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Sample Business Contracts

1993 Stock Option Plan - Countrywide Credit Industries Inc.

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                       COUNTRYWIDE CREDIT INDUSTRIES, INC.

                             1993 STOCK OPTION PLAN

                   (Amended and Restated as of March 27, 1996)




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                                                       i                                 FFNY01\YAWMADA\NORMAL\Plan
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                                        COUNTRYWIDE CREDIT INDUSTRIES, INC.

                                              1993 STOCK OPTION PLAN

                                    (Amended and Restated as of March 27, 1996)

                                                                                                          
1.     Purpose................................................................................................1
2.     Definitions............................................................................................1
3.     Administration.........................................................................................6
4.     Stock Subject to Program...............................................................................7
5.     Option Grants for Nonemployee Directors................................................................8
6.     Option Grants for Eligible Employees...................................................................9
7.     Terms and Conditions Applicable to All Options.........................................................10
8.     Adjustment Upon Changes in Capitalization..............................................................12
9.     Effect of Certain Transactions.........................................................................12
10.    Termination and Amendment of the Plan..................................................................13
11.    Non-Exclusivity of the Plan............................................................................13
12.    Limitation of Liability................................................................................13
13.    Regulations and Other Approvals; Governing Law.........................................................14
14.    Miscellaneous..........................................................................................15
15.    Effective Date.........................................................................................16




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                                     Page 38
                       COUNTRYWIDE CREDIT INDUSTRIES, INC.

                             1993 STOCK OPTION PLAN

                   (Amended and Restated as of March 27, 1996)


1.       Purpose.
         The  purpose  of  this  Plan  is  to  strengthen   Countrywide   Credit
Industries,  Inc. by providing an incentive to its key  employees  and directors
and thereby  encouraging  them to devote  their  abilities  and  industry to the
success of the Company's business  enterprise.  It is intended that this purpose
be achieved by extending to key  employees  and directors of the Company and the
Subsidiaries  an added  long-term  incentive for high levels of performance  and
unusual efforts through the grant of options to purchase shares of the Company's
common stock under the amended and restated Countrywide Credit Industries,  Inc.
1993 Stock Option Plan.


2.       Definitions.
         For purposes of the Plan:

         (a) "Adjusted  Fair Market  Value"  means,  in the event of a Change in
Control,  the greater of (1) the highest  price per Share paid to holders of the
Shares in any transaction (or series of transactions)  constituting or resulting
in a Change in Control or (2) the highest  Fair Market  Value of a Share  during
the ninety (90) day period ending on the date of a Change in Control.

         (b) "Agreement"  means the written agreement between the Company and an
Optionee  evidencing  the grant of an  Option  and  setting  forth the terms and
conditions thereof.

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

         (d)   "Cause"   means  (1)  any  act  of  (A)   fraud  or   intentional
misrepresentation, or (B) embezzlement, misappropriation or conversion of assets
or  opportunities  of the  Company  or any  direct  or  indirect  majority-owned
subsidiary  of the  Company,  or (2)  willful  violation  of any  law,  rule  or
regulation in connection  with the  performance  of an Optionee's  duties (other
than traffic violations or similar offenses).

         (e) "Change in  Capitalization"  means any increase or reduction in the
number of Shares, or exchange of Shares for a different number or kind of shares
or  other  securities  of  the  Company,   by  reason  of  a   reclassification,
recapitalization,  merger, consolidation,  reorganization, stock dividend, stock
split or reverse  stock  split,  combination  or  exchange  of shares,  or other
similar event.

     (f) "Change in Control"  means the  occurrence  of any one of the following
events:

     (1) An acquisition  (other than directly from Employer) of any common stock
or other  "Voting  Securities"  (as  hereinafter  defined)  of  Employer  by any
"Person" (as the term person is used for  purposes of Section  13(d) or 14(d) of
the  Securities  Exchange  Act  of  1934,  as  amended  (the  "Exchange  Act")),
immediately  after  which such  Person has  "Beneficial  Ownership"  (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty five percent
(25%) or more of the then outstanding  shares of Employer's  common stock or the
combined  voting  power  of  Employer's  then  outstanding   Voting  Securities;
provided, however, in determining whether a Change in Control has
     -------- -------
     occurred,   Voting   Securities   which  are  acquired  in  a  "Non-Control
Acquisition" (as hereinafter  defined) shall not constitute an acquisition which
would cause a Change in Control.  For  purposes of this  Agreement,  (A) "Voting
Securities" shall mean Employer's outstanding voting securities entitled to vote
generally in the election of directors and (B) a "Non-Control Acquisition" shall
mean an acquisition  by (i) an employee  benefit plan (or a trust forming a part
thereof)  maintained by (x) Employer or (y) any  corporation  or other Person of
which a majority of its voting power or its voting  equity  securities or equity
interest is owned,  directly or  indirectly,  by Employer  (for purposes of this
definition, a "Subsidiary"),  (ii) Employer or any of its Subsidiaries, or (iii)
any  Person in  connection  with a  "Non-Control  Transaction"  (as  hereinafter
defined);

