Document:

<PAGE>

                     1999 NON-EMPLOYEE DIRECTOR PLAN OF
                                ADAMS GOLF, INC.

     1.  PURPOSE. The purpose of this Plan is to advance the interests of Adams
Golf, Inc., a Delaware corporation (the "Company"), by providing an additional
incentive to attract and retain qualified and competent directors, upon whose
efforts and judgment the success of the Company is largely dependent, through
the encouragement of stock ownership in the Company by such persons.

     2.  DEFINITIONS. As used herein, the following terms shall have the meaning
indicated:

         (a)  "Board" shall mean the Board of Directors of Adams Golf, Inc.

         (b)  "Committee" shall mean the committee, if any, appointed by the
     Board pursuant to Section 12 hereof.

         (c)  "Common Stock" shall mean the common stock, par value one tenth
     of one cent ($0.001) of the Company.

         (d)  "Date of Grant" shall mean the date on which an Option is
     granted to an Eligible Person pursuant to this Plan.

         (e)  "Director" shall mean a member of the Board.

         (f)  "Eligible Person(s)" shall mean those persons who are Directors of
     the Company and who are not employees of the Company or a Subsidiary.

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

         (h)  "Fair Market Value" of a Share on any date means the closing price
     on the business day immediately preceding such date. For this purpose, the
     closing price of a Share on any business day shall be (i) if the Common
     Stock is listed or admitted for trading on any United States national
     securities exchange, the last reported sale price of the Common Stock on
     such exchange, as reported in any newspaper of general circulation, (ii) if
     actual transactions in the Common Stock are included in the Nasdaq National
     Market or are reported on a consolidated transaction reporting system, the
     closing sales price of the Common Stock on such system, (iii) if the Common
     Stock is otherwise quoted on the Nasdaq system, or any similar system of
     automated dissemination of quotations of securities prices in common use,
     the mean between the closing high bid and low asked quotations for such day
     of the Common Stock on such system, (iv) if none of clause (i), (ii) or
     (iii) is applicable, the mean between the high bid and low asked quotations
     for the Common Stock as reported by the National Daily Quotation Service
     if at least two securities dealers have inserted both bid and asked
     quotations for the Common Stock on at least five (5) of the ten (10)
     preceding days and (v) if none of clause (i), (ii), (iii) or (iv) is
     applicable, the price determined by the Board in the exercise of its
     good faith discretion.

<PAGE>

          (i) "Internal Revenue Code" or "Code" shall mean the Internal Revenue
     Code of 1986, as it now exists or may be amended from time to time.

          (j) "Non-Employee Director" shall have the meaning set forth in Rule
     16b-3 of the Exchange Act or any successor provision thereof.

          (k) "Nonqualified Stock Option" shall mean an option that is not an
     incentive stock option as defined in Section 422 of the Internal Revenue
     Code.

          (l) "Option" (when capitalized) shall mean any option granted under
     Section 4 of this Plan.

          (m) "Optionee" shall mean a person to whom an Option is granted under
     this Plan or any successor to the rights of such person under this Plan by
     reason of the death of such person.

          (n) "Plan" shall mean this 1999 Non-Employee Director Plan of Adams
     Golf, Inc.

          (o) "Share(s)" shall mean a share or shares of the Common Stock.

          (p) "Subsidiary" shall mean any corporation or other entity, whether
     domestic or foreign, in which the Company has or obtains, directly or
     indirectly, a proprietary interest of more than fifty percent (50%) by
     reason of stock ownership or otherwise.

     Other terms shall have the meanings set forth elsewhere herein.

     3.   SHARES AND OPTIONS.

          (a) The maximum number of Shares to be issued pursuant to Options
     under this Plan, shall be Two Hundred Thousand (200,000) Shares. Shares
     issued pursuant to Options granted under this Plan may be issued from
     Shares held in the Company's treasury or from authorized and unissued
     Shares. If any Option granted under this Plan shall terminate, expire, or
     be canceled or surrendered as to any Shares, new Options may thereafter be
     granted covering such Shares.

          (b) Each Option granted hereunder shall be evidenced by an option
     agreement (an "Option Agreement") and shall contain such terms as are
     not inconsistent with this Plan or any applicable law. Any person who
     files with the Committee, in a form satisfactory to the Committee, a
     written waiver of eligibility to receive any Option under this Plan
     shall not be eligible to receive any Option under this Plan for the
     duration of such waiver. Any Option granted hereunder shall be a
     Nonqualified Stock Option.

          (c) Neither the Plan nor any Option granted under the Plan shall
     confer upon any person any right to continue to serve as a Director.

                                   -2-

<PAGE>

     4.   DISCRETIONARY GRANTS OF OPTIONS.

          (a) At any time and from time to time during the term of this Plan and
     subject to the provisions herein, Options may be granted by the Committee
     to any Eligible Person for such number of Shares as the Committee in its
     discretion shall deem to be in the best interest of the Company and which
     will serve to further the purposes of the Plan. Upon the grant of an
     Option, the Company shall promptly deliver to such Eligible Person an
     Option Agreement. Options granted pursuant to this Section 4(a) shall vest
     according to the vesting schedule provided in the Option Agreement and
     shall be exercisable for the term provided in the Option Agreement. In the
     event no term is provided in the Option Agreement, such term shall be ten
     (10) years.

          (b) The Options granted to Directors pursuant to Section 4(a) herein
     shall be in addition to any other benefits with respect to the Director's
     position with the Company or its Subsidiaries.

     5. OPTION PRICE. The option price per Share of any Option granted pursuant
to this Plan shall be one hundred percent (100%) of the Fair Market Value per
Share on the Date of Grant.

     6. EXERCISE OF OPTIONS. Options may be exercised at any time after the date
on which the Options, or any portion thereof, are vested until the Option
expires pursuant to Section 7; provided, however, that at least six months must
elapse from the date of the acquisition of the Option to the date of disposition
of the Option (other than upon exercise or conversion) or the underlying Shares.
An Option shall be deemed exercised when (i) the Company has received written
notice of such exercise in accordance with the terms of the Option Agreement,
(ii) full payment of the aggregate option price of the Shares as to which the
Option is exercised has been made and (iii) arrangements that are satisfactory
to the Committee in its sole discretion have been made for the Optionee's
payment to the Company of the amount, if any, that the Committee determines to
be necessary for the Company to withhold in accordance with applicable federal
or state income tax withholding requirements. Pursuant to procedures approved by
the Committee, tax withholding requirements, at the option of an Optionee, may
be met by withholding Shares otherwise deliverable to the Optionee upon the
exercise of an Option. Unless further limited by the Committee in any Option
Agreement, the Option price of any Shares purchased shall be paid solely in
cash, by certified or cashier's check, by money order, with Shares (but with
Shares that have been owned by the Optionee for at least six months and only if
permitted by the Option Agreement or otherwise permitted by the Committee in its
sole discretion at the time of exercise) or by a combination of the above;
provided, however, that the Committee in its sole discretion may accept a
personal check in full or partial payment of any Shares. If the exercise price
is paid in whole or in part with Shares, the value of the Shares surrendered
shall be their Fair Market Value on the date the Shares are received by the
Company. An Option shall not at any time be exercisable with respect to less
than 100 Shares unless the remaining Shares covered by the Option are less than
100 Shares.

     7. TERMINATION OF OPTION PERIOD. The unexercised portion of an Option shall
automatically and without notice terminate and become null and void at the time
of the earliest to occur of the following:

                                   -3-

<PAGE>

          (a) sixty (60) days after the date that an Optionee ceases to be a
     Director regardless of the reason therefor other than as a result of such
     termination by death of the Optionee;

          (b) one (1) year after the date that an Optionee ceases to be a
     Director by reason of death of the Optionee or six (6) months after the
     Optionee shall die if that shall occur during the sixty-day period
     described in Subsection 7(a) herein; or

          (c) the expiration date of the term of such Option.

     8.   ADJUSTMENT OF PROVISIONS.

          (a) If at any time while this Plan is in effect or unexercised Options
     are outstanding, (1) there shall be any increase or decrease in the number
     of issued and outstanding Shares through the declaration of a stock
     dividend, stock split, combination of shares or through any
     recapitalization resulting in a stock split-up, spin-off, combination or
     exchange of Shares or (2) the value of the outstanding shares of Common
     Stock of the Company is reduced by reason of an extraordinary cash
     dividend, then and in each such event:

               (i) appropriate adjustment shall be made in the maximum number of
          Shares then subject to being optioned under this Plan, so that the
          same proportion of the Company's issued and outstanding Shares shall
          continue to be subject to being so optioned; and

               (ii) appropriate adjustment shall be made in the number of Shares
          and the exercise price per Share thereof then subject to any
          outstanding Option, so that the same proportion of the Company's
          issued and outstanding Shares shall remain subject to purchase at the
          same aggregate exercise price.

          (b) Except as otherwise expressly provided herein, the issuance by the
     Company of shares of its capital stock of any class, or securities
     convertible into shares of capital stock of any class, either in connection
     with a direct sale or upon the exercise of rights or warrants to subscribe
     therefor, or upon conversion of shares or obligations of the Company
     convertible into such shares or other securities, shall not affect, and no
     adjustment by reason thereof shall be made with respect to, the number of
     or exercise price of Shares then subject to outstanding Options granted
     under this Plan.

          (c) Without limiting the generality of the foregoing, the existence of
     outstanding Options granted under this Plan shall not affect in any manner
     the right or power of the Company to make, authorize or consummate (i) any
     or all adjustments, recapitalizations, reorganizations or other changes in
     the Company's capital structure or its business; (ii) any merger or
     consolidation of the Company; (iii) any issue by the Company of debt
     securities, or preferred or preference stock that would rank above the
     Shares subject to outstanding Options; (iv) the dissolution or liquidation
     of the Company; (v) any sale, transfer or assignment of all or any part of
     the assets or business of the Company; or (vi) any other corporate act or
     proceeding, whether of a similar character or otherwise.

                                   -4-

<PAGE>

     9.   REORGANIZATIONS.

          (a) Notwithstanding anything contained in this Plan or any Option
     Agreement to the contrary, in the event of a Change of Control, as defined
     below, all or any of the following may, in the sole discretion of the
     Committee, occur with respect to any and all Options outstanding as of such
     Change of Control:

               (i) automatic acceleration of the vesting of such Options so that
          such Options may be immediately exercised in full on or before the
          relevant date fixed in the Option Agreement;

               (ii) upon exercise of an Option during the 60-day period from and
          after the date of a Change of Control, the Optionee exercising the
          Option may in lieu of the receipt of Shares upon the exercise of the
          Option, elect by written notice to the Company to receive an amount in
          cash equal to the excess of the aggregate Value (as defined below) of
          the Shares covered by the Option or portion thereof surrendered
          determined on the date the Option is exercised, over the aggregate
          exercise price of the Option (such excess is referred to herein as the
          "Aggregate Spread"); provided, however, and notwithstanding any other
          provision of this Plan, if the end of such 60-day period from and
          after the date of a Change of Control is within six months of the Date
          of Grant, such Option shall be canceled in exchange for a cash payment
          to the Optionee equal to the Aggregate Spread on the day which is six
          months and one day after the Date of Grant of such Option. As used in
          this Section 9(a), the term "Value" means the higher of (i) the
          highest Fair Market Value during the 60-day period from and after the
          date of a Change of Control and (ii) if the Change of Control is the
          result of a transaction or series of transactions described in
          paragraphs (i) or (iii) of the definition of Change of Control, the
          highest price per share of the Common Stock paid in such transaction
          or series of transactions (which in the case of paragraph (i) shall be
          the highest price per Share as reflected in a Schedule 13D filed by
          the person having made the acquisition);

               (iii) if an Optionee ceases to be a Director regardless of the
          reason therefor other than death following a Change of Control, any
          Option held by such Optionee may be exercised by such Optionee until
          the earlier of sixty (60) days after the Optionee ceases to be a
          Director or the expiration date of such Option;

               (iv) all Options become non-cancelable;

               (v) if the Option shall remain exercisable after any such Change
          of Control, from and after such Change of Control, any such Option
          shall be exercisable only for the kind and amount of securities and/or
          other property, or the cash equivalent thereof, receivable as a result
          of such Change of Control by the holder of a number of shares of stock
          for which such Option could have been exercised immediately prior to
          such Change of Control.

