Document:

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                    EXHIBIT 10.5 - NON DE-DEBARMENT AGREEMENT
                             BETWEEN ORBIT/FR, INC.
                                       AND
                           THE DEPARTMENT OF THE NAVY

1. This Agreement is entered into between the Department of the Navy, on behalf
of the Department of Defense, and Orbit/FR, Inc. (hereinafter "Orbit"). The sole
purpose of this Agreement is to evince that Orbit is presently responsible to
contract with the Federal Government by insuring that Orbit has and will
continue a program of acceptable contracting practices and procedures, and by
establishing and implementing a program of compliance reviews, audits, and
reports. For purpose of this Agreement, Orbit shall mean Orbit as a body
corporate, its, successors, subsidiaries, and/or divisions and all directors,
officers, employees and/or consultants of any of the aforesaid entities.

2. Pursuant to a plea Agreement filed in the United States District Court for
the Eastern District of Pennsylvania, on November 10, 1999, Orbit entered a plea
of guilty to counts one and two of a criminal information charging it with
violating the Arms Export Control Act, 22 U.S.C. Section 2778(b)(2) and (c). The
information and plea Agreement are attached to this Agreement as Annex I. By
presentations beginning on September 2, 1999, Orbit has presented to the Navy
information demonstrating its present responsibility, notwithstanding the
conviction, including cooperation with investigators, changes in corporate
management, and establishment of compliance programs and procedures since the
time of the underlying conduct. The Navy has determined under the authority of
FAR 9.406 that the terms and conditions of this Agreement provide adequate
assurances that Orbit's future dealings with the Government will be conducted
with a high degree of honesty and integrity, and that suspension or debarment of
Orbit is not necessary to protect the Government's interest.

3. This Agreement affects only those causes for debarment arising from the facts
and circumstances referred to in Annex I. Except as provided in paragraph 16, or
as otherwise authorized in writing by the Debarring Official, or an appointee
thereof (hereinafter "the Navy Debarring Authority"), this Agreement shall not
be used for any purpose with regard to any criminal, civil, or administrative
charge, claim, or action by or against Orbit related to or arising out of any
criminal or civil investigation conducted by any component of the Department of
Justice or the Department of Defense.

4. By this Agreement, Orbit recognizes its corporate responsibility to ensure
that Orbit fully complies with all federal procurement laws and regulations when
contracting, directly or indirectly, with the United States Government. In this
regard, all aspects of Orbit's corporate and business operations shall be
conducted according to the highest code of corporate ethics, generally
prevailing lawful and honest behavior, and the guidelines set by the letter and
the spirit of this Agreement.

5. To fulfill its corporate responsibilities, Orbit has begun and shall, in
accordance with the Schedule attached hereto as Annex II (hereinafter "the
Schedule"), fully implement a Compliance Program by which Orbit can and will
adhere to lawful and ethical procedures and practices in all areas of and
relating to its provision of goods and services as a Government
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contractor and/or subcontractor. This Compliance Program shall have the
following components:

         5.1 A WRITTEN CODE OF ETHICS: Orbit has established a written Code of
Ethics as part of its Employee Handbook, which provides notice to all employees
that the highest standard of business ethics is mandated. A copy of the Code of
Ethics is attached as Annex III.

                  5.1.1 The Code of Ethics shall be maintained, reviewed on an
annual basis by Orbit's duly appointed legal counsel, and updated as required
for compliance with statutory and/or regulatory changes.

                  5.1.2 All Orbit directors, officers, employees, and
consultants shall be required to sign a certificate stating that they have read
the Employee Handbook and agree to abide by its provisions.

         5.2 COMPLIANCE OFFICER: Orbit has established and shall, for at least
the duration of this Agreement, maintain a position designated as the Compliance
Officer.

                  5.2.1 The Compliance Officer reports to and is responsible
only to the Board of Directors of Orbit. To facilitate implementation of this
Agreement, the Compliance Officer also reports on a dotted line to the Senior
Corporate Officer.

                  5.2.2 The identification and qualifications of the current
Compliance Officer are set forth in Annex IV. The signature of the Navy's
Debarring Official on this Agreement shall signify acceptance of the current
Compliance Officer.

                  5.2.3 Should the current or any subsequently appointed
Compliance Officer leave the position, that fact shall be reported to the Navy
Debarring Authority, in writing, within 10 days of said leaving. A replacement
shall be selected by Orbit and reported to the Navy Debarring Authority within
forty-five calendar days of said leaving. Appointment of a replacement
Compliance Officer shall be subject to approval by the Navy Debarring Authority,
which approval shall be solely within the discretion of the Navy Debarring
Authority, but will not be unreasonably withheld or denied. The Navy agrees to
advise Orbit of the reasons for its denial so that Orbit can address the Navy's
concerns. Should the Navy deny approval of any replacement Compliance Officer,
Orbit shall promptly select another and report its selection to the Navy
Debarring Authority. Failure to comply with the provisions of this paragraph
shall be deemed a material breach of this Agreement.

                  5.2.4 The Compliance Officer shall assist Orbit in identifying
and reporting violations of its Code of Ethics.

                  5.2.5 Investigation Reports - The Compliance Officer shall
investigate all instances of suspected misconduct and, at the conclusion of the
investigation, shall report in writing the findings to the Board of Directors
and Senior Corporate Officer for management response. Said management response
shall be in writing and shall be provided to the

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Compliance Officer within thirty days of the receipt by management of the
Compliance Officer's report. If the Compliance Officer finds no merit to
allegations of misconduct, no written management response shall be required.

                         5.2.5.1 The Compliance Officer's investigation shall
begin within five working days of the receipt of the notice of actual or
suspected misconduct.

                         5.2.5.2 In addition to the final investigation report
during the course of the investigation, the Compliance Officer shall prepare a
quarterly report to the Board of Directors, chronicling the progress of the
investigation then to date.

                         5.2.5.3 The Compliance Officer shall provide to the
Navy Debarring Authority copies of all reports of investigations and
management's response within ten working days of when said documents were
created or received by the Compliance Officer. The quarterly report to the Board
of Directors, alternatively, may be included in the Quarterly Report referenced
in paragraph 6 below.

                  5.2.6 Quarterly Reports - The Compliance Officer shall, within
10 working days after the end of each fiscal quarter, prepare and deliver to the
Navy Debarring Authority a synopsis of each instance of suspected and/or
confirmed misconduct which became known to the Compliance Officer during the
fiscal quarter. This synopsis shall be made without regard to the degree to
which the Compliance Officer has been able, as of the due date of the report, to
investigate the misconduct. This synopsis shall include disclosure of any
remedial action taken to date.

         5.3 A HOT LINE: Orbit has established and shall, for at least the
duration of this Agreement, maintain a "hot line" to facilitate the reporting of
misconduct by or within Orbit. The policies and procedures of this component are
fully presented in Annex V. Execution of this Agreement by the Navy Debarring
Official shall evidence approval of this component by the Navy Debarring
Authority.

         5.4 A WRITTEN CONTRACT COMPLIANCE MANUAL: Orbit has developed and
implemented an Employee Handbook containing the regulatory standards and
acceptable practices for doing business with the Government and/or Government
prime contractors. These practices and procedures shall be applied to all of
Orbit's business dealings involving Government contracts or subcontracts.