     (2) The  individuals who as of March 27, 1996 are members of the Board (the
"Incumbent Board") cease for any reason to constitute at least two-thirds of the
members of the Board; provided, however, that if the election, or nomination for
election by
     -------- -------
     Employer's common stockholders,  of any new director was approved by a vote
of at least  two-thirds of the Incumbent  Board,  such new director  shall,  for
purposes of this  Agreement,  be considered as a member of the Incumbent  Board;
provided further,
     -------- -------
     however,  that no individual  shall be considered a member of the Incumbent
Board if
     -------
     such individual initially assumed office as a result of either an actual or
threatened "Election Contest" (as described in Rule 14a-11 promulgated under the
Exchange Act) or other actual or threatened  solicitation of proxies or consents
by or on behalf of a Person other than the Board (a "Proxy  Contest")  including
by reason of any agreement  intended to avoid or settle any Election  Contest or
Proxy Contest; or

     (3) The consummation of:

     (A) A merger,  consolidation or reorganization  involving Employer,  unless
such merger,  consolidation or reorganization is a "Non-Control  Transaction." A
"Non-Control  Transaction" shall mean a merger,  consolidation or reorganization
of Employer where:

     (i)  the  stockholders  of  Employer,   immediately   before  such  merger,
consolidation  or  reorganization,   own  directly  or  indirectly   immediately
following such merger, consolidation or reorganization, at least seventy percent
(70%) of the combined voting power of the outstanding  Voting  Securities of the
corporation  resulting from such merger,  consolidation or  reorganization  (the
"Surviving Corporation") in substantially the same proportion as their ownership
of the Voting  Securities  immediately  before  such  merger,  consolidation  or
reorganization;

     (ii) the individuals  who were members of the Incumbent  Board  immediately
prior to the execution of the agreement providing for such merger, consolidation
or reorganization  constitute at least two-thirds of the members of the board of
directors  of the  Surviving  Corporation,  or in the  event  that,  immediately
following the consummation of such transaction, a corporation beneficially owns,
directly or  indirectly,  a majority of the Voting  Securities  of the Surviving
Corporation, the board of directors of such corporation; and

     (iii) no  Person  other  than (w)  Employer,  (x) any  Subsidiary,  (y) any
employee  benefit  plan (or any trust  forming  a part  thereof)  maintained  by
Employer, the Surviving Corporation,  or any Subsidiary,  or (z) any Person who,
immediately prior to such merger, consolidation or reorganization had Beneficial
Ownership of twenty five percent  (25%) or more of the then  outstanding  Voting
Securities or common stock of Employer,  has Beneficial Ownership of twenty five
percent   (25%)  or  more  of  the  combined   voting  power  of  the  Surviving
Corporation's then outstanding Voting Securities or its common stock;

     (B) A complete liquidation or dissolution of Employer; or

     (C) The sale or other disposition of all or substantially all of the assets
of Employer to any Person (other than a transfer to a Subsidiary).

                  Notwithstanding  the foregoing,  a Change in Control shall not
be deemed to occur solely  because any Person (the  "Subject  Person")  acquired
Beneficial  Ownership of more than the permitted  amount of the then outstanding
common stock or Voting Securities as a result of the acquisition of common stock
or Voting  Securities  by Employer  which,  by reducing  the number of shares of
common stock or Voting Securities then  outstanding,  increases the proportional
number of shares Beneficially Owned by the Subject Persons;  provided,  however,
that if a Change in Control would occur (but for the operation of this sentence)
as a result of the acquisition of common stock or Voting Securities by Employer,
and after such share  acquisition  by Employer,  the Subject  Person becomes the
Beneficial  Owner of any  additional  common  stock or Voting  Securities  which
increases  the  percentage  of the  then  outstanding  common  stock  or  Voting
Securities  Beneficially  Owned by the Subject Person,  then a Change in Control
shall occur.

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

         (h)  "Committee"  means a  committee  consisting  of at  least  two (2)
directors  appointed  by the Board to  administer  the Plan and to  perform  the
functions set forth herein.

         (i)      "Company" means Countrywide Credit Industries, Inc.

     (j)  "Director  Option" means an Option  granted to a Nonemployee  Director
pursuant to Section 5.

         (k) "Disability" means a physical or mental infirmity which impairs the
Optionee's  ability to perform  substantially  his or her duties for a period of
one hundred eighty (180) consecutive days.

         (l)  "Disinterested  Director"  means a director  of the Company who is
"disinterested" within the meaning of Rule 16b-3 under the Exchange Act.

         (m) "Eligible  Employee" means any officer or other key employee of the
Company or a  Subsidiary  designated  by the  Committee  as  eligible to receive
Options subject to the conditions set forth herein.

