O'REILLY AUTOMOTIVE, INC.
                         2003 EMPLOYEE STOCK OPTION PLAN
 
I.   Purpose of the Plan.
 
     The O'Reilly Automotive,  Inc. 2003 Employee Stock Option Plan (the "Plan")
is  intended  to provide a means  whereby  certain  key  employees  of  O'Reilly
Automotive, Inc., a Missouri corporation (the "Company"), may develop a sense of
proprietorship and personal involvement in the development and financial success
of the Company and its  subsidiaries,  and to encourage  them to remain with and
devote their best  efforts to the business of the Company and its  subsidiaries,
thereby   advancing  the   interests  of  the  Company  and  its   shareholders.
Accordingly,  the Company may make  awards to certain  employees  in the form of
stock options  ("Options") with respect to shares of the Company's common stock,
par value  $0.01 per share (the  "Stock").  Options  may either be  nonqualified
stock options  ("Nonqualified  Options") or options  ("Incentive Stock Options")
that are intended to qualify as incentive stock options under Section 422 of the
Internal Revenue Code of 1986, as amended (the "Code").
 
II.  Administration.
 
     (a)  Committee  Composition.  The Plan shall be administered by a committee
          of the Board of Directors of the Company (the  "Board")  consisting of
          not less than two members of the Board as the Board may  appoint  (the
          "Committee").  The  members of the  Committee  shall be  "Non-Employee
          Directors"  within the  meaning of Rule  16b-3  promulgated  under the
          Securities  Exchange Act of 1934, as amended (the "Act"), and "outside
          directors"  as defined  under  Section  162(m) of the Code;  provided,
          however,   that  noncompliance  with  such  qualifications  shall  not
          invalidate any grants of Options by the Committee.  Committee  members
          may  resign at any time by  delivering  written  notice to the  Board.
          Vacancies in the  Committee,  however  caused,  shall be filled by the
          Board.  The Committee shall act by a majority of its members in office
          and the  Committee  may act  either by vote at a  telephonic  or other
          meeting or by a consent or other written  instrument  signed by all of
          the members of the Committee.  If the Committee does not exist, or for
          any  other  reason  determined  by the  Board,  the Board mat take any
          action under the Plan that would  otherwise be the  responsibility  of
          the Committee.
 
     (b)  Committee  Authority.  The Committee shall have the sole authority to:
          (i) determine the terms and provisions of the Option  agreements  (the
          "Agreements")   entered   into  under  the  Plan;   (ii)  prepare  and
          distribute,   in  such  manner  as  the  Committee  determines  to  be
          appropriate,  information  about  the Plan;  and (iii)  make all other
          determinations deemed necessary or advisable for the administration of
          the Plan.  The  Committee  may vary the terms  and  provisions  of the
          individual Agreements in its discretion.  Further, the Committee shall
          have authority to grant options and to determine the exercise price of
          the Stock  covered  by each  Option,  the terms and  duration  of each
          Option,  the key  employees to whom,  and the times at which,  Options
          shall be granted, whether the Option shall be a Nonqualified Option or
          an  Incentive  Stock  Option and the number of shares to be covered by
          each Option.  Notwithstanding  the foregoing,  the Committee shall not
          have  the   authority  to  make  any   determination   that  would  be
          inconsistent  with the  requirements,  restrictions,  prohibitions  or
          limitations specified in the Plan.
 
     (c)  Day-to-Day  Administration.  The day-to-day administration of the Plan
          may be carried out by such  officers  and  employees of the Company as
          shall be designated  from time to time by the Committee.  All expenses
          and  liabilities  incurred by the  Committee  in  connection  with the
          administration  of  the  Plan  shall  be  borne  by the  Company.  The
          Committee may employ attorneys, consultants,  accountants, appraisers,
          brokers or other persons,  and the Committee,  the Board,  the Company
          and the  officers and  employees  of the Company  shall be entitled to
          rely upon the advice,  opinions or valuations of any such persons. The
          interpretation  and  construction by the Committee of any provision of
          the Plan and any determination by the Committee under any provision of
          the Plan shall be final and conclusive  for all purposes.  Neither the
          Committee  nor any  member  thereof  shall  be  liable  for  any  act,
          omission,  interpretation,   construction  or  determination  made  in
          connection  with  the  Plan in good  faith,  and  the  members  of the
          Committee shall be entitled to  indemnification  and  reimbursement by
          the  Company  in  respect  of  any  claim,  loss,  damage  or  expense
          (including  counsel  fees)  arising  therefrom  to the fullest  extent
          permitted  by law.  The  members  of the  Committee  shall be named as
          insureds in  connection  with any  directors  and  officers  liability
          insurance coverage that may be in effect from time to time.
 
