Document:

EXHIBIT 4.2

                            PALOMAR ENTERPRISES, INC.
           NON-EMPLOYEE DIRECTORS AND CONSULTANTS RETAINER STOCK PLAN
                             FOR THE YEAR 2003 NO. 4

     1. INTRODUCTION. This Plan shall be known as the "Palomar Enterprises, Inc.
Non-Employee Directors and Consultants Retainer Stock Plan for the Year 2003 No.
4," and is hereinafter  referred to as the "Plan." The purposes of this Plan are
to enable Palomar  Enterprises,  Inc., a Nevada corporation (the "Company"),  to
promote the  interests of the Company and its  stockholders  by  attracting  and
retaining  non-employee  Directors and  Consultants  capable of  furthering  the
future  success of the Company and by aligning  their  economic  interests  more
closely with those of the Company's  stockholders,  by paying their  retainer or
fees in the form of shares of the Company's  common stock,  par value $0.001 per
share (the "Common Stock").

     2.  DEFINITIONS.  The  following  terms shall have the  meanings  set forth
below:

     "Board" means the Board of Directors of the Company.

     "Change of Control" has the meaning set forth in Paragraph 13(d) hereof.

     "Code" means the Internal  Revenue Code of 1986, as amended,  and the rules
and regulations  thereunder.  References to any provision of the Code or rule or
regulation  thereunder  shall be deemed to  include  any  amended  or  successor
provision, rule or regulation.

     "Committee"  means the committee that  administers this Plan, as more fully
defined in Paragraph 14 hereof.

     "Common Stock" has the meaning set forth in Paragraph 1 hereof.

     "Company" has the meaning set forth in Paragraph 1 hereof.

     "Deferral Election" has the meaning set forth in Paragraph 7 hereof.

     "Deferred  Stock  Account"  means a bookkeeping  account  maintained by the
Company for a Participant  representing the Participant's interest in the shares
credited to such Deferred Stock Account pursuant to Paragraph 8 hereof.

     "Delivery Date" has the meaning set forth in Paragraph 7 hereof.

     "Director" means an individual who is a member of the Board of Directors of
the Company.

     "Dividend  Equivalent" for a given dividend or other  distribution  means a
number of shares of the  Common  Stock  having a Fair  Market  Value,  as of the
record date for such dividend or distribution, equal to the amount of cash, plus
the Fair  Market  Value on the date of  distribution  of any  property,  that is
distributed  with  respect to one share of the  Common  Stock  pursuant  to such
dividend  or  distribution;  such  Fair  Market  Value to be  determined  by the
Committee in good faith.

     "Effective Date" has the meaning set forth in Paragraph 3 hereof.

     "Exchange Act" has the meaning set forth in Paragraph 13(d) hereof.

     "Fair Market Value" means the mean between the highest and lowest  reported
sales prices of the Common Stock on the New York Stock  Exchange  Composite Tape
or, if not listed on such exchange, on any other national securities exchange on
which the Common  Stock is listed or on The Nasdaq Stock  Market,  or, if not so
listed on any other  national  securities  exchange or The Nasdaq Stock  Market,
then the  average  of the bid price of the  Common  Stock  during  the last five

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trading days on the OTC Bulletin  Board  immediately  preceding the last trading
day  prior to the date with  respect  to which  the Fair  Market  Value is to be
determined.  If the  Common  Stock is not then  publicly  traded,  then the Fair
Market  Value of the Common  Stock  shall be the book value of the  Company  per
share as determined on the last day of March,  June,  September,  or December in
any year  closest  to the date  when the  determination  is to be made.  For the
purpose of determining book value  hereunder,  book value shall be determined by
adding as of the  applicable  date called for herein the capital,  surplus,  and
undivided  profits  of the  Company,  and after  having  deducted  any  reserves
theretofore  established;  the sum of these items shall be divided by the number
of shares of the Common Stock outstanding as of said date, and the quotient thus
obtained shall represent the book value of each share of the Common Stock of the
Company.

     "Participant" has the meaning set forth in Paragraph 4 hereof.

     "Payment  Time"  means  the time  when a Stock  Retainer  is  payable  to a
Participant  pursuant to Paragraph 5 hereof (without regard to the effect of any
Deferral Election).

     "Stock Retainer" has the meaning set forth in Paragraph 5 hereof.

     "Third Anniversary" has the meaning set forth in Paragraph 7 hereof.

     3. EFFECTIVE DATE OF THE PLAN. This Plan was adopted by the Board effective
November 19, 2003 (the "Effective Date").

     4.  ELIGIBILITY.  Each  individual  who is a Director or  Consultant on the
Effective  Date and  each  individual  who  becomes  a  Director  or  Consultant
thereafter   during  the  term  of  this  Plan,  shall  be  a  participant  (the
"Participant")  in this Plan, in each case during such period as such individual
remains a Director or Consultant and is not an employee of the Company or any of
its  subsidiaries.  Each credit of shares of the Common  Stock  pursuant to this
Plan shall be evidenced by a written agreement duly executed and delivered by or
on behalf of the Company and a Participant,  if such an agreement is required by
the Company to assure compliance with all applicable laws and regulations.

     5.  GRANTS OF  SHARES.  Commencing  on the  Effective  Date,  the amount of
compensation for service to directors or consultants  shall be payable in shares
of the Common Stock (the "Stock Retainer") pursuant to this Plan.

     6. PURCHASE PRICE.  The purchase price (the "Exercise  Price") of shares of
the Common Stock  subject to each Stock Option (the  "Option  Shares")  shall be
determined  by the board of directors  acting in good faith,  which in any event
shall not be less than 85 percent of the Fair Market Value of the Option Shares,
and in the case of any Participant who owns securities of the Company possessing
more than 10  percent  of the total  combined  voting  power of all  classes  of
securities of the Company or its parent or subsidiaries possessing voting power,
the Exercise Price shall be at least 100 percent of the Fair Market Value of the
Option  Shares at the time a  Participant  is granted the right to purchase  the
Option Shares, or at the time the purchase is consummated.

