Document:

EXHIBIT 4.1

                                 LOAN AGREEMENT

         THIS LOAN AGREEMENT,  (this  "Agreement") is made as of the 30th day of
August, 2002, by and between Rudolf Wanner, a resident of Solothurn, Switzerland
("Lead  Lender"),   and  Adept  Technology,   Inc.,  a  California   corporation
("Borrower");

                              STATEMENT OF PURPOSE:

         The Borrower desires to borrow from time to time funds from Lead Lender
for a loan in the  principal  amount  of up to Eight  Hundred  Thousand  Dollars
($800,000),  and the Lead Lender is willing to accommodate the Borrower upon and
subject to the terms, conditions, and provisions of this agreement.

         NOW, THEREFORE, in consideration of the premises,  mutual covenants and
agreements contained herein, the parties hereto agree as follows:

         SECTION 1. Definitions

         All  accounting  terms not  specifically  defined herein shall have the
meanings  assigned  to them  as  determined  by  generally  accepted  accounting
principles,  consistently applied.  Unless the context otherwise requires,  when
used herein, the following terms shall have the following meanings:

         1.1.  "Events of  Default"  means  those  events set forth in Section 5
hereof.

         1.2.  "Liabilities" means the obligation of the Borrower to pay (a) the
unpaid  principal  amount of the Note,  plus all  accrued  and  unpaid  interest
thereon, (b) all unpaid Liquidation Costs, and (c) all other charges,  interest,
and expenses  chargeable by the Lead Lender to the Borrower under this Agreement
and the other Loan Documents.

         1.3.  "Lien"  means  any  mortgage,  deed of  trust,  pledge,  security
interest,  assignment,  encumbrance,  lien,  or charge  of any kind,  including,
without limitation, any conditional sale or other title retention agreement, any
lease  in the  nature  thereof,  and the  filing  of or  agreement  to give  any
financing statement under the Uniform Commercial Code of any jurisdiction.

         1.4. "Liquidation Costs" means all expenses,  charges,  costs, and fees
(including  without  limitation  attorneys'  fees and  expenses)  of any  nature
whatsoever  paid or incurred  by or on behalf of the Lead  Lender in  connection
with (a) the  collection or enforcement  of any of the  Liabilities  and (b) the
collection or enforcement of any of the Loan Documents.

         1.5.  "Loan"  means  the loan in the  principal  amount  of up to Eight
Hundred  Thousand  Dollars  ($800,000)  to be made  by the  Lead  Lender  to the
Borrower pursuant to the terms and conditions of this Agreement.

         1.6. "Loan Documents" means collectively the Note, this Agreement,  the
Stock Issuance  Agreement dated of as the date hereof between  Borrower and Lead
Lender and any other  instrument,  document,  and  agreement  now and  hereafter
evidencing, securing,  guaranteeing,  indemnifying, and given by the Borrower or
any third  party in  connection  with the Loan or any of the  other  Liabilities
(including  those  documents  set forth in  Section  3  hereof)  and any and all
amendments thereto and modifications thereof.

         1.7.  "Note" means that Promissory Note described in Section 2.2 hereof
and any and all amendments thereto and modifications thereof.

         1.8. "Person" includes a corporation, an association, a partnership, an
organization,   a  business,  an  individual,   or  a  government  or  political
subdivision thereof or government agency.

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         1.9.  "Taxes"  means all  taxes  and  assessments  whether  general  or
special,  ordinary  or  extraordinary,  or  foreseen  or  unforeseen,  of  every
character  (including all penalties or interest thereon),  which at any time may
be  assessed,  levied,  confirmed,  or  imposed  on the  Borrower  or any of its
properties or assets or any part thereof or in respect of any of its franchises,
businesses, income or profits, and all claims for such sums which by law have or
might become a lien or charge upon any of its properties or assets.

         SECTION 2. Loan to the Borrower

         2.1 Loan  Commitment.  The Lead  Lender  agrees,  at the request of the
Borrower,  and  subject to and in  accordance  with the terms,  conditions,  and
provisions  of this  Agreement,  to make loans to the Borrower in the  principal
amount  of up  to  Eight  Hundred  Thousand  Dollars  ($800,000)  ("Loan").  The
commitment  of the Lead Lender to make the Loan  pursuant to the  provisions  of
this Agreement is herein called its "Loan Commitment."

         2.2 Note and Stock Issuance Agreement.  The Loan shall be evidenced by,
repaid in accordance with the terms of and bear interest as and at the rates set
forth in the Borrower's  Promissory Note to the Lead Lender in the form attached
hereto as Exhibit A and incorporated herein by reference, of even date herewith,
duly executed by the Borrower, and in the principal amount of the Loan ("Note").
In  consideration  for Lead Lender's entry into this Agreement and making of the
Loan Commitment,  Borrower  additionally  agrees to issue certificates for up to
100,000 registered shares of common stock of Borrower to Lead Lender pursuant to
the  Stock  Issuance   Agreement  between  Lead  Lender  and  Borrower  executed
concurrently with this Agreement.

         2.3 Loan Disbursements.  Subject to the compliance by Borrower with all
of the terms and  conditions  of this  Agreement,  Lead  Lender  agrees,  at the
written request of Borrower, to disburse the proceeds of the Loan. Not less than
twenty  (20)  days  prior to the date  that  Borrower  desires  a  disbursement,
Borrower shall deliver to Lead Lender express  written notice of a request for a
disbursement.  Prior to the disbursement,  Borrower shall have also delivered to
Lead Lender a certificate in a form  satisfactory  to Lead Lender from the chief
financial  officer of the Borrower that no Events of Default have occurred under
the Loan  Agreement  and are  continuing  as of the date of  disbursement.  Each
disbursement  is  to be  in  an  amount  up  to  Two  Hundred  Thousand  Dollars
($200,000).  The  first  disbursement  shall  not be due in any  event  prior to
December 15, 2002. The maximum amount to be disbursed by Lead Lender to Borrower
during  any  three-month  quarterly  period  is  Two  Hundred  Thousand  Dollars
($200,000),  and the maximum to be  disbursed  under the Loan is  $800,000.  The
Borrower  shall not have the right to repay and reborrow  under this  Agreement.
The Lead Lender shall disburse the funds pursuant to the disbursement directions
of  Borrower   within  twenty  (20)  days  after  receipt  of  the  request  for
disbursement  from Borrower,  and  concurrently  with physical  receipt of share
certificates  pursuant  to the Stock  Issuance  Agreement.  Notwithstanding  any
provision of this  Agreement,  the Lead Lender shall not be required to disburse
funds  under  this  Agreement  if an Event of  Default  (as  defined  below) has
occurred and is continuing.  Notwithstanding  the  foregoing,  there shall be no
obligation  on the part of Borrower to request any  disbursement  of proceeds of
the Loan.

         SECTION 3. Representations and Warranties

         To induce  the Lead  Lender to make the Loan  hereunder,  the  Borrower
hereby makes the following  representations and warranties to the Lead Lender as
of the date hereof and as of the date of each disbursement:

         3.1. Good Standing.  The Borrower (a) is a corporation  duly organized,
existing,  and in good standing under the laws of the State of  California,  and
(b) has the  power  to own its  property  and to carry  on its  business  and is
qualified to do business and is in good standing in each  jurisdiction  in which
the character of properties  owned by it or the transaction of its business such
qualification necessary.

         3.2. Authority. The Borrower has full power and authority to enter into
this  Agreement,  to make the borrowings  hereunder,  to execute and deliver the
Note and the other Loan  Documents  to which it is a party,  and to perform  and
comply with the terms, conditions,  and agreements set forth herein and therein,
all of which have been duly authorized by all proper and necessary action of the
Borrower.  No consent or approval of the  shareholders of the Borrower or of any
governmental  authority  is  required  as a  condition  to the  validity of this
Agreement, the Note, or the other Loan Documents.

<PAGE>

         3.3. Binding Agreement.  This Agreement  constitutes,  and the Note and
the other Loan Documents constitute or will constitute when issued and delivered
for value received,  the valid and legally  binding  obligations of the Borrower
enforceable in accordance with their respective terms.

         3.4.  Litigation.  There are no claims,  actions,  suits or proceedings
pending or, so far as any person  signing  below as or on behalf of the Borrower
knows,  threatened or reasonably  anticipated before any court or administrative
agency which could have a material adverse affect on the financial  condition or
operations of the Borrower.

         3.5.  Violation of Laws.  Neither the  consummation of the Loan nor the
use,  directly or indirectly,  of all or any portion of the proceeds of the Loan
hereunder  will  violate  or  result  in a  violation  of any  provision  of any
applicable  statute,  regulation or order of, or any restriction imposed by, the
State of North  Carolina  or the United  States of  America or by an  authorized
official, board, department, instrumentality, or agency thereof. The Borrower is
in  compliance  with all  applicable  federal,  state and local laws,  rules and
regulations  and  orders of any  court or other  governmental  authority  having
jurisdiction, the violation of which would have a material adverse affect on the
financial condition of the Borrower.

         SECTION 4. Borrower's Covenants.