                  5.4.1 A copy of the Employee Handbook is attached as Annex VI.

                  5.4.2 Execution of this Agreement by the Navy Debarring
Official shall evidence approval of this component by the Navy Debarring
Authority.

                  5.4.3 In addition to any other provisions, Orbit's Employee
Handbook includes a requirement that employees comply with Orbit's Export
Control Manual.

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         5.5 A WRITTEN AUDIT AND COMPLIANCE REVIEW PROCEDURE: Orbit shall
establish and, for at least the duration of this Agreement, maintain an Audit
and Compliance Review Procedure.

                  5.5.1 Orbit's Audit and Compliance Review Procedure for export
controls is set forth in the attached Annex VII. Execution of this Agreement by
the Navy Debarring Official shall evidence approval of this component by the
Navy Debarring Authority.

                  5.5.2 Orbit's Audit and Compliance Review Procedure for
corporate compliance is set forth in Annex VIII. Execution of this Agreement by
the Navy Debarring Official shall evidence approval of this component by the
Navy Debarring Authority.

                  5.5.3 In addition to any other provision that the corporate
compliance audit and review procedures may have, these procedures shall provide
for yearly audits of each component of this Compliance Program.

                         5.5.3.1 The audits shall be conducted by the Compliance
Officer in conjunction with the appropriate Orbit management personnel.

                         5.5.3.2 The annual audits shall begin no earlier than
January 1, and shall be completed no later than March 31 of each calendar year
during the term of this Agreement.

                         5.5.3.3 A report which describes and discusses the
findings made during the audits shall be part of the Compliance Officer's
Quarterly Report for the quarter during which the audits were conducted.

         5.6 EXPORT COMPLIANCE: Orbit has established and implemented an export
compliance procedure (hereinafter "Export Control Manual") that will, to the
greatest extent practicable, preclude repetition of the incidents set forth in
the information and plea Agreement and that meet or exceed the requirements of
all pertinent and applicable professional and/or government mandated standards.

                  5.6.1 The full version of Orbit's Export Control Manual is set
forth in a separate binder provided to the Navy Debarring Official, which is
incorporated herein by reference.

                  5.6.2 The signature of the Navy's Debarring Official on this
Agreement shall signify acceptance of Orbit's Export Control Manual.

         5.7 RECURRING, CLASSROOM STYLE TRAINING: Orbit shall create and
implement a curriculum of classroom style training designed to familiarize each
of its directors, officers, employees, and consultants with the concepts and
precepts of each component of this Compliance Program. This training shall begin
no earlier than January 1 and shall be completed no later than March 30 of each
calendar year during which this Agreement continues.

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                  5.7.1 The curriculum to be used for training with regard to
each of the components of the Compliance Program is attached hereto as Annex IX
of this Agreement.

                  5.7.2 Execution of this Agreement by the Navy Debarring
Official shall evidence approval of this component by the Navy Debarring
Authority.

                  5.7.3 Training of Orbit's employees on compliance with export
regulations governing the company's business has been conducted by an outside
consultant. A copy of the curriculum is attached as Annex X. Execution of this
Agreement by the Navy Debarring Official shall evidence approval of this
component of Orbit's Compliance Program.

                  5.7.4 In addition to any other training they may receive, each
director, officer, employee, and/or consultant who misses the training given on
the dates indicated on the Schedule, and any director, officer, employee, and/or
consultant who joins, is hired by, or contracts with Orbit after said training
is completed shall be trained individually within thirty days of their
association with Orbit, by the Compliance Officer. In addition, the Compliance
Officer shall, as part of each Quarterly report, identify each such person,
state the date when the person joined Orbit, and state whether the person has
been trained in accordance with this section.

                  5.7.5 In addition to any other training, each Orbit director,
officer, employee, and consultant shall be informed of any change to any
component of this Compliance Program, which took place since the last previous
training session.

6. Orbit further agrees to:

         6.1 Complete all compliance actions identified by this Agreement on or
before the date stated in the Schedule.

         6.2 Orbit's Compliance Officers shall, within ten (10) working days
after the end of each fiscal quarter [March, June, September, and December],
prepare and provide a report to the Navy Debarring Authority, describing Orbit's
implementation of this Agreement. This report may be combined with the
Compliance Officer's Quarterly Report described in subparagraph 5(B)(6).

         6.3 The Compliance Officer's report shall include, with respect to the
company, the status of: (1) All instances of disciplinary action for violations
of any law and/or the Code of Ethics; (2) all known, ongoing criminal
investigations; (3) all known qui tam suits; (4) all known or suspected
defective pricing cases; and (5) any other matter which might affect Orbit's
present responsibility status, including but not limited to actual or potential
suspension and/or debarment actions by other Government and quasi-governmental
agencies.

         6.4 Allow designated representatives of the Department of Defense to
interview Orbit personnel and to examine Orbit's financial books, records, and
other company documents for the

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purpose of evaluating Orbit's compliance with the terms of this Agreement. Such
materials described above shall be made available by Orbit after reasonable
notice for inspection, audit and/or reproduction, provided, however, the
Department of Defense shall not be entitled to examine documents properly
subject to the attorney-client or attorney work product privileges, nor to copy:
(1) Documents containing technical data or computer software, except in
accordance with government contract data rights provisions, or (2) Documents
containing trade secrets.

         6.5 In addition to the reports made pursuant to paragraph 6.B. and C.,
disclose, within 30 calendars days of its alleged occurrence, to the Department
of Defense and to the prime Government customer if such customer is not a DoD
component, all instances in which there are reasonable grounds to believe that
Orbit, its directors, officers, employees, consultants, suppliers and/or
Government personnel have violated Federal laws or regulations relating to U.S.
Government procurements. Further, Orbit shall take immediate corrective measures
to remedy the matter disclosed, and to notify the Department of Defense, and the
prime Government customer, if the matter relates to a non-DoD contract, of the
corrective action taken and Orbit's opinion regarding any impact the matter may
have on the Government.

         6.6 Cooperate fully with any investigation by the Department of Justice
or the Department of Defense of which Orbit knows or learns in the future.

         6.7 Upon conviction of Orbit for violation of any Federal criminal
statute, take appropriate disciplinary action against all responsible
individuals.

         6.8 Upon indictment of, or the entering of a guilty plea or plea of
nolo contendere by any director, officer, employee or consultant of Orbit for
violation of any criminal statute, which violation occurred in connection with
the individuals performance of duties for or on behalf of Orbit, immediately
remove the director, officer, employee or consultant from active status with the
Company relating to any dealings with the U.S. Government.

         6.9 Upon unappealed conviction of, or after an unsuccessful appeal by
any current director, officer, employee or consultant of Orbit for violation of
any criminal statute, which violation occurred in connection with the
individuals performance of duties for or on behalf of Orbit, take prompt action
to terminate the employment of such officer, employee or consultant, or as
appropriate to remove such director from the Orbit Board of Directors in
recognition of Title 10, U.S.C. Section 2408.

         6.10 Treat all costs associated with the termination, severance and/or
removal of any director, officer, employee or consultant of Orbit under
paragraph I, above, which are incurred subsequent to the execution of this
Agreement; as unallowable for Federal Government Contract purposes.