 
III. Shares Subject to the Plan.
 
The  aggregate  number of shares  that may be  issued  under the Plan  shall not
exceed  4,000,000  shares of Stock  plus all  shares  authorized  under the 1993
Employee  Stock  Option  Plan not  covered  by an  option  on the date such plan
expires.  No more than 1,000,000  shares of Stock may be subject to Options that
are intended to be  "performance-based  compensation"  (as that term is used for
purposes of Section 162(m) of the Code) granted to any one individual during any
calendar  year,  regardless of when such shares are  deliverable.  The shares of
Stock issuable  under the Plan may consist of authorized but unissued  shares of
Stock or  previously  issued shares of Stock  reacquired by the Company.  Any of
such shares that remain unsold and that are not subject to  outstanding  Options
at the  termination of the Plan shall cease to be subject to the Plan, but until
termination  of the Plan and the  expiration  of all Options  granted  under the
Plan,  the  Company  shall at all times make  available a  sufficient  number of
shares to meet the requirements of the Plan and the outstanding  Options. If any
Option, in whole or in part,  expires or terminates  unexercised or is cancelled
or forfeited, the shares theretofore subject to such Option may again be subject
to an Option granted under the Plan. The aggregate  number of shares that may be
issued under  Options  granted under the Plan and any maximums set forth in this
Plan  shall be subject  to  adjustment  as  provided  in  Article V hereof.  The
issuance  of Stock  pursuant  to the  exercise  of an Option  shall  result in a
decrease in the number of shares of Stock that may  thereafter  be available for
purposes of the Plan by the number of shares as to which the Option is exercised
or cancelled.
 
IV.  Grants of Options.
 
     (a)  Type and Number.  Options granted under the Plan shall be of such type
          (Nonqualified Option or Incentive Stock Option) and for such number of
          shares of Stock  and  subject  to such  terms  and  conditions  as the
          Committee shall designate. The Committee may grant Options at any time
          and from time to time  through,  but not after,  May 6,  2013,  to any
          individual eligible to receive the same. For purposes of the Plan, the
          date on which an Option is granted is referred to herein as the "Grant
          Date."
 
     (b)  Option  Agreement.  Options  granted  pursuant  to the  Plan  shall be
          evidenced by  Agreements  that shall comply with and be subject to the
          terms and conditions set forth in this Section IV and may contain such
          other  provisions,  consistent  with the Plan, as the Committee  shall
          deem advisable.  Each Agreement shall state the total number of shares
          of  Stock  that  are  subject  to the  Option.  References  herein  to
          "Agreements" shall include,  to the extent applicable,  any amendments
          to such Agreements.
 
     (c)  Persons Eligible to Receive Options.
 
          (i)  Only key  employees of the Company or its  subsidiaries  shall be
               eligible to receive  Options under the Plan. In granting  Options
               to an employee,  the Committee shall take into  consideration the
               contribution  the employee has made or may make to the success of
               the Company or its subsidiaries and such other  considerations as
               the Committee shall determine.  The Committee shall also have the
               authority  to  consult  with  and  receive  recommendations  from
               officers and other employees of the Company and its  subsidiaries
               with regard to these matters. In no event shall any employee, his
               legal   representatives,   heirs,  legatees,   distributees,   or
               successors  have any right to participate in the Plan,  except to
               such extent, if any, as the Committee shall determine.
 
          (ii) Options  may be  granted  under  the  Plan  from  time to time in
               substitution  for stock  options  and stock  appreciation  rights
               granted by other  corporations  (the "Acquired  Corporation")  to
               their employees who become key employees of the Company or of any
               of its  subsidiaries as a result of a merger or  consolidation of
               the Acquired Corporation with the Company or any such subsidiary,
               or the  acquisition  by the  Company  or a  subsidiary  of all or
               substantially  all of the assets of the Acquired  Corporation  or
               the  acquisition  by the Company or a subsidiary  of stock of the
               Acquired corporation.
 
