CHURCHILL DOWNS INC
4TH  AMENDED AND RESTATED 1997 STOCK OPTION PLAN
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                 CHURCHILL DOWNS INCORPORATED<BR>
    <U>FOURTH AMENDED AND RESTATED 1997 STOCK OPTION PLAN</U>
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                1.</FONT></TD>
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        &nbsp;</FONT></TD>
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                <U>Purpose</U>. &nbsp;&nbsp;&nbsp;The purpose of the Churchill Downs
                Incorporated 1997 Stock Option Plan is to promote
                interests by affording an incentive to key employees to remain
                in the employ of Company and its Subsidiaries and to use their
                best efforts on its behalf; and further to aid Company and its
                Subsidiaries in attracting, maintaining, and developing capable
                personnel of a  caliber required to ensure the continued success
                of Company and its Subsidiaries by means of an offer to such
                persons of an opportunity to acquire or increase their proprietary
                interest in Company through the granting of incentive stock
                options and nonstatutory stock options to purchase Company&#146;
                s stock pursuant to the terms of the Plan and related stock
                appreciation rights. </FONT></TD>
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                2.</FONT></TD>
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        &nbsp;</FONT></TD>
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                <U>Definitions</U>.</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
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                A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Board</U>" means Company's
                 Board of Directors.</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                 B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Change in Control</U>" means:
                (a) the sale, lease, exchange or other transfer of all or
                substantially all of the assets of Company (in one transaction or
                in a series of related transactions) to a person that is not
                controlled by Company, (b) the approval by Company shareholders
                of any plan or proposal for the liquidation or dissolution of
                Company, or (c) a change in control of Company of a nature that
                would be required to be reported (assuming such event has not been
                "previously reported") in response to Item 1(a) of the Current
                Report on Form 8-K, as in effect on the effective date of the Plan,
                 pursuant to Section 13 or 15(d) of the Securities Exchange Act
                of 1934, whether or not Company is then subject to such reporting
                 requirement; provided, however, that, without limitation, such
                 a change in control shall be deemed to have occurred at such
                time as (i) any Person becomes after the date this Plan is approved
                 or ratified by Company's shareholders the "beneficial owner"
                (as defined in Rule 13d-3 under the Securities Exchange Act of 1934),
                 directly or indirectly, of 30% or more of the combined voting
                power of Company's outstanding securities ordinarily having the
                right to vote at elections of directors, or (ii) individuals who
                 constitute the board of directors of Company on the date this
                Plan is approved or ratified by Company's shareholders cease for
                 any reason to constitute at least a majority thereof, provided
                 that any person becoming a director subsequent to such date whose
                election, or nomination for election by Company's shareholders,
                was approved by a vote of at least a majority of the directors
                comprising or deemed pursuant hereto to comprise the Board on the
                date this Plan is approved or ratified by Company's shareholders
                 (either by a specific vote or by approval of the proxy statement
                 of Company in which such person is named as a nominee for director)
                shall be, for purposes of this clause (ii) considered as though such
                person were a member of the Board on the date this Plan is approved
                 or ratified by Company's shareholders.</FONT></TD>