     7. DEFERRAL  OPTION.  From and after the Effective  Date, a Participant may
make an election (a "Deferral Election") on an annual basis to defer delivery of
the Stock Retainer specifying which one of the following ways the Stock Retainer
is to be delivered (a) on the date which is three years after the Effective Date
for which it was originally payable (the "Third  Anniversary"),  (b) on the date
upon which the Participant  ceases to be a Director or Consultant for any reason
(the "Departure  Date") or (c) in five equal annual  installments  commencing on
the Departure  Date (the "Third  Anniversary"  and  "Departure  Date" each being
referred to herein as a "Delivery Date"). Such Deferral Election shall remain in
effect for each  Subsequent  Year unless  changed,  provided  that, any Deferral
Election  with  respect to a  particular  Year may not be changed  less than six
months prior to the beginning of such Year, and provided,  further, that no more
than one Deferral Election or change thereof may be made in any Year.

     Any Deferral Election and any change or revocation thereof shall be made by
delivering  written  notice  thereof to the  Committee  no later than six months
prior to the beginning of the Year in which it is to be effected; provided that,

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with respect to the Year beginning on the Effective Date, any Deferral  Election
or  revocation  thereof must be delivered no later than the close of business on
the 30th day after the Effective Date.

     8. DEFERRED  STOCK  ACCOUNTS.  The Company shall  maintain a Deferred Stock
Account  for each  Participant  who makes a Deferral  Election to which shall be
credited,  as of the applicable Payment Time, the number of shares of the Common
Stock  payable  pursuant to the Stock  Retainer to which the  Deferral  Election
relates.  So long as any amounts in such  Deferred  Stock  Account have not been
delivered to the  Participant  under  Paragraph 9 hereof,  each  Deferred  Stock
Account  shall be credited as of the payment date for any dividend paid or other
distribution  made with respect to the Common Stock,  with a number of shares of
the Common  Stock equal to (a) the number of shares of the Common Stock shown in
such Deferred Stock Account on the record date for such dividend or distribution
multiplied by (b) the Dividend Equivalent for such dividend or distribution.

     9. DELIVERY OF SHARES.

     (a) The  shares  of the  Common  Stock in a  Participant's  Deferred  Stock
Account  with respect to any Stock  Retainer  for which a Deferral  Election has
been made (together with dividends  attributable to such shares credited to such
Deferred Stock  Account) shall be delivered in accordance  with this Paragraph 9
as soon as practicable  after the applicable  Delivery Date. Except with respect
to a Deferral  Election  pursuant to Paragraph 7(c) hereof,  or other  agreement
between the parties,  such shares shall be delivered at one time; provided that,
if the number of shares so delivered  includes a fractional  share,  such number
shall be rounded to the nearest whole number of shares.  If the  Participant has
in effect a Deferral  Election  pursuant to  Paragraph  7(c)  hereof,  then such
shares  shall be  delivered in five equal  annual  installments  (together  with
dividends  attributable to such shares credited to such Deferred Stock Account),
with the first such installment  being delivered on the first anniversary of the
Delivery  Date;  provided  that,  if in order  to  equalize  such  installments,
fractional  shares  would  have to be  delivered,  such  installments  shall  be
adjusted by rounding to the nearest  whole  share.  If any such shares are to be
delivered  after the Participant  has died or become legally  incompetent,  they
shall be delivered to the  Participant's  estate or legal guardian,  as the case
may be, in accordance with the foregoing; provided that, if the Participant dies
with a Deferral  Election  pursuant  to  Paragraph  7(c)  hereof in effect,  the
Committee shall deliver all remaining  undelivered  shares to the  Participant's
estate immediately.  References to a Participant in this Plan shall be deemed to
refer to the Participant's estate or legal guardian, where appropriate.

     (b) The Company may, but shall not be required to,  create a grantor  trust
or utilize an existing  grantor trust (in either case,  "Trust") to assist it in
accumulating  the shares of the Common Stock  needed to fulfill its  obligations
under this Paragraph 9. However,  Participants shall have no beneficial or other
interest in the Trust and the assets  thereof,  and their rights under this Plan
shall be as general  creditors of the Company,  unaffected  by the  existence or
nonexistence  of the  Trust,  except  that  deliveries  of  Stock  Retainers  to
Participants  from the  Trust  shall,  to the  extent  thereof,  be  treated  as
satisfying the Company's obligations under this Paragraph 9.

     10. SHARE  CERTIFICATES;  VOTING AND OTHER  RIGHTS.  The  certificates  for
shares delivered to a Participant  pursuant to Paragraph 9 above shall be issued
in the name of the Participant, and from and after the date of such issuance the
Participant shall be entitled to all rights of a stockholder with respect to the
Common Stock for all such shares issued in his name, including the right to vote
the  shares,   and  the  Participant  shall  receive  all  dividends  and  other
distributions paid or made with respect thereto.

     11. GENERAL RESTRICTIONS.

         (a) Notwithstanding any other provision of this Plan or agreements made
pursuant  thereto,  the  Company  shall not be  required to issue or deliver any
certificate or certificates for shares of the Common Stock under this Plan prior
to fulfillment of all of the following conditions:

               (i)  Listing or  approval  for listing  upon  official  notice of
issuance  of such  shares on the New York Stock  Exchange,  Inc.,  or such other
securities exchange as may at the time be a market for the Common Stock;

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               (ii) Any registration or other qualification of such shares under
any state or federal law or regulation, or the maintaining in effect of any such
registration or other  qualification  which the Committee shall, upon the advice
of counsel, deem necessary or advisable; and

               (iii) Obtaining any other consent,  approval,  or permit from any
state or federal  governmental agency which the Committee shall, after receiving
the advice of counsel, determine to be necessary or advisable.

         (b) Nothing  contained  in this Plan shall  prevent  the  Company  from
adopting other or additional compensation arrangements for the Participants.

     12. SHARES AVAILABLE.  Subject to Paragraph 13 below, the maximum number of
shares of the Common Stock which may in the aggregate be paid as Stock Retainers
pursuant to this Plan is 40,000,000.  Shares of the Common Stock issueable under
this Plan may be taken from  treasury  shares of the Company or purchased on the
open market.

