Document:

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                                                                   Exhibit 10.50

NABI
--------------------------------------------------------------------------------
                                           5800 PARK OF COMMERCE BOULEVARD, N.W.
                                                            BOCA RATON, FL 33487

                          EFFECTIVE AS OF APRIL 1, 2001

Mr. Mark L. Smith
21839 Marigot Drive
Boca Raton, FL 33428

Dear Mark:

         The Board of Directors of Nabi (the "Corporation") and the Compensation
Committee (the "Committee") of the Board have determined that it is in the best
interests of the Corporation and its shareholders for the Corporation to agree,
as provided herein, to pay you termination compensation in the event you should
leave the employ of the Corporation under the circumstances described below.

         The Board and the Committee recognize that the continuing possibility
of a sale or change of control of the Corporation is unsettling to you and other
key employees of the Corporation. Therefore, these arrangements are being made
to help assure a continuing dedication by you to your duties to the Corporation
by diminishing the inevitable distraction to you from the personal uncertainties
and risks created by a pending sale or change of control of the Corporation. In
particular, the Board and the Committee believe it important, should the
Corporation receive proposals from third parties with respect to its future, to
enable you, without being influenced by the uncertainties of your own situation,
to assess and advise the Board whether such proposals would be in the best
interests of the Corporation and its shareholders and to take such other action
regarding such proposals as the Board might determine to be appropriate,
including being available to assist in any transition should there be a sale or
change of control of the Corporation. The Board and the Committee also wish to
demonstrate to executives of the Corporation that the Corporation is concerned
with the welfare of its executives and intends to see that loyal executives are
treated fairly.

         1. In view of the foregoing and in further consideration of your
continued employment with the Corporation, the Corporation will pay you as
termination compensation a lump sum amount, determined as provided below, in the
event that (a) within six months after a Change of Control of the Corporation
you terminate your employment with the Corporation for Good Reason, (b) within
twelve months after a Change of Control of the Corporation your employment with
the Corporation is terminated by the Corporation for any reason, or (c) within
the period beginning on the sixth monthly anniversary of a Change of Control of
the Corporation and ending on the twelfth monthly anniversary thereof, you
terminate your employment with the Corporation for any reason (including,
without limitation, death or disability). The lump sum compensation so payable
(hereinafter referred to as the "Lump Sum Amount") shall be an amount equal to
one and one-half times the sum of (a) the higher of (i) your current annual base
salary or (ii) your base salary immediately prior to the Change of

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Control plus (b) your average Bonuses for the three most recently-ended fiscal
years prior to the Change of Control. The Lump Sum Amount shall be paid to you
within five days after the date of termination of your employment (hereinafter
referred to as the "Termination Date").

         2. In addition, in the event your employment with the Corporation
terminates under circumstances entitling you to receive the Lump Sum Amount:

                  (a) Any compensation and other amounts previously deferred by
         you, together with accrued interest thereon, if any, to which you are
         entitled, and any accrued vacation pay and accrued paid leave bank
         amounts not yet paid by the Corporation, shall be paid to you within
         five days of such termination.

                  (b) All other amounts accrued or earned by you through the
         date of such termination and amounts otherwise owing under the
         Corporation's plans and policies shall be paid to you within five days
         of such termination.

                  (c) The Corporation shall maintain in full force and effect,
         for the continued benefit of you and/or your family for eighteen months
         after the Termination Date, all employee welfare benefit plans and any
         other employee benefit programs or arrangements (including, without
         limitation, medical and dental insurance plans, disability and life
         insurance plans and car allowance programs) in which you were entitled
         to participate immediately prior to the Change of Control, provided
         that your continued participation is possible under the general terms
         and provisions of such plans and programs. In the event that your
         participation in any such plan or program is barred, the Corporation
         shall arrange to provide you with benefits substantially similar to
         those which you are entitled to receive under such plans and programs.

                  (d) All outstanding stock options which you hold shall vest
         immediately upon a Change of Control and shall be exercisable for (i)
         the remainder of the option term(s) or (ii) a period of five years from
         the Termination Date, whichever is shorter.

                  (e) The Corporation shall pay up to $25,000 for outplacement
         services provided to you by an organization selected by you.

                  (f) You shall not be required to mitigate the amount of any
         payment provided for in this Agreement by seeking other employment or
         otherwise, nor shall the amount of any payment provided for in this
         Agreement be reduced by any compensation earned by you as the result of
         employment by another employer after the Termination Date, or
         otherwise. The Corporation's obligation to make the payments provided
         for in this Agreement and otherwise to perform its obligations
         hereunder shall not be affected by any set-off, counterclaim,
         recoupment, defense or other claim, right or action which it may have
         against you or others.

                  3. Any termination by you for Good Reason shall be
communicated by a written notice given within 120 days of your having actual
notice of the events giving rise to a right to terminate for Good Reason and
which (i) sets forth in reasonable detail the facts and

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circumstances claimed to provide a basis for termination for Good Reason and
(ii), if the Termination Date is other than the date of receipt of such notice,
specifies the Termination Date (which date shall not be more than 15 days after
the giving of such notice). Your failure to set forth in the notice of
termination any fact or circumstance which contributes to a showing of Good
Reason shall not waive any right of yours hereunder or preclude you from
asserting such fact or circumstance in enforcing your rights hereunder.

         4.  For purposes of this Agreement:

                  (a) "Bonus" means bonus or incentive compensation paid or
         payable by the Corporation to you pursuant to plans which the
         Corporation now maintains or has maintained including, but not limited
         to, signing bonuses. If your Bonus for a fiscal year has been pro rated
         because you were not employed by the Corporation for the entire fiscal
         year, the pro ration shall be ignored and you shall be deemed to have
         received the entire Bonus for the year.

                  (b) "Exchange Act" means the Securities Exchange Act of 1934,
         as amended.

                  (c) A "Change of Control" shall be deemed to have taken place
         if (i) any "person" (as such term is used in Sections 13(d) and
         14(d)(2) of the Exchange Act) is or becomes the beneficial owner
         (within the meaning of Rule 13d-3 promulgated under the Exchange Act),
         directly or indirectly, of securities of the Corporation representing
         25% or more of the combined voting power of the Corporation's then
         outstanding securities; (ii) the shareholders of the Corporation shall
         have approved (A) a reorganization, merger or consolidation, in each
         case, with respect to which persons who were shareholders of the
         Corporation immediately prior to such reorganization, merger or
         consolidation do not, immediately thereafter, own more than 50% of the
         combined voting power entitled to vote generally in the election of
         directors of the reorganized, merged or consolidated company's then
         outstanding voting securities or (B) a liquidation or dissolution of
         the Corporation; or (iii) as the result of a tender offer, exchange
         offer, merger, consolidation, sale of assets or contested solicitation
         of proxies or any combination of the foregoing transactions (a
         "Transaction"), the persons who were directors of the Corporation
         immediately before the Transaction shall cease to constitute a majority
         of the Board of Directors of the Corporation or of any parent of or
         successor to the Corporation immediately after the Transaction occurs.