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                40</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
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                C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Code</U>" means the Internal
                Revenue Code of 1986, as amended.</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
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                D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Committee</U>" means the committee
                appointed by the Board to administer the Plan pursuant to Section
                4.</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Common Stock</U>" means Company's
                common stock, no par value, or the common stock or securities of
                 a Successor that have been substituted therefor pursuant to Section
                11.</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Company</U>" means Churchill Downs
                 Incorporated, a Kentucky corporation, with its principal place of
                 business at 700 Central Avenue, Louisville, Kentucky  40208.</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                G.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Disability</U>" means, as defined
                 by and to be construed in accordance with Code Section 22(e)(3),
                 any medically determinable physical or mental impairment that can
                 be expected to result in death or that has lasted or can be
                 expected to last for a continuous period of not less than twelve
                 (12) months, and that renders Optionee unable to engage in any
                 substantial gainful activity.  An Optionee shall not be considered to
                have a Disability unless Optionee furnishes proof of the existence
                 thereof in such form and manner, and at such   time, as the
                Committee may require.</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                H.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>ISO</U>" means an option to
                purchase Common Stock that at the time the option is granted
                qualifies as an incentive stock option within the meaning of Code
                Section 422.</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>NSO</U>" means a nonstatutory
                 stock option to purchase Common Stock that at the time the
                option is granted does not qualify as an ISO.</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                J.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Option Price</U>" means the
                 price to be paid for Common Stock upon the exercise of an
                option, in accordance with Section 6.E.</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                K.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Optionee</U>" means a key
                employee to whom an option has been granted under the Plan.</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                L.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Optionee's Representative</U>"
                 means the personal representative of Optionee's estate, and after
                 final settlement of Optionee's estate, the successor or successors
                entitled thereto by law.</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                M.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Plan</U>" means the Churchill
                 Downs Incorporated 1997 Stock Option Plan as set forth herein,
                 and as amended from time to time.</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
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                N.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>SAR</U>" means a stock
                appreciation right described in Section 7.</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                O.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Subsidiary</U>" means any
                corporation that at the time an option is granted under the
                Plan qualifies as a subsidiary of Company as defined by Code
                Section 424(f).</FONT></TD>
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                41</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                P.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Successor</U>" means the entity
                surviving a merger or consolidation with Company, or the entity
                that acquires all or a substantial portion of Company's assets or
                 outstanding capital stock (whether by merger, purchase or
                 otherwise).</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Q.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Ten Percent Shareholder</U>"
                means an employee who, at the time an option is granted, owns stock
                 possessing more than ten percent (10%) of the total combined voting
                 power of all classes of stock of Company or Subsidiary employing
                 Optionee or of its parent (within the meaning of Code Section
                424(e)) or Subsidiary corporation.</FONT></TD>
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        &nbsp;</FONT></TD>
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        3.</FONT></TD>
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                <U> Shares Subject to Plan</U>.</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
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                A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Authorized Unissued Shares</U>.
                Subject to the provisions of Section 11, shares to be delivered
                upon exercise of options granted under the Plan shall be made
                available, at the discretion of the Board, from the authorized
                 unissued shares of Common Stock.</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Aggregate Number of Shares</U>.
                Subject to adjustments and substitutions made pursuant to Section 11,
                the aggregate number of shares that may be issued upon exercise of all
                options that may be granted under the Plan shall not exceed one million
                two hundred thousand (1,200,000) of Company's authorized shares of
                Common Stock.</FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
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                C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Shares Subject to Expired Options</U>.
                If an option is canceled, expires or terminates for any reason
                without having been exercised in full, the shares of Common Stock
                subject to, but not delivered under, such option shall become
                available for any lawful corporate purpose, including for transfer
                pursuant to other options granted to the same key employee or
                other key employees without decreasing the aggregate number of
                shares of Common Stock that may be granted under the Plan.</FONT></TD>
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        4.</FONT></TD>
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                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Plan Administration</U>.
                The Plan shall be administered by a Board committee consisting
                of not fewer than two (2) directors who are not officers or employees
                of Company or a parent or subsidiary company and who receive no
                compensation from Company in any capacity other than as a director
                (except for amounts for which disclosure is not required under
                federal securities law). The Committee shall have full power and
                authority to construe, interpret, and administer the Plan and may
                from time to time adopt such rules and regulations for carrying out
                the Plan as it deems proper and in Company&#146;s best interests.
                Subject to the terms, provisions and conditions of the Plan, the
                 Committee shall have exclusive jurisdiction: [i] to determine
                the key employees to whom awards shall be granted; [ii] to
                determine the times at which awards shall be granted; [iii] to
                determine the form, amount, and manner of exercise of awards;
                [iv] to grant any combination of ISOs, NSOs and SARs; [v] to
                determine the limitations, restrictions and conditions applicable
                to awards; [vi] to fix such other provisions of the option agreement
                as it may deem necessary or desirable consistent with the terms
                of the Plan; and [vii] to determine all other questions relating
                to the administration of the Plan. In making such determinations,
                the Committee may take into account the nature of the services
                performed by such employees, their present and potential contributions
                to the success of Company or a Subsidiary and such other factors
                as the Committee in its discretion shall deem relevant. The
                interpretation of any provision of the Plan by the Committee shall
                be final, conclusive, and binding upon all persons and the officers
                of Company shall place into effect and shall cause Company to
                perform its obligations under the Plan in accordance with the
                determinations of the Committee in administering the Plan.</FONT></TD>
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                42</FONT></TD>
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        &nbsp;</FONT></TD>
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        5.</FONT></TD>
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                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Eligibility</U>. Key employees
                of Company and its Subsidiaries shall be eligible to receive options
                under the Plan. Key employees to whom options may be granted under
                the Plan will be those selected by the Committee from time to time
                who, in the sole discretion of the Committee, have contributed in
                the past or who may be expected to contribute materially in the
                future to the successful performance of Company and its
                Subsidiaries. </FONT></TD>
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        6.</FONT></TD>
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                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Terms and Conditions of Options</U>.
                Each option granted under the Plan shall be evidenced by an option
                agreement signed by Optionee and by a member of the Committee on
                behalf of Company. An option agreement shall constitute a binding
                contract between Company and Optionee, and every Optionee, upon
                acceptance of such option agreement, shall be bound by the terms
                and restrictions of the Plan and of the option agreement. Such
                agreement shall be subject to the following express terms and
                conditions and to such other terms and conditions that are not
                inconsistent with the Plan as the Committee may deem appropriate. </FONT></TD>
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        &nbsp;</FONT></TD>
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        &nbsp;</FONT></TD>
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                A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>$100,000 ISO Limitation</U>.
                The aggregate fair market value (determined as of the date an option
                is granted) of the Common Stock for which ISOs will first become
                exercisable by an Optionee in any calendar year under all ISO plans
                of Optionee's employer corporation and its parent (within the meaning of Code
                Section 424(e)) or subsidiary (within the meaning of Code Section
                424(f)) corporation shall not exceed $100,000.  Options in excess
                of this limitation shall constitute NSOs. </FONT></TD>
</TR>

