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                                                                   EXHIBIT 10.19

                       FLORISTS' TRANSWORLD DELIVERY, INC.

                           RESTRICTED SHARES AGREEMENT

       WHEREAS, Timothy Rasmussen (the "Grantee") is an employee of Florists'
Transworld Delivery, Inc., a Michigan corporation (the "Company"); and

       WHEREAS, the grant of the Restricted Shares (as defined below) has been
authorized by a resolution of the Board of Directors of the Company (the
"Board") that was duly adopted on June 12, 2000;

       NOW, THEREFORE, pursuant to this Agreement, the Company hereby awards to
the Grantee 75,000 shares of Class A Common Stock, par value $.01 par share
("Class A Common Stock"), of FTD.COM INC., a Delaware corporation and a
majority-owned subsidiary of the Company ("FTD.COM") (such 75,000 shares of
Class A Common Stock being hereinafter referred to as the "Restricted Shares"),
effective as of June 12, 2000 (the "Date of Grant"), and subject to the terms
and conditions of this Agreement. Such Restricted Shares are currently
beneficially owned by the Company as shares of Class B Common Stock, par value
$.01 per share ("Class B Common Stock"), of FTD.COM, which shares of Class B
Common Stock will automatically convert into shares of Class A Common Stock on a
one-for-one basis upon transfer to the Grantee by the Company.

       1.    AWARD OF SHARES. The Restricted Shares shall be transferred to the
Grantee by the Company, shall be fully paid and nonassessable and shall be
represented by a certificate or certificates issued in the name of the Grantee
and endorsed with an appropriate legend referring to the restrictions
hereinafter set forth.

       2.    RESTRICTIONS ON TRANSFER OF SHARES. The Restricted Shares may not
be sold, assigned, transferred, conveyed, pledged, exchanged or otherwise
encumbered or disposed of by the Grantee, except to the Company or FTD.COM,
until they have become nonforfeitable as provided in Section 3. Any purported
encumbrance or disposition in violation of the provisions of this Section 2
shall be void ab initio, and the other party to any such purported transaction
shall not obtain any rights to or interest in the Restricted Shares. As and when
permitted by this Agreement, the Company may in its sole discretion waive the
restrictions on transferability with respect to all or a portion of the
Restricted Shares.

       3.    VESTING OF SHARES. (a) The Restricted Shares shall become
nonforfeitable if the Grantee remains in the continuous employment of the
Company or any of its subsidiaries through (i) June 12, 2001, with respect to
25,000 of the Restricted Shares, (ii) June 12, 2002, with respect to 25,000 of
the Restricted Shares, and (iii) June 12, 2003, with respect to 25,000 of the
Restricted Shares.

       (b)   Notwithstanding the provisions of Section 3(a), (i) 75% of any
forfeitable Restricted Shares shall become nonforfeitable upon a Change in
Control of FTD.COM (as

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defined in Section 3(c) below) if such Change in Control occurs prior to the
second anniversary of the Date of Grant and (ii) 100% of any forfeitable
Restricted Shares shall become nonforfeitable upon a Change in Control of
FTD.COM if such Change in Control occurs following the second anniversary of the
Date of Grant and prior to the third anniversary of the Date of Grant.

       (c)   For purposes of this Agreement, "Change in Control" means if at any
time any of the following events shall have occurred: FTD.COM is merged or
consolidated or reorganized into or with another corporation or other legal
person, and as a result of such merger, consolidation or reorganization less
than a majority of the combined voting power of the then-outstanding securities
of such corporation or person immediately after such transaction are held in the
aggregate by the holders of securities entitled to vote generally in the
election of FTD.COM's Directors immediately prior to such transaction; provided,
however, that the Board of Directors of FTD.COM may determine in its sole
discretion that such transaction does not constitute a "Change in Control" at
any time prior to the consummation of such transaction unless (i) holders of
securities entitled to vote generally in the election of FTD.COM's Directors
immediately prior to the consummation of such transaction receive consideration
for their securities that consists solely of cash in connection with such
transaction; (ii) after giving effect to the consummation of such transaction,
(A) Perry Acquisition Partners, L.P. and its affiliates, (B) Bain Capital, Inc.
and its affiliates and (C) Fleet Private Equity Co. Inc. and its affiliates in
the aggregate own less than 25% of the shares of common stock of FTD Corporation
owned by such entities as of the date hereof or, if a tax-free spin off has
occurred, less than 25% of the Class A Common Stock that would have been
received by such entities if the spin off had occurred on the date hereof; or
(iii) individuals who constitute the Directors of FTD.COM immediately prior to
the consummation of such transaction cease for any reason to constitute at least
one-third of the board of directors of the surviving or resulting entity.

       4.    FORFEITURE OF SHARES. Except as and to the extent the Restricted
Shares have become nonforfeitable pursuant to Section 3, the Restricted Shares
shall be forfeited by the Grantee, if the Grantee ceases to be employed by the
Company or any of its subsidiaries prior to the third anniversary of the Date of
Grant, and the certificate(s) representing Restricted Shares so forfeited shall
be canceled.

       5.    CERTAIN SALES UPON TERMINATION OF EMPLOYMENT. (a) If the Grantee's
employment with the Company is terminated (i) by the Company for any reason
other than for Cause (as defined in Section 5(c) below), (ii) by the Grantee for
any reason or (iii) by reason of the Grantee's death or Disability, the Company
shall have the right to repurchase Restricted Shares held by the Grantee that
have theretofore been released from the restrictions set forth in Section 2 of
this Agreement at the Fair Market Value (as defined in Section 5(d) below)
thereof as of the effective date of such termination. If the Grantee's
employment with the Company is terminated by the Company for Cause, (x) the
Company shall have the right to repurchase Restricted Shares held by the Grantee
that have theretofore been released from the restrictions set forth in Section 2
of this Agreement at (1) the Fair Market Value thereof as of the effective date
of such termination or (2) the Grantee's cost of obtaining such shares,
whichever is lower, and (y) any profit realized from the sale of any Restricted
Shares that have theretofore been released from the restrictions set forth in
Section 2 of this Agreement shall inure to and be recoverable by the Company.
"Disability" shall mean as a result of the Grantee's incapacity due to physical
or

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mental illness (as determined in good faith by a physician acceptable to the
Company), the Grantee shall have been absent from full-time performance of his
duties with the Company for 135 consecutive days during any 12-month period.

       (b)   Provided that the rights described in Section 5(a) above have not
previously been triggered by termination of the Grantee's employment with the
Company, such rights shall terminate upon a Change in Control. The rights
specified in Section 5(a), once triggered, may be exercised at any time during
the 90-day period following the effective date of termination of the Grantee's
employment.

       (c)   For purposes of this Agreement, "Cause" means any of the following
events that the Company or the Board has determined, in good faith, has
occurred: (i) the Grantee's continual or deliberate neglect of the performance
of his material duties; (ii) the Grantee's failure to devote substantially all
of his working time to the business of the Company and its subsidiaries or
affiliated companies; (iii) the Grantee's engaging willfully in misconduct in
connection with the performance of any of his duties, including, without
limitation, the misappropriation of funds or securing or attempting to secure
personally any profit in connection with any transaction entered into on behalf
of the Company or its subsidiaries or affiliated companies; (iv) the Grantee's
willful breach of any confidentiality or nondisclosure agreements with the
Company or the Grantee's violation, in any material respect, of any code or
standard of behavior generally applicable to employees or executive employees of
the Company; (v) the Grantee's active disloyalty to the Company, including,
without limitation, willfully aiding a competitor or improperly disclosing
confidential information; or (vi) the Grantee's engaging in conduct that may
reasonably result in material injury to the reputation of the Company, including
conviction or entry of a plea of nolo contendre for a felony or any crime
involving fraud under Federal, state or local laws, embezzlement, bankruptcy,
insolvency or general assignment for the benefit of creditors.