     13. ADJUSTMENTS; CHANGE OF CONTROL.

          (a) In the event  that  there is, at any time  after the Board  adopts
this  Plan,  any  change in  corporate  capitalization,  such as a stock  split,
combination  of shares,  exchange  of shares,  warrants  or rights  offering  to
purchase   the  Common   Stock  at  a  price  below  its  Fair   Market   Value,
reclassification,  or recapitalization,  or a corporate transaction, such as any
merger,  consolidation,  separation,  including a spin-off,  stock dividend,  or
other  extraordinary  distribution  of stock or  property  of the  Company,  any
reorganization  (whether or not such reorganization  comes within the definition
of such term in Section 368 of the Code) or any partial or complete  liquidation
of the Company (each of the foregoing a "Transaction"),  in each case other than
any such Transaction  which  constitutes a Change of Control (as defined below),
(i) the Deferred  Stock  Accounts  shall be credited with the amount and kind of
shares or other  property  which  would  have been  received  by a holder of the
number of shares of the Common  Stock held in such  Deferred  Stock  Account had
such shares of the Common Stock been outstanding as of the  effectiveness of any
such  Transaction,  (ii) the number and kind of shares or other property subject
to  this  Plan  shall  likewise  be   appropriately   adjusted  to  reflect  the
effectiveness   of  any  such   Transaction,   and  (iii)  the  Committee  shall
appropriately  adjust any other  relevant  provisions  of this Plan and any such
modification by the Committee shall be binding and conclusive on all persons.

          (b) If the shares of the Common Stock  credited to the Deferred  Stock
Accounts  are  converted  pursuant  to  Paragraph  13(a)  into  another  form of
property,  references  in this Plan to the Common  Stock shall be deemed,  where
appropriate,  to  refer  to  such  other  form  of  property,  with  such  other
modifications as may be required for this Plan to operate in accordance with its
purposes.  Without  limiting the  generality  of the  foregoing,  references  to
delivery of certificates for shares of the Common Stock shall be deemed to refer
to delivery of cash and the incidents of ownership of any other property held in
the Deferred Stock Accounts.

          (c) In lieu of the adjustment  contemplated by Paragraph 13(a), in the
event of a Change  of  Control,  the  following  shall  occur on the date of the
Change of Control (i) the shares of the Common Stock held in each  Participant's
Deferred  Stock Account shall be deemed to be issued and  outstanding  as of the
Change of Control;  (ii) the Company shall forthwith deliver to each Participant
who has a Deferred  Stock  Account all of the shares of the Common  Stock or any
other property held in such Participant's Deferred Stock Account; and (iii) this
Plan shall be terminated.

          (d) For purposes of this Plan, Change of Control shall mean any of the
following events:

               (i) The  acquisition by any  individual,  entity or group (within
the meaning of Section  13(d)(3) or 14(d)(2) of the  Securities  Exchange Act of
1934,  as amended (the  "Exchange  Act")) (a "Person") of  beneficial  ownership
(within  the meaning of Rule 13d-3  promulgated  under the  Exchange  Act) of 20
percent or more of either (1) the then outstanding shares of the Common Stock of

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the Company (the "Outstanding Company Common Stock"), or (2) the combined voting
power of then  outstanding  voting  securities  of the Company  entitled to vote
generally  in  the  election  of  directors  (the  "Outstanding  Company  Voting
Securities");  provided,  however,  that the  following  acquisitions  shall not
constitute  a Change of Control (A) any  acquisition  directly  from the Company
(excluding an  acquisition  by virtue of the exercise of a conversion  privilege
unless the security  being so converted  was itself  acquired  directly from the
Company),  (B)  any  acquisition  by the  Company,  (C) any  acquisition  by any
employee  benefit plan (or related trust) sponsored or maintained by the Company
or any  corporation  controlled  by the  Company or (D) any  acquisition  by any
corporation pursuant to a reorganization, merger or consolidation, if, following
such  reorganization,  merger or  consolidation,  the  conditions  described  in
clauses  (A),  (B) and  (C) of  paragraph  (iii)  of this  Paragraph  13(d)  are
satisfied; or

               (ii) Individuals who, as of the date hereof, constitute the Board
of the Company (as of the date hereof,  "Incumbent  Board") cease for any reason
to  constitute  at least a majority of the Board;  provided,  however,  that any
individual becoming a director subsequent to the date hereof whose election,  or
nomination for election by the Company's stockholders, was approved by a vote of
at least a majority of the directors then  comprising the Incumbent  Board shall
be considered as though such  individual  were a member of the Incumbent  Board,
but excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of either an actual or threatened election contest (as
such  terms are used in Rule  14a-11 of  Regulation  14A  promulgated  under the
Exchange Act) or other actual or threatened  solicitation of proxies or consents
by or on behalf of a Person other than the Board; or

               (iii)  Approval  by  the   stockholders   of  the  Company  of  a
reorganization,   merger,  binding  share  exchange  or  consolidation,  unless,
following such reorganization,  merger,  binding share exchange or consolidation
(1) more than 60 percent of,  respectively,  then  outstanding  shares of common
stock of the corporation  resulting from such  reorganization,  merger,  binding
share  exchange  or  consolidation   and  the  combined  voting  power  of  then
outstanding voting securities of such corporation  entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
owners,  respectively,  of the Outstanding  Company Common Stock and Outstanding
Company Voting  Securities  immediately  prior to such  reorganization,  merger,
binding share exchange or consolidation in substantially the same proportions as
their ownership, immediately prior to such reorganization, merger, binding share
exchange  or  consolidation,   of  the  Outstanding  Company  Common  Stock  and
Outstanding  Company  Voting  Securities,  as the  case  may be,  (2) no  Person
(excluding  the  Company,  any employee  benefit plan (or related  trust) of the
Company or such corporation resulting from such reorganization,  merger, binding
share exchange or consolidation and any Person beneficially owning,  immediately
prior to such reorganization,  merger,  binding share exchange or consolidation,
directly or  indirectly,  20 percent or more of the  Outstanding  Company Common
Stock or Outstanding Company Voting Securities, as the case may be) beneficially
owns,  directly  or  indirectly,  20  percent  or more  of,  respectively,  then
outstanding  shares  of  common  stock of the  corporation  resulting  from such
reorganization,  merger, binding share exchange or consolidation or the combined
voting power of then outstanding voting securities of such corporation  entitled
to vote  generally in the election of directors,  and (3) at least a majority of
the members of the board of directors  of the  corporation  resulting  from such
reorganization,  merger, binding share exchange or consolidation were members of
the  Incumbent  Board  at the time of the  execution  of the  initial  agreement
providing  for  such   reorganization,   merger,   binding  share   exchange  or
consolidation; or

