CLOROX CO /DE/
1993 DIRECTORS' STOCK OPTION PLAN, AS AMENDED
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>5
<FILENAME>ex10-2.htm
<DESCRIPTION>1993 DIRECTORS' STOCK OPTION PLAN, AS AMENDED
<TEXT>
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<title>THE CLOROX COMPANY</title>
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<p align="left"><b><u><font size="4" color="black" face=
"Arial">EXHIBIT 10-2</font></u></b></p>

<p><b><font size="4" color="black" face="Arial"></font></b></p>

<p><b><font size="4" color="black" face="Arial">THE&nbsp;
CLOROX&nbsp; COMPANY</font></b></p>

<p align="center"><b><font size="4" color="black" face=
"Arial">1993&nbsp; DIRECTORS'&nbsp; STOCK&nbsp; OPTION&nbsp;
PLAN</font></b></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p align="center"><b><font size="3" color="black" face=
"Arial">RESTATED AS OF SEPTEMBER 2, 1997 AND NOVEMBER 15,
1999</font></b></p>

<p align="center"><b><font size="3" color="black" face="Arial">TO
REFLECT TWO FOR ONE STOCK SPLITS</font></b></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><b><font size="3" color="black" face="Times New Roman">SECTION
1.&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
INTRODUCTION.</font></b></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Plan was adopted by the Board on July 20, 1993, subject to
approval by the Company's stockholders at the annual meeting of
stockholders on November 17, 1993.&nbsp; The purpose of the Plan is
to promote the long-term success of the Company and to create
incremental stockholder value by (a) encouraging the Independent
Directors to focus on critical long-range objectives, (b)
encouraging the attraction and retention of Independent Directors
with exceptional qualifications and (c) linking Independent
Directors directly to stockholder interests through increased stock
ownership.&nbsp; The Plan seeks to achieve this purpose by
providing for the grant of nonstatutory options to purchase Common
Shares.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Plan is intended to comply in all respects with Rule 16b-3 (or
its successor) under the Exchange Act and shall be construed
accordingly.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><b><font size="3" color="black" face="Times New Roman">SECTION
2.&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
DEFINITIONS.</font></b></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>"Board"</b> means the Company's Board of Directors, as
constituted from time to time.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>"Change in Control"</b> means the occurrence of any of the
following events:</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company
consolidates or merges with, or sells or otherwise transfers more
than 50% of its assets or earning power to, any Person in a
transaction or series of transactions which result in the holders
of the outstanding common stock of the Company immediately prior to
the first such transaction holding (either by such shares remaining
outstanding or by being converted into securities of the surviving
entity) less than a majority of the shares entitled to vote for the
election of directors of the surviving entity outstanding
immediately after such merger, consolidation, sale or transfer,
or</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any Person
becomes the beneficial owner of more than 30% of the outstanding
common shares (a "30% Beneficial Owner") and a majority of the
members of the Board of Directors of the Company are not Continuing
Directors.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For purposes
of this definition of Change in Control:</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a)&nbsp;
<b>"Beneficial Ownership"</b> shall be determined in accordance
with Rule 13-d-3 under the "Securities Exchange Act of 1934 (the
"1934 Act"), but shall not include ownership by any Subsidiary or
any employee benefit plan of the Company.</font></p>

<font size="3" color="black" face="Times New Roman"><br clear=
"all" />
</font>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=
"3" color="black" face="Times New Roman">b)&nbsp;&nbsp;
<b>"Continuing Director"</b> shall mean any member of the Board of
Directors of the Company who is not a 30% Beneficial Owner or a
representative of a 30% Beneficial Owner and who was either (i) a
member of the Board prior to the time that any Person becomes a 30%
Beneficial Owner or (ii) subsequently becomes a member of the
Board, if such the Board, if such Person's election to the Board is
recommended or approved by a majority of Continuing
Directors.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
c)&nbsp;&nbsp; <b>"Person"</b> shall mean any individual, firm,
partnership, corporation or other entity, and shall include any
successor of such entity and all Affiliates, Associates and
Subsidiaries (as those terms are defined in Rule 12b-2 under the
1934 Act) of such Person; <u>provided</u>, <u>however</u>, that the
term "Person" shall not include H C Investments, Inc., a U.S.
affiliate of Henkel KGaA, or any of Henkel&nbsp;KGaA's other
Subsidiaries.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>"Code"</b> means the Internal Revenue Code of 1986, as
amended.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>"Committee"</b> means the Employee Benefits and Management
Compensation Committee of the Board, as constituted from time to
time.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>"Common Share"</b> means one share of the common stock of the
Company.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>"Company"</b> means The Clorox Company, a Delaware
corporation.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>"Employee"</b> means an employee (within the meaning of Section
3401(c) of the Code and the regulations thereunder) of the Company
or of a Subsidiary of the Company.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>"Exchange Act"</b> means the Securities Exchange Act of 1934, as
amended.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>"Exercise Price"</b> means the amount for which one Common Share
may be purchased upon exercise of an Option, as specified in the
applicable Stock Option Agreement.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>"Fair
Market Value"</b> means the closing price of a Common Share on the
trading day immediately preceding the day in question, as stated in
the New York Stock Exchange composite transactions
report.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>"Independent Director"</b> means a member of the Board who is
not an Employee and was not an Employee who actively performed
duties at any time during the twelve months immediately preceding
the member's first election to the Board as an Independent
Director.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>"NSO"</b> means a stock option not described in Section 422 or
423 of the Code.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>"Option"</b> means an NSO granted under the Plan and entitling
the holder to purchase Common Shares.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>"Optionee"</b> means an individual who holds an
Option.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>"Plan"</b> means this 1993 Directors' Stock Option Plan, as it
may be amended from time to time.</font></p>