7. During the term of this Agreement, Orbit shall not knowingly employ, engage
or accept the services of an individual who is listed by a Federal Agency as
debarred, suspended, or

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otherwise ineligible for Federal contracting. Reasonable inquiry shall be made
into the suspension/debarment status of any potential employee or consultant
prior to the offer of employment or engagement of services. Further, Orbit shall
promptly terminate the employment of or contract for services with any
individual who was suspended or debarred as of the effective date of their
association with Orbit. Moreover, Orbit shall immediately remove such individual
from responsibility for or involvement with Government contract matters until
the resolution of any question there might be regarding their suspension or
debarment status as of the time of their association with Orbit.

8. During the term of this Agreement, Orbit shall not knowingly enter into any
subcontract or other business relationship relating to Federal Government
contracts with any individual or business entity (hereinafter "prospective
business associate") listed as debarred, suspended, or otherwise ineligible for
contracting by a Federal Agency (hereinafter "listed contractor") without prior
approval by the Navy Debarring Authority.

         8.1 Orbit shall make reasonable inquiry into the listed contractor
status of each prospective business associate.

         8.2 Whenever the inquiry required by the preceding paragraph "A"
reveals that the prospective business associate is a listed contractor, Orbit
shall submit a notice to the Navy Debarring Authority in form and content as
specified in FAR 9.405-2(b).

         8.3 Orbit shall also give written notice of the prohibition effected by
this paragraph 8 to each prospective business associate at the earliest
practicable date.

         8.4 Navy Debarring Authority approval of Orbit's association with any
listed contractor shall be deemed given if notice of disapproval is not received
by Orbit within fifteen (15) business days after receipt by the Navy Debarring
Authority of the notice prescribed in paragraph 8(B).

         8.5 Orbit shall notify each prospective business associate that neither
actual nor "deemed" approval of Orbit's association with a listed contractor
shall be grounds for any party to assert that the Navy has found the listed
contractor to be presently responsible to contract with any Agency of the
Federal Government. Orbit shall further notify each prospective business
associate that such approval shall mean only that the protections afforded the
Government by Orbit, as stated in its notice to the Navy Debarring Authority
referred to in paragraph 8(B), have been found sufficient to protect the
interests of the Government.

         8.6 If this paragraph 8 or any of its subparts in any way conflicts
with the restrictions and/or requirements of FAR 9.405-2, the latter shall
govern.

9. In addition to those costs stated in paragraphs 6.J and 10, Orbit agrees that
the costs described below shall be unallowable for United States Government
contract purposes and shall not be charged directly or indirectly to any such
contract or subcontract:

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         9.1 All costs of performing the remedial actions set forth in this
Agreement accomplished by Orbit subsequent to the execution of this Agreement.

         9.2 All costs of legal services whether performed by in-house or
private counsel, administrative and clerical services, services of accountants
and consultants, salaries and wages of employees, officers, and directors,
travel, and any costs directly related to the aforesaid, incurred in the
implementation of and/or continued compliance with the terms of this Agreement.

10. Within thirty days of the anniversary of the effective date of this
Agreement, and each year for the duration of the Agreement, Orbit will remit the
sum of $5,000.00, made payable to the Treasury of the United States, as and for
final payment of the costs of monitoring, reviewing, enforcing, and
administering this Agreement.

11. Except as provided in paragraph 16, the execution of this Agreement by the
Navy in no way waives any criminal, civil, contractual, or administrative remedy
or right that the Government may have for the acts described in the Notice, or
for any other conduct that would give rise to such remedies.

12. Material breach by Orbit of the terms of this Agreement, if not cured to the
reasonable satisfaction of the Navy Debarring Authority within 30 working days,
or as otherwise permitted by the Navy Debarring Authority after receipt by Orbit
of written notice of such breach, shall constitute a cause for debarment subject
to the procedures established by the Federal Acquisition Regulation and any
other applicable statute or regulation.

13. By execution of this Agreement, Orbit releases the United States, its
employees, agents, and instrumentalities, in both official and personal
capacities, of any and all liability arising out of or otherwise related to this
Agreement. Further, Orbit agrees not to file any claim against the United
States, its employees, agents, and instrumentalities, in both official and
personal capacities, in any forum or jurisdiction, with regard to any matter
arising out of or otherwise related to this Agreement.

14. By execution of this Agreement, Orbit avers that any adverse action taken or
to be taken against any Orbit director, officer, employee, consultant, or agent,
with regard to any matter arising out of or related to the facts and
circumstances set forth in the Notice, are the result solely of Orbit's
initiatives and decisions, and are not the result of any action by or on behalf
of the United States, its employees, agents or instrumentalities.

15. Orbit agrees to indemnify the Government against, and hold the Government
harmless from, any and all claims, liabilities, obligations, and causes of
action of whatsoever kind or nature for damages sustained by, or injury to or
death of any person, and for any injury or damage to or destruction of any
property, arising out of or as a result of the facts which form the basis for
this Agreement, even if the Government's liability to any person arises out of
the acts or

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omissions of the Government, its employees, agents, invitees, or representatives
of any other description whatsoever.

16. In recognition of the actions by and covenants of Orbit set forth herein,
the Navy, on behalf of the Department of Defense, will not suspend or debar
Orbit based on the facts and circumstances set forth in Annex I.

17. This Agreement is subject to the Freedom of Information Act and may only be
distributed by the Navy throughout the Executive Branch of the Government and to
other interested parties in accordance with the exemptions to FOIA.

18. Modification to this Agreement may be made but shall have no effect until
the terms of the Modification are expressly incorporated in a writing which has
been executed by both parties. Neither party shall seek or accept the benefit of
a judicial or quasi-judicial order directing the other to execute a writing
which would, if executed, modify this Agreement.

19. For purposes of interpretation of this Agreement or any part hereof by a
court of competent jurisdiction (or any other judicial or quasi-judicial body),
this Agreement shall be deemed to have been drafted equally by all parties
hereto.

20. This Agreement shall become effective on the date of the last signature
hereto and shall continue thereafter for three years, or should Orbit for any
reason cease to be in full compliance with the letter and spirit of this
Agreement, for a period of three years following reestablishment of full
compliance as determined by the Navy Debarring Authority, whichever period is
longest.

21. This Agreement constitutes the entire Agreement between the parties and
supersedes all prior Agreements and understandings, oral or written, with
respect to the subject matter hereof. This Agreement shall inure to the benefit
of, and be binding upon, the parties and their respective successors and
assigns.

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U.S. Navy Debarring Official                     David Bernstein
                                                 Executive Vice President and
                                                    Chief Operating Officer
                                                 Orbit/FR, Inc.

                                      -9-AMENDED AND RESTATED
                              SNAP-ON INCORPORATED
                          1986 INCENTIVE STOCK PROGRAM
                      (As Amended through January 22, 1999)

          1.  Purpose.   The  purpose  of  the  Amended  and  Restated   Snap-on
Incorporated  1986  Incentive  Stock  Program (the  "Program") is to attract and
retain outstanding people as officers and key employees of Snap-on  Incorporated
(the "Company") and its  subsidiaries  and entities of which at least 20% of the
equity  interest  is held  directly  or  indirectly  by the  Company  (together,
"Affiliates")  and to  furnish  incentives  to such  persons by  providing  such
persons opportunities to acquire shares ("Shares") of the Company's common stock
("Common  Stock"),  or monetary payments based on the value of such Common Stock
or the  financial  performance  of the  Company,  or both,  on  terms as  herein
provided.

