Document:

Exhibit
                10.1

            

    

    March
      28,
      2007

    Mr.
      David
      A. Buckel

    1065
      Admiral Crossing

    Alpharetta,
      GA 30005

    

    Dear
      Dave:

    

    On
      behalf
      of the Board of Directors and executive team of GigaBeam Corporation (“GigaBeam”
or the “Company”) this letter is written to express our appreciation and
      gratitude to you for nearly two and one-half years of service as a member of
      the
      GigaBeam Board of Directors and its three committees, including service as
      Chairman of the GigaBeam audit committee. In that regard, we wish to confirm
      the
      following:

     

    
      	 	
              1.

            	
              GigaBeam
                agrees to pay you the deferred and unpaid director and committee
                fees as
                set forth in the attached schedule.

            

    

    

    
      	 	
              2.

            	
              You
                hereby confirm your resignation as a member of the Company’s Board of
                Directors and each of its committees, effective close of business
                on March
                29, 2007.

            

    

    

    
      	 	
              3.

            	
              From
                March 27, 2007 until January7, 2009, you agree from time to time
                to
                provide to the Company’s Board of Directors consulting services with
                respect to strategic development activities and such other projects
                as
                mutually agreed upon by you and the Company.

            

    

    

    
      	 	
              4.

            	
              As
                compensation for your consulting services hereunder, your options
                to
                purchase (i) 45,000 shares of common stock of the Company granted
                October
                14, 2004 and (ii) 25,000 shares of common stock of the Company granted
                January 5, 2006, respectively, will continue to vest and remain
                exercisable in accordance with the Company’s 2004 Stock Option Plan and
                the applicable option grant
                notices.

            

    

    

    
      	 	
              5.

            	
              GigaBeam
                agrees not to make any public or private statements about you which
                are
                either negative or disparaging and you agree not make any public
                or
                private statements about the Company or its management which are
                negative
                or disparaging. You agree to direct any inquiries from third parties
                regarding your resignation, the Company or its management to the
                Company’s
                counsel without comment. F

            

    

    

    
      	 	
              6.

            	
              You
                agree to hold in confidence and not disclose (except as required
                by law)
                to any person or entity any non-public, confidential information
                about the
                Company and its business. 

            

    

    

    
      	 	
              7.

            	
              The
                indemnification provisions for officers and directors under the Company’s
                Amended and Restated Certificate of Incorporation, Bylaws and insurance
                policies are (to the maximum extent permitted by law) extended you
                with
                respect to any and all matters, events or transactions occurring
                or
                effected during your tenure as a member of the Company’s Board of
                Directors and in connection with your resignation hereunder all as
                provided therein. In addition, the Company will (to the maximum extent
                permitted by law) indemnify and hold you harmless from any loss,
                expense
                or damage you may suffer in connection with your service on and your
                resignation from the Company’s Board of Directors unless such loss,
                expense or damage is based upon any violation by you of the state
                or
                federal securities laws or any conduct by you which constitutes fraud,
                gross negligence, willful misconduct or
                malfeasance.

            

    

     

    
      
        GigaBeam
          Corporation, 470 Springpark Place, Suite 900, Herndon, VA 20170 Tel:
          571-283-6200 Fax: 571-283-6203

         

      

      
         

        
          

        

      

      
         

      

    

    

      
        	
                Mr.
                  David A. Buckel

              	
                March
                  28, 2007

              
	 	
                Page
                  2 of 3

              

      

    

     

    
      	 	
              8.

            	
              The
                Company and Messrs. Slaughter and Lockie, in their respective individual
                capacities, hereby release and acquit you for any and all actions,
                claims,
                demands, or other obligations arising out of or related to your service
                and resignation as a member of the Company’s Board of Directors; provided
                however, that this release shall not extend to any actions, claims
                or
                demands arising out of any alleged violation by you of the state
                or
                federal securities laws or any conduct which constitutes fraud, gross
                negligence, willful misconduct or malfeasance. You hereby release
                and
                acquit the Company and Messrs. Slaughter and Lockie, in their respective
                individual capacities, for any and all actions, claims, demands,
                or other
                obligations arising out of or related to your service and resignation
                as a
                member of the Company’s Board of Directors; provided however, that this
                release shall not extend to any actions, claims or demands arising
                out of
                any alleged violation by the Company or its officers and directors
                of the
                state or federal securities laws or any conduct which constitutes
                fraud,
                gross negligence, willful misconduct or malfeasance. Nothing in this
                letter shall prohibit any party from providing truthful testimony
                compelled by a valid subpoena issued by a court of competent jurisdiction;
                provided, however, that the party receiving the subpoena shall provide
                notice, including a copy of the subpoena, to the other parties promptly
                upon the service of the subpoena. You, on the one hand, and the Company,
                Mr. Slaughter and Mr. Lockie, on the other hand, represent and warrant
                to
                each of the others that there has been no assignment of any actions
                or
                claims nor institution of any action or claims by you, on the one
                hand,
                and the Company, Mr. Slaughter or Mr. Lockie, on the other hand,
                prior to
                the date of this letter and that neither you, on the one hand, nor
                the
                Company or Messrs. Slaughter and Lockie, on the other hand, are aware
                of
                any claims or demands assertable against the other.
                

            

    

    

    If
      you
      agree to the foregoing, kindly sign, date and return this letter to our Herndon
      office at (571) 283-6203. Dave, it has been a pleasure to have you service
      on
      the Board of Directors of GigaBeam and we look forward to working with you
      as a
      consultant.

    

    
      	 	
              Sincerely,

            
	 	
              GigaBeam
                Corporation

            
	 	 
	 	
              By:
                /s/Louis S.
                Slaughter                                        
                

            
	 	
                   Louis
                S. Slaughter

            
	 	
                    
                Chairman and CEO

            

    

     

    
      	Accepted
              and agreed:

    

    

    Signature:
      /s/David A.
      Buckel                        

                      
      David A. Buckel

    

    Date:
      _____________________________

    

    

    Accepted
      and agreed with respect to paragraph 8:

    

    
      	
              /s/Louis
                S.
                Slaughter                                         
                

            	
              /s/
                Douglas G.
                Lockie                                            
                

            
	
              Louis
                S. Slaughter, an individual

            	
              Douglas
                G. Lockie, an individual

            
	
              Date:
                3-28-07                                                       
                

            	
              Date:
                3/28/07                                                            
                

            

    

    

    
      
         

         

      

      
         

        
          

        

      

      
         

      

    

    

      
        	
                Mr.
                  David A. Buckel

              	
                March
                  28, 2007

              
	 	
                Page 3 of 3

              

      

    

    

    GIGABEAM
      CORPORATION

    Schedule
      of Accrued Director's Fees - D. Buckel

    3/27/2007

    

    
      	
              Date

            	 	
              Description

            	 	
              Amount

            
	 	 	 	 	 
	
              9/1/2006

            	 	
              Q4
                2006 Board Fee

            	 	
              $3,750

            
	
              10/27/2006

            	 	
              Board
                Meeting Fee

            	 	
              1,000

            
	
