Document:

AMENDMENT NO. 4
                                       TO
                    REVOLVING CREDIT AND TERM LOAN AGREEMENT
                    ----------------------------------------

         THIS AMENDMENT NO. 4 TO REVOLVING CREDIT AND TERM LOAN AGREEMENT (this
"Amendment") is made and entered into as of October 10, 2003, by and among FPIC
INSURANCE GROUP, INC., a Florida corporation (the "Borrower"), the several banks
and other financial institutions from time to time party hereto (the "Lenders"),
and SUNTRUST BANK, in its capacity as Administrative Agent for the Lenders (the
"Administrative Agent") and in its capacity as Collateral Agent for the Lenders
(the "Collateral Agent"), and is joined by certain subsidiaries of the Borrower,
as Subsidiary Guarantors (the "Subsidiary Guarantors") pursuant to the Joinder
of Subsidiary Guarantors attached hereto.

                              W I T N E S S E T H:
                              --------------------

         WHEREAS, the Borrower, the Lenders and the Administrative Agent are
parties to that certain Revolving Credit and Term Loan Agreement, dated as of
August 31, 2001, as amended by that certain (i) Amendment No. 1 to Revolving
Credit and Term Loan Agreement, dated as of March 25, 2002, (ii) Amendment No. 2
to Revolving Credit and Term Loan Agreement, dated as of November 21, 2002, and
(iii) Amendment No. 3 to Revolving Credit and Term Loan Agreement, dated as of
April 10, 2003 (as amended, the "Existing Credit Agreement"), pursuant to which
the Lenders have agreed to make Loans to the Borrower, and the Issuing Bank has
agreed to issue Letters of Credit for the account of the Borrower (provided,
subject to the terms and conditions of the Existing Credit Agreement, such
Letters of Credit may be issued on behalf of the Borrower or, if requested by
the Borrower, on behalf of any Subsidiary), all upon the terms and subject to
the conditions specified in the Existing Credit Agreement; and

         WHEREAS, the Borrower, the Lenders, the Administrative Agent and, by
joinder hereto, the Subsidiary Guarantors, have agreed to modify and amend the
Existing Credit Agreement as set forth herein.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements herein contained, the Borrower, the Lenders, the
Administrative Agent and, by joinder hereto, the Subsidiary Guarantors, agree as
follows:

                                    ARTICLE I

                                   DEFINITIONS
                                   -----------

         Section 1.1       Certain Definitions. Unless otherwise defined herein
or the context otherwise requires, the following terms as used in this
Amendment, including the preamble, the recitals and the amendments to certain
definitions set forth in Section 2.1A hereof, have the meanings set forth below:

                           "Amended Credit Agreement" shall mean the Existing
         Credit Agreement, as further amended hereby.

                           "Amendment No. 4 Effective Date" shall have the
         meaning assigned to such term in Article IV.

         Section 1.2       Other Definitions. Unless otherwise defined herein,
capitalized terms used herein and not defined herein shall have the meanings
assigned to such terms in the Existing Credit Agreement.
<PAGE>

                                   ARTICLE II

                        AMENDMENTS TO EXISTING AGREEMENT
                        --------------------------------

         Effective as of the Amendment No. 4 Effective Date, the Existing Credit
Agreement is hereby amended in accordance with this Article II as follows:

         Section 2.1       Amendment to Section 1.1 - Definitions.

                  A.       Section 1.1 - Definitions of "ARTICLE I -
         DEFINITIONS; CONSTRUCTION" of the Existing Credit Agreement is hereby
         amended to delete the definitions of the terms "Declarations", "Junior
         Indentures", "Junior Subordinated Debt Securities", "Subsidiary" and
         "Swap Unwind Fees" in their entirety and to insert the following new
         definitions for such terms in their place:

                           "Declarations" shall mean Declaration I, Declaration
                  II and/or Declaration III, as the context shall require.

                           "Junior Indentures" shall mean, collectively and
                  individually, Junior Indenture I, Junior Indenture II and/or
                  Junior Indenture III, as the context shall require.

                           "Junior Subordinated Debt Securities" shall mean,
                  collectively and individually, the Junior Subordinated Debt
                  Securities I, the Junior Subordinated Debt Securities II
                  and/or the Junior Subordinated Debt Securities III, as the
                  context shall require.

                           "Subsidiary" shall mean, with respect to any Person
                  (the "parent"), any corporation, partnership, joint venture,
                  limited liability company, association or other entity the
                  accounts of which would be consolidated with those of the
                  parent in the parent's consolidated financial statements if
                  such financial statements were prepared in accordance with
                  GAAP as of such date, as well as any other corporation,
                  partnership, joint venture, limited liability company,
                  association or other entity (a) of which securities or other
                  ownership interests representing more than 50% of the equity
                  or more than 50% of the ordinary voting power, or in the case
                  of a partnership, more than 50% of the general partnership
                  interests are, as of such date, owned, Controlled or held, or
                  (b) that is, as of such date, otherwise Controlled, by the
                  parent or one or more subsidiaries of the parent or by the
                  parent and one or more subsidiaries of the parent; provided,
                  that unless otherwise set forth herein, neither FPIC Trust I,
                  FPIC Trust II nor FPIC Trust III shall be a "Subsidiary" for
                  purposes of this Agreement. Unless otherwise indicated, all
                  references to "Subsidiary" hereunder shall mean a Subsidiary
                  of the Borrower.

                           "Swap Unwind Fees" shall mean any fees and/or any
                  other amounts payable by the Borrower to SunTrust Bank
                  resulting from the breakage by the Borrower of (a) that
                  certain Confirmation of Interest Rate Swap Transaction, dated
                  as of August 29, 2001 (relating to the Term Loan), and/or (b)
                  that certain Confirmation of Interest Rate Swap Transaction,
                  dated as of August 29, 2001 (relating to the Revolving Loans),
                  each by and between SunTrust Bank and the Borrower, together
                  with the ISDA Master Agreement and Schedule thereto, each
                  dated as of June 15, 1998, referred to in each Confirmation
                  and each entered into by and between SunTrust Bank and the
                  Borrower.

                  B.       Section 1.1 - Definitions of "ARTICLE I -
         DEFINITIONS; CONSTRUCTION" of the Existing Credit Agreement is hereby
         further amended to add the definitions of the terms "Common
         Securities", "Declaration III", "FPIC Trust III", "Junior Indenture
         III" and "Junior Subordinated Debt Securities III" in their proper
         alphabetical order as follows:

                           "Common Securities" shall mean the common securities
                  issued by FPIC Trust I, FPIC Trust II and/or FPIC Trust III.

                                        2
<PAGE>

                           "Declaration III" shall mean the Amended and Restated
                  Declaration of Trust of FPIC Trust III, dated on or about the
                  date of issuance of the Junior Subordinated Debt Securities
                  III, and all amendments, modifications, supplements,
                  restatements or replacements thereof.