     (d)  Exercise Price.
 
 
          (i)  The exercise  price of each share of Stock covered by each Option
               ("Exercise  Price")  shall not be less than one  hundred  percent
               (100%) of the Market  Value Per Share (as  defined  below) of the
               Stock on the date the Option is granted;  provided,  however,  if
               and when an  Incentive  Stock  Option is granted and the employee
               receiving the  Incentive  Stock Option owns or will be considered
               to own by  reason  of  Section  424(d)  of the Code more than ten
               percent (10%) of the total  combined  voting power of all classes
               of stock of the Company (a "10% Shareholder"), the Exercise Price
               of the Stock covered by such Incentive  Stock Option shall not be
               less than one hundred and ten percent  (110%) of the Market Value
               Per Share of the Stock on the Grant Date of the  Incentive  Stock
               Option.
 
          (ii) "Market  Value Per  Share" of the Stock  shall  mean:  (A) if the
               Stock  is not  publicly  traded,  the  amount  determined  by the
               Committee  on the  date of the  grant of the  Option;  (B) if the
               Stock is traded only otherwise than on a securities  exchange and
               is not quoted on the National  Association of Securities  Dealers
               Automated Quotation System ("NASDAQ"), the closing quoted selling
               price of the  Stock on the date of grant of the  Option as quoted
               in  "pink  sheets"  published  by the  National  Daily  Quotation
               Bureau;  (C) if the  Stock is  traded  only  otherwise  than on a
               securities  exchange and is quoted on NASDAQ,  the closing quoted
               selling price of the Stock on the date of grant of the Option, as
               reported  by the  Wall  Street  Journal;  or (D) if the  Stock is
               admitted to trading on a securities exchange,  the closing quoted
               selling price of the Stock on the date of grant of the Option, as
               reported in the Wall Street Journal.
 
     (e)  Exercisability of Options.
 
          (i)  An Option may be  exercisable in  installments  or otherwise upon
               such terms as the Committee  shall  determine  when the Option is
               granted.  The  Committee  may fix  such  waiting  and/or  vesting
               periods,  exercise  dates or other  limitations  as it shall deem
               appropriate  with  respect  to  Options  granted  under  the Plan
               including, without limitation,  making the exercisability thereof
               contingent    upon   the    achievement   of   specific    goals.
               Notwithstanding  the  foregoing,  however,  in no event  shall an
               Option, or any portion thereof, be exercisable until at least six
               months after the date of grant of such Option.
 
          (ii) The Committee at any time:  (A) may  accelerate the time at which
               any Option granted hereunder is exercisable or otherwise vary the
               terms of an Option,  notwithstanding  the fact that such variance
               may cause the Option to be treated as a Nonqualified  Option; (B)
               in  the  case  of  a   Nonqualified   Option,   may   permit  the
               transferability of such Option and may remove any restrictions or
               conditions  to which a  Nonqualified  Option is subject;  and (C)
               subject  to  the  consent  of  the   optionee,   may  convert  an
               outstanding Incentive Stock Option to a Nonqualified Option if it
               deems such conversion to be in the best interest of the optionee.
 
          (iii)No Option shall be exercisable (and any attempted  exercise shall
               be deemed null and void) if such exercise would create a right of
               recovery for  "short-swing  profits"  under  Section 16(b) of the
               Act,  unless the  optionee  pays the  Company  the amount of such
               "short-swing profits" at the time of the exercise of the Option.
 
          (iv) To  the  extent  that  the  aggregate   Market  Value  Per  Share
               (determined  at the Grant  Date) of Stock  with  respect to which
               Incentive  Stock  Options  (determined  without  regard  to  this
               sentence) are  exercisable  for the first time by any  individual
               during any calendar  year (under all plans of the Company and its
               subsidiaries)  exceeds One Hundred Thousand  Dollars  ($100,000),
               such excess  portion of such  Incentive  Stock  Options  shall be
               treated as  Nonqualified  Options (this sentence shall be applied
               by taking  Incentive  Stock  Options into account in the order in
               which they were granted).
 
