COLUMBUS MCKINNON CORPORATION AMENDED AND RESTATED
                        1995 INCENTIVE STOCK OPTION PLAN
                           ---------------------------
 
 
         WHEREAS,  Columbus  McKinnon  Corporation,  a New York corporation with
offices at 140 John James Audubon Parkway, Amherst, New York (the "Company") has
adopted  an  incentive  stock  option  plan  known  as  the  Columbus   McKinnon
Corporation  1995 Incentive  Stock Option Plan (the "Original  Plan") on October
27,  1995  to  enable  the  Company  to  attract  and  retain  highly  qualified
individuals  as officers  and key  employees  of the Company by  providing  such
officers and key employees an equity based form of incentive compensation; and
 
         WHEREAS, the Company desires to amend and restate the Original Plan;
 
         NOW,  THEREFORE,  the  Company  hereby  adopts  the  following  as  the
Amendment and Restatement of the Columbus  McKinnon  Corporation  1995 Incentive
Stock Option Plan effective as of June 16, 1999:
 
 
         1.  PURPOSE OF PLAN.  The  Columbus  McKinnon  Corporation  Amended and
Restated  1995  Incentive  Stock Option Plan (the "Plan") is intended to provide
officers  and other key  employees  of the  Company and  officers  and other key
employees of any  subsidiaries of the Company as that term is defined in Section
3 below (hereinafter individually referred to as a "Subsidiary" and collectively
as "Subsidiaries")  with an additional incentive for them to promote the success
of the business,  to increase their  proprietary  interest in the success of the
Company and its  Subsidiaries,  and to encourage them to remain in the employ of
the Company or its Subsidiaries.  The above aims will be effectuated through the
granting of certain stock  options,  as herein  provided,  which are intended to
qualify as Incentive  Stock Options  ("ISOs")  under Section 422 of the Internal
Revenue Code of 1986, as the same has been and shall be amended ("Code").
 
         2.  ADMINISTRATION.  The Plan shall be administered by a Committee (the
"Committee")  composed  of not less than two (2)  Directors  of the  Company who
shall be appointed by and serve at the pleasure of the Board of Directors of the
Company. Any Director that serves as a member of the Committee shall not receive
or be eligible to receive a grant of an option or any other  equity  security of
the  Company or any  Subsidiary  under this Plan during the period of his or her
 
<PAGE>
 
service as a member of the Committee and during the one year period prior to his
or her service as a member of the Committee. If the Committee is composed of two
(2) Directors, both members of the Committee must approve any action to be taken
by the  Committee  in order for such  action to be deemed to be an action of the
Committee  pursuant to the provisions of this Plan. If the Committee is composed
of more than two (2) Directors,  a majority of the Committee shall  constitute a
quorum for the conduct of its business,  and (a) the action of a majority of the
Committee  members  present at any meeting at which a quorum is present,  or (b)
action  taken  without a meeting by the approval in writing of a majority of the
Committee members, shall be deemed to be action by the Committee pursuant to the
provisions  of the Plan.  The  Committee is  authorized  to adopt such rules and
regulations for the  administration  of the Plan and the conduct of its business
as it may deem necessary or proper.
 
                  Any action taken or interpretation made by the Committee under
any provision of the Plan or any option granted hereunder shall be in accordance
with  the  provisions  of the  Code,  and the  regulations  and  rulings  issued
thereunder as such may be amended, promulgated,  issued, renumbered or continued
from time to time hereafter in order that, to the greatest extent possible,  the
options granted hereunder shall constitute  "incentive stock options" within the
meaning of the Code.  All action taken pursuant to this Plan shall be lawful and
with a view to  obtaining  for the  Company  and the option  holder the  maximum
advantages  under the law as then  obtaining,  and in the event that any dispute
shall arise as to any action taken or interpretation made by the Committee under
any  provision  of the Plan,  then all doubts shall be resolved in favor of such
having  been  done in  accordance  with the said  Code  and such  revenue  laws,
amendments,  regulations,  rulings and provisions as may then be applicable. Any
action taken or interpretation  made by the Committee under any provision of the
Plan shall be final.  No member of the Board of Directors or the Committee shall
be liable for any action,  determination or  interpretation  taken or made under
any provision of the Plan or otherwise if done in good faith.
 