                           "FPIC Trust III" shall mean FPIC Capital Statutory
                  Trust III, a Connecticut statutory trust established pursuant
                  to Declaration III.

                           "Junior Indenture III" shall mean the Indenture dated
                  on or about the date of issuance of the Junior Subordinated
                  Debt Securities III, by and between the Borrower, as Issuer,
                  and U.S. Bank, as Trustee, relating to the Junior Subordinated
                  Debt Securities III, and all amendments, modifications,
                  supplements, restatements or replacements thereof.

                           "Junior Subordinated Debt Securities III" shall mean
                  the Floating Rate Junior Subordinated Deferrable Interest
                  Debentures due 2033 issued by the Borrower under Junior
                  Indenture III, and all renewals, extensions or modifications
                  thereof; provided, that the aggregate principal amount
                  outstanding at any time thereunder shall never exceed
                  $20,620,000.

         Section 2.2       Amendment to Section 7.1(h) - Indebtedness. Section
7.1 - Indebtedness of "ARTICLE VII NEGATIVE COVENANTS" of the Existing Credit
Agreement is hereby amended to delete Section 7.1(h) in its entirety and to
insert the following new Section 7.1(h) in its place:

                           (h)      the separate Guarantees by the Borrower with
         respect to certain "Securities" to be issued by FPIC Trust I as
         contemplated by Declaration I, by FPIC Trust II as contemplated by
         Declaration II and by FPIC Trust III as contemplated by Declaration
         III;

         Section 2.3       Amendment to Section 7.4(h) - Investments, Loans,
Etc. Section 7.4 - Investments, Loans, Etc. of "ARTICLE VII NEGATIVE COVENANTS"
of the Existing Credit Agreement is hereby amended to delete Section 7.4(h) in
its entirety and to insert the following new Section 7.4(h) in its place:

                           (h)      Investments made by the Borrower in FPIC
         Trust I, FPIC Trust II and FPIC Trust III; provided, that such
         Investments shall be in the form of Common Securities in principal
         amount not exceeding, in the case of FPIC Trust I, $310,000, in the
         case of FPIC Trust II, $620,000 and, in the case of FPIC Trust III,
         $620,000, at any time outstanding;

         Section 2.4       Amendment to Section 7.7 - Transactions with
Affiliates. Section 7.7 - Transactions with Affiliates of "ARTICLE VII NEGATIVE
COVENANTS" of the Existing Credit Agreement is hereby amended to delete such
Section in its entirety and to insert the following new Section 7.7 in its
place:

                  Section 7.7       Transactions with Affiliates. The Borrower
         will not, and will not permit any of its Subsidiaries to, sell, lease
         or otherwise transfer any property or assets to, or purchase, lease or
         otherwise acquire any property or assets from, or otherwise engage in
         any other transactions with, any of its Affiliates, except (a) in the
         ordinary course of business at prices and on terms and conditions not
         less favorable to the Borrower or such Subsidiary than could be
         obtained on an arm's-length basis from unrelated third parties, (b)
         transactions between or among the Borrower and its Subsidiaries not
         involving any other Affiliates, (c) any Restricted Payment permitted by
         Section 7.5 and (d) transactions between the Borrower and FPIC Trust I
         contemplated by Declaration I, FPIC Trust II contemplated by
         Declaration II and/or FPIC Trust III contemplated by Declaration III.

         Section 2.5       Amendment to Section 7.14 - Certain Covenants
Relating to Debt Securities. Section 7.14 - Certain Covenants Relating to Debt
Securities of "ARTICLE VII NEGATIVE COVENANTS" of the Existing Credit Agreement
is hereby amended to strike the word "and" at the end of Section 7.14(e), to
strike the "." at the end of Section 7.14(f) and insert "; and" in its place and
to add the following new Section 7.14(g):

                  (g)      permit or allow FPIC Trust III to own or hold any
         assets or property other than the Junior Subordinated Debt Securities
         III (or the proceeds thereof), or to engage in any business other than
         the sale

                                        3
<PAGE>

         of the "Securities" contemplated by Declaration III or other activities
         deemed necessary, advisable or incidental thereto.

                                   ARTICLE III

                    CONSENT AND WAIVER OF COVENANT VIOLATION
                    ----------------------------------------

         Section 3.1       Consent and Waiver. Under the terms and conditions of
Section 2.10(a) - Mandatory Prepayments; Mandatory Liquid Collateral of Section
2.10 Prepayments of "ARTICLE II - AMOUNT AND TERMS OF THE COMMITMENTS" of the
Existing Credit Agreement, the Borrower is required to make mandatory principal
prepayments from 100% of Net Cash Proceeds received from any Equity Issuance or
Debt Issuance. Notwithstanding the foregoing provisions of Section 2.10(a) to
the contrary, the Administrative Agent and the Lenders hereby agree that a
portion of the Net Cash Proceeds from the issuance of the Junior Subordinated
Debt Securities III may be used by the Borrower to pay any applicable Swap
Unwind Fees in lieu of the mandatory principal prepayment otherwise required by
said Section 2.10(a) and, further, pursuant to Section 10.2(b) of the Existing
Credit Agreement, hereby agree, effective as of the Amendment No. 4 Effective
Date, to waive the mandatory prepayment covenant set forth in Section 2.10(a) of
the Existing Credit Agreement to permit the use of a portion of such Net Cash
Proceeds to pay such Swap Unwind Fees; provided, that the Borrower shall be in
full compliance with such mandatory prepayment covenant at all times after the
Amendment No. 4 Effective Date.

         Section 3.2       No Future Waiver. The waiver set forth in Section 3.1
is a one-time waiver, applicable only to the Borrower's non-compliance with the
mandatory prepayment covenant set forth in Section 2.10(a) of the Existing
Credit Agreement prior to the Amendment No. 4 Effective Date, and shall not be
construed to be (a) a waiver as to future compliance with Section 2.10(a) of the
Amended Credit Agreement, (b) a waiver of any Default or Event of Default that
may now or hereafter exist, or (c) an amendment of or modification to the
Existing Credit Agreement. The Administrative Agent and the Lenders hereby
reserve all of their rights, powers and remedies under the Amended Credit
Agreement, after giving effect to this Amendment, and applicable law.

                                   ARTICLE IV

                           CONDITIONS TO EFFECTIVENESS
                           ---------------------------

         This Amendment shall be and become effective as of the date hereof (the
"Amendment No. 4 Effective Date") when all of the conditions set forth in this
Article IV shall have been satisfied, as reasonably determined by the
Administrative Agent, and thereafter, this Amendment shall be known, and may be
referred to, as "Amendment No. 4":

         Section 4.1       Approval by Required Lenders. The Required Lenders
shall have approved the modifications and amendments set forth in this
Amendment, such approval to be evidenced by such Required Lenders' execution of
counterparts of this Amendment as set forth in Section 4.2.