<font size="3" color="black" face="Times New Roman"><br clear=
"all" />
</font>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>"Retirement"</b> means termination of Service after (i)
attaining age 70 or (ii)&nbsp;serving as an Independent Director
for not less than five years.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>"Service"</b> means service as a member of the Board as an
Independent Director.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>"Stock
Option Agreement"</b> means the agreement between the Company and
an Optionee that contains the terms, conditions and restrictions
pertaining to his or her Option.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>"Subsidiary"</b> means any corporation, if the Company and/or
one or more other Subsidiaries own not less than 50 percent of the
total combined voting power of all classes of outstanding stock of
such corporation.&nbsp; A corporation that attains the status of a
Subsidiary on a date after the adoption of the Plan shall be
considered a Subsidiary commencing as of such date.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>"Total
and Permanent Disability"</b> means that the Optionee is unable to
engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be
expected to result in death or which has lasted, or can be expected
to last, for a continuous period of not less than 12
months.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><b><font size="3" color="black" face="Times New Roman">SECTION
3.&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ADMINISTRATION.</font></b></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Plan
Administrator.</b>&nbsp; The Plan shall be administered by the
Committee.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>Committee Responsibilities.</b>&nbsp; Subject to the provisions
of the Plan, the Committee shall have full authority and discretion
to take the following actions:</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To interpret
the Plan and to apply its provisions;</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To
adopt, amend or rescind rules, procedures and forms relating to the
Plan;</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; (iii)&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To authorize
any person to execute, on behalf of the Company, any instrument
required to carry out the purposes of the Plan; and</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; (iv)&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To take any
other actions deemed necessary or advisable for the administration
of the Plan.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All decisions, interpretations and other actions of the Committee
shall be final and binding on all Optionees and all other persons
deriving their rights from an Optionee.&nbsp; No member of the
Committee shall be liable for any action that he or she has taken
or has failed to take in good faith with respect to the Plan or any
Option.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<font size="3" color="black" face="Times New Roman"><br clear=
"all" />
</font>