       (d)   "Fair Market Value" shall mean:

             (i)   if the shares of Class A Common Stock are listed for trading
       on any national stock exchange or admitted for trading on the Nasdaq
       National Market or other principal national automated quotation system,
       the Fair Market Value per share of Class A Common Stock shall be the
       average of (i) the closing sale price per share of Class A Common Stock
       on such national stock exchange or (ii) the final reported bid side price
       per share of Class A Common Stock on such principal automated quotation
       system, in each case for the ten most recent days on which trades
       occurred immediately preceding the effective date of the termination of
       Grantee's employment; or

             (ii)   if the shares of Class A Common Stock are not listed for
       trading on any national stock exchange or admitted for trading on the
       Nasdaq National Market or other principal national automated quotation
       system, then the Fair Market Value per share of Class A Common Stock
       shall be determined in good faith by the Board, based upon, among other
       factors that the Board deems relevant, the financial performance and
       prospects of the Company in the light of market conditions generally.

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       6.    DIVIDEND, VOTING AND OTHER RIGHTS. (a) Except as otherwise provided
in this Agreement, from and after the Date of Grant, the Grantee shall have all
of the rights of a stockholder with respect to the Restricted Shares, including
the right to vote the Restricted Shares and receive any dividends that may be
paid thereon; provided, however, that any additional shares of Class A Common
Stock or other securities that the Grantee may become entitled to receive
pursuant to a stock dividend, stock split, recapitalization, combination of
shares, merger, consolidation, separation or reorganization or any other change
in the capital structure of FTD.COM shall be subject to the same risk of
forfeiture and restrictions on transfer as the forfeitable Restricted Shares in
respect of which they are issued or transferred and shall become Restricted
Shares for the purposes of this Agreement.

       (b)   Cash dividends on the Restricted Shares shall be sequestered by
FTD.COM from and after the Date of Grant until such time as any of such
Restricted Shares become nonforfeitable in accordance with Section 3, whereupon
such dividends shall be paid to the Grantee in cash to the extent such dividends
are attributable to Restricted Shares that have become nonforfeitable. To the
extent that Restricted Shares are forfeited pursuant to Section 4, all dividends
sequestered with respect to such Restricted Shares shall also be forfeited. No
interest shall be payable with respect to any such dividends.

       7.    RETENTION OF STOCK CERTIFICATE(S) BY THE COMPANY. The
certificate(s) representing the Restricted Shares shall be held in custody by
the Company or FTD.COM, together with a stock power endorsed in blank by the
Grantee with respect thereto, until such shares have become nonforfeitable in
accordance with Section 3.

       8.    COMPLIANCE WITH LAW. The Company shall make reasonable efforts to
comply with all applicable federal and state securities laws; provided, however,
notwithstanding any other provision of this Agreement, neither the Company nor
FTD.COM shall be obligated to issue or release from restrictions on transfer any
shares of Class A Common Stock pursuant to this Agreement if such issuance or
release would result in a violation of any such law.

       9.    WITHHOLDING TAXES. (a) If the Company or any of its subsidiaries
shall be required to withhold any federal, state, local or foreign tax in
connection with any issuance or vesting of shares of Class A Common Stock or
other securities pursuant to this Agreement, and the amounts available to the
Company or such subsidiary for such withholding are insufficient, the Grantee
shall pay the tax or make provisions that are satisfactory to the Company or
such subsidiary for the payment thereof. The Grantee may elect to satisfy all or
any part of any such withholding obligation by surrendering to the Company or
such subsidiary a portion of the Restricted Shares that become nonforfeitable
hereunder, and the shares of Class A Common Stock so surrendered by the Grantee
shall be credited against any such withholding obligation at the Market Value
per Share (as defined in Section 9(b) below) of such shares of Class A Common
Stock on the date of such surrender.

       (b)   For purposes of this Agreement, "Market Value per Share" means, as
of any particular date, (i) the closing sale price per share of Class A Common
Stock as reported on the principal exchange on which shares of Class A Common
Stock are then trading, if any, or, if applicable, the NASDAQ National Market or
other principal automated quotation system on which shares of Class A Common
Stock are quoted, on the Date of Grant, or if there are no sales

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on such day, on the next preceding trading day during which a sale occurred, or
(ii) if clause (i) does not apply, the Fair Market Value of the shares of Class
A Common Stock as determined by the Board of Directors of FTD.COM.

       10.   NO EMPLOYMENT CONTRACT. Nothing contained in this Agreement shall
confer upon the Grantee any right with respect to continuance of employment by
the Company or any of its subsidiaries or limit or affect in any manner the
right of the Company or any of its subsidiaries to terminate the employment or
adjust the compensation of the Grantee.

       11.   RELATION TO OTHER BENEFITS. Any economic or other benefit to the
Grantee under this Agreement shall not be taken into account in determining any
benefits to which the Grantee may be entitled under any profit-sharing,
retirement or other benefit or compensation plan maintained by the Company or
any of its subsidiaries and shall not affect the amount of any life insurance
coverage available to any beneficiary under any life insurance plan covering
employees of the Company or any of its subsidiaries.

       12.   SEVERABILITY. In the event that one or more of the provisions of
this Agreement shall be invalidated for any reason by a court of competent
jurisdiction, any provision so invalidated shall be deemed to be separable from
the other provisions hereof, and the remaining provisions hereof shall continue
to be valid and fully enforceable.

       13.   SUCCESSORS AND ASSIGNS. The provisions of this Agreement shall
inure to the benefit of, and be binding upon, the successors, administrators,
heirs, legal representatives and assigns of the Grantee and the successors and
assigns of the Company.

       14.   NOTICES. Any notice to the Company provided for herein shall be in
writing to the attention of the Corporate Secretary at Florists' Transworld
Delivery, Inc., 3113 Woodcreek Drive, Downers Grove, Illinois 60515, and any
notice to the Grantee shall be addressed to the Grantee at his address currently
on file with the Company. Except as otherwise provided herein, any written
notice shall be deemed to be duly given if and when hand delivered, or five
business days after having been mailed by United States registered or certified
mail, return receipt requested, postage prepaid, or three business days after
having been sent by a nationally recognized overnight courier service, addressed
as aforesaid. Any party may change the address to which notices are to be given
hereunder by written notice to the other party as herein specified, except that
notices of changes of address shall be effective only upon receipt.

       15.   GOVERNING LAW. The laws of the State of Illinois, without giving
effect to the principles of conflict of laws thereof, shall govern the
interpretation, performance and enforcement of this Agreement.

                            [signature page follows]

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      This Agreement is executed by the Company as of the 12th day of June 2000.

                             FLORISTS' TRANSWORLD DELIVERY, INC.

                             By: /s/ Francis C. Piccirillo
                                 -------------------------
                                 Name: Francis C. Piccirillo
                                 Title: Vice President, Chief Financial Officer,
                                        Treasurer and Secretary

      The undersigned hereby acknowledges receipt of an executed original of
this Agreement and accepts the award of Restricted Shares granted hereunder on
the terms and conditions set forth herein.

Date:  June 12, 2000             s/ Timothy Rasmussen
                                 ---------------------
                                 Timothy Rasmussen

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                                                                    EXHIBIT 10.9

                               MCE COMPANIES, INC.

                            2000 STOCK INCENTIVE PLAN

                              I. GENERAL PROVISIONS

    1.1   ESTABLISHMENT. On July 20, 2000, the Board of Directors ("Board") of
MCE Companies, Inc., a Michigan corporation ("Corporation"), adopted the MCE
Companies, Inc. Stock Incentive Plan ("Plan"), subject to the approval of
shareholders.

