DELTA WOODSIDE INDUSTRIES, INC.
2000 STOCK OPTION PLAN
EFFECTIVE AS OF AUGUST 24, 2000
<PAGE>
DELTA WOODSIDE INDUSTRIES, INC.
2000 STOCK OPTION PLAN
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1. PURPOSE.
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The purpose of the Delta Woodside Industries, Inc. 2000 Stock Option Plan
(the "Plan") is to promote the growth and profitability of Delta Woodside
Industries, Inc. (the "Company") and its subsidiaries from time to time
("Subsidiaries") by increasing the personal participation of key and middle
level executives in the continued growth and financial success of the Company
and the Subsidiaries, by enabling the Company and the Subsidiaries to attract
and retain executives of outstanding competence and by providing such executives
with an equity opportunity in the Company. This purpose will be achieved through
the grant of options ("Options") to purchase shares of the common stock of the
Company ("Shares").
2. ADMINISTRATION.
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The Plan shall be administered by the Company's Board of Directors (the
"Board"); provided, however, that in its discretion, the Board may delegate its
authority under the Plan to a committee of the Board (the "Committee") composed
solely of two or more "Non-Employee Directors" ( as defined in Rule 16b-3
promulgated under the Securities Exchange Act of 1934, as amended, or any
applicable successor rule or regulation (the "Exchange Act")).
The Board (or Committee, as applicable) shall have complete and final
authority to: (i) interpret all terms and provisions of the Plan; (ii) select
from the group of key and middle level executives eligible to participate in the
Plan the executives to whom Options will be granted; (iii) subject to the terms
of the Plan, establish the terms and conditions of each Option, including
without limitation the number of Shares subject to the Option, the term of the
Option, and any schedule for or conditions of the exercise of the Option; (iv)
prescribe the form of instrument(s) evidencing Options granted under the Plan;
(v) determine the time or times at which Options will be granted; (vi) make
special grants of Options as the Board (or Committee, as applicable) may
determine to be appropriate; (vii) determine the method of exercise of Options
granted under the Plan; (viii) adopt, amend and rescind general and special
rules for the Plan's administration; and (ix) make all other determinations and
take all other actions necessary or advisable for the administration of the
Plan.
Unless the bylaws or a resolution of the Board provides otherwise, any
action that the Board (or Committee, as applicable) is authorized to take may be
taken without a meeting if all the member of the Board (or Committee, as
applicable) sign a written document authorizing such action.
The Board (or Committee, as applicable) may designate selected Board
members or certain employees of the Company to assist the Board (or Committee,
as applicable) in the administration of the Plan and may grant authority to such
persons to execute documents, including Options, on behalf of the Board (or
Committee, as applicable).
No member of the Board shall be liable for any action taken or
determination made in good faith in connection with the Plan.
<PAGE>
3. ELIGIBILITY AND FACTORS TO BE CONSIDERED IN GRANTING OPTIONS.
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Key or middle level executives, whether or not officers or members of the
Board, of the Company and its Subsidiaries who have the greatest impact on the
Company's long-term performance shall be eligible to receive Options under the
Plan. In determining the key and middle level executives to which Options will
be granted and the number of shares subject to each Option, the Board (or
Committee, as applicable) shall take into account the level and responsibility
of the executive's position, the executive's performance, the assessed potential
of the executive and such other factors as the Board (or Committee, as
applicable) may deem relevant to the accomplishment of the purposes of the Plan.
Options may be granted under the Plan only for reasons connected with an
executive's employment with the Company or a Subsidiary.
Directors of the Company or any Subsidiary who are not also employees of
the Company or any of its Subsidiaries are not eligible to participate in the
Plan.
4. SHARES SUBJECT TO THE PLAN.
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Subject to the provisions of Section 14, the aggregate number of Shares
with respect to which Options may be granted under the Plan shall not exceed
1,667,000 Shares. If an Option expires, terminates or is surrendered without
having been fully exercised, any Shares subject to the Option with respect to
which the Option was not exercised shall again be available for purposes of this
Plan. The Board (or Committee, as applicable) shall maintain records showing the
cumulative total of all Shares subject to outstanding Options.
5. DESIGNATION OF OPTIONS; NUMBER OF SHARES.
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Subject to the terms of the Plan, the Board (or Committee, as applicable)
may, in its sole discretion, grant Options to eligible participants.