<p><b><font size="3" color="black" face="Times New Roman">SECTION
4.&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; STOCK
SUBJECT TO
PLAN.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UPDATED
11-28-01</font></b></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Basic
Limitation.</b>&nbsp; Common Shares offered under the Plan shall be
treasury shares or authorized but unissued shares.&nbsp; The
aggregate number of Common Shares issued under the Plan shall not
exceed 400,000 Common Shares, subject to adjustment pursuant to
Section 7.&nbsp; The number of Common Shares that are subject to
Options at any time shall not exceed the number of Common Shares
that then remain available for issuance under the Plan.&nbsp; The
Company, during the term of the Plan, shall at all times reserve
and keep available sufficient Common Shares to satisfy the purposes
of the Plan.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>Additional Shares.</b>&nbsp; In the event that any outstanding
Option for any reason expires or is canceled or otherwise
terminated, the Common Shares allocable to the unexercised portion
of such Option shall again be available for the purposes of the
Plan.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><b><font size="3" color="black" face="Times New Roman">SECTION
5.&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TERMS AND
CONDITIONS OF OPTIONS.</font></b></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Stock
Option Agreement.</b>&nbsp; Each grant of an Option shall be
evidenced by a Stock Option Agreement between the Optionee and the
Company.&nbsp; Such Option shall be subject to all applicable terms
and conditions of the Plan and may be subject to any other terms
and conditions that are not inconsistent with the Plan and that the
Committee deems appropriate for inclusion in a Stock Option
Agreement.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>Initial Grants.</b>&nbsp; Each Independent Director who served
as a member of the Board on November 17, 1993, received an Option
covering 8,000 Common Shares on November 18, 1993.&nbsp;&nbsp; Each
Independent Director who first joins the Board after November 17,
1993, shall receive an Option covering 8,000 Common Shares on the
first business day after his or her initial election to the
Board.&nbsp; (The number of Common Shares included in an Option
shall be subject to adjustment under Section 7.)</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><b><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b>
<font color=
"black">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>Annual Grants.</b>&nbsp; On the first business day of fiscal
year 2002 and each subsequent fiscal year, each Independent
Director shall receive an Option covering 2,000 Common Shares
(subject to adjustment under Section 7), except that such Option
shall not be granted in the calendar year in which the same
Independent Director received an Initial Grant Option described in
Subsection (b) above.&nbsp; Annual grants shall cease effective as
of June 30, 2005.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>Exercise Price.</b>&nbsp; The Exercise Price under each Option
shall be equal to 100 percent of the Fair Market Value of the
Common Shares subject to such Option on the date when such Option
is granted.&nbsp; The entire Exercise Price of Common Shares issued
under the Plan shall be payable in cash when such Common Shares are
purchased, except as follows:</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment
may be made with Common Shares that have already been owned by the
Optionee for more than six months and that are surrendered to the
Company in good form for transfer or by foregoing the right to
receive Common Shares whose Fair Market Value equals the Exercise
Price.&nbsp; Such Common Shares shall be valued at their Fair
Market Value on the date when the new Common Shares are purchased
under the Plan.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment may
be made by the delivery (on a form prescribed by the Company) of an
irrevocable direction to a securities broker approved by the
Company to sell Common Shares and to deliver all or part of the
sales proceeds to the Company in payment of all or part of the
Exercise Price and any withholding taxes.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; (iii)&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment may
be made by the delivery (on a form prescribed by the Company) of an
irrevocable direction to pledge Common Shares to a securities
broker or lender approved by the Company as security for a loan and
to deliver all or part of the loan proceeds to the Company in
payment of all or part of the Exercise Price and any withholding
taxes.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>Vesting.</b>&nbsp; Subject to Subsection (j) below, each Option
shall become exercisable in two equal annual installments on each
of the first two anniversaries of the date of grant.&nbsp; In
addition, subject to Subsection (j) below, each Option shall become
exercisable in full in the event that:</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Optionee's Service terminates because of Retirement, death or Total
and Permanent Disability; or</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A Change in
Control occurs with respect to the Company.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Term
of Options.</b>&nbsp; Subject to Subsections (g) and (h) below,
each Option shall expire on the 10th anniversary of the date when
such Option was granted.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>Termination of Service (Except by Death).</b>&nbsp; If an
Optionee's Service terminates for any reason other than death, then
his or her Options shall expire on the earliest of the following
occasions:</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
expiration date determined pursuant to Subsection (f)
above;</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The date
three months after the termination of the Optionee's Service for
any reason other than Retirement or Total and Permanent
Disability.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Optionee may exercise all or part of his or her Options at any
time before the expiration of such Options under the preceding
sentence, but only to the extent that such Options had become
exercisable before his or her Service terminated or became
exercisable as a result of the termination.&nbsp; The balance of
such Options shall lapse when the Optionee's Service
terminates.&nbsp; In the event that the Optionee dies after the
termination of his or her Service but before the expiration of his
or her Options, all or part of such Options may be exercised at any
time within 12 months after the date of death by the executors or
administrators of the Optionee's estate or by any person who has
acquired such Options directly from him or her by bequest,
inheritance or beneficiary designation under the Plan, but only to
the extent that such Options had become exercisable before his or
her Service terminated or became exercisable as a result of the
termination.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<font size="3" color="black" face="Times New Roman"><br clear=
"all" />
</font>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font
size="3" color="black" face=
"Times New Roman">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>Death of Optionee.</b>&nbsp; If an Optionee dies while he or she
is in Service, then his or her Options shall expire on the earlier
of the following dates:</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
expiration date determined pursuant to Subsection (f) above;
or</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The date
12 months after his or her death.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All or part of the Optionee's Options may be exercised at any time
before the expiration of such Options under the preceding sentence
by the executors or administrators of his or her estate or by any
person who has acquired such Options directly from him or her by
bequest, inheritance or beneficiary designation under the
Plan.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>Nontransferability.</b>&nbsp; During an Optionee's lifetime, his
or her Options shall be exercisable only by him or her and shall be
nontransferable.&nbsp; In the event of an Optionee's death, his or
her Options shall not be transferable other than by bequest,
inheritance or beneficiary designation under the Plan.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>Stockholder Approval.</b>&nbsp; Subsection (e) above
notwithstanding, no Option shall be exercisable under any
circumstances unless and until the Company's stockholders have
approved the Plan.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><b><font size="3" color="black" face="Times New Roman">SECTION
6.&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
MISCELLANEOUS PROVISIONS.</font></b></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>No
Rights as a Stockholder.</b>&nbsp; An Optionee, or a transferee of
an Optionee, shall have no rights as a stockholder with respect to
any Common Shares covered by his or her Option until the date of
the issuance of a stock certificate for such Common Shares.&nbsp;
No adjustment shall be made except as provided in
Section&nbsp;7.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>Restrictions on Issuance of Shares.</b>&nbsp; Common Shares
shall not be issued under the Plan unless the issuance and delivery
of such Common Shares complies with (or is exempt from) all
applicable requirements of law, including (without limitation) the
Securities Act of 1933, as amended, the rules and regulations
promulgated thereunder, state securities laws and regulations, and
the regulations of any stock exchange on which the Company's
securities may then be listed.&nbsp; The Company may impose
restrictions upon the sale, pledge or other transfer of such Common
Shares (including the placement of appropriate legends on stock
certificates) if, in the judgment of the Company and its counsel,
such restrictions are necessary or desirable in order to achieve
compliance with the provisions of the Securities Act of 1933, as
amended, the securities laws of any state or any other
law.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>Withholding Taxes.</b>&nbsp; The Company's obligation to deliver
Common Shares upon the exercise of an Option shall be subject to
any applicable tax withholding requirements.&nbsp; To the extent
permissible under applicable tax, securities and other laws, the
Company may, in its sole discretion, permit the Optionee to satisfy
a tax withholding requirement by directing the Company to apply
Common Shares to which the Optionee is entitled as a
result</font></p>