              11/2/2006

            	 	
              Board
                Compensation Committee Telephonic Meeting

            	 	
              500

            
	
              11/13/2006

            	 	
              Board
                Audit committee Telephonic Meeting

            	 	
              500

            
	
              12/15/2006

            	 	
              Board
                Meeting Fee

            	 	
              1,000

            
	
              12/15/2006

            	 	
              Nominating
                Committee Meeting*

            	 	
              -

            
	
              12/31/2006

            	 	
              Audit
                Committee Chair - 2006

            	 	
              5,000

            
	
              1/1/2007

            	 	
              Q1
                2007 Board Fee

            	 	
              3,750

            
	
              1/1/2007

            	 	
              Q1
                2007 Audit Committee Chair

            	 	
              1,250

            
	
              1/13/2007

            	 	
              Teleconf
                Board Meeting Fee

            	 	
              500

            
	
              1/25/2007

            	 	
              Teleconf
                Board Meeting Fee

            	 	
              500

            
	
              2/2/2007

            	 	
              Teleconf
                Board Meeting Fee

            	 	
              500

            
	 	 	 	 	 
	 	 	
              Total

            	 	
              $18,250

            
	 	 	 	 	 
	 	 	
              *
                Held in conjunction with Board MeetingExhibit 4.1

                               CARROLLTON BANCORP

                                2007 Equity Plan

                                   ARTICLE I
                           PURPOSE AND EFFECTIVE DATE

           1.1   Purpose. The  purpose  of  the  Plan  is to  provide  financial
incentives for selected Employees and Non-Employee Directors,  thereby promoting
the long-term growth and financial  success of the Company by (a) attracting and
retaining  Employees and  Non-Employee  Directors of  outstanding  ability,  (b)
strengthening  the  Company's  capability  to  develop,  maintain,  and direct a
competent  management  team,  (c)  providing  an  effective  means for  selected
Employees  and  Non-Employee  Directors  to acquire and  maintain  ownership  of
Company Stock, (d) motivating Employees to achieve long-range  Performance Goals
and  objectives,   and  (e)  providing  incentive   compensation   opportunities
competitive with peer financial institution holding companies.

           1.2   Effective Date  and  Expiration  of  Plan.  The  Plan  will  be
effective upon its adoption by the Board and approval by affirmative vote of the
Shareholders  required under  applicable  rules and procedures,  including those
prescribed  under  Sections  162(m)  and 422 of the Code and  applicable  NASDAQ
rules. Unless earlier terminated by the Board pursuant to Section 12.2, the Plan
shall  terminate on the tenth  anniversary of its Effective Date. No Award shall
be made pursuant to the Plan after its  termination  date, but Awards made prior
to the  termination  date may  extend  beyond  that  date.  Notwithstanding  the
foregoing,  no Incentive  Stock Options may be granted more than ten years after
the earlier of (a) the  adoption of this Plan by the Board or (b) the  Effective
Date.

                                   ARTICLE II
                                   DEFINITIONS

           The following words and phrases,  as used in the Plan, shall have the
meanings set forth in this section.  When  applying  these  definitions  and any
other  word,  term or phrase  used in this Plan,  the form of any word,  term or
phrase will include any and all of its other forms.

           2.1   Award means,  individually  or  collectively,  any Option, SAR,
Restricted Stock,  Restricted  Performance Stock,  unrestricted Company Stock or
Performance Unit Award.

           2.2   Award Agreement means the written agreement between the Company
and each  Participant  that describes the terms and conditions of each Award. If
there is a conflict between the terms of the Plan and the Award  Agreement,  the
terms of the Plan will govern.

           2.3   Board means the Board of Directors of the Company.

           2.4   Cause with  respect  to  any  Participant,   means:  (a)  Gross
negligence  or gross  neglect of duties;  or (b)  Commission of a felony or of a
gross misdemeanor involving moral turpitude in connection with the Participant's
employment  or  service,  as the case may be,  with  the  Company  or any of its
Subsidiaries;  or (c) Fraud, disloyalty,  dishonesty or willful violation of any
law or significant Company policy committed in connection with the Participant's
employment  or provision of services,  as the case may be; or (d) Issuance of an
order  for  removal  of  the  Participant  by any  agency  which  regulates  the
activities  of the  Company or any of its  Subsidiaries.  Any  determination  of
"Cause" under this Plan shall be made by the Committee in its sole discretion.

<PAGE>

           2.5   Company means Carrollton Bancorp, a Maryland corporation.

           2.6   Company Director means a non-employee member of the Board.

           2.7   Company Stock means the  Company's  common  shares,  par  value
$1.00 per share.

           2.8   Code means the Internal  Revenue  Code of 1986,  as  amended or
superseded  after the Effective Date, and any applicable  rulings or regulations
issued thereunder.

           2.9   Committee means the  Compensation  Committee  of the Board or a
subcommittee thereof.

           2.10  Disability means:  (a)  with  respect  to  an  Incentive  Stock
Option,  "disabled" within the meaning of Section 22(e)(3) of the Code; (b) with
respect to any Award subject to Section 409A of the Code,  "disabled" as defined
under Section 409A of the Code;  and (c) with respect to any Award not described
in  subsections  (a) and (b) of this  Section  2.10, a long-term  disability  as
defined by the Company's or Subsidiary's group disability insurance plan, or any
successor plan that is applicable to such  Participant at the time of his or her
Termination.

           2.11  Effective  Date means the date on which the Plan is approved by
the Shareholders of the Company, as provided in Section 1.2.

           2.12  Employee  means any person who, on any  applicable  date,  is a
common law employee of the Company or any Subsidiary. A worker who is classified
as other than a common law employee but who is  subsequently  reclassified  as a
common law employee of the Company or any  Subsidiary  for any reason and on any
basis  will be  treated  as a common  law  employee  only  from  the  date  that
reclassification  occurs  and  will  not  retroactively  be  reclassified  as an
Employee for any purpose of this Plan.

           2.13  Exchange  Act means the  Securities  Exchange  Act of 1934,  as
amended.

           2.14  Exercise Price means the amount,  if any,  that  a  Participant
must pay to exercise an Award (other than an Option).

           2.15  Fair Market Value means,  as of any specified  date,  an amount
equal to the reported  closing price on the specified date of a share of Company
Stock on NASDAQ or any other  established  stock exchange or quotation system on
which the  Company  Stock is then  listed or traded  or, if no shares of Company
Stock have been  traded on such date,  the  closing  price of a share of Company
Stock on NASDAQ or such other  established stock exchange or quotation system as
reported on the first day prior thereto on which shares of Company Stock were so
traded.  If the preceding  sentence  does not apply,  Fair Market Value shall be
determined in good faith by the Committee using other reasonable means.