In granting Options, the Board (or Committee, as applicable) shall clearly
indicate as to each Option whether the Option is an incentive stock option
("ISO") or a non-qualified stock option ("NQO"). The Board (or Committee, as
applicable) may grant both ISOs and NQOs to the same executive, provided that
the ISOs and NQOs are granted separately. The Board (or Committee, as
applicable) shall not designate an Option as an ISO unless the terms of the
Option comply with all of the requirements of Section 422 of the Internal
Revenue Code of 1986, as amended (the "Code").
Subject to Section 4., the Board (or Committee, as applicable) may grant
Options to eligible participants with respect to such number of Shares as the
Board (or Committee, as applicable), in its sole discretion, may determine;
provided, that no participant may be awarded Options during any calendar year
with respect to an aggregate of more than 1,250,000 shares of common stock
(subject to adjustment under Section 14).
With respect to Options designated as ISOs, the aggregate fair market value
(determined at the Options' respective dates of grant in accordance with Section
422(c)(7) of the Code) of the Shares with respect to which such Options are
exercisable for the first time by a participant during any calendar year (under
all plans taken into account pursuant to Section 422(d) of the Code) shall not
exceed $100,000.
<PAGE>
6. EXERCISE PRICE.
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The price per Share at which each Option may be exercised shall be the
price determined by the Board (or Committee, as applicable) at the time of grant
based on such criteria as may be adopted by the Board (or Committee, as
applicable) in good faith, but in no event shall the exercise price per share of
an Option be less than the par value of a Share or less than fifty percent (50%)
--
of the fair market value of a Share at the time such Option is granted. In
addition, (i) the exercise price per share for any ISO shall be not less than
the fair market value of a Share (determined in accordance with Section
422(c)(7) of the Code) at the time such Option is granted; (ii) the exercise
price per share for any ISO shall be not less than 110% of the fair market value
of a Share (determined in accordance with Section 422(c)(7) of the Code) at the
time such Option is granted if immediately prior to the grant, the recipient is
a person who beneficially owns (determined in accordance with Section 424 of the
Code) stock having more than ten percent (10%) of the total combined voting
----
power of all classes of stock of the Company or any parent or subsidiary
corporation of the Company (determined in accordance with Section 424(d) of the
Code) (a "10% Owner"); and (iii) the exercise price per share shall be not less
than the fair market value of a Share at the time the Option is granted for any
grant that is intended to qualify as "performance-based compensation" under
Section 162(m)(4)(C) of the Code and the regulations promulgated thereunder.
7. TERM.
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The term of each Option shall be established by the Board (or Committee, as
applicable) but shall not exceed ten (10) years from the date that the Option
vests. In addition, no ISO shall have a term exceeding ten (10) years from the
date of grant, and no ISO granted to a participant who is a 10% Owner shall have
a term exceeding five (5) years from the date of grant.
8. TIME OF GRANT.
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The date of grant of an Option for all purposes shall be the date on which
the Board (or Committee, as applicable) approves the grant of the Option. Notice
of the grant shall be given to each Option recipient (each a "Grantee") within a
reasonable time after the date of grant.
9. TRANSFER.
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An Option shall not be transferable by the Grantee except by will or the
laws of descent and distribution. During the Grantee's lifetime, an Option may
only be exercised by the Grantee.
10. EXERCISE.
---------
Subject to the terms of the Plan, an Option may be exercisable at such time
or times after the date of grant and upon such conditions and according to such
schedule as may be determined by the Board (or Committee, as applicable) at the
time of grant. Notwithstanding any other provision of this Plan, in no event may
an Option be exercised after the expiration of its stated term.