         Section 4.2       Execution of Counterparts. The Administrative Agent
shall have received (including by telecopy) counterparts of this Amendment that
shall have been duly executed on behalf of the Borrower, the Subsidiary
Guarantors, the Administrative Agent and the Required Lenders.

         Section 4.3       Legal Details, Etc. All documents executed or
submitted pursuant hereto shall be reasonably satisfactory in form and substance
to the Administrative Agent and its counsel prior to or by the time of closing.
Prior to or by the time of closing, the Administrative Agent and its counsel
shall have received all information, certificates, resolutions, legal opinions
and other documents, and such counterpart originals or such certified or other
copies of such originals as the Administrative Agent or its counsel may
reasonably request, and all legal matters incident to the transactions
contemplated by this Amendment shall be reasonably satisfactory to the
Administrative Agent and its counsel.

         Section 4.4       Payment of Waiver/Modification Fee. [Not Applicable]

                                        4
<PAGE>

         Section 4.5       Payment of Other Fees and Expenses. The Borrower
shall have paid all out-of-pocket costs and expenses of the Administrative
Agent, including the reasonable fees, charges and disbursements of counsel for
the Administrative Agent, in connection with the preparation, execution and
delivery of this Amendment.

                                    ARTICLE V

                                  MISCELLANEOUS
                                  -------------

         Section 5.1       Representations and Warranties. The Borrower hereby
represents and warrants to the Administrative Agent and the Lenders that, after
giving effect to this Amendment, (a) no Default or Event of Default exists under
the Existing Credit Agreement or any of the other Loan Documents, (b) all
representations and warranties of each Loan Party set forth in the Loan
Documents are true and correct in all material respects on and as of the date
hereof (except for those which expressly relate to an earlier date), (c) since
the date of the most recent financial statements of the Borrower described in
Section 5.1(a) or (b) of the Existing Credit Agreement, there has been no change
which has had or could reasonably be expected to have a Material Adverse Effect,
and (d) the Loan Documents are legal, valid and binding obligations of the
respective Loan Parties and are enforceable by the Administrative Agent and the
Lenders, as applicable, against such Loan Parties in accordance with their
respective terms.

         Section 5.2       Cross References. References in this Amendment to any
Section are, unless otherwise specified, to such Section of this Amendment.

         Section 5.3       Instrument Pursuant to Existing Credit Agreement.
This Amendment is a document executed pursuant to the Existing Credit Agreement
and shall (unless otherwise expressly indicated therein) be construed,
administered and applied in accordance with the terms and provisions of the
Existing Credit Agreement.

         Section 5.4       Loan Documents. The Borrower and the Subsidiary
Guarantors hereby confirm and agree that the Loan Documents are, and shall
continue to be, in full force and effect and hereby ratify and approve in all
respects their obligations thereunder, except that, upon the effectiveness of,
and on and after the date of this Amendment, all references in each Loan
Document to the "Credit Agreement", "thereunder", "thereof" or words of like
import referring to the Existing Credit Agreement shall mean the Amended Credit
Agreement.

         Section 5.5       Counterparts, Effectiveness, Etc. This Amendment may
be executed by the parties hereto in several counterparts, each of which shall
be deemed to be an original and all of which shall constitute together but one
and the same agreement. The parties may execute facsimile copies of this
Amendment and the facsimile signature of any such party shall be deemed an
original and fully binding on said party; provided, any party executing this
Amendment by facsimile signature agrees to promptly provide six (6) original
executed copies of this Amendment to Administrative Agent.

         Section 5.6       Governing Law; Etc. This Amendment shall be governed
by and construed in accordance with the applicable terms and provisions of
Section 10.5 - Governing Law; Jurisdiction; Consent to Service of Process of
"ARTICLE X - MISCELLANEOUS" of the Existing Credit Agreement, which terms and
provisions are incorporated herein by reference.

         Section 5.7       No Other Modifications. Except as hereby amended, no
other term, condition or provision of the Existing Credit Agreement shall be
deemed modified or amended, and this Amendment shall not be considered a
novation.

         Section 5.8       Successors and Assigns. This Amendment shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

              [The remainder of this page intentionally left blank]

                                        5
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed [under seal in the case of the Borrower] by their respective duly
authorized officers as of the day and year first above written.

                                         FPIC INSURANCE GROUP, INC.

                                         By:    /s/ Kim D. Thorpe
                                             -----------------------------------
                                             Name:  Kim D. Thorpe
                                             Title: Executive Vice President
                                                    and Chief Financial Officer

                                                                          [SEAL]

                                         SUNTRUST BANK

                                         as Administrative Agent, as Collateral
                                         Agent, as Issuing Bank, and as a Lender

                                         By:    /s/ Edward E. Wooten
                                             -----------------------------------
                                             Name:  Edward E. Wooten
                                             Title: Director

                                         Revolving Commitment: $10,104,545(1)
                                         Term Loan Commitment: $0

--------------------------------------------------------------------------------
(1) Subject to permanent reduction in accordance with such Lender's Pro Rata
Share as provided in this Amendment.

                                       S-1
<PAGE>

                                         COMPASS BANK

                                         By:    /s/ C. French Yarbrough, Jr.
                                             -----------------------------------
                                             Name:  C. French Yarbrough, Jr.
                                             Title: Senior Vice President

                                         Revolving Commitment: $3,545,455(1)
                                         Term Loan Commitment: $0

--------------------------------------------------------------------------------
(1) Subject to permanent reduction in accordance with such Lender's Pro Rata
Share as provided in this Amendment.

                                       S-2
<PAGE>

                                         BROWN BROTHERS HARRIMAN & CO.

                                         By:    /s/ W. Carter Sullivan
                                             -----------------------------------
                                             Name:  W. Carter Sullivan
                                             Title: Partner

                                         Revolving Commitment: $2,304,545(1)
                                         Term Loan Commitment: $0

--------------------------------------------------------------------------------
(1) Subject to permanent reduction in accordance with such Lender's Pro Rata
Share as provided in this Amendment.

                                       S-3
<PAGE>

                                         REGIONS BANK

                                         By:    /s/ Anthony Nigro
                                             -----------------------------------
                                             Name:  Anthony Nigro
                                             Title: Vice President

                                         Revolving Commitment: $1,772,727(1)
                                         Term Loan Commitment: $0

--------------------------------------------------------------------------------
(1) Subject to permanent reduction in accordance with such Lender's Pro Rata
Share as provided in this Amendment.

                                       S-4
<PAGE>

                                         CAROLINA FIRST BANK

                                         By:    /s/ Charles D. Chamberlain
                                             -----------------------------------
                                             Name:  Charles D. Chamberlain
                                             Title: Executive Vice President

                                         Revolving Commitment: $1,772,727(1)
                                         Term Loan Commitment: $0

--------------------------------------------------------------------------------
(1) Subject to permanent reduction in accordance with such Lender's Pro Rata
Share as provided in this Amendment.

