<DOCUMENT>
<TYPE>EX-4
<SEQUENCE>2
<FILENAME>technitrol4_1sops8.txt
<TEXT>
 
                                                                     EXHIBIT 4.1
                                                                     -----------
 
                                TECHNITROL, INC.
                             2001 STOCK OPTION PLAN
 
 
     1.   PURPOSE OF THE PLAN.
 
     Pursuant to the terms and  conditions  contained  in the  Technitrol,  Inc.
Incentive  Compensation Plan, this Stock Option Plan ("Plan") was adopted by the
Board of Directors of Technitrol, Inc. on February 13, 2001. The purpose of this
Plan is to advance the interests of the Company through  providing key Employees
of the  Company  with the  opportunity  to acquire  Shares of Common  Stock.  By
encouraging  such stock  ownership,  the Company  seeks to  attract,  retain and
motivate  the  best   available   personnel   for   positions   of   substantial
responsibility  and to provide  additional  incentive  to key  Employees  of the
Company and its Designated Affiliates to promote the success of the business. It
is the  intention  of the  Company in  establishing  this Plan that the  Options
granted to  Participants  pursuant  to this Plan shall not be  "incentive  stock
options" within the meaning of Section 422 of the Code. This Plan is established
by the Committee pursuant to the Technitrol, Inc. Incentive Compensation Plan.
 
     2.   DEFINITIONS.
 
     As used herein, the following definitions shall apply.
 
     (a)  "Affiliate"  shall  mean  any  "parent   corporation"  or  "subsidiary
corporation"  of the  Company,  as such terms are defined in Section  424(e) and
(f), respectively, of the Code.
 
     (b) "Agreement"  shall mean a written  agreement entered into in accordance
with Section 5(c).
 
     (c)  "Awards"  shall mean  Options  that are  granted by the  Committee  to
Participants.
 
     (d) "Board" shall mean the Board of Directors of the Company.
 
     (e)  "Change  in  Control"  shall  mean the  occurrence  of  either  of the
following events: (1) any "Person" or "Persons" as defined in Sections 13(d) and
14(b) of the  Securities  Exchange  Act of 1934,  as amended  (the  "Act") is or
becomes the "Beneficial Owner" (as defined in Rule 13(d)-3 of the Act), directly
or indirectly,  of securities of the Company  representing more than twenty-five
percent  (25%) of the combined  voting power of the Company's  then  outstanding
securities  or (2) more than fifty  percent  (50%) of the assets of the Company,
which are used to generate  more than fifty percent (50%) of the earnings of the
Company in any one of the last three fiscal years,  are disposed of, directly or
indirectly, by the Company (including stock or assets of a subsidiary(ies)) in a
sale, exchange, merger, reorganization or similar transaction.
 
     (f) "Code" shall mean the Internal Revenue Code of 1986, as amended.
 
     (g) "Committee" shall mean the Executive  Compensation  Committee appointed
by the Board in accordance with Section 5(a) hereof.
 
     (h) "Common Stock" shall mean the common stock,  par value $.125 per share,
of the Company.
 
     (i) "Company" shall mean Technitrol, Inc.
 
     (j)  "Continuous  Service"  shall mean the absence of any  interruption  or
termination of service as an Employee of the Company or a Designated Subsidiary.
Continuous Service shall not be considered interrupted in the case of a leave of
absence approved by the Company or by a Designated  Subsidiary,
 
 
<PAGE>
 
and in the case of transfers between payroll locations of the Company or between
the Company, a Designated Subsidiary or an Affiliate.
 
     (k) "Designated  Subsidiary"  shall mean any Affiliate of the Company which
has been designated by the Committee as eligible to participate in the Plan.
 
     (l) "Disability" shall mean a final written determination by the Company's,
or its  Designated  Subsidiary's,  as the  case  may  be,  long-term  disability
insurance carrier that the Participant is disabled.
 
     (m) "Effective Date" shall mean July 1, 2001.
 
     (n)  "Employee"  shall mean any person  classified  as an  employee  by the
Company or a Designated Subsidiary.
 
     (o)  "Exercise  Price" shall mean the price per Optioned  Share at which an
Option may be exercised.
 
