Document:

Prepared by MerrillDirect

EXHIBIT 10.6

AMENDMENT TO STOCK OPTION AGREEMENT

Company:                      Gardenburger,
Inc., formerly known as Wholesome & Hearty Foods, Inc., an Oregon
corporation

Optionee:                       Paul
F. Wenner

Original Agreement:    That Paul F. Wenner Stock Option Agreement
dated effective as of January 20, 1992

AGREEMENT

                           In
consideration of the mutual covenants set forth in this Amendment, Company and
Optionee mutually agree as follows:

                           1.          Section 3(a) of the Original Agreement
is amended to read as follows:

                           "The
Option shall expire January 31, 2004."

                           2.          Section 4(d) of the Original Agreement
is amended to read as follows:

             "In no event (including death
of Optionee) may this Option be exercised after January 31, 2004."

                           3.          Except as expressly provided in this
Amendment, the Original Agreement will remain in full force and effect.

                           Dated
_______________, 2001.

	 	GARDENBURGER,
  INC.
	 	 
	 	 
	 	By:
	 	 	

	 	 	 
	 	 
	 	

	 	  Paul F. WennerPrepared by MerrillDirect

EXHIBIT
10.7

 

 

GARDENBURGER,
INC.

2001
STOCK INCENTIVE PLAN

 

As
Amended and Restated

Effective June 1, 2001

 

TABLE OF CONTENTS

 

	ARTICLE 1	ESTABLISHMENT AND PURPOSE	 
	 	 	 
	 	1.1	Establishment;
  Amendment and Restatement	 
	 	 	 
	 	1.2	Purpose	 
	 	 	 
	ARTICLE 2	DEFINITIONS	 
	 	 	 
	 	2.1	Defined Terms	 
	 	 	 
	 	2.2	Gender and
  Number	 
	 	 	 
	ARTICLE 3	ADMINISTRATION	 
	 	 	 
	 	3.1	Authority
  of the Board	 
	 	 	 
	 	3.2	General	 
	 	 	 
	 	3.3	Authority of the Committee	 
	 	 	 
	 	3.4	Action
  by the Committee	 
	 	 	 
	 	3.5	Liability of
  Board and Committee Members	 
	 	 	 
	 	3.6	Costs of Plan	 
	 	 	 
	ARTICLE 4	DURATION OF THE PLAN AND
  SHARES SUBJECT TO THE PLAN	 
	 	 	 
	 	4.1	Duration
  of the Plan	 
	 	 	 
	 	4.2	Shares Subject to the Plan	 
	 	 	 
	ARTICLE 5	ELIGIBILITY	 
	 	 	 
	ARTICLE 6	AWARDS	 
	 	 	 
	 	6.1	Types of Awards	 
	 	 	 
	 	6.2	General	 
	 	 	 
	 	6.3	Nonuniform Determinations	 
	 	 	 
	 	6.4	Award
  Agreements	 
	 	 	 
	 	6.5	Provisions Governing
  All Awards	 
	 	 	 
	 	6.6	Tax Withholding	 
	 	 	 
	 	6.7	Annulment
  of Awards	 
	 	 	 
	 	6.8	Engaging
  in Competition With the Corporation	 
	 	 	 
	ARTICLE 7	OPTIONS	 
	 	 	 
	 	7.1	Types of
  Options	 
	 	 	 

 

	 	7.2	General	 
	 	 	 
	 	7.3	Option Price	 
	 	 	 
	 	7.4	Option Term	 
	 	 	 
	 	7.5	Time of
  Exercise	 
	 	 	 
	 	7.6	Special Rules
  for Incentive Stock Options	 
	 	 	 
	 	7.7	Restricted
  Shares	 
	 	 	 
	 	7.8	Deferred Compensation
  Options	 
	 	 	 
	 	7.9	Reload Options	 
	 	 	 
	 	7.10	Limitation
  on Number of Shares Subject to Options	 
	 	 	 
	ARTICLE 8	STOCK APPRECIATION RIGHTS	 
	 	 	 
	 	8.1	General	 
	 	 	 
	 	8.2	Nature of Stock
  Appreciation Right	 
	 	 	 
	 	8.3	Exercise	 
	 	 	 
	 	8.4	Limitation
  on Number of Stock Appreciation Rights	 
	 	 	 
	ARTICLE 9	RESTRICTED AWARDS	 
	 	 	 
	 	9.1	Types of Restricted Awards	 
	 	 	 
	 	9.2	General	 
	 	 	 
	 	9.3	Restriction
  Period	 
	 	 	 
	 	9.4	Forfeiture	 
	 	 	 
	 	9.5	Settlement of
  Restricted Awards	 
	 	 	 
	 	9.6	Rights
  as a Shareholder	 
	 	 	 
	ARTICLE 10	PERFORMANCE AWARDS	 
	 	 	 
	 	10.1	General	 
	 	 	 
	 	10.2	Nature of Performance
  Awards	 
	 	 	 
	 	10.3	Performance
  Cycles	 
	 	 	 
	 	10.4	Performance
  Goals	 
	 	 	 
	 	10.5	Determination
  of Awards	 
	 	 	 
	 	10.6	Performance
  Goals for Executive Officers	 
	 	 	 
	ARTICLE 11	OTHER STOCK BASED AND
  COMBINATION AWARDS	 
	 	 	 
	 	11.1	Other
  Stock–Based Awards	 
	 	 	 
	 	11.2	Combination
  Awards	 
	 	 	 

 

	ARTICLE 12	DEFERRAL ELECTIONS	 
	 	 	 
	ARTICLE 13	DIVIDEND EQUIVALENTS	 
	 	 	 
	ARTICLE 14	ADJUSTMENTS UPON CHANGES
  IN CAPITALIZATION, ETC.	 
	 	 	 
	 	14.1	Plan Does Not
  Restrict Corporation	 
	 	 	 
	 	14.2	Adjustments by the
  Committee	 
	 	 	 
	 	14.3	Change in
  Control	 
	 	 	 
	ARTICLE 15	AMENDMENT AND TERMINATION	 
	 	 	 
	ARTICLE 16	MISCELLANEOUS	 
	 	 	 
	 	16.1	Unfunded Plan	 
	 	 	 
	 	16.2	Payments to
  Trust	 
	 	 	 
	 	16.3	Other
  Corporation Benefit and Compensation Programs	 
	 	 	 
	 	16.4	Securities Law Restrictions	 
	 	 	 
	 	16.5	Governing Law	 
	 	 	 
	ARTICLE 17	SHAREHOLDER APPROVAL	 

 

GARDENBURGER, INC.

2001 STOCK INCENTIVE PLAN

ARTICLE 1

ESTABLISHMENT AND PURPOSE

             1.1        Establishment;
Amendment and Restatement.  Gardenburger, Inc., an Oregon corporation
("Corporation"), hereby establishes the Gardenburger, Inc. 2001 Stock
Incentive Plan (the "Plan") effective February 13, 2001, subject
to shareholder approval as provided in Article 17.  Effective June 1, 2001, the Plan was amended and restated in
the form of this document.