                                       2
<PAGE>

           2.16  Fiscal Year means the fiscal year of the Company,  which is the
52- or 53-week period ending on December 31.

           2.17  Incentive  Stock Option  means an option  within the meaning of
Section 422 of the Code.

           2.18  Non-Employee  Director  means  either a Company  Director  or a
Subsidiary Director.

           2.19  Nonqualified Stock Option means an  option  granted  under  the
Plan other than an Incentive Stock Option.

           2.20  Option  means  either  a   Nonqualified   Stock  Option  or  an
Incentive Stock Option to purchase Company Stock.

           2.21  Option  Price  means  the price at which  Company  Stock may be
purchased under an Option.

           2.22  Participant means an Employee or  a  Non-Employee  Director  to
whom an Award has been made under the Plan.

           2.23  Performance  Goals means  goals  established  by the  Committee
pursuant to Section 4.5.

           2.24  Performance  Period   means  a  period  of  time   over   which
performance is measured.

           2.25  Performance  Unit  means the unit of measure  determined  under
Article IX by which is expressed the value of a Performance Unit Award.

           2.26  Performance Unit Award means an Award granted under Article IX.

           2.27  Personal  Representative  means the person or persons who, upon
the death, Disability, or incompetency of a Participant, shall have acquired, by
will or by the laws of descent and  distribution or by other legal  proceedings,
the right to  exercise  an Option  or SAR or the right to any  Restricted  Stock
Award or Performance Unit Award theretofore granted or made to such Participant.

           2.28  Plan means the Carrollton Bancorp  2007  Equity  Plan,  as  set
forth herein and as amended from time to time.

           2.29  Predecessor  Plans means the Carrollton  Bancorp 1998 Long-Term
Incentive Plan, as amended.

                                       3
<PAGE>

           2.30  Restricted  Performance  Stock means  Company  Stock subject to
Performance Goals.

           2.31  Restricted  Stock means  Company Stock subject to the terms and
conditions provided in Article VI and including Restricted Performance Stock.

           2.32  Restricted Stock Award or a Restricted Stock Performance  Award
means an Award granted under Article VI.

           2.33  Restriction  Period  means a period  of time  determined  under
Section 6.2 during which Restricted Stock is subject to the terms and conditions
provided in Section 6.3.

           2.34  Retirement  means   any  normal  or  early   retirement   by  a
Participant  pursuant to the terms of any pension  plan or policy of the Company
or any  Subsidiary  that is  applicable to such  Participant  at the time of the
Participant's Termination.

           2.35  SAR means a stock appreciation right granted under Section 5.7.

           2.36  Shareholders mean the shareholders of the Company.

           2.37  Subsidiary  means a corporation or other entity the majority of
the voting stock of which is owned directly or indirectly by the Company.

           2.38  Subsidiary Director means a non-employee member of the board of
directors of a Subsidiary who is not also a Company Director.

           2.39  Termination  means a "separation from service" as defined under
Section 409A of the Code.

                                  ARTICLE III
                                 ADMINISTRATION

           3.1   Committee to Administer. The Plan shall be administered  by the
Committee,  in accordance with its Charter,  as adopted from time to time by the
Board;  provided,  however,  that the Board has the authority to grant Awards to
Company Directors.

           3.2   Powers of Committee.

          (a) The Committee and the Board shall have full power and authority to
     interpret  and  administer  the Plan and to  establish  and amend rules and
     regulations for its administration.  Any action or decision by the Board or
     the Committee  shall be final,  binding and conclusive  with respect to the
     interpretation of the Plan and any Award made under it.

          (b) Subject to the provisions of the Plan, the Committee or the Board,
     as the case may be, shall have authority,  in its discretion,  to determine
     those Employees and Non-Employee  Directors who shall receive an Award; the
     time or times when such Award shall be made; the vesting schedule,  if any,
     for the Award; and the type of Award to be granted, the number of shares of
     Company Stock to be subject to each Option and Restricted  Stock Award, the
     value of each  Performance  Unit and all other terms and  conditions of any
     Award.

                                       4
<PAGE>

          (c) The  Committee or the Board,  as the case may be, shall  determine
     and set forth in an Award Agreement the terms of each Award, including such
     terms, restrictions,  and provisions as shall be necessary to cause certain
     Options to qualify as Incentive Stock Options.  The Committee or the Board,
     as the case may be,  may  correct  any  defect or supply  any  omission  or
     reconcile any inconsistency in the Plan or in any Award Agreement,  in such
     manner and to the extent the Committee or the Board, as appropriate,  shall
     determine in order to carry out the purposes of the Plan.  The Committee or
     the Board, as the case may be, may, in its  discretion,  accelerate (i) the
     date  on  which  any  Option  or SAR may be  exercised,  (ii)  the  date of
     termination of the restrictions  applicable to a Restricted Stock Award, or
     (iii) the end of a Performance  Period under a Performance  Unit Award,  if
     the Committee or the Board, as  appropriate,  determines that to do so will
     be in the best interests of the Company and the Participants in the Plan.

                                   ARTICLE IV
                                     AWARDS

           4.1   Awards. Awards under the Plan shall consist of Incentive  Stock
Options,   Nonqualified  Stock  Options,  SARs,  Restricted  Stock,   Restricted
Performance Stock,  unrestricted Company Stock and Performance Units. All Awards
shall be subject to the terms and conditions of the Plan and to such other terms
and conditions  consistent  with the Plan as the Committee or the Board,  as the
case may be, deems  appropriate.  Awards under a particular  section of the Plan
need not be uniform and Awards under two or more sections may be combined in one
Award  Agreement.  Any  combination  of Awards may be granted at one time and on
more than one occasion to the same Employee or Non-Employee Director.  Awards of
Performance  Units and Restricted  Performance Stock shall be earned solely upon
attainment of  Performance  Goals and the Committee  shall have no discretion to
increase such Awards.

           4.2   Eligibility  for  Awards. An Award may be made to any  Employee
selected by the Committee.  In making this selection and in determining the form
and amount of the Award,  the Committee may give  consideration to the functions
and  responsibilities  of  the  respective  Employee,  his or  her  present  and
potential   contributions   to  the  success  of  the  Company  or  any  of  its
Subsidiaries,  the value of his or her  services  to the  Company  or any of its
Subsidiaries,   and  such  other  factors  deemed  relevant  by  the  Committee.
Non-Employee Directors are eligible to receive Awards pursuant to Article VII.

           4.3   Shares Available Under the Plan.

          (a) The  Company  Stock  to be  offered  under  the Plan  pursuant  to
     Options,  SARs,  Performance Unit Awards,  Restricted Performance Stock and
     Restricted Stock and unrestricted  Company Stock Awards must be (i) Company
     Stock  previously  issued and  outstanding and reacquired by the Company or
     (ii)  authorized  but  unissued  Company  Stock not  reserved for any other
     purpose.  Subject to adjustment under Section 12.2, the number of shares of
     Company  Stock that may be issued  pursuant  to Awards  (the  "Section  4.3
     Limit") shall not exceed, in the aggregate, 500,000 shares.

                                       5
<PAGE>

          (b) Any  shares  of  Company  Stock  subject  to  Restricted  Stock or
     unrestricted  Company Stock Awards shall not exceed 50% of the total shares
     available  under the Plan and the maximum number of shares of Company Stock
     that may be issued subject to Incentive Stock Options is 500,000 subject to
     adjustment under Section 12.1. The Section 4.3 Limit shall not have counted
     against it shares of Company Stock subject to an Award which for any reason
     terminates by expiration,  forfeiture,  cancellation  or otherwise  without
     having been exercised or paid,

          (c) No awards shall be granted under any Predecessor Plan on and after
     the date on which the Plan is approved by the Shareholders.

