Document:

EXHIBIT 10.3

         TERMS AND CONDITIONS OF STOCK OPTION AWARD GRANTED TO YOU (THE
           "PARTICIPANT") UNDER THE BEAR STEARNS COMPANIES INC. STOCK
                      AWARD PLAN, AS AMENDED AND RESTATED

            This document contains the Terms and Conditions applicable to an
award, with respect to Fiscal Year     , of a stock option made to the
Participant on                   (the "Grant Date") by the Compensation
Committee (the "Committee") of The Bear Stearns Companies Inc., a Delaware
corporation (the "Company"), under The Bear Stearns Companies Inc. Stock Award
Plan, as amended and restated (the "Plan").

            1. Grant of Option. The Committee has granted to the Participant,
with respect to Fiscal Year     , a stock option (the "Option") to purchase the
number of shares of the Company's common stock, par value $1.00 per share (the
"Shares") set forth in the letter dated January {         } from the
Compensation Committee of The Bear Stearns Companies Inc., at an exercise price
per share (the "Option Price") of $      . The number and kind of shares
purchasable under the Option and the Option Price are subject to adjustment as
specified in Section 17 of the Plan. The Option is a non-qualified stock option
and not an incentive stock option within the meaning of Section 422 of the
Internal Revenue Code.

            2. Incorporation of Plan By Reference. A copy of the Plan has been
made available to Participant. All of the terms, conditions and other provisions
of the Plan are incorporated by reference herein. Capitalized terms used in
these Terms and Conditions but not defined herein shall have the same meanings
as in the Plan. If there is any conflict between the provisions of these Terms
and Conditions and mandatory provisions of the Plan, the provisions of the Plan
govern. The Participant agrees to be bound by all the terms and provisions of
the Plan (as presently in effect or later amended), rules and regulations under
the Plan adopted from time to time, and decisions and determinations of the
Committee made from time to time.

            3. Exercisability and Expiration of the Option. The Option shall be
fully exercisable as of the Grant Date and shall, subject to Sections 5(b), (c)
and (f) hereof, expire on the close of business on the tenth anniversary of the
Grant Date (the "Stated Expiration Date"). Notwithstanding the foregoing, the
Participant shall be precluded from exercising the Option during any period in
which the Participant is suspended from employment by the Company or a
subsidiary or an affiliate of the Company or is on a personal leave of absence
in lieu of a suspension (in each case with or without pay) and any attempt to
exercise the Option during such period shall be null and void.

            4. Method of Exercise; Delivery of Shares. To exercise the Option,
Participant must (a) give written notice of exercise, signed by Participant, to
the Secretary of the Company and (b) pay to the Company in full the Option Price
of the Option for the number of shares of Common Stock being purchased either
(i) in cash (including by check), payable in United States dollars, (ii) by
delivery of Shares already owned by Participant for at least six months having a
fair market value (determined as of the date the Option is exercised) equal to
all or part of the aggregate Option Price being paid in this manner, (iii) in
accordance with a broker-assisted
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"cashless exercise" program if such program is at the time of exercise
authorized by the Committee, or (iv) in any other manner then permitted by the
Committee.

            Once Participant gives written notice of exercise, such notice may
not be revoked. As soon as practicable after Participant exercises the Option,
or part thereof, the Company will transfer Shares to Participant's brokerage
account at Bear, Stearns Securities Corp. or otherwise deliver Shares to
Participant. Participant shall be required to satisfy tax withholding
obligations in accordance with the terms of the Plan and any requirements the
Committee may impose thereunder. The Company has filed a registration statement
on Form S-8 under the Securities Act of 1933 covering the offer and sale of the
Shares pursuant to the Option, a copy of which is available upon request from
the Secretary of the Company. If for any reason an exercise occurs when no
effective registration statement covers such transaction, the Company will affix
to any certificate representing Option Shares any legend deemed necessary or
advisable by the Company. Participant acknowledges and agrees that sales of
Shares acquired by exercise of the Option will be subject to the Company's
policies regulating trading by employees, including the requirement that
transactions involving Shares be effected through Bear, Stearns Securities
Corp.; requirements may be modified for participants no longer employed by the
Company.