             1.2        Purpose.  The
purpose of the Plan is to promote and advance the interests of Corporation and
its shareholders by enabling Corporation to attract, retain, and reward key
employees, directors, and outside consultants of Corporation and its subsidiaries.  The Plan also is intended to strengthen the
mutuality of interests between such employees, directors, and consultants and
Corporation's shareholders.  The Plan is
designed to serve these purposes by offering stock options and other equity–based
incentive awards, thereby providing a proprietary interest in pursuing the long–term
growth, profitability, and financial success of Corporation.

             1.3        Prior
Plan.  The Plan will be separate from the
Gardenburger 1992 Combination Stock Option Plan (the "Prior
Plan").  The adoption and operation
of the Plan will neither affect nor be affected by the continued existence of
the Prior Plan except that:

             (a)         After
the effective date of the Plan, no further stock options will be granted under
the Prior Plan; and

             (b)        The
number of Shares which may be made subject to Awards under the Plan will be
adjusted pursuant to Section 4.2 to reflect cancellation, termination, or
expiration of stock options previously granted under the Prior Plan.

ARTICLE 2

DEFINITIONS

             2.1        Defined
Terms.  For purposes of the Plan, the following
terms have the meanings set forth below:

                           "Award" means an award or grant made to
a Participant of Options, Stock Appreciation Rights, Restricted Awards,
Performance Awards, or Other Stock–Based Awards pursuant to the Plan.

                           "Award
Agreement" means an agreement as described in Section 6.4.

                           "Board"
means the Board of Directors of Corporation.

                           "Code" means the Internal Revenue Code
of 1986, as amended and in effect from time to time, or any successor thereto,
together with rules, regulations, and interpretations promulgated
thereunder.  Where the context so
requires, any reference to a particular Code section will be construed to refer
to the successor provision to such Code section.

                           "Committee" means the committee to
which administration of the Plan may be delegated by the Board pursuant to
Section 3.2.

                           "Common Stock" means the no par value
common stock of Corporation or any security of Corporation issued in
substitution, exchange, or lieu of such common stock.

                           "Consultant" means any consultant or
adviser to Corporation or a Subsidiary selected by the Committee, who is
neither an employee of Corporation or a Subsidiary nor a Non–Employee
Director.

                           "Continuing Restriction" means a
Restriction contained in Sections 6.7, 6.8, and 16.4 of the Plan and any
other Restrictions expressly designated by the Committee in an Award Agreement
as a Continuing Restriction.

                           "Corporation" means Gardenburger, Inc.,
an Oregon corporation, or any successor corporation.

                           "Deferred Compensation Option" means a
Nonqualified Option granted in lieu of a specified amount of other compensation
pursuant to Section 7.8 of the Plan.

                           "Disability" means the condition of
being permanently "disabled" within the meaning of Section 22(e)(3)
of the Code, namely being unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment which can
be expected to result in death or which has lasted or can be expected to last
for a continuous period of not less than 12 months.  However, the Committee may change the foregoing definition of
"Disability" or may adopt a different definition for purposes of
specific Awards.

                           "Exchange Act" means the Securities
Exchange Act of 1934, as amended and in effect from time to time, or any
successor statute.  Where the context so
requires, any reference to a particular section of the Exchange Act, or to any
rule promulgated under the Exchange Act, will be construed to refer to
successor provisions to such section or rule.

                           "Fair Market Value" means on any given
date, the fair market value per share of the Common Stock determined as
follows:

                           (a)         If the Common Stock is traded on an
established securities exchange, the mean between the reported high and low
sale prices of Common Stock as reported for such day by the principal exchange
on which Common Stock is traded (as determined by the Committee) or, if Common
Stock was not traded on such date, on the next preceding day on which Common
Stock was traded;

                           (b)        If trading activity in Common Stock is
reported in the NASDAQ National Market System, the mean between the reported
high and low sale prices of Common Stock as reported for such day by the NASDAQ
or, if Common Stock trades were not reported on such date, on the next
preceding day on which Common Stock trades were reported by the NASDAQ;

                           (c)         If trading activity in Common Stock is
reported in the NASDAQ Bid and Asked Quotations, the mean between the bid price
and asked price quote for such day as reported by the NASDAQ or, if there are
no such quotes for Common Stock for such date, on the next preceding day for
which bid and asked price quotes for Common Stock were reported by NASDAQ; or

                           (d)        If there is no market for Common Stock
or if trading activities for Common Stock are not reported in one of the
manners described above, the fair market value will be as determined by the
Committee after taking into consideration all factors that the Committee deems
appropriate.

                           "Incentive Stock Option" or "ISO" 
means any Option granted pursuant to the Plan that is intended to be and
is specifically designated in its Award Agreement as an "incentive stock
option" within the meaning of Section 422 of the Code.

                           "Non-Employee Director" means a member
of the Board who is not an employee of Corporation or any Subsidiary.

                           "Nonqualified Option" or "NQO" means any Option, including a
Deferred Compensation Option, granted pursuant to the Plan that is not an
Incentive Stock Option.

                           "Option"
means an ISO or an NQO (including a Deferred Compensation Option).

                           "Other Stock–Based
Award" means an Award as defined in Section 11.1.

                           "Participant" means an employee or a
Consultant of Corporation or a Subsidiary, or a Non–Employee Director who
is granted an Award under the Plan.

                           "Performance Award" means an Award
granted pursuant to the provisions of Article 10 of the Plan, the Vesting of
which is contingent on performance attainment.

                           "Performance Cycle" means a designated
performance period pursuant to the provisions of Section 10.3 of the Plan.

                           "Performance Goal" means a designated
performance objective pursuant to the provisions of Section 10.4 of the
Plan.

                           "Plan" means this Gardenburger, Inc.
2001 Stock Incentive Plan, as set forth in this Plan document and as it may be
amended from time to time.

                           "Reporting Person" means a Participant
who is subject to the reporting requirements of Section 16(a) of the
Exchange Act.

                           "Restricted Award" means a Restricted
Share or a Restricted Unit granted pursuant to Article 9 of the Plan.

                           "Restricted
Share" means an Award described in Section 9.1(a) of the
Plan.

                           "Restricted Unit" means an Award of
units representing Shares described in Section 9.1(b) of the Plan.

                           "Restriction" means a provision in the
Plan or in an Award Agreement which limits the exercisability or
transferability, or which governs the forfeiture, of an Award or the Shares,
cash, or other property payable pursuant to an Award.