                  (d) "Good Reason" means:

                           (i) The assignment to you of any duties inconsistent
                  in any material adverse respect with your position (including
                  status, offices, titles and reporting requirements),
                  authority, duties or responsibilities as in effect on the date
                  of the Change of Control, or any other action by the
                  Corporation which results in a diminution in such position,
                  authority, duties or responsibilities, excluding for this
                  purpose an isolated, insubstantial and inadvertent action not
                  taken in bad faith and which is remedied by the Corporation
                  promptly after receipt of notice from you;

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                           (ii) Any reduction of your base salary or the failure
                  by the Corporation to provide you with an incentive
                  compensation program, welfare benefits, retirement benefits
                  and other benefits which in the aggregate are no less
                  favorable than the benefits to which you were entitled prior
                  to the Change of Control;

                           (iii) The Corporation's requiring you to be based at
                  any office or location more than 15 miles from that location
                  at which you are employed on the date of the Change of
                  Control, except for travel reasonably required in the
                  performance of your responsibilities;

                           (iv) Any action taken or suffered by the Corporation
                  as of or following the Change of Control (such as, without
                  limitation, transfer or encumbrance of assets or incurring of
                  indebtedness) which materially impairs the ability of the
                  Corporation to make any payments due or which may become due
                  to you under this Agreement; or

                           (v) any failure by the Corporation to obtain the
                  assumption and agreement to perform this Agreement by a
                  successor as contemplated by Section 10.

         5.(a) Anything in this Agreement to the contrary notwithstanding, in
the event it shall be determined that any payment or distribution by the
Corporation to you or for your benefit, whether paid or payable or distributed
or distributable pursuant to the terms of this Agreement or otherwise (a
"Payment"), would be subject to the excise tax imposed by Section 4999 of the
Internal Revenue Code of 1986, as amended (the "Code") or any interest or
penalties with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then you shall be entitled to receive an additional payment (a
"Gross-Up Payment") in an amount such that after payment by you of all taxes
(including any interest or penalties imposed with respect to such taxes),
including any Excise Tax, imposed upon the Gross-Up Payment, you retain an
amount of the Gross-Up Payment equal to the Excise Tax imposed upon the
Payments.

         (b) Subject to the provisions of Section 5(c), all determinations
required to be made under this Section 5, including whether a Gross-Up Payment
is required and the amount of such Gross-Up Payment, shall be made by Ernst &
Young (the "Accounting Firm") which shall provide detailed supporting
calculations both to the Corporation and you within 15 business days of the date
your employment with the Corporation terminates, or such earlier time as is
requested by the Corporation. If the Accounting Firm determines that no Excise
Tax is payable to you, it shall furnish you with an opinion that you have
substantial authority not to report any Excise Tax on your federal income tax
return. Any determination by the Accounting Firm shall be binding upon the
Corporation and you. As a result of the uncertainty in the application of
Section 4999 of the Code at the time of the initial determination by the
Accounting Firm hereunder, it is possible that Gross-Up Payments which will not
have been made by the Corporation should have been made ("Underpayment"),
consistent with the calculations required to be made hereunder. In the event
that the Corporation exhausts its remedies

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pursuant to Section 5(c) and you thereafter are required to make a payment of
any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid
by the Corporation to you or for your benefit.

         (c) You shall notify the Corporation in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the
Corporation of the Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than ten business days after you know of such claim and
shall apprise the Corporation of the nature of such claim and the date on which
such claim is requested to be paid. You shall not pay such claim prior to the
expiration of the thirty-day period following the date on which you give such
notice to the Corporation (or such shorter period ending on the date that any
payment of taxes with respect to such claim is due). If the Corporation notifies
you in writing prior to the expiration of such period that it desires to contest
such claim, you shall:

                  (i) give the Corporation any information reasonably requested
         by the Corporation relating to such a claim,

                  (ii) take such action in connection with contesting such claim
         as the Corporation shall reasonably request in writing from time to
         time, including, without limitation, accepting legal representation
         with regard to such claim by an attorney reasonably selected by the
         Corporation,

                  (iii) cooperate with the Corporation in good faith in order
         effectively to contest such claim, and

                  (iv) permit the Corporation to participate in any proceedings
         relating to such claim;

provided, however, that the Corporation shall bear and pay directly all costs
and expenses (including additional interest and penalties) incurred in
connection with such contest and shall indemnify and hold you harmless, on an
after-tax basis, for an Excise Tax or income tax, including interest and
penalties with respect thereto, imposed as a result of such representation and
payment of costs and expenses. Without limitation of the foregoing provisions of
this Section 5(c), the Corporation shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals, proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct you to pay the tax claimed and sue for a refund or contest the claim in
any permissible manner, and you agree to prosecute such contest to a
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Corporation shall
determine; provided, however, that if the Corporation directs you to pay such
claim and sue for a refund, the Corporation shall advance the amount of such
payment to you, on an interest-free basis and shall indemnify and hold you
harmless, on an after-tax basis, from any Excise Tax or income tax, including
interest or penalties with respect thereto, imposed with respect to such advance
or with respect to any imputed income with respect to such advance; and further
provided that any extension of the statute of limitations related to payment of
taxes for your taxable year with respect to which such contested amount is
claimed to be due

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is limited solely to such contested amount. Furthermore, the Corporation's
control of the contest shall be limited to issues with respect to which a
Gross-Up Payment would be payable hereunder and you shall be entitled to settle
or contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

         (d) If, after the receipt by you of an amount advanced by the
Corporation pursuant to Section 5(c), you become entitled to receive any refund
with respect to such claim, you shall (subject to the Corporation's complying
with the requirements of Section 5(c)) promptly pay to the Corporation the
amount of such refund (together with any interest paid or credited thereon after
taxes applicable thereto). If, after the receipt by you of an amount advanced by
the Corporation pursuant to Section 5(c), a determination is made that you shall
not be entitled to any refund with respect to such claim and the Corporation
does not notify you in writing of its intent to contest such denial of refund
prior to the expiration of thirty days after such determination, then such
advance shall be forgiven and shall not be required to be repaid and the amount
of such advance shall offset, to the extent thereof, the amount of Gross-Up
Payment required to be paid.

