or, if the Committee
so directs, the date immediately preceding the date the Award is paid.

                                   ARTICLE 10
                             RESTRICTED STOCK AWARDS

         10.1.    GRANT OF RESTRICTED STOCK. The Committee is authorized to make
Awards of Restricted Stock to Participants in such amounts and subject to such
terms and conditions as may be selected by the Committee.

         10.2.    ISSUANCE AND RESTRICTIONS. Restricted Stock shall be subject
to such restrictions on transferability and other restrictions as the Committee
may impose (including, without limitation, limitations on the right to vote
Restricted Stock or the right to receive dividends on the Restricted Stock).
These restrictions may lapse separately or in combination at such times, under
such circumstances, in such installments, upon the satisfaction of performance
goals or otherwise, as the Committee determines at the time of the grant of the
Award or thereafter. Except as otherwise provided in an Award Certificate, the
Participant shall have all of the rights of a stockholder with respect to the
Restricted Stock.

         10.3.    FORFEITURE. Except as otherwise determined by the Committee at
the time of the grant of the Award or thereafter, upon termination of Continuous
Status as a Participant during the applicable restriction period or upon failure
to satisfy a

                                      -15-
<PAGE>
performance goal during the applicable restriction period, Restricted Stock that
is at that time subject to restrictions shall be forfeited; provided, however,
that the Committee may provide in any Award Certificate that restrictions or
forfeiture conditions relating to Restricted Stock will be waived in whole or in
part in the event of terminations resulting from specified causes, and the
Committee may in other cases waive in whole or in part restrictions or
forfeiture conditions relating to Restricted Stock.

         10.4.    CERTIFICATES FOR RESTRICTED STOCK. An Award of Restricted
Stock shall be evidenced by an Award Certificate setting forth the terms,
conditions, and restrictions applicable to share of Restricted Stock. Shares of
Restricted Stock shall be delivered to the Participant at the time of grant
either by book-entry registration or by delivering to the Participant, or a
custodian or escrow agent (including, without limitation, the Company or one or
more of its employees) designated by the Committee, a stock certificate or
certificates registered in the name of the Participant. If physical certificates
representing shares of Restricted Stock are registered in the name of the
Participant, such certificates must bear an appropriate legend referring to the
terms, conditions, and restrictions applicable to such Restricted Stock.

                                   ARTICLE 11
                              DIVIDEND EQUIVALENTS

         11.1     GRANT OF DIVIDEND EQUIVALENTS. The Committee is authorized to
grant Dividend Equivalents to Participants subject to such terms and conditions
as may be selected by the Committee. Dividend Equivalents shall entitle the
Participant to receive payments equal to dividends with respect to all or a
portion of the number of Shares of Stock subject to an Award, as determined by
the Committee. The Committee may provide that Dividend Equivalents be paid or
distributed when accrued or be deemed to have been reinvested in additional
Shares of Stock, or otherwise reinvested.

                                   ARTICLE 12
                        STOCK OR OTHER STOCK-BASED AWARDS

         12.1.    GRANT OF STOCK OR OTHER STOCK-BASED AWARDS. The Committee is
authorized, subject to limitations under applicable law, to grant to
Participants such other Awards that are payable in, valued in whole or in part
by reference to, or otherwise based on or related to Shares, as deemed by the
Committee to be consistent with the purposes of the Plan, including without
limitation Shares awarded purely as a "bonus" and not subject to any
restrictions or conditions, convertible or exchangeable debt securities, other
rights convertible or exchangeable into Shares, and Awards valued by reference
to book value of Shares or the value of securities of or the performance of
specified Parents or Subsidiaries. The Committee shall determine the terms and
conditions of such Awards.