                                       S-5
<PAGE>

                        JOINDER OF SUBSIDIARY GUARANTORS
                        --------------------------------

         The undersigned, each being a Subsidiary Guarantor, do hereby
acknowledge and consent to, and agree to be bound by, the foregoing
modifications and amendments to the Existing Credit Agreement as set forth in
this Amendment and to each of the other terms and conditions thereof, and agree
that the Subsidiary Guaranty shall continue in full force and effect and binding
upon and enforceable against such Subsidiary Guarantors in accordance with its
terms from and after the date hereof.

         Dated as of the 9th day of October, 2003.

                                         FPIC INSURANCE AGENCY, INC.

                                         By:    /s/ Kim D. Thorpe
                                             -----------------------------------
                                             Name:  Kim D. Thorpe
                                             Title: Vice President and Treasurer

                                         EMPLOYERS MUTUAL, INC.

                                         By:    /s/ Kim D. Thorpe
                                             -----------------------------------
                                             Name:  Kim D. Thorpe
                                             Title: Vice President

                                         PROFESSIONAL STRATEGY OPTIONS,
                                             INC.

                                         By:    /s/ Kim D. Thorpe
                                             -----------------------------------
                                             Name:  Kim D. Thorpe
                                             Title: Vice President and Treasurer

                                         ADMINISTRATORS FOR THE PROFESSIONS,
                                             INC.

                                         By:    /s/ Kim D. Thorpe
                                             -----------------------------------
                                             Name:  Kim D. Thorpe
                                             Title: Vice President

                                       S-6
<PAGE>

                                         GROUP DATA CORPORATION

                                         By:    /s/ Kim D. Thorpe
                                             -----------------------------------
                                             Name:  Kim D. Thorpe
                                             Title: Vice President

                                         FPIC INTERMEDIARIES, INC.

                                         By:    /s/ Kim D. Thorpe
                                             -----------------------------------
                                             Name:  Kim D. Thorpe
                                             Title: Vice President

                                       S-7<PAGE>

                                                                     EXHIBIT 4.1

                 SUB SURFACE WASTE MANAGEMENT OF DELAWARE, INC.
                 EMPLOYEE STOCK INCENTIVE PLAN FOR THE YEAR 2003

1. GENERAL PROVISIONS.

         1.1 PURPOSE. This Stock Incentive Plan (the "Plan") is intended to
allow designated officers and employees (all of whom are sometimes collectively
referred to herein as the "Employees," or individually as the "Employee") of Sub
Surface Waste Management of Delaware, Inc., a Delaware corporation (the
"Company") and its Subsidiaries (as that term is defined below) which they may
have from time to time (the Company and such Subsidiaries are referred to herein
as the "Company") to receive certain options (the "Stock Options") to purchase
common stock of the Company, par value $0.001 per share (the "Common Stock"),
and to receive grants of the Common Stock subject to certain restrictions (the
"Awards"). As used in this Plan, the term "Subsidiary" shall mean each
corporation which is a "subsidiary corporation" of the Company within the
meaning of Section 424(f) of the Internal Revenue Code of 1986, as amended (the
"Code"). The purpose of this Plan is to provide the Employees, who make
significant and extraordinary contributions to the long-term growth and
performance of the Company, with equity-based compensation incentives, and to
attract and retain the Employees.

         1.2 ADMINISTRATION.

         1.2.1 The Plan shall be administered by the Compensation Committee (the
"Committee") of, or appointed by, the Board of Directors of the Company (the
"Board"). The Committee shall select one of its members as Chairman and shall
act by vote of a majority of a quorum, or by unanimous written consent. A
majority of its members shall constitute a quorum. The Committee shall be
governed by the provisions of the Company's Bylaws and of Delaware law
applicable to the Board, except as otherwise provided herein or determined by
the Board.

         1.2.2 The Committee shall have full and complete authority, in its
discretion, but subject to the express provisions of this Plan (a) to approve
the Employees nominated by the management of the Company to be granted Awards or
Stock Options; (b) to determine the number of Awards or Stock Options to be
granted to an Employee; (c) to determine the time or times at which Awards or
Stock Options shall be granted; to establish the terms and conditions upon which
Awards or Stock Options may be exercised; (d) to remove or adjust any
restrictions and conditions upon Awards or Stock Options; (e) to specify, at the
time of grant, provisions relating to exercisability of Stock Options and to
accelerate or otherwise modify the exercisability of any Stock Options; and (f)
to adopt such rules and regulations and to make all other determinations deemed
necessary or desirable for the administration of this Plan. All interpretations
and constructions of this Plan by the Committee, and all of its actions
hereunder, shall be binding and conclusive on all persons for all purposes.

         1.2.3 The Company hereby agrees to indemnify and hold harmless each
Committee member and each Employee, and the estate and heirs of such Committee
member or Employee, against all claims, liabilities, expenses, penalties,
damages or other pecuniary losses, including legal fees, which such Committee
member or Employee, his estate or heirs may suffer as a result of his
responsibilities, obligations or duties in connection with this Plan, to the
extent that insurance, if any, does not cover the payment of such items. No
member of the Committee or the Board shall be liable for any action or
determination made in good faith with respect to this Plan or any Award or Stock
Option granted pursuant to this Plan.

         1.3 ELIGIBILITY AND PARTICIPATION. The Employees eligible under this
Plan shall be approved by the Committee from those Employees who, in the opinion
of the management of the Company, are in positions which enable them to make
significant contributions to the long-term performance and growth of the
Company. In selecting the Employees to whom Award or Stock Options may be
granted, consideration shall be given to factors such as employment position,
duties and responsibilities, ability, productivity, length of service, morale,
interest in the Company and recommendations of supervisors.

                                       1
<PAGE>

         1.4 SHARES SUBJECT TO THIS PLAN. The maximum number of shares of the
Common Stock that may be issued pursuant to this Plan shall be 200,000 subject
to adjustment pursuant to the provisions of Paragraph 4.1. If shares of the
Common Stock awarded or issued under this Plan are reacquired by the Company due
to a forfeiture or for any other reason, such shares shall be cancelled and
thereafter shall again be available for purposes of this Plan. If a Stock Option
expires, terminates or is cancelled for any reason without having been exercised
in full, the shares of the Common Stock not purchased thereunder shall again be
available for purposes of this Plan.