         6. Anything in this Agreement to the contrary notwithstanding, if your
employment with the Corporation is terminated prior to the date on which a
Change of Control occurs, and it is reasonably demonstrated by you that such
termination (a) was at the request of a third party who has taken steps
reasonably calculated to effect a Change of Control or (b) otherwise arose in
connection with or in anticipation of a Change of Control, then for all purposes
of this Agreement, a Change of Control shall be deemed to have occurred the date
immediately prior to the date of such termination.

         7. This Agreement shall be binding upon and inure to the benefit of
you, your estate and the Corporation and any successor or assign of the
Corporation, but neither this Agreement nor any rights arising hereunder may be
assigned or pledged by you. If you should die while any amount would still be
payable to you hereunder if you had continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to your devisee, legatee, or other designee or, if there by no such
designee, to your estate.

         8. For purposes of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have
been duly given when delivered or mailed by United States registered mail,
return receipt requested, postage prepaid, addressed, in your case, to the
address set forth on the first page of this Agreement and, in the Corporation's
case, to the address of its principal office (all notices to the Corporation to
be directed to the attention of the President of the Corporation with a copy to
the Secretary of the Corporation) or to such other address as either party may
have furnished to the other in writing in accordance herewith, except that
notices of change of address shall be effective only upon receipt.

         9. No provisions of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing
signed by you and such officer as may be specifically designated by the Board of
Directors of the Corporation. No waiver by either party hereto at any time of
any breach by the other party hereto of, or compliance with,

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any condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the time or at any prior or subsequent time. No agreements or representations,
oral or otherwise, express or implied, with respect to the subject matter hereof
have been made by either party which are not set forth expressly in this
Agreement. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of Florida without regard
to principles of conflicts of laws.

         10. The Corporation will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Corporation to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Corporation would be required to perform it if no such
succession had taken place. As used in this Agreement, "Corporation" shall mean
the Corporation as hereinbefore defined and any successor to its business and/or
assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

         11. Nothing in this Agreement shall prevent or limit your continuing or
future participation in any benefit, bonus, incentive or other plan or program
provided by the Corporation and for which you may qualify, nor shall anything
herein limit or otherwise prejudice such rights as you may have under any other
agreements with the Corporation. Amounts which are vested benefits or which you
are otherwise entitled to receive under any plan or program of the Corporation
at or subsequent to any Change of Control shall be payable in accordance with
such plan or program. To the extent the terms of any other agreements you may
have with the Corporation are inconsistent with this Agreement, the terms of
this Agreement shall control.

         12. If you assert any claim in any contest (whether initiated by you or
by the Corporation) as to the validity, enforceability or interpretation of any
provision of this Agreement, the Corporation shall pay your legal expenses (or
cause such expenses to be paid), including, without limitation, your reasonable
attorneys' fees, on a quarterly basis, upon presentation of proof of such
expenses in a form reasonably acceptable to the Corporation, provided that you
shall reimburse the Corporation for such amounts, plus simple interest thereon
at the 90-day United States Treasury Bill rate as in effect from time to time,
compounded annually, if a court of competent jurisdiction shall find that you
did not have a good faith and reasonable basis to believe that you would prevail
as to at least one material issue presented to such court.

         13. The invalidity or unenforceability of any provisions of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement, which shall remain in full force and effect.

         14. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

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         If you are in agreement with the foregoing, please so indicate by
signing and returning to the Corporation the enclosed copy of this letter,
whereupon this letter shall constitute a binding agreement under seal between
you and the Corporation.

                                       Very truly yours,

                                       NABI

                                       By /s/ THOMAS H. McLAIN
                                          --------------------------------------
                                          Name: Thomas H. McLain
                                          Title: Executive Vice President and
                                                 Chief Operating Officer

Agreed:

/s/ MARK L. SMITH
----------------------------
Name: Mark L. Smith

                                       8Exhibit 10.01

                           GUMTECH INTERNATIONAL, INC.
                          2001 LONG-TERM INCENTIVE PLAN
                    (AS AMENDED AND RESTATED APRIL 16, 2002)

ARTICLE 1 PURPOSE

     1.1 GENERAL. The purpose of the Gumtech International,  Inc. 2001 Long-Term
Incentive Plan (the "Plan") is to promote the success, and enhance the value, of
Gumtech International, Inc. (the "Company") by linking the personal interests of
its key employees,  non-employee  directors,  scientific advisory board members,
and consultants of the Company to those of Company stockholders and by providing
such  individuals  with an incentive  for  outstanding  performance  in order to
generate  superior  returns to  shareholders  of the  Company.  The Company also
intends that the Plan will provide it with the flexibility to motivate, attract,
and retain the services of these individuals upon whose judgment,  interest, and
special  effort the  successful  conduct of the  Company's  operation is largely
dependent.

ARTICLE 2 EFFECTIVE AND EXPIRATION DATES

     2.1 EFFECTIVE  DATE.  The Plan is effective as of date the Plan is approved
by the Company's shareholders (the "Effective Date").

     2.2  EXPIRATION  DATE. The Plan will expire on, and no Award may be granted
under the Plan after the tenth anniversary of the Effective Date.

ARTICLE 3 DEFINITIONS AND CONSTRUCTION.

     3.1  DEFINITIONS.  When a word or  phrase  appears  in this  Plan  with the
initial letter capitalized, and the word or phrase does not commence a sentence,
the word or phrase will  generally  be given the meaning  ascribed to it in this
Section or in Sections 1.1 or 2.1 unless a clearly different meaning is required
by the  context.  The  following  words  and  phrases  will  have the  following
meanings:

          (a) "Award"  means any Option,  Restricted  Stock  Award,  Performance
Share Award or Performance-Based Award granted to a Participant under the Plan.

          (b) "Award Agreement" means any written agreement,  contract, or other
instrument or document evidencing an Award.

          (c) "Board" means the Board of Directors of the Company.

          (d) "Change of Control"  means the  occurrence of any of the following
events: (i) any sale, lease,  exchange, or other transfer (in one transaction or
a series of related  transactions) of all or substantially  all of the assets of
the Company to any person or group of related  persons  for  purposes of Section
13(d) of the Exchange Act (a "Group"),  together  with any  affiliates  thereof;
(ii) the  approval by the holders of Stock and the  consummation  of any plan or
proposal for the liquidation or dissolution of the Company;  (iii) any person or
Group  becomes  the  beneficial  owner,   directly  or  indirectly,   of  shares
representing  more than 50% of the  aggregate  voting  power of the  issued  and
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outstanding  stock  entitled to vote in the election of  directors  (the "Voting
Stock") of the Company and such person or Group has the power and  authority  to
vote such  shares;  (iv) the  replacement  of a  majority  of the  Board  over a
two-year  period from the individual  directors who constituted the Board at the
beginning of such period,  and such  replacement is not approved by a vote of at
least a majority  of the Board  then  still in office  who were  members of such
Board at the beginning of such period;  (v) any person or Group acquires  shares
of Voting  Stock of the Company such that such person or Group has the power and
authority  to elect a majority of the members of the Board of  Directors  of the
Company;  or (vi) the  consummation of a merger or  consolidation of the Company
with  another  entity in which  holders  of the Stock  immediately  prior to the
consummation  of the  transaction  hold,  directly  or  indirectly,  immediately
following the consummation of the transaction,  50% or less of the common equity
interest in the surviving corporation in such transaction.