           4.4   Limitation on Awards. The maximum aggregate  dollar  value  of,
and the maximum number of shares of Company Stock subject to,  Restricted  Stock
and  Performance  Units  awarded to any Employee  with respect to a  Performance
Period or  Restriction  Period may not exceed  $500,000  and  500,000  shares of
Company Stock,  respectively,  for each Fiscal Year included in such Performance
Period or Restriction  Period.  The maximum number of shares of Common Stock for
which Options or SARs may be granted to any  Participant  in any one Fiscal Year
shall not exceed 500,000 subject to adjustment under Section 12.1.

           4.5   General Performance Goals.

          (a)  Performance  Goals relating to the payment or vesting of an Award
     that is  intended  to qualify  as  "performance-based  compensation"  under
     Section  162(m)  of the  Code  will  be  comprised  of one or  more  of the
     following performance criteria as the Committee may deem appropriate:

               (i)     Earnings per share (actual or targeted growth);

               (ii)    Net income after capital costs;

               (iii)   Net income (before or after taxes);

               (iv)    Return  measures  (including,  but not limited to, return
                       on average assets,  risk-adjusted  return on capital,  or
                       return on average equity);

               (v)     Efficiency ratio;

               (vi)    Full-time equivalency control;

               (vii)   Stock  price  (including,  but  not  limited  to,  growth
                       measures and total shareholder return);

               (viii)  Noninterest income compared to net interest income ratio;

               (ix)    Expense targets;

                                       6
<PAGE>

               (x)     Operating efficiency;

               (xi)    EVA(R);

               (xii)   Credit quality measures;

               (xiii)  Customer satisfaction measures;

               (xiv)   Loan growth;

               (xv)    Deposit growth;

               (xvi)   Net interest margin;

               (xvii)  Fee income; and

               (xviii) Operating expense.

          (b) For any Awards  not  intended  to  qualify  as  "performance-based
     compensation" under Section 162(m) of the Code, the Committee may establish
     Performance  Goals  based on the  performance  criteria  listed in  Section
     4.5(a) or other performance criteria as it deems appropriate.

          (c) Any of the  performance  criteria  listed in Section 4.5(a) may be
     applied  solely with  reference  to the Company  and/or any  Subsidiary  or
     relatively  between  the  Company  and/or  any  Subsidiary  and one or more
     unrelated  entities.  In addition,  different  performance  criteria may be
     applied to individual  Participants  or to groups of  Participants  and, as
     specified by the Committee, may be based on results achieved (i) separately
     by the Company or any  Subsidiary,  (ii) any combination of the Company and
     the Subsidiaries or (iii) any combination of business units or divisions of
     the Company and the Subsidiaries.

          (d) With  respect  to each  Performance  Period,  the  Committee  will
     establish the Performance Goals in writing no later than the earlier of (i)
     90 days after the beginning of the Performance Period or (ii) expiration of
     25 percent of the Performance Period.

          (e) Except as otherwise  provided in the Plan or the Award  Agreement,
     as of the end of each  Performance  Period,  the Committee  will certify in
     writing  the  extent  to  which  a  Participant  has or  has  not  met  the
     Participant's  Performance  Goal.  To the extent  permitted  under  Section
     162(m) of the Code,  if  applicable,  the Committee may disregard or offset
     the effect of any special charges or gains or cumulative effect of a change
     in accounting in determining the attainment of Performance Goals.

          (f) To the  extent  permitted  under  Section  162(m) of the Code,  if
     applicable,  the  Committee  shall  make  (i)  appropriate  adjustments  to
     performance  criteria to reflect the effect on any performance  criteria of
     any   stock   dividend   or   stock   split   affecting    Company   Stock,
     recapitalization,    merger,    consolidation,    combination,    spin-off,
     distribution  of  assets to  Shareholders,  exchange  of shares or  similar
     corporate change and (ii) similar adjustments to any portion of performance
     criteria  that is not based on Company  Stock but which is  affected  by an
     event having an effect similar to those just described.

                                       7
<PAGE>

                                   ARTICLE V
                      OPTIONS AND STOCK APPRECIATION RIGHTS

           5.1   Award of Options. The Committee may, from time to time, and  on
such terms and  conditions as the Committee may  prescribe,  award (a) Incentive
Stock Options,  subject to Section 5.5, to any eligible  Employee of the Company
or any parent or subsidiary corporation (as permitted under Sections 422 and 424
of the Code) and (b) Nonqualified Stock Options to any Employee.

           5.2   Period of Option.

          (a) An Option  granted  under the Plan  shall be  exercisable  only in
     accordance  with  the  vesting  schedule  approved  by the  Committee.  The
     Committee  may  in  its   discretion   prescribe   additional   conditions,
     restrictions  or terms on the vesting of an Option,  including  the full or
     partial  attainment of Performance Goals pursuant to Section 4.5. After the
     Option  vests,  the Option may be  exercised at any time during the term of
     the Option, in whole or in installments,  as specified in the related Award
     Agreement.  Subject to Article X and except as provided in Section 5.5, the
     duration of each  Option  shall not be more than ten years from the date of
     grant.

          (b) Except as provided in Article X, a Participant may not exercise an
     Option unless such  Participant is then, and  continually  (except for sick
     leave,  military  service,  or other  approved  leave of absence) after the
     grant of the Option has been, an Employee or Non-Employee Director.

           5.3   Award Agreement.  Each Option  shall be  evidenced  by an Award
Agreement.  The Award  Agreement shall specify whether the Option is intended to
be an Incentive Stock Option or a Nonqualified Stock Option.

           5.4   Option Price, Exercise and Payment.

          (a) Except as provided  in Section  5.5,  the Option  Price of Company
     Stock under each Option shall be determined by the Committee but shall be a
     price not less than 100 percent of the Fair Market  Value of Company  Stock
     at the date such Option is granted.

          (b) Subject to Section 12.2, the Committee may not (i) amend an Option
     to reduce its Option  Price,  (ii)  cancel an Option and  regrant an Option
     with a lower Option Price than the original  Option Price of the  cancelled
     Option,  or  (iii)  take  any  other  action  (whether  in the  form  of an
     amendment,  cancellation  or  replacement  grant)  that has the  effect  of
     "repricing"  an Option,  as defined  under  applicable  NASDAQ rules or the
     rules of the  established  stock exchange or quotation  system on which the
     Company Stock is then listed or traded.

                                       8
<PAGE>

          (c)  Vested  Options  may be  exercised  from  time to time by  giving
     written  notice  to the  Chief  Financial  Officer  of the  Company  or the
     Secretary of the Committee,  or his or her designee,  specifying the number
     of shares to be purchased.  The notice of exercise  shall be accompanied by
     payment in full of the Option Price in cash or the Option Price may be paid
     in whole or in part  through  the  transfer  to the  Company  of  shares of
     Company Stock in accordance  with  procedures  established by the Committee
     from time to time. In addition, in accordance with the rules and procedures
     established  by the  Committee  for this  purpose,  an  Option  may also be
     exercised  through a  cashless  exercise  procedure  involving  a broker or
     dealer, that affords  Participants the opportunity to sell immediately some
     or all of the  shares  underlying  the  exercised  portion of the Option in
     order to generate sufficient cash to pay the Option Price and/or to satisfy
     withholding tax obligations related to the Option.