2. PROVISIONS RELATING TO STOCK OPTIONS.

         2.1 GRANTS OF STOCK OPTIONS. The Committee may grant Stock Options in
such amounts, at such times, and to the Employees nominated by the management of
the Company as the Committee, in its discretion, may determine. Stock Options
granted under this Plan shall constitute "incentive stock options" within the
meaning of Section 422 of the Code, if so designated by the Committee on the
date of grant. The Committee shall also have the discretion to grant Stock
Options which do not constitute incentive stock options, and any such Stock
Options shall be designated non-statutory stock options by the Committee on the
date of grant. The aggregate Fair Market Value (determined as of the time an
incentive stock option is granted) of the Common Stock with respect to which
incentive stock options are exercisable for the first time by any Employee
during any one calendar year (under all plans of the Company and any parent or
subsidiary of the Company) may not exceed the maximum amount permitted under
Section 422 of the Code (currently, $100,000.00). Non-statutory stock options
shall not be subject to the limitations relating to incentive stock options
contained in the preceding sentence. Each Stock Option shall be evidenced by a
written agreement (the "Option Agreement") in a form approved by the Committee,
which shall be executed on behalf of the Company and by the Employee to whom the
Stock Option is granted, and which shall be subject to the terms and conditions
of this Plan. In the discretion of the Committee, Stock Options may include
provisions (which need not be uniform), authorized by the Committee in its
discretion, that accelerate an Employee's rights to exercise Stock Options
following a "Change in Control," upon termination of the Employee's employment
by the Company without "Cause" or by the Employee for "Good Reason," as such
terms are defined in Paragraph 3.1 hereof. The holder of a Stock Option shall
not be entitled to the privileges of stock ownership as to any shares of the
Common Stock not actually issued to such holder.

         2.2 PURCHASE PRICE. The purchase price (the "Exercise Price") of shares
of the Common Stock subject to each Stock Option (the "Option Shares") shall not
be less than 85 percent of the Fair Market Value of the Common Stock on the date
of exercise. For an Employee holding greater than 10 percent of the total voting
power of all stock of the Company, either Common or Preferred, the Exercise
Price of an incentive stock option shall be at least 110 percent of the Fair
Market Value of the Common Stock on the date of the grant of the option. As used
herein, "Fair Market Value" means the mean between the highest and lowest
reported sales prices of the Common Stock on the New York Stock Exchange
Composite Tape or, if not listed on such exchange, on any other national
securities exchange on which the Common Stock is listed or on The Nasdaq Stock
Market, or, if not so listed on any other national securities exchange or The
Nasdaq Stock Market, then the average of the bid price of the Common Stock
during the last five trading days on the OTC Bulletin Board immediately
preceding the last trading day prior to the date with respect to which the Fair
Market Value is to be determined. If the Common Stock is not then publicly
traded, then the Fair Market Value of the Common Stock shall be the book value
of the Company per share as determined on the last day of March, June,
September, or December in any year closest to the date when the determination is
to be made. For the purpose of determining book value hereunder, book value
shall be determined by adding as of the applicable date called for herein the
capital, surplus, and undivided profits of the Company, and after having
deducted any reserves theretofore established; the sum of these items shall be
divided by the number of shares of the Common Stock outstanding as of said date,
and the quotient thus obtained shall represent the book value of each share of
the Common Stock of the Company.

         2.3 OPTION PERIOD. The Stock Option period (the "Term") shall commence
on the date of grant of the Stock Option and shall be 10 years or such shorter
period as is determined by the Committee. Each Stock Option shall provide that
it is exercisable over its term in such periodic installments as the Committee
may determine, subject to the provisions of Paragraph 2.4.1. Section 16(b) of
the Securities Exchange Act of 1934, as amended (the "Exchange Act") exempts
persons normally subject to the reporting requirements of Section 16(a) of the
Exchange Act (the "Section 16 Reporting Persons") pursuant to a qualified
employee stock option plan from the normal requirement of not selling until at
least six months and one day from the date the Stock Option is granted.

                                       2
<PAGE>

         2.4 EXERCISE OF OPTIONS.

         2.4.1 Each Stock Option may be exercised in whole or in part (but not
as to fractional shares) by delivering it for surrender or endorsement to the
Company, attention of the Corporate Secretary, at the principal office of the
Company, together with payment of the Exercise Price and an executed Notice and
Agreement of Exercise in the form prescribed by Paragraph 2.4.2. Payment may be
made (a) in cash, (b) by cashier's or certified check, (c) by surrender of
previously owned shares of the Common Stock valued pursuant to Paragraph 2.2 (if
the Committee authorizes payment in stock in its discretion), (d) by withholding
from the Option Shares which would otherwise be issuable upon the exercise of
the Stock Option that number of Option Shares equal to the exercise price of the
Stock Option, if such withholding is authorized by the Committee in its
discretion, or (e) in the discretion of the Committee, by the delivery to the
Company of the optionee's promissory note secured by the Option Shares, bearing
interest at a rate sufficient to prevent the imputation of interest under
Sections 483 or 1274 of the Code, and having such other terms and conditions as
may be satisfactory to the Committee. Subject to the provisions of this
Paragraph 2.4 and Paragraph 2.5, the Employee has the right to exercise his or
her Stock Options at the rate of at least 20% per year over five years from the
date the Stock Option is granted.

         2.4.2 Exercise of each Stock Option is conditioned upon the agreement
of the Employee to the terms and conditions of this Plan and of such Stock
Option as evidenced by the Employee's execution and delivery of a Notice and
Agreement of Exercise in a form to be determined by the Committee in its
discretion. Such Notice and Agreement of Exercise shall set forth the agreement
of the Employee that (a) no Option Shares will be sold or otherwise distributed
in violation of the Securities Act of 1933, as amended (the "Securities Act") or
any other applicable federal or state securities laws, (b) each Option Share
certificate may be imprinted with legends reflecting any applicable federal and
state securities law restrictions and conditions, (c) the Company may comply
with said securities law restrictions and issue "stop transfer" instructions to
its Transfer Agent and Registrar without liability, (d) if the Employee is a
Section 16 Reporting Person, the Employee will furnish to the Company a copy of
each Form 4 or Form 5 filed by said Employee and will timely file all reports
required under federal securities laws, and (e) the Employee will report all
sales of Option Shares to the Company in writing on a form prescribed by the
Company.

         2.4.3 No Stock Option shall be exercisable unless and until any
applicable registration or qualification requirements of federal and state
securities laws, and all other legal requirements, have been fully complied
with. At no time shall the total number of securities issuable upon exercise of
all outstanding options under this Plan, and the total number of securities
provided for under any bonus or similar plan or agreement of the Company exceed
a number of securities which is equal to 30% of the then outstanding securities
of the Company, unless a percentage higher than 30% is approved by at least
two-thirds of the outstanding securities entitled to vote. The Company will use
reasonable efforts to maintain the effectiveness of a Registration Statement
under the Securities Act for the issuance of Stock Options and shares acquired
thereunder, but there may be times when no such Registration Statement will be
currently effective. The exercise of Stock Options may be temporarily suspended
without liability to the Company during times when no such Registration
Statement is currently effective, or during times when, in the reasonable
opinion of the Committee, such suspension is necessary to preclude violation of
any requirements of applicable law or regulatory bodies having jurisdiction over
the Company. If any Stock Option would expire for any reason except the end of
its term during such a suspension, then if exercise of such Stock Option is duly
tendered before its expiration, such Stock Option shall be exercisable and
exercised (unless the attempted exercise is withdrawn) as of the first day after
the end of such suspension. The Company shall have no obligation to file any
Registration Statement covering resales of Option Shares.