                                   -5-

<PAGE>

     (b) "Change of Control" of the Company shall be deemed to have occurred
upon the happening of any of the following events:

          (i) the acquisition, other than from the Company, by any individual,
     entity or group (within the meaning of Section 13(d)(3) of the Exchange
     Act) other than Royal Holding Company, Inc. or B. H. Adams of beneficial
     ownership of thirty percent (30%) or more of either the then outstanding
     shares of Common Stock of the Company or the combined voting power of the
     then outstanding voting securities of the Company entitled to vote
     generally in the election of directors;

          (ii) individuals who, as of January 1, 1999, constitute the Board as
     of the date thereof (the "Incumbent Board") cease for any reason to
     constitute at least a majority of the Board, provided that any individual
     becoming a Director subsequent to such date 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 is in connection with an actual or threatened election
     contest relating to the election of the Directors (as such terms are used
     in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act);

          (iii) approval by the stockholders of the Company of a reorganization,
     merger or consolidation of the Company, in each case, with respect to which
     the individuals and entities who were the respective beneficial owners of
     the Common Stock and voting securities of the Company immediately prior to
     such reorganization, merger or consolidation do not, following such
     reorganization, merger or consolidation, beneficially own, directly or
     indirectly, more than sixty percent (60%) of, respectively, the then
     outstanding shares of Common Stock and the combined voting power of the
     then outstanding voting securities entitled to vote generally in the
     election of directors, as the case may be, of the Company resulting from
     such reorganization, merger or consolidation;

          (iv) consummation by the Company of the sale or other disposition by
     the Company of all or substantially all of the Company's assets; or

          (v) approval by the stockholders of the Company or any order by a
     court of competent jurisdiction of a plan of liquidation of the Company.

     (c) If the Company shall consummate any merger, consolidation or other
reorganization not involving a Change of Control (a "Reorganization") in which
holders of shares of Common Stock are entitled to receive in respect of such
shares any securities, cash or other consideration (including, without
limitation, a different number of shares of Common Stock), each Option
outstanding under this Plan shall thereafter be exercisable, in accordance with
this Plan, only for the kind and amount of securities, cash and/or other
consideration receivable upon such Reorganization by a holder of the same

                                   -6-

<PAGE>

number of shares of Common Stock as are subject to that Option immediately prior
to such Reorganization, and any adjustments will be made to the terms of the
Option in the sole discretion of the Committee as it may deem appropriate to
give effect to the Reorganization.

     10. TRANSFERABILITY OF OPTIONS. Each Option Agreement shall provide that
such Option shall not be transferable by the Optionee otherwise than by will or
the laws of descent and distribution or pursuant to a qualified domestic
relations order and that so long as an Optionee lives, only such Optionee or his
or her guardian or legal representative shall have the right to exercise the
related Option.

     11. ISSUANCE OF SHARES. No person shall be, or have any of the rights or
privileges of, a stockholder of the Company with respect to any of the Shares
subject to an Option unless and until certificates representing such Shares
shall have been issued and delivered to such person. As a condition of any
transfer of the certificate for Shares, the Committee may obtain such agreements
or undertakings, if any, as it may deem necessary or advisable to assure
compliance with any provision of this Plan, any Option Agreement or any law or
regulation, including, but not limited to, the following:

               (i) A representation, warranty or agreement by the Optionee to
          the Company, at the time any Option is exercised, that he or she is
          acquiring the Shares to be issued to him or her for investment and not
          with a view to, or for sale in connection with, the distribution of
          any such Shares; and

               (ii) A representation, warranty or agreement to be bound by any
          legends that are, in the opinion of the Committee, necessary or
          appropriate to comply with the provisions of any securities law deemed
          by the Committee to be applicable to the issuance of the Shares and
          are endorsed upon the Share certificates.

     Share certificates issued to an Optionee who is a party to any stockholder
agreement or a similar agreement shall bear the legends contained in such
agreements.

     12.  ADMINISTRATION OF THE PLAN.

          (a) This Plan shall be administered by a stock option committee (the
     "Committee") consisting of not fewer than two (2) Non-Employee Directors;
     provided, however, that if no Committee is appointed, the full Board shall
     administer this Plan and in such case all references to the Committee shall
     be deemed to be references to the Board. The Committee shall have all of
     the powers of the Board with respect to this Plan. Any member of the
     Committee may be removed at any time, with or without cause, by resolution
     of the Board, and any vacancy occurring in the membership of the Committee
     may be filled by appointment by the Board.

          (b) The Committee, from time to time, may adopt rules and regulations
     for carrying out the purposes of this Plan. The Committee may at any time
     terminate this Plan or make such modification or amendment thereof as it
     deems advisable. Termination or any modification or amendment of this Plan
     shall not, without consent of

                                   -7-

<PAGE>

     the Optionee, affect his rights under an Option previously granted to him.
     The determinations and the interpretation and construction of any provision
     of this Plan by the Committee shall be final and conclusive.

          (c) Any and all decisions or determinations of the Committee shall be
     made either (i) by a majority vote of the members of the Committee at a
     meeting or (ii) without a meeting by the written approval of all of the
     members of the Committee.

     13.  INTERPRETATION.

          (a) If any provision of this Plan is held invalid for any reason, such
     holding shall not affect the remaining provisions hereof, but instead this
     Plan shall be construed and enforced as if such provision had never been
     included in this Plan.

          (b)  THIS PLAN SHALL BE GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE
     OF DELAWARE, WITHOUT REFERENCE TO DELAWARE CONFLICT OF LAW PROVISIONS.

          (c) Headings contained in this Plan are for convenience only and shall
     in no manner be construed as part of this Plan.

          (d) Any reference to the masculine, feminine or neuter gender shall be
     a reference to such other gender as is appropriate.

    14. SECTION 83(b) ELECTION. If as a result of exercising an Option an
Optionee receives Shares that are subject to a "substantial risk of forfeiture"
and are not "transferable" as those terms are defined for purposes of Section
83(a) of the Code, then such Optionee may elect under Section 83(b) of the Code
to include in his gross income, for his taxable year in which the Shares are
transferred to such Optionee, the excess of the Fair Market Value of such Shares
at the time of transfer (determined without regard to any restriction other than
one which by its terms will never lapse), over the amount paid for the Shares.
If the Optionee makes the Section 83(b) election described above, the Optionee
shall (i) make such election in a manner that is satisfactory to the Committee,
(ii) provide the Company with a copy of such election, (iii) agree to promptly
notify the Company if any Internal Revenue Service or state tax agent, on audit
or otherwise, questions the validity or correctness of such election or of the
amount of income reportable on account of such election, and (iv) agree to such
withholding as the Committee may reasonably require in its sole and absolute
discretion.

     15. EFFECTIVE DATE AND TERMINATION DATE. The effective date of this Plan is
February 3, 1999 and the effective date of any amendment to this Plan is the
date on which the Board adopted such amendment; provided, however, if this Plan
is not approved by the stockholders of the Company within twelve (12) months
after the effective date, then, in such event, this Plan and all Options granted
pursuant to this Plan shall be null and void. This Plan shall terminate on
February 2, 2009, and any Option outstanding on such date will remain
outstanding until it has either expired or has been exercised.

                                   -8-

<PAGE>

                             STOCK OPTION AGREEMENT
                                      UNDER
                         1999 NON-EMPLOYEE DIRECTOR PLAN
                                       OF
                                ADAMS GOLF, INC.

     STOCK OPTION AGREEMENT (this "Agreement") entered into this ____ day of
___________, ____, between ADAMS GOLF, INC., a Delaware corporation (the
"Corporation"), and __________________, a member of the Board of Directors of
the Corporation (the "Optionee," which term as used herein shall be deemed to
include any successor to the Optionee by will or by the laws of descent and
distribution, unless the context shall otherwise require).

     Pursuant to the Corporation's 1999 Non-Employee Director Plan (the "Plan"),
the Corporation, acting through its Compensation/Plan Committee of the Board of
Directors (the "Committee"), approved the issuance to the Optionee, effective as
of the date set forth above, of a nonqualified stock option to purchase up to an
aggregate of ____________ shares of common stock, par value $.001, of the
Corporation (the "Common Stock"), at the price of $____ per share (the "Option
Price") which represents not less than 100% of the fair market value of a share
of Common Stock determined in accordance with the Plan, upon the terms and
conditions hereinafter set forth. (Capitalized terms used herein but not defined
herein shall have the meaning ascribed to them in the Plan).

     NOW, THEREFORE, in consideration of the mutual premises and undertakings
hereinafter set forth, the parties hereto agree as follows:

     1. OPTION; OPTION PRICE. On behalf of the Corporation, the Committee hereby
grants as of the date of this Agreement to the Optionee the option (the
"Option") to purchase, subject to the terms and conditions of this Agreement and
the provisions of the Plan (which is incorporated by reference herein and which
in all cases shall control in the event of any conflict with the terms,
definitions and provisions of this Agreement), _______________ shares of Common
Stock of the Corporation at an exercise price per share equal to the Option
Price. A copy of the Plan as in effect on the date hereof has been supplied to
the Optionee, and the Optionee by executing this Agreement hereby acknowledges
receipt thereof.

     2. TERM. The term (the "Option Term") of the Option shall commence on the
date of this Agreement and shall terminate on the fifth anniversary of the date
of this Agreement, unless such Option shall theretofore have been terminated in
accordance with the terms hereof or the provisions of the Plan.

     3. VESTING; CHANGE OF CONTROL; RESTRICTIONS ON EXERCISE.

     (a) Subject to the provisions of Sections 5 and 8 hereof, and unless
accelerated, as set forth in the Plan or as provided herein, the Option granted
hereunder shall vest and become exercisable for the number of shares set forth
opposite the dates noted below (the "Option Vesting Schedule").