                           "Retirement" means:

                           (a)         For
Participants who are employees, retirement from active employment with
Corporation and its Subsidiaries on or after age 65, or such earlier retirement
date as approved by the Committee for purposes of the Plan;

                           (b)        For Participants who are Non-Employee
Directors, ceasing to serve as a member of the Board after (1) serving at least
5 years on the Board, and (2) attaining a retirement age specified by the Board
for purposes of an Award to such Non–Employee Director; or

                           (c)         For
Participants who are Consultants, termination of service as a Consultant after
attaining a retirement age specified by the Committee for purposes of an Award
to such Consultant.

                           However, the
Committee may change the foregoing definition of "Retirement" or may
adopt a different definition for purposes of specific Awards.

                           "Share"
means a share of Common Stock.

                           "Stock Appreciation Right" or "SAR" means an Award to benefit from
the appreciation of Common Stock granted pursuant to the provisions of Article
8 of the Plan.

                           "Subsidiary" means a "subsidiary
corporation" of Corporation, within the meaning of Section 425 of the
Code, namely any corporation in which Corporation directly or indirectly
controls 50 percent or more of the total combined voting power of all
classes of stock having voting power.

                           "Vest"
or "Vested"
means:

                           (a)         In
the case of an Award that requires exercise, to be or to become immediately and
fully exercisable and free of all Restrictions (other than Continuing
Restrictions);     

                           (b)        In the case of an Award that is
subject to forfeiture, to be or to become nonforfeitable, freely transferable,
and free of all Restrictions (other than Continuing Restrictions);

                           (c)         In the case of an Award that is
required to be earned by attaining specified Performance Goals, to be or to
become earned and nonforfeitable, freely transferable, and free of all
Restrictions (other than Continuing Restrictions); or

                           (d)        In
the case of any other Award as to which payment is not dependent solely upon
the exercise of a right, election, exercise, or option, to be or to become immediately
payable and free of all Restrictions (except Continuing Restrictions).

             2.2        Gender and Number.  Except where otherwise indicated by the
context, any masculine or feminine terminology used in the Plan will also
include the opposite gender; and the definition of any term in Section 2.1
in the singular will also include the plural, and vice versa.

ARTICLE 3

ADMINISTRATION

             3.1        Authority
of the Board.  The Board retains exclusive authority with
respect to Awards granted to Non–Employee Directors, including the
authority to:

                           (a)         Select the Non–Employee Directors
who will be granted Awards; and

                           (b)        With respect to all Awards to
Participants who are Non–Employee Directors, to determine:

                           (i)          The number and types of Awards to be
granted to each Participant;

                           (ii)         The number of Shares, or Share
equivalents, to be subject to each Award;

                           (iii)        The option price, purchase price, base
price, or similar feature;

                           (iv)       All the terms and conditions of all Award
Agreements, consistent with the requirements of the Plan.

References in the Plan to the authority
or discretion of the Committee will also apply to the Board for purposes of
Awards granted to Non–Employee Directors.  Members of the Board who either (i) are eligible to receive
Awards pursuant to the Plan or (ii) have been granted Awards may vote on any
matters affecting the administration of the Plan or the grant of any Awards
pursuant to the Plan, except that no such member shall act upon the granting of
Awards to himself or herself, but any such member may be counted in determining
the existence of a quorum at any meeting of the Board during which action is
taken with respect to the granting to such member of Awards.

             3.2        General.  Except as provided in Section 3.1, the
Plan will be administered by the Board or by the Committee, which shall consist
of two or more "outside directors" (as that term is defined in
applicable regulations promulgated under Code Section 162(m)).

             3.3        Authority of the Committee.  Except as provided in Section 3.1, the
Committee has full power and authority (subject to such orders or resolutions
as may be issued or adopted from time to time by the Board) to administer the
Plan in its sole discretion, including the authority to:

                           (a)         Construe and interpret the Plan and any
Award Agreement;

                           (b)        Promulgate, amend, and rescind rules and
procedures relating to the implementation of the Plan;

                           (c)         Select the employees and Consultants
who will be granted Awards;

                           (d)        Determine the number and types of Awards
to be granted to each such Participant;

                           (e)         Determine the number of Shares, or
Share equivalents, to be subject to each Award;

                           (f)         Determine the option price, purchase
price, base price, or similar feature for any Award; and

                           (g)        Determine all the terms and conditions
of all Award Agreements, consistent with the requirements of the Plan.

             Decisions
of the Committee, or any delegate as permitted by the Plan, will be final,
conclusive, and binding on all Participants.

             3.4        Action by the Committee.  A majority of the members of the Committee
will constitute a quorum for the transaction of business.  Action approved by a majority of the members
present at any meeting at which a quorum is present, or action in writing by a
majority of the members of the Committee, will be the valid acts of the
Committee.

             3.5        Liability of Board and Committee
Members.  No member either of the Board or the
Committee will be liable for any action or determination made in good faith
with respect to the Plan, any Award, or any Participant.

             3.6        Costs of Plan. 
The costs and expenses of administering the Plan will be borne by
Corporation.

ARTICLE 4

DURATION OF THE PLAN AND SHARES SUBJECT TO
THE PLAN

             4.1        Duration
of the Plan.  The Plan is effective February 13,
2001, subject to approval by Corporation's shareholders as provided in Article
17.  The Plan will remain in effect
until Awards have been granted covering all the available Shares or the Plan is
otherwise terminated by the Board. 
Termination of the Plan will not affect outstanding Awards.

             4.2        Shares Subject to the
Plan.  The shares which may be made subject to
Awards under the Plan are Shares of Common Stock, which may be either
authorized and unissued Shares or reacquired Shares.  No fractional Shares may be issued under the Plan.  Subject to adjustment pursuant to Article
14, the maximum number of Shares for which Awards may be granted under the Plan
(the "Reserved Shares") is 1,400,000, plus the number of Shares that
remain available for the grant of stock options under the Prior Plan described
in Section 1.3 as of the effective date of the Plan.  If an Award under the Plan (or any option
previously granted under the Prior Plan) is canceled or expires for any reason
prior to having been fully Vested or exercised by a Participant or is settled
in cash in lieu of Shares or is exchanged for other Awards, all Shares covered
by such Awards will be added back into the Reserved Shares and made available
for future Awards under the Plan.

ARTICLE 5

ELIGIBILITY

             Officers
and other key employees of Corporation and its Subsidiaries (including
employees who may also be directors of Corporation or a Subsidiary),
Consultants, and Non–Employee Directors who are designated by the
Committee will be eligible to receive Awards under the Plan.

ARTICLE 6

AWARDS

             6.1        Types of Awards. 
The types of Awards that may be granted under the Plan are:

                           (a)         Options governed by Article 7 of the
Plan;

                           (b)        Stock Appreciation Rights governed by
Article 8 of the Plan;

                           (c)         Restricted Awards governed by Article 9
of the Plan;

                           (d)        Performance Awards governed by Article
10 of the Plan; and

                           (e)         Other Stock–Based Awards or
combination awards governed by Article 11 of the Plan.