               (iv)  Approval  by  the  stockholders  of  the  Company  of (1) a
complete  liquidation or  dissolution  of the Company,  or (2) the sale or other
disposition of all or substantially all of the assets of the Company, other than
to  a  corporation,   with  respect  to  which  following  such  sale  or  other
disposition, (A) more than 60 percent of, respectively,  then outstanding shares
of  common  stock of such  corporation  and the  combined  voting  power of then
outstanding voting securities of such corporation  entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
owners,  respectively,  of the Outstanding  Company Common Stock and Outstanding

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Company Voting Securities immediately prior to such sale or other disposition in
substantially the same proportion as their ownership,  immediately prior to such
sale  or  other  disposition,  of  the  Outstanding  Company  Common  Stock  and
Outstanding  Company  Voting  Securities,  as the  case  may be,  (B) no  Person
(excluding  the Company and any employee  benefit plan (or related trust) of the
Company or such  corporation  and any Person  beneficially  owning,  immediately
prior to such sale or other disposition,  directly or indirectly,  20 percent or
more of the  Outstanding  Company  Common Stock or  Outstanding  Company  Voting
Securities,  as the case may be) beneficially owns,  directly or indirectly,  20
percent or more of,  respectively,  then  outstanding  shares of common stock of
such  corporation  and the  combined  voting  power of then  outstanding  voting
securities  of such  corporation  entitled to vote  generally in the election of
directors,  and (3) at least a majority of the members of the board of directors
of such  corporation  were  members  of the  Incumbent  Board at the time of the
execution  of the initial  agreement or action of the Board  providing  for such
sale or other disposition of assets of the Company.

     14. ADMINISTRATION; AMENDMENT AND TERMINATION.

          (a) This Plan shall be administered  by a committee  consisting of two
members who shall be the current  directors  of the Company or senior  executive
officers or other directors who are not Participants as may be designated by the
Chief Executive  Officer (the  "Committee"),  which shall have full authority to
construe and  interpret  this Plan,  to  establish,  amend and rescind rules and
regulations  relating  to this Plan,  and to take all such  actions and make all
such  determinations  in connection  with this Plan as it may deem  necessary or
desirable.

          (b) The Board may from time to time make such amendments to this Plan,
including to preserve or come within any exemption from liability  under Section
16(b) of the Exchange Act, as it may deem proper and in the best interest of the
Company without further approval of the Company's  stockholders,  provided that,
to the extent  required under Nevada law or to qualify  transactions  under this
Plan for  exemption  under Rule 16b-3  promulgated  under the  Exchange  Act, no
amendment  to this  Plan  shall  be  adopted  without  further  approval  of the
Company's  stockholders  and,  provided,  further,  that  if and  to the  extent
required for this Plan to comply with Rule 16b-3  promulgated under the Exchange
Act,  no  amendment  to this Plan  shall be made more than once in any six month
period that would change the amount, price or timing of the grants of the Common
Stock  hereunder  other than to comport with  changes in the Code,  the Employee
Retirement  Income  Security  Act  of  1974,  as  amended,  or  the  regulations
thereunder.  The  Board  may  terminate  this  Plan  at any  time by a vote of a
majority of the members thereof.

     15.  RESTRICTIONS  ON TRANSFER.  Each Stock Option  granted under this Plan
shall be transferable only by will or the laws of descent and  distribution.  No
interest  of any  Employee  under  this Plan  shall be  subject  to  attachment,
execution, garnishment, sequestration, the laws of bankruptcy or any other legal
or  equitable  process.  Each  Stock  Option  granted  under  this Plan shall be
exercisable  during  an  Employee's  lifetime  only  by the  Employee  or by the
Employee's legal representative.

     16. TERM OF PLAN. No Stock Option shall be  exercisable,  or Award granted,
unless and until the  Directors of the Company have  approved  this Plan and all
other  legal  requirements  have been met.  This Plan was  adopted  by the Board
effective  November 19, 2003.  No Stock  Options or Awards may be granted  under
this Plan after November 19, 2013.

     17.  APPROVAL.  This Plan must be approved by a majority of the outstanding
securities  entitled  to vote  within  12 months  before  or after  this Plan is
adopted or the date the  agreement is entered  into.  Any  securities  purchased
before security holder approval is obtained must be rescinded if security holder
approval is not obtained  within 12 months  before or after this Plan is adopted
or the  agreement  is  entered  into.  Such  securities  shall not be counted in
determining whether such approval is obtained.

     18.  GOVERNING  LAW.  This Plan and all actions taken  thereunder  shall be
governed by, and construed in accordance with, the laws of the State of Nevada.

     19.  INFORMATION TO SHAREHOLDERS.  The Company shall furnish to each of its
stockholders financial statements of the Company at least annually.

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     20. MISCELLANEOUS.

          (a) Nothing in this Plan shall be deemed to create any  obligation  on
the part of the Board to nominate any Director for  reelection  by the Company's
stockholders or to limit the rights of the stockholders to remove any Director.

          (b) The Company shall have the right to require, prior to the issuance
or delivery  of any shares of the Common  Stock  pursuant  to this Plan,  that a
Participant make arrangements  satisfactory to the Committee for the withholding
of any taxes  required by law to be  withheld  with  respect to the  issuance or
delivery of such shares,  including,  without limitation,  by the withholding of
shares that would otherwise be so issued or delivered,  by withholding  from any
other payment due to the Participant, or by a cash payment to the Company by the
Participant.