         3. PARTICIPATION. The Committee shall determine from among the officers
and key employees of the Company and its  Subsidiaries  (as such term is defined
in Section 424 of the Code) those  individuals  to whom options shall be granted
(sometimes hereinafter referred to as "Optionees"),  the terms and provisions of
the options  granted (which need not be  identical),  the time or times at which
 
<PAGE>
 
options shall be granted and the number of shares of the Company's common stock,
$.01 par value per share (hereinafter "Common Stock"), (or such number of shares
of stock in which the Common Stock may at any time  hereafter  be  constituted),
for which options are granted.
 
                  In selecting Optionees and in determining the number of shares
for which  options  are  granted,  the  Committee  may weigh  and  consider  the
following  factors:  the office or  position of the  Optionee  and his degree of
responsibility  for the growth and success of the Company and its  Subsidiaries,
length of service,  remuneration,  promotions,  age and potential. The foregoing
factors  shall  not  be  considered  to be  exclusive  or  obligatory  upon  the
Committee, and the Committee may properly consider any other factors which to it
seems  appropriate.  The terms  and  conditions  of any  option  granted  by the
Committee under this Plan shall be contained in a written  statement which shall
be delivered by the Committee to the Optionee as soon as  practicable  following
the Committee's establishment of the terms and conditions of such option.
 
                  An Optionee  who has been granted an option under the Plan may
be  granted  additional  options  under  the  Plan  if the  Committee  shall  so
determine.
 
                  Notwithstanding the foregoing, if during the twelve (12) month
period  following the effective  date of this  amendment  and  restatement,  any
options are granted to  employees  of the Company  that are also  members of the
Board of Directors of the Company and if this  amendment and  restatement is not
approved  by the  shareholders  of the  Company  during  such  twelve (12) month
period,  any  options  granted  to any  employees  that are also  members of the
Company's  Board of  Directors  shall  continue  to be binding  upon the Company
according to their terms but shall not be deemed to be "incentive stock options"
as defined in Section 422(b) of the Code. In addition,  if at the time an option
is granted to an individual  under this Plan, the  individual  owns stock of the
Company  possessing  more than ten percent  (10%) of the total  combined  voting
power of all classes of stock of the Company or any of its Subsidiaries,  (or if
such  individual  would be deemed to own such  percentage  of such  stock  under
Section  424(d) of the Code) such option shall  continue to be valid and binding
upon the  Company  according  to its  terms  but  shall  not be  deemed to be an
"incentive  stock option" as defined in Section  422(b) of the Code unless:  (a)
the price per share at which  common  stock of the  Company  may be  acquired in
connection  with the  exercise of such  options is not less than one hundred ten
 
<PAGE>
 
percent  (110%) of the fair market value of such common stock,  determined as of
the date of the grant of such  options;  and (b) the period of time within which
such options  must be exercised  does not exceed five (5) years from the date on
which such  options  are  granted.  Finally,  in no event  shall any  options be
granted under this Plan at any time after the termination  date set forth at the
end of this Plan.
 
         4. SHARES SUBJECT TO THE PLAN. The aggregate number of shares of Common
Stock which have been  reserved  for  issuance  pursuant to the terms of options
granted pursuant to the terms of this Plan and the aggregate number of shares of
Common  Stock  which the  Company is  authorized  to issue  pursuant  to options
granted   pursuant  to  the  terms  of  this  Plan  is  1,250,000,   subject  to
anti-dilutive  adjustments,  if any,  made at any time after  October 27,  1995,
pursuant to the provisions of Section 5 hereof. With respect to shares which may
be  acquired  pursuant  to options  which  expire or  terminate  pursuant to the
provisions of this Plan without having been exercised in full, such shares shall
be  considered  to be  available  again  for  placement  under  options  granted
thereafter  under the Plan.  Shares issued pursuant to the exercise of incentive
stock options granted under the Plan shall be fully paid and non-assessable.
 
