Document:

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                                                                    Exhibit 10.4

                         CARLISLE COMPANIES INCORPORATED

                              NONEMPLOYEE DIRECTORS

                                STOCK OPTION PLAN

                       (Effective as of December 1, 1999)

         1.       PURPOSE. The Carlisle Companies Incorporated Nonemployee
Directors Stock Option Plan (the "Plan") is intended to advance the interests of
Carlisle Companies Incorporated (the "Company") and its stockholders by
attracting, retaining and motivating the performance of nonemployee Directors
(each a "Nonemployee Director") of the Company, and to encourage and enable
Nonemployee Directors to acquire and retain a proprietary interest in the
Company by ownership of its stock.

         2.       ADMINISTRATION.

                  (a) Subject to the express provisions of the Plan, the Board
of Directors of the Company (the "Board") shall have discretionary authority to
interpret the Plan, to prescribe, amend and rescind rules and regulations
relating to it, to determine the details and provisions of each Stock Option
Agreement (as defined in Section 7 of the Plan), and to make all determinations
necessary or advisable in the administration of the Plan. All such actions and
determinations by the Board shall be conclusively binding for all purposes and
upon all persons. Notwithstanding the foregoing or anything elsewhere in the
Plan, with respect to any Option granted under the Plan, the Board shall have no
discretionary authority to determine the number of shares of the Company's
common stock (the "Carlisle Shares") covered by such Option, the option price
for the Carlisle Shares or the date of grant, all such determinations occurring
automatically pursuant to Section 5(b) of the Plan. The Board shall not be
liable for any action or determination made in good faith with respect to the
Plan, any Option or any Stock Option Agreement entered into hereunder.

                  (b) "Option" means an option to purchase Carlisle Shares
granted under the Plan.

         3.       NUMBER OF CARLISLE SHARES SUBJECT TO PLAN. Subject to
adjustment pursuant to the provisions of Section 4 of the Plan, the maximum
number of Carlisle Shares which may be issued and sold hereunder shall be
200,000 and all such Shares must be held in the Company's treasury. Carlisle
Shares covered by an Option that shall have been exercised shall not again be
available for an Option grant. If an Option shall terminate for any reason
without being wholly exercised, the number of Carlisle Shares to which such
Option termination relates shall again be available for grant.

         4.       ANTIDILUTION. In the event of a reorganization,
recapitalization, stock split, stock dividend, combination of shares, merger or
consolidation, or the sale, conveyance, lease or other transfer by the Company
of all or substantially all of its property, or any other change in the
corporate structure or shares of the Company, pursuant to any of which events
the then outstanding Carlisle Shares are split up or combined, or are changed
into, become exchangeable at the holder's election for, or entitle the holder
thereof to, other shares of stock, or in the case of any other transaction
described in Section 424(a) of the Internal Revenue Code of 1986, as amended
(the "Code"), the Board may proportionately change the number and kind of shares
(including by substitution of shares of another corporation) subject to the
Options and/or the option price of such shares in the manner that it may deem to
be equitable and appropriate.

         5.       OPTION GRANTS.

                  (a) Effective December 1, 1999 and as authorized by resolution
of the Board, the Company grants each Nonemployee Director serving at such time
an Option to purchase 5,000 Carlisle Shares at an option price of $35.1875, the
closing price on the New York Stock Exchange ("NYSE") of the Carlisle Shares on
December 1, 1999.

                  (b) Commencing in 2001 and each year thereafter for the
duration of the Plan, on the date of the Company's February Board of Directors'
meeting for the applicable year (or such other date as the Board shall
determine), the Company shall grant each Nonemployee Director serving at such
time an Option to purchase 1,000 Carlisle Shares at an option price equal to the
closing price on the NYSE of the Carlisle Shares on the date of such

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meeting; PROVIDED, HOWEVER, that each such grant shall be conditioned upon the
Company's net earnings for the immediately preceding calendar year equaling or
exceeding the net earnings set forth in the approved Operating Plan for such
year.