<PAGE>

                                   Cumulative

          Date(s)             Number of Vested Shares
          -------             -----------------------

     (b) Notwithstanding the provisions of Paragraph 3(a) above, upon a Change
in Control (as hereinafter defined):

          (i)    the Option shall become fully vested and shall become
     immediately exercisable with respect to all shares subject to the Option;

          (ii)   upon exercise of the Option during the 60-day period from and
     after the date of a Change of Control, the Optionee may in lieu of the
     receipt of Common Stock upon the exercise of the Option, elect by written
     notice to the Corporation to receive an amount in cash equal to the excess
     of the aggregate Value (as defined below) of the shares of Common Stock
     covered by the Option or portion thereof surrendered determined on the date
     the Option is exercised, over the aggregate exercise price of the Option
     (such excess is referred to herein as the "Aggregate Spread"); provided,
     however, if the end of such 60-day period from and after the date of a
     Change of Control is within six months of the date of grant of the Option,
     the Option shall be cancelled in exchange for a cash payment to the
     Optionee equal to the Aggregate Spread on the day which is six months and
     one day after the date of grant of the Option. As used in this Section
     3(b)(ii), the term "Value" means the higher of (1) the highest Fair Market
     Value (as defined below) during the 60-day period from and after the date
     of a Change of Control and (2) if the Change of Control is the result of a
     transaction or series of transactions described in paragraphs (i) or (iii)
     of the definition of Change of Control, the highest price per share of the
     Common Stock paid in such transaction or series of transactions (which in
     the case of paragraph (i) shall be the highest price per share of the
     Common Stock as reflected in a Schedule 13D filed by the person having made
     the acquisition) and the term "Fair Market Value" means the "Fair Market
     Value" of the Common Stock on any date of reference shall be the closing
     price on the business day immediately preceding such date. For this
     purpose, the closing price of the Common Stock on any business day shall be
     (i) if the Common Stock is listed or admitted for trading on any United
     States national securities exchange, the last reported sale price of the
     Common Stock on such exchange, as reported in any newspaper of general
     circulation, (ii) if actual transactions in the Common Stock are included
     in the Nasdaq National Market or are reported on a consolidated transaction
     reporting system, the closing sales price of the Common Stock on such
     system, (iii) if the Common Stock is otherwise quoted on the Nasdaq system,
     or any similar system of automated dissemination of quotations of
     securities prices in common use, the mean between the closing high bid and
     low asked quotations for such day of the Common Stock on such system, (iv)
     if none of clause (i), (ii) or (iii) is applicable, the mean between the
     high bid and low asked quotations for the Common Stock as reported by the
     National Daily Quotation Service if at least two securities dealers have
     inserted both bid and asked

                                   -2-
<PAGE>

     quotations for the Common Stock on at least five (5) of the ten (10)
     preceding days and (v) if none of clause (i), (ii), (iii) or (iv) is
     applicable, the most recent valuation price for the Common Stock as
     adjusted by the Board in the exercise of its good faith discretion;

          (iii)  if the Optionee ceases to be a Director regardless of the
     reason therefor other than death following a Change of Control, the
     Option may be exercised by the Optionee until the earlier of sixty (60)
     days after the Optionee ceases to be a Director or the expiration date
     of the Option;

          (iv)   the Option becomes non-cancelable; and

          (v)    if the Option shall remain exercisable after any such Change
     of Control, from and after such Change of Control, the Option shall be
     exercisable only for the kind and amount of securities and/or other
     property, or the cash equivalent thereof, receivable as a result of such
     Change of Control by the holder of a number of shares of stock for which
     the Option could have been exercised immediately prior to such Change of
     Control.

     (c)  For purposes of this Agreement, a Change in Control of the Corporation
shall be deemed to have occurred upon the happening of any of the following
events:

          (i)    the acquisition, other than from the Corporation, by any
     individual, entity or group (within the meaning of Section 13(d)(3) or
     14(d)(2) of the Exchange Act) other than Royal Holding Company, Inc. or B.
     H. Adams of beneficial ownership of thirty percent (30%) or more of either
     the then outstanding shares of Common Stock of the Corporation or the
     combined voting power of the then outstanding voting securities of the
     Corporation entitled to vote generally in the election of directors;
     provided, however, that any acquisition by the Corporation or any
     corporation or other entity, whether domestic or foreign, in which the
     Corporation has or obtains, directly or indirectly, a proprietary interest
     of more than fifty percent (50%) by reason of stock ownership or otherwise
     ("Subsidiary"), or any employee benefit plan (or related trust) of the
     Corporation or its Subsidiaries, or any corporation with respect to which,
     following such acquisition, more than fifty percent (50%) of, respectively,
     the then outstanding shares of common stock of such corporation and the
     combined voting power of the 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 Common Stock and voting securities of the Corporation immediately
     prior to such acquisition in substantially the same proportion as their
     ownership, immediately prior to such acquisition, of the then outstanding
     shares of Common Stock of the Corporation or the combined voting power of
     the then outstanding voting securities of the Corporation entitled to vote
     generally in the election of directors, as the case may be, shall not
     constitute a Change of Control;

          (ii)   individuals who constitute the Board of Directors of the
     Corporation as of January 1, 1999 (the "Incumbent Board") cease for any
     reason to constitute at least a majority of the Board of Directors of the
     Corporation, provided that any individual

                                   -3-

<PAGE>

     becoming a director subsequent to such date whose election, or nomination
     for election by the Corporation'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 is in connection with an actual or threatened
     election contest relating to the election of the directors of the
     Corporation (as such terms are used in Rule 14a-11 of Regulation 14A
     promulgated under the Securities Exchange Act of 1934, as amended (the
     "Exchange Act"));

          (iii)  approval by the stockholders of the Corporation of a
     reorganization, merger or consolidation of the Corporation, in each case,
     with respect to which the individuals and entities who were the respective
     beneficial owners of the Common Stock and voting securities of the
     Corporation immediately prior to such reorganization, merger or
     consolidation do not, following such reorganization, merger or
     consolidation, beneficially own, directly or indirectly, more than sixty
     percent (60%) of, respectively, the then outstanding shares of Common Stock
     and the combined voting power of the then outstanding voting securities
     entitled to vote generally in the election of directors, as the case may
     be, of the corporation resulting from such reorganization, merger or
     consolidation;

          (iv)   consummation by the Corporation of the sale or other
     disposition by the Corporation of all or substantially all of the
     Corporation's assets; or

          (v)    approval by the stockholders of the Corporation or any order
     by a court of competent jurisdiction of a plan of liquidation of the
     Corporation.

     (d)  If the Corporation shall consummate any merger, consolidation or other
reorganization not involving a Change of Control (a "Reorganization") in which
holders of shares of Common Stock are entitled to receive in respect of such
shares any securities, cash or other consideration (including, without
limitation, a different number of shares of Common Stock), the Option shall
thereafter be exercisable, in accordance with the Plan and this Agreement, only
for the kind and amount of securities, cash and/or other consideration
receivable upon such Reorganization by a holder of the same number of shares of
Common Stock as are subject to the Option immediately prior to such
Reorganization, and any adjustments will be made to the terms of the Option in
the sole discretion of the Committee as it may deem appropriate to give effect
to the Reorganization.

     (e)  Subject to the provisions of Sections 5 and 8 hereof, shares as to
which the Option becomes exercisable pursuant to the foregoing provisions may be
purchased at any time thereafter prior to the expiration or termination of the
Option.

     4.   TERMINATION OF OPTION.

     (a)  The unexercised portion of the Option shall automatically and without
notice terminate and become null and void at the time of the earliest to occur
of:

                                   -4-

<PAGE>

          (i)    sixty (60) days after the date that the Optionee ceases to be
     a Director regardless of the reason therefor other than as a result of such
     termination by death of the Optionee;

          (ii)   one (1) year after the date that the Optionee ceases to be a
     Director by reason of death of the Optionee or six (6) months after the
     Optionee shall die if that shall occur during the sixty-day period
     described in Section 4(a)(i); or

          (iii)  the expiration date of the term of the Option.

     5.   PROCEDURE FOR EXERCISE.

     (a)  Subject to the requirements of Section 8, the Option may be exercised,
from time to time, in whole or in part (but for the purchase of a whole number
of shares only), by delivery of a written notice (the "Notice") from the
Optionee to the Secretary of the Corporation, which Notice shall:

          (i)    state that the Optionee elects to exercise the
     Option;

          (ii)   state the number of shares with respect to which the Option is
     being exercised (the "Optioned Shares");

          (iii)  state the date upon which the Optionee desires to consummate
     the purchase of the Optioned Shares (which date must be prior to the
     termination of such Option and no later than thirty (30) days after the
     date of receipt of such Notice);

          (iv)   include any representations of the Optionee required under
     Section 8(c); and

          (v)    if the Option shall be exercised pursuant to Section 10 by any
     person other than the Optionee, include evidence to the satisfaction of the
     Committee of the right of such person to exercise the Option.

     (b)  Payment of the Option Price for the Optioned Shares shall be made in
U.S. dollars by personal check, bank draft or money order payable to the order
of the Corporation or by wire transfer.

     (c)  The Corporation shall issue a stock certificate in the name of the
Optionee (or such other person exercising the Option in accordance with the
provisions of Section 10) for the Optioned Shares as soon as practicable after
receipt of the Notice and payment of the aggregate Option Price for such shares.

     6.   NO RIGHTS AS A STOCKHOLDER. The Optionee shall have no rights as a
stockholder of the Corporation with respect to any Optioned Shares until the
date the Optionee or his nominee (which, for purposes of this Agreement, shall
include any third party agent selected by the Committee to hold such Option
Shares on behalf of the Optionee), guardian or legal representative is the
holder of record of such Optioned Shares.

                                   -5-

<PAGE>

     7.   ADJUSTMENTS.

     (a)  If at any time while the Option is outstanding, (1) there shall be any
increase or decrease in the number of issued and outstanding shares of Common
Stock through the declaration of a stock dividend, stock split, combination of
shares or through any recapitalization resulting in a stock split-up, spin-off,
combination or exchange of shares of Common Stock or (2) the value of the
outstanding shares of Common Stock is reduced by reason of an extraordinary cash
dividend, then and in each such event appropriate adjustment shall be made in
the number of shares and the exercise price per share covered by the Option, so
that the same proportion of the Corporation's issued and outstanding shares of
Common Stock shall remain subject to purchase at the same aggregate exercise
price.

     (b)  Except as otherwise expressly provided herein, the issuance by the
Corporation of shares of its capital stock of any class, or securities
convertible into shares of capital stock of any class, either in connection with
a direct sale or upon the exercise of rights or warrants to subscribe therefor,
or upon conversion of shares or obligations of the Corporation convertible into
such shares or other securities, shall not affect, and no adjustment by reason
thereof shall be made with respect to, the number of or exercise price of shares
of Common Stock covered by the Option.

     (c)  Without limiting the generality of the foregoing, the existence of the
Option shall not affect in any manner the right or power of the Corporation to
make, authorize or consummate (i) any or all adjustments, recapitalizations,
reorganizations or other changes in the Corporation's capital structure or its
business; (ii) any merger or consolidation of the Corporation; (iii) any issue
by the Corporation of debt securities, or preferred or preference stock that
would rank above the shares of Common Stock covered by the Option; (iv) the
dissolution or liquidation of the Corporation; (v) any sale, transfer or
assignment of all or any part of the assets or business of the Corporation; or
(vi) any other corporate act or proceeding, whether of a similar character or
otherwise.

     8.   ADDITIONAL PROVISIONS RELATED TO EXERCISE.

     (a)  The Option shall be exercisable only in accordance with this
Agreement, including the provisions regarding the period when the Option may
be exercised and the number of shares of Common Stock that may be acquired
upon exercise.

     (b)  The Option may not be exercised as to less than one hundred (100)
shares of Common Stock at any one time unless less than one hundred (100) shares
of Common Stock remain to be purchased upon the exercise of the Option.

     (c)  To exercise the Option, the Optionee shall follow the provisions of
Section 5 hereof. Upon the exercise of the Option at a time when there is not in
effect a registration statement under the Securities Act of 1933, as amended
(the "Securities Act") relating to the shares of Common Stock issuable upon
exercise of the Option, the Committee in its discretion may, as a condition to
the exercise of the Option, require the Optionee (i) to represent in writing
that the shares of Common Stock received upon exercise of the Option are being
acquired for investment and not with a view to distribution and (ii) to make
such other representations and warranties as are deemed appropriate by counsel
to the Corporation. No Option may be exercised and no shares of Common Stock
shall be issued and delivered upon the exercise of the Option unless and until
the Corporation and/or the

                                   -6-

<PAGE>

Optionee shall have complied with all applicable federal or state registration,
listing and/or qualification requirements and all other requirements of law or
of any regulatory agencies having jurisdiction.

     (d)  Stock certificates representing shares of Common Stock acquired upon
the exercise of the Option that have not been registered under the Securities
Act shall, if required by the Committee, bear the following legend:

          "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
          REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT").
          THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
          ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES
          UNDER THE ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION OR AN
          OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH
          REGISTRATION IS NOT REQUIRED."