    1.2   PURPOSE. The purpose of the Plan is to promote the best interests of
the Corporation and its shareholders by encouraging Employees and non-employee
directors and consultants of the Corporation and its Subsidiaries to acquire an
ownership interest in the Corporation through Options, Stock Appreciation
Rights, Restricted Stock, Performance Share Awards and Annual Incentive Awards,
thus identifying their interests with those of shareholders. It is the further
purpose of the Plan to permit the granting of Nonqualified Stock Options, Stock
Appreciation Rights, Restricted Stock, Performance Share Awards and Annual
Incentive Awards that will constitute performance based compensation, as
described in Section 162(m) of the Code, and regulations promulgated thereunder.

    1.3   DEFINITIONS. As used in this Plan, the following terms have the
meaning described below:

          (a)  "AGREEMENT" means the written agreement that sets forth the terms
of a Participant's Option, Stock Appreciation Right, Restricted Stock Grant,
Performance Share Award or Annual Incentive Award.

          (b)  "ANNUAL INCENTIVE AWARD" means an award that is granted in
accordance with Article VI of the Plan.

          (c)  "BOARD" means the Board of Directors of the Corporation.

          (d)  "CHANGE IN CONTROL" means the occurrence of any of the following
events:

               (i)   the acquisition of ownership by a person, firm or
     corporation, or a group acting in concert, of fifty-one percent, or more,
     of the outstanding Common Stock of the Corporation in a single transaction
     or a series of related transactions within a one-

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     year period;

               (ii)  a sale of all or substantially all of the assets of the
     Corporation to any person, firm or corporation; or

               (iii) a merger or similar transaction between the Corporation and
     another entity if shareholders of the Corporation do not own a majority of
     the voting stock of the corporation surviving the transaction and a
     majority in value of the total outstanding stock of such surviving
     corporation after the transaction;

provided, however, that any such event involving any of the current shareholders
of the Corporation as of the date of adoption of this Plan by the Board (or any
entity at any time controlled by any such shareholder or shareholders), and the
completion of an Initial Public Offering, shall not be included within the
meaning of "Change in Control."

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

          (f)  "COMMITTEE" means the Compensation Committee of the Corporation,
which shall be comprised of two or more members of the Board.

          (g)  "COMMON STOCK" means shares of the Corporation's authorized
common stock.

          (h)  "CORPORATION" means MCE Companies, Inc., a Michigan corporation.

          (i)  "DISABILITY" means total and permanent disability, as defined in
Code Section 22(e).

          (j)  "EMPLOYEE" means an individual who has an "employment
relationship" with the Corporation or a Subsidiary, as defined in Treasury
Regulation 1.421-7(h), and the term "employment" means employment with the
Corporation, or a Subsidiary of the Corporation.

          (k)  "EXCHANGE ACt" means the Securities Exchange Act of 1934, as
amended from time to time and any successor thereto.

          (l)  "FAIR MARKET VALUE" means for purposes of determining the value
of Common Stock on the Grant Date:

               (i)   If the Grant Date is the same as the date upon which an
     Initial Public Offering of the Corporation's Common Stock becomes
     effective, the initial public offering price; or

               (ii)  If the Grant Date occurs after an Initial Public Offering
     of the Corporation's Common Stock becomes effective, the Stock Exchange
     closing price of the

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     Corporation's Common Stock as reported in The Wall Street Journal (or as
     otherwise reported by such Stock Exchange) for the Grant Date. In the event
     that there were no Common Stock transactions on such date, the Fair Market
     Value shall be determined as of the immediately preceding date on which
     there were Common Stock transactions.

Unless otherwise specified in the Plan, "Fair Market Value" for purposes of
determining the value of Common Stock on the date of exercise means, as
applicable under (i) or (ii) above (substituting the date of exercise for the
Grant Date): the initial public offering price; or the Stock Exchange closing
price of the Corporation's Common Stock on the last date preceding the exercise
on which there were Common Stock transactions.

          (m) "GRANT DATE" means the date on which the Committee authorizes an
individual Option, Stock Appreciation Right, Restricted Stock grant, Performance
Share Award or Annual Incentive Award, or such later date as shall be designated
by the Committee.

          (n) "INCENTIVE STOCK OPTION" means an Option that is intended to meet
the requirements of Section 422 of the Code.

          (o) "INITIAL PUBLIC OFFERING" means a firm commitment underwritten
initial public offering of the Corporation's Common Stock registered under the
Securities Act of 1933, as amended.

          (p) "NONQUALIFIED STOCK OPTION" means an Option that is not intended
to constitute an Incentive Stock Option.

          (q) "OPTION" means either an Incentive Stock Option or a Nonqualified
Stock Option.

          (r) "PARTICIPANT" means an Employee or non-employee director or
consultant designated by the Committee to participate in the Plan.

          (s) "PERFORMANCE SHARE AWARD" means a performance share award that is
granted in accordance with Article V of the plan.

          (t) "PLAN" means the MCE Companies, Inc. 2000 Stock Incentive Plan,
the terms of which are set forth herein, and amendments thereto.

          (u) "RESTRICTION PERIOD" means the period of time during which a
Participant's Restricted Stock grant is subject to restrictions and is
nontransferable.

          (v) "RESTRICTED STOCK" means Common Stock that is subject to
restrictions.

          (w) "RETIREMENT" means termination of employment on or after the
attainment of age 65.

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          (x)  "STOCK APPRECIATION RIGHT" means the right to receive a cash or
Common Stock payment from the Corporation upon the surrender of a tandem Option,
in accordance with Article III of the Plan.

          (y)  "STOCK EXCHANGE" means the principal national securities exchange
on which the Common Stock is listed for trading or, if the Common Stock is not
listed for trading on a national securities exchange, such other recognized
trading market or quotation system upon which the largest number of shares of
Common Stock has been traded in the aggregate during the last 20 days before a
Grant Date or date on which an Option is exercised, whichever is applicable.

          (z)  "SUBSIDIARY" means a corporation defined in Code Section 424(f).

          (aa) "VESTED" means the extent to which an Option or Stock
Appreciation Right granted hereunder has become exercisable in accordance with
this Plan and the terms of the respective Agreement pursuant to which such
Option or Stock Appreciation Right was granted.

    1.4   ADMINISTRATION.

          (a)  The Plan shall be administered by the Committee. It is intended
that the directors appointed to serve on the Committee shall be "disinterested
persons" (within the meaning of Rule 16b-3 promulgated under the Exchange Act)
and "outside directors" (within the meaning of Code Section 162(m)); however,
the mere fact that a Committee member shall fail to qualify under either of
these requirements shall not invalidate any award made by the Committee if the
award is otherwise validly made under the Plan. The members of the Committee
shall be appointed by, and may be changed at any time and from time to time, at
the discretion of the Board.

          (b)  The Committee shall interpret the Plan, prescribe, amend, and
rescind rules and regulations relating to the Plan, and make all other
determinations necessary or advisable for its administration. The decision of
the Committee on any question concerning the interpretation of the Plan or its
administration with respect to any Option, Stock Appreciation Right, Restricted
Stock grant, Performance Share Award or Annual Incentive Award granted under the
Plan shall be final and binding upon all Participants. No member of the
Committee shall be liable for any action or determination made in good faith
with respect to the Plan or any grant or award hereunder.

    1.5   PARTICIPANTS. Participants in the Plan shall be such Employees
(including Employees who are directors) and non-employee directors and
consultants of the Corporation and its Subsidiaries as the Committee in its sole
discretion may select from time to time. The Committee may grant Options, Stock
Appreciation Rights, Restricted Stock, Performance Share Awards and Annual
Incentive Awards to an individual upon the condition that the individual become
an Employee of the Corporation or of a Subsidiary, provided that the Option,
Stock Appreciation Right, Restricted Stock, Performance Share Award or Annual
Incentive Award shall be deemed to be granted only on the date that the
individual becomes an Employee.