<PAGE>
Upon any Change of Control, all outstanding Options, to the extent not
vested and/or exercisable, shall become immediately vested and exercisable in
their entirety. "Change of Control"shall mean the occurrence of any one of the
following: (a) the sale, lease, transfer, conveyance or other disposition (other
than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the assets of the Company and its
Subsidiaries taken as a whole to any "person" (within the meaning of Section
13(d) of the Exchange Act) other than one or more wholly-owned Subsidiaries of
the Company; (b) the adoption of a plan relating to the liquidation or
dissolution of the Company; (c) the first day on which a majority of the members
of the Board are not Continuing Directors; or (d) the consummation of any
transaction (including without limitation any merger, share exchange or
consolidation) the result of which is that any "person" (as defined above),
other than an Exempt Person or Exempt Persons, becomes, directly or indirectly,
the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange
Act, except that an entity or person shall be deemed to have "beneficial
ownership" of all shares that any such entity or person has the right to
acquire, whether such right is exercisable immediately or only after the passage
of time) of more than 30% of the outstanding common stock of the Company;
provided that the transactions covered by this clause (d) shall not include the
--
acquisition by the Company of its common stock; provided further, however, that
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if (x) any "person" (as defined above) becomes, directly or indirectly, the
"beneficial owner" (as defined above) of more than 30% of the outstanding common
stock of the Company solely as a result of acquisition by the Company of its
common stock, (y) such "person" thereafter acquires any additional shares of
common stock of the Company and (z) immediately after such acquisition such
"person" is, directly or indirectly, the "beneficial owner" (as defined above)
of 30% or more of the outstanding common stock of the Company, then such
additional acquisition shall constitute a Change of Control.
"Exempt Person" shall mean (a) the Company, (b) any wholly-owned Subsidiary
of the Company, (c) any individual who immediately before the transaction is an
executive officer of the Company, (d) any employee benefit plan of the Company
or any of its wholly-owned Subsidiaries or (e) any entity or person holding
shares of common stock for or pursuant to the terms of any such plan if such
entity or person is not a beneficiary of or participant in such plan.
"Continuing Directors" shall mean, as of any date, any member of the Board
who (i) was a member of the Board on the date this Plan was adopted by the Board
or (ii) was nominated for election or elected to the Board with the approval of
a majority of the Continuing Directors who were members of the Board at the time
of such nomination or election.
11. METHOD OF EXERCISE.
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An Option shall be deemed exercised when (i) the Company receives written
notice of the holder's decision to exercise the Option; (ii) the holder tenders
to the Company payment in full in cash (or if the Board (or Committee, as
applicable) so determines at the time of grant, in Shares) the aggregate
exercise price for the Shares with respect to which the Option is to be
exercised; (iii) the holder tenders to the Company payment in full in cash the
amount of all federal and state withholding or other employment taxes applicable
to the taxable income, if any, of the holder resulting from the exercise of the
Option; and (iv) the holder complies with such other reasonable requirements as
the Board (or Committee, as applicable) may establish.
<PAGE>
An Option may be exercised for any lesser number of Shares than the full
number for which it could have been exercised. Such a partial exercise shall not
affect the right to exercise the Option from time to time with respect to the
remaining Shares subject to the Option.
<PAGE>
12. CANCELLATION AND REPLACEMENT OF OPTIONS.
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The Board (or Committee, as applicable) may at any time or from time to
time permit a Grantee to voluntarily surrender any outstanding Options where
such surrender is conditioned upon the granting to the Grantee of new Options
for such number of Shares as the Board (or Committee, as applicable) may
determine. The Board (or Committee, as applicable) may require a Grantee to
surrender outstanding Options as a condition precedent to the grant of new
Options to such Grantee.
Subject to the terms of the Plan, the Board (or Committee, as applicable)
shall determine the terms and conditions of any new Options, including the
prices at and periods during which they may be exercised, all of which may
differ from the terms and conditions of the Options surrendered. Any such new
Options shall be subject to the Plan. The grant of new Options in connection
with the surrender of outstanding Options shall be considered, for purposes of
the Plan, as the grant of new Options and not as an alteration, amendment or
modification of the Plan or the Options surrendered.
The Shares subject to any Options surrendered shall no longer be charged
against the aggregate Share limit set forth in Section 4. and shall again be
available for grants of Options under the Plan.
13. TERMINATION OF OPTIONS.
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An Option shall be considered terminated in whole or in part to the extent
that, in accordance with the provisions of the Plan, it can no longer be
exercised with respect to Shares subject to the Option. The Shares subject to
any Option, or portion thereof, that terminates shall no longer be charged
against the aggregate Share limit set forth in Section 4. and shall again be
available for the grant of Options under the Plan.
14. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.