         5. ANTI-DILUTION  PROVISIONS.  The aggregate number of shares of Common
Stock and the class of such shares as to which  options may be granted under the
Plan,  the number and class of such shares subject to each  outstanding  option,
the price per share  thereof (but not the total  price),  and the number of such
shares  as to which an option  may be  exercised  at any one time,  shall all be
adjusted proportionately in the event of any change, increase or decrease in the
outstanding   shares  of  Common   Stock  of  the   Company  or  any  change  in
classification  of its Common  Stock  without  receipt of  consideration  by the
Company which results either from a split-up,  reverse split or consolidation of
shares, payment of a stock dividend, recapitalization, reclassification or other
like capital  adjustment so that upon exercise of the option, the Optionee shall
receive the number and class of shares that he would have  received  had he been
the holder of the number of shares of Common Stock for which the option is being
exercised  immediately  preceding  such  change,  increase  or  decrease  in the
outstanding  shares of Common Stock.  Any such  adjustment made by the Committee
shall be final  and  binding  upon all  Optionees,  the  Company,  and all other
interested  persons.  Any  adjustment  of an  incentive  stock option under this
paragraph  shall be made in such manner as not to  constitute  a  "modification"
 
<PAGE>
 
within the meaning of Section 424(h)(3) of the Code.
 
                  Anything in this Section 5 to the contrary notwithstanding, no
fractional  shares or scrip  representative of fractional shares shall be issued
upon the exercise of any option.  Any fractional  share interest  resulting from
any change,  increase or decrease in the  outstanding  shares of Common Stock or
resulting from any reorganization, merger, or consolidation for which adjustment
is  provided in this  Section 5 shall  disappear  and be absorbed  into the next
lowest  number of whole  shares,  and the  Company  shall not be liable  for any
payment for such fractional  share interest to the Optionee upon his exercise of
the option.
 
         6. OPTION  PRICE.  The  purchase  price for each share of Common  Stock
which may be acquired  upon the  exercise of each option  issued  under the Plan
shall be determined  by the Committee at the time the option is granted,  but in
no event shall such purchase  price be less than one hundred  percent  (100%) of
the  fair  market  value  of  the  Common  Stock  on  the  date  of  the  grant.
Notwithstanding  the foregoing,  in the case of an individual that owns stock of
the Company  possessing more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or any of its  Subsidiaries  (or if
such  individual  would be deemed to own such  percentage  of such  stock  under
Section 424 (d) of the Code), (any such individual being hereinafter referred to
as a "Ten Percent  Shareholder")  in no event shall the purchase  price for each
share of Common  Stock  which may be acquired  upon the  exercise of each option
issued to such Ten  Percent  Shareholder  be less than one  hundred  ten percent
(110%) of the fair market value of the Common Stock on the date of the grant. If
the Common Stock is listed upon an  established  stock  exchange or exchanges on
the day the option is granted,  such fair market value shall be deemed to be the
closing price of the Common Stock on such stock exchange or exchanges on the day
the option is granted,  or if no sale of the  Company's  Common Stock shall have
been made on any stock  exchange on that day, on the next preceding day on which
there was a sale of such stock.
 
                  If the Common  Stock is listed in the NASDAQ  National  Market
System,  the fair market  value of the Common  Stock shall be the average of the
high and low closing sale prices in the NASDAQ National Market System on the day
the option is granted, or if no sale of the Common Stock shall have been made on
the NASDAQ  National  Market  System on that day, on the next  preceding  day on
which there was a sale of such stock.
 
<PAGE>
 
         7. OPTION  EXERCISE  PERIODS.  The time within which any option granted
hereunder may be exercised shall be, by its terms, not earlier than one (1) year
from the date such  option is granted and not later than ten (10) years from the
date such option is granted;  provided that, in the case of any options  granted
to a Ten Percent  Shareholder,  the time within which any option granted to such
Ten Percent  Shareholder  may be exercised  shall be, by its terms,  not earlier
than one (1) year from the date such  option is granted  and not later than five
(5) years from the date such option is  granted.  Subject to the  provisions  of
Section 10 hereof, the Optionee must remain in the continuous  employment of the
Company or any of its  Subsidiaries  from the date of the grant of the option to
and including the date of exercise of option in order to be entitled to exercise
his option.  Options granted hereunder shall be exercisable in such installments
and at such dates as the Committee may specify. In addition, with respect to all
options granted under this Plan,  unless the Committee shall specify  otherwise,
the right of each Optionee to exercise his option shall accrue,  on a cumulative
basis, as follows:
 
                  (a)  one-fourth  (1/4) of the total number of shares of Common
Stock which could be purchased  (subject to  adjustment as provided in Section 5
hereof) (such number being  hereinafter  referred to as the  "Optioned  Shares")
shall become available for purchase pursuant to the option at the end of the one
(1) year period beginning on the date of the option grant;
 
                  (b)  one-fourth  (1/4) of the  Optioned  Shares  shall  become
available  for  purchase  pursuant  to the option at the end of the two (2) year
period beginning on the date of the option grant;
 
                  (c)  one-fourth  (1/4) of the  Optioned  Shares  shall  become
available  for purchase  pursuant to the option at the end of the three (3) year
period beginning on the date of the option grant; and
 
                  (d)  one-fourth  (1/4) of the  Optioned  Shares  shall  become
available  for  purchase  pursuant to the option at the end of the four (4) year
period beginning on the date of the option grant.
 