<p><font size="3" color="black" face="Times New Roman">of the
exercise of an Option to satisfy such requirement.</font></p>

<font size="3" color="black" face="Times New Roman"><br clear=
"all" />
</font>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font
size="3" color="black" face=
"Times New Roman">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>No Retention Rights.</b>&nbsp; No provision of the Plan, nor any
Option granted under the Plan, shall be construed as giving any
person the right to be elected as, or to be nominated for election
as, an Independent Director or to remain an Independent
Director.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><b><font size="3" color="black" face="Times New Roman">SECTION
7.&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ADJUSTMENT
OF SHARES.</font></b></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>General.</b>&nbsp; In the event of any change in the Common
Shares that occurs after the Plan becomes effective by reason of a
stock dividend or split, recapitalization, merger, consolidation,
combination, exchange of shares, or other similar corporate change,
the aggregate number of shares subject to each outstanding Option,
and its stated Option price, shall be adjusted appropriately by the
Committee, whose determination shall be conclusive.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>Reorganizations.</b>&nbsp; In the event that the Company is a
party to a merger or other reorganization, outstanding Options
shall be subject to the agreement of merger or
reorganization.&nbsp; Such agreement may provide, without
limitation, for the assumption of outstanding Options by the
surviving corporation or its parent, for their continuation by the
Company (if the Company is a surviving corporation), for
accelerated vesting or for settlement in cash.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>Reservation of Rights.</b>&nbsp; Except as provided in this
Section 7, an Optionee shall have no rights by reason of any
subdivision or consolidation of shares of stock of any class, the
payment of any stock dividend or any other increase or decrease in
the number of shares of stock of any class.&nbsp; Any issue by the
Company of shares of stock of any class, or securities convertible
into shares of stock of any class, shall not affect, and no
adjustment by reason thereof shall be made with respect to, the
number or Exercise Price of Common Shares subject to an
Option.&nbsp; The grant of an Option pursuant to the 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, to merge or consolidate or to
dissolve, liquidate, sell or transfer all or any part of its
business or assets.</font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><b><font size="3" color="black" face="Times New Roman">SECTION
8.&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DURATION AND
AMENDMENTS.</font></b></p>

<p><font size="3" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Term
of the Plan.</b>&nbsp; The Plan, as set forth herein, shall become
effective on November 17, 1993 if approved by the Company's
stockholders.&nbsp; The Plan shall remain in effect until it is
terminated under Subsection (b) below.</font></p>

<p><font size="1" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Right
to Amend or Terminate the Plan.</b>&nbsp; The Board may amend,
suspend or terminate the Plan at any time and for any reason,
except that the provisions of the Plan relating to the amount,
price and timing of Option grants shall not be amended more than
once in any six-month period.&nbsp; Any amendment of the Plan shall
be subject to the approval of the Company's stockholders to the
extent required by applicable laws, regulations or rules
(including, without limitation, Rule 16b-3 under the Exchange
Act).</font></p>

<p><font size="1" color="black" face="Times New Roman"></font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Effect
of Amendment or Termination.</b>&nbsp; No Common Shares shall be
issued or sold under the Plan after the termination thereof, except
upon exercise of an Option granted prior to such termination.&nbsp;
The termination of the Plan, or any amendment thereof, shall not
affect any Option previously granted under the Plan.</font></p>
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