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In the event of any change in the characteristics of the Shares by reason
of a stock dividend, recapitalization, merger, reorganization, consolidation,
stock split, reverse stock split or any other similar event, the Shares subject
to the Plan and the Shares subject to each outstanding Option shall be
correspondingly increased, reduced or changed, such that by exercise of any
outstanding Option, a Grantee will receive, without change in the aggregate
purchase price, securities, as so increased, reduced or changed, comparable to
the securities the Grantee would have received if the Grantee had exercised the
Option prior to such event. In the case of an ISO, the foregoing sentence shall
apply in the event of a merger, consolidation, acquisition of property or stock,
separation, reorganization or liquidation, if the excess of the aggregate fair
market value of the Shares subject to the Option immediately after such event
over the aggregate exercise price of such Shares is not more than the excess of
the aggregate fair market value of all Shares subject to the Option immediately
prior to such event over the aggregate exercise price of such Shares.
Adjustments under this Section shall be made by the Board (or Committee, as
applicable), whose determination as to the nature and extent of any adjustments
shall be binding and final.
<PAGE>
15. COMPLIANCE WITH SECURITIES AND EXCHANGE COMMISSION AND OTHER REQUIREMENTS.
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No certificates for Shares shall be executed and delivered upon exercise of
any Option unless and until the Company is able to take such action, if any, as
is then required to comply with the Securities Act of 1933, as amended; the
Exchange Act; the South Carolina Uniform Securities Act, as amended; any other
applicable state securities laws and the requirements of any exchange on which
the Shares may be listed.
In the case of the exercise of an Option by a person or estate acquiring
the right to exercise the Option by bequest of inheritance, the Board (or
Committee, as applicable) may require reasonable evidence as to the ownership of
the Option and may require such consent and releases of taxing authorities as it
may deem advisable.
16. NO RIGHT TO EMPLOYMENT.
--------------------------
Neither the adoption of the Plan nor its operation, nor any document
describing or referring to the Plan, or any part thereof, shall confer upon any
participant under this Plan any right to continue in the employ of the Company
or any Subsidiary, or shall in any way affect the right and power of the Company
or any Subsidiary to terminate the employment of any participant at any time
with or without cause, to the same extent as the Company or Subsidiary might
have done if the Plan had not been adopted.
17. NO RIGHTS AS SHAREHOLDER.
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No person, estate or other entity shall have any rights as a shareholder
with respect to the Shares obtained as a result of the exercise of an Option
until a certificate or certificates for the Shares have been received.
18. AMENDMENT AND TERMINATION.
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The Board may at any time suspend, amend or terminate this Plan. The Board
(or Committee, as applicable) may make such modifications to the terms and
conditions of any Option as it shall deem advisable. No Option shall be granted
during any suspension or after termination of the Plan. Notwithstanding the
foregoing provisions of this Section, no amendment, suspension or termination of
the Plan and no modification of any Option shall, without the consent of the
holder of an Option, alter or impair any rights or obligations under any Option
granted prior to the effective date of the amendment, suspension or termination
of the Plan or of the modification to the Option.
In addition to Board approval of an amendment to the Plan, the Board shall
obtain such consent by the holders of the capital stock of the Company, if any,
as may be required by applicable law, including without limitation Rule 16b-3
promulgated under the Securities Exchange Act of 1934, as amended, Sections
162(m) and 421 through 424 of the Internal Revenue Code.
<PAGE>
19. USE OF PROCEEDS.
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The proceeds received by the Company from the sale of Shares pursuant to
the exercise of Options shall be used for general corporate purposes as
determined by the Board.
20. INDEMNIFICATION OF BOARD.
---------------------------
In addition to such other rights of indemnification as they may have as
members of the Board, the members of the Board (and the Committee, as
applicable) shall, to the fullest extent permitted by law, be indemnified by the
Company against the reasonable expenses, including attorneys' fees and legal
costs, actually and necessarily incurred in connection with the defense of any
action, suit or proceeding, or in connection with any appeal therein, to which
they or any of them may be a party by reason of any action or omission in
connection with the Plan or any Option, and against all amounts paid by them in
settlement thereof (provided such settlement is approved by independent legal
counsel selected by the Company) or paid by them in satisfaction of a judgment
in any such action, suit or proceeding, except in relation to matters as to
which it has been adjudged in such action, suit or proceeding that such Board or
Committee member is liable for gross negligence or misconduct in the performance
of such member's duties; provided that within 60 days after institution of any
such action, suit or proceeding the Board or Committee member shall in writing
offer the Company the opportunity, at the Company's own expense, to handle and
defend the same.
21. EFFECTIVE DATE OF THE PLAN.
-------------------------------
This Plan shall be effective August 24, 2000, subject to subsequent
approval by the requisite shareholder vote no later than the next annual meeting
of the shareholders of the Company. Any Options granted prior to such
shareholder approval shall also be subject to shareholder approval of the Plan.