     (p) "Market Value" shall mean the fair market value of the Common Stock, as
determined under Section 7(b) hereof.
 
     (q) "Non-employee  Director" shall mean any member of the Board who, at the
time discretion under the Plan is exercised, is a "Non-employee Director" within
the meaning of Rule 16b-3.
 
     (r) "Option" means an option to purchase Shares of Common Stock.
 
     (s)  "Optioned  Shares"  shall mean  Shares  subject  to an Option  granted
pursuant to this Plan.
 
     (t)  "Participant"  shall mean any person who receives an Award pursuant to
the Plan.
 
     (u) "Plan" shall mean this Technitrol, Inc. 2001 Stock Option Plan.
 
     (v) "Rule 16b-3" shall mean Rule 16b-3 of the General Rules and Regulations
under the Securities Exchange Act of 1934, as amended.
 
     (w) "Share" shall mean one share of Common Stock.
 
     (x) "Year of Service" shall mean a full twelve-month period,  measured from
the  date of an  Award  and  each  anniversary  of  that  date,  during  which a
Participant has not terminated Continuous Service for any reason.
 
     3.   TERM OF THE PLAN AND AWARDS.
 
     (a) Term of the Plan.  The Plan shall  continue in effect for a term of ten
         ----------------
years from the Effective Date, unless sooner  terminated  pursuant to Section 15
hereof.  No Awards  shall be  granted  under the Plan  after ten years  from the
Effective Date.
 
     (b) Term of Awards.  The term of each of the Awards  granted under the Plan
         --------------
shall be established by the Committee, but shall not exceed seven years.
 
     4.   SHARES SUBJECT TO THE PLAN.
 
     Shares  deliverable  pursuant to Awards may be (i)  authorized but unissued
Shares, (ii) Shares held in treasury, or (iii) Shares reacquired by the Company,
including  Shares  purchased on the open market.  If any Awards  should  expire,
become  unexercisable,  or be  forfeited  for any  reason  without  having  been
exercised,   the  Optioned  Shares  shall,  unless  the  Plan  shall  have  been
terminated, be available for the grant of additional Awards under the Plan.
 
                                       2
<PAGE>
 
     5.   ADMINISTRATION OF THE PLAN.
 
     (a)  Composition of the Committee.  The Plan shall be  administered  by the
          ----------------------------
Committee,  which  shall  consist of not less than two (2) members of the Board,
all of whom are Non-employee Directors.  Members of the Committee shall serve at
the  pleasure  of the  Board.  In the  absence  at any time of a duly  appointed
Committee,  the Plan shall be administered by those members of the Board who are
"disinterested persons," as defined in Rule 16b-3.
 
     (b) Powers of the Committee. Except as limited by the express provisions of
         -----------------------
the Plan or by resolutions  adopted by the Board,  the Committee shall have sole
and complete  authority  and  discretion  (i) to select  Participants  and grant
Awards,  (ii) to  determine  the form and content of Awards to be issued and the
form of  Agreements  under  the  Plan,  (iii) to  interpret  the  Plan,  (iv) to
prescribe, amend and rescind rules and regulations relating to the Plan, and (v)
to make all other  determinations  necessary or advisable for the administration
of the Plan.  The  Committee  shall have and may  exercise  such other power and
authority  as may be  delegated to it by the Board from time to time. A majority
of the entire  Committee shall  constitute a quorum and the action of a majority
of the  members  present at any  meeting at which a quorum is  present,  or acts
approved in writing or  electronically  by a majority of the Committee without a
meeting,  shall be deemed  the  action of the  Committee.  If there are only two
Committee members, they must act unanimously.
 
     (c)  Agreement.  Each Award shall be evidenced  by an Agreement  containing
          ---------
such  provisions as may be approved by the Committee.  Each such Agreement shall
constitute a binding contract between the Company and the Participant, and every
Participant,  upon acceptance of such Agreement, shall be bound by the terms and
restrictions of the Plan and of such Agreement. The terms of each such Agreement
shall be in  accordance  with the Plan,  but each  Agreement  may  include  such
additional  provisions  and  restrictions  determined by the  Committee,  in its
discretion,  provided that such additional  provisions and  restrictions are not
inconsistent with the terms of the Plan. In particular,  the Committee shall set
forth in each Agreement (i) the Exercise Price of an Option,  (ii) the number of
Shares subject to, and the expiration date of, the Award, (iii) the manner, time
and rate  (cumulative  or otherwise)  of exercise or vesting of such Award,  and
(iv) the  restrictions,  if any, to be placed  upon such  Award,  or upon Shares
which may be issued upon exercise of such Award.
 