                                      -16-
<PAGE>

                                   ARTICLE 13
                         PROVISIONS APPLICABLE TO AWARDS

         13.1.    STAND-ALONE, TANDEM, AND SUBSTITUTE AWARDS. Awards granted
under the Plan may, in the discretion of the Committee, be granted either alone
or in addition to, in tandem with, or in substitution for, any other Award
granted under the Plan. If an Award is granted in substitution for another
Award, the Committee may require the surrender of such other Award in
consideration of the grant of the new Award. Awards granted in addition to or in
tandem with other Awards may be granted either at the same time as or at a
different time from the grant of such other Awards.

         13.2.    TERM OF AWARD. The term of each Award shall be for the period
as determined by the Committee, provided that in no event shall the term of any
Incentive Stock Option or a Stock Appreciation Right granted in tandem with the
Incentive Stock Option exceed a period of ten years from its Grant Date (or, if
Section 7.2(c) applies, five years from its Grant Date).

         13.3.    FORM OF PAYMENT FOR AWARDS. Subject to the terms of the Plan
and any applicable law or Award Certificate, payments or transfers to be made by
the Company or an Affiliate on the grant or exercise of an Award may be made in
such form as the Committee determines at or after the Grant Date, including
without limitation, cash, Stock, other Awards, or other property, or any
combination, and may be made in a single payment or transfer, in installments,
or on a deferred basis, in each case determined in accordance with rules adopted
by, and at the discretion of, the Committee.

         13.4.    LIMITS ON TRANSFER. No right or interest of a Participant in
any unexercised or restricted Award may be pledged, encumbered, or hypothecated
to or in favor of any party other than the Company or an Affiliate, or shall be
subject to any lien, obligation, or liability of such Participant to any other
party other than the Company or an Affiliate. No unexercised or restricted Award
shall be assignable or transferable by a Participant other than by will or the
laws of descent and distribution or, except in the case of an Incentive Stock
Option, pursuant to a domestic relations order that would satisfy Section
414(p)(1)(A) of the Code if such Section applied to an Award under the Plan;
provided, however, that the Committee may (but need not) permit other transfers
where the Committee concludes that such transferability (i) does not result in
accelerated taxation, (ii) does not cause any Option intended to be an Incentive
Stock Option to fail to be described in Code Section 422(b), and (iii) is
otherwise appropriate and desirable, taking into account any factors deemed
relevant, including without limitation, state or federal tax or securities laws
applicable to transferable Awards.

         13.5     BENEFICIARIES. Notwithstanding Section 13.4, a Participant
may, in the manner determined by the Committee, designate a beneficiary to
exercise the rights of the Participant and to receive any distribution with
respect to any Award upon the Participant's death. A beneficiary, legal
guardian, legal representative, or other person claiming any rights under the
Plan is subject to all terms and conditions of the Plan and any Award
Certificate applicable to the Participant, except to the extent the Plan and

                                      -17-
<PAGE>
Award Certificate otherwise provide, and to any additional restrictions deemed
necessary or appropriate by the Committee. If no beneficiary has been designated
or survives the Participant, payment shall be made to the Participant's estate.
Subject to the foregoing, a beneficiary designation may be changed or revoked by
a Participant at any time provided the change or revocation is filed with the
Committee.

         13.6.    STOCK CERTIFICATES. All Stock issuable under the Plan is
subject to any stop-transfer orders and other restrictions as the Committee
deems necessary or advisable to comply with federal or state securities laws,
rules and regulations and the rules of any national securities exchange or
automated quotation system on which the Stock is listed, quoted, or traded. The
Committee may place legends on any Stock certificate or issue instructions to
the transfer agent to reference restrictions applicable to the Stock.

         13.7     ACCELERATION UPON DEATH OR DISABILITY. Notwithstanding any
other provision in the Plan or any Participant's Award Certificate to the
contrary, upon the Participant's death or Disability during his Continuous
Status as a Participant, all of such Participant's outstanding Options, Stock
Appreciation Rights, and other Awards in the nature of rights that may be
exercised shall become fully exercisable and all restrictions on his outstanding
Awards shall lapse. Any Option or Stock Appreciation Rights Awards shall
thereafter continue or lapse in accordance with the other provisions of the Plan
and the Award Certificate. To the extent that this provision causes Incentive
Stock Options to exceed the dollar limitation set forth in Section 7.2(b), the
excess Options shall be deemed to be Non-Qualified Stock Options.