          (d) In the event such Option Price is paid, in whole or in part,  with
     shares of Company  Stock,  the portion of the Option Price so paid shall be
     equal to the  value,  as of the date of  exercise  of the  Option,  of such
     shares.  The  value of such  shares  shall be equal to the  number  of such
     shares  multiplied  by the Fair Market  Value of such shares on the trading
     day coincident with the date of exercise of such Option (or the immediately
     preceding  trading day if the date of exercise is not a trading  day).  The
     Company  shall not issue or  transfer  Company  Stock upon  exercise  of an
     Option until the Option Price is fully paid.

           5.5   Limitations on Incentive Stock Options.  Each provision of  the
Plan and each Award  Agreement  relating to an  Incentive  Stock Option shall be
construed so that each Incentive Stock Option shall be an incentive stock option
as defined in Section 422 of the Code, and any provisions of the Award Agreement
thereof that cannot be so construed  shall be  disregarded.  No Incentive  Stock
Option may be granted to any Employee who, at the time of such grant, owns stock
possessing  more than 10  percent  of the  total  combined  voting  power of all
classes of stock of the Company or of its parent or subsidiary  corporation  (as
determined under Sections 422 and 424 of the Code),  unless (a) the Option Price
for such Incentive Stock Option is at least 110 percent of the Fair Market Value
of a share of Company  Stock on the date the  Incentive  Stock Option is granted
and (b) such  Incentive  Stock Option may not be exercised  more than five years
after it is granted.  Notwithstanding  anything in the Plan to the contrary,  to
the extent required by the Code, the exercise of Incentive Stock Options granted
under the Plan shall be subject to the $100,000 calendar year limit as set forth
in Section 422 of the Code;  provided that, to the extent any grant exceeds such
$100,000 calendar year limit, the portion of such granted Option shall be deemed
a Nonqualified Stock Option in accordance with Section 422 of the Code.

           5.6   Rights and Privileges. A Participant shall have no rights as  a
Shareholder  with  respect to any shares of Company  Stock  covered by an Option
until the issuance of such shares to the Participant.

           5.7   Award of SARs.

          (a) The  Committee  may,  from  time to time,  and on such  terms  and
     conditions as the Committee may prescribe, award SARs to any Employee.

                                       9
<PAGE>

          (b) A SAR shall  represent  the right to receive  payment of an amount
     equal to (i) the  amount  by which  the Fair  Market  Value of one share of
     Company Stock on the trading day immediately preceding the date of exercise
     of the SAR  exceeds the  Exercise  Price  multiplied  by (ii) the number of
     shares covered by the SAR.  Payment of the amount to which a Participant is
     entitled upon the exercise of a SAR shall be made in cash,  Company  Stock,
     or partly in cash and  partly in  Company  Stock at the  discretion  of the
     Committee.  The shares  shall be valued at their Fair  Market  Value on the
     date of exercise.

          (c) SARs  awarded  under  the  Plan  shall  be  evidenced  by an Award
     Agreement between the Company and the Participant.

          (d) The Committee  may prescribe  conditions  and  limitations  on the
     exercise of any SAR. SARs may be exercised  only when the Fair Market Value
     of a share of Company Stock exceeds the Exercise Price.

          (e) A SAR shall be  exercisable  only by  written  notice to the Chief
     Financial Officer of the Company or the Secretary of the Committee,  or his
     or her designee.

          (f)  To  the  extent  not   previously   exercised,   all  SARs  shall
     automatically  be  exercised  on  the  last  trading  day  prior  to  their
     expiration,  so long as the Fair Market  Value of a share of Company  Stock
     exceeds the Exercise Price,  unless prior to such day the holder  instructs
     the Chief Financial Officer or Secretary,  Stock Option Committee otherwise
     in writing.

          (g) Subject to Article X, each SAR shall  expire on a date  determined
     by the Committee at the time of grant.

                                   ARTICLE VI
                              RESTRICTED STOCK AND
                          RESTRICTED PERFORMANCE STOCK

           6.1   Award of Restricted Stock and Restricted Performance Stock. The
Committee  may make a Restricted  Stock Award  and/or a  Restricted  Performance
Stock Award to any Employee,  subject to this Article VI and to such other terms
and conditions as the Committee may prescribe.

           6.2   Restriction Period and Performance  Period; Performance  Goals.
At the time of making a Restricted  Stock Award and/or a Restricted  Performance
Stock Award, the Committee shall establish the Restriction  Period applicable to
such  Restricted  Stock Award and the Performance  Period and Performance  Goals
applicable  to such  Restricted  Performance  Stock  Award.  The  Committee  may
establish  different  Restriction  Periods from time to time and each Restricted
Stock  Award may have a different  Restriction  Period,  Performance  Period and
Performance Goals in the discretion of the Committee.  Restriction Periods, when
established  for  a  Restricted  Stock  Award,   and  Performance   Periods  and
Performance  Goals,  when  established  for an Award of  Restricted  Performance
Stock, shall not be changed except as permitted by Section 6.3.

                                       10
<PAGE>

           6.3   Other  Terms  and  Conditions.   Company  Stock,  when  awarded
pursuant to a Restricted  Stock Award or a Restricted  Performance  Stock Award,
will be represented in a book entry account in the name of the  Participant  who
receives the Restricted Stock Award or Stock Restricted  Performance  Award. The
Participant shall be entitled to receive dividends during the Restriction Period
or Performance Period, as the case may be, and shall have the right to vote such
Restricted  Stock and  Restricted  Performance  Stock  and shall  have all other
Shareholder rights, with the exception that (i) unless otherwise provided by the
Committee,  if any dividends are paid in shares of Company  Stock,  those shares
will be subject to the same  restrictions as the shares of Restricted  Stock and
Restricted  Performance  Stock with respect to which they were issued,  (ii) the
Participant will not be entitled to delivery of any stock certificate evidencing
the  Company  Stock   underlying  the  Restricted   Stock  Award  or  Restricted
Performance  Stock during the Restriction  Period or Performance  Period, as the
case may be, (iii) the Company will retain custody of the  Restricted  Stock and
Restricted  Performance  Stock  during the  Restriction  Period and  Performance
Period,  as the case may be, and (iv) a breach of a  restriction  or a breach of
the terms and conditions established by the Committee pursuant to the Restricted
Stock  Award or a  failure  to  satisfy  the  Performance  Goals  pursuant  to a
Restricted  Performance  Stock Award will cause a forfeiture  of the  Restricted
Stock Award or Restricted Performance Stock Award.

           6.4   Restricted Stock Award Agreement. Each Restricted  Stock  Award
and Restricted Performance Stock Award shall be evidenced by an Award Agreement.