 
     (f)  Method of Exercise and Payment of Exercise Price.
 
          (i)  Options may be exercised by giving  written notice to the Company
               stating  the  number  of shares  for  which  the  Option is being
               exercised,  accompanied  by payment in full of the Exercise Price
               relating  to the  shares  with  respect to which the Option is so
               exercised.
 
 
          (ii) The full Exercise  Price for the shares with respect to which the
               Option is being exercised shall be payable to the Company: (A) in
               cash or by check  payable  and  acceptable  to the  Company;  (B)
               subject to the  approval of the  Committee,  by  tendering to the
               Company shares of Stock owned by the optionee having an aggregate
               Market  Value  Per Share as of the date of  exercise  that is not
               greater than the full Exercise  Price for the shares with respect
               to which the Option is being exercised, provided that such shares
               shall  have been then  owned by the  optionee  for a period of at
               least  six  months  prior to such  exercise,  and by  paying  any
               remaining  amount of the Exercise Price as provided in (A) above;
               or (C)  subject  to the  approval  of the  Committee  and to such
               instructions  as the  Committee  may specify,  at the  optionee's
               written  request the Company  may  deliver  certificates  for the
               shares  of Stock for which  the  Option is being  exercised  to a
               broker  for sale on behalf  of the  optionee,  provided  that the
               optionee has irrevocably instructed such broker to remit directly
               to the  Company on the  optionee's  behalf the full amount of the
               Exercise Price from the proceeds of such sale; provided, however,
               that in the case of an Incentive Stock Option,  (B) and (C) above
               shall  apply only if  Committee  approval is given on or prior to
               the Grant  Date and the  Agreement  expressly  provides  for such
               optional  payment terms. In the event that the optionee elects to
               make  payment as allowed  under clause (B) above,  the  Committee
               may, upon  confirming that the optionee owns the number of shares
               of  Stock  being  tendered,  authorize  the  issuance  of  a  new
               certificate  for the number of shares being acquired  pursuant to
               the  exercise  of the  Option  less the  number of  shares  being
               tendered  upon the  exercise  and return to the  optionee (or not
               require  surrender  of) the  certificate  for the shares of Stock
               being  tendered upon the exercise.  Payment  instruments  will be
               received subject to collection.
 
          (iii)Notwithstanding  any other  provision  of the Plan,  the  Company
               shall have no  liability to deliver any shares of Stock under the
               Plan or make any other  distribution  of benefits  under the Plan
               unless  such  delivery  or  distribution  would  comply  with all
               applicable laws (including,  without limitation, the requirements
               of the  Securities  Act of 1933, as amended),  and the applicable
               requirements  of any securities  exchange,  the NASDAQ or similar
               entity.  If the employee  fails to timely accept  delivery of and
               pay for the shares specified in such notice,  the Committee shall
               have the right to  terminate  the  Option  with  respect  to such
               shares.
 
     (g)  Term.
 
          (i)  The term of each Option shall be  determined  by the Committee at
               the  Grant  Date;  provided,  however,  that each  Option  shall,
               notwithstanding  anything  in the  Plan or any  Agreement  to the
               contrary, expire not more than ten years (five years with respect
               to an Incentive  Stock Option granted to an employee who is a 10%
               Shareholder)  from  the  Grant  Date  or,  if  earlier,  the date
               specified in the Agreement.
 
          (ii) In the event an individual's  employment with the Company and its
               subsidiaries   shall   terminate  for  reasons  other  than:  (i)
               retirement in accordance  with the terms of a retirement  plan of
               the  Company  or  one of its  subsidiaries  ("Retirement");  (ii)
               permanent  disability  (as  defined  in Section  22(e)(3)  of the
               Code); or (iii) death, the  individual's  Options shall terminate
               as of the date of such termination of employment and shall not be
               exercisable to any extent as of and after such time.
 