         6.       VESTING; TERM OF OPTIONS.

                  (a) Each Option shall vest and become exercisable as follows:
(i) one-third (1/3) on the date of grant, (ii) an additional one-third (1/3) on
the one year anniversary of the date of grant, and (iii) the remaining one-third
(1/3) on the second anniversary of the date of grant, PROVIDED that the
Nonemployee Director to whom such Option was granted remains a Nonemployee
Director on those dates. In addition, all Options granted to a Nonemployee
Director whose term as a Director ends as a result of the death, Permanent or
Total Disability (as defined in Section 10(b) of the Plan) or a Change in
Control (as defined in Section 10(c) of the Plan) shall vest and become
exercisable immediately upon the expiration of his or her term.

                  (b) Notwithstanding anything elsewhere in the Plan to the
contrary, an unexercised Option shall expire on the day immediately preceding
the ten year anniversary of grant (the "Expiration Date").

         7.       STOCK OPTION AGREEMENT. The Company and each Nonemployee
Director granted an Option hereunder (the "Optionee") shall enter into a stock
option agreement (the "Stock Option Agreement") which shall set forth such terms
and conditions of the Option as may be determined by the Board to be consistent
with the Plan, and which may include additional provisions and restrictions that
are not inconsistent with the Plan.

         8.       OPTION EXERCISE. A vested Option may be exercised in whole or
in part at any time (but in respect to whole Carlisle Shares only) within the
period permitted for the exercise thereof, and shall be exercised by written
notice of intent to exercise the Option for a specified number of Carlisle
Shares delivered to the Company at its principal office, and payment in full of
the option price for the specified number of Carlisle Shares. The option price
shall be payable in cash.

         9.       TRANSFERABILITY OF OPTIONS. All Options shall be
nontransferable except (i) upon the Optionee's death, by the Optionee's will or
the laws of descent and distribution or (ii) on a case-by-case basis as may be
approved by the Board in its discretion.

         10.      TERMINATION OF SERVICE.

                  (a) If an Optionee's service as a member of the Board shall
terminate as a result of death, all non-vested Options shall vest and become
exercisable and the executor or administration of the estate of the decedent, or
the person or persons to whom an Option shall have been validly transferred
pursuant to will or the laws of descent and distribution, shall exercise all
outstanding Options by the earlier of (i) twelve months from the date of
termination, or (ii) the Expiration Date. Any Options not so exercised shall be
forfeited.

                  (b) If an Optionee's service as a member of the Board shall
terminate as a result of his Permanent and Total Disability, all non-vested
Options shall vest and become exercisable and the Optionee (or in the case of an
Optionee who is legally incapacitated, his guardian or legal representative)
shall exercise all outstanding Options by the earlier of (i) twelve months from
the date of termination, or (ii) the Expiration Date. All Options not so
exercised shall be forfeited. "Permanent and Total Disability" means the
inability of an Optionee to perform his duties as a member of the Board by
reason of any medically determinable physical or mental impairment which can be
expected to result in death or which has lasted or can be expected to last for a
continuous period of not less than 12 months.

                  (c) If an Optionee's service as a member of the Board shall
terminate in connection with a Change in Control of the Company, all non-vested
Options shall vest and become exercisable and the Optionee shall exercise all
outstanding Options by the earlier of (i) twelve months from the date of
termination, or (ii) the Expiration Date. All Options not so exercised shall be
forfeited.

                           For purposes of this Plan, the following definitions
shall apply:

                           "Change in Control" shall occur in the event: (i) any
Person shall become directly or indirectly, the Beneficial Owner of securities
of the Company representing fifty percent (50%) or more of the combined

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voting power of the Company's then outstanding securities for the election of
directors or fifty percent (50%) or more of the Company's then outstanding
shares of common stock, or (ii) any Person commences a tender offer pursuant to
Regulation 14D promulgated by the Securities and Exchange Commission under the
Securities Exchange Act of 1934, or any successor provision thereto, which, if
successful, would result in such Person becoming the Beneficial Owner of fifty
percent (50%) or more of the combined voting power of the Company's then
outstanding securities for the election of directors or fifty percent (50%) or
more of the Company's then outstanding shares of commons stock.