           6.5   Payment for  Restricted  Stock.  Restricted  Stock  Awards  and
Restricted Stock Performance Awards may be made by the Committee under which the
Participant  shall not be required to make any payment for the Company Stock or,
in  the  alternative,  under  which  the  Participant,  as a  condition  to  the
Restricted Stock Award and Restricted Stock Performance Award, shall pay all (or
any lesser  amount  than all) of the Fair  Market  Value of the  Company  Stock,
determined  as of the date the  Restricted  Stock  Awards and  Restricted  Stock
Performance Awards are made. If the latter, such purchase price shall be paid in
cash as provided in the Award Agreement.

                                  ARTICLE VII
                        AWARDS FOR NON-EMPLOYEE DIRECTORS

           7.1   Awards to  Non-Employee  Directors.  As  of  the  date  of  the
Company's annual shareholders  meeting,  beginning with the Effective Date, each
individual  who is a Company  Director  as of such  date  shall be issued by the
Company 300 shares of  unrestricted  Company Stock under  Article VIII,  without
terms  and  conditions  thereon.  As of the date on which  an  individual  first
becomes a Company  Director after the Effective Date, the Company shall issue to
such Company  Director 300 shares of  unrestricted  Company  Stock under Article
VIII, without terms and conditions thereon.  The Board may also issue to Company
Directors  such  other  Awards  as it may  determine  appropriate  in  its  sole
discretion.  The Committee shall  determine all Awards to Subsidiary  Directors.
The  Board  or the  Committee,  as the case may be,  retains  the  discretionary
authority to make Awards to Non-Employee  Directors and any type of Award (other
than Incentive  Stock Options) may be granted to  Non-Employee  Directors  under
this Plan.  All such Awards shall be subject to the terms and  conditions of the
Plan and to such  other  terms and  conditions  consistent  with the Plan as the
Board or the Committee, as the case may be, deems appropriate.

                                       11
<PAGE>

           7.2   No Right to Continuance as a Director. None of the  actions  of
the Company in  establishing  the Plan,  the actions  taken by the Company,  the
Board,  or the Committee  under the Plan, or the granting of any Award under the
Plan shall be deemed (i) to create  any  obligation  on the part of the Board or
the board of directors of the applicable Subsidiary to nominate any Non-Employee
Director  for   reelection   or  (ii)  to  be  evidence  of  any   agreement  or
understanding, express or implied, that the Non-Employee Director has a right to
continue as a Non-Employee  Director for any period of time or at any particular
rate of compensation.

                                  ARTICLE VIII
                 UNRESTRICTED COMPANY STOCK AWARDS FOR EMPLOYEES

           8.1   The Committee may make awards of unrestricted  Company Stock to
Employees on such terms and conditions as the Committee may prescribe.

                                   ARTICLE IX
                           AWARD OF PERFORMANCE UNITS

           9.1   Award of Performance Units. The Committee may award Performance
Units to any  Employee.  Each  Performance  Unit shall  represent the right of a
Participant  to receive an amount  equal to the value of the  Performance  Unit,
determined in the manner established by the Committee at the time of Award.

           9.2   Performance Period. At the time of each Performance Unit Award,
the Committee  shall  establish,  with respect to each such Award, a Performance
Period during which  performance  shall be measured.  There may be more than one
Performance Unit Award in existence at any one time, and Performance Periods may
differ.

           9.3   Performance Measures. Performance Units shall be awarded  to  a
Participant and earned  contingent  upon the attainment of Performance  Goals in
accordance with Section 4.5.

           9.4   Performance Unit Value.  Each Performance  Unit  shall  have  a
maximum  dollar  value  established  by the  Committee at the time of the Award.
Performance  Units earned will be  determined  by the  Committee in respect of a
Performance Period in relation to the degree of attainment of Performance Goals.
The measure of a Performance  Unit may, in the discretion of the  Committee,  be
equal to the Fair Market Value of one share of Company Stock.

           9.5   Award Criteria. In determining the number of  Performance Units
to be granted to any  Participant,  the  Committee  shall take into  account the
Participant's  responsibility level,  performance,  potential, cash compensation
level,  other  incentive  awards,  and  such  other  considerations  as it deems
appropriate.

                                       12
<PAGE>

           9.6   Payment.

          (a)  Following  the  end  of  the  applicable  Performance  Period,  a
     Participant  holding  Performance Units will be entitled to receive payment
     of an amount,  not exceeding the maximum  value of the  Performance  Units,
     based on the  achievement  of the  Performance  Goals for such  Performance
     Period, as determined by the Committee.

          (b) Awards may be paid in cash or stock, or any  combination  thereof,
     as determined by the  Committee.  Payment shall be made in a lump sum or in
     installments  and shall be subject to such other  terms and  conditions  as
     shall be determined by the Committee.

           9.7   Performance Unit Award Agreements.  Each Performance Unit Award
shall be evidenced by an Award Agreement.

                                   ARTICLE X
                         GENERAL TERMINATION PROVISIONS

           10.1  Termination.   Subject  to  Article  XI  and  unless  otherwise
specified in the  applicable  Award  Agreement,  the following  provisions  will
govern  the  treatment  of  a  Participant's   outstanding  Awards  following  a
Participant's Termination.

          (a) If the  Participant's  Termination is due to death,  Disability or
     Retirement,   all  of  the  Participant's   outstanding  Options,  SARs  or
     Restricted  Stock Awards  shall  become  fully  vested and, if  applicable,
     exercisable.  Upon the Participant's  Termination for any other reason, any
     Awards  that  are  not  vested  and/or  exercisable  on the  date  of  such
     Termination  will  immediately  terminate  and be of no  further  force and
     effect.

          (b) If the Participant Terminates for any reason other than (i) death,
     (ii)  Disability,  (iii)  Retirement  or (iv)  discharge  for  Cause,  such
     Participant's  outstanding  SARs or Options  may be  exercised  at any time
     within three months after such Termination,  to the extent of the number of
     shares covered by such Options or SARs which are exercisable at the date of
     such Termination;  except that an Option or SAR shall not be exercisable on
     any date beyond the expiration date of such Option or SAR.

          (c) Upon a  Termination  for  Cause,  any  Options or SARs held by the
     Participant  (whether or not then exercisable)  shall expire and any rights
     thereunder  shall terminate  immediately.  Any non-vested  Restricted Stock
     Awards of such  Participant  shall  immediately be forfeited and any rights
     thereunder shall terminate.

          (d) Upon a Termination  due to the  Participant's  death,  any SARs or
     Options that are then  exercisable  may be  exercised by the  Participant's
     Personal  Representative  at any time  before  the  earlier of (i) one year
     after the Participant's death or (ii) the expiration date of the Award.

          (e)  Upon  a  Termination  due  to  the  Participant's  Disability  or
     Retirement,  any SARs or Options that are then exercisable may be exercised
     by the Participant at any time before the earlier of (i) one year after the
     date of  such  Termination  or  (ii)  the  expiration  date  of the  Award;
     provided,  however,  that an Option  which is  intended  to  qualify  as an
     Incentive  Stock  Option  will  only be  treated  as such to the  extent it
     complies with the requirements of Section 422 of the Code.