     The  Chairman of the  Committee  and such other  Directors  and officers as
shall be designated by the Committee are hereby authorized to execute Agreements
on behalf of the Company and to cause them to be delivered to the  recipients of
Awards.
 
     (d) Effect of the Committee's Decisions. All decisions,  determinations and
         -----------------------------------
interpretations  of the Committee  shall be final and  conclusive on all persons
affected thereby.
 
     (e) Indemnification. In addition to such other rights of indemnification as
         ---------------
they may have, the members of the Committee  shall be indemnified by the Company
in connection with any claim,  action, suit or proceeding relating to any action
taken or  failure  to act  under  or in  connection  with the Plan or any  Award
granted hereunder to the full extent provided for under the Company's  governing
instruments with respect to the indemnification of Directors.
 
     6.   GRANT OF OPTIONS.
 
     Only  Employees  shall be eligible to receive  Awards.  In selecting  those
     -----------------------------------------------------
Employees  to whom Awards  will be granted  and the number of shares  covered by
such  Awards,   the  Committee   shall   consider  the   position,   duties  and
responsibilities of the eligible  Employees,  the value of their services to the
Company or its Designated Subsidiaries,  and any other factors the Committee may
deem relevant. In no event shall an Employee receive a grant of an Option during
any single  fiscal  year of the Company  for more than an  aggregate  of 250,000
shares  of  Common  Stock,  except in the case of  recruitment  of a new
 
                                       3
<PAGE>
 
senior executive in which case the grant may not exceed 500,000 shares of Common
Stock (subject, in either case, to adjustment as provided in Section 10).
 
     7.   EXERCISE PRICE FOR OPTIONS.
 
     (a) Limits on Committee  Discretion.  The Exercise  Price for each Optioned
         -------------------------------
Share as to any  particular  Option  shall not be less  than 100% of the  Market
Value of each such Optioned Share on the date of grant.
 
     (b) Standards for  Determining  Market Value. If the Common Stock is listed
         ----------------------------------------
on a national securities exchange on the date in question, then the Market Value
per Share shall be the closing price on such national securities exchange on the
date of grant of the Award.  If the Common Stock is traded  otherwise  than on a
national  securities  exchange on the date of grant,  then the Market  Value per
Share shall be the mean  between  the bid and asked  price on such date,  or, if
there is no bid and asked  price on such date,  then on the next prior  business
day on which there was a bid and asked price.  If no such bid and asked price is
available,  then the Market  Value per Share shall be its fair  market  value as
determined by the Committee, in its sole and absolute discretion.
 
     (c) No Repricing.  The  Committee  shall not have the authority to decrease
         ------------
the  Exercise  Price as to any  particular  Option  without the  approval of the
shareholders of the Company.
 
     8.   EXERCISE OF OPTIONS.
 
     (a) Vesting.  Except as otherwise  determined by the  Committee,  an Option
         -------
shall  become  exercisable  upon the  Participant's  completion  of each Year of
Service after the grant of an Award as follows:  twenty-five percent (25%) after
one  Year  of  Service;   fifty  percent  (50%)  after  two  Years  of  Service;
seventy-five percent (75%) after three Years of Service; and one hundred percent
(100%) after four Years of Service.  Notwithstanding the preceding sentence,  an
Option shall become one hundred  percent  (100%) vested upon  termination of the
Participant's service due to Disability, death or retirement at or after age 65.
An Option may not be exercised for a fractional  share.  The  Committee,  in its
discretion,  may  specify in an Award that the  vesting of Option  Shares  shall
accelerate  upon  the  attainment  by  the  Participant  of  certain  enumerated
performance  goals or other terms and  conditions  specified by the Committee in
the Agreement at the time of the Award. If a Participant elects to retire before
age  65  but  on or  after  his  "early  retirement  date",  as  defined  in the
Technitrol,  Inc.  Retirement  Plan,  or has his  employment  terminated  by the
Company, other than for Cause, as defined in Section 8(c)(1) below, prior to the
completion of four Years of Service after the grant of an Award, the Participant
shall be entitled to pro-rata  vesting,  based upon the number of months elapsed
since  the  grant  of such  Award to the date of the  Employee's  retirement  or
termination by the Company, divided by 48.
 