In the discretion of the Committee, any
Award may be granted alone, in addition to, or in tandem with other Awards
under the Plan.

             6.2        General. 
Subject to the limitations of the Plan, the Committee may cause
Corporation to grant Awards to such Participants, at such times, of such types,
in such amounts, for such periods, with such option prices, purchase prices, or
base prices, and subject to such terms, conditions, limitations, and
restrictions as the Committee, in its discretion, deems appropriate.  Awards may be granted as additional compensation
to a Participant or in lieu of other compensation to such Participant.  A Participant may receive more than one
Award and more than one type of Award under the Plan.

             6.3        Nonuniform Determinations.  The Committee's determinations under the
Plan or under one or more Award Agreements, including without limitation, (a) the selection of Participants to receive Awards, (b) the type, form, amount, and timing of Awards, (c) the terms of specific Award Agreements, and (d) elections and determinations made by the Committee
with respect to exercise or payments of Awards, need not be uniform and may be
made by the Committee selectively among Participants and Awards, whether or not
Participants are similarly situated.

             6.4        Award
Agreements.  Each Award will be evidenced by a written
Award Agreement between Corporation and the Participant.  Award Agreements may, subject to the
provisions of the Plan, contain any provision approved by the Committee.

             6.5        Provisions Governing All Awards.  All Awards will be subject to the following
provisions:

                           (a)         Alternative Awards.  If any Awards are designated in their Award
Agreements as alternative to each other, the exercise of all or part of one
Award automatically will cause an immediate equal (or pro rata) corresponding
termination of the alternative Award or Awards.

                           (b)        Rights as Shareholders.  No Participant will have any rights of a
shareholder with respect to Shares subject to an Award until such Shares are
issued in the name of the Participant.

                           (c)         Employment Rights.  Neither the adoption of the Plan, the
granting of any Award, nor the entering into any Award Agreement will confer on
any person the right to continued employment with Corporation or any Subsidiary
or the right to remain as a director of Corporation or a Consultant to
Corporation or any Subsidiary, as the case may be, nor will it interfere in any
way with the right of Corporation or a Subsidiary to terminate such person's
employment or to remove such person as a Consultant or as a director at any
time for any reason, with or without cause.

                           (d)        Restriction on Transfer.  Unless otherwise expressly provided in an
individual Award Agreement, each Award (other than Restricted Shares after they
Vest) will not be transferable otherwise than by will or the laws of descent
and distribution and will be exercisable (if exercise is required), during the
lifetime of the Participant, only by the Participant or, in the event the
Participant becomes legally incompetent, by the Participant's guardian or legal
representative.  Notwithstanding the
foregoing, the Committee, in its discretion, may provide in any Award Agreement
that the Award:

                           •            May be fully transferred;

                           •            May be freely transferred to a class
of transferees specified in the Award Agreement; or

                           •            May be transferred, but only subject
to any terms and conditions specified in the Award Agreement (including,
without limitation, a condition that an Award may only be transferred without
payment of consideration).

Furthermore,
notwithstanding the foregoing, any Award may be surrendered to Corporation
pursuant to Section 6.5(h) in connection with the payment of the purchase
or option price of another Award or the payment of the Participant's federal,
state, or local tax, or tax withholding obligation with respect to the exercise
or payment of another Award.

                           (e)         Termination Of Employment.  The terms and conditions under which an
Award may be exercised or may continue to become Vested, if at all, after a
Participant's termination of employment or service as a Non-Employee Director
or a Consultant will be determined by the Committee and specified in the
applicable Award Agreement.

                           (f)         Change in Control.  The Committee, in its discretion, may
provide in any Award Agreement that in the event of a change in control of
Corporation (as the Committee may define such term in that Award Agreement), as
of the date of such change in control (or as of a specified event following a
change in control):

                           (i)          All, or a specified portion of, Awards
requiring exercise will become fully and immediately exercisable, notwithstanding
any other limitations on exercise;

                           (ii)         All, or a specified portion of, Awards
subject to Restrictions will become fully Vested; and

                           (iii)        All, or a specified portion of, Awards
subject to Performance Goals will be deemed to have been fully earned.

Unless
the Committee specifically provides otherwise in the change in control
provision for a specific Award Agreement, Awards will become exercisable,
become Vested, or become earned as of a change in control date (or as of a
specified event following a change in control) only if, or to the extent, such
acceleration in the exercisability, Vesting, or becoming earned of the Awards
does not result in an "excess parachute payment" within the meaning
of Section 280G(b) of the Code. 
The Committee, in its discretion, may include change in control
provisions in some Award Agreements and not in others, may include different
change in control provisions in different Award Agreements, and may include
change in control provisions for some Awards or some Participants and not for
others.

                           (g)        Conditioning or Accelerating Benefits.  The Committee, in its discretion, may
include in any Award Agreement a provision conditioning or accelerating the
Vesting of an Award or the receipt of benefits pursuant to an Award, either
automatically or in the discretion of the Committee, upon the occurrence of
specified events including, without limitation, a change in control of
Corporation (subject to the foregoing paragraph (f)), a sale of all or
substantially all the property and assets of Corporation, or an event of the
type described in Article 14 of this Plan. 
Furthermore, whether or not specified in any Award Agreement (unless an
Award Agreement expressly provides otherwise), the Committee may at any time,
in its discretion, accelerate the Vesting of any or all Awards.

                           (h)        Payment of Purchase Price and
Withholding.  The Committee, in its
discretion, may include in any Award Agreement a provision permitting the
Participant to pay the purchase or option price, if any, for the Shares or
other property issuable pursuant to the Award, the Participant's federal,
state, or local tax, or tax withholding, obligation with respect to such
issuance, or both,  in whole or in part
by any one or more of the following:

                           (i)          By delivering previously owned Shares
(including Restricted Shares, whether or not vested);

                           (ii)         By surrendering other outstanding
Vested Awards under the Plan denominated in Shares or in Share equivalent
units;

                           (iii)        By reducing the number of Shares or other
property otherwise Vested and issuable pursuant to the Award;

                           (iv)       By delivering to Corporation a promissory
note payable on such terms and over such period as the Committee determines;

                           (v)        By delivery (in a form approved by the
Committee) of an irrevocable direction to a securities broker acceptable to the
Committee:

                           (A)       To sell Shares subject to the Option and
to deliver all or a part of the sales proceeds to Corporation in payment of all
or a part of the option price and taxes or withholding taxes attributable to
the issuance; or

                           (B)        To pledge Shares subject to the Option
to the broker as security for a loan and to deliver all or a part of the loan
proceeds to Corporation in payment of all or a part of the option price and
taxes or withholding taxes attributable to the issuance; or

                           (vi)       In any combination of the foregoing or in
any other form approved by the Committee.