</TABLE>


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        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Option Period</U>. Each option
                agreement shall specify the period during which the option is
                exercisable.  The Committee may extend the period; provided, however,
                that the period may not be extended without Optionee's consent if
                the extension would disqualify the option as an ISO.  In no case
                shall such period, including extensions, exceed ten (10) years
                from the date of grant, provided, however, that in the case of an ISO
                granted to a Ten Percent Stockholder, such period, including
                extensions, shall not exceed five (5) years from the date of grant.</FONT></TD>
</TR>

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        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Option Vesting</U>. No part
                of any option may be exercised until Optionee has been employed
                by Company or a Subsidiary for such period, which shall be no less
                than one (1) year, after the date on which the option is granted
                as the Committee may specify in the option agreement.  The option
                agreement may provide for exercisability in installments.</FONT></TD>
</TR>

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        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Acceleration of Option Vesting</U>.
                The Committee may, in its discretion, provide that the exercise
                dates of outstanding options shall accelerate and become exercisable
                on or after the date of a Change in Control or termination of
                Optionee's employment due to death and/or Disability and, in addition,
                on such terms and conditions deemed appropriate by the Committee
                and set forth in the Option Agreement.</FONT></TD>
</TR>

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                43</FONT></TD>
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        <TD COLSPAN=3 ALIGN="center"><HR SIZE=5 NOSHADE></TD>
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        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Option Price</U>.
                The Option Price per share of Common Stock shall be determined by
                the Committee at the time an option is granted.  The Option Price
                for ISOs shall be not less than fair market value, or in the case
                of an ISO granted to a Ten Percent Shareholder one hundred ten percent
                (110%) of the fair market value, at date of grant.  The fair market
                value of Common Stock shall be the closing high bid quotation for the
                Common Stock in the over-the-counter market, as reported by the
                National Association of Securities Dealers Automated Quotation
                System, on the business day immediately preceding the date of grant.
                The Option Price shall be subject to adjustments in accordance with
                the provisions of Section 11.</FONT></TD>
</TR>

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        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Option Expiration</U>.
                An option shall expire, and cease to be exercisable, at the earliest
                of the following times:</FONT></TD>
</TR>

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        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                ten (10) years after the date of grant; or</FONT></TD>
</TR>

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<TR VALIGN=top>
        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                in the case of an ISO granted to a Ten Percent Shareholder, five
                (5) years after the date of grant; or</FONT></TD>
</TR>

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<TR VALIGN=top>
        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                in the case of both an ISO and NSO, unless provided otherwise in
                the option agreement solely with respect to an NSO, five (5) years
                after termination of employment with Company or a Subsidiary
                because of Optionee's retirement in accordance with the terms of
                Company's tax-qualified retirement plans or with the consent of
                the Committee; or</FONT></TD>
</TR>
</TABLE>

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        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                two (2) years after termination of employment with Company or a
                Subsidiary because of Optionee's death or Disability; or</FONT></TD>
</TR>