     (b) Procedure for Exercise.  A Participant may exercise an Option,  subject
         ----------------------
to provisions relative to its termination and limitations on its exercise,  only
by (1) written (or, if permitted by the Committee,  electronic) notice of intent
to exercise  the Option with  respect to a specified  number of Shares,  and (2)
payment to the Company  (contemporaneously with delivery of such notice) in cash
of  the  full  consideration  of the  Option  Shares  being  exercised  and  all
applicable  withholding  taxes. In addition,  if and to the extent authorized by
the Committee, a Participant exercising an Option may make all or any portion of
any  payment due to the  Company  upon  exercise of an Option by delivery of any
property (including  securities of the Company) other than cash, as long as such
property  constitutes valid consideration for the Option Shares under applicable
law.  The  Committee  may,  but need  not,  permit  the  payment  of  applicable
withholding  taxes due upon  exercise of an Option,  up to the highest  marginal
rates then in effect,  by the  withholding  of Shares  otherwise  issuable  upon
exercise of the Option. Option Shares withheld in payment of such taxes shall be
valued at the Market  Value of the  Common  Stock on the date of  exercise.  The
Committee may impose special restrictions on the use of Option Shares as payment
for withholding taxes by individuals subject to Section 16 of the Act.
 
                                       4
<PAGE>
 
     (c) Period of  Exercisability.  Except to the extent otherwise  provided in
         -------------------------
the terms of an Agreement,  or as determined by the Committee,  an Option may be
exercised,  to the extent vested,  by a Participant only while he is an Employee
and has maintained  Continuous Service from the date of the grant of the Option,
or within 60 days after  termination of such  Continuous  Service (but not later
than the  date on which  the  Option  would  otherwise  expire),  except  if the
Employee's Continuous Service terminates by reason of -
 
          (1) Cause,  which for purposes hereof shall have the meaning set forth
     in any unexpired  employment or severance agreement between the Participant
     and the Company or  Designated  Subsidiary  (and in the absence of any such
     agreement, shall mean (A) the continued and willful failure of the Employee
     to follow the lawful orders of his/her  direct  superior,  (B) violation by
     the  Employee  of a  published  rule  or  regulation  of the  Company  or a
     provision of the Company's  Statement of Principles (in effect from time to
     time) or (C)  conviction  of a crime which  renders the Employee  unable to
     perform his/her duties effectively; provided that in the case of(A) or (B),
     the  Company  shall  give the  Employee  written  notice  of the  action or
     omission  which the Company  believes to constitute  cause and the Employee
     shall have 30 calendar days to cure such action or omission.  Determination
     of "cause" by the Committee shall be final and binding on all parties.  The
     Participant's  rights to exercise  such Option  shall expire on the date of
     such termination;
 
          (2) Death, in which case, such Option of the deceased  Participant may
     be  exercised  within six months  from the date of his death (but not later
     than the date on which the Option would  otherwise  expire) by the personal
     representatives  of his estate, a duly established trust for the benefit of
     the participant's  spouse,  lineal ascendants or descendants,  or person or
     persons to whom his rights  under such Option  shall have passed by will or
     by laws of descent and distribution;
 
          (3) Disability, in which case, such Option may be exercised within one
     year from the date of termination of employment due to Disability,  but not
     later than the date on which the Option would otherwise expire.
 
          (4) Retirement on or after the "early  retirement  age", as defined in
     the  Technitrol,  Inc,  Retirement  Plan,  in which case such Option may be
     exercised within two years from the date on which the Participant  retires,
     but not later than the date on which the Option would otherwise expire.
 