     (e)  The exercise of each Option and the issuance of shares in connection
with the exercise of an Option shall, in all cases, be subject to each of the
following conditions: (i) the declaration of effectiveness by the Securities and
Exchange Commission ("SEC") of a registration statement relating to a primary
offering of the Common Stock, filed by the Corporation with the SEC under the
Securities Act, (ii) the satisfaction of withholding tax or other withholding
liabilities, (iii) the listing, registration or qualification of any
to-be-issued shares upon any securities exchange, any NASDAQ or other trading or
quotation system or under any federal or state law, (iv) the consent or approval
of any regulatory body, (v) the execution of a lock-up agreement with one or
more prospective underwriters, or (vi) the execution of a buy-sell or
shareholders agreement with other shareholders of the Corporation. The Committee
shall in its sole discretion determine whether one or more of these conditions
is necessary or desirable to be satisfied in connection with the exercise of an
Option and prior to the delivery or purchase of shares pursuant to the exercise
of an Option. The exercise of an Option shall not be effective unless and until
such condition(s) shall have been satisfied or the Committee shall have waived
such conditions, in its sole discretion.

     9.   RESTRICTION ON TRANSFER. The Option may not be assigned or transferred
except by will or by the laws of descent and distribution or pursuant to a
qualified domestic relations order as defined in the Code, and may be exercised
during the lifetime of the Optionee only by the Optionee or the Optionee's
guardian or legal representative or assignee pursuant to a qualified domestic
relations order. If the Optionee dies, the Option shall thereafter be
exercisable, during the period specified in Section 4(a)(ii), by his executors
or administrators or by a person who acquired the right to exercise such option
by bequest or inheritance to the full extent to which the Option was exercisable
by the Optionee at the time of his death. The Option shall not be subject to
execution, attachment or similar process. Any attempted assignment or transfer
of the Option contrary to the provisions hereof, and the levy of any execution,
attachment or similar process upon the Option, shall be null and void and
without effect.

     10.  NOTICES. All notices or other communications which are required or
permitted hereunder shall be in writing and sufficient if (i) personally
delivered, (ii) sent by nationally-

                                   -7-

<PAGE>

recognized overnight courier or (iii) sent by registered or certified mail,
postage prepaid, return receipt requested, addressed as follows:

          if to the Optionee, to the address set forth on the
signature page hereto; and

          if to the Corporation, to:

               Adams Golf, Inc.
               300 Delaware Avenue, Suite 572
               Wilmington, Delaware 19801
               Attention: Secretary

          with a copy to:

               Adams Golf, Ltd.
               c/o Adams Golf GP Corp.
               2801 E. Plano Parkway
               Plano, Texas 75225
               Attention: President

or to such other address as the party to whom notice is to be given may have
furnished to each other party in writing in accordance herewith. Any such
communication shall be deemed to have been given (i) when delivered, if
personally delivered, (ii) on the first Business Day (as hereinafter defined)
after dispatch, if sent by nationally-recognized overnight courier and (iii) on
the third Business Day following the date on which the piece of mail containing
such communication is posted, if sent by mail. As used herein, "Business Day"
means a day that is not a Saturday, Sunday or a day on which banking
institutions in the city to which the notice or communication is to be sent are
not required to be open.

     11.  NO WAIVER. No waiver of any breach or condition of this Agreement
shall be deemed to be a waiver of any other or subsequent breach or condition,
whether of like or different nature.

     12.  OPTIONEE UNDERTAKING. The Optionee hereby agrees to take whatever
additional actions and execute whatever additional documents the Corporation or
its counsel may in their reasonable judgment deem necessary or advisable in
order to carry out or effect one or more of the obligations or restrictions
imposed on the Optionee pursuant to the express provisions of this Agreement.

     13.  MODIFICATION OF RIGHTS. The rights of the Optionee are subject to
modification and termination in certain events as provided in this Agreement and
the Plan.

     14.  GOVERNING LAW. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Delaware applicable to contracts made
and to be wholly performed therein.

                                   -8-

<PAGE>

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

     16.  ENTIRE AGREEMENT. This Agreement and the Plan constitute the entire
agreement between the parties with respect to the subject matter hereof, and
supersede all previously written or oral negotiations, commitments,
representations and agreements with respect thereto.

                                       ADAMS GOLF, INC.

                                       By:
                                          ------------------------------------
                                       Name:
                                            ----------------------------------
                                       Title:
                                             ---------------------------------

                                       OPTIONEE:

                                       ---------------------------------------
                                       Name:
                                            ----------------------------------
                                       Adress:
                                              --------------------------------
                                              --------------------------------
                                              --------------------------------
                                              --------------------------------

                                   -9-

<PAGE>

Ladies/Gentlemen:

I hereby exercise my Stock Option to purchase _________ shares of Common Stock
of ADAMS GOLF, INC. at the option price of $____ per share as provided in the
Stock Option Agreement dated the ___ day of ________________.

I acknowledge that I previously received a copy of the 1999 Non- Employee
Director Plan of Adams Golf, Inc. and executed a Stock Option Agreement, and I
have carefully reviewed both documents.

I have considered the federal tax implications of my option. I hereby tender my
personal check, bank draft or money order payable to ADAMS GOLF, INC. in the
amount of $____________ or, I have wire transferred $_______________ to ADAMS
GOLF, INC., which transfer shall be subject to the confirmation of receipt of
funds by the Corporation. [If payment is to be made by wire transfer, the
Optionee should contact the Corporation's Chief Financial Officer or Controller
in advance to obtain wiring instructions.]

--------------------------
Optionee

--------------------------
Date<PAGE>

                        ADAMS GOLF, INC.
                     1999 STOCK OPTION PLAN

                               FOR

                       OUTSIDE CONSULTANTS

                Adopted Effective August 30, 1999

<PAGE>

<TABLE>
<CAPTION>
                        TABLE OF CONTENTS
                        -----------------
     <S>                                                       <C>
     ARTICLE I PURPOSE OF PLAN                                  1

     ARTICLE II EFFECTIVE DATE AND TERM OF PLAN                 1

     2.1 TERM OF PLAN                                           1
     2.2 EFFECT ON STOCK OPTIONS                                1

     ARTICLE III SHARES SUBJECT TO PLAN                         1

     3.1 NUMBER OF SHARES                                       1
     3.2 SOURCE OF SHARES                                       1
     3.3 AVAILABILITY OF UNUSED SHARES                          1
     3.4 ADJUSTMENT PROVISIONS                                  2
     3.5 RESERVATION OF SHARES                                  2

     ARTICLE IV ADMINISTRATION OF PLAN                          2

     4.1 ADMINISTERING BODY                                     2
     4.2 AUTHORITY OF ADMINISTERING BODY                        3
     4.3 NO LIABILITY                                           4
     4.4 AMENDMENTS                                             4
     4.5 OTHER COMPENSATION PLANS                               4
     4.6 PLAN BINDING ON SUCCESSORS                             4
     4.7 REFERENCES TO SUCCESSOR STATUTES, REGULATIONS
           AND RULES                                            4
     4.8 ISSUANCES FOR SERVICES                                 5
     4.9 INVALID PROVISIONS                                     5
     4.10 GOVERNING LAW                                         5

     ARTICLE V GENERAL AWARD PROVISIONS                         5

     5.1 PARTICIPATION IN THE PLAN                              5
     5.2 STOCK OPTION DOCUMENTS                                 5
     5.3 EXERCISE OF STOCK OPTIONS                              5
     5.4 PAYMENT FOR STOCK OPTIONS                              6
     5.5 NO CONTINUING SERVICE RIGHTS                           6
     5.6 RESTRICTIONS UNDER APPLICABLE LAWS AND REGULATIONS     7
     5.7 ADDITIONAL CONDITIONS                                  7
     5.8 NO PRIVILEGES OF STOCK OWNERSHIP                       8
     5.9 LIMITED ASSIGNABILITY                                  8
     5.10 INFORMATION TO OPTIONEES                              8
     5.11 WITHHOLDING TAXES                                     9
     5.12 LEGENDS ON STOCK OPTIONS AND STOCK CERTIFICATES       9
     5.13 EFFECT OF TERMINATION OF ENGAGEMENT ON
            STOCK OPTIONS                                       9

     ARTICLE VI STOCK OPTIONS                                  10

     6.1 NATURE OF STOCK OPTIONS                               10
     6.2 OPTION EXERCISE PRICE                                 10
     6.3 OPTION PERIOD AND VESTING                             10

     ARTICLE VII REORGANIZATIONS                               10

     7.1 CORPORATE TRANSACTIONS NOT INVOLVING
           A CHANGE IN CONTROL                                 10
     7.2 CORPORATE TRANSACTIONS INVOLVING A CHANGE IN CONTROL  11

     ARTICLE VIII DEFINITIONS                                  11
</TABLE>

<PAGE>

                        ADAMS GOLF, INC.
         1999 STOCK OPTION PLAN FOR OUTSIDE CONSULTANTS

 ---------------------------------------------------------------

                            ARTICLE I
                            ---------
                         PURPOSE OF PLAN

     The Company has adopted this Plan to promote the interests of the Company
and its stockholders by using investment interests in the Company to attract,
retain and motivate non-employee, current and former tour professionals, golf
instructors, psychologists and other advisors acting as outside consultants,
to encourage and reward their contributions to the performance of the Company
and to align their interests with the interests of the Company's stockholders.
Capitalized terms not otherwise defined herein shall have the meanings
ascribed to them in Article VIII.

                           ARTICLE II
                           ----------
                 EFFECTIVE DATE AND TERM OF PLAN

     2.1 Term of Plan. This Plan became effective as of the Effective Date and
shall continue in effect until the Expiration Date, at which time this Plan
shall automatically terminate.

     2.2 Effect on Stock Options. Stock Options may be granted during the Plan
Term, but no Stock Options may be granted after the Plan Term. Notwithstanding
the foregoing, each Stock Option properly granted under this Plan during the
Plan Term shall remain in effect after termination of this Plan until such
Stock Option has been exercised, terminated or expired in accordance with its
terms and the terms of this Plan.

                           ARTICLE III
                           -----------
                     SHARES SUBJECT TO PLAN

     3.1 Number of Shares. The maximum number of shares of Common Stock that
may be issued pursuant to Stock Options granted under this Plan shall be
1,000,000, subject to adjustment as set forth in Section 3.4.

     3.2 Source of Shares. The Common Stock to be issued under this Plan will
be made available, at the discretion of the Board, either from authorized but
unissued shares of Common Stock or from previously issued shares of Common
Stock reacquired by the Company, including without limitation shares purchased
on the open market.

     3.3 Availability of Unused Shares. Shares of Common Stock subject to
unexercised portions of any Stock Option granted under this Plan that expire,
terminate or are canceled, and shares of Common Stock issued pursuant to Stock
Options under this Plan that are reacquired by

<PAGE>

the Company pursuant to the terms of the Stock Options under which such shares
were issued, will again become available for the grant of further Stock
Options under this Plan.

     3.4 Adjustment Provisions.

     (a) If (i) the outstanding shares of Common Stock of the Company are
increased, decreased or exchanged for a different number or kind of shares or
other securities, or if additional shares or new or different shares or other
securities are distributed in respect of such shares of Common Stock (or any
stock or securities received with respect to such Common Stock), through
merger, consolidation, sale or exchange of all or substantially all of the
assets of the Company, reorganization, recapitalization, reclassification,
stock dividend, stock split, reverse stock split, spin-off or other
distribution with respect to such shares of Common Stock (or any stock or
securities received with respect to such Common Stock), or (ii) the value of
the outstanding shares of Common Stock of the Company is reduced by reason of
an extraordinary cash dividend, an appropriate and proportionate adjustment
may be made in (1) the maximum number and kind of shares or securities subject
to this Plan as provided in Section 3.1, (2) the number and kind of shares or
other securities subject to then outstanding Stock Options and/or (3) the
price for each share or other unit of any other securities subject to then
outstanding Stock Options.