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        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                the earlier of: [i] date of Optionee's termination of employment
                 with Company or a Subsidiary for any reason other than death,
                Disability or retirement; or [ii] the date on which written notice
                of such employment termination is delivered by Company to Optionee;
                or</FONT></TD>
</TR>

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        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                any earlier time set by the grant as provided in the option
                agreement.</FONT></TD>
</TR>

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        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                G.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exercise
                By Optionee's Estate</U>. &nbsp;
                Upon Optionee's death, options may be exercised, to the extent
                exercisable by Optionee on the date of Optionee's death, by Optionee's
                Representative at any time before expiration of said options.</FONT></TD>
</TR>

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                44</FONT></TD>
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        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                H.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Leaves of Absence</U>.
                The Committee may, in its discretion, treat all or any portion of
                a period during which an Optionee is on military or an approved
                leave of absence as a period of employment with Company or Subsidiary
                for purposes of accrual of rights under the Plan.  Notwithstanding the
                foregoing, in the case of an ISO, if the leave exceeds ninety (90)
                days and reemployment is not guaranteed by contract or statute,
                Optionee's employment shall be deemed to have terminated on the
                91st day of the leave.</FONT></TD>
</TR>

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        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Payment
                of Option Price</U>.
                Each option shall provide that the Option Price shall be paid to
                Company at the time of exercise either in cash or in such other
                consideration as the Committee deems appropriate, including, but
                not limited to, Common Stock already owned by Optionee having a
                total fair market value, as determined by the Committee, equal to
                the Option Price, or a combination of cash and Common Stock
                having a total fair market value, as determined by the Committee,
                equal to the Option Price.</FONT></TD>
</TR>

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        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                J.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Manner of Exercise</U>.
                To exercise an option, Optionee shall deliver to Company, or to a
                 broker-dealer in the Common Stock with the original copy to Company,
                the following:  [i] seven (7) days' prior written notice specifying
                the number of shares as to which the option is being exercised and,
                if determined by counsel for Company to be necessary, representing
                that such shares are being acquired for investment purposes only
                and not for purpose of resale or distribution; and [ii] payment
                by Optionee, or the broker-dealer, for such shares in cash, or
                if the Committee in its discretion agrees to so accept, by delivery
                to Company of other Common Stock owned by Optionee, or in some
                combination of cash and such Common Stock acceptable to the Committee.
                At the expiration of the seven (7) day notice period, and provided
                that all conditions precedent contained in the Plan are satisfied,
                Company shall, without transfer or issuance tax or other incidental
                expenses to Optionee, deliver to Optionee, at the offices of
                Company, a certificate or certificates for the Common Stock.
                If Optionee fails to accept delivery of the Common Stock, Optionee's
                right to exercise the applicable portion of the option shall terminate.
                If payment of the Option Price is made in Common Stock, the value
                of the Common Stock used form payment of the Option Price shall
                be the fair market value of the Common Stock, determined in accordance
                with Section 6.E, on the business day preceding the day written
                notice of exercise is delivered to Company.  Options may be exercised
                in whole or in part at such times as the Committee may prescribe
                in the applicable option agreement.</FONT></TD>
</TR>
</TABLE>


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        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                K.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Cancellation of SARs</U>.
                The exercise of an option shall cancel a proportionate number, if
                any, of SARs included in such option.</FONT></TD>
</TR>

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<TR VALIGN=top>
        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                L.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exercises Causing Loss of
                Compensation Deduction</U>. No part of an option may be exercised
                to the extent the exercise would cause Optionee to have compensation
                from Company and its affiliated companies for any year in excess
                of $1 million and that is nondeductible by Company and its affiliated
                companies pursuant to Code Section 162(m) and the regulations
                issued thereunder.  Any option not exercisable because of this
                limitation shall continue to be exercisable in any subsequent year
                in which the exercise would not cause the loss of Company's or its
                affiliated companies' compensation tax deduction, provided such
                exercise occurs before the option expires, and otherwise complies
                with the terms and conditions of the Plan and option agreement.</FONT></TD>
</TR>

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        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                M.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>ISOs</U>. Each option agreement
                that provides for the grant of an ISO shall contain provisions
                deemed necessary or desirable by the Committee to qualify such
                option as an ISO.</FONT></TD>
</TR>

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                45</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        7.</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <U>Stock Appreciation
         Rights</U></FONT></TD>
</TR>