     (d) Effect of the  Committee's  Decisions.  The  Committee's  determination
         -------------------------------------
whether  a   Participant's   Continuous   Service   has  ceased  (or  whether  a
Participant's  service has been  terminated  for cause),  and the effective date
thereof, shall be final and conclusive on all persons affected thereby.
 
     9.   CHANGE IN CONTROL
 
     Notwithstanding the provisions of any Award which provides for its exercise
or vesting in installments or upon  attainment of performance  criteria,  upon a
Change in  Control,  all  Options  shall be  immediately  exercisable  and fully
vested. In the event of a Change in Control, at the discretion of the Committee,
a  Participant  may receive  cash in an amount equal to the excess of the Market
Value of the Common Stock subject to such Option over the Exercise Price of such
Shares, in exchange for the cancellation of such Options by the Participant.
 
     10.  EFFECT OF CHANGES IN COMMON STOCK SUBJECT TO THE PLAN.
 
     (a)  Recapitalizations;  Stock  Splits,  Etc. The number and kind of shares
          ---------------------------------------
reserved for issuance  under the Plan, and the number and kind of shares subject
to outstanding Awards, and the Exercise Price thereof,  shall be proportionately
adjusted  for any  increase,  decrease,  change  or  exchange  of  Shares  for a
 
                                       5
<PAGE>
 
different  number or kind of shares or other  securities  of the  Company  which
results  from  a  merger,   consolidation,   recapitalization,   reorganization,
reclassification,  stock dividend,  split-up,  combination of shares, or similar
event in which the number or kind of shares is changed  without  the  receipt or
payment of consideration by the Company.
 
     (b) Transactions in which the Company is Not the Surviving  Entity.  In the
         --------------------------------------------------------------
event of (i) the  liquidation or  dissolution  of the Company,  (ii) a merger or
consolidation  in which the Company is not the  surviving  entity,  or (iii) the
sale or disposition of all or substantially  all of the Company's assets (any of
the  foregoing  to be referred to herein as a  "Transaction"),  all  outstanding
Awards,  together with the Exercise Prices thereof,  shall be equitably adjusted
for any change or exchange of Shares for a different number or kind of shares or
other securities which results from the Transaction.
 
     (c) Conditions and Restrictions on New, Additional,  or Different Shares or
         -----------------------------------------------------------------------
Securities.  If, by reason of any  adjustment  made pursuant to this Section,  a
----------
Participant becomes entitled to new, additional, or different shares of stock or
securities,  such new,  additional,  or different  shares of stock or securities
shall thereupon be subject to all of the conditions and restrictions  which were
applicable to the Shares pursuant to the Award before the adjustment was made.
 
     (d) Other  Issuances.  Except as expressly  provided in this  Section,  the
         ----------------
issuance by the Company or an Affiliate  of shares of stock of any class,  or of
securities  convertible  into  Shares  or stock of  another  class,  for cash or
property or for labor or services  either upon direct sale or upon the  exercise
of rights or warrants to subscribe therefor, shall not affect, and no adjustment
shall be made with respect to, the number,  class,  or Exercise  Price of Shares
then subject to Awards or reserved for issuance under the Plan.
 
     11.  NON-TRANSFERABILITY OF AWARDS.
 
     Awards may not be sold,  pledged,  assigned,  hypothecated,  transferred or
disposed  of in any  manner  other  than by will or by the laws of  descent  and
distribution (and in the case of will,  descent or distribution,  solely to give
effect  to  the  provisions  of  Section  8(c)(2)  above).  Notwithstanding  the
foregoing,  or  any  other  provision  of  this  Plan,  the  Committee,  in  its
discretion,  may permit an Optionee  to  transfer  Options to his or her spouse,
lineal ascendants,  lineal  descendants,  or to a duly established trust for the
benefit  of one or  more  of  these  individuals.  Options  so  transferred  may
thereafter be transferred, subject to the approval of the Committee, only to the
Optionee who originally  received the grant or to an individual or trust to whom
the  Optionee  could have  initially  transferred  the Option  pursuant  to this
Section.  Options  which  are  transferred  pursuant  to this  Section  shall be
exercisable  by the  transferee  according to the same terms and  conditions  as
applied to the Optionee.
 