          (e) "Code" means the Internal Revenue Code of 1986, as amended.

          (f) "Committee"  means the committee of the Board described in Article
4.

          (g) "Covered  Employee" means an Employee who is a "covered  employee"
within the meaning of Section 162(m) of the Code.

          (h)  "Disability"   means  a  period  of  disability  during  which  a
Participant  qualifies for permanent disability benefits under the Participant's
employer's  long-term  disability plan, or if a Participant does not participate
in such a plan, a period of disability  during which the Participant  would have
qualified  for  permanent   disability  benefits  under  such  a  plan  had  the
Participant  been a  participant  in  such a plan,  as  determined  in the  sole
discretion of the Committee. If the Participant's employer does not sponsor such
a plan, or discontinues to sponsor such a plan,  Disability shall mean permanent
and total disability for purposes of Social Security.

          (i)  "Exchange  Act" means the  Securities  Exchange  Act of 1934,  as
amended from time to time.

          (j) "Fair Market Value" means,  as of any given date,  the fair market
value of stock on a particular  date determined by such methods or procedures as
may be  established  from  time  to  time  by the  Committee.  Unless  otherwise
determined by the Committee,  the Fair Market Value of Stock as of any date will
be the closing price for the Stock as reported on the NASDAQ (or on any national
securities  exchange on which the Stock is then  listed) for that date or, if no
price is reported for that date,  the closing price on the next  preceding  date
for which such price was reported.

          (k) "Incentive  Stock Option" means an Option that is intended to meet
the requirements of Section 422 of the Code or any successor provision thereto.

          (l) "Non-Employee  Director" means a member of the Company's Board who
is not a  common-law  employee of the  Company.  For  purposes of Section 4.1, a
Non-Employee   Director  means  a  member  of  the  Board  who  qualifies  as  a
"Non-Employee  Director" as defined in Rule  16b-3(b)(3) of the Exchange Act, or
any successor definition adopted by the Board.

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          (m) "Non-Qualified  Stock Option" means an Option that is not intended
to be an Incentive Stock Option.

          (n) "Option" means a right granted to a Participant under Article 7 of
the Plan to purchase Stock at a specified  price during  specified time periods.
An Option  granted under Article 7 of the Plan may be either an Incentive  Stock
Option or a Non-Qualified Stock Option.

          (o) "Participant" means a person who, as a key employee,  Non-Employee
Director,  scientific advisory board member, or consultant of the Company or any
Subsidiary, has been granted an Award under the Plan.

          (p)  "Performance-Based  Awards" means the Restricted Stock Awards and
Performance  Share  Awards  granted to selected  Covered  Employees  pursuant to
Articles 8 and 9, but which are subject to the terms and conditions set forth in
Article   10.  All   Performance-Based   Awards  are   intended  to  qualify  as
"performance-based compensation" under Section 162(m) of the Code.

          (q)  "Performance  Criteria"  means the  criteria  that the  Committee
selects for purposes of establishing the Performance  Goal or Performance  Goals
for a Participant for a Performance  Period. The Performance  Criteria that will
be used to  establish  Performance  Goals  are  limited  to the  following:  net
operating income before taxes and extraordinary  charges against income; pre- or
after-tax net earnings, sales growth,  operating earnings,  operating cash flow,
return on net assets,  return on stockholders'  equity, return on assets, return
on capital, Stock price growth, stockholder returns, gross or net profit margin,
earnings per share, price per share of Stock, and market share, any of which may
be measured either in absolute terms or as compared to any incremental  increase
or as compared to results of a peer group.  The Committee will,  within the time
prescribed  by Section  162(m) of the Code,  define in an objective  fashion the
manner of  calculating  the  Performance  Criteria  it  selects  to use for such
Performance Period for such Participant.

          (r)  "Performance  Goals" means, for a Performance  Period,  the goals
established  in writing by the Committee for the  Performance  Period based upon
the  Performance  Criteria.  Depending  on  the  Performance  Criteria  used  to
establish such  Performance  Goals,  the  Performance  Goals may be expressed in
terms of overall Company performance or the performance of a division,  business
unit or an individual.  The Committee,  in its discretion,  may, within the time
prescribed by Section  162(m) of the Code,  adjust or modify the  calculation of
Performance  Goals for such Performance  Period in order to prevent the dilution
or  enlargement  of the  rights  of  Participants  (i) in the  event  of,  or in
anticipation  of, any  unusual or  extraordinary  corporate  item,  transaction,
event,  or development,  or (ii) in recognition  of, or in anticipation  of, any
other unusual or  nonrecurring  events  affecting the Company,  or the financial
statements of the Company,  or in response to, or in anticipation of, changes in
applicable laws, regulations, accounting principles, or business conditions.

          (s) "Performance  Period" means the one or more periods of time, which
may be of varying and overlapping  durations,  as the Committee may select, over
which the attainment of one or more  Performance  Goals will be measured for the
purpose  of  determining  a  Participant's  right  to,  and the  payment  of,  a
Performance-Based Award.

                                       -3-
<PAGE>
          (t)  "Performance  Share"  means  a  right  granted  to a  Participant
pursuant to Article 9, to receive cash,  Stock, or other Awards,  the payment of
which is contingent upon achieving certain  performance goals established by the
Committee.

          (u)  "Plan"  means the  Gumtech  International,  Inc.  2001  Long-Term
Incentive Plan, as amended from time to time.

          (v)  "Restricted  Stock  Award" means Stock  granted to a  Participant
under  Article  8 that  is  subject  to  certain  restrictions  and to  risk  of
forfeiture.

          (w)  "Stock"  means the  common  stock of the  Company  and such other
securities of the Company that may be substituted  for Stock pursuant to Article
11.

          (x)   "Subsidiary"   means  any   corporation  of  which  the  Company
beneficially  owns (directly or directly) a majority of the  outstanding  voting
stock or voting power.

ARTICLE 4 ADMINISTRATION

     4.1 COMMITTEE.  The Plan will be  administered  by the Board or a Committee
appointed  by, and which serves at the  discretion  of, the Board.  If the Board
appoints a Committee,  the Committee  will consist of at least two  individuals,
each of whom  qualifies  as (i) a  Non-Employee  Director,  and (ii) an "outside
director"  under Code  Section  162(m) and the  regulations  issued  thereunder.
Reference to the Committee will refer to the Board if the Board does not appoint
a Committee.