                                       13
<PAGE>

          (f) Subject to Article XI, a  Performance  Unit Award shall  terminate
     for all  purposes  if the  Participant  Terminates  at any time  during the
     applicable  Performance  Period. In the event that a Participant  holding a
     Performance Unit Terminates following the end of the applicable Performance
     Period but prior to full payment  according to the terms of the Performance
     Unit Award,  the  Performance  Unit Award shall  terminate  except when the
     termination event is due to death, Disability or Retirement.

                                   ARTICLE XI
                        CHANGE IN CONTROL OF THE COMPANY

           11.1  Contrary Provisions.  Notwithstanding anything contained in the
Plan to the  contrary,  the  provisions  of this  Article  XI shall  govern  and
supersede any inconsistent terms or provisions of the Plan.

           11.2  Definitions

          (a) Change in Control.  For  purposes of this Plan,  Change in Control
     shall mean a change in the ownership or effective control of the Company or
     in the  ownership  of a  substantial  portion of the assets of the  Company
     (within the meaning of Section 409A of the Code.

               (i) Change in Actual  Control shall mean the  acquisition  by any
          one person,  or more than one person  acting as a group (as defined in
          Section 11.2(a)(iv), below) of ownership of stock of the Company that,
          together  with stock held by such  person or group,  constitutes  more
          than 50 percent of the total fair market  value or total  voting power
          of the stock of the Company.  However, if any one person, or more than
          one  person  acting  as a group,  is  considered  to own more  than 50
          percent of the total fair market  value or total  voting  power of the
          stock of the Company,  the acquisition of additional stock by the same
          person  or  persons  is not  considered  to cause a Change  in  Actual
          Control of the Company (or to cause a Change in  Effective  Control of
          the Company (within the meaning of Section  11.2(a)(ii)).  An increase
          in the percentage of stock owned by any one person,  or persons acting
          as a group, as a result of a transaction in which the Company acquires
          its stock in exchange for property  will be treated as an  acquisition
          of stock for purposes of this Section 11.2(a)(i).

               (ii) Change in Effective Control shall mean:

                    (A) The  acquisition  by any one  person,  or more  than one
               person  acting as a group (as  defined  in  Section  11.2(a)(iv),
               below),  during any 12-month  period of ownership of stock of the
               Company  possessing  35 percent or more of the total voting power
               of the stock of the Company; or

                                       14
<PAGE>

                    (B) The  replacement  of a majority  of members of the Board
               during any 12-month  period by  directors  whose  appointment  or
               election  is not  endorsed  by a majority  of the  members of the
               Board  prior  to the  date  of the  appointment  or  election  in
               accordance with Treasury Regulation $ 1.409A-1(g)(5)(vi)(A)(2).

Notwithstanding the foregoing, if any one person, or more than one person acting
as a group, is considered to effectively control the Company (within the meaning
of this Section 11.2(a)(ii)), the acquisition of additional control of the
Company by the same person or persons is not considered to cause a Change in
Control.

               (iii) Change in the Ownership of the Company's  Assets shall mean
          the acquisition by any one person, or more than one person acting as a
          group (as defined in Section 11.2(a)(iv),  below), during any 12-month
          period of assets from the Company  that have a total gross fair market
          value  equal to or more than 40 percent of the total gross fair market
          value of all of the assets of the  Company  immediately  prior to such
          acquisition or acquisitions.  Notwithstanding the foregoing,  there is
          no change in control event under this Section  11.2(a) when there is a
          transfer  to  an  entity  that  is  controlled  by  the   Shareholders
          immediately after the transfer.

               (iv)  Persons  acting as a group.  For  purposes of this  Section
          11.2(a), persons will not be considered to be acting as a group solely
          because they purchase or own stock of the same corporation at the same
          time,  or as a result of the same public  offering.  However,  persons
          will be  considered  to be acting  as a group if they are  owners of a
          corporation  that  enters  into a merger,  consolidation,  purchase or
          acquisition  of  stock,  or  similar  business  transaction  with  the
          corporation.  If a person,  including  an  entity,  owns stock in both
          corporations  that enter  into a merger,  consolidation,  purchase  or
          acquisition  of stock,  or similar  transaction,  such  shareholder is
          considered  to be  acting  as a group  with  other  shareholders  in a
          corporation  only with respect to the  ownership  in that  corporation
          prior  to the  transaction  giving  rise to the  change  and not  with
          respect to the ownership interest in the other corporation.

           11.3  Effect of Change in Control on Certain Awards.

          (a) All Awards shall become  immediately and fully  exercisable (or in
     the case of  Restricted  Stock,  fully  vested  and all  restrictions  will
     immediately  lapse)  upon a Change in  Control.  In the case of  Restricted
     Performance  Stock and Performance  Units, the target payout  opportunities
     under  all  outstanding   Awards  of  Restricted   Performance   Stock  and
     Performance  Units  shall be  deemed  to have been  fully  earned  based on
     targeted  performance being attained as of the effective date of the Change
     in Control.  In addition,  except to the extent such discretion  would give
     rise to adverse tax consequences  under Section 409A of the Code, the Board
     or its designee may, in its sole discretion,  provide for a cash payment to
     be made to each Participant for the outstanding Options,  Restricted Stock,
     Restricted   Performance   Stock,   SARs  or  Performance  Units  upon  the
     consummation of the Change in Control,  determined on the basis of the fair
     market  value  that  would be  received  in such  Change in  Control by the
     holders   of  the   Company's   securities   relating   to   such   Awards.
     Notwithstanding the foregoing, any Option intended to be an Incentive Stock
     Option  under  Section  422 of the Code  shall be  adjusted  in a manner to
     preserve such status.

                                       15
<PAGE>

          (b) Except as provided in Subsection  (a), in the event of a Change in
     Control,  all Awards or such substitutes  therefor shall remain outstanding
     and be governed by their respective terms and the provisions of the Plan.

           11.4  Amendment or Termination.  This Article XI shall not be amended
or terminated at any time if any such amendment or termination  would  adversely
affect the rights of any Participant under the Plan.

                                  ARTICLE XII
                            MISCELLANEOUS PROVISIONS

           12.1  Adjustments   Upon   Changes   in   Stock.   In  case  of   any
reorganization, recapitalization, reclassification, stock split, stock dividend,
distribution,  combination of shares, merger, consolidation, rights offering, or
any  other  changes  in the  corporate  structure  or  shares  of  the  Company,
appropriate adjustments shall be made by the Committee or the Board, as the case
may  be,  (or if the  Company  is not  the  surviving  corporation  in any  such
transaction,  the  board  of  directors  of the  surviving  corporation)  in the
aggregate number and kind of shares subject to the Plan, and the number and kind
of shares and the Option Price per share subject to outstanding Options or which
may  be  issued  under  outstanding  Restricted  Stock  Awards  or  pursuant  to
unrestricted Company Stock Awards.  Appropriate  adjustments may also be made by
the Committee or the Board, as the case may be, in the terms of any Awards under
the Plan, subject to Article XI, to reflect such changes and to modify any other
terms of outstanding  Awards on an equitable basis. Any such adjustments made by
the Committee or the Board pursuant to this Section 12.1 shall be conclusive and
binding for all purposes under the Plan.