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    1.6   STOCK. The Corporation has reserved 66,000 shares (on a pre-split or
pre-stock dividend basis) of the Corporation's Common Stock for issuance under
the Plan. Shares subject to any unexercised portion of a terminated, cancelled
or expired Option, Stock Appreciation Right, Restricted Stock grant or
Performance Share Award granted hereunder, and pursuant to which a Participant
never acquired benefits of ownership, including payment of a stock dividend (but
excluding voting rights), may again be subjected to grants and awards under the
Plan, but shares surrendered pursuant to the exercise of a Stock Appreciation
Right are not available for future grants and awards. All provisions in this
Section 1.6 shall be adjusted, as applicable, in accordance with Article VIII.

                                II. STOCK OPTIONS

    2.1   GRANT OF OPTIONS. The Committee, at any time and from time to time,
subject to Section 9.7, may grant Options to such Participants and for such
number of shares of Common Stock (whole or fractional) as it shall designate.
Provided, however, that no Participant may be granted Options and Stock
Appreciation Rights during any one fiscal year to purchase more than 2,000
shares (on a pre-split or pre-stock dividend basis) of Common Stock. Any
Participant may hold more than one Option under the Plan and any other Plan of
the Corporation or Subsidiary. The Committee shall determine the general terms
and conditions of exercise, including any applicable vesting requirements, which
shall be set forth in a Participant's Option Agreement. No Option granted
hereunder may be exercised after the tenth anniversary of the Grant Date. The
Committee may designate any Option granted as either an Incentive Stock Option
or a Nonqualified Stock Option, or the Committee may designate a portion of an
Option as an Incentive Stock Option or a Nonqualified Stock Option. At the
discretion of the Committee, an Option may be granted in tandem with a Stock
Appreciation Right. Nonqualified Stock Options are intended to satisfy the
requirements of Code Section 162(m) and the regulations promulgated hereunder.

    2.2   INCENTIVE STOCK OPTIONS. Any Option intended to constitute an
Incentive Stock Option shall comply with the requirements of this Section 2.2.
No Incentive Stock Option shall be granted with an exercise price below the Fair
Market Value of Common Stock on the Grant Date or with an exercise term that
extends beyond 10 years from the Grant Date. An Incentive Stock Option shall not
be granted to any Participant who owns (within the meaning of Code Section
424(d)) stock of the Corporation or any Subsidiary possessing more than 10% of
the total combined voting power of all classes of stock of the Corporation or a
Subsidiary unless, at the Grant Date, the exercise price for the Option is at
least 110% of the Fair Market Value of the shares subject to the Option and the
Option, by its terms, is not exercisable more than 5 years after the Grant Date.
The aggregate Fair Market Value of the underlying Common Stock (determined at
the Grant Date) as to which Incentive Stock Options granted under the Plan
(including a plan of a Subsidiary) may first be exercised by a Participant in
any one calendar year shall not exceed $100,000. To the extent that an Option
intended to constitute an Incentive Stock Option shall violate the foregoing
$100,000 limitation (or any other limitation set forth in Code Section 422), the
portion of the Option that exceeds the $100,000 limitation (or violates any
other Code Section 422 limitation) shall be deemed to constitute a Nonqualified
Stock Option.

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    2.3   OPTION PRICE. The Committee shall determine the per share exercise
price for each Option granted under the Plan. The Committee, at its discretion,
may grant Nonqualified Stock Options with an exercise price below 100% of the
Fair Market Value of Common Stock on the Grant Date. The foregoing
notwithstanding, no Incentive Stock Option shall be granted with an exercise
price below the Fair Market Value of Common Stock on the Grant Date.

    2.4   PAYMENT FOR OPTION SHARES.

          (a)   The purchase price for shares of Common Stock to be acquired
upon exercise of an Option granted hereunder shall be paid in full in cash or by
personal check, bank draft or money order at the time of exercise; provided,
however, that in lieu of such form of payment a Participant may pay such
purchase price in whole or in part by tendering shares of Common Stock, which
have been held by the Participant for at least six (6) months and which are
freely owned and held by the Participant independent of any restrictions,
hypothecations or other encumbrances, duly endorsed for transfer (or with duly
executed stock powers attached), or in any combination of the above. Shares of
Common Stock surrendered upon exercise shall be valued at the Stock Exchange
closing price for the Corporation's Common Stock on the day prior to exercise,
as reported in The Wall Street Journal (or as otherwise reported by such Stock
Exchange), and the certificate(s) for such shares, duly endorsed for transfer or
accompanied by appropriate stock powers, shall be surrendered to the
Corporation. Participants who are subject to short swing profit restrictions
under the Exchange Act and who exercise an Option by tendering
previously-acquired shares shall do so only in accordance with the provisions of
Rule 16b-3 of the Exchange Act.

          (b)  At the discretion of the Committee, as set forth in a
Participant's Option Agreement, any Option granted hereunder may be deemed
exercised by delivery to the Corporation of a properly executed exercise notice,
acceptable to the Corporation, together with irrevocable instructions to the
Participant's broker to deliver to the Corporation sufficient cash to pay the
exercise price and any applicable income and employment withholding taxes, in
accordance with a written agreement between the Corporation and the brokerage
firm ("cashless exercise procedure").

                         III. STOCK APPRECIATION RIGHTS

    3.1   GRANT OF STOCK APPRECIATION RIGHTS. Stock Appreciation Rights may be
granted, held and exercised in such form as set by the Committee on an
individual basis. A Stock Appreciation Right may be granted to a Participant
with respect to such number of shares of Common Stock of the Corporation as the
Committee may determine. The number of shares covered by the Stock Appreciation
Right shall not exceed the number of shares of stock which the Participant could
purchase upon the exercise of the related Option. Stock Appreciation Rights are
intended to satisfy the requirements of Code Section 162(m) and the regulations
promulgated thereunder.

    3.2   EXERCISE OF STOCK APPRECIATION RIGHTS. A Stock Appreciation Right
shall be deemed exercised upon receipt by the Corporation of written notice of
exercise from the

<PAGE>   7

Participant. Except as permitted under Rule 16b-3, notice of exercise of a Stock
Appreciation Right by a participant subject to the insider trading restrictions
of Section 16(b) of the Securities Exchange Act of 1934, shall be limited to the
period beginning on the third day following the release of the Corporation's
quarterly or annual summary of earnings and ending on the 12th business day
after such release. The exercise term of each Stock Appreciation Right shall be
limited to 10 years from its Grant Date or such earlier period as set by the
related Option. A Stock Appreciation Right shall be exercisable only at such
times and in such amounts as the related Option may be exercised. A Stock
Appreciation Right granted to a Participant subject to the insider trading
restrictions shall not be exercisable in whole or part during the first six
months of its term, unless the Participant dies or becomes disabled during such
six-month period.

    3.3   STOCK APPRECIATION RIGHT ENTITLEMENT.

          (a)  Upon exercise of a Stock Appreciation Right, a Participant shall
be entitled to payment from the Corporation, in cash, shares, or partly in each
(as determined by the Committee in accordance with any applicable terms of the
Agreement), of an amount equal to the difference between:

               (i)  the Fair Market Value of the number of shares subject to the
          Stock Appreciation Right on the exercise date, and

               (ii) the Option price of the associated Option multiplied by the
          number of shares available under the Option.

          (b)  Notwithstanding Section 3.3(a), upon exercise of a Stock
Appreciation Right the Participant shall be required to surrender the associated
Option.

    3.4   MAXIMUM STOCK APPRECIATION RIGHT AMOUNT PER SHARE. The Committee may,
at its sole discretion, establish (at the time of grant) a maximum amount per
share which shall be payable upon the exercise of a Stock Appreciation Right,
expressed as a dollar amount or as a percentage or multiple of the Option price
of a related Option.

                              IV. RESTRICTED STOCK

    4.1   GRANT OF RESTRICTED STOCK. Subject to the terms and conditions of the
Plan, the Committee, at any time and from time to time, may grant shares of
Restricted Stock under this Plan to such Participants and in such amounts as it
shall determine.