     4.2 ACTION BY THE COMMITTEE.  A majority of the Committee will constitute a
quorum.  The acts of a majority of the members present at any meeting at which a
quorum is present and acts approved in writing by a majority of the Committee in
lieu of a meeting will be deemed the acts of the  Committee.  Each member of the
Committee  is entitled  to, in good faith,  rely or act upon any report or other
information  furnished  to that member by any  officer or other  employee of the
Company  or  any  Subsidiary,   the  Company's   independent   certified  public
accountants,  or any executive  compensation  consultant  or other  professional
retained by the Company to assist in the administration of the Plan.

     4.3  AUTHORITY  OF  COMMITTEE.  The  Committee  has  the  exclusive  power,
authority, and discretion to:

          (a) Designate Participants to receive Awards;

          (b)  Determine  the type or  types of  Awards  to be  granted  to each
Participant;

          (c)  Determine  the number of Awards to be  granted  and the number of
shares of Stock to which an Award will relate;

          (d) Determine the terms and  conditions of any Award granted under the
Plan including but not limited to, the exercise price,  grant price, or purchase
price,  any  restrictions or limitations on the Award, any schedule for lapse of
forfeiture  restrictions or restrictions on the  exercisability of an Award, and
accelerations or waivers thereof,  based in each case on such  considerations as

                                       -4-
<PAGE>
the Committee in its sole discretion  determines;  provided,  however,  that the
Committee  will not have the authority to accelerate  the vesting,  or waive the
forfeiture, of any Performance-Based Awards;

          (e) Amend,  modify,  or  terminate  any  outstanding  Award,  with the
Participant's consent unless the Committee has the authority to amend, modify or
terminate an Award without the  Participant's  consent under any other provision
of the Plan.

          (f) Determine whether, to what extent, and under what circumstances an
Award may be settled in, or the exercise price of an Award may be paid in, cash,
Stock, other Awards, or other property, or an Award may be canceled,  forfeited,
or surrendered;

          (g)  Prescribe  the form of each  Award  Agreement,  which need not be
identical for each Participant;

          (h) Decide all other  matters that must be  determined  in  connection
with an Award;

          (i)  Establish,  adopt or revise any rules and  regulations  as it may
deem necessary or advisable to administer the Plan; and

          (j) Make all other decisions and  determinations  that may be required
under the Plan or as the  Committee  deems  necessary or advisable to administer
the Plan.

     4.4 DECISIONS  BINDING.  The  Committee's  interpretation  of the Plan, any
Awards  granted  under the Plan,  any Award  Agreement,  and all  decisions  and
determinations by the Committee with respect to the Plan are final, binding, and
conclusive on all parties.

ARTICLE 5 SHARES SUBJECT TO THE PLAN

     5.1 NUMBER OF SHARES.  Subject to adjustment  provided in Section 12.1, the
aggregate  number of shares of Stock  reserved and available for grant under the
Plan is 1,000,000.

     5.2 LAPSED  AWARDS.  To the extent that an Award  terminates,  expires,  or
lapses for any  reason,  any shares of Stock  subject to the Award will again be
available  for the grant of an Award under the Plan or other  Awards  settled in
cash will be available for the grant of an Award under the Plan.

     5.3 STOCK  DISTRIBUTED.  Any  Stock  distributed  pursuant  to an Award may
consist,  in whole or in part, of authorized and unissued Stock,  treasury Stock
or Stock purchased on the open market.

     5.4 LIMITATION ON NUMBER OF SHARES SUBJECT TO AWARDS.  Notwithstanding  any
provision in the Plan to the contrary,  and subject to the adjustment in Section
12.1,  the maximum  number of shares of Stock with respect to one or more Awards
that may be granted to any one Participant who is a Covered  Employee during the
Company's fiscal year is 300,000.

                                       -5-
<PAGE>
ARTICLE 6 ELIGIBILITY AND PARTICIPATION

     6.1 ELIGIBILITY.

          (a) GENERAL.  Persons eligible to participate in this Plan include all
key employees, and non-employee directors of, scientific advisory board members,
and  consultants  performing  services  for,  the  Company or a  Subsidiary,  as
determined by the Committee,  including such individuals who are also members of
the Board.

          (b) FOREIGN  PARTICIPANTS.  In order to assure the viability of Awards
granted to Participants employed in foreign countries, the Committee may provide
for  such  special  terms  as  it  may  consider  necessary  or  appropriate  to
accommodate  differences  in local law,  tax policy,  or custom.  Moreover,  the
Committee  may approve such  supplements  to, or  amendments,  restatements,  or
alternative versions of the Plan as it may consider necessary or appropriate for
such purposes without affecting the terms of the Plan as in effect for any other
purpose; provided, however, that no such supplements,  amendments, restatements,
or  alternative  versions will increase the number of shares of Stock  available
under Section 5.1 of the Plan.

          (c) ACTUAL  PARTICIPATION.  Subject to the provisions of the Plan, the
Committee  may, from time to time,  select from among all eligible  individuals,
those to whom Awards will be granted and will determine the nature and amount of
each Award.  No individual will have any right to be granted an Award under this
Plan.

ARTICLE 7 STOCK OPTIONS

     7.1 GENERAL.  The Committee is authorized to grant Options to  Participants
on the following terms and conditions:

          (a) EXERCISE  PRICE.  The  exercise  price per share of Stock under an
Option will be determined by the Committee and set forth in the Award Agreement;
provided,  however,  that the exercise price for any Option may not be less than
the Fair Market Value as of the date of grant.

          (b) TIME AND CONDITIONS OF EXERCISE.  The Committee will determine the
time or times  at which an  Option  may be  exercised  in whole or in part.  The
Committee may also determine the performance or other  conditions,  if any, that
must be satisfied before all or part of an Option may be exercised.