         Until payment in full of all of the Liabilities:

         4.1.  Maintain  Existence.  The Borrower will at all times  maintain in
full force and effect its corporate  existence,  rights,  privileges,  licenses,
permits and  franchises  and qualify and remain  qualified in all  jurisdictions
where qualification is required.

         4.2. Compliance with Laws. The Borrower will at all times comply in all
material respects with all applicable federal, state, and local laws, rules, and
regulations  relating to the Loan,  this Agreement and the other Loan Documents,
and others of any court or other governmental authority having jurisdiction.

         4.3. Reports to SEC and to  Stockholders.  The Borrower will furnish to
the Lead Lender,  promptly upon the filing or making  thereof,  at least one (1)
copy of all financial statements, reports, notices, and proxy statements sent by
it to its  stockholders,  and all regular periodic reports filed by its with any
securities exchange or with the Securities and Exchange Commission.

         4.4. Adverse Change. The Borrower shall promptly notify the Lead Lender
of any  condition  or event  that  constitutes,  or with the lapse of time,  the
giving of notice,  or both, would  constitute an Event of Default,  and promptly
inform  the  Lead  Lender  of any  material  adverse  change  in  the  condition
(financial, business or otherwise) of the Borrower or any guarantor or surety of
the Liabilities.

         SECTION 5.Events of Default

         The occurrence of any one or more of the following  events  ("Events of
Default") shall constitute an event of default hereunder:

         5.1.  Failure to Pay Interest of Principal.  If the Borrower shall fail
to pay any interest or principal on any of the Liabilities,  including,  without
limitation, the Note and the Loan, when and as due and payable; or

         5.2.  Terms,  Conditions,  and  Covenants  of  this  Agreement.  If the
Borrower  shall fail to duly  perform,  comply with,  or observe in any material
respect any of the other  terms,  conditions,  or  covenants  contained  in this
Agreement; or

<PAGE>

         5.3. Representations and Warranties. If any representation and warranty
or any  statement  or  representation  made in any  report,  opinion,  schedule,
officer's  certificate,  or other  certificate or any other information given by
the Borrower or furnished in connection with the Loan shall prove to be false or
incorrect in any material respect on the date as of which made; or

         5.4. Default under Loan Documents. If an event of default (as described
or defined  therein)  shall  occur or exist under the  provisions  of any of the
other Loan Documents; or

         5.5. Default under Other Obligations. If any obligation of the Borrower
to the Lead  Lender  (other  than the  Liabilities)  for the payment of borrowed
money  becomes  or is  declared  to be due and  payable  prior to the  expressed
maturity thereof and the time of payment is not extended by the Lead Lender; or

         5.6.  Bankruptcy,  Insolvency.  If the  Borrower  becomes  insolvent or
generally does not pay its debts as they become due, or if a petition for relief
in a bankruptcy court is filed by the Borrower and remains undismissed for sixty
(60) days,  or if the Borrower  applies for,  consents to, or  acquiesces in the
appointment of a trustee,  custodian, or receiver for the Borrower or any of its
assets and property, or makes a general assignment for the benefit of creditors;
or, in the absence of such  application,  consent,  or acquiescence,  a trustee,
custodian,  or receiver is appointed for the Borrower or for a substantial  part
of the assets and property of the Borrower and is not  discharged  within thirty
(30) days; or any  bankruptcy,  reorganization,  debt  arrangement  or any other
proceeding or case under any bankruptcy or insolvency law or any  dissolution or
liquidation  proceeding  is instituted  against the Borrower,  and if instituted
against the Borrower and is  consented  to or  acquiesced  in by the Borrower or
remains  undismissed  for sixty (60) days;  or the Borrower  takes any action to
authorize any of the actions described in this subsection; or

         5.7. Adverse Change. If the Lead Lender determines in good faith that a
material adverse change has occurred in the financial  condition of the Borrower
from the financial  conditions set forth in the most recent financial  statement
furnished to the Lead Lender,  or from the  financial  condition of the Borrower
most recently disclosed to the Lead Lender in any manner; or

         5.8.  Prospect of Payment.  If the Lead Lender determines in good faith
that the prospect of payment of any of the Liabilities is impaired.

         SECTION 6. Rights and Remedies.

         The  occurrence  or  non-occurrence  of an Event of Default  under this
Agreement  shall in no way affect or  condition  the right of the Lead Lender to
demand payment at any time of any of the Liabilities which are payable on demand
regardless of whether or not such an Event of Default has  occurred.  If any one
or more Events of Default  shall  occur,  then in each and every such case,  the
Lead Lender at its option may at any time thereafter exercise and/or enforce any
or all of the following rights and remedies:

         6.1. Commitment. Terminate its Loan Commitment.

         6.2.  Acceleration.  Declare  without notice to the Borrower all of the
Liabilities to be immediately  due and payable,  whereupon the same shall become
due and payable,  together  with accrued and unpaid  interest  thereon,  without
presentment,  demand,  protest,  or  notice,  all of which the  Borrower  hereby
waives.

         6.3. Exercise of Rights and Remedies.  Exercise any rights and remedies
available  to the Lead Lender  under this  Agreement,  the Note,  the other Loan
Documents, and other applicable laws.

         6.4.  Liquidation  Costs.  The Borrower shall  reimburse and pay to the
Lead Lender upon demand  reasonable  all costs and  expenses  (the  "Liquidation
Costs"), including, without limitation,  attorneys' fees and expenses, advanced,
incurred by, or on behalf of the Lead Lender in  collecting  and  enforcing  the
Liabilities and/or the Loan Documents.

<PAGE>

         6.5.  Remedies  Cumulative.  Each right,  power, and remedy of the Lead
Lender as provided for in this  Agreement or in the other Loan  Documents or now
or hereafter  existing at law or in equity or by statute or  otherwise  shall be
cumulative and concurrent and shall be in addition to every other right,  power,
or remedy  provided for in this  Agreement or in the other Loan Documents or now
or hereafter  existing at law or in equity or by statute or  otherwise,  and the
exercise or  beginning  of the exercise by the Lead Lender of any one or more of
such rights,  powers,  or remedies shall not preclude the  simultaneous or later
exercise  by the  Lead  Lender  of any or all  such  other  rights,  powers,  or
remedies.

         6.6.  No Waiver.  No failure or delay by the Lead Lender to insist upon
the strict performance of any term,  condition,  covenant,  or agreement of this
Agreement or of any of the other Loan Documents, or to exercise any right, power
or remedy  consequent  upon a breach thereof,  shall  constitute a waiver of any
such term,  condition,  covenant or agreement or of any such breach, or preclude
the Lead Lender from  exercising any such right,  power,  or remedy at any later
time or times.  By accepting  payment  after the due date of any amount  payable
under  this  Agreement,  the Note or any of the other Loan  Documents,  the Lead
Lender shall not be deemed to waive the right either to require  prompt  payment
when due on all other amounts  payable under this  agreement,  under the Note or
any of the other Loan Documents or to declare an Event of Default for failure to
effect such prompt payment of any such other amount.

         6.7.  Accounts and Setoff.  The  Borrower  grants to the Lead Lender as
security for the full and punctual payment and performance of the Liabilities, a
continuing  lien  on and  security  interest  in all now or  hereafter  existing
balances,  credits,  accounts,  deposits  (general or  special,  time or demand,
provisional  or final) and all other sums  credited by,  maintained  with or due
from the Lead Lender or any affiliate of the Lead Lender (including Infotech AG,
Air-Vac Engineering, Inc, and Zevac AG) that has a participation interest in the
Loan to the Borrower or subject to withdrawal by the Borrower; and regardless of
the  adequacy of any  collateral  or other means of  obtaining  repayment of the
Liabilities,  the Lead Lender may at any time and without notice to the Borrower
set off  against  any and all of the  Liabilities  the whole or any  portion  or
portions of any or all balances, credits, accounts, deposits and other sums owed
by  Borrower to Lead Lender or to any  affiliate  of the Lead Lender  (including
Infotech AG, Air-Vac  Engineering,  Inc, and Zevac AG) that has a  participation
interest in the Loan.

         SECTION 7. Miscellaneous.

         7.1.  Survival.  All  covenants,   agreements,   representations,   and
warranties  made  herein and in any other  instruments  or  documents  delivered
pursuant  hereto shall  survive the execution and delivery of the Note and shall
continue  in  full  force  and  effect  so long  as any of the  Liabilities  are
outstanding and unpaid.

         7.2. Notices. All notices,  demands,  requests,  consents, or approvals
required under this Agreement to be made in writing shall be deemed to have been
properly given if and when mailed by first class certified mail,  return receipt
requested,  postage  prepaid,  if  to  the  Lead  Lender  at  c/o  Infotech  AG,
Vogelherdstrasse 4, CH 4500 Solothurn,  Switzerland,  to the attention of Rudolf
Wanner,  and if to the Borrower at 150 Rose  Orchard  Way, San Jose,  California
95134,  Attention:  Chief  Financial  Officer,  or at such other  address as the
Borrower or the Lead Lender shall have furnished to the other in writing.

         7.3.   Change.   Neither  this  Agreement  nor  any  term,   condition,
representation,  warranty, covenant, or agreement hereof may be changed, waived,
discharged,  or  terminated  orally but only by an  instrument in writing by the
party against whom such change, waiver, discharge, or termination is sought.