         13.8.    ACCELERATION UPON A CHANGE OF CONTROL. Except as otherwise
provided in the Award Certificate, all of a Participant's outstanding Options
and other Awards in the nature of rights that may be exercised shall become
fully exercisable and all restrictions on his outstanding Awards shall lapse if
the Participant's employment is terminated without Cause or the Participant
resigns for Good Reason within two years after the effective date of a Change of
Control.

         13.9.    ACCELERATION FOR OTHER REASONS. Regardless of whether an event
has occurred as described in Section 13.7 or 13.8 above, the Committee may in
its sole discretion at any time determine that all or a portion of a
Participant's Options and other Awards in the nature of rights that may be
exercised shall become fully or partially exercisable, and/or that all or a part
of the restrictions on all or a portion of a Participant's outstanding Awards
shall lapse, in each case, as of such date as the Committee may, in its sole
discretion, declare. The Committee may discriminate among Participants and among
Awards granted to a Participant in exercising its discretion pursuant to this
Section 13.9.

         13.10    EFFECT OF ACCELERATION. If an Award is accelerated under
Section 13.8 or Section 13.9, the Committee may, in its sole discretion, provide
(i) that the Award will expire after a designated period of time after such
acceleration to the extent not then exercised, (ii) that the Award will be
settled in cash rather than Stock, (iii) that the Award will be assumed by
another party to a transaction giving rise to the

                                      -18-
<PAGE>
acceleration or otherwise be equitably converted or substituted in connection
with such transaction, (iv) that the Award may be settled by payment in cash or
cash equivalents equal to the excess of the Fair Market Value of the underlying
Stock, as of a specified date associated with the transaction, over the exercise
price of the Award, or (v) any combination of the foregoing. The Committee's
determination need not be uniform and may be different for different
Participants whether or not such Participants are similarly situated. To the
extent that such acceleration causes Incentive Stock Options to exceed the
dollar limitation set forth in Section 7.2(b), the excess Options shall be
deemed to be Non-Qualified Stock Options.

         13.11.   QUALIFIED PERFORMANCE-BASED AWARDS.

                  (a)      The provisions of the Plan are intended to ensure
         that all Options and Stock Appreciation Rights granted hereunder to any
         Covered Employee qualify for the Section 162(m) Exemption.

                  (b)      When granting any Performance Award, Restricted Stock
         or Other Stock-Based Award other than Options or Stock Appreciation
         Rights, the Committee may designate such Award as a Qualified
         Performance-Based Award, based upon a determination that the recipient
         is or may be a Covered Employee with respect to such Award, and the
         Committee wishes such Award to qualify for the Section 162(m)
         Exemption. If an Award is so designated, the Committee shall establish
         performance goals for such Award within the time period prescribed by
         Section 162(m) of the Code based on one or more of the following
         Qualified Performance Criteria, which may be expressed in terms of
         Company-wide objectives or in terms of objectives that relate to the
         performance of an Affiliate or a division, region, department or
         function within the Company or an Affiliate: (1) earnings per share,
         (2) EBITDA (earnings before interest, depreciation, taxes and
         amortization), (3) EBIT (earnings before interest and taxes), (4)
         economic profit, (5) cash flow, (6) sales growth, (7) net profit before
         tax, (8) gross profit, (9) operating profit, (10) return on equity,
         (11) return on assets, (12) return on capital, (13) changes in working
         capital, (14) stock price, or (15) stockholder return.