                           "Affiliate" and "Associate" shall have the meanings
of such terms under Rule 12b-2 of the General Rules and Regulations under the
Securities Exchange Act of 1934;

                           "Beneficial Owner" shall have the meaning given such
term under Rule 13d-3 of the General Rules and Regulations under the Securities
Exchange Act of 1934;

                           "Person" shall mean and include any individual,
corporation, partnership or other person or entity and any Group and all
Affiliates and Associates of any such individual, corporation, partnership, or
other person or entity or Group;

                           "Group" shall mean persons and entities that act in
concert as described in Section 14(d)(2) of the Securities Exchange Act of 1934
(other than the Company or any subsidiary thereof and other than any
profit-sharing employee stock ownership or any other employee benefit plan of
the Company or such subsidiary, or any trustee of or fiduciary with respect to
any such plan when acting in any such capacity and other than any executive
officer of the Company).

                  (d) If an Optionee's service as a member of the Board shall
terminate for any reason other than death, Permanent and Total Disability,
Change in Control or removal for cause, all non-vested Options shall remain
non-vested and the Optionee shall exercise each previously vested Option by the
earlier of (i) ninety days from the date of termination, or (ii) the Expiration
Date. Any Option not so exercised shall be forfeited.

                  (e) If an Optionee shall be removed from the Board for cause,
the Optionee's right to exercise any unexercised portion of his Options shall
immediately terminate and all rights thereunder shall cease. An Optionee shall
be considered to have been removed for "cause" when he or she shall have been
removed from the Board by the stockholders of the Company for cause in
accordance with applicable state law and the Restated Certificate of
Incorporation of the Company.

         11.      ISSUANCE OF CERTIFICATES. The Company shall issue a stock
certificate in the name of the Optionee (or other person exercising the Option
in accordance with the provisions of the Plan) for the Carlisle Shares purchased
by exercise of an Option as soon as practicable after due exercise and payment
of the option price for such Carlisle Shares.

         12.      TERMINATION; AMENDMENT. The Plan shall continue until
terminated by the Board. The Board may at any time amend or modify the Plan;
PROVIDED, HOWEVER, that the Board may not act more than once every six months to
amend the provisions of the Plan relating to the determination of the number of
Carlisle Shares subject to a particular Option, the option price or the date of
grant of any Option under the Plan. Notwithstanding the foregoing, no amendment
or modification of the Plan shall in any manner affect any Option previously
granted without the consent of the Optionee.

         13.      MISCELLANEOUS.

                  (a) Nothing in the Plan, in the grant of any Option or in any
Stock Option Agreement shall confer upon any Nonemployee Director the right to
continued service as a member of the Board.

                  (b) An Optionee or the permitted transferee of an Option shall
have no rights as a shareholder with respect to any Carlisle Shares subject to
Option prior to the purchase of the Carlisle Shares by exercise of the Option.
Nothing contained in the Plan or in the Stock Option Agreement shall create an
obligation on the part of the Company to repurchase any Carlisle Shares acquired
hereunder.

                  (c) The Plan shall be binding upon the Company, its successors
and assigns, and the Optionee, his executor , administrator and permitted
transferees.

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                  (d) Whenever used herein, nouns in the singular shall include
the plural, and the masculine pronoun shall include the feminine gender.

                  (e) If any provision of the Plan or any Stock Option Agreement
shall be determined to be illegal or unenforceable by any court of law in any
jurisdiction, the remaining provisions hereof and thereof shall be severable and
enforceable in accordance with their terms, and all provisions shall remain
enforceable in any other jurisdiction.

                  (f) The validity and construction of the Plan and the Stock
Option Agreements shall be governed by the laws of the State of New York.<PAGE>

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT is entered into as of July 21, 1998, by and between
GERALD C. HSU (the "EMPLOYEE") and AVANT! CORPORATION, a Delaware corporation
(the "COMPANY"). This Agreement amends and restates the Employment Agreement
between the parties dated July 21, 1997.