            As a condition precedent to the delivery of any shares of Common
Stock hereunder, the Participant or the Participant's beneficiaries or estate
(as applicable) shall execute a release, in a form acceptable to the Committee,
of any and all potential claims hereunder related to such delivery or to the
underlying Option to which the delivered Shares relate.

            5. Termination Provisions.

                  (a) Death. In the event of Participant's death (whether or not
      death resulted in Termination of Employment), the Option shall expire on
      the Stated Expiration Date.

                  (b) Disability.

                        (i) If there occurs a Participant's Termination of
            Employment due to Disability prior to the third anniversary of the
            Grant Date, the Option shall expire on the fifth anniversary of the
            Grant Date; provided, however, that if, at any time following the
            date of such Termination of Employment, the Participant fails to
            comply with the provisions of Section 6(a), or commences employment
            with or provides services to any entity, person, business or
            organization (other than an entity or an organization described in
            section 501(c)(3) of the Code or any political organization,
            including candidacy for public office or any activities pre-approved
            by the Committee), then all Options not previously exercised shall
            be immediately cancelled as of the initial time of such failure to
            comply with the provisions of Section 6(a) or the initial time at
            which the Participant commences employment;

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                        (ii) If there occurs a Participant's Termination of
            Employment due to Disability on or following the third anniversary
            of the Grant Date, the Option shall expire on the Stated Expiration
            Date; provided, however, that if, at any time following the date of
            such Termination of Employment, the Participant fails to comply with
            the provisions of Section 6(a), or commences employment with or
            provides services to any entity, person, business or organization
            (other than an entity or an organization described in section
            501(c)(3) of the Code or any political organization, including
            candidacy for public office or any activities pre-approved by the
            Committee), then all Options not previously exercised shall be
            immediately cancelled as of the initial time of such failure to
            comply with the provisions of Section 6(a) or the initial time at
            which the Participant commences employment; and

                        (iii) if, at any time during the period from the date of
            such Termination of Employment through the date which is one hundred
            eighty (180) days following the date of such Termination of
            Employment, the Participant fails to comply with the
            Non-Solicitation Requirement specified in Section 6(a)(v) hereof,
            then the Company at its election may seek an injunction, including
            an injunction in aid of arbitration, to enforce the provisions of
            Section 6(a)(v) from any court of competent jurisdiction.

                  (c) Retirement.

                        (i) If there occurs a Participant's Termination of
            Employment due to Retirement prior to the third anniversary of the
            Grant Date, the Option shall expire on the fifth anniversary of the
            Grant Date; provided, however, that if, at any time following the
            date of such Termination of Employment, the Participant fails to
            comply with the provisions of Section 6(a) or commences employment
            with or provides services to any entity, person, business or
            organization (other than an entity or an organization described in
            section 501(c)(3) of the Code or any political organization,
            including candidacy for public office or any activities pre-approved
            by the Committee), then all Options not previously exercised shall
            be immediately cancelled as of the initial time of such failure to
            comply with the provisions of Section 6(a) or the initial time at
            which the Participant commences employment;

                        (ii) If there occurs a Participant's Termination of
            Employment due to Retirement on or following the third anniversary
            of the Grant Date, the Option shall expire on the Stated Expiration
            Date; provided, however, that if, at any time following the date of
            such Termination of Employment, the Participant fails to comply with
            the provisions of Section 6(a), or commences employment with or
            provides services to any entity, person, business or organization
            (other than an entity or an organization described in section
            501(c)(3) of the Code or any political organization, including
            candidacy for public office or any activities pre-approved by the
            Committee), then all Options not previously exercised shall be

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            immediately cancelled as of the initial time of such failure to
            comply with the provisions of Section 6(a) or the initial time at
            which the Participant commences employment; and

                        (iii) if, at any time during the period from the date of
            such Termination of Employment through the date which is one hundred
            eighty (180) days following the date of such Termination of
            Employment, the Participant fails to comply with the
            Non-Solicitation Requirement specified in Section 6(a)(v) hereof,
            then the Company at its election may seek an injunction, including
            an injunction in aid of arbitration, to enforce the provisions of
            Section 6(a)(v) from any court of competent jurisdiction.