     IN WITNESS  WHEREOF,  this Plan has been executed  effective as of November
19, 2003.

                                      PALOMAR ENTERPRISES, INC.

                                      By /s/ STEVEN BONENBERGER
                                        ------------------------------
                                        Steven Bonenberger, President

                                       7<PAGE>

                                                                     Exhibit 4.1

                                ACETO CORPORATION
                             2002 STOCK OPTION PLAN
SECTION 1. PURPOSE.

         Aceto Corporation ("Aceto" or the "Company") hereby establishes the
Aceto Corporation 2002 Stock Option Plan. The purposes of the Aceto Corporation
2002 Stock Option Plan (the "Plan"), are to attract, retain and motivate
Eligible Participants, as defined below, to compensate them for their
contributions to the Company's growth and profit and to encourage them to own
the Company's common stock, thereby promoting the interests of the Company and
its stockholders.

SECTION 2. DEFINITIONS.

         As used in the Plan, the following terms shall have the meanings set
forth below:

         "Affiliate" shall mean (i) any entity that, directly or indirectly, is
controlled by the Company; (ii) a subsidiary of the Company; and (iii) any
entity in which the Company has a significant equity or business interest, in
each case as determined by the Board.

         "Award" shall mean any Option, Restricted Stock Award, or other
stock-based Award.

         "Award Agreement" shall mean any written instrument or document
evidencing any Award, which may, but need not be, executed by an Eligible
Participant.

         "Board" shall mean the Board of Directors of the Company.

         "Change in Control" shall be deemed to have occurred if: (i) any
"person" as such term is used in Sections 13(d) and 14(d) of the Exchange Act
(other than the Company, any trustee or other fiduciary holding securities under
any employee benefit plan of the Company,) is or becomes the "beneficial owner"
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing 20% or more of the voting power of the
Company's then outstanding securities; (ii) during any period of two consecutive
years, individuals who at the beginning of such period constitute the Board of
Directors, and any new director (other than a director designated by a person
who has entered into an agreement with the Company to effect a transaction
described in clause (i), (iii), or (iv) of this paragraph) whose election by the
Board of Directors or nomination for election by the Company's stockholders was
approved by a vote of at least two-thirds of the directors then still in office
who either were directors at the beginning of the two year period or whose
election or nomination for election was previously so approved, cease for any
reason to constitute at least a majority of the Board of Directors; (iii) the
stockholders of the Company approve a merger or consolidation of the Company
with any other corporation, other than a merger or consolidation that would
result in the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) more than 50% of the
combined voting power of the voting securities of the Company or such surviving
entity outstanding immediately after such merger or consolidation; provided,
however, that a merger or consolidation effected to implement a recapitalization
of the Company (or similar transaction) in which no person acquires more than
20% of the combined voting power of the Company's then outstanding securities
shall not constitute a change in Control of the Company; or (iv) the
stockholders of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or disposition by the Company of all or
substantially all of the Company's assets. If any of the events enumerated in
clauses (i) through (iv) occur the Board shall determine the effective date of
the Change in Control resulting therefrom, for purposes of the Plan.

         "Code" shall mean the Internal Revenue Code of 1986, as amended from
time to time, and the rules and regulations promulgated thereunder.

<PAGE>

         "Committee" shall mean a committee of the Board designated by the Board
to make recommendations to the Board with regard to Awards. Until otherwise
determined by the Board, the Executive Committee of the Board (which serves as
the Executive Compensation Committee) shall be the Committee under the Plan.

         "Common Stock" shall mean shares of the Company's common stock, $.01
par value.

         "Eligible Participant" shall mean an employee of the Company or any
Affiliate. Such term shall also mean any non-employee director, adviser,
consultant or independent contractor to the Company or any Affiliate, and any
reference to employment or termination of employment under the Plan shall be
deemed to apply to such director, adviser, consultant or independent contractor,
for the purpose of the Plan only, as if the services of such person constitute
employment services.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

         "Executive Officer" shall mean, at any time, an individual who is an
executive officer of the Company within the meaning of Exchange Act Rule 3b-7
promulgated and interpreted by the SEC under the Exchange Act, or any successor
rule or regulation thereto as in effect from time to time, or who is an officer
of the Company within the meaning of Exchange Act Rule 16a-1(f) as promulgated
and interpreted by the SEC under the Exchange Act, or any successor rule or
regulation thereto as in effect from time to time.

         "Fair Market Value" of a share of the Company's Common Stock for any
purpose on a particular date shall be the last reported sale price per share of
Common Stock on the principal stock exchange on which the Common Stock is
traded, or if such exchange was closed on such day, or if it was open but no
such sale took place on such day, then on the preceding day that the Common
Stock was traded on such exchange.

         "Incentive Stock Option" shall mean an Option which meets the
requirements of Section 422 of the Code.

         "Non-Qualified Stock Option" shall mean an Option which does not meet
the requirements of Section 422 of the Code.

         "Option" shall mean an Incentive Stock Option or Non-Qualified Stock
Option.

         "Participant" shall mean any Eligible Participant selected by the Board
to receive an Award under the Plan.

         "Person" shall mean any individual, corporation, partnership,
association, joint-stock company, trust, unincorporated organization, government
or political subdivision thereof or other entity.

         "QDRO" shall mean a domestic relations order meeting such requirements
as the Committee shall determine, in its sole discretion.

"Restricted Stock" shall mean any Share granted under Section 7 of the Plan.

         "SEC" shall mean the Securities and Exchange Commission or any
successor thereto and shall include the staff thereof.

         "Shares" shall mean shares of the Common Stock, $ .01 par value, of the
Company.

SECTION 3. ADMINISTRATION.

         (a) AUTHORITY OF COMMITTEE. The Committee shall, subject to the terms
of the Plan and applicable law, make recommendations to the Board with regard to
(i) designation of Participants; (ii) the type or types of Awards to be granted
to an Eligible Participant; (iii) the number of Shares to be covered by Awards;
(iv) terms and conditions of Awards; and (v) unless otherwise expressly provided
in the Plan, designations, determination, interpretations, and suggested
decisions with respect to the Plan or any Award.