     (b) No fractional interests will be issued under this Plan resulting from
any adjustments.

     (c) To the extent any adjustments relate to stock or securities of the
Company, such adjustments shall be made by the Administering Body, whose
determination in that respect shall be final, binding and conclusive.

     (d) The grant of Stock Options pursuant to this Plan shall not affect in
any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its capital or business
structure or to merge or to consolidate or to dissolve, liquidate or sell, or
transfer all or any part of its business or assets.

     3.5 Reservation of Shares. The Company will at all times reserve and
keep available such number of shares of Common Stock as shall equal at least
the number of shares of Common Stock subject to then outstanding Stock Options
issuable in shares of Common Stock under this Plan.

                           ARTICLE IV
                           ----------
                     ADMINISTRATION OF PLAN

     4.1 Administering Body.

     (a) This Plan shall be administered by the Board or by the Consultants'
Plan Committee of the Board appointed pursuant to Section 4.1(b).

     (b) (i) The Board in its sole discretion may from time to time appoint a
Consultants' Plan Committee of not less than two Board members to administer
this Plan and, subject to applicable law, to exercise all of the powers,
authority and discretion of the Board

                               -2-

<PAGE>

under this Plan. The Board may from time to time increase or decrease (but not
below two) the number of members of the Consultants' Plan Committee, remove
from membership on the Consultants' Plan Committee all or any portion of its
members, and/or appoint such person or persons as it desires to fill any
vacancy existing on the Consultants' Plan Committee, whether caused by
removal, resignation or otherwise. The Consultants' Plan Committee may, but
shall not be required to, consist of the same members as any other committee
administering a stock option plan for the Company. The Board may disband the
Consultants' Plan Committee at any time and revest in the Board the
administration of this Plan.

          (ii) The Consultants' Plan Committee shall report to the Board the
names of Eligible Persons granted Stock Options, the number of shares of
Common Stock covered by each Stock Option and the terms and conditions of each
such Stock Option.

     4.2 Authority of Administering Body.

     (a) Subject to the express provisions of this Plan, the Administering
Body shall have the power to interpret and construe this Plan and any Stock
Option Documents or other documents defining the rights and obligations of the
Company and Optionees hereunder and thereunder, to determine all questions
arising hereunder and thereunder, to adopt and amend such rules and
regulations for the administration hereof and thereof as it may deem
desirable, and otherwise to carry out the terms of this Plan and such Stock
Option Documents and other documents. The interpretation and construction by
the Administering Body of any provisions of this Plan or of any Stock Option
shall be conclusive and binding. Any action taken by, or inaction of, the
Administering Body relating to this Plan or any Stock Options shall be within
the absolute discretion of the Administering Body and shall be conclusive and
binding upon all persons. Subject only to compliance with the express
provisions hereof, the Administering Body may act in its absolute discretion
in matters related to this Plan and any and all Stock Options.

     (b) Subject to the express provisions of this Plan, the Administering
Body may from time to time in its discretion select the Eligible Persons to
whom, and the time or times at which, Stock Options shall be granted, the
number of shares of Common Stock that make up or underlie each Stock Option,
the period for the exercise of each Stock Option, and such other terms and
conditions applicable to each individual Stock Option as the Administering
Body shall determine. The Administering Body may grant at any time new Stock
Options to an Eligible Person who has previously received Stock Options
whether such prior Stock Options are still outstanding, have previously been
exercised as a whole or in part, or are canceled in connection with the
issuance of new Stock Options. The Administering Body may grant Stock Options
singly, in combination or in tandem with other Stock Options, as it determines
in its discretion. Any and all terms and conditions of the Stock Options,
including exercise price, may be established by the Administering Body without
regard to existing Stock Options.

     (c) Any action of the Administering Body with respect to the
administration of this Plan shall be taken pursuant to a majority vote of the
authorized number of members of the Administering Body or by the unanimous
written consent of its members; provided, however, that (i) if the
Administering Body is the Consultants' Plan Committee and consists of two
members, then actions of the Administering Body must be unanimous and (ii) if
the

                               -3-

<PAGE>

Administering Body is the Board, actions taken at a meeting of the Board shall
be valid if approved by directors constituting a majority of the required
quorum for such meeting.

     4.3 No Liability. No member of the Board or the Consultants' Plan
Committee or any designee thereof will be liable for any action or inaction
with respect to this Plan or any Stock Option or any transaction arising under
this Plan or any Stock Option, except in circumstances constituting bad faith
of such member.

     4.4 Amendments.

     (a) The Administering Body may, insofar as permitted by applicable law,
rule or regulation, from time to time suspend or discontinue this Plan or
revise or amend it in any respect whatsoever, and this Plan as so revised or
amended will govern all Stock Options hereunder, including those granted
before such revision or amendment; provided, however, that no such revision or
amendment shall alter, impair or diminish any rights or obligations under any
Stock Option previously granted under this Plan, without the written consent
of the Optionee. Without limiting the generality of the foregoing, the
Administering Body is authorized to amend this Plan to comply with or take
advantage of amendments to applicable laws, rules or regulations, including
amendments to the Securities Act, Exchange Act or the IRC or any rules or
regulations promulgated thereunder. No stockholder approval of any amendment
or revision shall be required unless such approval is required by applicable
law, rule or regulation.

     (b) The Administering Body may, with the written consent of an Optionee,
make such modifications in the terms and conditions of a Stock Option as it
deems advisable. Without limiting the generality of the foregoing, the
Administering Body may, in its discretion with the written consent of
Optionee, at any time and from time to time after the grant of any Stock
Option accelerate or extend the vesting or exercise period of any Stock Option
as a whole or in part, and adjust or reduce the exercise price of Stock
Options held by such Optionee by cancellation of such Stock Options and
granting of Stock Options at lower or exercise prices or by modification,
extension or renewal of such Stock Options.

     (c) Except as otherwise provided in this Plan or in the applicable Stock
Option Document, no amendment, revision, suspension or termination of this
Plan will, without the written consent of the Optionee, alter, terminate,
impair or adversely affect any right or obligation under any Stock Option
previously granted under this Plan.

     4.5 Other Compensation Plans. The adoption of this Plan shall not affect
any other stock option, incentive or other compensation plans in effect for
the Company, and this Plan shall not preclude the Company from establishing
any other forms of incentive or other compensation for employees, directors,
advisors or consultants of the Company, whether or not approved by
stockholders.

     4.6 Plan Binding on Successors. This Plan shall be binding upon the
successors and assigns of the Company.

     4.7 References to Successor Statutes, Regulations and Rules. Any
reference in this Plan to a particular statute, regulation or rule shall also
refer to any successor provision of such statute, regulation or rule.

                               -4-

<PAGE>

     4.8 Issuances for Services. Options to Eligible Persons shall be granted
only in exchange for bona fide services rendered by such Eligible Persons, and
such services must not be in connection with the offer and sale of securities
in a capital- raising transaction.

     4.9 Invalid Provisions. In the event that any provision of this Plan is
found to be invalid or otherwise unenforceable under any applicable law, such
invalidity or unenforceability shall not be construed as rendering any other
provisions contained herein invalid or unenforceable, and all such other
provisions shall be given full force and effect to the same extent as though
the invalid and unenforceable provision were not contained herein.

     4.10 Governing Law. This Agreement shall be governed by and interpreted
in accordance with the internal laws of the State of Delaware, without giving
effect to the principles of the conflicts of laws thereof.

                            ARTICLE V
                            ---------
                    GENERAL AWARD PROVISIONS

     5.1 Participation in the Plan.

     (a) A person shall be eligible to receive grants of Stock Options under
this Plan if, at the time of the grant of the Stock Option, such person is an
Eligible Person.

     (b) Notwithstanding anything to the contrary herein, the Administering
Body may, in order to fulfill the purposes of this Plan, modify grants of
Stock Options to Recipients who are foreign nationals to recognize differences
in applicable law, tax policy or local custom.

     5.2 Stock Option Documents.

     (a) Each Stock Option granted under this Plan shall be evidenced by an
agreement duly executed on behalf of the Company and by the Recipient or, in
the Administering Body's discretion, a confirming memorandum issued by the
Company to the Recipient, setting forth such terms and conditions applicable
to the Stock Option as the Administering Body may in its discretion determine.
Stock Option Documents may but need not be identical and shall comply with and
be subject to the terms and conditions of this Plan, a copy of which shall be
provided to each Recipient and incorporated by reference into each Stock
Option Document. Any Stock Option Document may contain such other terms,
provisions and conditions not inconsistent with this Plan as may be determined
by the Administering Body.

     (b) In case of any conflict between this Plan and any Stock Option
Document, this Plan shall control.

     5.3 Exercise of Stock Options. No Stock Option shall be exercisable
except in respect of whole shares, and fractional share interests shall be
disregarded. Not less than 100 shares of Common Stock (or such other amount as
is set forth in the applicable Stock Option Documents) may be purchased at one
time and Stock Options must be exercised in multiples of 100 unless the number
purchased is the total number at the time available for purchase under the
terms of the Stock Option. A Stock Option shall be deemed to be exercised when
the Secretary or other designated official of the Company receives written
notice of such exercise from the

                               -5-

<PAGE>

Optionee, together with payment of the exercise price made in accordance with
Section 5.4 and any amounts required under Section 5.11. Notwithstanding any
other provision of this Plan, the Administering Body may impose, by rule
and/or in Stock Option Documents, such conditions upon the exercise of Stock
Options (including without limitation conditions limiting the time of exercise
to specified periods) as may be required to satisfy applicable regulatory
requirements.

     5.4 Payment For Stock Options.

     (a) The exercise price or other payment for a Stock Option shall be
payable upon the exercise of a Stock Option pursuant to a Stock Option granted
hereunder by delivery of legal tender of the United States or payment of such
other consideration as the Administering Body may from time to time deem
acceptable in any particular instance.

     (b) In the discretion of the Administering Body, Stock Options may be
exercised by matured capital stock of the Company (i.e., owned longer than six
months) delivered in transfer to the Company by or on behalf of the person
exercising the Stock Option and duly endorsed in blank or accompanied by stock
powers duly endorsed in blank, with signatures guaranteed in accordance with
the Exchange Act if required by the Administering Body (valued at Fair Market
Value as of the exercise date), or such other consideration as the
Administering Body may from time to time in the exercise of its discretion
deem acceptable in any particular instance; provided, however, that the
Administering Body may, in the exercise of its discretion, (i) allow exercise
of Stock Options in a broker-assisted or similar transaction in which the
exercise price is not received by the Company until promptly after exercise,
and/or (ii) allow the Company to loan the exercise price to the Optionee, if
the exercise will be followed by a prompt sale of some or all of the
underlying shares and a portion of the sale proceeds is dedicated to full
payment of the exercise price and amounts required pursuant to Section 5.11.

     5.5 No Continuing Service Rights. Nothing contained in this Plan (or in
Stock Option Documents or in any other documents related to this Plan or to
Stock Options granted hereunder) shall confer upon any Recipient any right to
continue providing services to the Company or any Affiliated Entity or
constitute any contract or agreement of engagement, or interfere in any way
with the right of the Company or any Affiliated Entity to terminate the
engagement of such Recipient, with or without cause, subject to any contract
rights between the parties. Except as expressly provided in this Plan or in
any statement evidencing the grant of Stock Options pursuant to this Plan, the
Company shall have the right to deal with each Recipient in the same manner as
if this Plan and any such statement evidencing the grant of Stock Options
pursuant to this Plan did not exist, including without limitation with respect
to all matters related to the conditions of the engagement of the Recipient.
Any questions as to whether and when there has been a termination of a
Recipient's engagement, the reason (if any) for such termination, and/or the
consequences thereof under the terms of this Plan or any statement evidencing
the grant of Stock Options pursuant to this Plan shall be determined by the
Administering Body, and the Administering Body's determination thereof shall
be final and binding.