          (iii)If  any  termination  of  employment  is  due  to  Retirement  or
               permanent  disability,  the  individual  shall  have the right to
               exercise  any  Option  at any time  within  the  12-month  period
               (three-month  period in the case of  Retirement  for Options that
               are  Incentive  Stock  Options)  following  such  termination  of
               employment,   but  only  to  the  extent   that  the  Option  was
               exercisable  immediately prior to such termination of employment.
               Notwithstanding  any other provision contained in the Plan or the
               Agreements,   if  the   termination   of  employment  is  due  to
               retirement,  and such  retiring  individual at the time of his or
               her retirement (A) is at least  fifty-five (55) years of age, and
               (B) the sum of the  individual's  age and years of service to the
               Company is equal to or greater  than eighty (80) years,  then all
               outstanding  options  granted to such retiring  individual  shall
               automatically become immediately exercisable within such 12-month
               period  (three  month  period  in the  case of  Options  that are
               Incentive Stock Options).
 
          (iv) Whether any  termination  of  employment  is due to Retirement or
               permanent  disability and whether an authorized  leave of absence
               or  absence  for  military  or  government  service  or for other
               reasons shall constitute a termination of employment for purposes
               of the Plan  shall be  determined  by the  Committee  in its sole
               discretion.
 
 
          (v)  If an individual  shall die while entitled to exercise an Option,
               the individual's estate,  personal representative or beneficiary,
               as the case may be,  shall have the right to exercise  the Option
               at any time within the 12-month period  following the date of the
               optionee's death, to the extent that the optionee was entitled to
               exercise the same on the day immediately  prior to the optionee's
               death.
 
          (vi) The right of an individual to exercise an Option shall  terminate
               to the extent that such Option is exercised.
 
V.   Corporate Transactions and Adjustment.
 
     (a)  Effect on Corporate Actions. The existence of the Plan and the Options
          granted  hereunder  shall not  affect in any way the right or power of
          the Board of Directors or the  shareholders  of the Company to make or
          authorize any adjustment,  recapitalization,  reorganization  or other
          change in the Company's capital structure or its business,  any merge'
          or  consolidation  of the Company  with or into  another  entity,  any
          issuance of bonds,  debentures,  preferred or prior preference  stocks
          ahead of or affecting the Stock or the rights thereof, the dissolution
          or  liquidation  of the  Company or any sale or transfer of all or any
          part  of its  assets  or  business,  or  any  other  corporate  act or
          proceeding.
 
     (b)  Adjustment.  The shares with  respect to which  Options may be granted
          are shares of Stock as presently constituted.  If, however, the number
          of  outstanding  shares of Stock are increased or  decreased,  or such
          shares  are  exchanged  for a  different  number  or kind of shares or
          securities   of   the   Company   through   reorganization,    merger,
          recapitalization,   reclassification,  stock  dividend,  stock  split,
          combination  of shares or other  similar  transaction,  the  aggregate
          number of shares of Stock  subject  to the Plan and any  maximums  set
          forth in Section III hereof, and the shares of Stock subject to issued
          and  outstanding  Options  under the Plan shall be  appropriately  and
          proportionately  adjusted by the Committee.  Any such adjustment in an
          outstanding  Option  shall be made  without  change  in the  aggregate
          Exercise Price applicable to the unexercised portion of the Option but
          with an  appropriate  adjustment  in the price for each share or other
          unit of any security covered by the Option.
 
     (c)  No Adjustment Upon Issuance of Securities.  Except as may otherwise be
          expressly  provided in the Plan, the issuance by the Company of shares
          of capital stock of any class or securities convertible into shares of
          capital stock of any class for cash, property, labor or services, upon
          direct  sale,  upon the  exercise of rights or  warrants to  subscribe
          therefor,  or upon  conversion of shares or obligations of the Company
          convertible into such shares of capital stock or other securities, and
          in any case  whether or not for fair value,  shall not affect,  and no
          adjustment by reason thereof shall be made with respect to, the number
          of shares of Stock  available  under the Plan or  subject  to  Options
          theretofore  granted or the  Exercise  Price per share with respect to
          outstanding Options.
 
     (d)  Final  Determination.  Adjustments under this Section shall be made by
          the Committee  whose  determination  as to what  adjustments  shall be
          made, and the extent thereof,  shall be final, binding and conclusive.
          No  fractional  shares of Stock  shall be issued  under the Plan or in
          connection with any such adjustment.
 