1.       TERM OF EMPLOYMENT.

         (a)      BASIC RULE. The Company agrees to continue the Employee's
         employment, and the Employee agrees to remain in employment with the
         Company, from the date of this Agreement until the date when the
         Employee's employment terminates pursuant to Subsection (b) below.

         (b)      TERMINATION. The Company may terminate the Employee's
         employment at any time and for any reason by giving the Employee 30
         days' advance notice in writing. The Employee may resign his employment
         by giving the Company 30 days' advance notice in writing. The
         Employee's employment shall terminate automatically in the event of his
         death. Any waiver of notice shall be valid only if it is made in
         writing and expressly refers to the applicable notice requirement of
         this Section 1.

         (c)      TERMINATION OF AGREEMENT. This Agreement shall terminate when
         all obligations of the parties hereunder have been satisfied.

         (d)      RIGHTS UPON TERMINATION. Unless otherwise defined in this
         subsection, each capitalized term used in this subsection shall have
         the meaning assigned to it in the Company's 1995 Stock Option/Stock
         Issuance Plan in effect on the date of this Agreement (the "PLAN").
         Upon any Involuntary Termination (as hereinafter defined) of Employee's
         employment, and subject to subsection 1(e) below: (1) the Company shall
         pay to Employee a cash termination payment equal to three times the
         amount of Employee's annual base salary in effect on the date of
         termination, in addition to any other payments, benefits or other
         rights to which Employee may then be entitled; (2) the shares of Common
         Stock then subject to any option granted by the Company to Employee and
         then outstanding (including but not limited to any such option that may
         hereafter be granted to Employee, under the Plan or otherwise) but not
         otherwise vested shall automatically vest in full; and (3) all
         outstanding repurchase rights applicable to any Common Stock previously
         issued to the Employee by the Company (including any Common Stock
         hereafter issued which is then held by Employee) shall also terminate
         automatically. If any provision of the preceding sentence regarding
         acceleration of options or early termination of repurchase rights shall
         conflict with any provision of any existing or future option agreement,
         stock purchase agreement or other agreement

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         between Employee and the Company, the provisions of the preceding
         sentence shall govern if they are more favorable to Employee under the
         circumstances than the conflicting provisions in such other agreement,
         unless such other agreement expressly refers to the preceding sentence
         and states that it is intended to govern in the event of such a
         conflict with such sentence.

         As used in this subsection, "INVOLUNTARY TERMINATION" shall mean a
         termination of Employee's employment with the Company which occurs by
         reason of:

                  (i)      Employee's involuntary dismissal or discharge by the
                  Company for reasons other than Misconduct (as defined below in
                  this subsection), or

                  (ii)     Employee's voluntary resignation within six months
                  after a Change in Control or a Corporate Transaction; or

                  (iii)    Employee's voluntary resignation within six months
                  after any of the following events occurs without Employee's
                  written consent:

                           (A)      a change in Employee's position or title
                  with the Company which materially reduces his level of
                  responsibility,

                           (B)      a reduction by more than fifteen percent
                  (15%) in Employee's level of compensation -- including base
                  salary, non-stock-related fringe benefits and cash bonus (to
                  the extent that any reduction in bonus is disproportionate to
                  a reduction in the Company's earnings per share between (i)
                  the period for which the reduced bonus is paid, and (ii) the
                  period for which Employee's most recent prior bonus was paid).

                           (C)      a relocation of Employee's place of
                  employment by more than fifty (50) miles.

         As used in this subsection, "MISCONDUCT" shall mean any of the
         following conduct by Employee occurring on or after the date hereof in
         connection with the performance of his duties hereunder which adversely
         affects the business or affairs of the Company (or any Parent or
         Subsidiary) in a material manner: (1) the commission of any act of
         fraud, embezzlement or dishonesty, (2) the unauthorized use or
         disclosure by Employee of confidential information or trade secrets of
         the Company (or any Parent or Subsidiary), or (3) any other intentional
         misconduct of Employee.