                               -6-

<PAGE>

     5.6 Restrictions Under Applicable Laws and Regulations.

     (a) All Stock Options granted under this Plan shall be subject to the
requirement that, if at any time the Company shall determine, in its
discretion, that the listing, registration or qualification of the shares
subject to Stock Options granted under this Plan upon any securities exchange
or under any federal, state or foreign law, or the consent or approval of any
government regulatory body, is necessary or desirable as a condition of, or in
connection with, the granting of such Stock Options or the issuance, if any,
or purchase of shares in connection therewith, such Stock Options may not be
exercised as a whole or in part unless and until such listing, registration,
qualification, consent or approval shall have been effected or obtained free
of any conditions not acceptable to the Company. During the term of this Plan,
the Company will use its reasonable efforts to seek to obtain from the
appropriate regulatory agencies any requisite qualifications, consents,
approvals or authorizations in order to issue and sell such number of shares
of its Common Stock as shall be sufficient to satisfy the requirements of this
Plan. The inability of the Company to obtain from any such regulatory agency
having jurisdiction thereof the qualifications, consents, approvals or
authorizations deemed by the Company to be necessary for the lawful issuance
and sale of any shares of its Common Stock hereunder shall relieve the Company
of any liability in respect of the nonissuance or sale of such stock as to
which such requisite authorization shall not have been obtained.

     (b) The Company shall be under no obligation to register or qualify the
issuance of Stock Options or underlying shares under the Securities Act or
applicable state securities laws. Unless the issuance of Stock Options and
underlying shares have been registered under the Securities Act and qualified
or registered under applicable state securities laws, the Company shall be
under no obligation to issue any Stock Options or underlying shares of Common
Stock covered by any Stock Options unless the Stock Options and underlying
shares may be issued pursuant to applicable exemptions from such registration
or qualification requirements. In connection with any such exempt issuance,
the Administering Body may require the Optionee to provide a written
representation and undertaking to the Company, satisfactory in form and scope
to the Company and upon which the Company may reasonably rely, that such
Optionee is acquiring such Stock Options and underlying shares for such
Optionee's own account as an investment and not with a view to, or for sale in
connection with, the distribution of any such shares of stock, and that such
person will make no transfer of the same except in compliance with any rules
and regulations in force at the time of such transfer under the Securities Act
and other applicable law, and that if shares of stock are issued without such
registration, a legend to this effect (together with any other legends deemed
appropriate by the Administering Body) may be endorsed upon the securities so
issued. The Company may also order its transfer agent to stop transfers of
such shares. The Administering Body may also require the Optionee to provide
the Company such information and other documents as the Administering Body may
request in order to satisfy the Administering Body as to the investment
sophistication and experience of the Optionee and as to any other conditions
for compliance with any such exemptions from registration or qualification.

     5.7 Additional Conditions. Any Stock Option may also be subject to such
other provisions (whether or not applicable to any other Stock Option or
Optionee) as the Administering Body determines appropriate including without
limitation provisions to assist the Optionee in financing the purchase of
Common Stock through the exercise of Stock Options, provisions for the
forfeiture of or restrictions on resale or other disposition of shares of
Common Stock acquired under any form of benefit, provisions giving the Company
the right to repurchase

                               -7-

<PAGE>

shares of Common Stock acquired under any form of benefit in the event the
Optionee elects to dispose of such shares or upon such other terms as therein
specified, and provisions to comply with federal and state securities laws and
federal and state income tax withholding requirements.

     5.8 No Privileges of Stock Ownership. Except as otherwise set forth
herein, an Optionee shall have no rights as a stockholder with respect to any
shares issuable or issued in connection with the Stock Option until the date
of the receipt by the Company of all amounts payable in connection with
exercise of the Stock Option and performance by the Optionee of all
obligations thereunder. Status as an Eligible Person shall not be construed as
a commitment that any Stock Option will be granted under this Plan to an
Eligible Person or to Eligible Persons generally. No person shall have any
right, title or interest in any fund or in any specific asset (including
shares of capital stock) of the Company by reason of any Stock Option granted
hereunder. Neither this Plan (or any documents related hereto) nor any action
taken pursuant hereto (or thereto) shall be construed to create a trust of any
kind or a fiduciary relationship between the Company and any Person. To the
extent that any Person acquires a right to receive Stock Options hereunder,
such right shall be no greater than the right of any unsecured general
creditor of the Company.

     5.9 Limited Assignability. No Stock Option granted under this Plan shall
be assignable or transferable except (a) by will or by the laws of descent and
distribution, or (b) subject to the final sentence of this Section 5.9, upon
dissolution of marriage pursuant to a qualified domestic relations order or,
in the discretion of the Administering Body and under circumstances that would
not adversely affect the interests of the Company, pursuant to a nominal
transfer that does not result in a change in beneficial ownership; provided,
however, that the Administering Body may in the applicable Stock Option
Document evidencing Stock Options granted hereunder or at any time thereafter
provide that Stock Options granted hereunder may be transferred without
consideration by the Recipient, subject to such rules as the Administering
Body may adopt to preserve the purposes of the Plan, to one or more Permitted
Transferees; provided further, that the Recipient gives the Administering Body
advance written notice describing the terms and conditions of the proposed
transfer and the Administering Body notifies the Recipient in writing that
such transfer would comply with the requirements of the Plan and any
applicable Stock Option Document. The terms of any Stock Option transferred to
Permitted Transferees in accordance with the immediately preceding sentence
shall apply to the Permitted Transferee, except that (a) Permitted Transferees
shall not be entitled to transfer any Stock Options, other than by will or the
laws of descent and distribution; and (b) Permitted Transferees shall not be
entitled to exercise any transferred Stock Options unless there shall be in
effect a registration statement on an appropriate form covering the shares of
Common Stock to be acquired pursuant to the exercise of such Stock Option if
the Administering Body determines that such a registration statement is
necessary or appropriate. During the lifetime of an Optionee, Stock Options
shall be exercisable only by the Optionee or such person's guardian or legal
representative.

     5.10 Information to Optionees.

     (a)  The Administering Body in its sole discretion shall determine what,
if any, financial and other information shall be provided to Optionees and
when such financial and other information shall be provided after giving
consideration to applicable federal and state laws,

                               -8-

<PAGE>

rules and regulations, including without limitation applicable federal and
state securities laws, rules and regulations.

     (b)  The furnishing of financial and other information that is
confidential to the Company shall be subject to the Optionee's agreement that
the Optionee shall maintain the confidentiality of such financial and other
information, shall not disclose such information to third parties, and shall
not use the information for any purpose other than evaluating an investment in
the Company's securities under this Plan. The Administering Body may impose
other restrictions on the access to and use of such confidential information
and may require an Optionee to acknowledge the Optionee's obligations under
this Section 5.10(b) (which acknowledgment shall not be a condition to the
Optionee's obligations under this Section 5.10(b)).

     5.11 Withholding Taxes. Whenever the granting, vesting or exercise of any
Stock Option granted under this Plan, or the transfer of any shares issued
upon exercise of any Stock Option, gives rise to tax or tax withholding
liabilities or obligations, the Administering Body shall have the right to
require the Optionee to remit to the Company an amount sufficient to satisfy
any federal, state and local withholding tax requirements prior to issuance of
such shares. The Administering Body may, in the exercise of its discretion,
allow satisfaction of tax withholding requirements by accepting delivery of
stock of the Company (or by withholding a portion of the stock otherwise
issuable in connection with Stock Options).

     5.12 Legends on Stock Options and Stock Certificates. Each Stock Option
Document and each certificate representing shares acquired upon exercise of
Stock Options shall be endorsed with all legends, if any, required by
applicable federal and state securities and other laws to be placed on the
Stock Option Document and/or the certificate. The determination of which
legends, if any, shall be placed upon Stock Option Documents or the
certificates shall be made by the Administering Body in its sole discretion
and such decision shall be final and binding.

     5.13 Effect of Termination of Engagement on Stock Options.

     (a)  Termination. Subject to Section 5.13(b), and except as otherwise
provided in a written agreement between the Company and the Optionee which may
be entered into at any time before or after termination of engagement of the
Recipient, in the event of termination of Recipient's engagement, the
Optionee's Stock Options, whether or not vested, shall expire and become
unexercisable as of the earlier of (A) the date such Stock Options would
expire in accordance with their terms had the Recipient remained engaged by
the Company and (B) (i) six (6) months after Recipient's engagement is
terminated as a result of death or Permanent Disability and (ii) sixty (60)
days after Recipient's engagement is terminated for any other reason.

     (b)  Alteration of Vesting and Exercise Periods. Notwithstanding anything
to the contrary in Section 5.13(a), the Administering Body may in its
discretion designate shorter or longer periods to exercise Stock Options
following a Recipient's termination of engagement; provided, however, that any
shorter periods determined by the Administering Body shall be effective only
if provided for in the instrument that evidences the grant to the Optionee of
such

                               -9-

<PAGE>

Stock Options or if such shorter period is agreed to in writing by the
Optionee. Notwithstanding anything to the contrary herein, Stock Options shall
be exercisable by an Optionee following such Optionee's termination of
engagement only to the extent that installments thereof had become exercisable
on or prior to the date of such termination; and provided, further, that the
Administering Body may, in its discretion, elect to accelerate the vesting of
all or any portion of any Stock Options that had not become exercisable on or
prior to the date of such termination.

                           ARTICLE VI
                           ----------
                          STOCK OPTIONS

     6.1 Nature of Stock Options. Stock Options shall be Nonqualified Stock
Options.

     6.2 Option Exercise Price. The exercise price for each Stock Option shall
be determined by the Administering Body as of the date such Stock Option is
granted. The exercise price shall be no less than the Fair Market Value of the
Common Stock subject to the Option. The Administering Body may, with the
consent of the Optionee, amend the terms of any Stock Option to provide that
the exercise price of the shares remaining subject to the Stock Option shall
be reestablished at a price not less than 100% of the Fair Market Value of the
Common Stock on the effective date of the amendment. No modification of any
other term or provision of any Stock Option that is amended in accordance with
the foregoing shall be required, although the Administering Body may, in its
discretion, make such further modifications of any such Stock Option as are
not inconsistent with this Plan.

     6.3 Option Period and Vesting. Stock Options granted hereunder shall vest
and may be exercised as determined by the Administering Body, except that
exercise of such Stock Options after termination of the Recipient's engagement
by the Company shall be subject to Section 5.13. Each Stock Option granted
hereunder and all rights or obligations thereunder shall expire on such date
as shall be determined by the Administering Body, but not later than 10 years
after the date the Stock Option is granted and shall be subject to earlier
termination as provided herein or in the Stock Option Document. The
Administering Body may, in its discretion at any time and from time to time
after the grant of a Stock Option, accelerate vesting of such Option as a
whole or in part by increasing the number of shares then purchasable, provided
that the total number of shares subject to such Stock Option may not be
increased. Except as otherwise provided herein, a Stock Option shall become
exercisable, as a whole or in part, on the date or dates specified by the
Administering Body and thereafter shall remain exercisable until the
expiration or earlier termination of the Stock Option.

                           ARTICLE VII
                           -----------
                         REORGANIZATIONS

     7.1 Corporate Transactions Not Involving a Change in Control. If the
Company shall consummate any Reorganization not involving a Change in Control
in which holders of shares of Common Stock are entitled to receive in respect
of such shares any securities, cash or other consideration (including without
limitation a different number of shares of Common Stock), each Stock Option
outstanding under this Plan shall thereafter be exercisable, in accordance
with this Plan, only for the kind and amount of securities, cash and/or other
consideration receivable upon such Reorganization by a holder of the same
number of shares of

                              -10-

<PAGE>

Common Stock as are subject to that Stock Option immediately prior to such
Reorganization, and any adjustments will be made to the terms of the Stock
Option in the sole discretion of the Administering Body as it may deem
appropriate to give effect to the Reorganization.