<PAGE>

         (b) AUTHORITY OF BOARD. All Awards under the Plan shall be made by the
Board, which shall have full authority to accept, reject or modify any
recommendations of the Committee. All designations, determinations,
interpretations, and other decisions under or with respect to the Plan or any
Award shall be within the sole discretion of the Board, may be made at any time
and shall be final, conclusive, and binding upon all Persons, including the
Company, any Affiliate, any Participant, any holder or beneficiary of any Award,
and any stockholder.

SECTION 4. SHARES AVAILABLE FOR AWARDS.

         (a) SHARES AVAILABLE. Subject to adjustment as provided in Section
4(b), the number of Shares with respect to which Awards may be granted under the
Plan shall be five hundred thousand (500,000). If, after the effective date of
the Plan, any Shares covered by an Award granted under the Plan are forfeited,
or if such an Award terminates or is canceled without the delivery of shares,
then the Shares covered by such Award, or the number of Shares otherwise counted
against the aggregate number of Shares with respect to which Awards may be
granted, to the extent of any such forfeiture, termination or cancellation,
shall again become Shares with respect to which Awards may be granted. In the
event that any Option or other Award granted hereunder is exercised through the
delivery of Shares or in the event that withholding tax liabilities arising from
such Award are satisfied by the withholding of Shares by the Company, the number
of Shares available for Awards under the Plan shall be increased by the number
of Shares so surrendered or withheld.

         (b) ADJUSTMENTS. In the event that any dividend (other than regular
dividends) or other distribution (whether in the form of cash, Shares, other
securities, or other property), recapitalization, stock split, reverse stock
split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase, or exchange of Shares, or other similar corporate transaction or
event affects the Shares such that an adjustment is appropriate in order to
prevent dilution or enlargement of the benefits or potential benefits intended
to be made available under the Plan, then adjustment shall be made, in such
manner as shall be equitable, of (i) the number of Shares with respect to which
Awards may be granted, (ii) the number of Shares subject to outstanding Awards,
and (iii) the grant or exercise price with respect to any Award, provided, that
with respect to any Award no such adjustment shall be made to the extent that
such adjustment would be inconsistent with the Plan's meeting the requirements
of Section 162(m) of the Code, as from time to time amended.

         (c) Sources of Shares Deliverable under Awards. Any Shares delivered
pursuant to an Award may consist, in whole or in part, of authorized and
unissued Shares or of treasury Shares.

SECTION 5. ELIGIBILITY.

         Any employee (including an officer, Executive Officer or director) of
the Company or any Affiliate, including any non-employee director, advisor,
consultant or independent contractor to the Company or any Affiliate, shall be
an Eligible Participant. To the extent the Board deems it necessary, appropriate
or desirable to comply with foreign law or practice and to further the purpose
of this Plan, the Board may, without amending this Plan, (i) establish rules
applicable to Awards granted to Participants who are foreign nationals, are
employed outside the United States, or both, including rules that differ from
those set forth in this Plan, and (ii) grant Awards to such Participants in
accordance with those rules.

SECTION 6. STOCK OPTIONS - TERMS AND CONDITIONS.

         All Options granted under the Plan shall be either Incentive Stock
Options or Non-Qualified Stock Options and shall be evidenced by Award
Agreements which shall be subject to applicable provisions of the Plan and such
other provisions as they may contain including:

         (a) PRICE. The exercise price per Share shall not be less than 100% of
the Fair Market Value of a Share on the date of Award.

<PAGE>

         (b) PERIOD. The Board, upon recommendation of the Committee may
establish the term of any Option award under the Plan, provided, however, that
an Option shall expire no later than 10 years from the date of Award, and may
not be exercisable less than six months from the date it is granted.

         (c) TIME OF EXERCISE. The Board, upon recommendation of the Committee,
may grant Options to Participants with vesting schedules based on the Company's
publicly traded share price exceeding predetermined levels for designated
periods of time, and/or the passage of time, such that the Option becomes fully
exercisable in a series of installments. The Board, upon recommendation of the
Committee, may also establish other conditions of exercise and may accelerate
the exercisability of any Option granted to a Participant under the Plan.

         (d) PAYMENT. No Shares shall be delivered pursuant to any exercise of
an Option until payment in full of the option price in cash, or its equivalent,
or by exchanging Shares owned by the optionee (which are not the subject of any
pledge or other security interest), or by a combination of the foregoing,
provided that the combined value of all cash and cash equivalents and the Fair
Market Value of any such Shares so tendered to the Company as of the date of
such tender is at least equal to such option price.

         (e) EXERCISE. An Option, or portion thereof, shall be exercised by
delivery of a written notice of exercise to the Company. A Participant shall not
have any of the rights or privileges of the holder of Common Stock until such
time as Shares of Common Stock are issued or transferred to the Participant.

         (f) RESTRICTIONS ON INCENTIVE STOCK OPTIONS. The aggregate Fair Market
Value (determined as of the Grant Date) of shares of Common Stock with respect
to which all Incentive Stock Options first become exercisable by any grantee in
any calendar year under this or another plan of the Company and its Affiliates
may not exceed $100,000 or such other amount as may be permitted from time to
time under Section 422 of the Code. To the extent that such aggregate Fair
Market Value shall exceed $100,000, or other applicable amount, such Options
(taking Options into account in the order in which they were granted) shall be
treated as Non-Qualified Stock Options. In such case, the corporation may
designate the shares of Common Stock that are to be treated as stock acquired
pursuant to the exercise of any Incentive Stock Option by issuing a separate
certificate for such shares and identifying the certificate as Incentive Stock
Option shares in the stock transfer records of the Company.