                  (d) Termination of Employment (1) by the Company with Cause or
      (2) following a suspension of employment or following a personal leave of
      absence in lieu of a suspension (in each case with or without pay) in
      circumstances in which the Participant does not return to full time
      employment following such suspension or leave. In the event of
      Participant's Termination of Employment by the Company with Cause or a
      Termination of Employment following a suspension of employment or
      following a personal leave of absence in lieu of a suspension (in each
      case with or without pay) in circumstances in which the Participant does
      not return to full time employment with the Company or a subsidiary or
      affiliate of the Company following such suspension or leave:

                        (i) the Option shall be cancelled and shall expire
            immediately upon such Termination of Employment; and

                        (ii) if, at any time during the period from the date of
            such Termination of Employment through the date which is one hundred
            eighty (180) days following the date of such Termination of
            Employment, the Participant fails to comply with the
            Non-Solicitation Requirement specified in Section 6(a)(v) hereof,
            then the Company at its election may seek an injunction, including
            an injunction in aid of arbitration, to enforce the provisions of
            Section 6(a)(v) from any court of competent jurisdiction.

                  (e) Termination of Employment by Participant other than by
      Retirement. In the event of Termination of Employment by Participant other
      than by Retirement:

                        (i) the Option shall expire on the 30th day after the
            Participant's Termination of Employment, but in no event later than
            the Stated Expiration Date; and

                        (ii) if, at any time during the period from the date of
            such Termination of Employment through the date which is one hundred
            eighty (180) days following the date of such Termination of
            Employment, the Participant fails to comply with the Non-
            Solicitation Requirement specified in Section 6(a)(v) hereof, then
            the Company at its election may seek an injunction, including an

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            injunction in aid of arbitration, to enforce the provisions of
            Section 6(a)(v) from any court of competent jurisdiction.

                  (f) Termination of Employment by the Company without Cause and
      without Disability:

                        (i) If there occurs a Participant's Termination of
            Employment by the Company (other than for Cause, Disability or under
            circumstances described in clause (d)(2) above) prior to the third
            anniversary of the Grant Date, the Option shall expire on the later
            of the 30th day after the Participant's Termination of Employment or
            the second anniversary of the Grant Date;

                        (ii) If there occurs a Participant's Termination of
            Employment by the Company (other than for Cause, Disability or under
            circumstances contemplated by clause (d)(2) above) on or after the
            third anniversary of the Grant Date, the Option shall expire on the
            30th day after the Participant's Termination of Employment;
            provided, however, that if, at the request of the Company, the
            Participant enters into a release (which becomes effective) of any
            and all potential claims against the Company, its Subsidiaries and
            its affiliates in a form acceptable to the Committee, then the
            Option shall expire on the second anniversary of the date of such
            Termination of Employment, but in no event later than the Stated
            Expiration Date;

                        (iii) if, at any time within two years following the
            date of such Termination of Employment, the Participant fails to
            comply with the provisions of Section 6(a)(ii), 6(a)(iii), 6(a)(iv)
            or 6(a)(v), then notwithstanding the proviso in paragraph (ii)
            above, that portion of the Option not previously exercised shall be
            immediately cancelled as of the initial time of such failure to
            comply with the provisions of Section 6(a)(ii) 6(a)(iii), 6(a)(iv)
            or 6(a)(v), but in no event earlier than the 30th day after the
            Participant's Termination of Employment; and

                        (iv) if, at any time during the period from the date of
            such Termination of Employment through the date which is one hundred
            eighty (180) days following the date of such Termination of
            Employment, the Participant fails to comply with the
            Non-Solicitation Requirement specified in Section 6(a)(v) hereof,
            then the Company at its election may seek an injunction, including
            an injunction in aid of arbitration, to enforce the provisions of
            Section 6(a)(v) from any court of competent jurisdiction.