If
Restricted Shares are surrendered in full or partial payment of the purchase or
option price of Shares issuable under an Award, a corresponding number of the
Shares issued upon exercise of the Award will be Restricted Shares subject to
the same Restrictions as the surrendered Restricted Shares.  Shares withheld or surrendered as described
above will be valued based on their Fair Market Value on the date of the
transaction.  Any Shares withheld or
surrendered with respect to a Reporting Person will be subject to such
additional conditions and limitations as the Committee may impose to comply
with the requirements of the Exchange Act.

 

                           (i)          Reporting Persons.  With respect to all Awards granted to
Reporting Persons:

                           (i)          Awards requiring exercise will not be
exercisable until at least six months after the date the Award was granted,
except in the case of the death or Disability of the Participant; and

                           (ii)         Shares issued pursuant to any other
Award may not be sold by the Participant for at least six months after
acquisition, except in the case of the death or Disability of the Participant;

provided,
however, that (unless an Award Agreement provides otherwise) the limitation of
this Section 6.5(i) will apply only if or to the extent required by
Rule 16b–3 under the Exchange Act. 
Award Agreements for Awards to Reporting Persons will also comply with
any future restrictions imposed by such Rule 16b–3.

                           (j)          Service Periods.  At the time of granting Awards, the
Committee may specify, by resolution or in the Award Agreement, the period or
periods of service performed or to be performed by the Participant in
connection with the grant of the Award.

                           (k)         Form of Payment upon Settlement of
Awards.  Payment to a Participant
upon settlement of an Award may be in Shares, cash (either in a lump sum or in
installment payments, with or without interest, over a period specified in the
Award Agreement), by issuance of a Deferred Compensation Option, or in any
combination of the above, or in any other form the Committee determines.

             6.6        Tax Withholding.  Corporation will have the right to deduct
from any settlement of any Award under the Plan, including the delivery or
vesting of Shares, any federal, state, or local taxes of any kind required by
law to be withheld with respect to such payments or to take such other action
as may be necessary in the opinion of Corporation to satisfy all obligations
for the payment of such taxes.  The
recipient of any payment or distribution under the Plan must make arrangements
satisfactory to Corporation for the satisfaction of any such withholding tax
obligations.  Corporation will not be
required to make any such payment or distribution under the Plan until such
obligations are satisfied.

             6.7        Annulment
of Awards.  Any Award Agreement may, in the Committee's
discretion, provide that the grant of an Award payable in cash is revocable
until cash is paid in settlement of the Award or that the grant of an Award
payable in Shares is revocable until the Participant becomes entitled to a
stock certificate in settlement of the Award. 
In the event the employment (or service as a Non–Employee Director
or a Consultant) of a Participant is terminated for cause (as defined below),
any Award which is revocable will be annulled as of the date of such
termination for cause.  For the purpose
of this Section 6.7, the term "for cause" will have the meaning
set forth in the Participant's employment agreement, if any, or otherwise means
any discharge (or removal) for material or flagrant violation of the policies
and procedures of Corporation or for other job performance or conduct which is
materially detrimental to the best interests of Corporation, as determined by
the Committee.

             6.8        Engaging
in Competition With the Corporation.  Any Award Agreement may, in the Committee's
discretion, provide that if a Participant terminates employment (or service as
a Non–Employee Director or a Consultant) with Corporation or a Subsidiary
for any reason whatsoever, and within a period of time (as specified in the
Award Agreement) after the date of such termination accepts employment with any
competitor of (or otherwise engages in competition with) Corporation, the
Committee, in its sole discretion, may require such Participant to return to
Corporation the economic value of any Award that was realized or obtained
(measured at the date of exercise, Vesting, or payment) by such Participant at any
time during the period beginning on the date that is six months prior to the
date of such Participant's termination of employment (or service as a Non–Employee
Director or a Consultant) with Corporation.

ARTICLE 7

OPTIONS

             7.1        Types of Options.  Options granted under the Plan may be in the form of Incentive
Stock Options or Nonqualified Options (including Deferred Compensation
Options).  The grant of each Option and
the Award Agreement governing each Option will identify the Option as an ISO or
an NQO.  In the event the Code is
amended to provide for tax–favored forms of stock options other than or
in addition to Incentive Stock Options, the Committee may grant Options under
the Plan meeting the requirements of such forms of options.

             7.2        General.  Options will be subject to the terms and
conditions set forth in Article 6 and this Article 7 and Award Agreements
governing Options may contain such additional terms and conditions, not
inconsistent with the express provisions of the Plan, as the Committee deems
desirable.

             7.3        Option Price. 
Each Award Agreement for Options will state the option exercise price
per Share of Common Stock purchasable under the Option, which may not be less
than:

                           (a)         25 percent of the Fair Market Value of
a Share on the date of grant in the case of a Deferred Compensation Option;

                           (b)        75 percent of the Fair Market Value of a
Share on the date of grant for all other Nonqualified Options; or

                           (c)         100 percent of the Fair Market
Value of a Share on the date of grant for all Incentive Stock Options.

             7.4        Option Term.  The Award Agreement for each Option will
specify the term of each Option, which may be unlimited or may have a specified
period during which the Option may be exercised, as determined by the
Committee.

             7.5        Time of Exercise.  The Award Agreement for each Option will
specify, as determined by the Committee:

                           (a)         The time or times when the Option
becomes exercisable and whether the Option becomes exercisable in full or in
graduated amounts based on: (i) continuation of employment over a period
specified in the Award Agreement, (ii) satisfaction of performance goals or
criteria specified in the Award Agreement, or (iii) a combination of
continuation of employment and satisfaction of performance goals or criteria;

                           (b)        Such other terms, conditions, and
restrictions as to when the Option may be exercised as determined by the
Committee; and

                           (c)         The extent, if any, that the Option
will remain exercisable after the Participant ceases to be an employee, Consultant,
or director of Corporation or a Subsidiary.

An Award Agreement for an Option may, in
the discretion of the Committee, provide whether, and to what extent, the time
when an Option becomes exercisable will be accelerated or otherwise modified
(i) in the event of the death, Disability, or Retirement of the Participant, or
(ii) upon the occurrence of a change in control of Corporation.  The Committee may, at any time in its
discretion, accelerate the time when all or any portion of an outstanding
Option becomes exercisable.