           12.2  Amendment, Suspension, and Termination of Plan.

          (a) The Board may suspend or terminate the Plan or any portion thereof
     at any time,  and may amend the Plan from time to time in such  respects as
     the Board may deem  advisable  in order  that any Awards  thereunder  shall
     conform to any change in  applicable  laws or  regulations  or in any other
     respect  the Board  may deem to be in the best  interests  of the  Company;
     provided,  however,  that no such amendment shall,  without  approval,  (i)
     except as  provided  in  Section  12.1,  increase  the  number of shares of
     Company Stock which may be issued under the Plan,  (ii) expand the types of
     awards available to Participants  under the Plan,  (iii) materially  expand
     the class of employees eligible to participate in the Plan, (iv) materially
     change the method of determining the Option Price of Options; (v) delete or
     limit the  provision in Section 5.4  prohibiting  the repricing of Options;
     (vi) extend the termination date of the Plan or (vii) be made to the extent
     that Shareholder approval is required to satisfy applicable law, regulation
     or any securities  stock exchange,  market or other quotation  system on or
     through  which the Company  Stock is listed or traded.  No such  amendment,
     suspension,  or termination shall materially  adversely alter or impair any
     outstanding Options, SARs, shares of Restricted Stock, or Performance Units
     without the consent of the Participant affected thereby.

                                       16
<PAGE>

          (b) The Committee may amend or modify any outstanding  Options,  SARs,
     Restricted  Stock Awards,  or Performance  Unit Awards in any manner to the
     extent  that the  Committee  would  have had the  authority  under the Plan
     initially  to  award  such  Options,  SARs,  Restricted  Stock  Awards,  or
     Performance  Unit  Awards as so  modified  or  amended,  including  without
     limitation,  to change the date or dates as of which  such  Options or SARs
     may be exercised, to remove the restrictions on shares of Restricted Stock,
     or to modify the manner in which Performance Units are determined and paid.

          (c) Notwithstanding  the foregoing,  the Plan and any Award Agreements
     may  be  amended   without  any   additional   consideration   to  affected
     Participants  to the extent  necessary to comply with,  or avoid  penalties
     under, Section 409A of the Code, even if those amendments reduce,  restrict
     or eliminate rights granted prior to such amendments.

           12.3  Nonuniform  Determinations. The Committee's (or, if applicable,
the Board's)  determinations under the Plan,  including without limitation,  (a)
the determination of the Employees and Non-Employee Directors to receive Awards,
(b) the form,  amount, and timing of any Awards, (c) the terms and provisions of
any Awards and (d) the Award Agreements evidencing the same, need not be uniform
and may be made by it selectively among Employees and/or Non-Employee  Directors
who receive,  or who are eligible to receive,  Awards under the Plan, whether or
not such Employees and/or Non-Employee Directors are similarly situated.

           12.4  General Restriction. Each Award under the Plan shall be subject
to the condition that, if at any time the Committee shall determine that (a) the
listing,  registration,  or qualification of the shares of Company Stock subject
or related thereto upon NASDAQ or any other established  stock exchange,  market
or  quotation  system or under any state or  federal  law,  (b) the  consent  or
approval of any  government  or  regulatory  body,  or (c) an  agreement  by the
Participant  with respect  thereto,  is necessary or desirable,  then such Award
shall  not  become  exercisable  in  whole  or  in  part  unless  such  listing,
registration,  qualification,  consent,  approval,  or agreement shall have been
effected or obtained free of any conditions not acceptable to the Committee.

           12.5  No Right To Employment. None of the actions of the  Company  in
establishing  the  Plan,  the  actions  taken by the  Company,  the Board or the
Committee  under the Plan,  or the granting of any Award under the Plan shall be
deemed (a) to create any obligation on the part of the Company or any Subsidiary
to retain any person in the employ of, or continue the provision of services to,
the  Company  or any  Subsidiary,  or (b) to be  evidence  of any  agreement  or
understanding, express or implied, that the person has a right to continue as an
employee for any period of time or at any particular rate of compensation.

           12.6  Governing Law. The provisions of the Plan shall take precedence
over any  conflicting  provision  contained in an Award  Agreement.  All matters
relating  to the Plan or to Awards  granted  hereunder  shall be governed by and
construed in accordance with the laws of the State of Maryland without regard to
the principles of conflict of laws.

                                       17
<PAGE>

           12.7  Trust Arrangement.  All  benefits  under the Plan  represent an
unsecured  promise to pay by the  Company.  The Plan shall be  unfunded  and the
benefits  hereunder  shall be paid only from the  general  assets of the Company
resulting  in the  Participants  having no  greater  rights  than the  Company's
general creditors;  provided,  however, nothing herein shall prevent or prohibit
the Company from  establishing a trust or other  arrangement  for the purpose of
providing for the payment of the benefits payable under the Plan.

           12.8  Indemnification of Board and Committee.  Indemnification of the
members of the Board and/or the members of the Committee  shall be in accordance
with the Code of Regulations of the Company as amended by the Shareholders  from
time to time.

           12.9  No Impact on Benefits. Awards are not compensation for purposes
of calculating a Participant's  rights under any employee benefit plan that does
not specifically require the inclusion of Awards in calculating benefits.

           12.10 Beneficiary   Designation.   Each   Participant  may   name   a
beneficiary  or  beneficiaries  to receive or exercise  any vested Award that is
unpaid or unexercised at the Participant's  death.  Unless otherwise provided in
the beneficiary designation, each designation will revoke all prior designations
made by the same Participant, must be made on a form prescribed by the Committee
and will be  effective  only when  filed in  writing  with the  Committee.  If a
Participant  has not made an  effective  beneficiary  designation,  the deceased
Participant's  beneficiary  will be the  Participant's  surviving  spouse or, if
none,  the  deceased  Participant's  estate.  The  identity  of a  Participant's
designated  beneficiary  will be based only on the  information  included in the
latest beneficiary designation form completed by the Participant and will not be
inferred from any other evidence.

           12.11 Tax Withholding. The Company shall have the power and the right
to deduct or withhold,  or require a  Participant  to remit to the Company,  the
minimum  statutory amount to satisfy federal,  state and local taxes required by
law or  regulation to be withheld with respect to any taxable event arising as a
result of the Plan. With respect to withholding  required upon any taxable event
arising as a result of an Award  granted  hereunder,  a  Participant  may elect,
subject  to  the  approval  of  the  Committee,   to  satisfy  the   withholding
requirement,  in whole or in part,  by having  the  Company  withhold  shares of
Company Stock having a Fair Market Value on the date the tax is to be determined
equal  to  the  minimum  statutory  total  tax  that  could  be  imposed  on the
transaction. All such elections shall be irrevocable, made in writing and signed
by the Participant, and shall be subject to any restrictions or limitations that
the Committee, in its sole discretion, deems appropriate.

                                       18

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