                  (g) Termination of Employment following a Change in Control.
      Notwithstanding anything herein to the contrary, if within one year
      following the occurrence of a Change in Control there occurs a Termination
      of Employment by the Company (other than for Cause or Disability) or there
      occurs a Termination of Employment by the Participant for Good Reason,
      then (1) the Option shall remain exercisable for a period of two years
      from the date of such Termination of Employment,

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      but in no event later than the Stated Expiration Date, and (2) the Option
      shall no longer be subject to the provisions of Section 6(a) hereof.

                  (h) Certain Definitions. For purposes of these Terms and
      Conditions:

                        (i) "Cause" means the occurrence of any of the following
            as reasonably determined by the Appropriate Committee: (1) any act
            or omission which constitutes, or a series of acts or omissions when
            taken together which constitute, a material breach by the
            Participant of the terms of any employment agreement or other
            written document setting forth terms of employment, (2) notice to
            the Company or the Participant that the Participant is the subject
            or target of, or will or may become the subject or target of, any
            governmental or regulatory investigation relating to any acts or
            omissions in connection with the Participant's securities trading
            activity or employment with the Company, (3) any act or omission
            which constitutes conduct which has resulted in (i) a notification
            to an exchange or regulator by the Company or one of its
            subsidiaries or affiliates reporting such conduct, or (ii) a
            governmental or regulatory investigation related to conduct, (4) the
            filing of an indictment or a charge, or the notice to the Company or
            the Participant that an indictment or charge will or may be filed
            alleging the Participant's commission of a felony or commission of
            any crime that would constitute (i) any felony or (ii) a lesser
            crime or offense relating to any acts or omissions in connection
            with the Participant's employment with the Company which would
            result in a statutory disqualification of the Participant (5) the
            filing of an administrative charge or the notice to the Company or
            the Participant that a charge will or may be filed against the
            Participant by a regulatory agency in connection with the
            Participant's employment activities, (6) the Participant's violation
            of a material policy of the Company, (7) the Participant's violation
            of a specific lawful direction from a person to whom the Participant
            reports within the scope of Participant's employment, (8) the
            Participant's engagement in a dishonest or wrongful act involving
            fraud, misrepresentation or moral turpitude causing damage or
            potential damage to the Company or any subsidiaries or affiliates,
            (9) the Participant's willful failure to perform a substantial part
            of his or her duties, (10) the Participant's breach of any fiduciary
            duty or duty of loyalty, (11) any conduct by Participant which
            violates any federal or state securities law or other applicable
            regulation governing the conduct of the Participant and of the
            business of the Company or any subsidiary or affiliate in which the
            Participant is employed, (12) the issuance of any consent decree,
            cease and desist or similar order against the Participant by a
            governmental or regulatory agency or entity relating to violations
            or alleged violations of any federal or state securities law or
            other applicable regulation governing the conduct of the business of
            the Company or any subsidiary or affiliate, or (13) the
            Participant's unauthorized disclosure of any confidential or
            proprietary information of the Company or any subsidiary or
            affiliate or the unauthorized disclosure of any confidential
            information of a client of the Company or any subsidiary or
            affiliate.

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<PAGE>

                        (ii) "Disability" means the complete and permanent
            inability of the Participant to perform his or her duties due to
            physical or mental incapacity, all as determined by the Committee
            upon the basis of such evidence, including independent medical
            reports and data, as the Committee deems necessary or appropriate.

                        (iii) "Good Reason" shall mean:

                              (A) any material diminution in Employee's
                  authority, duties or responsibilities from that which existed
                  immediately prior to the Change in Control;

                              (B) a reduction of more than ten percent (10%) in
                  the Employee's base compensation from that which existed
                  immediately prior to the Change in Control; or

                              (C) the relocation of the Employee's principal
                  place of employment to a location more than fifty (50) miles
                  from the Employee's principal place of employment immediately
                  prior to the Change in Control.