                  Continuous employment shall not be deemed to be interrupted by
transfers  between the  Subsidiaries  or between the Company and any Subsidiary,
whether or not elected by  termination  from any  Subsidiary  of the Company and
 
<PAGE>
 
re-employment  by any other  Subsidiary or the Company.  Time of employment with
the Company shall be considered  to be one  employment  for the purposes of this
Plan,  provided  there  is no  intervening  employment  by a third  party  or no
interval between  employments which, in the opinion of the Committee,  is deemed
to  break  continuity  of  service.  The  Committee  shall,  at its  discretion,
determine the effect of approved  leaves of absence and all other matters having
to do with "continuous employment". Where an Optionee dies while employed by the
Company or any of its Subsidiaries,  his options may be exercised  following his
death in accordance with the provisions of Section 10 below.
 
                  Notwithstanding the foregoing provisions of this Section 7, in
the event that the  Company or the  stockholders  of the  Company  enter into an
agreement to dispose of all or  substantially  all of the assets or stock of the
Company by means of a sale, merger, consolidation,  reorganization, liquidation,
or otherwise, or in the event a Change of Control (as hereinafter defined) shall
occur, each outstanding option shall become immediately exercisable with respect
to the full number of shares subject to that option and shall remain exercisable
until the  expiration  of the original  term of the option.  The  Committee  may
provide in connection with such transaction for assumption of options previously
granted  or the  substitution  for such  options  of new  options  covering  the
securities of a successor  corporation or an affiliate thereof, with appropriate
adjustments as to the number and kind of securities and prices.
 
                  For  purposes  of this Plan,  a "Change in  Control"  shall be
deemed to have occurred if:
 
                  (a)  there  shall be  consummated:  (i) any  consolidation  or
merger of the Company in which the Company is not the  continuing  or  surviving
corporation  or pursuant to which shares of the Company's  common stock would be
converted into cash,  securities or other  property,  other than a merger of the
Company in which the holders of the Company's common stock  immediately prior to
the  merger  have  the  same  proportionate  ownership  of  common  stock of the
surviving  corporation  immediately  after the merger;  or (ii) any sale, lease,
exchange  or  other  transfer  (in  one  transaction  or  a  series  of  related
transactions) of all, or substantially all, of the assets of the Company; or
 
                  (b)  the  stockholders  of the  Company  approve  any  plan or
proposal for the liquidation or dissolution of the Company; or
 
<PAGE>
 
                  (c) any  person  (as such term is used in  Sections  13(d) and
14(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")
but  excluding  the Company and each of the  Company's  officers and  directors,
whether individually or collectively), shall become the beneficial owner (within
the meaning of 13d-3  under the  Exchange  Act) of 20% or more of the  Company's
outstanding common stock; or
 
                  (d)  during  any   period  of  two  (2)   consecutive   years,
individuals  who at the beginning of such period  constitute the entire Board of
Directors  of the Company  shall cease for any reason to  constitute  a majority
thereof  unless the election,  or the  nomination  for election by the Company's
shareholders,  of each new director was approved by a vote of a least two-thirds
of the directors then still in office who were directors at the beginning of the
period.
 
                  Any change or  adjustment  made  pursuant to the terms of this
paragraph   shall  be  made  in  such  a  manner  so  as  not  to  constitute  a
"modification" as defined in Section 424 of the Code, and so as not to cause any
incentive  stock option issued under this Plan to fail to continue to qualify as
an  incentive   stock  option  as  defined  in  Section   422(b)  of  the  Code.
Notwithstanding the foregoing, in the event that any agreement providing for the
sale or other disposition of all or substantially all the stock or assets of the
Company shall be terminated  without  consummating the disposition of said stock
or assets,  any unexercised  unaccrued  installments that had become exercisable
solely  by  reason  of the  provisions  of this  paragraph  shall  again  become
unaccrued and  unexercisable as of said termination of such agreement;  subject,
however,  to such installments  accruing pursuant to the normal accrual schedule
provided in the terms under which such option was  granted.  Any  exercise of an
installment  prior to said  termination of said agreement shall remain effective
despite the fact that such installment  became  exercisable  solely by reason of
the Company or its  stockholders  entering into said agreement to dispose of the
stock or assets of the Company.
 