                  (c)      Each Qualified Performance-Based Award (other than an
         Option or Stock Appreciation Right) shall be earned, vested and payable
         (as applicable) only upon the achievement of performance goals
         established by the Committee based upon one or more of the Qualified
         Performance Criteria, together with the satisfaction of any other
         conditions, such as continued employment, as the Committee may
         determine to be appropriate; provided that (i) the Committee may
         provide, either in connection with the grant thereof or by amendment
         thereafter, that achievement of such performance goals will be waived
         upon the death or Disability of the Participant, and (ii) the
         provisions of Sections 13.7 and 13.8 shall apply notwithstanding this
         sentence.

                                      -19-
<PAGE>

                  (d)      Any payment of a Qualified Performance-Based Award
         granted with performance goals shall be conditioned on the written
         certification of the Committee in each case that the performance goals
         and any other material conditions were satisfied. Except as
         specifically provided in subsection (c), no Qualified Performance-Based
         Award may be amended, nor may the Committee exercise any discretionary
         authority it may otherwise have under the Plan with respect to a
         Qualified Performance-Based Award under the Plan, in any manner to
         waive the achievement of the applicable performance goal based on
         Qualified Performance Criteria or to increase the amount payable
         pursuant thereto or the value thereof, or otherwise in a manner that
         would cause the Qualified Performance-Based Award to cease to qualify
         for the Section 162(m) Exemption.

                  (e)      Section 5.4 sets forth the maximum number of Shares
         or dollar value that may be granted in any one-year period to a
         Participant, as required by the Section 162(m) Exemption.

         13.12.   TERMINATION OF EMPLOYMENT. Whether military, government or
other service or other leave of absence shall constitute a termination of
employment shall be determined in each case by the Committee at its discretion,
and any determination by the Committee shall be final and conclusive. A
Participant's Continuous Status as a Participant shall not be deemed to
terminate (i) in a circumstance in which a Participant transfers from the
Company to an Affiliate, transfers from an Affiliate to the Company, or
transfers from one Affiliate to another Affiliate, or (ii) in the discretion of
the Committee as specified at or prior to such occurrence, in the case of a
spin-off, sale or disposition of the Participant's employer from the Company or
any Affiliate. To the extent that this provision causes Incentive Stock Options
to extend beyond three months from the date a Participant is deemed to be an
employee of the Company, a Parent or Subsidiary for purposes of Sections 424(e)
and 424(f) of the Code, the Options held by such Participant shall be deemed to
be Non-Qualified Stock Options.

         13.13.   LOANS OR GUARANTEES. With the consent of the Committee, the
Company or an Affiliate may make, guarantee or arrange for a loan or loans to a
Participant with respect to or allow a Participant to defer payment to the
Company of all or any portion of (i) the exercise price of any Option granted
under the Plan, (ii) the purchase price, if any, of any Award granted hereunder
and/or (iii) the payment by the Participant of any or all federal and/or state
income or employment taxes due on account of the granting or exercise of any
Award hereunder. The Committee shall have full authority to decide whether to
make a loan or guarantee or to permit a deferral hereunder and to determine the
amount, terms and provisions of any such loan or guarantee, including the
interest rate to be charged in respect of any such loan(s), whether the loan(s)
are to be made with or without recourse against the borrower, the collateral or
other security, if any, securing the repayment of the loan(s), the terms on
which the loan(s) are to be repaid and the conditions, if any, under which the
loan(s) may be forgiven. If the Committee has made or arranged a loan or
guarantee or deferred payment, the Committee may, in its discretion, require
immediate payment of such deferred amount or immediate release of such loan or
guarantee if the Participant's

                                      -20-
<PAGE>
Continuous Status as a Participant terminates or if the Participant sells or
otherwise transfers the Participant's Shares pursuant to such deferral, loan or
guarantee.