         7.4.  Governing Law. This Agreement  shall be governed by and construed
in accordance with the substantive laws of the State of North Carolina,  without
regard to the principles of choice of laws or conflict of laws.

         7.5.  Terms  Binding.  All  of  the  terms,  conditions,  stipulations,
warranties,  representations, and covenants of this Agreement shall apply to and
be binding  upon,  and shall inure to the benefit of, the  Borrower and the Lead
Lender and each of their respective heirs, personal representatives, successors,
and assigns.

         7.6.  Counterparts.  This  Agreement  may be  executed in any number of
counterparts, each of which shall be an original but all of which together shall
constitute one and the same instrument.

<PAGE>

         7.7. Consent to Jurisdiction;  Service of Process.  The Borrower hereby
agrees and consents that any action or  proceeding  arising out of or brought to
enforce the provisions of this Agreement  and/or any of the other Loan Documents
may be brought in any appropriate court in the State of North Carolina or in any
other  court  having  jurisdiction  over  the  subject  matter,  all at the sole
election of the Lead Lender, and by the execution of this Agreement the Borrower
irrevocably consents to the jurisdiction of each such court.

         7.8. Further Assurances and Corrective Instruments.  The parties hereto
agree that they will,  from time to time,  execute and  deliver,  or cause to be
executed and delivered,  such supplements hereto and such further instruments as
may  reasonably be required for carrying out the intention of the parties to, or
facilitating the performance of, this Agreement.

         7.9.  Estoppel  Certificate.  The Borrower will, upon not less than ten
(10)  business  days'  request  by the Lead  Lender or any  other  party to this
transaction,  execute,  acknowledge,  and deliver to such person a statement  in
writing,  certifying (a) that this Agreement is unmodified and in full force and
effect and the payments required by this Agreement to be paid by the Borrower as
of the date of such statement have been paid, and (b) the then unpaid  principal
balance of the Note;  and stating  whether or not to the knowledge of the signer
of such  certificate any party to any of the Loan Documents is in default in the
performance of any covenant,  agreement,  or condition contained therein and, if
so,  specifying  each such  default of which the signer may have  knowledge,  it
being intended that any such statement delivered pursuant to this section may be
relied upon by the Lead Lender and the other parties to this transaction.

         7.10 Entire Agreement.  Except for (a) the other Loan Documents, or (b)
any other document or agreement to the extent specifically provided therein; (i)
this agreement shall completely and fully supercede all other prior  agreements,
both written and oral, by and among the Borrower,  the Lead Lender and the other
parties to this  transaction (and any prior agreements by and between any two or
more of the foregoing) relating to the Liabilities, and (ii) none of the parties
to this Agreement  shall  hereafter have any rights  thereunder,  but shall look
solely to this  Agreement  and the other  Loan  Documents  for  definitions  and
determination   of  all   of   their   respective   rights,   obligations,   and
responsibilities relating to the Liabilities.

         7.11.  Illegality.  If  fulfillment  of  any  provision  hereof  or any
transaction  related  hereto  or  to  the  other  Loan  Documents  at  the  time
performance of such provisions shall be due shall involve transcending the limit
of validity  prescribed by law, then ipso facto,  the obligation to be fulfilled
shall be reduced to the limit of such  validity;  and if any clause or provision
herein  contained  operates or would  prospectively  operate to invalidate  this
Agreement in whole or in part, then such clause or provision only shall be void,
as though not herein contained, and the remainder of this Agreement shall remain
operative  and in full force and effect;  provided,  however,  that, if any such
provision  pertains to the repayment of the  Liabilities,  the occurrence of any
such invalidity shall constitute an Event of Default.

         7.12.  Assignment.  This Agreement and the other Loan Documents may not
be  assigned,  in whole or in part,  by the Borrower  without the prior  written
consent of the Lead Lender.

         7.13.  Participation.  Lead  Lender  from time to time:  (a) may sell a
participation  interest  in  all  or  any  portion(s)  of  the  rights,  powers,
privileges,  remedies and interest of and/or the Loan and other obligations owed
to Lead Lender  under this  Agreement,  the Note and the Loan  Documents  to any
other person; (b) may furnish and disclose financial  statements,  documents and
other  information  pertaining  to the  Borrower  to any  potential  participant
subject to confidentiality  obligations upon the recipient; and (c) may take any
and all other actions that Lead Lender in its sole  discretion  determines to be
necessary or  appropriate  in connection  with any such  participation,  without
notice  to or  consent  of  the  Borrower  or  any  other  person.  Lead  Lender
anticipates selling participation interests to third parties. The parties hereto
intend the benefits of this Agreement to inure to such participants. These third
party  participants  will be third party  beneficiaries  of Lead Lender's rights
under this Agreement.

<PAGE>

         IN WITNESS  WHEREOF,  the Lead Lender and the Borrower have each caused
this Agreement to be executed in duplicate counterparts and under seal as of the
day and year first written above.

                                        LEAD LENDER:

                                        /s/ Rudolf Wanner
                                        ----------------------------------------
                                        Rudolf Wanner, Individually

                                        BORROWER:

                                        ADEPT TECHNOLOGY, INC.

                                        By: /s/  Brian Carlisle
                                            ------------------------------------
                                            Brian Carlisle,
                                            Chief Executive Officer

                       [Signature Page to Loan Agreement]

<PAGE>

                                    EXHIBIT A

                                 PROMISSORY NOTE

                                                               Raleigh, N.C.
$800,000                                                       August 30, 2002

         FOR VALUE RECEIVED,  ADEPT TECHNOLOGY,  INC., a California  corporation
("Borrower"),  promises to pay to the order of Rudolf Wanner  ("Lead  Lender") ,
the principal sum of Eight Hundred Thousand Dollars  ($800,000),  or such lesser
amount as may be outstanding,  together with interest on the unpaid  outstanding
principal  balance at the rate per annum of one percent (1%) plus the prime rate
as published by the Wall Street Journal from time to time, on the unpaid balance
until paid or until default, both principal and interest payable in U.S. Dollars
to Lead Lender at Solothurn,  Switzerland,  or at such place as the legal holder
hereof may designate in writing.

         Accrued  interest  shall be paid  annually  by  Borrower  on the  first
anniversary  and each  successive  anniversary of this Note. If not sooner paid,
the entire  indebtedness  shall be due and payable on August 30, 2006.  Interest
shall be calculated from the date of each advance until repayment by Borrower of
each advance.

         This Note is given pursuant to the terms of a Loan  Agreement  dated as
of August 30, 2002, by and between Borrower and Lead Lender ("Loan Agreement").

         Borrower shall deliver to the Lead Lender  certificates  for registered
shares of Borrower  common  stock as provided  in the Stock  Issuance  Agreement
between Borrower and Lead Lender dated as of the date hereof, attached hereto as
Exhibit A and incorporated herein by reference.

         Disbursements  under  this Note shall be made as  provided  in the Loan
Agreement.  Unless  otherwise  provided,  this Note may be prepaid in full or in
part at any time  without  penalty  or  premium.  Partial  prepayments  shall be
applied to installments due in reverse order of their maturity. Payments will be
applied  first  to  payment  of  interest  then  accrued  and due on the  unpaid
principal balance, with the remainder applied to the unpaid principal.

In the event of: (a) default in payment of any  installment  of principal as the
same becomes due and such default is not cured within ten (10) days from the due
date, or (b) default under the terms of any  instrument  securing this Note, and
such  default is not cured  within  fifteen  (15) days after  written  notice to
maker, then in either such event the holder may without further notice,  declare
the remainder of the principal sum, at once due and payable. Failure to exercise
this option  shall not  constitute a waiver of the right to exercise the same at
any other time. The unpaid principal of this Note and any part thereof,  accrued
interest and all other sums due under this Note, if any,  shall bear interest at
the rate of fifteen per cent (15%) per annum after default which remains uncured
after the ten (10) day period  referenced above until paid. The interest payable
under the terms of this Note shall not exceed the maximum  amount  allowed under
applicable  law. If interest would otherwise be payable to Lead Lender in excess
of the maximum  lawful  amount,  the  interest  payable to Lead Lender  shall be
reduced to the maximum amount permitted under applicable law.

         All parties to this Note, including maker and any sureties,  endorsers,
or guarantors hereby waive protest, presentment,  notice of dishonor, and notice
of  acceleration  of  maturity  and agree to  continue  to remain  bound for the
payment  of  principal,  interest  and  all  other  sums  due  under  this  Note
notwithstanding  any change or changes by way or release,  surrender,  exchange,
modification  or  substitution  of any  security  for this Note or by way of any
extension or extensions of time for the payment of principal and interest.

         Upon  default the holder of this Note may employ an attorney to enforce
the  holder's  rights and remedies  and  Borrower  hereby  agrees to pay to Lead
Lender the reasonable costs of enforcement incurred by Lead Lender in exercising
any of the Lead Lender's  rights and remedies  upon  default,  including but not
limited to attorney's fees and costs of court,  and not exceeding a sum equal to
fifteen percent (15%) of the outstanding  balance owing on said Note. The rights
and remedies of the Borrower as provided in this Note and in the Loan  Agreement
shall be

<PAGE>

cumulative and may be pursued singly, successively,  or together. The failure to
exercise  any such  right or remedy  shall not be a waiver  or  release  of such
rights or remedies or the right to exercise any of them at another time.