         8. EXERCISE OF OPTION. Options shall be exercised as follows:
 
                  (a)  Notice  and  Payment.  Each  option,  or any  installment
thereof,  shall be  exercised,  whether in whole or in part,  by giving  written
notice to the Company at its  principal  office,  specifying  the options  being
exercised (by  reference to the date of the grant of the option),  the number of
 
<PAGE>
 
shares  to be  purchased  and the  purchase  price  being  paid,  and  shall  be
accompanied by the payment of all or such part of the purchase price as shall be
required to be paid in connection with the exercise of such option (as specified
in the written notice of exercise of such option) (i) in cash, certified or bank
check payable to the order of the Company, (ii) by tendering (either actually or
by attestation) shares (or a sufficient portion thereof) valued as determined by
the  Committee at the time of exercise,  (iii) by  authorizing  a third party to
sell shares (or a  sufficient  portion  thereof)  acquired  upon  exercise of an
option and to remit to the Company a sufficient  portion of the sale proceeds to
pay for all the shares  acquired  through such  exercise and any  resulting  tax
withholding obligations or (iv) by any other method prescribed by the Committee.
Each such notice shall contain representations on behalf of the Optionee that he
acknowledges  that the Company is selling the shares being acquired by him under
a claim of  exemption  from  registration  under the  Securities  Act of 1933 as
amended (the "Act"), as a transaction not involving any public offering; that he
represents  and  warrants  that  he is  acquiring  such  shares  with a view  to
"investment"  and not with a view to distribution or resale;  and that he agrees
not to transfer,  encumber or dispose of the shares  unless:  (i) a registration
statement with respect to the shares shall be effective under the Act,  together
with proof  satisfactory  to the  Company  that there has been  compliance  with
applicable  state law;  or (ii) the  Company  shall have  received an opinion of
counsel in form and content  satisfactory  to the Company to the effect that the
transfer  qualifies  under  Rule 144 or some  other  disclosure  exemption  from
registration  and that no violation of the Act or applicable  state laws will be
involved  in such  transfer,  and/or  such  other  documentation  in  connection
therewith as the Company's counsel may in its sole discretion require.
 
                  (b) Issuance of  Certificates.  Certificates  representing the
shares  purchased by the Optionee shall be issued as soon as  practicable  after
the Optionee has complied with the provisions of Section 8(a) hereof.
 
                  (c) Rights as a Stockholder. The Optionee shall have no rights
as a stockholder  with respect to the shares of Common Stock purchased until the
date of the issuance to him of a certificate representing such shares.
 
         9. ASSIGNMENT OF OPTION. (a) Subject to the provisions of Sections 9(b)
and  10(c)  hereof,  options  granted  under  this  Plan  may  not  be  assigned
 
<PAGE>
 
voluntarily or involuntarily or by operation of law and any attempt to transfer,
assign, pledge, hypothecate or otherwise dispose of, or to subject to execution,
attachment  or  similar  process,  any  incentive  stock  option,  or any  right
thereunder,  contrary to the  provisions  hereof shall be void and  ineffective,
shall  give no  right  to the  purported  transferee,  and  shall,  at the  sole
discretion of the Committee,  result in forfeiture of the option with respect to
the shares involved in such attempt.
 