     (n)  "Employee  Option"  means an Option  granted to an  Eligible  Employee
pursuant to Section 6.

     (o) "Exchange Act" means the Securities Exchange Act of 1934, as amended.
         (p) "Fair  Market  Value" on any date means the average of the high and
low sales prices of the Shares on such date on the principal national securities
exchange on which such  Shares are listed or  admitted  to  trading,  or if such
Shares are not so listed or admitted to trading,  the arithmetic mean of the per
Share closing bid price and per Share closing asked price on such date as quoted
on the National  Association of Securities Dealers Automated Quotation System or
such other market in which such prices are regularly  quoted,  or, if there have
been no published bid or asked  quotations  with respect to Shares on such date,
the Fair Market Value shall be the value  established by the Board in good faith
and in accordance with Section 422 of the Code.

         (q)   "Incentive   Stock  Option"  means  an  Option   satisfying   the
requirements  of Section 422 of the Code and  designated  by the Committee as an
Incentive Stock Option.

     (r)  "Nonemployee  Director"  means a director of the Company who is not an
employee of the Company or any Subsidiary.

     (s)  "Nonqualified  Stock Option" means an Option which is not an Incentive
Stock Option.

     (t) "Option" means an Employee Option, a Director Option, or either or both
of them.

     (u) "Optionee"  means a person to whom an Option has been granted under the
Plan.

         (v)  "Outside  Director"  means a  director  of the  Company  who is an
"outside  director"  within the  meaning  of Section  162(m) of the Code and the
regulations promulgated thereunder.

         (w)  "Parent"  means  any  corporation  which is a  parent  corporation
(within the meaning of Section 424(e) of the Code) with respect to the Company.

     (x) "Plan" means the Countrywide Credit Industries,  Inc. 1993 Stock Option
Plan, as amended and restated effective March 27, 1996.

     (y)  "Shares"  means the common  stock,  par value  $.05 per share,  of the
Company.
         (z)   "Subsidiary"   means  any  corporation   which  is  a  subsidiary
corporation  (within the meaning of Section  424(f) of the Code) with respect to
the Company.

         (aa)  "Successor  Corporation"  means a  corporation,  or a  parent  or
subsidiary  thereof  within the  meaning of  Section  424(a) of the Code,  which
issues or assumes a stock option in a transaction to which Section 424(a) of the
Code applies.

         (bb) "Ten-Percent  Stockholder" means an Eligible Employee, who, at the
time an Incentive  Stock Option is to be granted to him or her, owns (within the
meaning of Section 422(b)(6) of the Code) stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company,
or of a Parent or a Subsidiary.


3.       Administration.
         (a) The Plan shall be administered  by the Committee,  which shall hold
meetings at such times as may be necessary for the proper  administration of the
Plan. The Committee  shall keep minutes of its meetings.  A quorum shall consist
of not less than two  members of the  Committee  and a majority  of a quorum may
authorize  any  action.  Any  decision or  determination  reduced to writing and
signed by a majority of all of the  members  shall be as fully  effective  as if
made by a majority  vote at a meeting  duly called and held.  Each member of the
Committee shall be a Disinterested  Director and an Outside Director.  No member
of the Committee shall be liable for any action,  failure to act,  determination
or  interpretation  made  in  good  faith  with  respect  to  this  Plan  or any
transaction hereunder,  except for liability arising from his or her own willful
misfeasance,  gross negligence or reckless  disregard of his or her duties.  The
Company  hereby  agrees to indemnify  each member of the Committee for all costs
and expenses  and, to the extent  permitted  by  applicable  law, any  liability
incurred in connection with defending  against,  responding to,  negotiation for
the  settlement  of or  otherwise  dealing  with any  claim,  cause of action or
dispute of any kind arising in connection with any actions in administering this
Plan or in authorizing or denying authorization to any transaction hereunder.

         (b) Subject to the express terms and conditions  set forth herein,  the
Committee shall have the power from time to time to:

                  (1)  determine  those  Eligible  Employees  to  whom  Employee
Options  shall be  granted  under  the Plan and the  number of  Incentive  Stock
Options  and/or  Nonqualified  Stock  Options  to be  granted  to each  Eligible
Employee and to prescribe the terms and conditions (which need not be identical)
of each such Employee Option,  including the purchase price per Share subject to
each Employee  Option,  and make any amendment or  modification to any Agreement
consistent with the terms of the Plan;

                  (2) to construe and interpret the Plan and the Options granted
hereunder  and to  establish,  amend and revoke  rules and  regulations  for the
administration of the Plan, including, but not limited to, correcting any defect
or supplying any omission,  or reconciling any  inconsistency  in the Plan or in
any  Agreement,  in the  manner and to the  extent it shall  deem  necessary  or
advisable so that the Plan complies with  applicable  law,  including Rule 16b-3
under the Exchange Act and the Code to the extent  applicable,  and otherwise to
make the Plan fully effective. All decisions and determinations by the Committee
in the exercise of this power shall be final,  binding and  conclusive  upon the
Company,  its  Subsidiaries,  the  Optionees  and all other  persons  having any
interest therein;