         This Note is to be governed and construed in  accordance  with the laws
of the State of North  Carolina  without  regard to its  principles of choice of
laws or conflict of laws.

         IN  TESTIMONY  WHEREOF,  Borrower  has  caused  this  instrument  to be
executed in its corporate name by its Chief Executive  Officer,  all by order of
its Board of Directors first duly given, the day and year first above written.

         ADEPT TECHNOLOGY, INC.

         By:______________________________________
         Brian Carlisle, Chief Executive Officer

<PAGE>

                                    EXHIBIT A
                              (To Promissory Note)

                            STOCK ISSUANCE AGREEMENT

THIS  STOCK  ISSUANCE  AGREEMENT  (this  "Agreement")  is  entered  into  as  of
_____________,   2002,  by  and  among  Adept  Technology,  Inc.,  a  California
corporation   ("Borrower"),   and  Rudolf  Wanner,   a  resident  of  Solothurn,
Switzerland ("Lead Lender").

                                    RECITALS

         Borrower  and  the  Lead  Lender  are  parties  to  that  certain  Loan
Agreement,  dated as of the date hereof (the "Loan  Agreement")  providing for a
loan (the "Loan"),  in consideration for which,  Borrower has agreed to issue to
the Lead Lender,  shares of Borrower's common stock, no par value per share (the
"Borrower Common Stock") on the terms and conditions set forth herein.

                                    AGREEMENT

         NOW,  THEREFORE,  in  consideration  of the foregoing  recitals and the
covenants and  agreements in the Loan  Agreement and for other good and valuable
consideration,  the receipt and  sufficiency  of which are hereby  acknowledged,
Borrower and the Lead Lender hereby agree as follows:

         1. Issuance of Borrower  Common Stock. In  consideration  of making the
Loan  Commitment  contemplated  in the Loan Agreement (as an  origination  fee),
promptly  upon  execution  hereof,  Borrower  shall  issue to the Lead Lender an
aggregate of one hundred thousand (100,000) restricted shares of Borrower Common
Stock (the "Shares") subject to cancellation rights hereunder.  The Shares shall
be  retained  by  Borrower  for the  benefit  of the Lead  Lender  and  shall be
delivered to the Lead Lender or its  designee(s) in accordance with the terms of
this Agreement and the Loan Agreement.

         2. Delivery of Shares to Lead Lender.

                  (a)  Upon  each  disbursement  of  proceeds  of  the  Loan  to
Borrower,  Borrower shall promptly deliver to the Lead Lender or its designee(s)
as directed by the Lead Lender certificates for a number of Shares determined to
be 25,000  minus the number of Shares  cancelled  pursuant to an exercise of the
cancellation  right of Borrower set forth hereunder.  With each  disbursement of
the  proceeds of the Loan to the  Borrower or  election by the  Borrower  not to
borrow any amounts with respect to such three-month period,  Borrower may cancel
the restricted  shares issued hereunder in an amount determined by the following
formula: (X) 25,000 minus (Y) the product of: (i) a fraction,  (A) the numerator
of  which  is the  amount  of  proceeds  to be  disbursed  to  Borrower  in such
disbursement,  and (B) the denominator of which is Two Hundred  Thousand Dollars
($200,000) and (ii) twenty-five  thousand (25,000) shares. The maximum number of
Shares deliverable to the Lead Lender upon lapse of such cancellation rights for
each  three-month  period  shall  be  twenty-five  thousand  (25,000),  with  an
aggregate  maximum for all four consecutive  three-month  periods of One Hundred
Thousand  (100,000)  shares.  No fractional  shares shall be issued or delivered
pursuant to this Agreement,  so Shares  deliverable shall be rounded down to the
nearest Share.

                  (b) Upon exercise of Borrower's cancellation rights hereunder,
the  corresponding  proportion  of the Shares  cancelled  by  Borrower  for that
three-month period and not delivered to the Lead Lender or its designee(s) shall
be cancelled by Borrower and the Lead Lender or its  designee(s)  shall not have
any further right, title or interest in such Shares. This Agreement and the Loan
Agreement  contemplate  that the Lead Lender  shall not have the  obligation  to
disburse proceeds more than once in any three-month period.

                  (c) The Lead Lender shall  instruct  Borrower  with respect to
the  physical  delivery  of Shares for which  cancellation  rights  have  lapsed
pursuant  to  this  Section  2.  Borrower  shall  be  entitled  to  rely  on the
instructions

<PAGE>

provided by the Lead Lender,  and Borrower shall incur no liability and shall be
fully protected from any liability  whatsoever in acting in accordance with such
instructions received from the Lead Lender.

         3. Status of Shares Prior to Delivery.  Borrower shall issue,  hold and
safeguard the Shares prior to delivery in trust in accordance  with the terms of
this  Agreement  and the Loan  Agreement and not as the property of Borrower and
shall  deliver  such  Shares  to the  Lead  Lender  or its  designee(s)  only in
accordance with the terms hereof.  The Lead Lender shall have voting rights with
respect to the Shares prior to lapse of Borrower's  cancellation  rights (and on
any new Shares added to the shares held by Borrower in respect of such  shares).
Any  regular  cash  dividends  or  liquidation  proceeds  on the Shares  held by
Borrower (including the new Shares) shall be paid directly to the Lead Lender.

         4.  Registration  of  Shares.  The  Shares  shall  be  subject  to  the
registration  rights  set forth in the Merger  Agreement  among  Borrower,  Meta
Control  Technologies,  Inc.,  a  Delaware  corporation  ("Meta")  and the other
parties therein,  which is being approved by the Lead Lender as a stockholder of
Meta,  and  the  terms  of  Section  5.3  regarding   registration   rights  are
incorporated by reference herein, provided, however, that the obligation of Lead
Lender to make  disbursements  under the Loan Agreement  shall be subject to the
prior  registration  of the Shares under the  Securities Act of 1933, as amended
(the  "Act") and  delivery of  certificates  pursuant  to Section  2(a)  herein,
provided that all delivery  information for such  certificates has been promptly
furnished  to the  Borrower by Lead  Lender  pursuant to Section 2.3 of the Loan
Agreement.

         5.  Securities  Act  Exemption.  The  Shares  issued  pursuant  to this
Agreement  initially  will not be  registered  under the Act, in reliance on the
exemption set forth in Section 4(2) thereof. The Lead Lender shall have provided
Borrower such information  regarding its financial and investment background and
investment intent as Borrower may reasonably  request to ensure the availability
of an exemption from the registration requirements of the Act.

         6. Lead Lender Representations. The Lead Lender represents and warrants
to Borrower as follows:

                  (a) The Lead  Lender  acknowledges  that it has been  provided
with such information regarding Borrower necessary for the purposes of making an
investment  decision  with  respect to the  Shares,  and has been  provided  the
opportunity to discuss the business,  affairs and current  prospects of Borrower
with Borrower's representatives. The Lead Lender further acknowledges having had
access to information about Borrower that it has requested.

                  (b) The Shares  will be  acquired  for the Lead  Lender's  own
account for investment, and not with a view to or in connection with the sale or
distribution of any part thereof.

                  (c) The Lead Lender  understands that (a) the Shares initially
will not be  registered  under the Act, on the ground  that the  issuance of the
Shares provided for in this Agreement is exempt from registration under the Act;
(b) that the reliance of Borrower on such exemption is predicated in part on the
Lead Lender's  representations set forth in this Agreement; (c) the Shares being
issued  hereunder are  "restricted  securities":  within the meaning of Rule 144
under  the Act;  and (d) that the  Shares  are not  registered  and must be held
indefinitely   unless  they  are   subsequently   registered   pursuant  to  the
registration  rights  provided  in  the  Merger  Agreement  or  otherwise  or an
exemption from such registration is available.

                  (d) The Lead Lender  represents  that by reason of its (or its
management's) business or financial experience, the Lead Lender has the capacity
to protect its own interests in connection with the transactions contemplated by
this  Agreement.  Further,  the Lead  Lender is aware of no  publication  of any
advertisement in connection with the transactions contemplated in the Agreement.
The Lead Lender is an "accredited investor" within the meaning of Securities and
Exchange Commission Rule 501 of Regulation D, as presently in effect,  under the
Act.

         7. Stock Restrictions.  In addition to any legend imposed by applicable
state securities laws, the certificates  representing the Shares issued pursuant
to this  Agreement  shall bear a restrictive  legend (and stop

<PAGE>

transfer  orders shall be placed  against the transfer  thereof with  Borrower's
transfer agent), stating substantially as follows:

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT").  THEY MAY NOT
         BE SOLD,  TRANSFERRED,  ASSIGNED,  OR HYPOTHECATED IN THE ABSENCE OF AN
         EFFECTIVE  REGISTRATION  STATEMENT  RELATED  THERETO,  OR AN OPINION OF
         COUNSEL,  SATISFACTORY  TO THE COMPANY,  THAT SUCH  REGISTRATION IS NOT
         REQUIRED  UNDER THE ACT, OR A NO-ACTION  LETTER FROM THE SECURITIES AND
         EXCHANGE COMMISSION.