     (e)  Automatic Termination of Plan and Options. Notwithstanding anything to
          the contrary contained in this Section V, upon: (i) the dissolution or
          liquidation  of  the  Company,   (ii)  a  reorganization,   merger  or
          consolidation  of the Company with one or more  corporations  in which
          the  Company  is not the  surviving  corporation,  or  (iii) a sale of
          substantially  all of  the  assets  of the  Company,  the  Plan  shall
          terminate,  and any  outstanding  Options granted under the Plan shall
          terminate  on the day  before  the  consummation  of the  transaction;
          provided  that  the  Committee  shall  have  the  right,  but  not the
          obligation,  to  accelerate  the  time in  which  any  Options  may be
          exercised  prior to such a termination.  However,  the  termination of
          such  Options  shall  not occur if  provision  is made in  writing  in
          connection  with  the  transaction,  in a  manner  acceptable  to  the
          Committee,  for: (A) the  continuance  of the Plan and  assumption  of
          outstanding  Options,  (B) the  substitution  for such  Options of new
          options to purchase the stock of a successor corporation (or parent or
          subsidiary  thereof),  with  appropriate  adjustments as to number and
          kind of shares and option price or (C) other  treatment of the Options
          acceptable to the Committee. The Committee shall have the authority to
          amend this  paragraph  to provide for a  requirement  that a successor
          corporation assume any outstanding Options.
 
 
VI.  Term of Plan.
 
No Option  shall be granted  pursuant  to the Plan after ten (10) years from the
earlier of the date of  adoption  of the Plan by the Board of the Company or the
date of approval by the Company's  shareholders.  Notwithstanding the foregoing,
if a longer term is permitted with respect to the duration of an incentive stock
option plan under law,  the Board may extend the term of this Plan to a term not
to exceed the longest term permitted  with respect to an incentive  stock option
plan.
 
VII. Amendment and Termination of Plan.
 
     (a)  Authority to Amend and  Terminate.  The Board may,  from time to time,
          with respect to any shares at the time not subject to Options, suspend
          or  terminate  the Plan or  amend or  revise  the  terms of the  Plan;
          provided  that any  amendment  to the  Plan  shall  be  approved  by a
          majority of the shareholders of the Company if the amendment would (i)
          materially  increase or decrease the benefits accruing to participants
          under the Plan;  (ii)  increase  or  decrease  the number of shares of
          Stock which may be issued under the Plan,  except as  permitted  under
          the  provisions  of Section V above;  or (iii)  materially  modify the
          requirements as to eligibility for participation in the Plan.
 
     (b)  Consent of Optionholder Required. Subject to the provisions in Section
          V above,  no amendment,  suspension or termination of this Plan shall,
          without  the  consent of the  optionee,  alter or impair any rights or
          obligations under any Option granted to such optionee under the Plan.
 
VIII. Effective Date of Plan.
 
The Plan shall become  effective  upon adoption by the Board and approval by the
Company's shareholders; provided, however, that prior to approval of the Plan by
the  Company's  shareholders  but after  adoption  by the Board,  Options may be
granted under the Plan subject to obtaining such approval.
 
IX.  Preemption by Applicable Laws and Regulations.
 
Anything in the Plan or any  Agreement  entered into pursuant to the Plan to the
contrary  notwithstanding,  if, at any time specified  herein or therein for the
making of any determination  with respect to the issuance or other  distribution
of shares of Stock,  any law,  regulation  or  requirement  of any  governmental
authority  having  jurisdiction in the premises shall require either the Company
or the optionee  (or the  optionee's  beneficiary),  as the case may be, to take
any'action  in  connection  with  any  such   determination,   the  issuance  or
distribution  of such  shares  or the  making  of such  determination  shall  be
deferred until such action shall have been taken.
 
X.   Miscellaneous.
 
     (a)  Taxes and Withholding. All distributions under the Plan are subject to
          withholding of all applicable  taxes,  and the Committee may condition
          the  delivery  of any  shares  or  other  benefits  under  the Plan on
          satisfaction of the applicable withholding obligations. The Committee,
          in its discretion,  and subject to such  requirements as the Committee
          may impose prior to the  occurrence  of such  withholding,  may permit
          such withholding  obligations to be satisfied  through cash payment by
          the  optionee,  through  the  surrender  of shares  of Stock  that the
          optionee  already owns, or through the surrender of shares of Stock to
          which the optionee is otherwise entitled under the Plan.
 