         Except as provided above in this subsection with respect to an
         Involuntary Termination, upon the termination of the Employee's
         employment pursuant to this Section 1, the Employee shall only be
         entitled to the compensation, benefits and reimbursements described in
         Sections 3, 4 and 5 for the period preceding the effective date of the
         termination. The payments under this Agreement shall fully discharge
         all responsibilities of the Company to the Employee.

                                       2

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         (e)      LIMITATION ON PAYMENTS UNDER SUBSECTION 1(d).

                  (1)      APPLICATION OF LIMITATION. This Subsection 1(e) shall
         apply only if the Employee, on an after-tax basis, would receive more
         value under an Involuntary Termination that is subject to subsection
         1(d) after the application of this subsection 1(e) than the Employee
         would receive before the application of this subsection 1(e). For this
         purpose, "AFTER-TAX BASIS" shall mean a calculation taking into account
         all federal and state income and excise taxes imposed on the Employee,
         including (without limitation) the excise tax described in section 4999
         of the Internal Revenue Code of 1986, as amended (the "CODE"). If this
         subsection 1(e) is applicable, it shall supersede any conflicting
         provision of this Agreement.

                  (2)      BASIC RULE. The Company shall not make any payment or
         property transfer to, or for the benefit of, the Employee (under this
         Agreement or otherwise) that would subject the Employee to the excise
         tax described in section 4999 of the Code. All calculations required by
         this subsection 1(e) shall be performed by the independent auditors
         retained by the Company most recently prior to the Involuntary
         Termination (the "AUDITORS"), based on information supplied by the
         Company and the Employee, and shall be binding on the Company and the
         Employee. All fees and expenses of the Auditors shall be paid by the
         Company.

                  (3)      REDUCTIONS. If the amount of the aggregate payments
         or property transfers to the Employee must be reduced under this
         subsection 1(e), then the Employee shall direct in which order the
         payments or transfers are to be reduced, but no change in the timing of
         any payment or transfer shall be made without the Company's consent. As
         a result of uncertainty in the application of section 4999 of the Code
         at the time of an initial determination by the Auditors hereunder, it
         is possible that a payment will have been made by the Company that
         should not have been made (an "OVERPAYMENT") or that an additional
         payment that will not have been made by the Company could have been
         made (an "UNDERPAYMENT"). In the event that the Auditors, based upon
         the assertion of a deficiency by the Internal Revenue Service against
         the Employee that the Auditors believe has a high probability of
         success, determine that an Overpayment has been made, such Overpayment
         shall be treated for all purposes as a loan to the Employee that he
         shall repay to the Company, together with interest at the applicable
         federal rate specified in section 7872(f)(2) of the Code; provided,
         however, that no amount shall be payable by the Employee to the Company
         if and to the extent that such payment would not reduce the amount that
         is subject to an excise tax Under section 4999 of the Code. In the
         event that the Auditors determine that an Underpayment has occurred,
         such Underpayment shall promptly be paid or transferred by the Company
         to, or for the benefit of, the Employee, together with interest at the
         applicable federal rate specified in section 7872(f)(2) of the Code.

                                       3

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2.       DUTIES AND SCOPE OF EMPLOYMENT.

         (a)      POSITION. The Company agrees to employ the Employee as its
         President, Chief Executive Officer and Chairman of the Board of
         Directors for the term of his employment under this Agreement
         ("Employment").

         (b)      OBLIGATIONS. During the term of his Employment, the Employee
         shall devote his full business efforts and time to the Company and its
         subsidiaries, affiliates and investments. He shall not render services
         to any other person or entity without the express prior approval of the
         Company's Board of "Directors (the "BOARD").

3.       CASH COMPENSATION.

         (a)      SALARY. The Company agrees to pay the Employee as compensation
         for his services a base salary at an annual rate of not less than
         $600,000. Such salary shall be payable in accordance with the Company's
         standard payroll procedures.

         (b)      BONUS OPPORTUNITY. The Employee shall have the opportunity to
         earn an annual bonus in an amount to be determined by the Board.