          2.  Administration.  The Program will be  administered  by a committee
(the  "Committee")  of the  Board of  Directors  of the  Company  (the  "Board")
composed  of not less  than  two  Directors,  each of whom  shall  qualify  as a
"disinterested  person" for  purposes  of Rule 16b-3  ("Rule  16b-3")  under the
Securities  Exchange Act of 1934,  as amended (the  "Exchange  Act"),  and as an
"outside  director" under Section  162(m)(4)(C) of the Internal  Revenue Code of
1986, as amended (the "Code") (or any successor  provision  thereto);  provided,
however,  that from and after such time as Rule  16b-3 as adopted in  Securities
and Exchange Commission Release No. 34-37260 applies to the Company,  members of
the Board serving on the Committee  shall no longer need to be a  "disinterested
person" but instead must qualify as a "Non-Employee Director" within the meaning
of Rule 16b-3. To the extent  permitted by applicable law, the Board may, in its
discretion,  delegate to another committee of the Board or to one or more senior
officers of the Company any or all of the  authority and  responsibility  of the
Committee with respect to Benefits (as defined below) to Participants other than
Participants who are subject to the provisions of Section 16 of the Exchange Act
("Section  16  Participants")  at the  time  any  such  delegated  authority  or
responsibility is exercised. The Board also may, in its discretion,  delegate to
another committee of the Board consisting entirely of Non-Employee Directors any
or all of the authority  and  responsibility  of the  Committee  with respect to
Benefits to Section 16 participants and other  Participants.  To the extent that
the Board has  delegated  to such other  committee  or one or more  officers the
authority and  responsibility of the Committee,  all references to the Committee
herein shall include such other committee or one or more officers. The Committee
shall interpret the Program,  prescribe, amend and rescind rules and regulations
relating  thereto and make all other  determinations  necessary or advisable for
the  administration  of the Program.  A majority of the members of the Committee
shall constitute a quorum and all  determinations of the Committee shall be made
by a majority of its  members.  Any  determination  of the  Committee  under the
Program  may be made  without  notice or meeting of the  Committee  by a writing
signed by a majority of the Committee members.

          3.  Participants.  Participants in the Program  ("Participants")  will
consist  of  such  officers  or  other  key  employees  of the  Company  and its
Affiliates as the Committee in its sole  discretion  may designate  from time to
time to  receive  benefits  described  in  Section  4 hereof  ("Benefits").  The
Committee's designation of a Participant in any year shall not require the

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Committee to designate  such person to receive a Benefit in any other year.  The
Committee  shall  consider  such  factors  as it deems  pertinent  in  selecting
Participants  and in  determining  the  type  and  amount  of  their  respective
Benefits,  including  without  limitation  (i) the  financial  condition  of the
Company;  (ii)  anticipated  profits  for the  current  or future  years;  (iii)
contributions  of  Participants  to the  profitability  and  development  of the
Company; and (iv) other compensation provided to Participants.

          4.  Types of Benefits.

              (a) The  Committee  shall  have full  power and  authority  to (i)
determine the type or types of Benefits to be granted to each Participant  under
the Program;  (ii) determine the number of Shares and/or monetary payments to be
covered by (or with respect to which payments, rights or other matters are to be
calculated in  connection  with)  Benefits  granted to  Participants;  and (iii)
determine  any terms and  conditions  of any Benefit  granted to a  Participant,
subject in each case only to express requirements of the Program. Benefits under
the Program may be granted in any one or a combination  of (A)  incentive  stock
options granted under Section 6 hereof and intended to meet the  requirements of
Section 422 of the Code (or any successor  provision thereto)  ("Incentive Stock
Options");  (B)  options  granted  under  Section 7 hereof  not  intended  to be
Incentive Stock Options ("Non-Qualified Stock Options");  (C) stock appreciation
rights granted pursuant to Section 9 hereof ("Stock Appreciation  Rights");  (D)
Shares   granted  under  Section  10  hereof  to  be  held  subject  to  certain
restrictions  ("Restricted  Stock") and Bonus Shares (are defined in Section 11)
delivered  pursuant to Section 11; (E) Shares  granted  under  Section 12 hereof
("Performance  Shares");  and (F) monetary units granted under Section 13 hereof
("Performance  Units").  For  purposes  hereof,   Incentive  Stock  Options  and
Non-Qualified  Stock Options shall be hereinafter  referred to  collectively  as
"Options". Benefits under the Program may be granted either alone or in addition
to, in tandem with, or in substitution  for any other Benefit or any other award
or  benefit  granted  under  any other  plan of the  Company  or any  Affiliate.
Benefits  granted in addition to or in tandem with other  awards or benefits may
be granted either at the same time as or at different  times from grants of such
other Benefits or other awards.

              (b) Each  member  of the Board (a  "Director")  who is not also an
employee of the Company  shall receive  Director  Options (as defined in Section
14) under the Program as provided in Section 14.

              (c) As used in the Plan,  the term "Award"  shall mean any Benefit
or Director Option granted under the Program.

          5.  Shares Reserved under the Program.

              (a) There is hereby  reserved for issuance under the Program after
the Effective  Date (as defined  below) an aggregate of Six Million  (6,000,000)
Shares,  consisting of Shares (i) newly  authorized  effective  upon approval of
this  Program,  as amended and  restated,  by the  Company's  shareholders  at a
meeting duly called and held (the "Effective  Date"),  (ii) previously  reserved
for issuance under the Program as to which Benefits could be awarded under

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this Program immediately prior to the Effective Date and (iii) subject to awards
of Benefits that are  outstanding  immediately  prior to the Effective Date. Not
more than  300,000  Shares  reserved for  issuance  under the Program  after the
Effective Date may be issued as Restricted Stock.

              (b) If there is a lapse,  expiration,  termination or cancellation
of any Award granted hereunder without the issuance of Shares or payment of cash
thereunder,  if Shares are issued under any Award and  thereafter are reacquired
by the Company  pursuant to rights  reserved  upon the issuance  thereof,  or if
previously  owned Shares are delivered to the Company in payment of the exercise
price of an Award,  then the Shares  subject to,  reserved  for or  delivered in
payment  in  respect  of such  Award may again be used for new  Options or other
Awards of any sort authorized under this Program.

              (c) No  Participant  shall be granted  Benefits  under the Program
that could result in such Participant (i) receiving in any single fiscal year of
the Company Options for, and/or Stock Appreciation  Rights with respect to, more
than 450,000  Shares,  (ii) receiving  Benefits in any single fiscal year of the
Company  relating  to more  than  225,000  Shares  of  Restricted  Stock,  (iii)
receiving  more  than  225,000  Performance  Shares  in  respect  of any  period
designated  under  Section  12 or (iv)  receiving  Performance  Units  exceeding
$1,000,000 in value in respect of any period  designated  under Section 13. Such
number of Shares as  specified  in the  preceding  sentence  shall be subject to
adjustment in accordance  with the terms of Section 18(a) hereof.  In all cases,
determinations under this Section 5 shall be made in a manner that is consistent
with the exemption for performance-based compensation provided by Section 162(m)
of the Code (or any successor provision thereto) and any regulations promulgated
thereunder.