         8. Notices  Except as may be otherwise  provided  herein,  all notices,
requests, waivers and other communications made pursuant to this Agreement shall
be in writing and shall be conclusively  deemed to have been duly given (a) when
hand delivered to the other party; (b) when sent by facsimile at the address and
number set forth below;  (c) three (3) business  days after  deposit in the U.S.
mail with first class or certified mail receipt  requested  postage  prepaid and
addressed  to the other party as set forth below (or ten (10)  business  days if
sent by U.S. mail outside the United States); or (d) the next business day after
deposit with a national overnight delivery service,  postage prepaid,  addressed
to the parties as set forth below with next-business-day delivery guaranteed.

         if to Borrower, to:

                           Adept Technology, Inc.
                           150 Rose Orchard Way
                           San Jose, California 95134
                           Attn:  Michael W. Overby, Chief Financial Officer
                           Telephone:  (408) 432-0888
                           Facsimile:  (408) 434-5005

                           with a copy (which shall not constitute notice) to

                           Gibson, Dunn & Crutcher LLP
                           1530 Page Mill Road
                           Palo Alto, California  94304
                           Attn:  Lawrence Calof, Esq.
                           Telephone:  (650) 849-5300
                           Facsimile:  (650) 849-5333

         if to a Lead Lender, to:

                           Rudolf Wanner
                           c/o Infotech AG
                           Vogelherdstrasse 4
                           CH 4500 Solothurn
                           Switzerland
                           Attn:  Rudolf Wanner
                           Telephone:  011-41-32-622-4782
                           Facsimile:   011-41-32-621-4782

         A party  may  change  or  supplement  the  addresses  given  above,  or
designate  additional  addresses  for  purposes of this  Section 8 by giving the
other parties written notice of the new address in the manner set forth above.

         9.  Counterparts.  This  Agreement  may be  executed  in  one  or  more
counterparts,  all of which shall be considered  one and the same  agreement and
shall become effective when one or more counterparts have been signed by each of
the parties and  delivered  to the other  party,  it being  understood  that all
parties need not sign the same counterpart.

<PAGE>

         10. Entire Agreement;  Assignment. This Agreement and the documents and
instruments and other agreements among the parties hereto referenced herein: (a)
constitute  the entire  agreement  among the parties with respect to the subject
matter  hereof and  supersede  all prior  agreements  and  understandings,  both
written and oral,  among the parties with respect to the subject  matter hereof;
(b) are not  intended  to confer  upon any other  person any rights or  remedies
hereunder;  and (c) shall not be assigned by the Lead Lender by operation of law
or otherwise  except with the prior written  consent of the Borrower;  provided,
that any person into which  Borrower may be merged or converted or with which it
may be  consolidated  or any person  resulting  from any merger,  conversion  or
consolidation  to which it shall be a party or any person to which  Borrower may
sell or transfer all or  substantially  all of its assets shall be the successor
hereunder to Borrower without the consent of any party hereto,  or the execution
or filing of any paper or any further act. As used in this  Agreement,  the term
"person" means any  individual,  partnership,  corporation,  association,  joint
stock company, trust, joint venture, unincorporated organization or Governmental
Entity (or any department, agency or political subdivision thereof)

         11. Severability.  In the event that any provision of this Agreement or
the  application  thereof,  becomes  or is  declared  by a  court  of  competent
jurisdiction  to be  illegal,  void  or  unenforceable,  the  remainder  of this
Agreement  will  continue in full force and effect and the  application  of such
provision to other persons or circumstances will be interpreted so as reasonably
to effect the intent of the parties hereto. The parties further agree to replace
such  void or  unenforceable  provision  of  this  Agreement  with a  valid  and
enforceable  provision that will achieve, to the extent possible,  the economic,
business and other purposes of such void or unenforceable provision.

         12. Governing Law. This Agreement shall be governed by and construed in
accordance  with the laws of the State of Delaware,  regardless of the laws that
might otherwise govern under applicable principles of conflicts of laws thereof.

         13.  Adjustments.  All  references  to the number of shares of Borrower
Common Stock in this Agreement  shall be  appropriately  adjusted to reflect any
stock split,  stock  dividend,  merger or other similar change in the Borrower's
capitalization which may occur after the effective date of this Agreement.

                  [Remainder of Page Intentionally Left Blank]

<PAGE>

         IN WITNESS WHEREOF, Borrower and the Lead Lender have caused this Stock
Issuance Agreement to be signed as of the date first written above.

ADEPT TECHNOLOGY, INC.
a California corporation

By: __________________________________________
         Brian R. Carlisle
         Chairman and Chief Executive Officer

______________________________________________
            Rudolf Wanner

                  [Signature Page to Stock Issuance Agreement]<PAGE>
                          STRATTEC SECURITY CORPORATION
                              STOCK INCENTIVE PLAN
                     (As amended effective October 8, 2002)

         1. Purpose; Definitions. The purpose of the Plan is to enable key
employees of the Company, its subsidiaries and affiliates to participate in the
Company's future by offering them proprietary interests in the Company. The Plan
also provides a means through which the Company can attract and retain key
employees of merit.

                  For purposes of the Plan, the following terms are defined as
set forth below:

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

                  (b) "Code" means the Internal Revenue Code of 1986, as amended
from time to time, and any successor thereto.

                  (c) "Commission" means the Securities and Exchange Commission
or any successor agency.

                  (d) "Committee" means the Committee referred to in Section 2.

                  (e) "Company" means STRATTEC SECURITY CORPORATION, a
corporation organized under the laws of the State of Wisconsin, or any successor
corporation.

                  (f) "Disability" means permanent and total disability as
determined under procedures established by the Committee for purposes of the
Plan.

                  (g) "Early Retirement" means retirement, with the consent of
and for purposes of the Company, from active employment with the Company, a
subsidiary or affiliate pursuant to the early retirement provisions of the
applicable pension plan of such employer.

                  (h) "Exchange Act" means the Securities Exchange Act of 1934,
as amended from time to time, and any successor thereto.

                  (i) "Fair Market Value" means, except as provided in Sections
5(k) and 6(b)(ii): (i) with respect to Non-Qualified Stock Options granted in
connection with the distribution of Stock made by Briggs & Stratton Corporation
to its shareholders, the average closing price of the Stock on the NASDAQ
National Market System during the five trading days after the effective date of
such distribution; and (ii) in all other instances, the mean, as of any given
date, between the highest and lowest reported sales prices of the Stock on the
NASDAQ National Market System or, if no such sale of Stock occurs on the NASDAQ
National Market System on such date, the fair market value of the Stock as
determined by the Committee in good faith.

<PAGE>

                  (j) "Incentive Stock Option" means any Stock Option intended
to be and designated as an "incentive stock option" within the meaning of
Section 422 of the Code.

                  (k) "Non-Employee Director" shall have the meaning set forth
in Rule 16b-3(b)(3)(i), as promulgated by the Commission under the Exchange Act,
or any successor definition adopted by the Commission.

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

                  (m) "Normal Retirement" means retirement from active
employment with the Company, a subsidiary or affiliate at or after age 65.

                  (n) "Plan" means the STRATTEC SECURITY CORPORATION Stock
Incentive Plan, as set forth herein and as hereinafter amended from time to
time.

                  (o) "Retirement" means Normal Retirement or Early Retirement.

                  (p) "Rule 16b-3" means Rule 16b-3, as promulgated by the
Commission under Section 16(b) of the Exchange Act, as amended from time to
time.

                  (q) "Stock" means the Common Stock, $.01 par value per share,
of the Company.

                  (r) "Stock Appreciation Right" means a right granted under
Section 6.

                  (s) "Stock Option" or "Option" means an Option or Leveraged
Stock Option granted under Section 5.

                  In addition, the terms "Change in Control" and "Change in
Control Price" have the meanings set forth in Sections 7(b) and (c),
respectively, and other capitalized terms used herein shall have the meanings
ascribed to such terms in the relevant section of this Plan.

         2. Administration. The Plan shall be administered by the Compensation
Committee of the Board or such other committee of the Board, composed solely of
two or more Non-Employee Directors, who shall be appointed by the Board and who
shall serve at the pleasure of the Board. If at any time no Committee shall be
in office, the functions of the Committee specified in the Plan shall be
exercised by the Board.

                  The Committee shall have plenary authority to grant to
eligible employees, pursuant to the terms of the Plan, Stock Options and Stock
Appreciation Rights.

                  In particular, the Committee shall have the authority, subject
to the terms of the Plan:

                                       2
<PAGE>

                  (a) to select the officers and other key employees to whom
Stock Options and Stock Appreciation Rights may from time to time be granted;

                  (b) to determine whether and to what extent Incentive Stock
Options, Non-Qualified Stock Options and Stock Appreciation Rights or any
combination thereof are to be granted hereunder,

                  (c) to determine the number of shares to be covered by each
award granted hereunder,

                  (d) to determine the terms and conditions of any award granted
hereunder (including, but not limited to, the share price, any restriction or
limitation and any vesting acceleration or forfeiture waiver regarding any Stock
Option or other award and the shares of Stock relating thereto, based on such
factors as the Committee shall determine);

                  (e) to adjust the performance goals and measurements
applicable to performance-based awards pursuant to the terms of the Plan;

                  (f) to determine under what circumstances a Stock Option may
be settled in cash under Section 5(k); and

                  (g) to determine to what extent and under what circumstances
Stock and other amounts payable with respect to an award shall be deferred.