    4.2   RESTRICTED STOCK AGREEMENT. Each grant of Restricted Stock shall be
evidenced by a Restricted Stock Agreement that shall specify the terms of the
restrictions, including the restriction period, or periods, the number of
Restricted Stock shares subject to the grant, and such other provisions,
including performance goals, as the Committee shall determine.

    4.3   TRANSFERABILITY. Except as provided in this Article IV of the Plan,
the shares of

<PAGE>   8

Restricted Stock granted hereunder may not be transferred, pledged, assigned, or
otherwise alienated or hypothecated until the termination of the applicable
Restriction Period or for such period of time as shall be established by the
Committee and as shall be specified in the Restricted Stock Agreement, or upon
the earlier satisfaction of other conditions as specified by the Committee in
its sole discretion and as set forth in the Restricted Stock Agreement. All
rights with respect to the Restricted Stock granted to an Employee shall be
exercisable during a Participant's lifetime only by the Participant or the
Participant's legal representative.

    4.4   OTHER RESTRICTIONS. The Committee shall impose such other restrictions
on any shares of Restricted Stock granted under the Plan as it may deem
advisable including, without limitation, restrictions under applicable Federal
or State securities laws, and may legend the certificates representing
Restricted Stock to give appropriate notice of such restrictions.

    4.5   CERTIFICATE LEGEND. In addition to any legends placed on certificates
pursuant to Sections 4.3 and 4.4, each certificate representing shares of
Restricted Stock shall bear the following legend:

          The sale or other transfer of the shares of stock represented by this
    certificate, whether voluntary, involuntary or by operation of law, is
    subject to certain restrictions on transfer set forth in the MCE Companies,
    Inc. 2000 Stock Incentive Plan ("Plan"), rules and administrative guidelines
    adopted pursuant to such Plan and a Restricted Stock Agreement dated
                 ,     . A copy of the Plan, such rules and such Restricted
    Stock Agreement may be obtained from the President of MCE Companies, Inc.

    4.6   REMOVAL OF RESTRICTIONS. Except as otherwise provided in this Article
IV of the Plan, and subject to applicable federal and state securities laws,
shares covered by each Restricted Stock grant made under the Plan shall become
freely transferable by the Participant after the last day of the Restriction
Period. Once the shares are released from the restrictions, the Participant
shall be entitled to have the legend required by Section 4.5 of the Plan removed
from the applicable Common Stock certificate. Provided further, the Committee
shall have the discretion to waive the applicable Restriction Period with
respect to all or any part of a Restricted Stock grant.

    4.7   VOTING RIGHTS. During the Restriction Period, Participants holding
shares of Restricted Stock granted hereunder may exercise full
voting rights with respect to the Restricted Stock.

    4.8   DIVIDENDS AND OTHER DISTRIBUTIONS. During the Restriction Period, a
Participant shall be entitled to receive all dividends and other distributions
paid with respect to shares of Restricted Stock. If any dividends or
distributions are paid in shares of Common Stock during the Restriction Period,
the dividend or other distribution shares shall be subject to the same
restrictions on transferability as the shares of Restricted Stock with respect
to which they were paid.

<PAGE>   9

    4.9   RESTRICTED STOCK AWARDS GRANTED UNDER CODE SECTION 162(M). The
Committee, at its discretion, may designate certain Restricted Stock Awards as
granted pursuant to Code Section 162(m). Such Restricted Stock Awards must
comply with the following additional requirements, which override any other
provision set forth in this Article IV:

          (a)  Each Code Section 162(m) Restricted Stock Award shall be based
upon pre-established, objective performance goals that are intended to satisfy
the performance-based compensation requirements of Code Section 162(m) and the
regulations promulgated thereunder. Further, at the discretion of the Committee,
a Restricted Stock Award also may be subject to goals and restrictions in
addition to the performance requirements.

          (b)  Each Code Section 162(m) Restricted Stock Award shall be based
upon the attainment of specified levels of Corporation or Subsidiary performance
during a specified performance period, as measured by any or all of the
following: earnings (as measured by net income, net income per share, operating
income or operating income per share), sales growth and market capitalization.

          (c)  For each designated performance period, the Committee shall (i)
select those Employees who shall be eligible to receive a Restricted Stock
Award, (ii) determine the performance period, which may be a one to three fiscal
year period, (iii) determine the target levels of Corporation or Subsidiary
performance, and (iv) determine the number of shares subject to a Restricted
Stock Award to be paid to each selected Employee. The Committee shall make the
foregoing determinations prior to the commencement of services to which a
Restricted Stock Award relates (or within the permissible time-period
established under Code Section 162(m)) and while the outcome of the performance
goals and targets is uncertain.

          (d)   For each performance period, the Committee shall certify, in
writing: (i) if the Corporation has attained the performance targets, and (ii)
the number of shares pursuant to the Restricted Stock Award that are to become
freely transferable. The Committee shall have no discretion to waive all or part
of the conditions, goals and restrictions applicable to the receipt of full or
partial payment of a Restricted Stock Award.

          (e)   Any dividends paid during the Restriction Period automatically
shall be reinvested on behalf of the Employee in additional shares of Restricted
Stock under the Plan, and such additional shares shall be subject to the same
performance goals and restrictions as the other shares under the Restricted
Stock Award. No shares under a Code Section 162(m) Restricted Stock Award shall
become transferable until the Committee certifies in writing that the
performance goals and restrictions have been satisfied.

          (f)   No Employee, in any one fiscal year of the Company, shall be
granted a Code Section 162(m) Restricted Stock Award for more than 2,000 shares
(on a pre-split or pre-stock dividend basis) of Common Stock.

          (g)   Except as provided in this Article IV of the Plan, the shares
pursuant to a Restricted Stock Award granted hereunder may not be transferred,
pledged, assigned, or

<PAGE>   10

otherwise alienated or hypothecated until the applicable performance targets and
other restrictions are satisfied, as shall be certified in writing by the
Committee. All rights with respect to a Performance Share Award granted
hereunder shall apply only to such Employee or the Employee's legal
representative.

          (h)   Except as otherwise provided in this Article IV of the Plan, and
subject to applicable federal and state securities laws, shares covered by each
Restricted Stock Award made under the Plan shall become freely transferable by
the Employee after the Committee has certified that the applicable performance
targets and restrictions have been satisfied. Once the shares are released from
the restrictions, the Employee shall be entitled to have the legend required by
Section 4.5 of the Plan removed from the applicable Common Stock certificate.

                           V. PERFORMANCE SHARE AWARDS

    5.1   GRANT OF PERFORMANCE SHARE AWARDS. The Committee, at its discretion,
may grant Performance Share Awards to Employees of the Corporation and its
Subsidiaries and may determine, on an individual or group basis, the performance
goals to be attained pursuant to each Performance Share Award.

    5.2   TERMS OF PERFORMANCE SHARE AWARDS. In general, Performance Share
Awards shall consist of rights to receive cash, Common Stock or a combination of
each, if designated performance goals are achieved. The terms of a Participant's
Performance Share Award shall be set forth in his individual Performance Share
Agreement. Each Agreement shall specify the performance goals applicable to a
particular Employee or group of Employees, the period over which the targeted
goals are to be attained, the payment schedule if the goals are attained, and
any other terms, conditions and restrictions applicable to an individual
Performance Share Award and not inconsistent with the provisions of the Plan.
The Committee, at its discretion, may waive all or part of the conditions, goals
and restrictions applicable to the receipt of full or partial payment of a
Performance Share Award.

    5.3   PERFORMANCE SHARE AWARDS GRANTED UNDER CODE SECTION 162(M). The
Committee, at its discretion, may designate certain Performance Share Awards as
granted pursuant to Code Section 162(m). Such Performance Share Awards must
comply with the following additional requirements, which override any other
provision set forth in this Article V:

          (a)   The Committee, at its discretion, may grant Code Section 162(m)
Performance Share Awards based upon pre-established, objective performance goals
that are intended to satisfy the performance-based compensation requirements of
Code Section 162(m) and the regulations promulgated thereunder. Further, at the
discretion of the Committee, a Performance Share Award also may be subject to
goals and restrictions in addition to the performance requirements.