                  (b) Notwithstanding  anything to the contrary contained in the
terms  of the  Plan as in  effect  at any time  prior  to the  date  hereof  and
notwithstanding  anything  to  the  contrary  contained  in  the  terms  of  any
statement,  letter or other  document or agreement  setting  forth the terms and
conditions of any options  previously issued pursuant to the terms of this Plan,
any and all Non-Qualified  Options (as defined in Section 13 hereof)  previously
issued to any officer of the Company (as defined in Rule  16A-a(f)  issued under
the Securities and Exchange Act of 1934  (hereinafter  an "Executive  Officer"))
pursuant to the terms of the Plan and, subject to the approval of the Committee,
any  Non-Qualified  Options  which may be  granted  or  issued to any  Executive
Officer of the  Company at any time in the future  pursuant  to the terms of the
Plan shall be transferable by the Executive  Officer to whom such  Non-Qualified
Options have been or are granted to: (i) the spouse,  children or  grandchildren
of the Executive Officer (hereinafter "Immediate Family Members");  (ii) a trust
or trusts for the exclusive  benefit of such Immediate  Family Members;  (iii) a
partnership or limited  liability company in which such Immediate Family Members
are the only partners or members;  or (iv) a private  foundation  established by
the Executive Officer;  provided that: (x) there may be no consideration for any
such transfer;  (y) in the case of Non-Qualified Options which may be granted in
the future,  the statement,  letter or other document or agreement setting forth
the  terms and  conditions  of any such  Non-Qualified  Options  must  expressly
provide  for and limit the  transferability  of such  Non-Qualified  Options  to
transfers which are permitted by the foregoing  provisions of this Section 9(b);
and (z) any  subsequent  transfer of  transferred  Non-Qualified  Options shall,
except for  transfers  occurring as a result of the death of the  transferee  as
contemplated  by Section  10(e),  be  prohibited.  Following the transfer of any
Non-Qualified  Options as permitted by the foregoing  provisions of this Section
9(b), any such transferred Non-Qualified Options shall continue to be subject to
the  same  terms  and  conditions   applicable  to  such  Non-Qualified  Options
immediately prior to the transfer; provided that, for purposes of this Plan, the
 
 
<PAGE>
 
term "Optionee" shall be deemed to refer to the transferee.  Notwithstanding the
foregoing,  the events of  termination  of employment of Section 10 hereof shall
continue to be applied with respect to the original  Optionee for the purpose of
determining whether or not the Non-Qualified Options shall be exercisable by the
transferee  and, upon  termination of the original  Optionee's  employment,  the
Non-Qualified  Options shall be exercisable by the transferee only to the extent
and for the periods that the original  Optionee (or his estate)  would have been
entitled to exercise such Options as specified in Section 10 below.
 
         10. EFFECT OF TERMINATION OF  EMPLOYMENT,  DEATH OR DISABILITY.  (a) In
the event that an Optionee's  employment  with the Company or the  Subsidiary by
whom the  Optionee  was  employed  is  terminated  either  by reason  of:  (i) a
discharge  for cause;  (ii)  voluntary  separation  on the part of the  Optionee
(other than any  termination of employment by the Optionee which  qualifies as a
termination  for  "Good  Reason"  pursuant  to the  terms of a letter  agreement
between the Optionee and the Company (a "Good Reason  Termination")) and without
consent of the Company or the Subsidiary by whom the Optionee was employed,  any
rights of the Optionee to purchase  shares of Common Stock pursuant to the terms
of any  option or  options  granted  to him  under  this  Plan  shall  terminate
immediately  upon such termination of employment to the extent such options have
not theretofore been exercised by him.
 
                  (b) In  the  event  of the  termination  of  employment  of an
Optionee (otherwise than by reason of death or retirement of the Optionee at his
Retirement  Date) by the  Company or by any of the  Subsidiaries  employing  the
Optionee at such time or pursuant  to a Good Reason  Termination,  any option or
options  granted to him under the Plan to the extent not  theretofore  exercised
shall be deemed cancelled and terminated forthwith,  except that, subject to the
provisions of subparagraph  (a) of this Section,  such Optionee may exercise any
options theretofore granted to him, which have not then expired and which, as of
the  date the  Optionee's  employment  with  the  Company  is  terminated,  were
otherwise  exercisable  within the provisions of Section 7 hereof,  within three
 
<PAGE>
 
(3) months after such  termination.  If the  employment of an Optionee  shall be
terminated by reason of the Optionee's  retirement at his Retirement Date by the
Company or by any of the  Subsidiaries  employing the Optionee at such time, the
Optionee  shall have the right to exercise such option or options held by him to
the extent that such  options  have not  expired,  at any time within  three (3)
months  after such  retirement.  The  provisions  of  Section 7 to the  contrary
notwithstanding,  upon  retirement,  all options  held by an  Optionee  shall be
immediately  exercisable in full. The transfer of an Optionee from the employ of
the Company to a Subsidiary of the Company or vice versa, or from one Subsidiary
of the Company to another,  shall not be deemed to constitute a  termination  of
employment for purposes of this Plan.
 