If the Plan is not approved by the shareholders of the Company, the Plan shall
terminate and any Options granted under the Plan shall expire.
22. DURATION OF THE PLAN.
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Unless previously terminated by the Board, this Plan shall terminate at the
close of business on August 24, 2010, and no Option may be granted under the
Plan thereafter, but such termination shall not affect any Option granted prior
to termination of the Plan.
23. GOVERNING LAW.
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This Plan shall be governed, interpreted and enforced in accordance with
the laws of South Carolina without regard to choice of law principles.
<PAGE>
DELTA WOODSIDE INDUSTRIES, INC.
STOCK OPTION AGREEMENT
THIS AGREEMENT is made by and between Delta Woodside Industries, Inc. (the
"Company") and ______________________________ (the "Participant") effective as
of the Date of Grant set forth below.
Subject to the Additional Terms and Conditions attached hereto and to the
terms of the Delta Woodside Industries, Inc. 2000 Stock Option Plan, as amended
from time to time (the "Plan"), both of which are incorporated herein by
reference as part of this Agreement, the Company hereby awards as of the Date of
Grant to Participant an option (the "Option"), as described below, to purchase
the Option Shares. Capitalized terms used and not defined or described herein
shall have the meanings set forth in the attached Additional Terms and
Conditions or the Plan.
A. Type of Option: ________________________. [Specify whether the
Option is intended to be an ISO or NQO, either "This Option is intended to be an
"incentive stock option" within the meaning of Section 422 of the Code," or
"This Option is not intended to be an "incentive stock option" within the
---
meaning of Section 422 of the Code." ISOs and NQOs granted at the same time must
be granted using a separate Stock Option Agreement for each.] [If the Option is
an ISO, include the following language: "The Participant acknowledges that any
Option granted to the Participant that is intended to be an ISO will lose
tax-favored treatment under Section 421 of the Code if the Participant fails to
comply with the holding period requirements of Section 422 of the Code."]
B. Date of Grant: __________________________.
C. Exercise Price: __________ per Share. [No less than 50% of fair
market value of a Share as of the Date of Grant and no less than par value
($.01). No less than fair market value if the Option is an ISO or is intended
as "performance-based compensation" under Code Section 162(m). No less than
110% of fair market value if the Option is an ISO and the recipient is a 10%
Owner immediately prior to the grant.]
D. Option Shares: __________ Shares.
E. Vesting Schedule: [As determined by the Board or Committee.]
F. Term: __________________. [As determined by the Board or Committee.
If ISOs are awarded, not to exceed ten (10) years from the Date of Grant and not
to exceed five (5) years from the Date of Grant if the recipient is a 10% Owner
immediately prior to the grant.]
G. Expiration of Option Upon Termination of Employment and Death of
Participant. [As determined by the Board or Committee. See Section 10 of the
Plan.]
H. Form of Payment. [Payment must be in cash unless the Board or
Committee permits exercise by transfer of Shares with a fair market value equal
to the aggregate exercise price.]
IN WITNESS WHEREOF, the Company and the Participant have executed this
Agreement as of the date first set forth above.
DELTA WOODSIDE INDUSTRIES, INC. PARTICIPANT
By:_________________________________ ______________________________
Name:_______________________________ Name:_________________________
Title:______________________________
<PAGE>
DELTA WOODSIDE INDUSTRIES, INC.
STOCK OPTION AGREEMENT
ADDITIONAL TERMS AND CONDITIONS
1. EXERCISE.
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Subject to the terms of the Plan, an Option may be exercised from time to
time during the Term of the Option with respect to all or a portion of the
Shares with respect to which the Option has vested. A partial exercise shall not
affect the right to exercise the Option from time to time with respect to the
remaining Shares subject to the Option. Notwithstanding any other provision of
this Stock Option Agreement or the Plan, in no event may an Option be exercised
after the expiration of its stated term.
2. METHOD OF EXERCISE.
---------------------
An Option shall be deemed exercised when (i) the Company receives written
notice of the holder's decision to exercise the Option; (ii) the holder tenders
to the Company payment in full in cash (or, if authorized by this Stock Option
Agreement, Shares) the aggregate exercise price for the Shares with respect to
which the Option is to be exercised; (iii) the holder tenders to the Company
payment in full in cash the amount of all federal and state withholding or other
employment taxes applicable to the taxable income, if any, of the holder
resulting from the exercise of the Option; and (iv) the holder complies with
such other reasonable requirements as the Board (or Committee, as applicable)
may establish.
3. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.
-----------------------------------------------
In the event of any change in the characteristics of the Shares by reason
of a stock dividend, recapitalization, merger, reorganization, consolidation,
stock split, reverse stock split or any other similar event, the Shares subject
to the Plan and the Shares subject to each outstanding Option shall be
correspondingly increased, reduced or changed, such that by exercise of any
outstanding Option, a Grantee will receive, without change in the aggregate
purchase price, securities, as so increased, reduced or changed, comparable to
the securities the Grantee would have received if the Grantee had exercised the
Option prior to such event. In the case of an ISO, the foregoing sentence shall
apply in the event of a merger, consolidation, acquisition of property or stock,
separation, reorganization or liquidation, if the excess of the aggregate fair
market value of the Shares subject to the Option immediately after such event
over the aggregate exercise price of such Shares is not more than the excess of
the aggregate fair market value of all Shares subject to the Option immediately
prior to such event over the aggregate exercise price of such Shares.
Adjustments under this Section shall be made by the Board (or Committee, as
applicable), whose determination as to the nature and extent of any adjustments
shall be binding and final.
4. TRANSFER.
---------
An Option shall not be transferable by the Grantee except by will or the
laws of descent and distribution. During the Grantee's lifetime, an Option may
only be exercised by the Grantee.
<PAGE>
5. COMPLIANCE WITH SECURITIES AND EXCHANGE COMMISSION AND OTHER REQUIREMENTS.
----------------------------------------------------------------------------
No certificates for Shares shall be executed and delivered upon exercise of
any Option unless and until the Company is able to take such action, if any, as
is then required to comply with the Securities Act of 1933, as amended; the
Securities Exchange Act of 1934, as amended; the South Carolina Uniform
Securities Act, as amended; any other applicable state securities laws and the
requirements of any exchange on which the Shares may be listed.
In the case of the exercise of an Option by a person or estate acquiring
the right to exercise the Option by bequest of inheritance, the Board (or
Committee, as applicable) may require reasonable evidence as to the ownership of
the Option and may require such consent and releases of taxing authorities as it
may deem advisable.
6. NO RIGHT TO EMPLOYMENT.
--------------------------
Neither the adoption of the Plan nor its operation, nor any document
describing or referring to the Plan, or any part thereof, nor this Stock Option
Agreement shall confer upon any participant under the Plan any right to continue
in the employ of the Company or any Subsidiary, or shall in any way affect the
right and power of the Company or any Subsidiary to terminate the employment of
any participant at any time with or without cause, to the same extent as the
Company or Subsidiary might have done if the Plan had not been adopted.
7. NO RIGHTS AS SHAREHOLDER.
----------------------------
No person, estate or other entity shall have any rights as a shareholder
with respect to the Shares obtained as a result of the exercise of an Option
until a certificate or certificates for the Shares have been received.
8. AMENDMENT AND TERMINATION.
----------------------------
The Board may at any time suspend, amend or terminate the Plan. The Board
(or Committee, as applicable) may make such modifications of the terms and
conditions of any Option as it shall deem advisable. Notwithstanding the
foregoing provisions of this Section, no amendment, suspension or termination of
the Plan and no modification of any Option shall, without the consent of the
holder of an Option, alter or impair any rights or obligations under any Option
granted prior to the effective date of the amendment, suspension or termination
of the Plan or of the modification of the Option.
In addition to Board approval of an amendment to the Plan, the Board shall
obtain such consent by the holders of the capital stock of the Company, if any,
as may be required by applicable law, including without limitation Rule 16b-3
promulgated under the Securities Exchange Act of 1934, as amended, Sections
162(m) and 421 through 424 of the Internal Revenue Code.
9. GOVERNING LAW.
---------------
This Stock Option Agreement shall be governed, interpreted and enforced in
accordance with the laws of South Carolina without regard to choice of law
principles.
<PAGE>
10. ENTIRE AGREEMENT.
------------------
This Stock Option Agreement and the Plan, as amended, express the entire
understanding and agreement of the parties hereto with respect to the grant of
the Option evidenced by this Stock Option Agreement.
<PAGE>