             7.6        Special
Rules for Incentive Stock Options.  In the case of an Option designated as an
Incentive Stock Option, the terms of the Option and the Award Agreement will
conform with the statutory and regulatory requirements specified pursuant to
Section 422 of the Code, as in effect on the date such ISO is
granted.  ISOs may be granted only to
employees of Corporation or a Subsidiary. 
ISOs may not be granted under the Plan after ten years following the
date specified in Section 4.1, unless the ten–year limitation of
Section 422(b)(2) of the Code is removed or extended.  Without limiting the foregoing, all ISO
Awards will be subject to the following terms and conditions (unless the
Committee determines that such restrictions are no longer necessary in order
for an Award to meet ISO requirements):

                           (a)         The term of the ISO may not exceed 10
years from the date the ISO is granted (and may not exceed 5 years for ISOs
granted to an employee who, as of the date of the grant, owns stock possessing
more than 10 percent of the total combined voting power of all classes of stock
of Corporation (a "10 Percent Shareholder"));

                           (b)        The option exercise price for an ISO may
not be lower than 100 percent of the Fair Market Value of a Share as of the date
the ISO is granted (and may not be lower than 110 percent of such Fair Market
Value for an ISO granted to a 10 Percent Shareholder); and

                           (c)         The aggregate Fair Market Value
(determined as of the date an Option is granted) of the Shares subject to all
ISOs granted to any Participant under the Plan and any other plans maintained
by Corporation with respect to which the ISOs first become exercisable during
any calendar year may not exceed $100,000 (the "$100,000
Limitation").  If and to the extent
an Option granted under the Plan that is otherwise designated as or intended to
be an ISO exceeds the $100,000 Limitation, the Option will be treated as two
Options granted under the Plan, an ISO with respect to the portion of the
Option that satisfies the $100,000 Limitation, and  a separate Nonqualified Option with respect to the portion of the
Option that exceeds the $100,000 Limitation.

             7.7        Restricted Shares.  In the discretion of the Committee, the
Shares issuable upon exercise of an Option may be Restricted Shares if so
provided in the Award Agreement for the Option.

             7.8        Deferred
Compensation Options.  The Committee may, in its discretion, grant
Deferred Compensation Options with an option price less than Fair Market Value
to provide a means for deferral to future dates of compensation otherwise
payable to a Participant.  The option
price will be determined by the Committee subject to Section  7.3(a) of
the Plan.  The number of Shares subject
to a Deferred Compensation Option will be determined by the Committee, in its
discretion, by dividing the amount of compensation to be deferred by the
difference between the Fair Market Value of a Share on the date of grant and
the option price of the Deferred Compensation Option.  Amounts of compensation deferred with Deferred Compensation
Options may include amounts payable under Awards granted under the Plan or
under any other compensation program or arrangement of Corporation as permitted
by the Committee.  The Committee may
grant Deferred Compensation Options only if it reasonably determines that the
recipient of such an Option is not likely to be deemed to be in constructive
receipt for income tax purposes of the income being deferred.

             7.9        Reload Options.  The Committee, in its discretion, may
provide in an Award Agreement for an Option that in the event all or a portion
of the Option is exercised by the Participant using previously acquired Shares,
the Participant will automatically be granted (subject to the available pool of
Shares subject to grants of Awards as specified in Section 4.2 of the
Plan) a replacement Option (with an option price equal to the Fair Market Value
of a Share on the date of such exercise) for a number of Shares equal to (or
equal to a portion specified in the original Award Agreement of) the number of
shares surrendered upon exercise of the Option.  Such reload Option features may be subject to such terms and
conditions as the Committee determines, including without limitation, a
condition that the Participant retain the Shares issued upon exercise of the
Option for a specified period of time.

             7.10      Limitation
on Number of Shares Subject to Options.  In no event may Options be granted under the
Plan for more than 150,000 Shares to any individual during any one calendar
year period.

ARTICLE 8

STOCK APPRECIATION
RIGHTS

             8.1        General.  Stock Appreciation Rights will be subject to
the terms and conditions set forth in Article 6 and this Article 8 and Award
Agreements governing Stock Appreciation Rights may contain such additional
terms and conditions, not inconsistent with the express terms of the Plan, as
the Committee deems desirable.

             8.2        Nature of Stock Appreciation Right.  A Stock Appreciation Right is an Award
entitling a Participant to receive an amount equal to the excess (or, if the
Committee so specifies in the Award Agreement, a portion of the excess) of the
Fair Market Value of a Share of Common Stock on the date of exercise of the SAR
over the base price, as described below, on the date of grant of the SAR,
multiplied by the number of Shares with respect to which the SAR will have been
exercised.  The base price will be
designated by the Committee in the Award Agreement for the SAR and may be the
Fair Market Value of a Share on the grant date of the SAR or such other higher
or lower price as the Committee determines.

             8.3        Exercise.  A Stock Appreciation Right may be exercised
by a Participant in accordance with procedures established by the
Committee.  The Committee may also
provide that a SAR will be automatically exercised on one or more specified
dates or upon the satisfaction of one or more specified conditions.  In the case of SARs granted to Reporting
Persons, exercise of the SAR will be limited by the Committee to the extent
required to comply with the applicable requirements of Rule 16b–3
under the Exchange Act.

             8.4        Limitation on Number of Stock
Appreciation Rights.  In no
event may more than 10,000 Stock Appreciation Rights be granted to any
individual under the Plan during any one calendar year period.

ARTICLE 9

RESTRICTED AWARDS

             9.1        Types of Restricted Awards.  Restricted Awards granted under the Plan may
be in the form of either Restricted Shares or Restricted Units.

                           (a)         Nature of Restricted Shares.  A Restricted Share is an Award of Shares
transferred to a Participant subject to such terms and conditions as the
Committee deems appropriate, including, without limitation, restrictions on the
sale, assignment, transfer, or other disposition of such Restricted Shares and
may include a requirement that the Participant forfeit such Restricted Shares
back to Corporation upon termination of Participant's employment (or service as
a Non-Employee Director or a Consultant) for specified reasons within a
specified period of time or upon other conditions, as set forth in the Award
Agreement for such Restricted Shares. 
Each Participant receiving Restricted Shares will be issued a stock
certificate in respect of such Shares, registered in the name of such Participant,
and will be required to execute a stock power in blank with respect to the
Shares evidenced by such certificate. 
The certificate evidencing such Restricted Shares and the stock power
will be held in custody by Corporation until the Restrictions on those Shares
have lapsed.

                           (b)        Nature of Restricted Units.  A Restricted Unit is an Award of units (with
each unit having a value equivalent to one Share) granted to a Participant
subject to such terms and conditions as the Committee deems appropriate, and
may include a requirement that the Participant forfeit such Restricted Units
upon termination of Participant's employment (or service as a Non–Employee
Director or a Consultant) for specified reasons within a specified period of
time or upon other conditions, as set forth in the Award Agreement for such
Restricted Units.

             9.2        General.  Restricted Awards will be subject to the
terms and conditions of Article 6 and this Article 9 and Award Agreements
governing Restricted Awards may contain such additional terms and conditions,
not inconsistent with the express provisions of the Plan, as the Committee
deems desirable.