         2.5 CONTINUOUS EMPLOYMENT. Except as provided in Paragraph 2.7 below,
an Employee may not exercise a Stock Option unless from the date of grant to the
date of exercise the Employee remains continuously in the employ of the Company.
For purposes of this Paragraph 2.5, the period of continuous employment of an
Employee with the Company shall be deemed to include (without extending the term
of the Stock Option) any period during which the Employee is on leave of absence
with the consent of the Company, provided that such leave of absence shall not
exceed three months and that the Employee returns to the employ of the Company
at the expiration of such leave of absence. If the Employee fails to return to
the employ of the Company at the expiration of such leave of absence, the
Employee's employment with the Company shall be deemed terminated as of the date
such leave of absence commenced. The continuous employment of an Employee with

                                       3
<PAGE>

the Company shall also be deemed to include any period during which the Employee
is a member of the Armed Forces of the United States, provided that the Employee
returns to the employ of the Company within 90 days (or such longer period as
may be prescribed by law) from the date the Employee first becomes entitled to a
discharge from military service. If an Employee does not return to the employ of
the Company within 90 days (or such longer period as may be prescribed by law)
from the date the Employee first becomes entitled to a discharge from military
service, the Employee's employment with the Company shall be deemed to have
terminated as of the date the Employee's military service ended.

         2.6 RESTRICTIONS ON TRANSFER. Each Stock Option granted under this Plan
shall be transferable only by will or the laws of descent and distribution. No
interest of any Employee under this Plan shall be subject to attachment,
execution, garnishment, sequestration, the laws of bankruptcy or any other legal
or equitable process. Each Stock Option granted under this Plan shall be
exercisable during an Employee's lifetime only by the Employee or by the
Employee's legal representative.

         2.7 TERMINATION OF EMPLOYMENT.

         2.7.1 Upon an Employee's Retirement, Disability (both terms being
defined below) or death, (a) all Stock Options to the extent then presently
exercisable shall remain in full force and effect and may be exercised pursuant
to the provisions thereof, and (b) unless otherwise provided by the Committee,
all Stock Options to the extent not then presently exercisable by the Employee
shall terminate as of the date of such termination of employment and shall not
be exercisable thereafter. Unless employment is terminated for cause, as defined
by applicable law, the right to exercise in the event of termination of
employment, to the extent that the optionee is entitled to exercise on the date
the employment terminates as follows:

                  (i) At least 6 months from the date of termination if
termination was caused by death or disability.

                  (ii) At least 30 days from the date of termination if
termination was caused by other than death or disability.

         2.7.2 Upon the termination of the employment of an Employee for any
reason other than those specifically set forth in Paragraph 2.7.1, (a) all Stock
Options to the extent then presently exercisable by the Employee shall remain
exercisable only for a period of 90 days after the date of such termination of
employment (except that the 90 day period shall be extended to 12 months if the
Employee shall die during such 90 day period), and may be exercised pursuant to
the provisions thereof, including expiration at the end of the fixed term
thereof, and (b) unless otherwise provided by the Committee, all Stock Options
to the extent not then presently exercisable by the Employee shall terminate as
of the date of such termination of employment and shall not be exercisable
thereafter.

         2.7.3 For purposes of this Plan:

                  (a) "Retirement" shall mean an Employee's retirement from the
employ of the Company on or after the date on which the Employee attains the age
of 65 years; and

                  (b) "Disability" shall mean total and permanent incapacity of
an Employee, due to physical impairment or legally established mental
incompetence, to perform the usual duties of the Employee's employment with the
Company, which disability shall be determined (i) on medical evidence by a
licensed physician designated by the Committee, or (ii) on evidence that the
Employee has become entitled to receive primary benefits as a disabled employee
under the Social Security Act in effect on the date of such disability.

3. PROVISIONS RELATING TO AWARDS.

         3.1 GRANT OF AWARDS. Subject to the provisions of this Plan, the
Committee shall have full and complete authority, in its discretion, but subject
to the express provisions of this Plan, to (1) grant Awards pursuant to this
Plan, (2) determine the number of shares of the Common Stock subject to each
Award (the "Award Shares"), (3) determine the terms and conditions (which need
not be identical) of each Award, including the consideration (if any) to be paid

                                       4
<PAGE>

by the Employee for such the Common Stock, which may, in the Committee's
discretion, consist of the delivery of the Employee's promissory note meeting
the requirements of Paragraph 2.4.1, (4) establish and modify performance
criteria for Awards, and (5) make all of the determinations necessary or
advisable with respect to Awards under this Plan. Each Award under this Plan
shall consist of a grant of shares of the Common Stock subject to a restriction
period (after which the restrictions shall lapse), which shall be a period
commencing on the date the Award is granted and ending on such date as the
Committee shall determine (the "Restriction Period"). The Committee may provide
for the lapse of restrictions in installments, for acceleration of the lapse of
restrictions upon the satisfaction of such performance or other criteria or upon
the occurrence of such events as the Committee shall determine, and for the
early expiration of the Restriction Period upon an Employee's death, Disability
or Retirement as defined in Paragraph 2.7.3, or, following a Change of Control,
upon termination of an Employee's employment by the Company without "Cause" or
by the Employee for "Good Reason," as those terms are defined herein. For
purposes of this Plan:

         "Change of Control" shall be deemed to occur (a) on the date the
Company first has actual knowledge that any person (as such term is used in
Sections 13(d) and 14(d)(2) of the Exchange Act) has become the beneficial owner
(as defined in Rule 13(d)-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing 40 percent or more of the combined voting
power of the Company's then outstanding securities, or (b) on the date the
stockholders of the Company approve (i) a merger of the Company with or into any
other corporation in which the Company is not the surviving corporation or in
which the Company survives as a subsidiary of another corporation, (ii) a
consolidation of the Company with any other corporation, or (iii) the sale or
disposition of all or substantially all of the Company's assets or a plan of
complete liquidation.

         "Cause," when used with reference to termination of the employment of
an Employee by the Company for "Cause," shall mean:

                  (a) The Employee's continuing willful and material breach of
his duties to the Company after he receives a demand from the Chief Executive of
the Company specifying the manner in which he has willfully and materially
breached such duties, other than any such failure resulting from Disability of
the Employee or his resignation for "Good Reason," as defined herein; or

                  (b) The conviction of the Employee of a felony; or

                  (c) The Employee's commission of fraud in the course of his
employment with the Company, such as embezzlement or other material and
intentional violation of law against the Company; or

                  (d) The Employee's gross misconduct causing material harm to
the Company.