The Committee shall have the authority to adopt, alter and repeal such
administrative rules, guidelines and practices governing the Plan as it shall,
from time to time, deem advisable, to interpret the terms and provisions of the
Plan and any award issued under the Plan (and any agreement relating thereto)
and to otherwise supervise the administration of the Plan.

                  The Committee may act only by a majority of its members then
in office, except that the members thereof may authorize any one or more of
their number or any officer of the Company to execute and deliver documents on
behalf of the Committee.

                  Any determination made by the Committee pursuant to the
provisions of the Plan with respect to any award shall be made in its sole
discretion at the time of the grant of the award or, unless in contravention of
any express term of the Plan, at any time thereafter. All decisions made by the
Committee pursuant to the provisions of the Plan shall be final and binding on
all persons, including the Company and Plan participants.

         3. Stock Subject to Plan. The total number of shares of Stock reserved
and available for distribution under the Plan shall be 1,600,000 shares. Such
shares may consist, in whole or in part, of authorized and unissued shares or
treasury shares.

                  Subject to Section 6(b)(iv), if any shares of Stock that have
been optioned cease to be subject to a Stock Option or if any Stock Option or
other award otherwise terminates

                                       3
<PAGE>

without a payment being made to the participant in the form of Stock, such
shares shall again be available for distribution in connection with awards under
the Plan.

                  In the event of any merger, reorganization, consolidation,
recapitalization, stock dividend, stock split or other change in corporate
structure affecting the Stock, such substitution or adjustments shall be made in
the aggregate number of shares reserved for issuance under the Plan, in the
number and option price of shares subject to outstanding Stock Options and in
the number of shares subject to other outstanding awards granted under the Plan
as may be determined to be appropriate by the Board, in its sole discretion;
provided, however, that the number of shares subject to any award shall always
be a whole number. Such adjusted option price shall also be used to determine
the amount payable by the Company upon the exercise of any Stock Appreciation
Right associated with any Stock Option.

         4. Eligibility. Officers and other key employees of the Company, its
subsidiaries and affiliates (but excluding members of the Committee and any
person who serves only as a director) who are responsible for or contribute to
the management, growth and profitability of the business of the Company, its
subsidiaries or affiliates are eligible to be granted awards under the Plan.

         5. Stock Options. Stock Options may be granted alone or in addition to
other awards granted under the Plan and may be of two types: Incentive Stock
Options and Non-Qualified Stock Options. Any Stock Option granted under the Plan
shall be in such form as the Committee may from time to time approve.

                  The Committee shall have the authority to grant to any
optionee Incentive Stock Options, Non-Qualified Stock Options or both types of
Stock Options (in each case with or without Stock Appreciation Rights).

                  Incentive Stock Options may be granted only to employees of
the Company and its subsidiaries (within the meaning of Section 425(f) of the
Code). To the extent that any Stock Option does not qualify as an Incentive
Stock Option, it shall constitute a separate Non-Qualified Stock Option.

                  Stock Options shall be evidenced by option agreements, the
terms and provisions of which may differ. An option agreement shall indicate on
its face whether it is an agreement for Incentive Stock Options or NonQualified
Stock Options. The grant of a Stock Option shall occur on the date the Committee
by resolution selects an employee as a participant in any grant of Stock
Options, determines the number of Stock Options to be granted to such employee
and specifies the terms and provisions of the option agreement. The Company
shall notify a participant of any grant of Stock Options, and a written option
agreement or agreements shall be duly executed and delivered by the Company.

                  Anything in the Plan to the contrary notwithstanding, no term
of the Plan relating to Incentive Stock Options shall be interpreted, amended or
altered nor shall any discretion or authority granted under the Plan be
exercised so as to disqualify the Plan under

                                       4
<PAGE>

Section 422 of the Code or, without the consent of the optionee affected, to
disqualify any Incentive Stock Option under such Section 422.

                  Options granted under the Plan shall be subject to the
following terms and conditions and shall contain such additional terms and
conditions as the Committee shall deem desirable:

                  (a) Option Price. The option price per share of Stock
purchasable under a Stock Option shall be equal to the Fair Market Value of the
Stock at time of grant or such higher price as shall be determined by the
Committee at grant.

                  (b) Option Term. The term of each Stock Option shall be fixed
by the Committee, but no Incentive Stock Option shall be exercisable more than
10 years after the date the Option is granted, and no Non-Qualified Stock Option
shall be exercisable more than 10 years and one day after the date the Option is
granted.

                  (c) Exercisability. Stock Options shall be exercisable at such
time or times and subject to such terms and conditions as shall be determined by
the Committee. If the Committee provides that any Stock Option is exercisable
only in installments, the Committee may at any time waive such installment
exercise provisions, in whole or in part, based on such factors as the Committee
may determine.

                  (d) Method of Exercise. Subject to the provisions of this
Section 5, Stock Options may be exercised, in whole or in part, at any time
during the option period by giving written notice of exercise to the Company
specifying the number of shares to be purchased.

                           Such notice shall be accompanied by the payment in
full of the purchase price for such shares or, to the extent authorized by the
Committee, by irrevocable instructions to a broker to promptly pay to the
Company in full the purchase price for such shares. Such payment shall be made
in cash, outstanding shares of Stock, in combinations thereof, or any other
method of payment approved by the Committee; provided, however, that the deposit
of any withholding tax shall be made in accordance with applicable law. If
shares of Stock are being used in part or full payment for the shares to be
acquired upon exercise of the Stock Option, such shares shall be valued for the
purpose of such exchange as of the date of exercise of the Stock Option at the
Fair Market Value of the shares. Any certificates evidencing shares of Stock
used to pay the purchase price shall be accompanied by stock powers duly
endorsed in blank by the registered holder of the certificate (with signatures
thereon guaranteed). In the event the certificates tendered by the holder in
such payment cover more shares than are required for such payment, the
certificate shall also be accompanied by instructions from the holder to the
Company's transfer agent with regard to the disposition of the balance of the
shares covered thereby.

                           No shares of Stock shall be issued until full payment
therefor has been made. An optionee shall have all of the rights of a
stockholder of the Company, including the right to vote the shares and the right
to receive dividends, with respect to shares subject to the

                                       5
<PAGE>

Stock Option when the optionee has given written notice of exercise, has paid in
full for such shares and, if requested, has given the representation described
in Section 11(a).

                  (e) Non-transferability of Options. No Stock Option shall be
transferable by the optionee other than by will or by laws of descent and
distribution, and all Stock Options shall be exercisable, during the optionee's
lifetime, only by the optionee or by the guardian or legal representative of the
optionee, it being understood that the terms "holder" and "optionee" include the
guardian and legal representative of the optionee named in the option agreement
and any person to whom an option is transferred by will or the laws of descent
and distribution.

                  (f) Termination by Death. Subject to Section 5(j), if an
optionee's employment terminates by reason of death, any Stock Option held by
such optionee may thereafter be exercised, to the extent then exercisable or on
such accelerated basis as the Committee may determine, for a period of one year
(or such other period as the Committee may specify) from the date of such death
or until the expiration of the stated term of such Stock Option, whichever
period is the shorter.

                  (g) Termination by Reason of Disability. Subject to Section
5(j), if an optionee's employment terminates by reason of Disability, any Stock
Option held by such optionee may thereafter be exercised by the optionee, to the
extent it was exercisable at the time of termination or on such accelerated
basis as the Committee may determine, for a period of three years (or such
shorter period as the Committee may specify at grant) from the date of such
termination of employment or until the expiration of the stated term of such
Stock Option, whichever period is the shorter; provided, however, that, if the
optionee dies within such three-year period (or such shorter period), any
unexercised Stock Option held by such optionee shall, notwithstanding the
expiration of such three-year (or such shorter) period, continue to be
exercisable to the extent to which it was exercisable at the time of death for a
period of 12 months from the date of such death or until the expiration of the
stated term of such Stock Option, whichever period is the shorter. In the event
of termination of employment by reason of Disability, if an Incentive Stock
Option is exercised after the expiration of the exercise periods that apply for
purposes of Section 422 of the Code, such Stock Option will thereafter be
treated as a Non-Qualified Stock Option.

                  (h) Termination by Reason of Retirement. Subject to Section
5(j), if an optionee's employment terminates by reason of Retirement, any Stock
Option held by such optionee may thereafter be exercised by the optionee, to the
extent it was exercisable at the time of such Retirement or on such accelerated
basis as the Committee may determine, for a period of three years (or such
shorter period as the Committee may specify at grant) from the date of such
termination of employment or until the expiration of the stated term of such
Stock Option, whichever period is the shorter, provided, however, that, if the
optionee dies within such three-year (or such shorter) period any unexercised
Stock option held by such optionee shall, notwithstanding the expiration of such
three-year (or such shorter) period, continue to be exercisable to the extent to
which it was exercisable at the time of death for a period of 12 months from the
date of such death or until the expiration of the stated term of such Stock
Option, whichever period is the shorter. In the event of termination of
employment by reason of

                                       6
<PAGE>

Retirement, if an Incentive Stock Option is exercised after the expiration of
the exercise periods that apply for purposes of Section 422 of the Code, such
Stock Option will thereafter be treated as a Non-Qualified Stock Option.