             9.3        Restriction Period.  Award Agreements for Restricted Awards will
provide that Restricted Awards, and the Shares subject to Restricted Awards,
may not be transferred, and may provide that, in order for a Participant to
Vest in such Restricted Awards, the Participant must remain in the employment
(or remain as a Non–Employee Director or a Consultant) of Corporation or
its Subsidiaries, subject to relief for reasons specified in the Award
Agreement, for a period commencing on the grant date of the Award and ending on
such later date or dates as the Committee designates in the Award Agreement
(the "Restriction Period"). 
During the Restriction Period, a Participant may not sell, assign,
transfer, pledge, encumber, or otherwise dispose of Shares received under or
governed by a Restricted Award grant. 
The Committee, in its sole discretion, may provide for the lapse of
restrictions in installments during the Restriction Period.  Upon expiration of the applicable
Restriction Period (or lapse of Restrictions during the Restriction Period
where the Restrictions lapse in installments) the Participant will be entitled
to settlement of the Restricted Award or portion thereof, as the case may
be.  Although Restricted Awards will
usually Vest based on continued employment (or service as a Non–Employee
Director or a Consultant) and Performance Awards under Article 10 will usually
Vest based on attainment of Performance Goals, the Committee, in its
discretion, may condition Vesting of Restricted Awards on attainment of
Performance Goals as well as continued employment (or service as a Non–Employee
Director or a Consultant).  In such
case, the Restriction Period for such a Restricted Award will include the
period prior to satisfaction of the Performance Goals.

             9.4        Forfeiture. 
If a Participant ceases to be an employee (or Consultant or Non–Employee
Director) of Corporation or a Subsidiary during the Restriction Period for any
reason other than reasons which may be specified in an Award Agreement (such as
death, Disability, or Retirement) the Award Agreement may require that all non–Vested
Restricted Awards previously granted to the Participant be forfeited and
returned to Corporation.

             9.5        Settlement of Restricted Awards.

                           (a)         Restricted Shares.  Upon Vesting of a Restricted Share Award,
the legend on such Shares will be removed and the Participant's stock power
will be returned and the Shares will no longer be Restricted Shares.  The Committee may also, in its discretion,
permit a Participant to receive, in lieu of unrestricted Shares at the
conclusion of the Restriction Period, payment in any form described in
Section 6.5(k).

                           (b)        Restricted Units.  Upon Vesting of a Restricted Unit Award, a Participant
will be entitled to receive payment for Restricted Units in an amount equal to
the aggregate Fair Market Value of the Shares covered by such Restricted Units
at the expiration of the Applicable Restriction Period.  Payment in settlement of a Restricted Unit
in any form described in Section 6.5(k) will be made as soon as
practicable following the conclusion of the applicable Restriction Period.

             9.6        Rights as a Shareholder.  A Participant will have, with respect to
unforfeited Shares received under a grant of 
Restricted Shares, all the rights of a shareholder of Corporation,
including the right to vote the shares, and the right to receive any cash
dividends.  Stock dividends issued with
respect to Restricted Shares will be treated as additional Shares covered by
the grant of Restricted Shares and will be subject to the same Restrictions.

ARTICLE 10

PERFORMANCE AWARDS

             10.1      General.  Performance Awards will be subject to the
terms and conditions set forth in Article 6 and this Article 10 and Award
Agreements governing Performance Awards may contain such other terms and
conditions not inconsistent with the express provisions of the Plan, as the
Committee deems desirable.

             10.2      Nature of Performance
Awards.  A Performance Award is an Award of units
(with each unit having a value equivalent to one Share) granted to a
Participant subject to such terms and conditions as the Committee deems
appropriate, including, without limitation, the requirement that the
Participant forfeit all or a portion of such Performance Award in the event
specified performance criteria are not met within a designated period of time.

             10.3      Performance Cycles.  For each Performance Award, the Committee
will designate a performance period (the "Performance Cycle") with a
duration to be determined by the Committee in its discretion within which
specified Performance Goals are to be attained.  There may be several Performance Cycles in existence at any one
time and the duration of Performance Cycles may differ from each other.

             10.4      Performance Goals.  The Committee will establish Performance
Goals for each Performance Cycle on the basis of such criteria and to
accomplish such objectives as the Committee may from time to time select.  Performance Goals may be based on (i) performance
criteria for Corporation, a Subsidiary, or an operating group, (ii) a
Participant's individual performance, or (iii) a combination of both.  Performance Goals may include objective and
subjective criteria.  During any
Performance Cycle, the Committee may adjust the Performance Goals for such
Performance Cycle as it deems equitable in recognition of unusual or
nonrecurring events affecting Corporation, changes in applicable tax laws or
accounting principles, or such other factors as the Committee may determine.

             10.5      Determination of Awards.  As
soon as practicable after the end of a Performance Cycle, the Committee will
determine the extent to which Performance Awards have been earned on the basis
of performance in relation to the established Performance Goals.  Settlement of earned Performance Awards will
be made to the Participant as soon as practicable after the expiration of the
Performance Cycle and the Committee's determination under this Section 10.5,
in any form described in Section 6.5(k).

             10.6      Performance
Goals for Executive Officers. 
The performance goals for Performance Awards granted to executive
officers of Corporation may relate to corporate performance, business unit
performance, or a combination of both.

                           •            Corporate
performance goals will be based on financial performance goals related to the
performance of Corporation as a whole and may include one or more measures
related to earnings, profitability, efficiency, or return to stockholders such
as earnings per share, operating profit, stock price, costs of production, or
other measures.

                           •            Business
unit performance goals will be based on a combination of financial goals and
strategic goals related to the performance of an identified business unit for
which a Participant has responsibility. 
Strategic goals for a business unit may include one or a combination of
objective factors relating to success in implementing strategic plans or
initiatives, introductory products, constructing facilities, or other
identifiable objectives.  Financial
goals for a business unit may include the degree to which the business unit
achieves one or more objective measures related to its revenues, earnings,
profitability, efficiency, operating profit, costs of production, or other
measures.

                           •            Any
corporate or business unit goals may be expressed as absolute amounts or as
ratios or percentages.  Success may be
measured against various standards, including budget targets, improvement over
prior periods, and performance relative to other companies, business units, or
industry groups.

             10.7      Award Limitations.  The maximum number of Shares issuable with
respect to Performance Awards granted to any individual executive officer may
not exceed 10,000 Shares for any one calendar year period.

ARTICLE 11

OTHER STOCK BASED AND COMBINATION AWARDS

             11.1      Other Stock–Based
Awards.  The Committee may grant other Awards under
the Plan pursuant to which Shares are or may in the future be acquired, or
Awards denominated in or measured by Share equivalent units, including Awards
valued using measures other than the market value of Shares.  Other Stock-Based Awards are not restricted
to any specified form or structure and may include, without limitation, Share
purchase warrants, other rights to acquire Shares, and securities convertible
into or redeemable for Shares.  Such
Other Stock–Based Awards may be granted either alone, in addition to, or
in tandem with, any other type of Award granted under the Plan.