         The exercise price of any Incentive Stock Option granted to a grantee
who owns (within the meaning of Section 422(b)(6) of the Code, after the
application of the attribution rules in Section 424(d) of the Code) more than
10% of the total combined voting power of all classes of shares of the
Corporation or its Parent or Subsidiary corporations (within the meaning of
Sections 422 and 424 of the Code) shall be not less than 110% of the Fair Market
Value of the Common Stock on the grant date and the term of such Option shall
not exceed five years.

         (g) OTHER TERMS AND CONDITIONS. Options may contain such other
provisions, not inconsistent with the provisions of the Plan, as the Committee
shall determine appropriate from time to time. No Option shall be an Incentive
Stock Option unless so designated by the Committee at the time of grant or in
the Grant Agreement evidencing such Option.

SECTION 7. RESTRICTED STOCK

         (a) GRANT BY COMPANY. The Board, upon recommendation of the Committee,
shall have authority to determine the Participants to whom Shares of Restricted
Stock (including Premium Shares, as defined below) shall be granted, the number
of Shares of Restricted Stock to be granted to each Participant, and the other
terms and conditions of such Awards.

         (b) PARTICIPANT ELECTION. Each Participant may elect Restricted Stock
in lieu of a portion of any annual cash bonus earned by such Participant up to
20% of such annual cash bonus. Such election is a one-time election to be made
annually during a Trading Window, as defined in the Company's Trading Policy,
with the right to amend the election in writing up to a maximum of two times per
fiscal year during Trading Windows only. Such Restricted Stock will vest ratably
over a period of years as determined by the Board. Such Restricted Stock may
have a premium in shares (the

<PAGE>

"Premium Shares") greater than the portion of the bonus to be paid in Restricted
Shares, as determined by the Board, which Premium Shares shall be delivered to
the Participant when the Award is fully vested, provided that the Participant is
in the employ of the Company when vesting occurs.

         (c) TRANSFER RESTRICTIONS. The Company shall deliver certificates for
Restricted Shares to the Participant or the Participant's legal representative
upon the lapse of all restrictions applicable to such shares of Restricted
Stock.

         (d) PAYMENT. Each share of Restricted Stock shall be paid in Shares,
upon the lapse of the restrictions applicable thereto, or otherwise in
accordance with the applicable Award Agreement.

         (e) RIGHTS OF OWNERSHIP. The Participant shall have all rights of
ownership to the Restricted Stock, including voting rights, dividends and other
distributions paid on or in respect of any Shares of Restricted Stock, except
for rights of transfer, which shall not exist until vesting has occurred.

SECTION 8. TERMINATION OF EMPLOYMENT.

         (a) In the event a Participant (other than a Non-Employee Director)
shall cease to be employed by the Corporation while he is holding one or more
Options, each outstanding Option which is exercisable on the date of such
termination shall expire at the earlier of the expiration of its term or one
year, unless the Board determines otherwise.

         Unless otherwise determined by the Board, any portion of an Option held
by a Participant (other than a Non-Employee Director) that is not exercisable on
the date such Participant's employment terminates shall expire as of such
termination date.

         (b) RESTRICTED STOCK. In the event of a Participant's retirement,
permanent and total disability, or death, or in cases of special circumstances,
the Board may, when it finds that a waiver would be in the best interest of the
Company, waive in whole or in part, any or all remaining restrictions with
respect to such Participant's entitlement to shares of Restricted Stock,
including any Premium Shares. In the event of a Participant's death while in the
employ of the Company, any or all remaining restrictions with respect to such
Participant's entitlement to shares of restricted stock shall be deemed waived
by the Board.

SECTION 9. TERMINATION OF SERVICE AS A DIRECTOR.

         (a) In the event a Director shall cease to serve as a Director of the
Corporation while he or she is holding one or more Options, each outstanding
Option which is exercisable as of the date of such termination shall expire at
the earlier of the expiration of its term or one year, unless the Board
determines otherwise.

         Unless otherwise determined by the Board, any portion of an Option held
by a Director which has not become exercisable as of the date a Director ceases
to serve as a Director of the Corporation shall terminate as of such date.

SECTION 10. CHANGE IN CONTROL.

Notwithstanding any other provision of the Plan to the contrary, upon a Change
in Control all outstanding Awards shall vest, become immediately exercisable or
payable and have all restrictions lifted as may apply to the type of Award.

SECTION 11. AMENDMENT AND TERMINATION.

         (a) AMENDMENTS TO THE PLAN. The Board may amend, alter, suspend,
discontinue, or terminate the Plan or any portion thereof at any time; provided
that no such amendment, alteration, suspension discontinuation or termination
shall be made without stockholder approval to: increase the number of shares
issuable; reduce the exercise price or otherwise reprice an Option, whether
previously granted or to be granted, or extend the termination period of the
Plan. The Board, however, may not amend or terminate the Plan without a
Participant's consent insofar as it would adversely affect a Participant's
rights to previously granted Awards.

<PAGE>

         (b) CANCELLATION. Any Award granted hereunder may be canceled with the
approval and agreement of the Participant in consideration of a cash payment or
alternative Award made to the holder of such canceled Award equal in value to
the Fair Market Value of such canceled Award.

SECTION 12. GENERAL PROVISIONS

         (a) NONTRANSFERABILITY. No Award shall be assigned, alienated, pledged,
attached, sold or otherwise transferred or encumbered by a Participant, except
by will or the laws of descent and distribution or pursuant to a QDRO.

         (b) NO RIGHTS TO AWARDS. No Participant or other Person shall have any
claim to be granted any Award, and there is no obligation for uniformity of
treatment of Participants, or holders or beneficiaries of Awards. The terms and
conditions of Awards need not be the same with respect to each recipient.

         (c) SHARE CERTIFICATES. All certificates for Shares or other securities
of the Company delivered under the Plan pursuant to any Award or the exercise
thereof shall be subject to such stop transfer orders and other restrictions as
the Board may deem advisable under the Plan or the rules, regulations, and other
requirements of the Securities and Exchange Commission, any stock exchange upon
which such Shares or other securities are then listed, and any applicable
Federal or state laws, and a legend or legends may be put on any such
certificates to make appropriate reference to such restrictions.