         "Good Reason" shall mean any one or more of the following, occurring
following or in connection with a Change of Control and within 90 days prior to
the Employee's resignation, unless the Employee shall have consented thereto in
writing:

                  (a) The assignment to the Employee of duties inconsistent with
his executive status prior to the Change of Control or a substantive change in
the officer or officers to whom he reports from the officer or officers to whom
he reported immediately prior to the Change of Control; or

                  (b) The elimination or reassignment of a majority of the
duties and responsibilities that were assigned to the Employee immediately prior
to the Change of Control; or

                  (c) A reduction by the Company in the Employee's annual base
salary as in effect immediately prior to the Change of Control; or

                  (d) The Company requiring the Employee to be based anywhere
outside a 35-mile radius from his place of employment immediately prior to the
Change of Control, except for required travel on the Company's business to an
extent substantially consistent with the Employee's business travel obligations
immediately prior to the Change of Control; or

                                       5
<PAGE>

                  (e) The failure of the Company to grant the Employee a
performance bonus reasonably equivalent to the same percentage of salary the
Employee normally received prior to the Change of Control, given comparable
performance by the Company and the Employee; or

                  (f) The failure of the Company to obtain a satisfactory
Assumption Agreement (as defined in Paragraph 4.13 of this Plan) from a
successor, or the failure of such successor to perform such Assumption
Agreement.

         3.2 INCENTIVE AGREEMENTS. Each Award granted under this Plan shall be
evidenced by a written agreement (an "Incentive Agreement") in a form approved
by the Committee and executed by the Company and the Employee to whom the Award
is granted. Each Incentive Agreement shall be subject to the terms and
conditions of this Plan and other such terms and conditions as the Committee may
specify.

         3.3 AMENDMENT, MODIFICATION AND WAIVER OF RESTRICTIONS. The Committee
may modify or amend any Award under this Plan or waive any restrictions or
conditions applicable to the Award; provided, however, that the Committee may
not undertake any such modifications, amendments or waivers if the effect
thereof materially increases the benefits to any Employee, or adversely affects
the rights of any Employee without his consent.

         3.4 TERMS AND CONDITIONS OF AWARDS. Upon receipt of an Award of shares
of the Common Stock under this Plan, even during the Restriction Period, an
Employee shall be the holder of record of the shares and shall have all the
rights of a stockholder with respect to such shares, subject to the terms and
conditions of this Plan and the Award.

         3.4.1 Except as otherwise provided in this Paragraph 3.4, no shares of
the Common Stock received pursuant to this Plan shall be sold, exchanged,
transferred, pledged, hypothecated or otherwise disposed of during the
Restriction Period applicable to such shares. Any purported disposition of such
the Common Stock in violation of this Paragraph 3.4 shall be null and void.

         3.4.2 If an Employee's employment with the Company terminates prior to
the expiration of the Restriction Period for an Award, subject to any provisions
of the Award with respect to the Employee's death, Disability or Retirement, or
Change of Control, all shares of the Common Stock subject to the Award shall be
immediately forfeited by the Employee and reacquired by the Company, and the
Employee shall have no further rights with respect to the Award. In the
discretion of the Committee, an Incentive Agreement may provide that, upon the
forfeiture by an Employee of Award Shares, the Company shall repay to the
Employee the consideration (if any) which the Employee paid for the Award Shares
on the grant of the Award. In the discretion of the Committee, an Incentive
Agreement may also provide that such repayment shall include an interest factor
on such consideration from the date of the grant of the Award to the date of
such repayment.

         3.4.3 The Committee may require under such terms and conditions as it
deems appropriate or desirable that (a) the certificates for the Common Stock
delivered under this Plan are to be held in custody by the Company or a person
or institution designated by the Company until the Restriction Period expires,
(b) such certificates shall bear a legend referring to the restrictions on the
Common Stock pursuant to this Plan, and (c) the Employee shall have delivered to
the Company a stock power endorsed in blank relating to the Common Stock.

4. MISCELLANEOUS PROVISIONS.

         4.1 ADJUSTMENTS UPON CHANGE IN CAPITALIZATION.

         4.1.1 The number and class of shares subject to each outstanding Stock
Option, the Exercise Price thereof (but not the total price), the maximum number
of Stock Options that may be granted under this Plan, the minimum number of
shares as to which a Stock Option may be exercised at any one time, and the
number and class of shares subject to each outstanding Award, shall be
proportionately adjusted in the event of any increase or decrease in the number
of the issued shares of the Common Stock which results from a split-up or
consolidation of shares, payment of a stock dividend or dividends exceeding a
total of five percent for which the record dates occur in any one fiscal year, a
recapitalization (other than the conversion of convertible securities according

                                       6
<PAGE>

to their terms), a combination of shares or other like capital adjustment, so
that (a) upon exercise of the Stock Option, the Employee shall receive the
number and class of shares the Employee would have received had the Employee
been the holder of the number of shares of the Common Stock for which the Stock
Option is being exercised upon the date of such change or increase or decrease
in the number of issued shares of the Company, and (b) upon the lapse of
restrictions of the Award Shares, the Employee shall receive the number and
class of shares the Employee would have received if the restrictions on the
Award Shares had lapsed on the date of such change or increase or decrease in
the number of issued shares of the Company.

         4.1.2 Upon a reorganization, merger or consolidation of the Company
with one or more corporations as a result of which the Company is not the
surviving corporation or in which the Company survives as a wholly-owned
subsidiary of another corporation, or upon a sale of all or substantially all of
the property of the Company to another corporation, or any dividend or
distribution to stockholders of more than 10 percent of the Company's assets,
adequate adjustment or other provisions shall be made by the Company or other
party to such transaction so that there shall remain and/or be substituted for
the Option Shares and Award Shares provided for herein, the shares, securities
or assets which would have been issuable or payable in respect of or in exchange
for such Option Shares and Award Shares then remaining, as if the Employee had
been the owner of such shares as of the applicable date. Any securities so
substituted shall be subject to similar successive adjustments.

         4.2 WITHHOLDING TAXES. The Company shall have the right at the time of
exercise of any Stock Option, the grant of an Award, or the lapse of
restrictions on Award Shares, to make adequate provision for any federal, state,
local or foreign taxes which it believes are or may be required by law to be
withheld with respect to such exercise (the "Tax Liability"), to ensure the
payment of any such Tax Liability. The Company may provide for the payment of
any Tax Liability by any of the following means or a combination of such means,
as determined by the Committee in its sole and absolute discretion in the
particular case (1) by requiring the Employee to tender a cash payment to the
Company, (2) by withholding from the Employee's salary, (3) by withholding from
the Option Shares which would otherwise be issuable upon exercise of the Stock
Option, or from the Award Shares on their grant or date of lapse of
restrictions, that number of Option Shares or Award Shares having an aggregate
Fair Market Value (determined in the manner prescribed by Paragraph 2.2) as of
the date the withholding tax obligation arises in an amount which is equal to
the Employee's Tax Liability or (4) by any other method deemed appropriate by
the Committee. Satisfaction of the Tax Liability of a Section 16 Reporting
Person may be made by the method of payment specified in clause (3) above only
if the following two conditions are satisfied:

                  (a) The withholding of Option Shares or Award Shares and the
exercise of the related Stock Option occur at least six months and one day
following the date of grant of such Stock Option or Award; and

                  (b) The withholding of Option Shares or Award Shares is made
either (i) pursuant to an irrevocable election (the "Withholding Election") made
by the Employee at least six months in advance of the withholding of Options
Shares or Award Shares, or (ii) on a day within a 10-day "window period"
beginning on the third business day following the date of release of the
Company's quarterly or annual summary statement of sales and earnings.