                                   ARTICLE 14
                          CHANGES IN CAPITAL STRUCTURE

         14.1.    GENERAL. In the event of a corporate event or transaction
involving the Company (including, without limitation, any stock dividend, stock
split, extraordinary cash dividend, recapitalization, reorganization, merger,
consolidation, split-up, spin-off, combination or exchange of shares), the
authorization limits under Section 5.1 and 5.4 shall be adjusted
proportionately, and the Committee may adjust Awards to preserve the benefits or
potential benefits of the Awards. Action by the Committee may include: (i)
adjustment of the number and kind of shares which may be delivered under the
Plan; (ii) adjustment of the number and kind of shares subject to outstanding
Awards; (iii) adjustment of the exercise price of outstanding Awards or the
measure to be used to determine the amount of the benefit payable on an Award;
and (iv) any other adjustments that the Committee determines to be equitable. In
addition, the Committee may, in its sole discretion, provide (i) that Awards
will be settled in cash rather than Stock, (ii) that Awards will become
immediately vested and exercisable and will expire after a designated period of
time to the extent not then exercised, (iii) that Awards will be assumed by
another party to a transaction or otherwise be equitably converted or
substituted in connection with such transaction, (iv) that outstanding Awards
may be settled by payment in cash or cash equivalents equal to the excess of the
Fair Market Value of the underlying Stock, as of a specified date associated
with the transaction, over the exercise price of the Award, or (v) any
combination of the foregoing. The Committee's determination need not be uniform
and may be different for different Participants whether or not such Participants
are similarly situated. Without limiting the foregoing, in the event of a
subdivision of the outstanding Stock (stock-split), a declaration of a dividend
payable in Shares, or a combination or consolidation of the outstanding Stock
into a lesser number of Shares, the authorization limits under Section 5.1 and
5.4 shall automatically be adjusted proportionately, and the Shares then subject
to each Award shall automatically be adjusted proportionately without any change
in the aggregate purchase price therefor.

                                   ARTICLE 15
                     AMENDMENT, MODIFICATION AND TERMINATION

         15.1.    AMENDMENT, MODIFICATION AND TERMINATION. The Board or the
Committee may, at any time and from time to time, amend, modify or terminate the
Plan without stockholder approval; provided, however, that the Board or
Committee may condition any amendment or modification on the approval of
stockholders of the Company for any reason, including by reason of such approval
being necessary or deemed advisable to (i) permit Awards made hereunder to be
exempt from liability under Section 16(b) of the 1934 Act, (ii) to comply with
the listing or other requirements of an Exchange, or (iii) to satisfy any other
tax, securities or other applicable laws, policies or regulations.

                                      -21-
<PAGE>

         15.2.    AWARDS PREVIOUSLY GRANTED. At any time and from time to time,
the Committee may amend, modify or terminate any outstanding Award without
approval of the Participant; provided, however:

                  (a)      Subject to the terms of the applicable Award
         Certificate, such amendment, modification or termination shall not,
         without the Participant's consent, reduce or diminish the value of such
         Award determined as if the Award had been exercised, vested, cashed in
         or otherwise settled (at the spread value in the case of an Option or
         Stock Appreciation Right) on the date of such amendment or termination;

                  (b)      The original term of any Option may not be extended
         without the prior approval of the stockholders of the Company;

                  (c)      Except as otherwise provided in Article 14, the
         exercise price of any Option may not be reduced, directly or
         indirectly, without the prior approval of the stockholders of the
         Company; and

                  (d)      No termination, amendment, or modification of the
         Plan shall adversely affect any Award previously granted under the
         Plan, without the written consent of the Participant affected thereby.

                                   ARTICLE 16
                               GENERAL PROVISIONS

         16.1.    NO RIGHTS TO AWARDS; NON-UNIFORM DETERMINATIONS. No
Participant or any Eligible Participant shall have any claim to be granted any
Award under the Plan. Neither the Company, its Affiliates nor the Committee is
obligated to treat Participants or Eligible Participants uniformly, and
determinations made under the Plan may be made by the Committee selectively
among Eligible Participants who receive, or are eligible to receive, Awards
(whether or not such Eligible Participants are similarly situated).