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<TR VALIGN=top>
        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Form of Award</U>.  The Committee
                may include an SAR in any ISO or NSO granted under the Plan,
                either at the time of grant or thereafter while the option is
                outstanding; provided that no SAR may be awarded with respect to
                an outstanding ISO without the Optionee's consent to the extent
                the award would disqualify the option as an ISO.  SARs shall be
                subject to such terms and conditions not inconsistent with the
                other provisions of the Plan as the Committee shall determine.</FONT></TD>
</TR>

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<TR VALIGN=top>
        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exercise of SAR/Cancellation
                of Option</U>.  An SAR shall entitle the Optionee to surrender to
                Company for cancellation the unexercised option, or portion thereof,
                to which it is related, and to receive from Company in exchange
                herefor, at the discretion of the Committee, either: [i] a cash
                payment equal to the excess of the fair market value of the Common
                Stock subject to the option or portion thereof so surrendered over
                the aggregate Option Price for the shares; or [ii] delivery to
                Optionee of Common Stock with a fair market value equal to such
                excess, or [iii] a combination of cash and Common Stock with a
                combined value equal to such excess.  The value of the Common
                Stock shall be determined by the Committee in accordance with
                Section 6.E on the day immediately preceding the day written notice
                of exercise of the SAR is delivered to Company.  The exercise
                procedures provided by Section 6.J shall apply to the exercise of
                an SAR to the extent applicable.</FONT></TD>
</TR>
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        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Limitations</U>. An SAR shall
                be exercisable only to the extent the option to which is relates
                is exercisable and shall be exercisable only for such period as
                the Committee may provide in the option agreement (which period
                may expire before, but not later than, the expiration date of the
                option). Notwithstanding the preceding sentence, an SAR is
                exercisable only when the fair market value of a share of Common
                Stock exceeds the Option Price for the share.</FONT></TD>
</TR>

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<TR VALIGN=top>
        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        8.</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Investment Representation</U>.
        Each option agreement may provide that, upon demand by the Committee for
         such a representation, Optionee or Optionee&#146;s Representative shall
        deliver to the Committee at the time of exercise a written representation
        that the shares to be acquired upon exercise of an option or SAR are to
        be acquired for investment and not for resale or distribution. Upon such
        demand, delivery of such representation before delivery of Common Stock shall be
        a condition precedent to the right of Optionee or Optionee&#146;s Representative
        to purchase Common Stock. </FONT></TD>
</TR>

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<TR VALIGN=top>
        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        9.</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Tax Withholding</U>.
                Company shall have the right to: [i] withhold from any payment
                due to Optionee or Optionee&#146;s Representative; or [ii] require
                Optionee or Optionee&#146;s Representative to remit to Company;
                or [iii] retain Common Stock otherwise deliverable to Optionee or
                Optionee&#146;s Representative, in an amount sufficient to satisfy
                applicable tax withholding requirements resulting from the grant
                or exercise an option or SAR or disqualifying disposition of
                Common Stock acquired pursuant to the Plan. </FONT></TD>
</TR>
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                46</FONT></TD>
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        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        10.</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance
                With Other Laws and Regulations</U>.  The Plan, the grant and
                exercise of options and SARs and the obligation of Company to sell
                and deliver shares under such options and SARs, shall be subject
                to all applicable federal and state laws, rules and regulations
                and to such approvals by any government or regulatory agency as
                may be required. Company shall not be required to issue or deliver
                certificates for shares of Common Stock before [i] the listing of such
                shares on any stock exchange or over-the-counter market, such as
                NASDAQ, on which the Common Stock may then be listed or traded,
                and [ii] the completion of any registration or qualification of
                any governmental body which Company shall, in its sole discretion,
                determines to be necessary or advisable. </FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        11.</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Capital
                Adjustments and Mergers and Consolidations</U>.</FONT></TD>
</TR>

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        <TD WIDTH=8% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Capital Adjustments</U>. In
                the event of a stock dividend, stock split, reorganization, merger,
                consolidation, or a combination or exchange of shares, the number
                of shares of Common Stock subject to the Plan and the number of
                shares under an option or SAR shall be automatically adjusted to
                take into account such capital adjustment.  The price of any share
                under an option or SAR shall be adjusted so that there will be
                no change in the aggregate purchase price payable upon exercise
                of such option or SAR.</FONT></TD>
</TR>