                  (i) Other Termination. Unless otherwise determined by the
Committee, if an optionee's employment terminates for any reason other than
death, Disability or Retirement, the Stock Option shall thereupon terminate,
except that such Stock Option, to the extent then exercisable, may be exercised
for the lesser of three months or the balance of such Stock Option's term if the
optionee is involuntarily terminated by the Company, a subsidiary or affiliate
without cause. Notwithstanding the foregoing, if an optionee's employment
terminates at or after a Change in Control (as defined in Section 7(b)), other
than by reason of death, Disability or Retirement, any Stock Option held by such
optionee shall be exercisable for the lesser of (x) six months and one day, and
(y) the balance of such Stock Option's term pursuant to Section 5(b).

                  (j) Incentive Stock Option Limitations. To the extent required
for "incentive stock option" status under Section 422 of the Code, the aggregate
Fair Market Value (determined as of the time of grant) of the Stock with respect
to which Incentive Stock Options granted after 1986 are exercisable for the
first time by the optionee during any calendar year under the Plan and any other
stock option plan of any subsidiary or parent corporation (within the meaning of
Section 425 of the Code) after 1986 shall not exceed $100,000.

                           The Committee is authorized to provide at grant that,
to the extent permitted under Section 422 of the Code, if a participant's
employment with the Company and its subsidiaries is terminated by reason of
death, Disability or Retirement and the portion of any Incentive Stock Option
that is otherwise exercisable during the post-termination period specified under
Sections 5(f), (g), or (h), applied without regard to this Section 5(j), is
greater than the portion of such option that is exercisable as an "incentive
stock option" during such post-termination period under Section 422, such
post-termination period shall automatically be extended (but not beyond the
original option term) to the extent necessary to permit the optionee to exercise
such Incentive Stock Option (either as an. Incentive Stock Option or, if
exercised after the expiration periods that apply for the purposes of Section
422, as a Non-Qualified Stock Option).

                  (k) Cashing Out of Option. On receipt of written notice of
exercise, the Committee may elect to cash out all or part of the portion of any
Stock Option to be exercised by paying the optionee an amount, in cash or Stock,
equal to the excess of the Fair Market Value of the Stock over the option price
(the "Spread Value") on the effective date of such cash out.

                           Cash outs relating to options held by optionees who
are actually or potentially subject to Section 16(b) of the Exchange Act shall
comply with the provisions of Rule 16b-3, to the extent applicable, and, in the
case of cash outs of Non-Qualified Stock Options held by such optionees, the
Committee may determine Fair Market Value under the pricing rule set forth in
Section 6(b)(ii).

                                       7
<PAGE>

                  (l) Leveraged Stock Options. Any of the shares of Stock
reserved and available for distribution under the Plan may be used for grants of
"Leveraged Stock Options" pursuant to the Company's Leveraged Stock Option
Program described below (the "LSO Program").

                           (i) Objectives. The LSO Program is designed to build
upon the Company's Economic Value Added Incentive Compensation Plan ("EVA Plan")
by tying the interests of certain senior executives ("Senior Executives") to the
long term consolidated results of the Company. In this way, the objectives of
Senior Executives will be more closely aligned with the Company's shareholders.
Whereas the EVA Plan provides for near and intermediate term rewards, the LSO
Program provides a longer term focus by allowing Senior Executives to
participate in the long-term appreciation in the equity value of the Company. In
general, the LSO Program is structured such that each year an amount equivalent
to the Total Bonus Payout under the EVA Plan is invested on behalf of Senior
Executives in options on the Company's Stock ("LSOs"). These LSOs become
exercisable after they have been held for three years, and they expire at the
end of five years. The LSO Program is also structured so that a fair return must
be provided to the Company's shareholders before the options become valuable.

                           (ii) Leveraged Stock Option Grant. For fiscal 1995
and subsequent years, the dollar amount to be invested in LSOs for each Senior
Executive shall be equal to the amount of each Senior Executive's Total Bonus
Payout determined under the EVA Plan effective for the applicable fiscal year.
The number of LSOs awarded shall be determined by dividing (a) the dollar amount
of such LSO award by (b) 10% of the Fair Market Value of Company stock on the
date of the grant, as determined by the Committee, rounded (up or down) to the
nearest 10 shares.

                           (iii) Term. All LSOs shall be exercisable beginning
on the third anniversary of the date of. grant, and shall terminate on the fifth
anniversary of the date of grant unless sooner exercised, unless the Committee
determines other dates.

                           (iv) Exercise Price. The exercise price for LSOs
shall be the product of 90% of the Fair Market Value per share as determined
above, times the sum taken to the fifth (5th) power of (a) 1, plus (b) the
Estimated Annual Growth Rate, but in no event may the exercise price be less
than Fair Market Value on the date of grant. The Estimated Annual Growth Rate
(intended to represent annual percentage stock appreciation at least in the
amount of the Company's cost of capital, with due consideration for dividends
paid, risk and illiquidity) is the average daily closing 30-year U.S. Treasury
bond yield rate for the month of April immediately preceding the relevant Plan
year, plus 2%. So,

Exercise Price = (.9 X FMV) X (1 + Estimated Annual Growth Rate)(5)

Example:    $15 share price; 9.75% Estimated Annual Growth Rate (7.75% 30-year
            U.S. Treasury bond rate, plus 2%): $13.50 (90% FMV)
            X (1.0975)(5) = $21.50

                           (v) Limitations on LSO Grants and Carryover.
Notwithstanding subsection (l)(ii), the maximum number of LSOs that may be
granted to all

                                       8
<PAGE>

Senior Executives for any Plan year during the five (5) year term of this LSO
Program, shall be 80,000. In the event that the 80,000 limitation shall be in
effect for any Plan year, the dollar amount to be invested for each Senior
Executive shall be reduced by proration based on the aggregate Total Bonus
Payouts of all Senior Executives so that the limitation is not exceeded. The
amount of any such reduction shall be carried forward to subsequent years and
invested in LSOs to the extent the annual limitation is not exceeded in such
years.

                           (vi) The Plan. Except as modified herein, LSOs are
Incentive Stock Options to the extent they are eligible for treatment as such
under Section 422 of the Internal Revenue Code. If not eligible for Incentive
Stock Option treatment, the LSOs shall constitute Non-Qualified Stock Options.
Except as specifically modified herein, LSOs shall be governed by the terms of
the Plan.

         6. Stock Appreciation Rights.

                  (a) Grant and Exercise. Stock Appreciation Rights may be
granted in conjunction with all or part of any Stock Option granted under the
Plan. In the case of a Non-Qualified Stock Option, such rights may be granted
either at or after the time of grant of such Stock Option. In the case of an
Incentive Stock Option, such rights may be granted only at the time of grant of
such Stock Option.

                           A Stock Appreciation Right or applicable portion
thereof granted with respect to a given Stock Option shall terminate and no
longer be exercisable upon the termination or exercise of the related Stock
Option, except that, unless otherwise determined by the Committee at the time of
grant, a Stock Appreciation Right granted with respect to less than the full
number of shares covered by a related Stock Option shall not be reduced until
the number of shares covered by an exercise or termination of the related Stock
Option exceeds the number of shares not covered by the Stock Appreciation Right.

                           A Stock Appreciation Right may be exercised by an
optionee in accordance with Section 6(b) by surrendering the applicable portion
of the related Stock Option in accordance with procedures established by the
Committee. Upon such exercise and surrender, the optionee shall be entitled to
receive an amount determined in the manner prescribed in Section 6(b). Stock
Options which have been so surrendered shall no longer be exercisable to the
extent the related Stock Appreciation Rights have been exercised.

                  (b) Terms and Conditions. Stock Appreciation Rights shall be
subject to such terms and conditions as shall be determined by the Committee,
including the following:

                           (i) Stock Appreciation Rights shall be exercisable
only at such time or times and to the extent that the Stock Options to which
they relate are exercisable in accordance with the provisions of Section 5 and
this Section 6.

                           (ii) Upon the exercise of a Stock Appreciation Right,
an optionee shall be entitled to receive an amount in cash, shares of Stock or
both equal in value to the excess of the Fair Market Value of one share of Stock
over the option price per share

                                       9
<PAGE>
specified in the related Stock Option multiplied by the number of shares in
respect of which the Stock Appreciation Right shall have been exercised, with
the Committee having the right to determine the form of payment.

                                 In the case of Stock Appreciation Rights
relating to Stock Options held by optionees who are actually or potentially
subject to Section 16(b) of the Exchange Act, the Committee may require that
such Stock Appreciation Rights be exercised only in accordance with the
applicable provisions of Rule 16b-3.

                           (iii) Stock Appreciation Rights shall be transferable
only when and to the extent that the underlying Stock Option would be
transferable under Section 5(e).