          6.  Incentive   Stock  Options.   Incentive   Stock  Options  will  be
exercisable  at purchase  prices of not less than One Hundred  percent (100%) of
the fair  market  value of the Shares on the date of grant,  as such fair market
value is determined by such methods or procedures as shall be  established  from
time to time by the Committee  ("Fair Market  Value").  Incentive  Stock Options
will be  exercisable  over not more than ten (10) years  after date of grant and
shall terminate not later than three (3) months after  termination of employment
for any reason other than death,  except as otherwise provided by the Committee.
If the  Participant  should die while  employed or within three (3) months after
termination  of  employment,  then the right of the  Participant's  successor in
interest to exercise an Incentive  Stock Option shall  terminate  not later than
twelve (12) months after the date of death,  except as otherwise provided by the
Committee.  In all other  respects,  the  terms of any  Incentive  Stock  Option
granted under the Program shall comply with the provisions of Section 422 of the
Code  (or any  successor  provision  thereto)  and any  regulations  promulgated
thereunder.

          7.  Non-Qualified Stock Options.  Non-Qualified  Stock Options will be
exercisable  at purchase  prices of not less than One Hundred  percent (100%) of
the Fair Market  Value of the Shares on the date of grant.  Non-Qualified  Stock
Options will be  exercisable  as determined by the Committee  over not more than
fifteen  (15) years after the date of grant and shall  terminate  six (6) months
after  termination of employment  for any reason other than death,  except that,
subject to the maximum term of fifteen (15) years,  (a) in  connection  with the
termination  of  a  Participant's  employment  in a  manner  that  entitles  the
Participant immediately to receive the

                                       3
<PAGE>

payment of benefits under any defined benefit  retirement plan of the Company or
any of  its  Affiliates  ("Retirement"),  a  Non-Qualified  Stock  Option  shall
terminate  three (3) years after  Retirement  and (b) the  Committee may provide
otherwise  in  connection   with  any   termination  of  employment,   including
Retirement.  If the  Participant  should die while employed or within any period
after termination of employment during which the Non-Qualified  Stock Option was
exercisable,  then, subject to the maximum term of fifteen (15) years, the right
of the  Participant's  successor in interest to exercise a  Non-Qualified  Stock
Option  shall  terminate  not later than twelve  (12)  months  after the date of
death, except as otherwise provided by the Committee.

          8.  Certain  Replacement  Options.  Without  in any way  limiting  the
authority of the Committee to make grants of Options to Participants  hereunder,
and in order to induce  Participants to retain ownership of Shares acquired upon
the exercise of Options,  the  Committee  shall have the  authority  (but not an
obligation)  to include  within  any  agreement  setting  forth the terms of any
Options (or any  amendment  thereto) a  provision  entitling  a  Participant  to
further Options  ("Replacement  Options") in the event the Participant exercises
any Options (including a Replacement  Option) under the Program,  in whole or in
part, by surrendering  previously  acquired Shares. Any such Replacement Options
shall (a) be  Non-Qualified  Stock  Options under  Section 7,  exercisable  at a
purchase price,  unless  otherwise  determined by the Committee,  of 100% of the
Fair Market Value of the Shares on the date the Replacement Options are granted,
(b) be for a number of Shares  equal to the  number of Shares  surrendered,  (c)
only become exercisable on the terms specified by the Committee in the event the
Participant holds, for a minimum period of time prescribed by the Committee, the
Shares the  Participant  acquired upon the exercise in connection with which the
Replacement  Options  were  issued,  and (d) be subject to such other  terms and
conditions as the Committee may determine.

          9.  Stock Appreciation  Rights.  The Committee is hereby authorized to
grant Stock  Appreciation  Rights to  Participants.  Subject to the terms of the
Program and any applicable  agreement with a Participant,  a Stock  Appreciation
Right granted  under the Program  shall confer on the holder  thereof a right to
receive,  upon exercise thereof,  the excess of (a) the Fair Market Value of one
Share  (determined on the date the Stock  Appreciation  Right is exercised) over
(b) the  grant  price  of the  Stock  Appreciation  Right  as  specified  by the
Committee, which shall, unless otherwise determined by the Committee, be 100% of
the Fair Market Value of one Share (determined on the date of grant of the Stock
Appreciation Right). Subject to the terms of the Program, the grant price, term,
calculation  of Fair Market  Value,  methods of exercise,  methods of settlement
(including  whether  the  Participant  will  be  paid  in  cash,  Shares,  other
securities,  other Benefits or other property, or any combination thereof),  and
any other  terms and  conditions  of any Stock  Appreciation  Right  shall be as
determined  by the  Committee.  The  Committee  may impose  such  conditions  or
restrictions  on the  exercise  of any Stock  Appreciation  Right as it may deem
appropriate.

                                       4
<PAGE>

          10. Restricted Stock.

              (a) The Committee is hereby  authorized to issue  Restricted Stock
to Participants,  with or without payment therefor, as additional  compensation,
or in lieu of other  compensation,  for their services to the Company and/or any
Affiliate. Restricted Stock shall be subject to such terms and conditions as the
Committee determines appropriate, including, without limitation, restrictions on
sale or other disposition and rights of the Company to reacquire such Restricted
Stock upon termination of the Participant's employment within specified periods,
as prescribed by the Committee.

              (b) Without limitation, such terms and conditions may provide that
Restricted  Stock  shall  be  subject  to  forfeiture  if  the  Company  or  the
Participant  fails to achieve certain goals  established by the Committee over a
designated  period of time. Any grant of Restricted  Stock subject to such terms
and  conditions  to a Section  16  Participant  shall be in  writing.  The goals
established  by the  Committee  may relate to any one or more of the  following:
revenues,  earnings per share, return on shareholder  equity,  return on average
total capital employed, return on net assets employed before interest and taxes,
economic value added and/or,  in the case of Participants  other than Section 16
Participants,  such other goals as may be  established  by the  Committee in its
discretion.  In the event the minimum goal  established  by the Committee is not
achieved at the conclusion of a period,  all Shares of Restricted Stock shall be
forfeited.  In the event the maximum goal is achieved,  no Shares of  Restricted
Stock shall be forfeited.  Partial achievement of the maximum goal may result in
forfeiture corresponding to the degree of nonachievement to the extent specified
in writing by the Committee when the grant is made. The Committee  shall certify
in writing as to the degree of achievement  after  completion of the performance
period.

          11. Bonus Shares;  Deposit Share Program.  The Committee is authorized
to provide  Participants the opportunity to elect to receive Shares in lieu of a
portion  or all of cash  bonuses  under  the  Company's  incentive  compensation
programs and/or increases in base compensation  ("Bonus  Shares").  Bonus Shares
shall be  issued in an amount  equal to (a) the  dollar  amount of bonus or base
compensation a Participant  elects to receive in Common Stock (subject to limits
prescribed by the Committee) divided by (b) the Fair Market Value of a Share (as
determined  on the date the cash  compensation  to which the Bonus Shares relate
would otherwise be payable) and shall be subject to such terms and conditions as
the Committee deems appropriate,  including, without limitation, restrictions on
withdrawal  from the Deposit Share  Program (as  hereinafter  defined),  sale or
other disposition.