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        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Mergers and Consolidations</U>.
                In the event Company merges or
                consolidates with another entity, or all or a substantial portion
                of Company's assets or outstanding capital stock are acquired
                (whether by merger, purchase or otherwise) by a Successor, the
                kind of shares of Common Stock that shall be subject to the Plan
                 and to each outstanding option and SAR shall automatically be
                converted into and replaced by shares of common stock, or such
                other class of securities having rights and preferences no less
                favorable than Company's Common Stock, of the Successor, and the
                number of shares subject to the option and SAR and the purchase
                price per share upon exercise of the option or SAR shall be
                correspondingly adjusted, so that each Optionee shall have the
                right to purchase [a] that number of shares of common stock of the
                Successor that have a value equal, as of the date of the merger,
                conversion or acquisition, to the value, as of the date of the
                merger, conversion or acquisition, of the shares of Common Stock
                of Company theretofore subject to Optionee's option and SAR, [b]
                for a purchase price per share that, when multiplied by the number
                of shares of common stock of the Successor subject to the option
                and SAR, shall equal the aggregate exercise price at which Optionee
                could have acquired all of the shares of Common Stock of Company
                theretofore optioned to Optionee.  Conversion of an ISO shall be
                done in a manner to comply with Code Section 424 and the regulations
                thereunder so the conversion does not disqualify the option as
                an ISO.</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        &nbsp;</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Effect on Company's Rights</U>.
                The granting of an option or SAR pursuant to the Plan shall not
                affect in any way the right and power of Company to make adjustments,
                reorganizations, reclassifications, or changes of its capital or
                business structure or to merge, consolidate, dissolve, liquidate,
                sell or transfer all or any part of its business or assets.</FONT></TD>
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                47</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        12.</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Transferability</U>.
                Options and SAR granted under the Plan may not be transferred by
                Optionee other than by will or the laws of descent and distribution
                and during the lifetime of Optionee, may be exercised only by the
                Optionee. Any attempted assignment, transfer, pledge, hypothecation
                or other disposition of an option or SAR, or levy or attachment
                or similar process not specifically permitted herein, shall be null
                and void and without effect.</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        13.</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Rights as Shareholder</U>.
                No Optionee or Optionee's Representative shall have any rights as
                a shareholder with respect to Common Stock subject to an option or
                SAR before the date of transfer to the Optionee of a certificate
                for such shares.</FONT></TD>
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        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        14.</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                <U>No Rights to Continued Employment</U>.
                Neither the Plan nor any award under the Plan shall confer upon
                any Optionee any right with respect to continuance of
                employment by Company or Subsidiary nor interfere with the right
                of Company or Subsidiary to terminate the Optionee&#146;s employment. </FONT></TD>

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        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        15.</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                <U>Amendment, Suspension, or Termination</U>.
                The Board may amend, suspend or terminate the Plan at any time
                and in any respect that it deems to be in Company&#146;s best
                interests, except that, without approval by shareholders of
                Company holding not less than a majority of the votes represented
                and entitled to be voted at a duly held meeting of Company&#146;s
                shareholders, no amendment shall be made that would: [i] change
                the aggregate number of shares of Common Stock which may be
                delivered under the Plan, except as provided in Section 11;
                or [ii] change the employees or class of employees eligible to
                receive ISOs; or [iii] require shareholder approval under federal
                or state securities laws. </FONT></TD>

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        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        16.</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                <U>Effective Date, Term and Approval</U>.
                The effective date of the Plan is November 20, 1997 (the date of
                Board adoption of the Plan), subject to approval by stockholders
                of Company holding not less than a majority of the shares
                present and voting at its 1998 annual meeting on June 18, 1998.
                The Plan shall terminate ten (10) years after the effective date
                of the Plan and no options may be granted under the Plan after
                such time, but options granted prior thereto may be exercised in
                accordance with their terms. </FONT></TD>

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        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        17.</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                <U>Severability</U>.  The invalidity or unenforceability of any
                provision of the Plan or any option or SAR granted pursuant to
                the Plan shall not affect the validity and enforceability of the
                remaining provisions of the Plan and the options and SARs granted
                hereunder. The invalid or unenforceable provision shall be stricken
                to the extent necessary to preserve the validity and enforceability
                of the Plan and the options SARs granted hereunder. </FONT></TD>

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        &nbsp;</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        18.</FONT></TD>
        <TD WIDTH=87% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                <U>Governing Law</U>.  The Plan shall be governed by the laws of
                 the Commonwealth of Kentucky.</FONT></TD>
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                48</FONT></TD>
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