                           (iv) Upon the exercise of a Stock Appreciation Right,
the Stock Option or part thereof to which such Stock Appreciation Right is
related shall be deemed to have been exercised for the purpose of the limitation
set forth in Section 3 on the number of shares of Stock to be issued under the
Plan, but only to the extent of the number of shares issued under the Stock
Appreciation Right at the time of exercise based on the value of the Stock
Appreciation Right at such time.

         7. Change In Control Provisions.

                  (a) Impact of Event. Notwithstanding any other provision of
the Plan to the contrary, in the event of a Change in Control (as defined in
Section 7(b)), any Stock Appreciation Rights and Stock Options outstanding as of
the date such Change in Control is determined to have occurred and not then
exercisable and vested shall become fully exercisable and vested to the full
extent of the original grant.

                  (b) Definition of Change in Control. For purposes of the Plan,
a "Change in Control" shall mean the happening of any of the following events:

                           (i) The acquisition by any individual, entity or
group (within the meaning of Section 13(d) (3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act")) (a "Person") of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 20% or more of either (i) the then outstanding shares of Stock
of the Company (the "outstanding Company Common Stock") or (ii) the combined
voting power of the then outstanding voting securities of the Company entitled
to vote generally in the election of directors (the "Outstanding Company Voting
Securities"); provided, however, that the following acquisitions shall not
constitute a Change in Control: (i) any acquisition directly from the Company,
(ii) any acquisition by the Company, (iii) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company or (iv) any acquisition by any corporation
pursuant to a transaction described in clauses (i), (ii) and (iii) of paragraph
(3) of this subsection (b) of this Section 7; or

                           (ii) Individuals who, as of February 27, 1995,
constitute the Board (the "Incumbent Board") cease for any reason to constitute
at least a majority of the Board; provided, however, that any individual
becoming a director subsequent to February 27,

                                       10
<PAGE>

1995 whose election, or nomination for election by the Company's shareholders,
was approved by a vote of at least a majority of the directors then comprising
the Incumbent Board shall be considered as though such individual were a member
of the Incumbent Board, but excluding, for this purpose, any such individual
whose initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other
actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board; or

                           (iii) Approval by the shareholders of the Company of
a reorganization, merger or consolidation (a "Business Combination"), in each
case, unless, following such Business Combination, (i) 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 Business Combination beneficially own, directly or
indirectly, more than 60% 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 Business Combination (including,
without limitation, a corporation which as a result of such transaction owns the
Company through one or more subsidiaries) in substantially the same proportions
as their ownership, immediately prior to such Business Combination of the
Outstanding Company Common Stock and Outstanding Company Voting Securities, as
the case may be, (ii) no Person (excluding any employee benefit plan (or related
trust) of the Company or such corporation resulting from such Business
Combination) beneficially owns, directly or indirectly, 20% or more of,
respectively, the then outstanding shares of common stock of the corporation
resulting from such Business Combination or the combined voting power of the
then outstanding voting securities of such corporation except to the extent that
such ownership existed prior to the Business Combination and (iii) at least a
majority of the members of the board of directors of the corporation resulting
from such Business Combination were members of the Incumbent Board at the time
of the execution of the initial agreement, or of the action of the Board,
providing for such Business Combination; or

                           (iv) Approval by the shareholders of the Company of
(i) a complete liquidation or dissolution of the Company or (ii) the sale or
other disposition of all or substantially all of the assets of the Company,
other than to a corporation, with respect to which following such sale or other
disposition, (A) more than 60% of, respectively, the then outstanding shares of
common stock of such corporation and the combined voting power of the then
outstanding voting securities of such corporation entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly, by
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 sale or other disposition in
substantially the same proportion as their ownership, immediately prior to such
sale or other disposition, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be, (B) less than 20% of,
respectively, the then outstanding shares of common stock of such corporation
and the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by any Person (excluding any
employee benefit plan (or related trust) of the Company or such

                                       11
<PAGE>

corporation), except to the extent that such Person owned 20% or more of the
Outstanding Company Common Stock or Outstanding Company Voting Securities prior
to the sale or disposition and (C) at least a majority of the members of the
board of directors of such corporation were members of the Incumbent Board at
the time of the execution of the initial agreement, or of the action of the
Board, providing for such sale or other disposition of assets of the Company or
were elected, appointed or nominated by the Board.

                  (c) Change in Control Price. For purposes of the Plan, "Change
in Control Price" means the highest price per share paid in any transaction
reported on the NASDAQ National Market System or paid or offered in any bona
fide transaction related to a potential or actual change in control of the
Company at any time during the preceding 60 day period as determined by the
Committee, except that, in the case of Incentive Stock Options and Stock
Appreciation Rights relating to Incentive Stock Options, such price shall be
based only on transactions reported for the date on which the Committee decides
to cash out such options.

         8. Amendments and Termination. The Board may amend, alter or
discontinue the Plan but no amendment, alteration or discontinuation shall be
made (i) which would impair the rights of an optionee under a Stock Option or a
recipient of a Stock Appreciation Right theretofore granted without the
optionee's or recipient's consent or (ii) which, without the approval of the
Company's stockholders, would:

                  (a) except as expressly provided in the Plan, increase the
total number of shares reserved for the purpose of the Plan;

                  (b) except as expressly provided in the Plan, decrease the
option price of any Stock Option to less than the Fair Market Value on the date
of grant;

                  (c) change the class of employees eligible to participate in
the Plan;

                  (d) extend the maximum option period under Section 5(b);

                  (e) otherwise materially increase the benefits to participants
in the Plan; or

                  (f) amend Section 9 or this Section 8.

                  The Committee may amend the terms of any Stock Option or other
award theretofore granted, prospectively or retroactively, but no such amendment
shall impair the rights of any holder without the holder's consent.

                  Subject to the above provisions, the Board shall have
authority to amend the Plan to take into account changes in law and tax and
accounting rules, as well as other developments.

         9. Repricing. Except for adjustments pursuant to Section 3, neither the
per share option price for any Stock Option granted pursuant to Section 5 or the
per share grant price

                                       12
<PAGE>

for any Stock Appreciation Right granted pursuant to Section 6 may be decreased
after the date of grant nor may an outstanding Stock Option or an outstanding
Stock Appreciation Right be surrendered to the Company as consideration for the
grant of a new Stock Option or new Stock Appreciation Right with a lower
exercise or grant price without the approval of the Company's stockholders.

         10. Unfunded Status of Plan. It is presently intended that the Plan
constitute an "unfunded" plan for incentive and deferred compensation. The
Committee may authorize the creation of trusts or other arrangements to meet the
obligations created under the Plan to deliver Stock or make payments; provided,
however, that, unless the Committee otherwise determines, the existence of such
trusts or other arrangements is consistent with the "unfunded" status of the
Plan.

         11. General Provisions.

                  (a) The Committee may require each person purchasing shares
pursuant to a Stock Option to represent to and agree with the Company in writing
that the optionee or participant is acquiring the shares without a view to the
distribution thereof. The certificates for such shares may include any legend
which the Committee deems appropriate to reflect any restrictions on transfer.

                           All certificates for shares of Stock or other
securities delivered under the Plan shall be subject to such stock transfer
orders and other restrictions as the Committee may deem advisable under the
rules, regulations and other requirements of the Commission, any stock exchange
upon which the Stock is then listed and any applicable federal or state
securities law, and the Committee may cause a legend or legends to be put on any
such certificates to make appropriate reference to such restrictions.

                  (b) Nothing contained in this Plan shall prevent the Company,
a subsidiary or affiliate from adopting other or additional compensation
arrangements for its employees.

                  (c) The adoption of the Plan shall not confer upon any
employee any right to continued employment nor shall it interfere in any way
with the right of the Company, a subsidiary or affiliate to terminate the
employment of any employee at any time.

                  (d) No later than the dates as of which an amount first
becomes includable in the gross income of the participant for federal income tax
purposes with respect to any award under the Plan, the participant shall pay to
the Company, or make arrangements satisfactory to the Company regarding the
payment of, any federal, state, local or foreign taxes of any kind required by
law to be withheld with respect to such amount. Unless otherwise determined by
the Company, withholding obligations may be settled with Stock, including Stock
that is part of the award that gives rise to the withholding requirement. The
obligations of the Company under the Plan shall be conditional on such payment
or arrangements, and the Company, its subsidiaries and affiliates shall, to the
extent permitted by law, have the right to deduct any such taxes from any
payment otherwise due to the participant.

                                       13
<PAGE>

                  (e) At the time of grant, the Committee may provide in
connection with any grant made under this Plan that the shares of Stock received
as a result of such grant shall be subject to a right of first refusal pursuant
to which the participant shall be required to offer to the Company any shares
that the participant wishes to sell at the then Fair Market Value of the Stock,
subject to such other terms and conditions as the Committee may specify at the
time of grant.

                  (f) The Committee shall establish such procedures as it deems
appropriate for a participant to designate a beneficiary to whom any amounts
payable in the event of the participant's death are to be paid.

                  (g) The Plan and all awards made and actions taken thereunder
shall be governed by and construed in accordance with the laws of the State of
Wisconsin.

                                       14

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