         16.2.    NO STOCKHOLDER RIGHTS. No Award gives a Participant any of the
rights of a stockholder of the Company unless and until Shares are in fact
issued to such person in connection with such Award.

         16.3.    WITHHOLDING. The Company or any Affiliate shall have the
authority and the right to deduct or withhold, or require a Participant to remit
to the Company, an amount sufficient to satisfy federal, state, and local taxes
(including the Participant's FICA obligation) required by law to be withheld
with respect to any exercise, lapse of restriction or other taxable event
arising as a result of the Plan. If Shares are surrendered to the Company to
satisfy withholding obligations in excess of the minimum withholding obligation,
such Shares must have been held by the Participant as fully vested shares for at
least six months. With respect to withholding required upon any taxable event
under

                                      -22-
<PAGE>

the Plan, the Committee may, at the time the Award is granted or thereafter,
require or permit that any such withholding requirement be satisfied, in whole
or in part, by withholding from the Award Shares having a Fair Market Value on
the date of withholding equal to the minimum amount (and not any greater amount)
required to be withheld for tax purposes, all in accordance with such procedures
as the Committee establishes.

         16.4.    NO RIGHT TO CONTINUED SERVICE. Nothing in the Plan, any Award
Certificate or any other document or statement made with respect to the Plan,
shall interfere with or limit in any way the right of the Company or any
Affiliate to terminate any Participant's employment or status as an officer,
director or consultant at any time, nor confer upon any Participant any right to
continue as an employee, officer, director or consultant of the Company or any
Affiliate, whether for the duration of a Participant's Award or otherwise.

         16.5.    UNFUNDED STATUS OF AWARDS. The Plan is intended to be an
"unfunded" plan for incentive and deferred compensation. With respect to any
payments not yet made to a Participant pursuant to an Award, nothing contained
in the Plan or any Award Certificate shall give the Participant any rights that
are greater than those of a general creditor of the Company or any Affiliate.

         16.6.    INDEMNIFICATION. To the extent allowable under applicable law,
each member of the Committee shall be indemnified and held harmless by the
Company from any loss, cost, liability, or expense that may be imposed upon or
reasonably incurred by such member in connection with or resulting from any
claim, action, suit, or proceeding to which such member may be a party or in
which he may be involved by reason of any action or failure to act under the
Plan and against and from any and all amounts paid by such member in
satisfaction of judgment in such action, suit, or proceeding against him
provided he gives the Company an opportunity, at its own expense, to handle and
defend the same before he undertakes to handle and defend it on his own behalf.
The foregoing right of indemnification shall not be exclusive of any other
rights of indemnification to which such persons may be entitled under the
Company's Certificate of Incorporation or Bylaws, as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold them
harmless.

         16.7.    RELATIONSHIP TO OTHER BENEFITS. No payment under the Plan
shall be taken into account in determining any benefits under any pension,
retirement, savings, profit sharing, group insurance, welfare or benefit plan of
the Company or any Affiliate unless provided otherwise in such other plan.

         16.8.    EXPENSES. The expenses of administering the Plan shall be
borne by the Company and its Affiliates.

         16.9.    TITLES AND HEADINGS. The titles and headings of the Sections
in the Plan are for convenience of reference only, and in the event of any
conflict, the text of the Plan, rather than such titles or headings, shall
control.

                                      -23-
<PAGE>
         16.10.   GENDER AND NUMBER. Except where otherwise indicated by the
context, any masculine term used herein also shall include the feminine; the
plural shall include the singular and the singular shall include the plural.

         16.11.   FRACTIONAL SHARES. No fractional Shares shall be issued and
the Committee shall determine, in its discretion, whether cash shall be given in
lieu of fractional Shares or whether such fractional Shares shall be eliminated
by rounding up.