     7.2 Corporate Transactions Involving a Change in Control. As of the
effective time and date of any Change in Control, this Plan and any then
outstanding Stock Options (whether or not vested) shall automatically
terminate unless (a) provision is made in writing in connection with such
transaction for the continuance of this Plan and for the assumption of such
Stock Options, or for the substitution for such Stock Options of new awards
covering the securities of a successor entity or an affiliate thereof, with
appropriate adjustments as to the number and kind of securities and exercise
prices, in which event this Plan and such outstanding Stock Options shall
continue or be replaced, as the case may be, in the manner and under the terms
so provided; or (b) the Board otherwise has provided or shall provide in
writing for such adjustments as it deems appropriate in the terms and
conditions of the then-outstanding Stock Options (whether or not vested),
including without limitation (i) accelerating the vesting of outstanding Stock
Options and/or (ii) providing for the cancellation of Stock Options and their
automatic conversion into the right to receive the securities, cash and/or
other consideration that a holder of the shares underlying such Stock Options
would have been entitled to receive upon consummation of such Change in
Control had such shares been issued and outstanding immediately prior to the
effective date and time of the Change in Control (net of the appropriate
option exercise prices). If, pursuant to the foregoing provisions of this
Section 7.2, this Plan and the Stock Options shall terminate by reason of the
occurrence of a Change in Control without provision for any of the actions
described in clause (a) or (b) hereof, then any Optionee holding outstanding
Stock Options shall have the right, at such time immediately prior to the
consummation of the Change in Control as the Board shall designate, to
exercise the Optionee's Stock Options to the full extent not theretofore
exercised, including any installments which have not yet become vested.

                          ARTICLE VIII
                          ------------
                           DEFINITIONS

     Capitalized terms used in this Plan and not otherwise defined shall have
the meanings set forth below:

     "Administering Body" shall mean the Board as long as no Consultants' Plan
Committee has been appointed and is in effect and shall mean the Consultants'
Plan Committee as long as the Consultants' Plan Committee is appointed and in
effect.

     "Affiliated Entity" means any Parent Corporation or Subsidiary
Corporation.

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

     "Change in Control" means the following and shall be deemed to occur if
any of the following events occur:

     (a) The acquisition, other than from the Company, by any Person other
than Royal Holding Company, Inc. or B.H. Adams of beneficial ownership of
thirty percent (30%) or more of either the then

                              -11-

<PAGE>

outstanding shares of Common Stock or the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors; provided, however, that any acquisition by the Company
or any of its Subsidiaries, or any employee benefit plan (or related trust) of
the Company or its Subsidiaries, or any corporation with respect to which,
following such acquisition, more than fifty percent (50%) of, respectively,
the then outstanding shares of common stock of such corporation and the
combined voting power of the 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
Common Stock and voting securities of the Company immediately prior to such
acquisition in substantially the same proportion as their ownership,
immediately prior to such acquisition, of the then outstanding shares of
Common Stock of the Company or the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors, as the case may be, shall not constitute a Change in
Control;

     (b) Individuals who, as of August 30, 1999, constitute the Board as of
the date thereof (the "Incumbent Board") cease for any reason to constitute at
least a majority of the Board, provided that any individual becoming a
director subsequent to such date whose election, or nomination for election by
the Corporation'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 is in
connection with an actual or threatened election contest relating to the
election of the directors of the Corporation (as such terms are used in Rule
14a-11 of Regulation 14A promulgated under the Exchange Act); or

     (c) Approval by the stockholders of the Corporation of a reorganization,
merger or consolidation of the Corporation, in each case, with respect to
which the individuals and entities who were the respective beneficial owners
of the Common Stock and voting securities of the Corporation immediately prior
to such reorganization, merger or consolidation do not, following such
reorganization, merger or consolidation, beneficially own, directly or
indirectly, more than sixty percent (60%) of, respectively, the then
outstanding shares of Common Stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such
reorganization, merger or consolidation, or a complete liquidation or
dissolution of the Corporation or of the sale or other disposition of all or
substantially all of the assets of the Corporation.

     "Commission" means the Securities and Exchange Commission.

     "Common Stock" means the common stock of the Company, par value $.001 per
share, as constituted on the Effective Date of this Plan, and as thereafter
adjusted as a result of any one or more events requiring adjustment of
outstanding Stock Options under Section 3.4 above.

     "Company" means Adams Golf, Inc., a Delaware corporation.

     "Consultants' Plan Committee" means the committee appointed by the Board
to administer this Plan pursuant to Section 4.1.

                              -12-

<PAGE>

     "Effective Date" means August 30, 1999, which is the date this Plan was
adopted by the Board.

     "Eligible Person" shall include only natural persons that are
non-employee, current or former tour professionals, golf instructors,
psychologists or other advisors acting as outside consultants to the Company
or any Affiliated Entity.

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

     "Expiration Date" means the tenth anniversary of the Effective Date,
specifically August 30, 2009.

     "Fair Market Value" of a share of the Company's capital stock as of a
particular date shall be: (a) if the stock is listed on an established stock
exchange or exchanges (including for this purpose, The Nasdaq National
Market), the average of the highest and lowest sale prices of the stock quoted
for such date as reported in the transactions index of each such exchange, as
published in The Wall Street Journal and determined by the Administering Body,
or, if no sale price was quoted in any such index for such date, then as of
the next preceding date on which such a sale price was quoted; or (b) if the
stock is not then listed on an exchange or the Nasdaq National Market, the
average of the closing bid and asked prices per share for the stock in the
over-the-counter market as quoted on The Nasdaq Small Cap Market on such date
(in the case of (a) or (b), subject to adjustment as and if necessary and
appropriate to set an exercise price not less than 100% of the Fair Market
Value of the stock on the date an option is granted); or (c) if the stock is
not then listed on an exchange or quoted in the over-the-counter market, an
amount determined in good faith by the Administering Body; provided, however,
that (i) when appropriate, the Administering Body, in determining Fair Market
Value of capital stock of the Company, may take into account such other
factors as it may deem appropriate under the circumstances and (ii) if the
stock is traded on The Nasdaq Small Cap Market and both sales prices and bid
and asked prices are quoted or available, the Administering Body may elect to
determine Fair Market Value under either clause (i) or (ii) above.

     "Immediate Family" means the Recipient's spouse, children or
grandchildren (including adopted and stepchildren and grandchildren).

     "IRC" means the Internal Revenue Code of 1986, as amended.

     "Non-qualified Stock Option" means a Stock Option that is not an
incentive stock option under Section 422 of the IRC, or any successor statute
thereto.

     "Optionee" means a Recipient or the Recipient's successor in interest.

     "Parent Corporation" means any "parent corporation" as defined in Section
424(e) of the IRC.

     "Permanent Disability" shall mean that the Recipient becomes physically
or mentally incapacitated or disabled so that the Recipient is unable to
perform substantially the same services as the Recipient performed prior to
incurring such incapacity or disability (the Company, at its option and
expense, being entitled to retain a physician to confirm the existence

                              -13-

<PAGE>

of such incapacity or disability, and the determination of such physician to
be binding upon the Company and the Recipient), and such incapacity or
disability continues for a period of three consecutive months or six months in
any 12-month period or such other period(s) as may be determined by the
Consultants' Plan Committee with respect to any Stock Option.

     "Person" means any person, entity or group, within the meaning of Section
13(d) or 14(d) of the Exchange Act, but excluding (a) the Company and its
subsidiaries, (b) any employee stock ownership or other employee benefit plan
maintained by the Company that is qualified under the Employee Retirement
Income Security Act of 1974, as amended, and (c) an underwriter or
underwriting syndicate that has acquired the Company's securities solely in
connection with a public offering thereof.

     "Permitted Transferee" means (a) the Recipient's Immediate Family; (b) a
trust solely for the benefit of the Recipient and/or his or her Immediate
Family; or (c) a partnership or limited liability company the partners or
stockholders of which are limited to the Recipient and members of his or her
Immediate Family.

     "Plan" means this 1999 Stock Option Plan for Outside Consultants of the
Company.

     "Plan Term" means the period during which this Plan remains in effect
(commencing on the Effective Date and ending on the Expiration Date).

     "Recipient" means a person who has received a Stock Option under this
Plan.

     "Reorganization" means any merger, consolidation or other reorganization.

     "Securities Act" means the Securities Act of 1933, as amended.

     "Stock Option" means a right to purchase stock of the Company granted
under Article VI of this Plan to an Eligible Person.

     "Stock Option Document" means the agreement or confirming memorandum
setting forth the terms and conditions of Stock Options.

     "Subsidiary Corporation" means any "subsidiary corporation" as defined in
Section 424(f) of the IRC.

                              -14-

<PAGE>

                     STOCK OPTION AGREEMENT
                              UNDER
         1999 STOCK OPTION PLAN FOR OUTSIDE CONSULTANTS
                               OF
                        ADAMS GOLF, INC.

     STOCK OPTION AGREEMENT (this "Agreement") entered into this ____ day of
___________, ____, between ADAMS GOLF, INC., a Delaware corporation (the
"Corporation"), and ________________________________, an Eligible Person (as
that term is defined by the Corporation's 1999 Stock Option Plan for Outside
Consultants (the "Plan")) (the "Optionee," which term as used herein shall be
deemed to include any successor to the Optionee by will or by the laws of
descent and distribution, unless the context shall otherwise require, as
provided in the Plan).

     Pursuant to the Plan, the Administering Body approved the issuance to the
Optionee, effective as of the date set forth above, of a Non-qualified Stock
Option to purchase up to an aggregate of ____________ shares of common stock,
par value $.001, of the Corporation (the "Common Stock"), at the price of
$____ per share (the "Option Price") which represents not less than 100% of
the Fair Market Value of a share of Common Stock determined in accordance with
the Plan, upon the terms and conditions hereinafter set forth. (Capitalized
terms used herein but not defined herein shall have the meaning ascribed to
them in the Plan).

     NOW, THEREFORE, in consideration of the mutual premises and undertakings
hereinafter set forth, the parties hereto agree as follows:

     1.  Option; Option Price. On behalf of the Corporation, the Administering
Body hereby grants as of the date of this Agreement to the Optionee the option
(the "Option") to purchase, subject to the terms and conditions of this
Agreement and the provisions of the Plan (which is incorporated by reference
herein and which in all cases shall control in the event of any conflict with
the terms, definitions and provisions of this Agreement), _______________
shares of Common Stock of the Corporation at an exercise price per share equal
to the Option Price. A copy of the Plan as in effect on the date hereof has
been supplied to the Optionee, and the Optionee by executing this Agreement
hereby acknowledges receipt thereof.

     2.  Term. The term (the "Option Term") of the Option shall commence on
the date of this Agreement and shall terminate on the ______ anniversary of
the date of this Agreement, unless such Option shall theretofore have been
terminated in accordance with the terms hereof or the provisions of the Plan.

     3.  Vesting; Restrictions on Exercise.

     (a) Subject to the provisions of Sections 5 and 8 hereof, and unless
accelerated, as set forth in the Plan or as provided herein, the Option
granted hereunder shall vest and become exercisable for the number of shares
set forth opposite the dates noted below (the "Option Vesting Schedule").

<PAGE>

                                   Cumulative
          Date(s)           Number of Vested Shares

     (b) If the Corporation shall consummate any merger, consolidation or
other reorganization not involving a Change in Control (a "Reorganization") in
which holders of shares of Common Stock are entitled to receive in respect of
such shares any securities, cash or other consideration (including, without
limitation, a different number of shares of Common Stock), the Option shall
thereafter be exercisable, in accordance with the Plan and this Agreement,
only for the kind and amount of securities, cash and/or other consideration
receivable upon such Reorganization by a holder of the same number of shares
of Common Stock as are subject to the Option immediately prior to such
Reorganization, and any adjustments will be made to the terms of the Option in
the sole discretion of the Administering Body as it may deem appropriate to
give effect to the Reorganization.