         Anything herein to the contrary notwithstanding, a Withholding Election
may be disapproved by the Committee at any time.

         4.3 RELATIONSHIP TO OTHER EMPLOYEE BENEFIT PLANS. Stock Options and
Awards granted hereunder shall not be deemed to be salary or other compensation
to any Employee for purposes of any pension, thrift, profit-sharing, stock
purchase or any other employee benefit plan now maintained or hereafter adopted
by the Company.

         4.4 AMENDMENTS AND TERMINATION. The Board of Directors may at any time
suspend, amend or terminate this Plan. No amendment, except as provided in
Paragraph 3.3, or modification of this Plan may be adopted, except subject to
stockholder approval, which would (1) materially increase the benefits accruing
to the Employees under this Plan, (2) materially increase the number of
securities which may be issued under this Plan (except for adjustments pursuant
to Paragraph 4.1 hereof), or (3) materially modify the requirements as to
eligibility for participation in this Plan.

                                       7
<PAGE>

         4.5 SUCCESSORS IN INTEREST. The provisions of this Plan and the actions
of the Committee shall be binding upon all heirs, successors and assigns of the
Company and of the Employees.

         4.6 OTHER DOCUMENTS. All documents prepared, executed or delivered in
connection with this Plan (including, without limitation, Option Agreements and
Incentive Agreements) shall be, in substance and form, as established and
modified by the Committee; provided, however, that all such documents shall be
subject in every respect to the provisions of this Plan, and in the event of any
conflict between the terms of any such document and this Plan, the provisions of
this Plan shall prevail.

         4.7 FAIRNESS OF THE REPURCHASE PRICE. In the event that the Company
repurchases securities upon termination of employment pursuant to this Plan,
either: (a) the price will not be less than the fair market value of the
securities to be repurchased on the date of termination of employment, and the
right to repurchase will be exercised for cash or cancellation of purchase money
indebtedness for the securities within 90 days of termination of the employment
(or in the case of securities issued upon exercise of options after the date of
termination, within 90 days after the date of the exercise), and the right
terminates when the Company's securities become publicly traded, or (b) Company
will repurchase securities at the original purchase price, provided that the
right to repurchase at the original purchase price lapses at the rate of at
least 20% of the securities per year over five years from the date the option is
granted (without respect to the date the option was exercised or became
exercisable) and the right to repurchase must be exercised for cash or
cancellation of purchase money indebtedness for the securities within 90 days of
termination of employment (or in case of securities issued upon exercise of
options after the date of termination, within 90 days after the date of the
exercise).

         4.8 NO OBLIGATION TO CONTINUE EMPLOYMENT. This Plan and the grants
which might be made hereunder shall not impose any obligation on the Company to
continue to employ any Employee. Moreover, no provision of this Plan or any
document executed or delivered pursuant to this Plan shall be deemed modified in
any way by any employment contract between an Employee (or other employee) and
the Company.

         4.9 MISCONDUCT OF AN EMPLOYEE. Notwithstanding any other provision of
this Plan, if an Employee commits fraud or dishonesty toward the Company or
wrongfully uses or discloses any trade secret, confidential data or other
information proprietary to the Company, or intentionally takes any other action
which results in material harm to the Company, as determined by the Committee,
in its sole and absolute discretion, the Employee shall forfeit all rights and
benefits under this Plan.

         4.10 TERM OF PLAN. No Stock Option shall be exercisable, or Award
granted, unless and until the Directors of the Company have approved this Plan
and all other legal requirements have been met. This Plan was adopted by the
Board effective October 31, 2003. No Stock Options or Awards may be granted
under this Plan after October 31, 2013.

         4.11 GOVERNING LAW. This Plan and all actions taken thereunder shall be
governed by, and construed in accordance with, the laws of the State of
Delaware.

         4.12 APPROVAL. This Plan must be approved by a majority of the
outstanding securities entitled to vote within 12 months before or after this
Plan is adopted or the date the agreement is entered into. Any securities
purchased before security holder approval is obtained must be rescinded if
security holder approval is not obtained within 12 months before or after this
Plan is adopted or the date the agreement is entered into. Such securities shall
not be counted in determining whether such approval is obtained.

         4.13 ASSUMPTION AGREEMENTS. The Company will require each successor,
(direct or indirect, whether by purchase, merger, consolidation or otherwise),
to all or substantially all of the business or assets of the Company, prior to
the consummation of each such transaction, to assume and agree to perform the
terms and provisions remaining to be performed by the Company under each
Incentive Agreement and Stock Option and to preserve the benefits to the
Employees thereunder. Such assumption and agreement shall be set forth in a
written agreement in form and substance satisfactory to the Committee (an
"Assumption Agreement"), and shall include such adjustments, if any, in the

                                       8

<PAGE>

application of the provisions of the Incentive Agreements and Stock Options and
such additional provisions, if any, as the Committee shall require and approve,
in order to preserve such benefits to the Employees. Without limiting the
generality of the foregoing, the Committee may require an Assumption Agreement
to include satisfactory undertakings by a successor:

                  (a) To provide liquidity to the Employees at the end of the
Restriction Period applicable to the Common Stock awarded to them under this
Plan, or on the exercise of Stock Options;

                  (b) If the succession occurs before the expiration of any
period specified in the Incentive Agreements for satisfaction of performance
criteria applicable to the Common Stock awarded thereunder, to refrain from
interfering with the Company's ability to satisfy such performance criteria or
to agree to modify such performance criteria and/or waive any criteria that
cannot be satisfied as a result of the succession;

                  (c) To require any future successor to enter into an
Assumption Agreement; and

                  (d) To take or refrain from taking such other actions as the
Committee may require and approve, in its discretion.

         4.14 COMPLIANCE WITH RULE 16B-3. Transactions under this Plan are
intended to comply with all applicable conditions of Rule 16b-3 promulgated
under the Exchange Act. To the extent that any provision of this Plan or action
by the Committee fails to so comply, it shall be deemed null and void, to the
extent permitted by law and deemed advisable by the Committee.

         4.15 INFORMATION TO SHAREHOLDERS. The Company shall furnish to each of
its stockholders financial statements of the Company at least annually.

         IN WITNESS WHEREOF, this Plan has been executed effective as of October
31, 2003.

                                                 SUB SURFACE WASTE MANAGEMENT OF
                                                 DELAWARE, INC.

                                                 By /S/ BRUCE S. BEATTIE
                                                    ----------------------------
                                                    Bruce S. Beattie, President

                                       9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]