          The Committee may establish a program (the "Deposit Share Program") in
connection  with the  delivery  of Bonus  Shares  under  which (a)  Participants
wishing to receive  Restricted  Stock in tandem with Bonus Shares shall  deposit
Bonus  Shares with the Company or such other  designee of the Company and comply
with all rules relating to the Deposit Share Program as the Committee prescribes
and (b) the Company  shall match any Bonus Shares a  Participant  has  deposited
with the Company by depositing up to one (1) Share of Restricted  Stock for each
Bonus Share  deposited,  as determined by the Committee.  The  Restricted  Stock
deposited by the Company shall vest in accordance with such terms and conditions
as determined by the Committee.

                                       5
<PAGE>

          Elections  to receive  Bonus Shares or to  participate  in the Deposit
Share  Program may be made only in  accordance  with such rules and  regulations
prescribed  by the  Committee  from  time  to  time,  including  any  rules  and
regulations applicable to Section 16 Participants.

          12. Performance  Shares.  The Committee  may grant Performance  Shares
that  the  Participant  may  earn in  whole  or in part  if the  Company  or the
Participant   achieves  certain  goals  established  by  the  Committee  over  a
designated  period of time  consisting  of one or more full fiscal  years of the
Company,  but not in any event  more than five (5)  years.  Any such  grant to a
Section  16  Participant  shall be in  writing.  The  goals  established  by the
Committee may relate to any one or more of the following: revenues, earnings per
share, return on shareholder  equity,  return on average total capital employed,
return on net assets employed  before  interest and taxes,  economic value added
and/or,  in the case of Participants  other than Section 16  Participants,  such
other goals as may be  established  by the Committee in its  discretion.  In the
event the minimum  goal  established  by the  Committee  is not  achieved at the
conclusion of a period,  no delivery of Shares shall be made to the Participant.
In the event the maximum goal is  achieved,  One Hundred  percent  (100%) of the
Performance Shares shall be delivered to the Participant. Partial achievement of
the  maximum  goal may  result  in a  delivery  corresponding  to the  degree of
achievement  to the extent  specified in writing by the Committee when the grant
is made. The Committee  shall certify in writing as to the degree of achievement
after  completion  of the  performance  period.  The  Committee  shall  have the
discretion  to satisfy an  obligation  to  deliver a  Participant's  Performance
Shares by delivery of less than the number of Shares earned together with a cash
payment  equal to the then Fair Market  Value of the Shares not  delivered.  The
number of Shares  reserved for issuance under this Program shall be reduced only
by the  number of Shares  delivered  in respect  of earned  Performance  Shares.
Subject to  Section  18(c)(iii),  at the time of making an award of  Performance
Shares,  the Committee shall set forth the  consequences of the termination of a
Participant's  employment  with  the  Company  or  an  Affiliate  prior  to  the
expiration  of the  designated  performance  period  in  respect  of  which  the
Performance Shares are awarded.

          13. Performance Units.  The Committee may grant Performance Units to a
Participant  that consist of monetary units and that the Participant may earn in
whole  or in part if the  Company  or the  Participant  achieves  certain  goals
established by the Committee over a designated  period of time consisting of one
or more full fiscal  years of the  Company,  but not in any event more than five
(5) years. Any such grant to a Section 16 Participant  shall be in writing.  The
goals  established  by the  Committee  may  relate  to any  one or  more  of the
following: revenues, earnings per share, return on shareholder equity, return on
average total capital  employed,  return on net assets  employed before interest
and taxes, economic value added, Share price and/or, in the case of Participants
other than Section 16  Participants,  such other goals as may be  established by
the Committee in its  discretion.  In the event the minimum goal  established by
the Committee is not achieved at the conclusion of a period, no payment shall be
made to the Participant.  In the event the maximum goal is achieved, One Hundred
percent (100%) of the monetary value of the  Performance  Units shall be paid to
the  Participant.  Partial  achievement  of the  maximum  goals may  result in a
payment corresponding to the degree of achievement to the

                                       6
<PAGE>

extent  specified  in  writing  by the  Committee  when the  grant is made.  The
Committee  shall  certify  in  writing  as to the  degree of  achievement  after
completion of the performance  period.  Payment of a Performance Unit earned may
be in cash or in Shares or in a  combination  of both,  as the  Committee in its
sole  discretion  determines.  The number of Shares  reserved for issuance under
this Program shall be reduced only by the number of Shares  delivered in payment
of Performance Units.  Subject to Section  18(c)(iii),  at the time of making an
award of Performance  Units,  the Committee shall set forth the  consequences of
the termination of a  Participant's  employment with the Company or an Affiliate
prior to the expiration of the designated performance period in respect of which
the Performance Units are awarded.

          14. Non-Employee Directors.  Each Director who is not also an employee
of the Company (including members of the Committee) and who is a Director on the
date of the annual meeting of shareholders of the Company during the term of the
Program shall automatically be granted on each such meeting date a non-qualified
stock option for the purchase of 3,000 Shares ("Director Options") at a purchase
price equal to One Hundred percent (100%) of the Fair Market Value of the Shares
on the date each  Director  Option is granted,  which shall be the closing price
for the Common  Stock on such date as reported  on the New York Stock  Exchange.
Director  Options shall be exercisable for ten (10) years from the date of grant
and shall  terminate six (6) months after the  non-employee  Director  ceases to
serve as a Director for any reason other than death, except that, subject to the
maximum  term of ten (10)  years,  (a) as to any  Director  who, at the time the
Director ceases to serve as a Director,  is at least age 65 or has completed six
(6) years of service,  the Director Options held by the Director shall terminate
three (3) years  after the  Director  ceases to serve as a Director  and (b) the
Committee may amend such time limits.  If the Director  should die while serving
as a Director, or within any period after termination of his or her service as a
Director during which the Director Option was exercisable,  then, subject to the
maximum term of ten (10) years, the right of his or her successor in interest to
exercise a Director Option shall terminate  twelve (12) months after the date of
death.  Non-employee  Directors  shall not be eligible for any Benefit under the
Program.

          15. Transferability.  Each  Award granted under this Program shall not
be  transferable  other  than by will or the laws of descent  and  distribution,
except  that a  Participant  or  Director  may,  to the  extent  allowed  by the
Committee and in a manner specified by the Committee, (a) designate in writing a
beneficiary to exercise the Award after the  Participant's or Director's  death,
as the case may be, and (b) transfer any Award.

          16. Term of Program and Amendment,  Modification  or  Cancellation  of
Benefits.

              (a) No Award  shall be granted  more than ten (10) years after the
Effective Date.

                                       7
<PAGE>

              (b) Except as provided  in Section  19(a) below and subject to the
requirements  of the  Program,  the  Committee  may modify or amend any Award or
waive any  restrictions  or  conditions  applicable to any Award or the exercise
thereof,  and the terms and conditions  applicable to any Awards may at any time
be amended,  modified or canceled by mutual agreement  between the Committee and
the  Participant  or Director or any other  persons as may then have an interest
therein,  so long as any amendment or modification  does not increase the number
of Shares  issuable  under this Program.  Action may be taken under this Section
16(b) notwithstanding expiration of the Program under Section 16(a).