          (b)   Each Code Section 162(m) Performance Share Award shall be based
upon the attainment of specified levels of Corporation or Subsidiary performance
during a specified

<PAGE>   11

performance period, as measured by any or all of the following: (i) earnings (as
measured by net income, net income per share, operating income or operating
income per share); (ii) sales growth; (iii) and market capitalization.

          (c)   For each designated performance period, the Committee shall (i)
select those Employees who shall be eligible to receive a Code Section 162(m)
Performance Share Award, (ii) determine the performance period, which may be a
one to three fiscal year period, (iii) determine the target levels of
Corporation or Subsidiary performance, and (iv) determine the Performance Share
Award to be paid to each selected Employee. The Committee shall make the
foregoing determinations prior to the commencement of services to which a
Performance Share Award relates (or within the permissible time-period
established under Code Section 162(m)) and while the outcome of the performance
goals and targets is uncertain.

          (d)   For each performance period, the Committee shall certify, in
writing: (i) if the Corporation has attained the performance targets; and (ii)
the cash or number of shares (or combination thereof) pursuant to the
Performance Share Award that shall be paid to each selected Employee (or the
number of shares that are to become freely transferable, if a Performance Share
Award is granted subject to attainment of the designated performance goals). The
Committee, may not waive all or part of the conditions, goals and restrictions
applicable to the receipt of full or partial payment of a Performance Share
Award.

          (e)   Code Section 162(m) Performance Share Awards may be granted in
two different forms, at the discretion of the Committee. Under one form, the
Employee shall receive a Performance Share Award that consists of a legended
certificate of Common Stock, restricted from transfer prior to the satisfaction
of the designated performance goals and restrictions, as determined by the
Committee and specified in the Employee's Performance Share Agreement. Prior to
satisfaction of the performance goals and restrictions, the Employee shall be
entitled to vote the Performance Shares. Further, any dividends paid on such
shares during the performance/restriction period automatically shall be
reinvested on behalf of the Employee in additional Performance Shares under the
Plan, and such additional shares shall be subject to the same performance goals
and restrictions as the other shares under the Performance Share Award. No
shares under a Performance Share Award shall become transferable until the
Committee certifies in writing that the performance goals and restrictions have
been satisfied.

          (f)   Under the second form, the Employee shall receive a Performance
Share Agreement from the Committee that specifies the performance goals and
restrictions that must be satisfied before the Company shall issue the payment,
which may be cash, a designated number of shares of Common Stock or a
combination of the two. Any certificate for shares under such form of
Performance Share Award shall be issued only after the Committee certifies in
writing that the performance goals and restrictions have been satisfied.

          (g)   No Employee, in any one fiscal year of the Company, shall be
granted a Performance Share Award to receive more than 2,000 shares (on a
pre-split or pre-stock dividend basis) of Common Stock.

<PAGE>   12

          (h)  Except as provided in this Article V of the Plan, the shares
pursuant to a Performance Share Award granted hereunder may not be transferred,
pledged, assigned, or otherwise alienated or hypothecated until the applicable
performance targets and other restrictions are satisfied, as shall be certified
in writing by the Committee. All rights with respect to a Performance Share
Award granted hereunder shall apply only to such Employee or the Employee's
legal representative.

          (i)  In addition to any legends placed on certificates pursuant to
Section 5.3(h), each certificate representing shares under a Performance Share
Award shall bear the following legend:

    The sale or other transfer of the shares of stock represented by this
    certificate, whether voluntary, involuntary or by operation of law, is
    subject to certain restrictions on transfer set forth in the MCE Companies,
    Inc. 2000 Stock Incentive Plan ("Plan"), rules and administrative guidelines
    adopted pursuant to such Plan and a Performance Share Agreement dated
                ,     . A copy of the Plan, such rules and such Performance
    Share Agreement may be obtained from the President of MCE Companies, Inc.

          (j)  Except as otherwise provided in this Article V of the Plan, and
subject to applicable federal and state securities laws, shares covered by each
Performance Share Award made under the Plan shall become freely transferable by
the Employee after the Committee has certified that the applicable performance
targets and restrictions have been satisfied. Once the shares are released from
the restrictions, the Employee shall be entitled to have the legend required by
paragraph (i) removed from the applicable Common Stock certificate.

                           VI. ANNUAL INCENTIVE AWARDS

    6.1 GRANT OF ANNUAL INCENTIVE AWARDS.

          (a)  The Committee, at its discretion, may grant Annual Incentive
Awards to such Employees as it may designate from time to time. Annual
Incentive Awards shall be based upon pre-established, objective performance
goals that are intended to satisfy the performance-based compensation
requirements of Code Section 162(m) and the regulations promulgated thereunder.

          (b)  The determination of Annual Incentive Awards for a given year
shall be based upon the attainment of specified levels of Corporation or
Subsidiary performance as measured by any or all of the following: earnings (as
measured by net income, net income per share, operating income or operating
income per share), sales growth and market capitalization.

          (c)  For each fiscal year of the Corporation, the Committee shall
(i) select those Employees who shall be eligible to receive an Annual Incentive
Award, (ii) determine the performance period, which may be a one to three fiscal
year period, (iii) determine target levels of Corporation performance, and (iv)
determine the level of Annual Incentive Award to be paid to

<PAGE>   13

each selected Employee upon the achievement of each performance level as
provided below. The Committee shall make the foregoing determinations prior to
the commencement of services to which an Annual Incentive Award relates (or
within the permissible time-period established under Code Section 162(m)) and
while the outcome of the performance goals and targets is uncertain.

    6.2   ATTAINMENT OF PERFORMANCE TARGETS.

          (a)  For each fiscal year, the Committee shall certify, in writing:
(i) the degree to which the Corporation has attained the performance targets;
and (ii) the amount of the Annual Incentive Award to be paid to each selected
Employee.

          (b)  Notwithstanding anything to the contrary herein, the
Committee may, in its discretion, reduce any Annual Incentive Award based on
such factors as may be determined by the Committee, including, without
limitation, a determination by the Committee that such a reduction is
appropriate: (i) in light of pay practices of competitors; or (ii) in light of
the Corporation's, a subsidiary's, or a selected Employee's performance relative
to competitors and/or performance with respect to the Corporation's strategic
business goals.

    6.3   PAYMENT OF ANNUAL INCENTIVE AWARDS. An Annual Incentive Award shall be
paid only if (i) the Corporation achieves at least the threshold performance
level; and (ii) the Committee makes the certification described in Section 6.2.

    6.4   ANNUAL INCENTIVE AWARD PAYMENT FORMS.

          (a)  Annual Incentive Awards shall be paid in cash and/or
shares of Common Stock of the Corporation, at the discretion of the Committee.
Payments shall be made within 30 days following (i) a certification by the
Committee that the performance targets were attained, and (ii) a determination
by the Committee that the amount of an Annual Incentive Award shall not be
decreased in accordance with Section 6.2. The aggregate maximum Annual Incentive
Award that may be earned by any Participant on behalf of any one fiscal year
(calculated as of the last day of the fiscal year for which the Annual Incentive
Award is earned) may not exceed the lesser of one (1) times the Participant's
base salary for the fiscal year or $300,000.

          (b)  The amount of an Annual Incentive Award to be paid upon the
attainment of each targeted level of performance shall equal a percentage of
each Participant's base salary for the fiscal year, as determined by the
Committee.

                         VIII. TERMINATION OF EMPLOYMENT

    7.1.  OPTIONS AND STOCK APPRECIATION RIGHTS.

          (a)  If, prior to the date that an Option or Stock Appreciation Right
first becomes Vested, a Participant's employment is terminated for any reason
other than after a Change in Control, the Participant's right to exercise the
Option or Stock Appreciation Right

<PAGE>   14

shall terminate and all rights thereunder shall cease.