          (c)  LAPSE OF  OPTION.  An  Option  will  lapse  under  the  following
circumstances:

               (1) The Option  will lapse ten years from the date it is granted,
unless an earlier time is set in the Award Agreement;

               (2) The Option will lapse upon  termination of employment for any
reason other than the  Participant's  death or Disability,  unless the Committee
(at the time of grant or thereafter)  determines in its discretion to extend the
exercise period for a period of time after the Participant terminates employment
(not to exceed the Option's  expiration date). To the extent that any portion of

                                       -6-
<PAGE>
an  Incentive  Stock  Option is  exercised  more than 90 days after the date the
Participant ceases to be an employee of the Company for reason (other than death
or Disability),  the exercise of such portion will be considered the exercise of
a Non-Qualified Stock Option; and

               (3)  If the  Participant  terminates  employment  on  account  of
Disability  or death before the Option  lapses  pursuant to paragraph (1) or (2)
above, the Option will lapse on the earlier of (i) the Option's expiration date,
or (ii) three  years after the date the  Participant  terminates  employment  on
account of Disability or death. Upon the Participant's  Disability or death, any
Options exercisable at the Participant's Disability or death may be exercised by
the  Participant's  legal  representative or  representatives,  by the person or
persons entitled to do so under the Participant's  last will and testament,  or,
if the Participant fails to make testamentary  disposition or dies intestate, by
the person or persons  entitled to receive the Option under the applicable  laws
of descent and  distribution.  To the extent  that any  portion of an  Incentive
Stock  Option is exercised  more than 12 months  after the date the  Participant
ceases to be an employee of the Company on account of  Disability,  the exercise
of such portion will be considered the exercise of a Non-Qualified Stock Option.

          (d) PAYMENT.  The  Committee  will  determine the methods by which the
exercise price of an Option may be paid, the form of payment, including, without
limitation,  cash,  shares of Stock that has been held by the Participant for at
least six months  (through actual tender or by  attestation),  or other property
(including broker-assisted "cashless exercise" arrangements), and the methods by
which  shares  of  Stock  will be  delivered  or  deemed  to be  delivered  to a
Participant.

          (e)  EVIDENCE OF GRANT.  All  Options  will be  evidenced  by an Award
Agreement  between the Company and the  Participant.  The Award  Agreement  will
include such additional provisions as may be specified by the Committee.

     7.2 INCENTIVE  STOCK OPTIONS.  Incentive Stock Options will be granted only
to employees and the terms of any Incentive Stock Options granted under the Plan
must comply with the following additional rules.

          (a) EXERCISE PRICE.  The exercise price per share of Stock will be set
by the  Committee,  provided  that the exercise  price for any  Incentive  Stock
Option may not be less than the Fair Market Value as of the date of the grant.

          (b)  EXERCISE.  In  no  event,  may  any  Incentive  Stock  Option  be
exercisable for more than ten years from the date of its grant.

          (c)  INDIVIDUAL  DOLLAR  LIMITATION.  The aggregate  Fair Market Value
(determined as of the time an Award is made) of all shares of Stock with respect
to which Incentive  Stock Options are first  exercisable by a Participant in any
calendar year may not exceed  $100,000.00 or such other limitation as imposed by
Section 422(d) of the Code, or any successor  provision.  To the extent that for
any reason  Incentive  Stock Options are first  exercisable  by a Participant in
excess of such  limitation,  the excess will be considered  Non-Qualified  Stock
Options.

                                       -7-
<PAGE>
          (d) TEN PERCENT  OWNERS.  An Incentive Stock Option will be granted to
any individual  who, at the date of grant,  owns Stock  possessing more than ten
percent  of the  total  combined  voting  power of all  classes  of Stock of the
Company  only if such Option is granted at a price that is not less than 110% of
Fair Market Value on the date of grant and the Option is exercisable for no more
than five years from the date of grant.

          (e) EXPIRATION OF INCENTIVE  STOCK  OPTIONS.  No Award of an Incentive
Stock Option may be made  pursuant to this Plan after the tenth  anniversary  of
the Effective Date.

          (f) RIGHT TO EXERCISE.  During a Participant's  lifetime, an Incentive
Stock Option may be exercised only by the Participant.

ARTICLE 8 RESTRICTED STOCK AWARDS

     8.1 GRANT OF RESTRICTED  STOCK.  The Committee is authorized to make Awards
of Restricted  Stock to  Participants  in such amounts and subject to such terms
and  conditions  as may be selected by the  Committee.  All Awards of Restricted
Stock will be evidenced by a Restricted Stock Award Agreement.

     8.2 ISSUANCE  AND  RESTRICTIONS.  Restricted  Stock will be subject to such
restrictions  on  transferability  and other  restrictions  as the Committee may
impose  (including,  without  limitation,  limitations  on  the  right  to  vote
Restricted  Stock or the right to receive  dividends on the  Restricted  Stock).
These  restrictions may lapse separately or in combination at such times,  under
such  circumstances,  in  such  installments,  or  otherwise,  as the  Committee
determines at the time of the grant of the Award or thereafter.

     8.3 FORFEITURE. Except as otherwise determined by the Committee at the time
of the grant of the Award or thereafter,  upon termination of employment  during
the  applicable   restriction  period  for  any  reason  (other  than  death  or
Disability),  Restricted Stock that is at that time subject to restrictions will
be  forfeited,  provided,  however,  that  the  Committee  may  provide  in  any
Restricted  Stock Award  Agreement that  restrictions  or forfeiture  conditions
relating to Restricted  Stock will be waived in whole or in part in the event of
terminations  resulting  from specified  causes,  and the Committee may in other
cases waive in whole or in part restrictions or forfeiture  conditions  relating
to Restricted Stock.

     8.4 CERTIFICATES FOR RESTRICTED  STOCK.  Restricted Stock granted under the
Plan may be  evidenced  in such  manner  as the  Committee  will  determine.  If
certificates  representing shares of Restricted Stock are registered in the name
of the Participant,  certificates  must bear an appropriate  legend referring to
the terms, conditions, and restrictions applicable to such Restricted Stock, and
the  Company  may,  at  its  discretion,   retain  physical  possession  of  the
certificate until such time as all applicable restrictions lapse.

ARTICLE 9 PERFORMANCE SHARES

     9.1 GRANT OF  PERFORMANCE  SHARES.  The  Committee is  authorized  to grant
Performance  Shares  to  Participants  on such  terms and  conditions  as may be
selected by the Committee.  The Committee shall have the complete  discretion to
determine the number of  Performance  Shares  granted to each  Participant.  All
Awards of Performance Shares shall be evidenced by an Award Agreement.

                                       -8-
<PAGE>
     9.2 RIGHT TO PAYMENT.  A grant of Performance  Shares gives the Participant
rights,  valued as determined by the  Committee,  and payable to, or exercisable
by, the Participant to whom the Performance  Shares are granted,  in whole or in
part, as the Committee  shall  establish at grant or thereafter.  Subject to the
terms of the Plan, the Committee shall set performance  goals and other terms or
conditions  to  payment  of the  Performance  Shares  in its  discretion  which,
depending  on the extent to which they are met,  will  determine  the number and
value of Performance Shares that will be paid to the Participant.

     9.3 OTHER TERMS. Performance Shares may be payable in cash, Stock, or other
property,  and have  such  other  terms  and  conditions  as  determined  by the
Committee and reflected in a written Performance Share Award Agreement.