          17. Taxes. The Company shall be entitled to withhold the amount of any
tax attributable to any amount payable or Shares  deliverable  under the Program
after giving the person  entitled to receive such amount or Shares notice as far
in advance as practicable,  and the Company may defer making payment or delivery
if any such tax may be pending unless and until indemnified to its satisfaction.
The Committee  may, in its discretion and subject to such rules as it may adopt,
permit a  Participant  to pay all or a portion of the  federal,  state and local
withholding taxes arising in connection with (a) the exercise of a Non-Qualified
Stock Option, (b) a disqualifying  disposition of Common Stock received upon the
exercise  of an  Incentive  Stock  Option,  (c) the  lapse  of  restrictions  on
Restricted  Stock or (d) the receipt of Performance  Shares,  by electing to (i)
have the Company withhold Shares, (ii) tender back Shares received in connection
with such Benefit or (iii) deliver other previously owned Shares,  having a Fair
Market Value equal to the amount to be  withheld;  provided,  however,  that the
amount to be  withheld  shall  not  exceed  the  Participant's  estimated  total
federal,  state and local tax obligations  associated with the transaction.  The
election  must be made on or before the date as of which the amount of tax to be
withheld is  determined  and  otherwise as required by the  Committee.  The Fair
Market Value of fractional  Shares  remaining  after payment of the  withholding
taxes shall be paid to the Participant in cash.

          The  Committee  may,  in  its  discretion,  grant  a cash  bonus  to a
Participant who holds Restricted Stock,  either inside or outside of the Deposit
Share Program,  or Performance  Shares to enable the Participant to pay all or a
portion of the federal, state or local tax liability incurred by the Participant
upon the vesting of Restricted  Stock or Performance  Shares.  The Company shall
deduct  from any cash bonus such  amount as may be  required  for the purpose of
satisfying the Company's obligation to withhold federal, state or local taxes.

          18. Adjustment Provisions; Change of Control.

              (a) If the  Company  shall at any time change the number of issued
Shares without new  consideration  to the Company (such as by stock dividends or
stock  splits),  the total number of Shares  reserved  for  issuance  under this
Program  and the number of Shares  covered by each  outstanding  Award  shall be
adjusted  so that the  aggregate  consideration  payable to the  Company and the
value of each such Award shall not be changed. The Committee shall also have the
right  to  provide  for  the  continuation  of  Awards  or for  other  equitable
adjustments  after changes in the Common Stock  resulting  from  reorganization,
sale,  merger,  consolidation or similar  occurrence;  provided,  however,  that
Director  Options subject to grant or previously  granted to Directors under the
Program at the time of any such event shall be subject to only such adjustment

                                       8
<PAGE>

as shall be necessary to maintain the proportionate interest of the Director and
preserve, without exceeding, the value of such Director Options.

              (b) Notwithstanding  any  other  provision  of this  Program,  and
without  affecting  the  number  of  Shares  otherwise   reserved  or  available
hereunder, the Committee may authorize the issuance or assumption of Benefits in
connection with any merger, consolidation,  acquisition of property or stock, or
reorganization upon such terms and conditions as it may deem appropriate.

              (c) In  the  event  of  a  "change  of  control"  (as  hereinafter
defined):

                      (i) each holder of an Option and Director Option (A) shall
               have the right at any time  thereafter  to exercise the Option or
               Director  Option in full  whether or not the  Option or  Director
               Option was theretofore exercisable; and (B) shall have the right,
               exercisable by written notice to the Company within 60 days after
               the change of control,  to receive, in exchange for the surrender
               of the Option or Director  Option or any  portion  thereof to the
               extent  the  Option or  Director  Option is then  exercisable  in
               accordance  with clause (A), the highest of (1) an amount of cash
               equal to the  difference  between  the Fair  Market  Value of the
               Common Stock covered by the Option or Director  Option or portion
               thereof  that is so  surrendered  on the  date of the  change  of
               control and the  purchase  price of such  Common  Stock under the
               Option or  Director  Option,  (2) an amount of cash  equal to the
               difference  between the highest  price per Share of Common  Stock
               paid in the transaction  giving rise to the change of control and
               the purchase  price per Share of Common Stock under the Option or
               Director  Option  multiplied  by the  number  of Shares of Common
               Stock  covered by the Option or Director  Option or (3) an amount
               of cash equal to the difference  between the Fair Market Value of
               the Common  Stock  covered by the  Option or  Director  Option or
               portion thereof that is so surrendered, calculated on the date of
               surrender,  and the purchase price of such Common Stock under the
               Option or Director  Option;  provided that the right described in
               this clause (B) shall be  exercisable  only if a positive  amount
               would be payable to the holder pursuant to the formula  specified
               in this clause (B);

                      (ii)  Restricted  Stock  held  inside  or  outside  of the
               Deposit Share Program  (including  Bonus Shares) that is not then
               vested shall vest upon the date of the change of control and each
               holder of such Restricted Stock shall have the right, exercisable
               by written notice to the Company within sixty (60) days after the
               change of control,  to receive,  in exchange for the surrender of
               such Restricted  Stock, an amount of cash equal to the highest of
               (A) the Fair Market Value of such Restricted Stock on the date of
               surrender,  (B) the highest  price per Share of Common Stock paid
               in  the  transaction   giving  rise  to  the  change  of  control
               multiplied   by  the  number  of  Shares  of   Restricted   Stock
               surrendered or (C) the Fair Market Value of such Restricted Stock
               on the effective date of the change of control;

                                       9
<PAGE>

                      (iii)  each   holder  of  a   Performance   Share   and/or
               Performance Unit for which the performance period has not expired
               shall  have the  right,  exercisable  by  written  notice  to the
               Company  within 60 days after the change of control,  to receive,
               in exchange  for the  surrender of the  Performance  Share and/or
               Performance  Unit,  an amount of cash equal to the product of the
               value of the  Performance  Share  and/or  Performance  Unit and a
               fraction  the  numerator  of which is the number of whole  months
               which have elapsed from the beginning of the  performance  period
               to the date of the change of control and the denominator of which
               is the number of whole months in the performance period; and

                      (iv) each holder of a Performance Share and/or Performance
               Unit  that has been  earned  but not yet paid  shall  receive  an
               amount of cash equal to the value of the Performance Share and/or
               Performance Unit.

          For  purposes of this Section 18, the "value" of a  Performance  Share
shall be equal to the highest of (1) the Fair Market  Value of a Share of Common
Stock on the date of the change of control,  (2) the highest  price per Share of
Common Stock paid in the transaction giving rise to the change of control or (3)
the Fair  Market  Value of a Share of  Common  Stock  calculated  on the date of
surrender or payment, as the case may be.