                        (iv) "Retirement" means Termination of Employment by the
            Participant, upon a delivery of the Notice of Termination, if, as of
            the date of such Termination of Employment, the Participant had
            attained the age of forty-five (45) and had completed a minimum of
            ten (10) continuous years of service with the Company and its
            subsidiaries. For purposes of this definition, "Retirement" will
            generally mean that the Participant is not working at all, except
            for certain charitable or not-for-profit endeavors. For purposes of
            this definition, "Notice of Termination" means a written Notice of
            Termination delivered to the Company at least thirty (30) days prior
            to the Participant's Retirement (unless a lesser period is permitted
            by Appropriate Committee) advising the Company of the Participant's
            intention to terminate employment and specifying the date of
            termination, certifying that the Participant will not be employed by
            or provide services to any entity other than a charitable or
            non-profit organization (and, if accepting employment or providing
            services to any such organization, identifying the organization by
            name and describing the position, duties and/or relationships with
            such entity), and agreeing to provide other information regarding
            the Participant's reasons for termination and subsequent business
            activity upon request of the Company.

                        (v) "Termination of Employment" means the event by which
            the Participant ceases to be employed by the Company or any
            subsidiary of the Company and, immediately thereafter, is not
            employed by or providing substantial services to any of the Company
            or a subsidiary of the Company. Neither (x) a transfer of the
            Participant from the Company to a subsidiary or other

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            affiliate of the Company, or vice versa, or from one subsidiary or
            affiliate of the Company to another, nor (y) a duly authorized leave
            of absence, agreed to in writing by the Participant, shall be deemed
            a Termination of Employment.

            6. Additional Conditions.

                  (a) Requirements Relating to Non-Competition, Confidentiality,
      Non-Disparagement, Cooperation and Non-Solicitation. For purposes of
      applying the provisions of Section 5:

                        (i) The Participant, acting alone or with others,
            directly or indirectly, shall not engage, either as employee,
            employer, consultant, advisor, or director, or as an owner,
            investor, partner, or stockholder unless the Participant's interest
            is insubstantial, in any business in an area or region in which the
            Company or any subsidiary or affiliate conducts business at the date
            the event occurs, which is directly in competition with a business
            then conducted by the Company or a subsidiary or affiliate and which
            is similar or substantially related to part of the Company's
            business in which the Participant was engaged, in whole or in a
            material part, while employed by the Company or a subsidiary or
            affiliate in the 12 months prior to the Participant's Termination of
            Employment. For this purpose, an entity shall be deemed to be in
            competition with the Company or a subsidiary or affiliate if such
            entity's business involves (A) the sale or trading of securities,
            futures, commodities, off-exchange products or other similar
            products on behalf of others (whether customers are individuals or
            institutions), (B) proprietary trading, including risk arbitrage,
            (C) asset management, (D) investment banking and other financial
            advisory services, (E) banking and insurance products offered by the
            Company and its affiliates or under development to be offered by the
            Company or its affiliates, including but not limited to, bankruptcy,
            debt and credit products, or (F) proprietary analysis and research
            relating to any of the foregoing. The Committee shall, in its
            discretion, determine which lines of business the Company or any
            subsidiary or affiliate conducts on any particular date and which
            third parties may reasonably be deemed to be in competition with the
            Company or any subsidiary or affiliate. For purposes of this Section
            6(i), the Participant's interest as a stockholder is insubstantial
            if it represents beneficial ownership of less than one percent of
            the outstanding class of stock, and the Participant's interest as an
            owner, investor, or partner is insubstantial if it represents
            ownership, as determined by the Committee in its discretion, of less
            than one percent of the outstanding equity of the entity;

                        (ii) Confidentiality Requirement: The Participant shall
            not take, disclose, use, sell, or otherwise transfer, except in the
            course of employment with the Company or any subsidiary or
            affiliate, any confidential or proprietary information of the
            Company or any subsidiary or affiliate, including but not limited to
            information regarding current and potential customers, clients,
            counterparts, organization, employees, finances and financial
            results, methods of