                  (3) to  determine  the  duration  and  purposes  for leaves of
absence  which may be granted to an  Optionee  on an  individual  basis  without
constituting a termination of employment or service for purposes of the Plan;

     (4) to  exercise  its  discretion  with  respect  to the  powers and rights
granted to it as set forth in the Plan; and

                  (5)  generally,  to exercise  such powers and to perform  such
acts as are deemed  necessary or advisable to promote the best  interests of the
Company with respect to the Plan.


4.       Stock Subject to Program.
         (a) The  maximum  number  of  Shares  that may be made the  subject  of
Options   granted   under  the  Plan  is  ten  million  five  hundred   thousand
(10,500,000);  provided,  however, that the maximum number of Shares that may be
the subject of Options granted to any Eligible Employee from and after March 27,
1996 and during the term of the Plan may not exceed three  million  (3,000,000).
Upon a Change in  Capitalization  the maximum number of Shares shall be adjusted
in number and kind  pursuant  to Section 8. The  Company  shall  reserve for the
purposes of the Plan, out of its authorized but unissued Shares or out of Shares
held in the Company's treasury,  or partly out of each, such number of Shares as
shall be determined by the Board.

         (b) Whenever any  outstanding  Option or portion  thereof  expires,  is
canceled  or is  otherwise  terminated  for any  reason  (other  than  upon  the
surrender of the Option pursuant to Section 7(e) hereof),  the Shares  allocable
to the expired,  canceled or otherwise  terminated Option or portion thereof may
again be the subject of Options granted hereunder.


5.       Option Grants for Nonemployee Directors.
         (a)  Grant.  Director  Options  shall be  granted  to each  Nonemployee
Director  on the  first  business  day of June of each  year that the Plan is in
effect.  The number of Shares and the purchase  price  therefor of each Director
Option  shall  be as  provided  in this  Section  5 and  such  Options  shall be
evidenced  by an  Agreement  containing  such  other  terms and  conditions  not
inconsistent  with the  provisions  of this  Plan as  determined  by the  Board.
Notwithstanding the foregoing provisions of this Subsection (a), no Option shall
be granted in any year to a  Nonemployee  Director who makes a written  election
not to receive such Option under the Plan,  provided such election is filed with
the  Secretary  of the Company at least one  business day prior to the date such
grant  would  otherwise  be made  under the  Plan;  provided,  further,  that an
election made pursuant to this sentence  shall remain  effective  until the next
business day following the date a written notice  revoking such election is made
and filed with the Secretary of the Company. A Nonemployee Director who makes an
election not to receive an Option will not receive  anything from the Company in
lieu thereof.

         (b) Number of Shares.  Each Director Option granted shall be in respect
of a number of Shares equal to the lesser of (1) 7,500 multiplied by a fraction,
the numerator of which is the earnings per Share on a fully diluted basis of the
Company for the fiscal year of the Company ended immediately  before the date of
grant of the Director  Option (as reported in the audited  Financial  Statements
included in the Company's  Annual Report on Form 10-K filed with the  Securities
and  Exchange  Commission  ("SEC"),  but in no event  less than  zero) (the "EPS
Numerator Amount") and the denominator of which is $.68, or (2) 7,500 multiplied
by a  fraction,  the  numerator  of which is the EPS  Numerator  Amount  and the
denominator  of which is the earnings per share on a fully  diluted basis of the
Company for the fiscal year immediately  preceding the fiscal year in respect of
which the EPS Numerator Amount is determined as reported in the Company's Annual
Report on Form 10-K filed with the SEC.  The  number  7,500 and the $.68  amount
referred to in the previous sentence shall be equitably adjusted in the event of
a Change in Capitalization.

     (c)  Purchase  Price.  The purchase  price for Shares  under each  Director
Option  shall be equal to 100% of the Fair  Market  Value of a Share on the date
the Director Option is granted.

     (d) Duration. Director Options shall be for a term of ten (10) years.

         (e) Vesting.  Subject to Section 7(e) hereof, Director Options shall be
exercisable  in  whole or in part at any time  after  one year  from the date of
grant of the Director Option.

         (f) The  provisions  in this  Section 5 shall not be amended  more than
once every six  months,  other than to comport  with  changes in the Code or the
rules and regulations thereunder.

         (g) Notwithstanding  the foregoing,  no Director Option will be granted
to any  Nonemployee  Director  pursuant  to  this  Section  5 on any day if such
Nonemployee Director is granted an option pursuant to Section 5 of the Company's
1991 Stock Option Plan on such day.