     (b)  No  Employment  Contract.  Nothing  contained  in the  Plan  shall  be
          construed as conferring upon any optionee the right to continue in the
          employ of the Company or any of its subsidiaries.
 
     (c)  Employment  with  Subsidiaries.  Employment  by the  Company  for  the
          purpose of this Plan shall be deemed to include  employment by, and to
          continue  during any period in which an employee is in the  employment
          of, any subsidiary.
 
 
     (d)  No Rights as a  Shareholder.  An  optionee  shall  have no rights as a
          shareholder  with respect to shares covered by such optionee's  Option
          until the date of the  issuance  of shares  to the  optionee  upon the
          optionee's  exercise of the  Option.  No  adjustment  will be made for
          dividends or other  distributions  or rights for which the record date
          is prior to the date of such issuance.
 
     (e)  No Right to Corporate  Assets.  Nothing contained in the Plan shall be
          construed as giving any optionee, such optionee's beneficiaries or any
          other person any equity or other interest of any kind in any assets of
          the  Company or any  subsidiary  or  creating a trust of any kind or a
          fiduciary  relationship  of  any  kind  between  the  Company  or  any
          subsidiary  and any  such  person.  Any  optionee  shall  have  only a
          contractual  right to shares  of Stock as set forth in the  Agreement,
          unsecured by any assets of the Company or any subsidiary,  and nothing
          contained in the Plan shall  constitute a guarantee that the assets of
          the Company or any subsidiary  shall be sufficient to pay any benefits
          to any person.
 
     (f)  No  Restriction  on Corporate  Action.  Nothing  contained in the Plan
          shall be  construed  to prevent  the  Company or any  subsidiary  from
          taking  any  corporate  action  that is deemed by the  Company or such
          subsidiary to be appropriate or in its best interests,  whether or not
          such  action  would have an  adverse  effect on the Plan or any Option
          made under the Plan.  No optionee,  beneficiary  or other person shall
          have any claim  against the Company or any  subsidiary  as a result of
          any such action.
 
     (g)  Limitations on Transfer.  Except as designated by the optionee by will
          or by the laws of descent and distribution, neither an optionee nor an
          optionee's  beneficiary  shall  have  the  power  or  right  to  sell,
          exchange, pledge, transfer, assign or otherwise encumber or dispose of
          such optionee's or  beneficiary's  interest  arising under the Plan or
          any Option received under the Plan, nor shall such interest be subject
          to seizure for the payment of an  Optionee's or  beneficiary's  debts,
          judgments,  alimony,  or separate  maintenance or be  transferable  by
          operation  of law in  the  event  of an  optionee's  or  beneficiary's
          bankruptcy or insolvency  and to the extent any such interest  arising
          under the Plan or an Option  received  under the Plan is  awarded to a
          spouse  pursuant to any divorce  proceeding,  such  interest  shall be
          deemed to be  terminated  and  forfeited  notwithstanding  any vesting
          provisions or other terms herein or in the agreement  evidencing  such
          Option.
 
     (h)  Application  of Funds.  The proceeds  received by the Company from the
          sale of shares of Stock pursuant to the Plan shall be used for general
          corporate purposes.
 
     (i)  Elections in Writing. Unless otherwise specified herein, each election
          required  or  permitted  to be made by any  optionee  or other  person
          entitled to benefits under the Plan,  and any permitted  modification,
          or  revocation  thereof,  shall be in writing at such  times,  in such
          form,  and  subject  to  such   restrictions  and   limitations,   not
          inconsistent  with  the  terms of the  Plan,  as the  Committee  shall
          require.
 
     (j)  Governing Law; Construction. All rights and obligations under the Plan
          shall be governed by, and the Plan shall be  construed  in  accordance
          with,  the  laws  of the  State  of  Missouri  without  regard  to the
          principles  of  conflicts  of laws.  Titles and  headings  to Sections
          herein are for purposes of reference  only, and shall in no way limit,
          define or  otherwise  affect  the  meaning  or  interpretation  of any
          provisions of the Plan.