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            operation, transactions and investments, financial analysis and
            structuring, price, rates and other similar data, so long as such
            information has not otherwise been disclosed to the public or is not
            otherwise in the public domain, except as required by law or
            pursuant to legal process; and the Participant shall return to the
            Company, promptly following his or her termination of employment or,
            if a demand for such return has been made, at any other time, any
            information, documents, materials, data, inventions, manuals,
            contracts, computer programs or device containing information
            relating to the Company or any subsidiary or affiliate, and each of
            their customers, clients and counterparts, which came into the
            Participant's possession or control in connection with his or her
            employment;

                        (iii) Non-Disparagement Requirement: The Participant
            shall not make statements or representations, otherwise communicate,
            directly or indirectly, in writing, orally, or otherwise, or take
            any action which may, directly, or indirectly, disparage or be
            damaging to the Company or any if its subsidiaries or affiliates or
            their respective former or current officers, directors, employees,
            advisors, businesses or reputations, except as required by law or
            pursuant to the legal process;

                        (iv) Cooperation Requirement: The Participant shall
            cooperate with the Company and any subsidiary or affiliate by making
            himself or herself available to testify on behalf of the Company or
            such subsidiary or affiliate in any action, suit or proceeding,
            whether civil, criminal, administrative, regulatory or
            investigative, and otherwise shall assist the Company and any
            subsidiary or affiliate in any action, suit, or proceeding and in
            preparation of any action, suit, or proceeding by providing
            information and meeting and consulting with members of management
            of, other representatives of, or counsel to, the Company or such
            subsidiary or affiliate, as reasonably requested, provided that the
            reasonable expenses are met by the Company; and

                        (v) Non-Solicitation Requirement: The Participant,
            acting alone or with others, directly or indirectly, whether as
            employee, employer, consultant, advisor, or director, or as an
            owner, investor, partner, stockholder or otherwise (A) shall not
            solicit or induce any client or customer of the Company for whom the
            Participant has rendered services while employed by the Company to
            curtail, cancel, not renew, or not continue his or her or its
            business with the Company or any subsidiary or affiliate, and (B)
            shall not solicit or hire any employee or person who, within 90 days
            prior to the Participant's Termination of Employment, was an
            employee, or a consultant or independent contractor to, the Company
            or a subsidiary or affiliate.

                  (b) Committee Discretion. The Committee may, in its
      discretion, waive in whole or in part the provisions of this Section 6,
      but no such waiver shall be effective unless evidenced by a writing signed
      by a duly authorized officer of the Company.

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            7. Participant Representations and Warranties Upon Exercise. As a
condition to the exercise of the Option, the Company may require Participant to
make any representation or warranty to the Company as may be required under any
applicable law or regulation, and to make a representation and warranty that
Participant has not engaged in conduct which, under Section 5, has resulted in
the immediate expiration of the Option.

            8. Nontransferability. Participant may not transfer the Option or
any rights thereunder to any third party other than by will or the laws of
descent and distribution, and, during Participant's lifetime, only Participant
or his or her duly appointed guardian or legal representative may exercise the
Option; provided, however, that the Committee may approve transfers of the
Option, upon written application of Participant, for estate planning purposes
and; provided, further, that Participant may designate one or more beneficiaries
to exercise rights under the Option upon Participant's death, in the manner and
to the extent permitted by the Committee under rules and regulations adopted by
the Committee under the Plan.

            9. Miscellaneous.

                  (a) Right of Setoff. The Company or any subsidiary or
      affiliate may, to the extent permitted by applicable law, deduct from and
      set off against any amounts the Company or a subsidiary or affiliate may
      owe to Participant from time to time pursuant to any award under the Plan,
      any amounts owed by Participant to the Company or any subsidiary or
      affiliate, although Participant shall remain liable for any part of
      Participant's payment obligation not satisfied through such deduction and
      setoff. By accepting the Option granted hereunder, Participant agrees to
      any deduction or setoff under this Section 9(a), and agrees that this
      provision will survive the exercise, cancellation, expiration or other
      termination of the Option.