6.       Option Grants for Eligible Employees.
         (a) Subject to the  provisions  of the Plan and to Section  4(a) above,
the  Committee  shall have full and final  authority  to select  those  Eligible
Employees who will receive Employee  Options,  the terms and conditions of which
shall be set forth in an Agreement; provided, however, that no Eligible Employee
shall receive any Incentive Stock Options unless he or she is an employee of the
Company,  a Parent or a  Subsidiary  at the time the  Incentive  Stock Option is
granted.

         (b)  Purchase  Price.  The  purchase  price or the  manner in which the
purchase price is to be determined  for Shares under each Employee  Option shall
be  determined  by the  Committee  and set  forth  in the  Agreement;  provided,
however,  that the purchase price per Share under each Employee Option shall not
be less than 100% of the Fair Market  Value of a Share on the date the  Employee
Option is granted  (110% in the case of an Incentive  Stock Option  granted to a
Ten-Percent Stockholder).

         (c) Duration. Employee Options granted hereunder shall be for such term
as the Committee  shall  determine,  provided  that no Employee  Option shall be
exercisable  after the  expiration of ten (10) years from the date it is granted
(five  (5)  years  in  the  case  of an  Incentive  Stock  Option  granted  to a
Ten-Percent  Stockholder).  The Committee may, subsequent to the granting of any
Employee  Option,  extend the term  thereof but in no event shall the term as so
extended exceed the maximum term provided for in the preceding sentence.

         (d)  Vesting.  Subject to Section  7(e) hereof,  each  Employee  Option
shall,  commencing  not earlier  than the first  anniversary  of the date of its
grant,  become exercisable in such installments (which need not be equal) and at
such times as may be designated by the Committee and set forth in the Agreement.
To the extent not exercised,  installments  shall accumulate and be exercisable,
in whole or in part, at any time after becoming exercisable,  but not later than
the  date  the  Employee  Option  expires.  The  Committee  may  accelerate  the
exercisability of any Employee Option or portion thereof at any time.

         (e) Modification or Substitution. The Committee may, in its discretion,
modify  outstanding  Employee  Options or accept the  surrender  of  outstanding
Employee  Options  (to the  extent  not  exercised)  and  grant new  Options  in
substitution  for them.  Notwithstanding  the foregoing,  no  modification of an
Employee Option shall adversely alter or impair any rights or obligations  under
the Employee Option without the Optionee's consent.


7.       Terms and Conditions Applicable to All Options.
         (a)  Non-transferability.  Unless  provided  for to the contrary in the
Agreement,  no Option granted hereunder shall be transferable by the Optionee to
whom granted otherwise than by will or the laws of descent and distribution, and
an Option may be  exercised  during the  lifetime of such  Optionee  only by the
Optionee  or his or her  guardian  or legal  representative.  The  terms of such
Option shall be final, binding and conclusive upon the beneficiaries, executors,
administrators, heirs and successors of the Optionee.

         (b) Method of Exercise. The exercise of an Option shall be made only by
a written notice  delivered in person or by mail to the Secretary of the Company
at the Company's principal executive office,  specifying the number of Shares to
be purchased  and  accompanied  by payment  therefor and otherwise in accordance
with the Agreement pursuant to which the Option was granted.  The purchase price
for any Shares purchased  pursuant to the exercise of an Option shall be paid in
full upon such exercise, by any one or a combination of the following: (1) cash,
(2) pursuant to the  Company's  Stock  Option  Financing  Plan  (approved by the
Company's  shareholders  at the Company's  1987 Annual  Meeting) as amended from
time to time or any  successor  or  additional  financing  plan  approved by the
Board,  through the execution of a promissory  note and pledge  agreement or (3)
transferring  Shares to the  Company.  In  addition,  Options  may be  exercised
through a registered broker-dealer pursuant to such cashless exercise procedures
(other than Share  withholding)  which are, from time to time, deemed acceptable
by the  Committee.  Any  Shares  transferred  to the  Company  as payment of the
purchase price under an Option shall be valued at their Fair Market Value on the
day  preceding  the  date  of  exercise  of such  Option.  If  requested  by the
Committee, the Optionee shall deliver the Agreement evidencing the Option to the
Secretary of the Company who shall  endorse  thereon a notation of such exercise
and return such Agreement to the Optionee. No fractional Shares (or cash in lieu
thereof)  shall be issued  upon  exercise  of an Option and the number of Shares
that may be purchased  upon exercise  shall be rounded to the nearest  number of
whole Shares.

         (c) Rights of Optionees. No Optionee shall be deemed for any purpose to
be the owner of any Shares subject to any Option unless and until (1) the Option
shall have been exercised  pursuant to the terms thereof,  (2) the Company shall
have issued and delivered the Shares to the Optionee and (3) the Optionee's name
shall have been entered as a stockholder  of record on the books of the Company.
Thereupon,  the Optionee  shall have full voting,  dividend and other  ownership
rights with respect to such Shares.