         16.12.   GOVERNMENT AND OTHER REGULATIONS.

                  (a)      Notwithstanding any other provision of the Plan, no
         Participant who acquires Shares pursuant to the Plan may, during any
         period of time that such Participant is an affiliate of the Company
         (within the meaning of the rules and regulations of the Securities and
         Exchange Commission under the 1933 Act), sell such Shares, unless such
         offer and sale is made (i) pursuant to an effective registration
         statement under the 1933 Act, which is current and includes the Shares
         to be sold, or (ii) pursuant to an appropriate exemption from the
         registration requirement of the 1933 Act, such as that set forth in
         Rule 144 promulgated under the 1933 Act.

                  (b)      Notwithstanding any other provision of the Plan, if
         at any time the Committee shall determine that the registration,
         listing or qualification of the Shares covered by an Award upon any
         Exchange or under any foreign, federal, state or local law or practice,
         or the consent or approval of any governmental regulatory body, is
         necessary or desirable as a condition of, or in connection with, the
         granting of such Award or the purchase or receipt of Shares thereunder,
         no Shares may be purchased, delivered or received pursuant to such
         Award unless and until such registration, listing, qualification,
         consent or approval shall have been effected or obtained free of any
         condition not acceptable to the Committee. Any Participant receiving or
         purchasing Shares pursuant to an Award shall make such representations
         and agreements and furnish such information as the Committee may
         request to assure compliance with the foregoing or any other applicable
         legal requirements. The Company shall not be required to issue or
         deliver any certificate or certificates for Shares under the Plan prior
         to the Committee's determination that all related requirements have
         been fulfilled. The Company shall in no event be obligated to register
         any securities pursuant to the 1933 Act or applicable state or foreign
         law or to take any other action in order to cause the issuance and
         delivery of such certificates to comply with any such law, regulation
         or requirement.

         16.13.   GOVERNING LAW. To the extent not governed by federal law, the
Plan and all Award Certificates shall be construed in accordance with and
governed by the laws of the State of Delaware.

                                      -24-
<PAGE>

         16.14    ADDITIONAL PROVISIONS. Each Award Certificate may contain such
other terms and conditions as the Committee may determine; provided that such
other terms and conditions are not inconsistent with the provisions of the Plan.

         16.15.   NO LIMITATIONS ON RIGHTS OF COMPANY. The grant of any Award
shall not in any way affect the right or power of the Company to make
adjustments, reclassification or changes in its capital or business structure or
to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of
its business or assets. The Plan shall not restrict the authority of the
Company, for proper corporate purposes, to draft or assume Awards, other than
under the Plan, to or with respect to any person. If the Committee so directs,
the Company may issue or transfer Shares to an Affiliate, for such lawful
consideration as the Committee may specify, upon the condition or understanding
that the Affiliate will transfer such Shares to a Participant in accordance with
the terms of an Award granted to such Participant and specified by the Committee
pursuant to the provisions of the Plan.

         16.16    Code Section 162(m). The deduction limits of Code Section
162(m) and the regulation thereunder do not apply to the Company until such
time, if any, as any class of the Company's common equity securities is
registered under Section 12 of the 1934 Act or the Company otherwise meets the
definition of a "publicly held corporation" under Treasury Regulation
1.162-27(c) or any successor provision. Upon becoming a publicly held
corporation, the deduction limits of Code Section 162(m) and the regulations
thereunder shall not apply to compensation payable under this Plan until the
expiration of the reliance period described in Treasury Regulation 1.162-27(f)
or any successor regulation.

         The foregoing is hereby acknowledged as being the CTI Molecular
Imaging, Inc. 2002 Long-Term Incentive Plan as adopted by the Board of Directors
of CTI, Inc., the predecessor of the Company, on March 28, 2002. The Plan was
assumed by the Company and ratified by the Board of Directors of the Company on
May 21, 2002 and was approved by the stockholders of the Company on May 23,
2002.

                                          CTI Molecular Imaging, Inc.

                                          By:   /s/ Terry D. Douglass
                                                -------------------------------

                                          Its:  President
                                                -------------------------------

                                      -25-

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