ARTICLE 10 PERFORMANCE-BASED AWARDS

     10.1  PURPOSE.  The purpose of this Article 10 is to provide the  Committee
the  ability  to  qualify  the  Restricted  Stock  Awards  under  Article  8 and
Performance  Shares under Article 9 as  "performance-based  compensation"  under
Section  162(m) of the Code. If the  Committee,  in its  discretion,  decides to
grant a  Performance-Based  Award to a Covered Employee,  the provisions of this
Article 10 will control over any contrary provision  contained in Articles 8 and
9.

     10.2  APPLICABILITY.  This  Article  10 will  apply  only to those  Covered
Employees  selected by the Committee to receive  Performance-Based  Awards.  The
Committee may, in its discretion,  grant  Restricted Stock Awards or Performance
Share Awards to Covered  Employees that do not satisfy the  requirements of this
Article  10.  The  designation  of a Covered  Employee  as a  Participant  for a
Performance  Period will not in any manner entitle the Participant to receive an
Award  for  the  period.  Moreover,  designation  of  a  Covered  Employee  as a
Participant for a particular  Performance Period will not require designation of
such Covered Employee as a Participant in any subsequent  Performance Period and
designation  of  one  Covered   Employee  as  a  Participant  will  not  require
designation of any other Covered Employees as a Participant in such period or in
any other period.

     10.3  DISCRETION  OF COMMITTEE  WITH RESPECT TO  PERFORMANCE  AWARDS.  With
regard  to a  particular  Performance  Period,  the  Committee  will  have  full
discretion  to  select  the  length  of such  Performance  Period,  the  type of
Performance-Based  Awards to be issued, the kind and/or level of the Performance
Goal, and whether the Performance Goal is to apply to the Company,  a Subsidiary
or any division or business unit thereof.

     10.4  PAYMENT OF  PERFORMANCE  AWARDS.  Unless  otherwise  provided  in the
relevant  Award  Agreement,  a Participant  must be employed by the Company or a
Subsidiary  on the last  day of the  Performance  Period  to be  eligible  for a
Performance Award for such Performance Period.  Furthermore,  a Participant will
be eligible to receive payment under a Performance-Based Award for a Performance
Period  only  if  the  Performance  Goals  for  such  period  are  achieved.  In

                                       -9-
<PAGE>
determining  the  actual  size of an  individual  Performance-Based  Award,  the
Committee  may reduce or  eliminate  the amount of the  Performance-Based  Award
earned for the Performance Period, if in its sole and absolute discretion,  such
reduction or elimination is appropriate.

     10.5 MAXIMUM AWARD PAYABLE. The maximum  Performance-Based Award payable to
any one Participant under the Plan for a Performance Period is 300,000 shares of
Stock, or in the event the Performance-Based Award is paid in cash, such maximum
Performance-Based  Award will be determined by  multiplying  300,000 by the Fair
Market   Value  of  one  share  of  Stock  as  of  the  date  of  grant  of  the
Performance-Based Award.

ARTICLE 11 PROVISIONS APPLICABLE TO AWARDS

     11.1 STAND-ALONE,  TANDEM, AND SUBSTITUTE AWARDS.  Awards granted under the
Plan may, in the  discretion  of the  Committee,  be granted  either alone or in
addition to, in tandem with,  or in  substitution  for, any other Award  granted
under the Plan. If an Award is granted in  substitution  for another Award,  the
Committee may require the surrender of such other Award in  consideration of the
grant of the new Award.  Awards  granted in  addition to or in tandem with other
Awards may be granted either at the same time as or at a different time from the
grant of such other Awards.

     11.2 EXCHANGE  PROVISIONS.  The Committee may at any time offer to exchange
or buy out any previously granted Award for a payment in cash, Stock, or another
Award (subject to Section 11.1), based on the terms and conditions the Committee
determines and communicates to the Participant at the time the offer is made.

     11.3  TERM OF  AWARD.  The term of each  Award  will be for the  period  as
determined  by the  Committee,  provided  that in no event  will the term of any
Incentive Stock Option exceed a period of ten years from the date of its grant.

     11.4 FORM OF PAYMENT FOR  AWARDS.  Subject to the terms of the Plan and any
applicable  law or Award  Agreement,  payments  or  transfers  to be made by the
Company or a Subsidiary on the grant or exercise of an Award may be made in such
forms as the  Committee  determines  at or after  the time of  grant,  including
without  limitation,  cash,  Stock that has been held by the  Participant for at
least six months, other Awards, or other property,  or any combination,  and may
be made in a single  payment  or  transfer,  in  installments,  or on a deferred
basis,  in each case  determined in accordance with rules adopted by, and at the
discretion of, the Committee.

     11.5 LIMITS ON TRANSFER. No right or interest of a Participant in any Award
may be pledged,  encumbered,  or  hypothecated to or in favor of any party other
than the Company or a Subsidiary, or will be subject to any lien, obligation, or
liability  of such  Participant  to any other  party other than the Company or a
Subsidiary.  Except as  otherwise  provided by the  Committee,  no Award will be
assignable or  transferable  by a Participant  other than by will or the laws of
descent and distribution.

     11.6 BENEFICIARIES. Notwithstanding Section 11.5, a Participant may, in the
manner  determined by the  Committee,  designate a  beneficiary  to exercise the
rights of the  Participant and to receive any  distribution  with respect to any

                                      -10-
<PAGE>
Award  upon the  Participant's  death.  A  beneficiary,  legal  guardian,  legal
representative, or other person claiming any rights under the Plan is subject to
all terms and conditions of the Plan and any Award  Agreement  applicable to the
Participant,  except  to the  extent  the Plan  and  Award  Agreement  otherwise
provide,  and to any additional  restrictions deemed necessary or appropriate by
the Committee. If the Participant is married and resides in a community property
state,  a  designation  of a person other than the  Participant's  spouse as his
beneficiary with respect to more than 50 percent of the  Participant's  interest
in  the  Award  will  not  be  effective  without  the  written  consent  of the
Participant's  spouse.  If no  beneficiary  has been  designated or survives the
Participant,  payment  will be made to the  person  entitled  thereto  under the
Participant's  will or the laws of  descent  and  distribution.  Subject  to the
foregoing, a beneficiary  designation may be changed or revoked by a Participant
at any time provided the change or revocation is filed with the Committee.

     11.7 STOCK  CERTIFICATES.  All Stock certificates  delivered under the Plan
are subject to any stop-transfer  orders and other restrictions as the Committee
deems  necessary or advisable to comply with Federal or state  securities  laws,
rules and  regulations  and the rules of any  national  securities  exchange  or
automated  quotation system on with the Stock is listed,  quoted, or traded. The
Committee may place legends on any Stock  certificate to reference  restrictions
applicable to the Stock.