         (d)  Termination  of  Employment.  Unless  otherwise  provided  in  the
Agreement  evidencing the Option, an Option shall terminate upon or following an
Optionee's  termination of employment  with the Company and its  Subsidiaries or
service as a director of the Company and its Subsidiaries as follows:

                  (1) if an  Optionee's  employment  or  service  as a  director
terminates  for any reason other than death,  Disability or Cause,  the Optionee
may at any  time  within  three  (3)  months  after  his or her  termination  of
employment or service as a director,  exercise an Option to the extent, and only
to the extent, that the Option or portion thereof was exercisable on the date of
termination;

                  (2) in the event the  Optionee's  employment  or  service as a
director  terminates  as a result of  Disability,  the  Optionee may at any time
within one (1) year after such  termination  exercise such Option to the extent,
and only to the extent,  the Option or portion  thereof was  exercisable  at the
date of such termination;

     (3) if an  Optionee's  employment or service as a director  terminates  for
Cause,  the Option shall terminate  immediately and no rights  thereunder may be
exercised;

                  (4) if an Optionee dies while a director or an employee of the
Company or any Subsidiary or within three months after  termination as described
in clause (1) of this Section 7(d) or within one (1) year after termination as a
result of Disability as described in clause (2) of this Section 7(d), the Option
may be exercised at any time within one (1) year after the  Optionee's  death by
the person or persons to whom such rights under the Option shall pass by will or
by the laws of descent and distribution;  provided,  however, that an Option may
be exercised to the extent,  and only to the extent,  that the Option or portion
thereof was exercisable on the date of death or earlier termination.

                  Notwithstanding the foregoing,  (1) in no event may any Option
be exercised by anyone after the  expiration of the term of the Option and (2) a
termination of service as a director shall not be deemed to occur so long as the
director  continues  to serve the  Company  as  either a  director  or  director
emeritus.

         (e) Effect of Change in Control.  Notwithstanding anything contained in
the Plan or an Agreement to the  contrary,  in the event of a Change in Control,
(1) all Options  outstanding  on the date of such Change in Control shall become
immediately  and fully  exercisable  and (2) an Optionee  shall be  permitted to
surrender for cancellation  within sixty (60) days after such Change in Control,
any  Option or portion  of an Option to the  extent  not yet  exercised  and the
Optionee  will be entitled to receive a cash  payment in an amount  equal to the
excess,  if any,  of (x) (A) in the case of a  Nonqualified  Stock  Option,  the
greater  of (i) the  Fair  Market  Value,  on the  date  preceding  the  date of
surrender, of the Shares subject to the Option or portion thereof surrendered or
(ii) the  Adjusted  Fair  Market  Value of the  Shares  subject to the Option or
portion thereof surrendered or (B) in the case of an Incentive Stock Option, the
Fair Market Value,  on the date  preceding the date of surrender,  of the Shares
subject to the Option or portion  thereof  surrendered,  over (y) the  aggregate
purchase price for such Shares under the Option or portion thereof  surrendered;
provided,  however,  that in the case of an Option granted within six (6) months
prior to the Change in Control to any  Optionee  who may be subject to liability
under Section  16(b) of the Exchange  Act,  such  Optionee  shall be entitled to
surrender  for  cancellation  his or her Option during the sixty (60) day period
commencing  upon the  expiration of six (6) months from the date of grant of any
such Option.

8.       Adjustment Upon Changes in Capitalization.
         (a)  Subject to Section 9, in the event of a Change in  Capitalization,
the maximum number and class of Shares or other stock or securities with respect
to which  Options  may be  granted  under the Plan in the  aggregate  and to any
Optionee,  the number and class of Shares or other stock or securities which are
subject to  outstanding  Options  granted under the Plan, and the purchase price
therefor,  if applicable,  shall be appropriately and equitably  adjusted by the
Committee.

         (b) Any such  adjustment  in the  Shares or other  stock or  securities
subject to outstanding Incentive Stock Options (including any adjustments in the
purchase price) shall be made in such manner as not to constitute a modification
as  defined by Section  424(h)(3)  of the Code and only to the extent  otherwise
permitted by Sections 422 and 424 of the Code.

         (c) If, by reason of a Change in  Capitalization,  an Optionee shall be
entitled  to exercise an Option with  respect to new,  additional  or  different
shares of stock or securities,  such new,  additional or different  shares shall
thereupon  be subject to all of the  conditions  which  were  applicable  to the
Shares  subject  to the  Option,  as the case may be,  prior to such  Change  in
Capitalization.