              (d) A "change of control"  of the Company  shall be deemed to have
occurred  for  purposes of this  Section 18 if the event set forth in any one of
the following paragraphs shall have occurred:

                      (i) any  "Person"  (as such  term is  defined  in  Section
               3(a)(9) of the  Securities  Exchange Act of 1934, as amended (the
               "Exchange Act"), as modified and used in Sections 13(d) and 14(d)
               thereof,  except that for  purposes of this  Section 18, the term
               "Person"  shall  not  include  (1)  the  Company  or  any  of its
               subsidiaries, (2) a trustee or other fiduciary holding securities
               under  an  employee  benefit  plan of the  Company  or any of its
               subsidiaries,  (3) an underwriter  temporarily holding securities
               pursuant to an offering of such securities,  or (4) a corporation
               owned, directly or indirectly, by the shareholders of the Company
               in substantially the same proportions as their ownership of stock
               in the Company) is or becomes the "Beneficial  Owner" (as defined
               in Rule 13d-3 under the Exchange Act), directly or indirectly, of
               securities  of the  Company  (not  including  in  the  securities
               beneficially  owned  by  such  Person  any  securities   acquired
               directly from the Company or its affiliates)  representing 25% or
               more of either the then outstanding Shares of common stock of the
               Company  or the  combined  voting  power  of the  Company's  then
               outstanding voting securities; or

                                       10
<PAGE>

                      (ii) the  following  individuals  cease for any  reason to
               constitute  a majority of the number of Directors  then  serving:
               individuals who, on January 1, 1996, constitute the Board and any
               new Director  (other than a Director whose initial  assumption of
               office is in  connection  with an actual or  threatened  election
               contest,  including  but not  limited to a consent  solicitation,
               relating to the election of  Directors  of the  Company,  as such
               terms  are  used in Rule  14a-11  of  Regulation  14A  under  the
               Exchange  Act)  whose  appointment  or  election  by the Board or
               nomination  for  election  by  the  Company's   shareholders  was
               approved by a vote of at least  two-thirds (2/3) of the Directors
               then still in office who either were Directors on January 1, 1996
               or whose  appointment,  election or  nomination  for election was
               previously so approved; or

                      (iii) the  shareholders of the Company approve a merger or
               consolidation  of the  Company  with  any  other  corporation  or
               approve  the  issuance  of voting  securities  of the  Company in
               connection with a merger or  consolidation of the Company (or any
               direct  or  indirect  subsidiary  of  the  Company)  pursuant  to
               applicable stock exchange  requirements,  other than (1) a merger
               or consolidation  which would result in the voting  securities of
               the  Company  outstanding  immediately  prior to such  merger  or
               consolidation   continuing  to  represent  (either  by  remaining
               outstanding or by being  converted into voting  securities of the
               surviving  entity  or any  parent  thereof)  at least  60% of the
               combined voting power of the voting  securities of the Company or
               such  surviving   entity  or  any  parent   thereof   outstanding
               immediately after such merger or  consolidation,  or (2) a merger
               or consolidation  effected to implement a recapitalization of the
               Company (or similar transaction) in which no Person is or becomes
               the Beneficial  Owner,  directly or indirectly,  of securities of
               the Company (not including in the securities  beneficially  owned
               by such Person any securities  acquired directly from the Company
               or its  affiliates)  representing  25% or more of either the then
               outstanding Shares of common stock of the Company or the combined
               voting power of the Company's then outstanding voting securities;
               or

                      (iv) the  shareholders  of the  Company  approve a plan of
               complete   liquidation  or  dissolution  of  the  Company  or  an
               agreement  for the sale or  disposition  by the Company of all or
               substantially  all of the Company's assets (in one transaction or
               a  series  of  related  transactions  within  any  period  of  24
               consecutive  months),  other  than a sale or  disposition  by the
               Company of all or substantially all of the Company's assets to an
               entity,  at least 75% of the combined  voting power of the voting
               securities  of which are owned by  Persons in  substantially  the
               same  proportions as their  ownership of the Company  immediately
               prior to such sale.

Notwithstanding  the  foregoing,  no "Change of Control" shall be deemed to have
occurred  if there is  consummated  any  transaction  or  series  of  integrated
transactions  immediately following which the record holders of the common stock
of the Company  immediately  prior to such transaction or series of transactions
continue to have  substantially  the same  proportionate  ownership in an entity
which owns all or  substantially  all of the assets of the  Company  immediately
following such transaction or series of transactions.

                                       11
<PAGE>

              (e) As of the Effective Date, any outstanding  Benefit  previously
granted  under the Program  shall be deemed  amended to provide to the holder of
such Benefit rights  corresponding  to those  described in paragraph (c) of this
Section 18 in the event of a change of control (as defined herein).

              (f) The Committee may, in its sole and absolute discretion,
amend, modify or rescind the provisions of this Section 18 if it determines that
the operation of this Section 18 may prevent a transaction  in which the Company
or any Affiliate is a party from being  accounted for on a  pooling-of-interests
basis.

          19. Amendment  and  Termination of the Program;  Correction of Defects
and Omissions.

              (a) The Board may at any time amend, alter,  suspend,  discontinue
or terminate the Program;  provided,  however, that the provisions of Section 14
of the Program  shall not be amended more than once every six (6) months,  other
than to  comport  with  changes  in the Code,  the  Employee  Retirement  Income
Security  Act of 1974,  as amended,  or the rules  promulgated  thereunder;  and
provided further that shareholder approval of any amendment of the Program shall
also be  obtained if  otherwise  required  by (i) the rules  and/or  regulations
promulgated  under  Section 16 of the  Exchange Act (in order for the Program to
remain  qualified  under  Rule  16b-3),  (ii) the Code or any rules  promulgated
thereunder  (in order to allow for  Incentive  Stock Options to be granted under
the Program or to enable the Company to comply  with the  provisions  of Section
162(m) of the Code so that the Company can deduct  compensation in excess of the
limitation set forth therein), or (iii) the listing requirements of the New York
Stock  Exchange  or any  principal  securities  exchange  or market on which the
Shares are then traded (in order to maintain  the  listing or  quotation  of the
Shares  thereon).  Termination  of the  Program  shall not  affect the rights of
Participants or Directors with respect to Awards previously granted to them, and
all unexpired Awards shall continue in force and effect after termination of the
Program  except  as they may  lapse or be  terminated  by their  own  terms  and
conditions.

              (b) The Committee may correct any defect,  supply any omission, or
reconcile any  inconsistency in any Award or agreement  covering an Award in the
manner and to the  extent it shall  deem  desirable  to carry the  Program  into
effect.

          20. Miscellaneous.  The grant of  any Award under the Program may also
be subject to other provisions (whether or not applicable to the Benefit awarded
to any other Participant) as the Committee  determines  appropriate,  including,
without limitation,  provisions for (a) one or more means to enable Participants
or Directors to defer  recognition of taxable income  relating to Awards or cash
payments  derived  therefrom,  which  means  may  provide  for  a  return  to  a
Participant  or Director  on amounts  deferred as  determined  by the  Committee
(provided that no such deferral means may result in an increase in the number of
Shares  issuable  hereunder);  (b) the purchase of Common Stock under Options or
Director  Options in  installments;  (c) the financing of the purchase of Common
Stock under Options or Director Options in the form of a

                                       12
<PAGE>

promissory note issued to the Company by a Participant or Director on such terms
and  conditions  as the  Committee  determines;  (d) the payment of the purchase
price of Options or Director  Options (i) by delivery of cash or other Shares or
securities of the Company  having a then Fair Market Value equal to the purchase
price of such  Shares or (ii) by delivery  (including  by fax) to the Company or
its designated  agent of an executed  irrevocable  option exercise form together
with irrevocable  instructions to a broker-dealer to sell or margin a sufficient
portion of the Shares and deliver the sale or margin loan  proceeds  directly to
the Company to pay for the exercise price;  (e)  restrictions on resale or other
disposition;  and (f) compliance with federal or state securities laws and stock
exchange requirements.  Notwithstanding the foregoing, to the extent required by
Rule 16b-3,  Director  Options shall be  automatic,  and the amount and terms of
such Director Options shall be determined as provided in Section 14 of the Plan.

                                             *****

                                       13

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