4.       EMPLOYEE BENEFITS. During the term of his Employment, the Employee
shall be eligible to participate in the employee benefit plans maintained by the
Company, subject in each case to the generally applicable terms and conditions
of the plan in question and to the determinations of any person or committee
administering such plan.

5.       BUSINESS EXPENSES. During the term of his Employment, the Employee
shall be authorized to incur necessary and reasonable travel, entertainment and
other business expenses in connection with his duties hereunder. The Company
shall reimburse the Employee for such expenses upon presentation of an itemized
account and appropriate supporting documentation, all in accordance with the
Company's generally applicable policies.

6.       SUCCESSORS.

         (a)      COMPANY'S SUCCESSORS. This Agreement shall be binding upon any
         successor (whether direct or indirect and whether by purchase, lease,
         merger, consolidation, liquidation or otherwise) to all or
         substantially all of the Company's business and/or assets. For all
         purposes under this Agreement, the term "COMPANY" shall include any
         successor to the Company's business and/or assets which becomes bound
         by this Agreement.

         (b)      EMPLOYEE'S SUCCESSORS. This Agreement and all rights of the
         Employee hereunder shall inure to the benefit of, and be enforceable
         by, the Employee's personal or legal representatives, executors,
         administrators, successors, heirs, distributees, devisees and legatees.

                                       4

<PAGE>

7.       MISCELLANEOUS PROVISIONS.

         (a)      NOTICE. Notices and all other communications contemplated by
         this Agreement shall be in writing and shall be deemed to have been
         duly given when personally delivered or when mailed by U.S. registered
         mail, return receipt requested and postage prepaid. In the case of the
         Employee, mailed notices shall be addressed to him at the home address
         which he most recently communicated to the Company in writing. In the
         case of the Company, mailed notices shall be addressed to its corporate
         headquarters, and all notices shall be directed to the attention of its
         Secretary.

         (b)      WAIVER. No provision of this Agreement shall be modified,
         waived or discharged unless the modification, waiver or discharge is
         agreed to in writing and signed by the Employee and by an authorized
         officer of the Company (other than the Employee). No waiver by either
         party of any breach of, or of compliance with, any condition or
         provision of this Agreement by the other party shall be considered a
         waiver of any other condition or provision or of the same condition or
         provision at another time.

         (c)      WHOLE AGREEMENT; MODIFICATIONS. No agreements, representations
         or understandings (whether oral or written and whether express or
         implied) which are not expressly set forth in this Agreement have been
         made or entered into by either party with respect to the subject matter
         hereof. This Agreement contains the entire understanding of the parties
         with respect to the subject matter hereof. A modification of this
         Agreement shall be valid only if it is made in writing and executed by
         both parties hereto.

         (d)      WITHHOLDING TAXES. All payments made under this Agreement
         shall be subject to reduction to reflect taxes or other charges
         required to be withheld by law.

         (e)      CHOICE OF LAW. The validity, interpretation, construction and
         performance of this Agreement shall be governed by the laws of the
         State of California (except their provisions governing the choice of
         law).

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

         (g)      NO ASSIGNMENT. The rights of any person to payments or
         benefits under this Agreement shall not be made subject to option or
         assignment, either by voluntary or involuntary assignment or by
         operation of law, including (without limitation) bankruptcy,
         garnishment, attachment or other creditor's process, and any action in
         violation of this Subsection (h) shall be void.

                                       5

<PAGE>

         (h)      COUNTERPARTS. This Agreement may be executed in two or more
         counterparts, each of which shall be deemed an original, but all of
         which together shall constitute one and the same instrument.

                  IN WITNESS WHEREOF, each of the parties has executed this
Agreement, in the case of the Company by its duly authorized officer, as of the
day and year first above written.

                               /s/ Gerald C. Hsu
                               -----------------------------------
                               GERALD C. HSU ("EMPLOYEE")

                               AVANT! CORPORATION

                               By  /s/  Charles St. Clair
                                  --------------------------------
                               Title  Member of the Board and
                                      ----------------------------
                                      Compensation Committee
                                      ----------------------------

                                       6

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