9.       Effect of Certain Transactions.
         Subject  to  Section  7(e),  in the  event  of (1) the  liquidation  or
dissolution  of the Company or (2) a merger or  consolidation  of the Company (a
"Transaction"),  the Plan and the Options  issued  hereunder  shall  continue in
effect in accordance  with their  respective  terms and each  Optionee  shall be
entitled to receive in respect of each Share subject to any outstanding Options,
as the case may be, upon  exercise  of any  Option,  the same number and kind of
stock, securities,  cash, property, or other consideration that each holder of a
Share was entitled to receive in the  Transaction in respect of a Share.  In the
event that, after a Transaction,  there occurs any change of a type described in
Section  2(e) hereof with  respect to the shares of the  surviving  or resulting
corporation, then adjustments similar to, and subject to the same conditions as,
those in Section 8 hereof shall be made.


10.      Termination and Amendment of the Plan.
         (a) The Plan shall  terminate  on April 7,  2003,  and no Option may be
granted thereafter. The Board may sooner terminate or amend the Plan at any time
and from time to time;  provided,  however,  that to the extent  necessary under
Section  16(b) of the  Exchange  Act and the rules and  regulations  promulgated
thereunder  or other  applicable  law, no amendment  shall be  effective  unless
approved by the  stockholders  of the Company in accordance  with applicable law
and  regulations at an annual or special  meeting held within twelve (12) months
after the date of adoption of such amendment.

         (b)  Except  as  provided  in  Sections  8 and  9  hereof,  rights  and
obligations  under any Option granted before any amendment or termination of the
Plan  shall  not  be  adversely   altered  or  impaired  by  such  amendment  or
termination, except with the consent of the Optionee, nor shall any amendment or
termination  deprive  any  Optionee  of any  Shares  which he may have  acquired
through or as a result of the Plan.


11.      Non-Exclusivity of the Plan.
         The  adoption  of the  Plan by the  Board  shall  not be  construed  as
amending,  modifying or rescinding any previously approved incentive arrangement
or as  creating  any  limitations  on the power of the Board to adopt such other
incentive arrangements as it may deem desirable,  including, without limitation,
the  granting  of  stock  options  otherwise  than  under  the  Plan,  and  such
arrangements may be either applicable generally or only in specific cases.


12.      Limitation of Liability.
         As illustrative of the limitations of liability of the Company, but not
intended to be exhaustive thereof, nothing in the Plan shall be construed to:

     (a) give any person  any right to be  granted  an Option  other than at the
sole discretion of the Committee;

     (b) give any person any rights  whatsoever with respect to Shares except as
specifically provided in the Plan;

     (c) limit in any way the right of the Company to terminate  the  employment
of any person at any time; or

         (d) be  evidence  of  any  agreement  or  understanding,  expressed  or
implied,  that the  Company  will  employ any person at any  particular  rate of
compensation or for any particular period of time.


13.      Regulations and Other Approvals; Governing Law.
         (a) This Plan and the rights of all persons claiming hereunder shall be
construed and determined in accordance with the laws of the State of Delaware.

         (b) The  obligation  of the  Company  to sell or  deliver  Shares  with
respect to  Options  granted  under the Plan shall be subject to all  applicable
laws,  rules  and  regulations,  including  all  applicable  federal  and  state
securities  laws,  and the  obtaining  of all  such  approvals  by  governmental
agencies as may be deemed necessary or appropriate by the Committee.

         (c) (1) The Plan is  intended  to comply  with Rule  16b-3  promulgated
under the Exchange Act and the  Committee  shall  interpret and  administer  the
provisions of the Plan or any Agreement in a manner  consistent  therewith.  Any
provisions inconsistent with such Rule shall be inoperative and shall not affect
the validity of the Plan.

                  (2) The Director  Options  described in Section 5 are intended
to qualify as formula awards under Rule 16b-3 promulgated under the Exchange Act
(thereby preserving the disinterested status of Nonemployee  Directors receiving
such awards) and the Committee  shall interpret and administer the provisions of
the Plan or any  Agreement  in a manner  consistent  therewith.  Any  provisions
inconsistent with the foregoing intent shall be inoperative and shall not affect
the validity of the Plan.

                  (3)  Unless   otherwise   expressly  stated  in  the  relevant
Agreement,  each  Employee  Option  granted  under  the Plan is  intended  to be
performance-based compensation within the meaning of Section 162(m)(4)(C) of the
Code.

         (d) The Board may make such changes as may be necessary or  appropriate
to comply with the rules and  regulations  of any  government  authority,  or to
obtain for Eligible  Employees  granted Incentive Stock Options the tax benefits
under  the  applicable  provisions  of  the  Code  and  regulations  promulgated
thereunder.

         (e) Each Option is subject to the requirement  that, if at any time the
Committee  determines,  in its  discretion,  that the listing,  registration  or
qualification  of  Shares  issuable  pursuant  to the  Plan is  required  by any
securities  exchange  or under any  state or  federal  law,  or the  consent  or
approval of any  governmental  regulatory  body is  necessary  or desirable as a
condition of, or in connection  with,  the grant of an Option or the issuance of
Shares,  no Options shall be granted or payment made or Shares issued,  in whole
or in part, unless listing, registration, qualification, consent or approval has
been effected or obtained free of any conditions as acceptable to the Committee.