          (b)   If, on or after the date that an Option or Stock Appreciation
Right first becomes Vested, a Participant's employment is terminated for any
reason other than death or Disability, the Participant shall have the right,
within the earlier of (i) the expiration of the Option or Stock Appreciation
Right, and (ii) three months after termination of employment, to exercise the
Option or Stock Appreciation Right to the extent that it was exercisable and
unexercised on the date of the Participant's termination of employment, subject
to any other limitation on the exercise of the Option or Stock Appreciation
Right in effect on the date of exercise. The Committee may designate in a
Participant's Agreement that an Option or Stock Appreciation Right shall
terminate at an earlier time than set forth above.

          (c)   If, on or after the date that an Option or Stock Appreciation
Right first becomes Vested, a Participant dies while an Option or Stock
Appreciation Right is still exercisable, the person or persons to whom the
Option or Stock Appreciation Right shall have been transferred by will or by the
laws of descent and distribution, shall have the right within the exercise
period specified in the Participant's Agreement to exercise the Option or Stock
Appreciation Right to the extent that it was exercisable and unexercised on the
Participant's date of death, subject to any other limitation on exercise in
effect on the date of exercise. Provided, however, that the beneficial tax
treatment of an Incentive Stock Option may be forfeited if the Option is
exercised more than one year after a Participant's date of death.

          (d)   If, on or after the date that an Option or Stock Appreciation
Right first becomes Vested, a Participant terminates employment due to
Disability, the Participant shall have the right, within the exercise period
specified in the Participant's Agreement to exercise the Option or Stock
Appreciation Right to the extent that it was exercisable and unexercised on the
date of the Participant's termination of employment, subject to any other
limitation on the exercise of the Option or Stock Appreciation Right in effect
on the date of exercise. If the Participant dies after termination of employment
while the Option or Stock Appreciation Right is still exercisable, the Option or
Stock Appreciation Right shall be exercisable in accordance with the terms of
paragraph (c) above.

          (e)   The Committee, at the time of a Participant's termination of
employment, may accelerate a Participant's right to exercise an Option or extend
the exercise period of an Option or Stock Appreciation Right; provided, however
that the extension of the exercise period for an Incentive Stock Option may
cause such Option to forfeit its preferential tax treatment.

          (f)   Shares subject to Options and Stock Appreciation Rights that are
not exercised in accordance with the provisions of (a) through (e) above shall
expire and be forfeited by the Participant as of their expiration date and shall
become available for new grants and awards under the Plan as of such date.

    7.2   RESTRICTED STOCK. If a Participant terminates employment for any
reason other than after a Change in Control, the Participant's shares of
Restricted Stock still subject to the Restriction Period automatically shall
expire and be forfeited by the Participant and, subject to

<PAGE>   15

Section 1.6, shall be available for new grants and awards under the Plan as of
such termination date; provided, however, that the Committee, in its sole
discretion, may waive the restrictions remaining on any or all shares of
Restricted Stock and add such new restrictions to such shares of Restricted
Stock as it deems appropriate. Notwithstanding the foregoing, the Committee
shall not waive any restrictions on a Code Section 162(m) Restricted Stock
Award, but the Committee may include a provision in an Employee's Code Section
162(m) Restricted Stock Agreement stating that upon the Employee's termination
of employment due to (i) death, (ii) Disability, or (iii) involuntary
termination by the Company without cause prior to the attainment of the
associated performance goals and the termination of the Restriction Period, that
the performance goals and restrictions shall be deemed to have been satisfied on
a pro rata basis, so that the number of shares that become freely transferable
shall be based on the Employee's full number of months of employment during the
Restriction Period, and the Employee shall forfeit the remaining shares and his
rights to such forfeited shares shall terminate in full.

    7.3   PERFORMANCE SHARES. Performance Share Awards shall expire and be
forfeited by a Participant upon the Participant's termination of employment for
any reason other than after a Change in Control, and such shares shall be
available for new grants and awards under the Plan as of such termination date;
provided, however, that the Committee, in its discretion, may waive all or part
of the conditions, goals and restrictions applicable to the receipt of full or
partial payment of a Performance Share Award. Notwithstanding the foregoing, the
Committee shall not waive any restrictions on a Code Section 162(m) Performance
Share Award, but the Committee may include a provision in an Employee's Code
Section 162(m) Performance Share Agreement stating that upon the Employee's
termination of employment due to (i) death, (ii) Disability, or (iii)
involuntary termination by the Company without cause prior to the attainment of
the associated performance goals and restrictions, that the performance goals
and restrictions shall be deemed to have been satisfied on a pro rata basis, so
that the number of shares that become freely transferable shall be based on the
Employee's full number of months of employment during the employment period, and
the Employee shall forfeit the remaining shares and his rights to such forfeited
shares shall terminate in full.

    7.4   ANNUAL INCENTIVE AWARDS.

          (a)   A Participant who has been granted an Annual Incentive Award and
terminates employment due to Retirement, Disability or death prior to the end of
the Corporation's fiscal year shall be entitled to a prorated payment of the
Annual Incentive Award, based on the number of full months of employment during
the fiscal year. Any such prorated Annual Incentive Award shall be paid at the
same time as regular Annual Incentive Awards or, in the event of the
Participant's death, to the beneficiary designated by the Participant.

          (b)   A Participant who has been granted an Annual Incentive Award and
resigns or is terminated for any reason (other than Retirement, Disability or
death), before the end of the Corporation's fiscal year for which the Annual
Incentive Award is to be paid, shall forfeit the right to an Annual Incentive
Award payment for that fiscal year.

    7.5   OTHER PROVISIONS. The transfer of an Employee from one corporation to
another

<PAGE>   16

among the Corporation and any of its Subsidiaries, or a leave of absence
under the leave policy of the Corporation or any of its Subsidiaries shall not
be a termination of employment for purposes of the Plan, unless a provision to
the contrary is expressly stated by the Committee in a Participant's Agreement
issued under the Plan.

                     VIII. ADJUSTMENTS AND CHANGE IN CONTROL

    8.1   ADJUSTMENTS.

          (a)   The total amount of Common Stock for which Options, Stock
Appreciation Rights, Restricted Stock, Performance Share Awards and Annual
Incentive Awards may be issued under the Plan, and the number of shares subject
to any such grants or awards (both as to the number of shares of Common Stock
and the Option price), shall be automatically adjusted pro rata for any increase
or decrease in the number of outstanding shares of Common Stock resulting from
payment of a stock dividend on Common Stock, a subdivision or combination of
shares of Common Stock, or a reclassification of Common Stock.

          (b)   The foregoing adjustments shall be made by the Committee.  Any
such adjustment may provide for the elimination of any fractional share which
might otherwise become subject to an Option, Stock Appreciation Right,
Restricted Stock grant, Performance Share Award or Annual Incentive Award.

    8.2   CHANGE IN CONTROL. Notwithstanding anything contained herein to the
contrary, in the event of a Change in Control: (i) any outstanding Option or
Stock Appreciation Right granted to such Participant hereunder immediately shall
become fully Vested and exercisable in full, regardless of any installment
provision applicable to such Option or Stock Appreciation Right; (ii) the
remaining Restriction Period on any Restricted Stock granted to such Participant
hereunder immediately shall lapse and the shares shall become fully
transferable, subject to any applicable federal or state securities laws; (iii)
all performance goals and conditions shall be deemed to have been satisfied and
all restrictions shall lapse on any outstanding Performance Share Awards granted
to such Participant hereunder, and such Awards shall become payable in full; and
(iv) for purposes of any Annual Incentive Awards granted to such Participant
hereunder, the determination of whether the performance targets have been
achieved shall be made as of the date of the Change in Control and payments due
should become immediately payable.