     (c) Subject to the provisions of Sections 5 and 8 hereof, shares as to
which the Option becomes exercisable pursuant to the foregoing provisions may
be purchased at any time thereafter prior to the expiration or termination of
the Option.

     4.  Termination of Option.

     (a) The unexercised portion of the Option shall automatically and without
notice terminate and become null and void at the time of the earliest to occur
of:

         (i)  six (6) months after the Optionee's engagement with the
     Corporation is terminated as a result of death or Permanent Disability;

(ii) sixty (60) days after the Optionee's engagement with the Corporation is
terminated for any reason other than death or Permanent Disability;

         (iii)     the expiration date of the term of the Option; or

     5.  Procedure for Exercise.

     (a) Subject to the requirements of Section 8, the Option may be
exercised, from time to time, in whole or in part (but for the purchase of a
whole number of shares only), by delivery of a written notice, a form of which
has been attached as Annex A hereto (the "Notice"), from the Optionee to the
Secretary of the Corporation, which Notice shall:

         (i)  state that the Optionee elects to exercise the Option;

                               -2-

<PAGE>

         (ii)  state the number of vested shares with respect to which the
     Option is being exercised (the "Optioned Shares");

         (iii) state the date upon which the Optionee desires to consummate the
     purchase of the Optioned Shares (which date must be prior to the
     termination of such Option and no later than thirty (30) days after the
     date of receipt of such Notice);

         (iv)  include any representations of the Optionee required under
     Section 8(c); and

         (v)   if the Option shall be exercised pursuant to Section 9 by any
     person other than the Optionee, include evidence to the satisfaction of
     the Administering Body of the right of such person to exercise the Option.

     (b) Payment of the Option Price for the Optioned Shares shall be made in
U.S. dollars by personal check, bank draft or money order payable to the order
of the Corporation or by wire transfer.

     (c) The Corporation shall issue a stock certificate in the name of the
Optionee (or such other person exercising the Option in accordance with the
provisions of Section 9) for the Optioned Shares as soon as practicable after
receipt of the Notice and payment of the aggregate Option Price for such
shares.

     6.  No Rights as a Stockholder. The Optionee shall have no rights as a
stockholder of the Corporation with respect to any Optioned Shares until the
date the Optionee or his nominee (which, for purposes of this Agreement, shall
include any third party agent selected by the Administering Body to hold such
Option Shares on behalf of the Optionee), guardian or legal representative is
the holder of record of such Optioned Shares.

     7.  Adjustments.

     (a) If at any time while the Option is outstanding, (1) there shall be
any increase or decrease in the number of issued and outstanding shares of
Common Stock through the declaration of a stock dividend, stock split,
combination of shares or through any recapitalization resulting in a stock
split-up, spin-off, combination or exchange of shares of Common Stock or (2)
the value of the outstanding shares of Common Stock is reduced by reason of an
extraordinary cash dividend, then and in each such event appropriate
adjustment shall be made in the number of shares and the exercise price per
share covered by the Option, so that the same proportion of the Corporation's
issued and outstanding shares of Common Stock shall remain subject to purchase
at the same aggregate exercise price.

     (b) Except as otherwise expressly provided herein, the issuance by the
Corporation of shares of its capital stock of any class, or securities
convertible into shares of capital stock of any class, either in connection
with a direct sale or upon the exercise of rights or warrants to subscribe
therefor, or upon conversion of shares or obligations of the Corporation
convertible into such shares

                               -3-

<PAGE>

or other securities, shall not affect, and no adjustment by reason thereof
shall be made with respect to, the number of or exercise price of shares of
Common Stock covered by the Option.

     (c) Without limiting the generality of the foregoing, the existence of
the Option shall not affect in any manner the right or power of the
Corporation to make, authorize or consummate (i) any or all adjustments,
recapitalizations, reorganizations or other changes in the Corporation's
capital structure or its business; (ii) any merger or consolidation of the
Corporation; (iii) any issue by the Corporation of debt securities, or
preferred or preference stock that would rank above the shares of Common Stock
covered by the Option; (iv) the dissolution or liquidation of the Corporation;
(v) any sale, transfer or assignment of all or any part of the assets or
business of the Corporation; or (vi) any other corporate act or proceeding,
whether of a similar character or otherwise.

     8.  Additional Provisions Related to Exercise.

     (a) The Option shall be exercisable only in accordance with this
Agreement and the terms of the Plan, including the provisions regarding the
period when the Option may be exercised and the number of shares of Common
Stock that may be acquired upon exercise.

     (b) The Option may not be exercised as to less than one hundred (100)
shares of Common Stock at any one time unless less than one hundred (100)
shares of Common Stock remain to be purchased upon the exercise of the Option.

     (c) To exercise the Option, the Optionee shall follow the provisions of
Section 5 hereof. Upon the exercise of the Option at a time when there is not
in effect a registration statement under the Securities Act of 1933, as
amended (the "Securities Act") relating to the shares of Common Stock issuable
upon exercise of the Option, the Administering Body in its discretion may, as
a condition to the exercise of the Option, require the Optionee (i) to
represent in writing that the shares of Common Stock received upon exercise of
the Option are being acquired for investment and not with a view to
distribution and (ii) to make such other representations and warranties as are
deemed appropriate by counsel to the Corporation. No Option may be exercised
and no shares of Common Stock shall be issued and delivered upon the exercise
of the Option unless and until the Corporation and/or the Optionee shall have
complied with all applicable federal or state registration, listing and/or
qualification requirements and all other requirements of law or of any
regulatory agencies having jurisdiction.

     (d) Stock certificates representing shares of Common Stock acquired upon
the exercise of the Option that have not been registered under the Securities
Act shall, if required by the Administering Body, bear an appropriate legend
which may, at the discretion of the Administering Body, take the following
form:

         "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT").
         THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
         THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE
         SECURITIES UNDER THE ACT OR PURSUANT TO AN EXEMPTION FROM

                               -4-

<PAGE>

         REGISTRATION OR AN OPINION OF COUNSEL SATISFACTORY TO
         THE CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED."

     (e) The exercise of each Option and the issuance of shares in connection
with the exercise of an Option shall, in all cases, be subject to each of the
following conditions: (i) compliance with the terms of the Plan and this
Agreement, (ii) the satisfaction of withholding tax or other withholding
liabilities, (iii) as necessary, the listing, registration or qualification of
any to- be-issued shares upon any securities exchange, The Nasdaq Stock Market
or other trading or quotation system or under any federal or state law and
(iv) the consent or approval of any regulatory body. The Administering Body
shall in its sole discretion determine whether one or more of these conditions
is necessary or desirable to be satisfied in connection with the exercise of
an Option and prior to the delivery or purchase of shares pursuant to the
exercise of an Option. The exercise of an Option shall not be effective unless
and until such condition(s) shall have been satisfied or the Administering
Body shall have waived such conditions, in its sole discretion.

     9.  Restriction on Transfer. The Option may not be assigned or transferred
except by will or by the laws of descent and distribution or pursuant to a
qualified domestic relations order as defined in the IRC, and may be exercised
during the lifetime of the Optionee only by the Optionee or the Optionee's
guardian or legal representative or assignee pursuant to a qualified domestic
relations order. If the Optionee dies, the Option shall thereafter be
exercisable, during the period specified in Section 4(a)(i), by his executors
or administrators or by a person who acquired the right to exercise such
Option by bequest or inheritance to the full extent to which the Option was
exercisable by the Optionee at the time of his death. If the Optionee becomes
inflicted with a Permanent Disability, the Option shall thereafter be
exercisable, during the period specified in Section 4(a)(i), by his legal
representatives to the full extent to which the Option was exercisable by the
Optionee at the time of his Permanent Disability. The Option shall not be
subject to execution, attachment or similar process. Any attempted assignment
or transfer of the Option contrary to the provisions hereof, and the levy of
any execution, attachment or similar process upon the Option, shall be null
and void and without effect.

     10. Notices. All notices or other communications which are required or
permitted hereunder shall be in writing and sufficient if (i) personally
delivered, (ii) sent by nationally-recognized overnight courier or (iii) sent
by registered or certified mail, postage prepaid, return receipt requested,
addressed as follows:

         if to the Optionee, to the address set forth on the signature page
hereto; and

         if to the Corporation, to:

               Adams Golf, Inc.
               300 Delaware Avenue, Suite 572
               Wilmington, Delaware  19801
               Attention: Secretary

         with a copy to:

               Adams Golf, Ltd.
               c/o Adams Golf GP Corp.
               2801 E. Plano Parkway
               Plano, Texas  75074
               Attention:  President

                               -5-

<PAGE>

or to such other address as the party to whom notice is to be given may have
furnished to each other party in writing in accordance herewith. Any such
communication shall be deemed to have been given (i) when delivered, if
personally delivered, (ii) on the first Business Day (as hereinafter defined)
after dispatch, if sent by nationally-recognized overnight courier and (iii)
on the third Business Day following the date on which the piece of mail
containing such communication is posted, if sent by mail. As used herein,
"Business Day" means a day that is not a Saturday, Sunday or a day on which
banking institutions in the city to which the notice or communication is to be
sent are not required to be open.

     11. No Waiver. No waiver of any breach or condition of this Agreement
shall be deemed to be a waiver of any other or subsequent breach or condition,
whether of like or different nature.

     12. Optionee Undertaking. The Optionee hereby agrees to take whatever
additional actions and execute whatever additional documents the Corporation
or its counsel may in their reasonable judgment deem necessary or advisable in
order to carry out or effect one or more of the obligations or restrictions
imposed on the Optionee pursuant to the express provisions of this Agreement.

     13. Modification of Rights. The rights of the Optionee are subject to
modification and termination in certain events as provided in this Agreement
and the Plan.

     14. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Delaware applicable to contracts
made and to be wholly performed therein.

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

     16. Entire Agreement. This Agreement and the Plan constitute the entire
agreement between the parties with respect to the subject matter hereof, and
supersede all previously written or oral negotiations, commitments,
representations and agreements with respect thereto.

                                ADAMS GOLF, INC.

                                By:
                                   --------------------------------
                                Name:
                                     ------------------------------
                                Title:
                                      -----------------------------

                                OPTIONEE:

                                -----------------------------------
                                Name:
                                     ------------------------------
                                Address:
                                        ---------------------------
                                        ---------------------------
                                        ---------------------------

Annexes
Annex A   -    Form of Exercise Notice

                               -6-

<PAGE>

                                                                        ANNEX A

                         EXERCISE NOTICE

Ladies/Gentlemen:

I hereby exercise my Stock Option to purchase _________ shares of Common Stock
of ADAMS GOLF, INC. at the option price of $____ per share as provided in the
Stock Option Agreement dated the ___ day of ________________.

I acknowledge that I previously received a copy of the 1999 Stock Option Plan
for Outside Consultants of Adams Golf, Inc. and executed a Stock Option
Agreement, and I have carefully reviewed both documents.

I have considered the tax implications of my option and the exercise thereof.
I hereby tender my personal check, bank draft or money order payable to ADAMS
GOLF, INC. in the amount of $____________ or, I have wire transferred
$_______________ to ADAMS GOLF, INC., which transfer shall be subject to the
confirmation of receipt of funds by the Corporation. [If payment is to be made
by wire transfer, the Optionee should contact the Corporation's Chief Financial
Officer or Controller in advance to obtain wiring instructions.]

------------------------------
Optionee

------------------------------
Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00004-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00004-of-00352.parquet"}]]