         (f) Notwithstanding  anything contained in the Plan to the contrary, in
the event that the  disposition of Shares  acquired  pursuant to the Plan is not
covered by a then current  registration  statement  under the  Securities Act of
1933, as amended (the  "Securities  Act"), and is not otherwise exempt from such
registration,  such Shares shall be  restricted  against  transfer to the extent
required by the Securities Act and Rule 144 or other regulations thereunder. The
Committee may require any individual receiving Shares pursuant to the Plan, as a
condition  precedent  to receipt of such Shares upon  exercise of an Option,  to
represent and warrant to the Company in writing that the Shares acquired by such
individual are acquired without a view to any distribution  thereof and will not
be sold or transferred other than pursuant to an effective  registration thereof
under said Act or pursuant to an exemption  applicable  under the Securities Act
or the rules and regulations promulgated thereunder. The certificates evidencing
any of such Shares  shall be  appropriately  amended to reflect  their status as
restricted securities as aforesaid.


14.      Miscellaneous.
         (a) Multiple Agreements. The terms of each Option may differ from other
Options  granted  under the Plan at the same time,  or at some other  time.  The
Committee  may also  grant  more than one  Option to a given  Eligible  Employee
during the term of the Plan,  either in addition to, or in substitution for, one
or more Options previously granted to that Eligible Employee.

         (b)  Withholding  of Taxes.  (1) The  Company  shall  have the right to
deduct from any  distribution  of cash to any  Optionee,  an amount equal to the
federal,  state and local income  taxes and other  amounts as may be required by
law to be withheld (the  "Withholding  Taxes") with respect to any Option. If an
Optionee is entitled to receive Shares upon exercise of an Option,  the Optionee
shall pay the Withholding Taxes to the Company prior to the issuance, or release
from escrow,  of such Shares.  In satisfaction  of the Withholding  Taxes to the
Company,  the Optionee may make a written election (the "Tax  Election"),  which
may be accepted or rejected in the discretion of the Committee, to have withheld
a portion  of the  Shares  issuable  to him or her upon  exercise  of the Option
having an aggregate Fair Market Value equal to the Withholding  Taxes,  provided
that in respect of an Optionee  who may be subject to  liability  under  Section
16(b) of the Exchange Act either (A) (i) the Optionee  makes the Tax Election at
least six (6) months after the date the Option was  granted,  (ii) the Option is
exercised  during the ten day period  beginning  on the third  business  day and
ending on the twelfth  business day following the release for publication of the
Company's  quarterly or annual  statements  of earnings (a "Window  Period") and
(iii) the Tax  Election is made during the Window  Period in which the Option is
exercised  or prior to such  Window  Period and  subsequent  to the  immediately
preceding  Window  Period or (B) (i) the Tax  Election  is made at least six (6)
months  prior to the date the Option is  exercised  and (ii) the Tax Election is
irrevocable  with  respect to the  exercise of all Options  which are  exercised
prior to the  expiration  of six (6) months  following an election to revoke the
Tax Election.  Notwithstanding the foregoing, the Committee may, by the adoption
of rules or otherwise,  (x) modify the  provisions in the preceding  sentence or
impose  such  other  restrictions  or  limitations  on Tax  Elections  as may be
necessary to ensure that the Tax  Elections  will be exempt  transactions  under
Section  16(b) of the Exchange  Act, and (y) permit Tax  Elections to be made at
such  other  times  and  subject  to  such  other  conditions  as the  Committee
determines  will  constitute  exempt  transactions  under  Section  16(b) of the
Exchange Act.

                  (2) If an Optionee makes a disposition,  within the meaning of
Section 424(c) of the Code and regulations promulgated thereunder,  of any Share
or Shares issued to such Optionee pursuant to the exercise of an Incentive Stock
Option  within the two-year  period  commencing on the day after the date of the
grant or within  the  one-year  period  commencing  on the day after the date of
transfer of such Share or Shares to the Optionee pursuant to such exercise,  the
Optionee  shall,  within ten (10) days of such  disposition,  notify the Company
thereof, by delivery of written notice to the Company at its principal executive
office, and immediately deliver to the Company the amount of Withholding Taxes.


15.      Effective Date.
         The  effective  date of the Amended and Restated Plan shall be the date
of its adoption by the Board,  subject  only to the approval by the  affirmative
votes of the holders of a majority of the securities of the Company present,  or
represented,  and  entitled  to vote at a meeting of  stockholders  duly held in
accordance  with the applicable laws of the State of Delaware within twelve (12)
months of such adoption.

         Notwithstanding  any provision  contained  herein to the contrary,  any
Option  outstanding  on the date the Board adopts the Amended and Restated  Plan
will be governed by the terms of the Plan as in effect immediately prior to such
adoption.