         (d) WITHHOLDING. A Participant may be required to pay to the Company
and the Company shall have the right and is hereby authorized to withhold from
any Award, from any payment due or transfer made under any Award or under the
Plan or from any compensation or other amount owing to a Participant the amount
(in cash, or Shares), of any applicable withholding taxes in respect of an
Award, its exercise, or any payment or transfer under an Award or under the Plan
and to take such other action as may be necessary in the opinion of the Company
to satisfy all obligations for the payment of such taxes.

         (e) AWARD AGREEMENTS. Each Award hereunder shall be evidenced by an
Award Agreement that shall be delivered to the Participant and shall specify the
terms and conditions of the Award and any rules applicable thereto.

         (f) NO RIGHT TO EMPLOYMENT. The grant of an Award shall not be
construed as giving a Participant the right to be retained in the employ of the
Company or any Affiliate. Further, the Company or an Affiliate may at any time
dismiss a Participant from employment, free from any liability or any claim
under the Plan, unless otherwise expressly provided in the Plan or in any Award
Agreement.

         (g) RIGHTS AS STOCKHOLDER. No holder of an Award of stock options or
beneficiary of any such Award shall have any rights as a stockholder with
respect to such options until he or she has exercised such option and become the
holder of Shares. In connection with each grant of Restricted Stock hereunder,
the applicable Award shall be entitled to the rights of a stockholder in respect
of such Restricted Stock, except for such transfer restrictions as may be
applicable thereto.

         (h) GOVERNING LAW. The validity, construction, and effect of the Plan
and any rules and regulations relating to the Plan and any Award Agreement shall
be determined in accordance with the laws of the State of New York.

         (i) SEVERABILITY. If any provision of the Plan or any Award is or
becomes or is deemed to be invalid, illegal, or unenforceable in any
jurisdiction or as to any Person or Award, or would disqualify the Plan or any
Award under any applicable law, such provision shall be construed or deemed
amended to conform to the applicable laws, or if it cannot be construed or
deemed amended without, in the determination of the Board, materially altering
the intent of the Plan or the Award, such provision shall be stricken as to such
jurisdiction, Person or Award and the remainder of the Plan and any such Award
shall remain in full force and effect.

<PAGE>

         (j) OTHER LAWS. The Company may refuse to issue or transfer any Shares
or other consideration under an Award if, it determines that the issuance or
transfer of such shares might violate any applicable law or regulation or
entitle the Company to recover the same under Section 16(b) of the Exchange Act,
and any payment tendered to the Company by a Participant, other holder or
beneficiary in connection with the exercise of such Award shall be promptly
refunded to the relevant Participant, holder, or beneficiary. Without limiting
the generality of the foregoing, no Award granted hereunder shall be construed
as an offer to sell securities of the Company, and no such offer shall be
outstanding, unless the Board has determined that any such offer, if made, would
be in compliance with all applicable requirements of the U.S. federal securities
laws any other laws to which such offer, if made, would be subject.

         (k) NO TRUST FUND CREATED. Neither the Plan nor any Award shall create
or be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company and a Participant or any other Person. To the
extent that any Person acquires rights pursuant to an Award, such rights shall
be no greater than the rights of any unsecured general creditor of the Company.

         (l) NO OBLIGATION TO EXERCISE OPTIONS. The granting of an Option shall
impose no obligation upon the Participant to exercise such Option.

         (m) PLAN EXPENSES. Any expenses of administering this Plan shall be
borne by the Company.

         (n) NO WARRANTY OF TAX EFFECT. Except as may be contained in any Award
Agreement, no opinion shall be deemed to be expressed or warranties made as to
the effect of foreign, federal, state, or local tax on any Awards.

SECTION 13. RESTATEMENT OF SHARE OWNERSHIP GUIDELINES.

         (a) APPLICABILITY. The Board established the one-time Share ownership
guidelines in connection with its adoption of the Company's 1998 Omnibus Equity
Award Plan. These guidelines are restated in paragraph 13 (d) below. These
guidelines are applicable to the Chief Executive Officer of the Company ("CEO")
and to managerial Participants designated by the Board (together, "Designated
Participants").

         (b) MEASUREMENT. Share ownership guidelines are in terms of the Fair
Market Value of Shares to be owned relative to the positions held and the base
salaries of the Designated Participants. Ownership levels and guidelines will be
reviewed (and if advisable modified) by the Board (upon recommendation of the
Committee) periodically, based on internal reports and overall operations of the
Company.

         (c) TARGETED LEVELS. Designated Participants will either from inception
of the Company's 1998 Omnibus Equity Award Plan or commencement of employment
have five years to reach the targeted guideline levels of Share ownership set
forth in Paragraph 13 (d) below (except, that if a Designated Participant's Base
Salary is increased from under $100,000 to $100,000 or more, such Participant
will have only three years from the date of the increase in Base Salary to reach
the targeted guideline level of share ownership), which levels can be changed,
modified, or suspended by the Board. Restricted Stock awarded to a Participant
shall be included in calculating Shares owned.

         (d) GUIDELINES. The one-time share ownership guidelines are as follows:

                  (i)      The CEO shall at all times own Shares with a Fair
                           Market Value equal to two times his or her Base
                           Salary.

                  (ii)     All other Designated Participants with a Base Salary
                           of less than $100,000 shall at all times own Shares
                           with a Fair Market Value equal to one-half his or her
                           Base Salary.

                  (iii)    All other Designated Participants with a Base Salary
                           of $100,000 or more shall at all times own Shares
                           with a Fair Market Value equal to his or her Base
                           Salary.

<PAGE>

SECTION 14. EFFECTIVE DATE; TERMINATION DATE

         The Plan is effective as of September 5, 2002, the date on which the
Plan was adopted by the Board, subject to approval of the shareholders within
twelve months of such date. Unless previously terminated, the Plan shall
terminate on the close of business on September 5, 2012, ten years from its
effective date. Subject to other applicable provisions of the Plan, all Options
granted under the Plan prior to termination of the Plan shall remain in effect
until such Options have been satisfied or terminated in accordance with the Plan
and the terms of such Options.

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