             11.2      Combination Awards.   The Committee may also grant Awards under
the Plan in tandem or combination with other Awards or in exchange of Awards,
or in tandem or combination with, or as alternatives to, grants or rights under
any other employee plan of Corporation, including the plan of any acquired
entity.  No action authorized by this
Section 11.2 will reduce the amount of any existing benefits or change the
terms and conditions thereof without the Participant's consent.

ARTICLE 12

DEFERRAL
ELECTIONS

             The
Committee may permit a Participant to elect to defer receipt of the payment of
cash or the delivery of Shares that would otherwise be due to such Participant
by virtue of the exercise, earn out, or Vesting of an Award made under the
Plan.  If any such election is
permitted, the Committee will establish rules and procedures for such payment
deferrals, including, but not limited to: 
(a) payment or crediting of reasonable interest or other growth or
earnings factor on such deferred amounts credited in cash, (b) the payment
or crediting of dividend equivalents in respect of deferrals credited in Share
equivalent units, or (c) granting of Deferred Compensation Options.

ARTICLE 13

DIVIDEND
EQUIVALENTS

             Any
Awards may, at the discretion of the Committee, earn dividend equivalents.  In respect of any such Award which is
outstanding on a dividend record date for Common Stock, the Participant may be
credited with an amount equal to the amount of cash or stock dividends that
would have been paid on the Shares covered by such Award, had such covered
Shares been issued and outstanding on such dividend record date.  The Committee will establish such rules and
procedures governing the crediting of dividend equivalents, including the
timing, form of payment, and payment contingencies of such dividend
equivalents, as it deems appropriate or necessary.

ARTICLE 14

ADJUSTMENTS UPON
CHANGES IN CAPITALIZATION, ETC.

             14.1      Plan Does Not
Restrict Corporation.  The existence of the Plan and the Awards
granted under the Plan do not affect or restrict in any way the right or power
of the Board or the shareholders of Corporation to make or authorize any
adjustment, recapitalization, reorganization, or other change in Corporation's
capital structure or its business, any merger or consolidation of the
Corporation, any issue of bonds, debentures, preferred or prior preference
stocks ahead of or affecting Corporation's capital stock or the rights thereof,
the dissolution or liquidation of Corporation or any sale or transfer of all or
any part of its assets or business, or any other corporate act or proceeding.

             14.2      Adjustments by the
Committee.  In the event of any
change in capitalization affecting the Common Stock of Corporation, such as a
stock dividend, stock split, recapitalization, merger, consolidation, split–up,
combination or exchange of shares or other form of reorganization, or any other
change affecting the Common Stock, such proportionate adjustments, if any, as
the Committee, in its sole discretion, may deem appropriate to reflect such
change, will be made with respect to the aggregate number of Shares for which
Awards may be granted under the Plan, the maximum number of Shares which may be
sold or awarded to any Participant, the number of Shares covered by each
outstanding Award, and the base price or purchase price per Share in respect of
outstanding Awards.  The Committee may
also make such adjustments in the number of Shares covered by, and price or
other value of any outstanding Awards in the event of a spin–off or other
distribution (other than normal cash dividends), of Corporation assets to
shareholders.

             14.3      Change in Control.  Except as otherwise expressly provided in an
Award Agreement, in the event of a change in control of Corporation (as
determined by the Committee), the Committee may, in its sole discretion and
without liability to any person, take such actions, if any, (as of the date of
the consummation of the change in control) with respect to outstanding Awards
as the Committee deems equitable and necessary or desirable, including without
limitation (1) the acceleration of the Vesting of any Awards, (2) the payment
of a cash amount in exchange for the cancellation of any Awards, and/or (3)
requiring the issuance of substitute awards that will substantially preserve
the value, rights, and benefits of any Awards.

ARTICLE 15

AMENDMENT AND TERMINATION

             The
Board may amend, suspend, or terminate the Plan or any portion of the Plan at
any time, provided no amendment may be made without shareholder approval if
such approval is required by applicable law or the requirements of an
applicable stock exchange or over the counter stock trading system.

ARTICLE 16

MISCELLANEOUS

             16.1      Unfunded Plan.  The Plan is unfunded and Corporation will
not be required to segregate any assets that may at any time be represented by
Awards under the Plan.  Any liability of
Corporation to any person with respect to any Award under the Plan will be
based solely upon any contractual obligations that may be effected pursuant to
the Plan.  No such obligation of
Corporation will be deemed to be secured by any pledge of or other encumbrance
on any property of Corporation.

             16.2      Payments to Trust.  The Committee is authorized (but not
obligated) to cause to be established a trust agreement or several trust
agreements under which the Committee may make payments of amounts due or to
become due to Participants in the Plan.

             16.3      Other
Corporation Benefit and Compensation Programs.  Payments and other benefits received by a
Participant under an Award made pursuant to the Plan will not be deemed a part
of a Participant's regular, recurring compensation for purposes of the
termination indemnity or severance pay law of any state or country and will not
be included in, or have any effect on, the determination of benefits under any
other employee benefit plan or similar arrangement provided by Corporation or a
Subsidiary unless expressly so provided by such other plan or arrangements, or
except where the Committee expressly determines that an Award or portion of an
Award should be included to accurately reflect competitive compensation
practices or to recognize that an Award has been made in lieu of a portion of
cash compensation.  Awards under the
Plan may be made in combination with or in tandem with, or as alternatives to,
grants, awards, or payments under any other Corporation or Subsidiary plans,
arrangements, or programs.  The Plan
notwithstanding, Corporation or any Subsidiary may adopt such other
compensation programs and additional compensation arrangements as it deems
necessary to attract, retain, and reward employees and directors for their
service with Corporation and its Subsidiaries.

             16.4      Securities Law
Restrictions.  No Shares may be issued under the Plan
unless counsel for Corporation is satisfied that such issuance will be in
compliance with applicable federal and state securities laws.  Certificates for Shares delivered under the
Plan may be subject to such stop–transfer orders and other restrictions
as the Committee deems advisable under the rules, regulations, and other
requirements of the Securities and Exchange Commission, any stock exchange upon
which the Common Stock is then listed, and any applicable federal or state
securities law.  The Committee may cause
a legend or legends to be put on any such certificates to make appropriate reference
to such restrictions.

             16.5      Governing Law.  Except with respect to references to the
Code or federal securities laws, the Plan and all actions taken thereunder will
be governed by and construed in accordance with the laws of the state of Oregon.

ARTICLE 17

SHAREHOLDER APPROVAL

             The
adoption of the Plan and the grant of Awards under the Plan are expressly
subject to the approval of the Plan by (a) the holders of the outstanding
shares of Corporation's capital stock in accordance with Oregon law and
(b) the affirmative vote of the holders of at least a majority of the outstanding shares of
Corporation's Series A Convertible Preferred Stock and Series B
Convertible Preferred Stock, voting as a single voting group.

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