     12.  TIME OF GRANTING AWARDS.
 
     The date of grant of an Award shall, for all purposes,  be the later of the
date on which the Committee  makes the  determination  of granting such Award or
the  Effective  Date.  Notice  of the  determination  shall  be  given  to  each
Participant  to whom an Award is so granted  within a reasonable  time after the
date of such grant.
 
     13.  EFFECTIVE DATE.
 
     The Plan shall become effective as of July 1, 2001.
 
     14.  MODIFICATION OF AWARDS.
 
     At any time,  and from time to time,  the Board may authorize the Committee
to direct  execution of an  instrument  providing  for the  modification  of any
outstanding  Award,  provided no such modification shall confer on the holder of
said Award any right or benefit which could not be conferred on him by the grant
of a new Award at such time,  or impair  the Award  without  the  consent of the
holder of the Award.
 
                                       6
<PAGE>
 
     15.  AMENDMENT AND TERMINATION OF THE PLAN.
 
     The  Board may from  time to time  amend  the  terms of the Plan and,  with
respect to any Shares at the time not  subject to Awards,  suspend or  terminate
the Plan;  provided,  however, the Committee may seek shareholder approval of an
amendment if it is determined to be required by or advisable  under  regulations
of the  Securities and Exchange  Commission,  the rules of any stock exchange on
which the Company's stock is listed or other applicable law or regulation.
 
     No amendment,  suspension  or  termination  of the Plan shall,  without the
consent  of any  affected  holders  of an Award,  alter or impair  any rights or
obligations under any Award theretofore granted.
 
     16.  CONDITIONS UPON ISSUANCE OF SHARES.
 
     (a) Compliance  with Securities  Laws.  Shares of Common Stock shall not be
         ---------------------------------
issued with respect to any Award unless the issuance and delivery of such Shares
shall comply with all relevant provisions of law, including, without limitation,
the Securities Act of 1933, as amended,  the rules and  regulations  promulgated
thereunder,  any applicable  state  securities law, and the  requirements of any
stock exchange upon which the Shares may then be listed.
 
     (b) Special Circumstances.  The inability of the Company to obtain approval
         ---------------------
from any  regulatory  body or authority  deemed by the  Company's  counsel to be
necessary to the lawful issuance and sale of any Shares  hereunder shall relieve
the  Company of any  liability  in respect of the  non-issuance  or sale of such
Shares. As a condition to the exercise of an Option, the Company may require the
person exercising the Option to make such  representations and warranties as may
be necessary to assure the  availability  of an exemption from the  registration
requirements of federal or state securities law.
 
     (c)  Committee  Discretion.  The  Committee  shall  have the  discretionary
          ---------------------
authority to impose in  Agreements  such  restrictions  on Shares as it may deem
appropriate or desirable, including but not limited to the authority to impose a
right  of first  refusal  or to  establish  repurchase  rights  or both of these
restrictions.
 
     17.  RESERVATION OF SHARES.
 
     The Company, during the term of the Plan, will reserve and keep available a
number of Shares sufficient to satisfy the requirements of the Plan.
 
     18.  WITHHOLDING TAX.
 
     The Company's  obligation to deliver  Shares upon exercise of Options shall
be subject to the Participant's  satisfaction of all applicable  federal,  state
and local income and employment tax withholding  obligations.  The amount of the
withholding requirement shall be the applicable statutory minimum federal, state
or local income tax with respect to the award on the date that the amount of tax
is to be withheld.
 
     19.  NO EMPLOYMENT OR OTHER RIGHTS.
 
     In no event shall an Employee's eligibility to participate or participation
in the Plan  create or be deemed to create any legal or  equitable  right of the
Employee to continue service with the Company, a Designated  Subsidiary,  or any
Affiliate of such corporations.  No Employee shall have a right to be granted an
Award or,  having  received  an Award,  the right to again be  granted an Award.
However,  an Employee who has been granted an Award may, if otherwise  eligible,
be granted an additional Award or Awards.
 
                                       7
<PAGE>
 
     20.  GOVERNING LAW.
 
     The Plan shall be governed by and construed in accordance  with the laws of
the Commonwealth of Pennsylvania, except to the extent that federal law shall be
deemed to apply.
 
 
 
                                       8
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