     11.8 ACCELERATION UPON A CHANGE OF CONTROL.  If a Change of Control occurs,
unless  otherwise  provided  in  the  Award  Agreement,  the  Committee  in  its
discretion  may provide  that all  outstanding  Options,  and other Awards shall
become fully exercisable and all restrictions on outstanding Awards shall lapse.
To the extent that this provision  causes  Incentive Stock Options to exceed the
dollar  limitation  set forth in Section  7.2(c),  the excess  Options  shall be
deemed to be Non-Qualified  Stock Options.  Upon, or in anticipation of, such an
event, the Committee may cause every Award outstanding hereunder to terminate at
a  specific  time in the future  and shall  give each  Participant  the right to
exercise  Awards  during  a  period  of time as the  Committee,  in its sole and
absolute discretion, shall determine.

ARTICLE 12 CHANGES IN CAPITAL STRUCTURE

     12.1 GENERAL. In the event a stock dividend is declared upon the Stock, the
shares of Stock then  subject  to each  Award (and the number of shares  subject
thereto) will be increased  proportionately  without any change in the aggregate
purchase  price  therefor.  If the  Stock is  changed  into or  exchanged  for a
different number or class of shares of Stock or of another corporation,  whether
through reorganization, recapitalization, stock split-up, combination of shares,
merger or consolidation,  there will be substituted for each such share of Stock
then  subject  to each  Award the number and class of shares of Stock into which
each  outstanding  share of Stock is  exchanged,  all  without any change in the
aggregate purchase price for the shares then subject to each Award.

ARTICLE 13 AMENDMENT, MODIFICATION AND TERMINATION

     13.1  AMENDMENT,  MODIFICATION  AND  TERMINATION.  With the approval of the
Board, at any time and from time to time, the Committee may terminate,  amend or
modify the Plan; provided,  however,  that to the extent necessary and desirable
to comply with any  applicable  law,  regulation,  or stock  exchange  rule, the

                                      -11-
<PAGE>
Company will obtain shareholder  approval of any Plan amendment in such a manner
and to such a degree as required or as the Committee deems necessary.

     13.2 AWARDS PREVIOUSLY GRANTED. No termination,  amendment, or modification
of the Plan will  adversely  affect  in any  material  way any Award  previously
granted under the Plan without the written consent of the Participant.

ARTICLE 14 GENERAL PROVISIONS

     14.1 NO RIGHTS TO AWARDS.  No Participant,  employee,  or other person will
have any claim to be granted any Award  under the Plan,  and neither the Company
nor the  Committee  is  obligated to treat  Participants,  employees,  and other
persons uniformly.

     14.2 NO  STOCKHOLDERS  RIGHTS.  No Award gives the  Participant  any of the
rights of a stockholder  of the Company  unless and until shares of Stock are in
fact issued to such person in connection with such Award.

     14.3 WITHHOLDING. The Company or any Subsidiary will have the authority and
the right to deduct  or  withhold,  or  require  a  Participant  to remit to the
Company,  an amount  sufficient to satisfy  Federal,  state, and local income or
employment  taxes  required  by law to be withheld  with  respect to any taxable
event arising as a result of this Plan.

     14.4 NO RIGHT TO  EMPLOYMENT.  Nothing  in the Plan or any Award  Agreement
will  interfere  with or  limit  in any  way the  right  of the  Company  or any
Subsidiary to terminate  any  Participant's  employment at any time,  nor confer
upon any  Participant  any right to continue in the employ of the Company or any
Subsidiary.

     14.5  UNFUNDED  STATUS OF AWARDS.  The Plan is intended to be an "unfunded"
plan for incentive compensation.  With respect to any payments not yet made to a
Participant  pursuant to an Award,  nothing  contained  in the Plan or any Award
Agreement will give the  Participant any rights that are greater than those of a
general creditor of the Company or any Subsidiary.

     14.6  INDEMNIFICATION.  To the extent  allowable under applicable law, each
member of the Committee or of the Board will be indemnified and held harmless by
the Company from any loss, cost, liability,  or expense that may be imposed upon
or reasonably  incurred by such member in connection  with or resulting from any
claim, action, suit, or proceeding to which he or she may be a party or in which
he or she may be  involved  by reason of any  action or failure to act under the
Plan and against and from any and all amounts paid by him or her in satisfaction
of judgment in such action,  suit, or proceeding  against him or her provided he
or she gives the  Company  an  opportunity,  at its own  expense,  to handle and
defend the same  before he or she  undertakes  to handle and defend it on his or
her own behalf. The foregoing right of indemnification  will not be exclusive of
any other rights of  indemnification to which such persons may be entitled under
the  Company's  Articles of  Incorporation  or  By-Laws,  as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold them
harmless.

                                      -12-
<PAGE>
     14.7  RELATIONSHIP  TO OTHER  BENEFITS.  No payment  under the Plan will be
taken into account in determining  any benefits  under any pension,  retirement,
savings,  profit sharing, group insurance,  welfare or other benefit plan of the
Company or any Subsidiary.

     14.8 EXPENSES.  The expenses of administering  the Plan will be paid by the
Company and its Subsidiaries.

     14.9 TITLES AND  HEADINGS.  The titles and  headings of the Sections in the
Plan are for  convenience  of reference  only, and in the event of any conflict,
the text of the Plan, rather than such titles or headings, will control.

     14.10 FRACTIONAL  SHARES.  No fractional shares of stock will be issued and
the Committee will determine,  in its discretion,  whether cash will be given in
lieu of fractional  shares or whether such fractional  shares will be eliminated
by rounding up or down as appropriate.

     14.11 SECURITIES LAW COMPLIANCE.  With respect to any person who is, on the
relevant  date,  obligated to file reports under Section 16 of the Exchange Act,
transactions  under  this  Plan are  intended  to  comply  with  all  applicable
conditions of Rule 16b-3 or its successors under the Exchange Act. To the extent
any provision of the Plan or action by the Committee fails to so comply, it will
be void to the extent  permitted by law and voidable as deemed  advisable by the
Committee.

     14.12  GOVERNMENT AND OTHER  REGULATIONS.  The obligation of the Company to
make payment of awards in Stock or otherwise  will be subject to all  applicable
laws,  rules, and regulations,  and to such approvals by government  agencies as
may be required.  The Company will be under no obligation to register  under the
Securities Act of 1933, as amended (the "1933 Act"),  any of the shares of Stock
paid  under  the  Plan.  If the  shares  paid  under  the  Plan  may in  certain
circumstances  be exempt from  registration  under the 1933 Act, the Company may
restrict  the  transfer of such shares in such manner as it deems  advisable  to
ensure the availability of any such exemption.

     14.13 GOVERNING LAW. The Plan and all Award Agreements will be construed in
accordance with and governed by the laws of the State of Arizona.

                                      -13-

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