                  (b) Binding Agreement. These Terms and Conditions, including,
      without limitation, Section 6, shall be binding upon the heirs, executors,
      administrators and successors of the parties. These Terms and Conditions,
      including the provisions of the Plan, constitutes the entire agreement
      between the parties with respect to the Option, and supersedes any prior
      representation, statement, agreements or documents with respect to the
      Option, whether written or oral.

                  (c) No Promise of Employment. The Option and the granting
      thereof shall not constitute or be evidence of any agreement or
      understanding, express or implied, that Participant has a right to
      continue as an officer or employee of the Company or any subsidiary or
      affiliate for any period of time, or at any particular rate of
      compensation. These Terms and Conditions, including the provisions of the
      Plan, shall not in any way alter Participant's employment at will status
      with the Company or any subsidiary or affiliate.

                  (d) Governing Law. THESE TERMS AND CONDITIONS SHALL BE
      GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO THE
      PRINCIPLES OF CONFLICTS OF LAWS.

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                  (e) Interpretation and Reformation of the Terms and
      Conditions. In the event that any provision or portion of these Terms and
      Conditions shall be determined to be invalid or unenforceable for any
      reason, in whole or in part, the remaining provisions of these Terms and
      Conditions shall be unaffected thereby, and any affected provision shall
      be construed and interpreted to apply to the fullest extent that it could
      apply without being invalid or unenforceable. These Terms and Conditions,
      as so construed and interpreted, shall remain in full force and effect to
      the fullest extent permitted by law.

                  (f) Except with respect to the Company's right to seek
      injunctive relief as set forth in Section 5, any dispute arising out of or
      relating to the Plan or these Terms and Conditions shall be resolved by
      final and binding arbitration before the National Association of
      Securities Dealers or the New York Stock Exchange, in accordance with
      applicable arbitration rules then in effect. Any such arbitration shall
      occur in the City of New York. The parties hereto consent to the
      jurisdiction of the state and federal courts of New York, located in the
      City of New York, for any action arising out of or relating to the
      enforcement of this arbitration provision and for any other relief
      permitted under these Terms and Conditions.

                  (g) Participant hereby confirms and agrees that he or she has
      or will establish promptly after the date hereof a securities account at
      Bear, Stearns Securities Corp. with a signed customer agreement.

            THE OPTION BEING GRANTED TO YOU HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OR THE DISTRICT OF
COLUMBIA OR ANY OTHER FOREIGN OR DOMESTIC JURISDICTION. NO RESALE OR TRANSFER OF
THIS OPTION IS PERMITTED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF THE STOCK
AWARD PLAN AND THESE TERMS AND CONDITIONS AND ANY APPLICABLE FEDERAL OR STATE
SECURITIES LAWS OR AN APPLICABLE EXEMPTION THEREFROM.

                                       11[The attached exhibit is an English translation]

                                  Exhibit 10.1

                                                                [logo] Rietschle
                                                                          Thomas

                                                     A Thomas Industries Company

Amendment of Service Agreement
- reduction of notice period

Dear Mr. Bissinger,

We refer to our discussion with you and amicably amend herewith paragraph 2.2 of
your Service Agreement with TIWR Holding GmbH & Co. KG dated January 28, 2003
insofar that the notice period is reduced to 6 months to the end of a calendar
year.

We kindly ask you to confirm your agreement to this amendment by returning the
enclosed copy to us with your signature.

Yours sincerely

Munich,  24.12.2004
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Place, Date

/s/ Tim Brown              12-31-04
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Tim Brown

/s/ Thomas Kurth
-------------------------------------
Thomas Kurth

(TIWR Holding & Co. KG represented by its General Partner TIWR Verwaltungs GmbH,
which has the right to individually represent TIWR Holding GmbH & Co. KG, the
TIWR Verwaltungs GmbH is in turn represented by its managing directors Tim Brown
and Thomas Kurth)

/s/ Peter Bissinger
-------------------------------------
Peter Bissinger

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