                                IX. MISCELLANEOUS

    9.1   PARTIAL EXERCISE/FRACTIONAL SHARES. The Committee may permit, and
shall establish procedures for, the partial exercise of Options and Stock
Appreciation Rights granted under the Plan. No fractional shares shall be issued
in connection with the exercise of a Stock Appreciation Right or payment of a
Performance Share Award or Annual Incentive Award; instead, the Fair Market
Value of the fractional shares shall be paid in cash, or at the discretion of
the Committee, the number of shares shall be rounded down to the nearest whole
number of

<PAGE>   17

shares and any fractional shares shall be disregarded.

    9.2   RULE 16B-3 REQUIREMENTS. Notwithstanding any other provision of the
Plan, the Committee may impose such conditions on the exercise of an Option or
Stock Appreciation Right (including, without limitation, the right of the
Committee to limit the time of exercise to specified periods), or the grant of
Restricted Stock or the payment of a Performance Share Award or Annual Incentive
Award, as may be required to satisfy the requirements of Rule 16b-3 of the
Exchange Act.

    9.3   RIGHTS PRIOR TO ISSUANCE OF SHARES. No Participant shall have any
rights as a shareholder with respect to shares covered by an Option, Stock
Appreciation Right, Restricted Stock grant, Performance Share Award or Annual
Incentive Award until the issuance of a stock certificate for such shares. No
adjustment shall be made for dividends or other rights with respect to such
shares for which the record date is prior to the date the certificate is issued.

    9.4   NON-ASSIGNABILITY. No Option, Stock Appreciation Right, Restricted
Stock grant, Performance Share Award or Annual Incentive Award shall be
transferable by a Participant except by will or the laws of descent and
distribution. During the lifetime of a Participant, an Option or Stock
Appreciation Right shall be exercised only by the Participant, except in the
event of the Participant's Disability, in which case the Participant's legal
guardian or the individual designated in the Participant's durable power of
attorney may exercise the Option or Stock Appreciation Right. Any transferee of
the Option or Stock Appreciation Right shall take the same subject to the terms
and conditions of this Plan. No transfer of an Option, Stock Appreciation Right,
Restricted Stock grant, Performance Share Award or Annual Incentive Award by
will or the laws of descent and distribution shall be effective to bind the
Corporation unless the Corporation shall have been furnished with written notice
thereof and a copy of the will and/or such evidence as the Corporation may deem
necessary to establish the validity of the transfer and the acceptance by the
transferee or transferees of the terms and conditions of the Option, Stock
Appreciation Right, Restricted Stock grant, Performance Share Award or Annual
Incentive Award.

    9.5.  SECURITIES LAWS.

          (a) Anything to the contrary herein notwithstanding, the Corporation's
obligation to sell and deliver Common Stock pursuant to the exercise of an
Option or Stock Appreciation Right or deliver Common Stock pursuant to a
Restricted Stock grant, Performance Share Award or Annual Incentive Award is
subject to such compliance with federal and state laws, rules and regulations
applying to the authorization, issuance or sale of securities as the Corporation
deems necessary or advisable. The Corporation shall not be required to sell and
deliver or issue Common Stock unless and until it receives satisfactory
assurance that the issuance or transfer of such shares shall not violate any of
the provisions of the Securities Act of 1933 or the Securities Exchange Act of
1934, or the rules and regulations of the Securities Exchange Commission
promulgated thereunder or those of the Stock Exchange or any stock exchange on
which the Common Stock may be listed, the provisions of any state laws governing
the sale of securities, or that there has been compliance with the provisions of
such acts, rules, regulations

<PAGE>   18

and laws.

          (b)   The Committee may impose such restrictions on any shares of
Common Stock acquired pursuant to the exercise of an Option or Stock
Appreciation Right or the grant of Restricted Stock or the payment of a
Performance Share Award or Annual Incentive Award under the Plan as it may deem
advisable, including, without limitation, restrictions (i) under applicable
federal securities laws, (ii) under the requirements of the Stock Exchange or
any other securities exchange, recognized trading market or quotation system
upon which such shares of Common Stock are then listed or traded, and (iii)
under any blue sky or state securities laws applicable to such shares. No shares
shall be issued until counsel for the Corporation has determined that the
Corporation has complied with all requirements under appropriate securities
laws.

    9.6   WITHHOLDING TAXES.

          (a)   The Corporation shall have the right to withhold from a
Participant's compensation or require a Participant to remit sufficient funds to
satisfy applicable withholding for income and employment taxes upon the exercise
of an Option or Stock Appreciation Right or the lapse of the Restriction Period
on a Restricted Stock grant or the payment of a Performance Share Award or
Annual Incentive Award. A Participant may make a written election to tender
previously-acquired shares of Common Stock or have shares of stock withheld from
the exercise, provided that the shares have an aggregate Fair Market Value
sufficient to satisfy in whole or in part the applicable minimum statutory
withholding taxes. The cashless exercise procedure of Section 2.4 may be
utilized to satisfy the withholding requirements related to the exercise of an
Option. At no point shall the Corporation withhold from the exercise of an
Option more shares than are necessary to meet the established minimum statutory
tax withholding requirements of federal, state and local obligations.

          (b)   A Participant subject to the insider trading restrictions of
Section 16(b) of the Exchange Act may use Common Stock to satisfy the applicable
withholding requirements only if such disposition is approved in accordance with
Rule 16b-3 of the Exchange Act. Any election by a Participant to utilize Common
Stock for withholding purposes is further subject to the discretion of the
Committee.

    9.7   TERMINATION AND AMENDMENT.

          (a)   The Board may terminate the Plan, or the granting of Options,
Stock Appreciation Rights, Restricted Stock, Performance Share Awards or Annual
Incentive Awards under the Plan, at any time. No new grants or awards shall be
made under the Plan after the tenth anniversary of the adoption of this Plan by
the Board, or approval by the shareholders, whichever is earlier, as noted in
Section 1.1.

          (b)   The Board may amend or modify the Plan at any time and from time
to time, but no amendment or modification, without the approval of the
shareholders of the Corporation, shall (i) materially increase the benefits
accruing to Participants under the Plan; (ii) increase the amount of Common
Stock for which grants and awards may be made under the Plan,

<PAGE>   19

except as permitted under Sections 1.6 and 8.1; or (iii) change the provisions
relating to the eligibility of individuals to whom grants and awards may be made
under the Plan.

          (c)   No amendment, modification, or termination of the Plan shall in
any manner affect any Option, Stock Appreciation Right, Restricted Stock grant,
Performance Share Award or Annual Incentive Award granted under the Plan without
the consent of the Participant holding the Option, Stock Appreciation Right,
Restricted Stock grant, Performance Share Award or Annual Incentive Award.

    9.8   EFFECT ON EMPLOYMENT. Neither the adoption of the Plan nor the
granting of any Option, Stock Appreciation Right, Restricted Stock, Performance
Share Award or Annual Incentive Award pursuant to the Plan shall be deemed to
create any right in any individual to be retained or continued in the employment
of the Corporation or a Subsidiary.

    9.9   USE OF PROCEEDS. The proceeds received from the sale of Common Stock
pursuant to the Plan will be used for general corporate purposes of the
Corporation.

    9.10   APPROVAL OF PLAN. Unless this Plan has been approved by the
shareholders of the Corporation within 12 months of July 20, 2000 (the date of
adoption of the Plan by the Board), as required by Section 422 of the Code, this
Plan, and any grants or awards made hereunder, shall be of no further force or
effect.

    IN WITNESS WHEREOF, this 2000 Stock Incentive Plan has been executed on
behalf of the Corporation on this 20th day of July, 2000.

                                MCE COMPANIES, INC.

                                By:  /s/ John L. Smucker
                                        ---------------------------------------
                                John L. Smucker, President

                                By:  /s/ John K. Cannon
                                        ---------------------------------------
                                John K. Cannon, Chairman of the
                                        Compensation Committee

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