                  (c) In the event that an Optionee  shall die while employed by
the Company or by any of the  Subsidiaries  or shall die within three (3) months
after  retirement on his Retirement  Date (from the Company or any  Subsidiary),
any  option  or  options  granted  to him under  this  Plan and not  theretofore
exercised by him or expired shall be  exercisable  by the estate of the Optionee
or by any person who  acquired  such option by bequest or  inheritance  from the
Optionee in full,  notwithstanding  the  provisions of Section 7 hereof,  at any
time  within one (1) year  after the death of the  Optionee.  References  herein
above to the Optionee shall be deemed to include any person entitled to exercise
the option after the death of the Optionee under the terms of this Section.
 
                  (d) In  the  event  of the  termination  of  employment  of an
Optionee by reason of the  Optionees'  disability,  the Optionee  shall have the
right,  notwithstanding  the  provisions  of Section 7 hereof,  to exercise  all
options  held by him,  in  full,  to the  extent  that  such  options  have  not
previously expired or been exercised, at any time within one (1) year after such
termination.  The term  "disability"  shall,  for the purposes of this Plan,  be
defined in the same  manner as such term is defined in Section  22(e)(3)  of the
Internal Revenue Code of 1986.
 
                  (e) For the  purposes  of this Plan,  "Retirement  Date" shall
mean, with respect an Optionee,  the date the Optionee actually retires from his
employment  with the Company or, if  applicable,  the  Subsidiary  by whom he is
employed;  provided  that such date occurs on or after the date the  Optionee is
otherwise entitled to retire under the terms of the defined benefit pension plan
which the  Optionee is a  participant  in (and which plan is  maintained  by the
Company or, if applicable, the Subsidiary by whom the Optionee is employed).
 
         11.  AMENDMENT AND  TERMINATION  OF THE PLAN. The Board of Directors of
the Company may at any time  suspend,  amend or  terminate  the Plan;  provided,
however,  that  except as  permitted  in  Section  13 hereof,  no  amendment  or
modification of the Plan which would:
 
<PAGE>
 
                  (a)  increase  the  maximum  aggregate  number of shares as to
which options may be granted hereunder (except as contemplated in Section 5); or
 
                  (b)  reduce   the  option   price  or  change  the  method  of
determining the option price; or
 
                  (c) increase the time for exercise of options to be granted or
those which are outstanding beyond a term of ten (10) years; or
 
                  (d)  change  the  designation  of the  employees  or  class of
employees eligible to receive options under this Plan,
 
                  may be adopted  unless  with the  approval of the holders of a
majority  of  the   outstanding   shares  of  Common  Stock   represented  at  a
stockholders' meeting of the Company, or with the written consent of the holders
of a  majority  of  the  outstanding  shares  of  Common  Stock.  No  amendment,
suspension or termination of the Plan may,  without the consent of the holder of
the option,  terminate his option or adversely affect his rights in any material
respect.
 
         12. INCENTIVE STOCK OPTIONS; POWER TO ESTABLISH OTHER PROVISIONS. It is
intended that the Plan shall  conform to and (except as otherwise  expressly set
forth  herein) each option shall  qualify and be subject to exercise only to the
extent that it does qualify as an "incentive stock option" as defined in Section
422 of the Code  and as such  section  may be  amended  from  time to time or be
accorded  similar tax treatment to that accorded to an incentive stock option by
virtue of any new revenue laws of the United States.  The Board of Directors may
make any  amendment  to the Plan which shall be required so to conform the Plan.
Subject to the  provisions of the Code,  the  Committee  shall have the power to
include such other terms and  provisions  in options  granted under this Plan as
the Committee  shall deem  advisable.  The grant of any options  pursuant to the
terms of this Plan which do not qualify as "incentive  stock options" as defined
in Section 422 of the Code is hereby  approved  provided that the maximum number
of shares of Common  Stock of the  Company  which can be issued  pursuant to the
terms  of this  Plan  (as  provided  for in  Section  4 hereof  but  subject  to
anti-dilutive  adjustments made pursuant to Section 5 hereof) is not exceeded by
the grant of any such  options  and, to the extent  that any options  previously
granted  pursuant to the terms of this Plan were not  "incentive  stock options"
 
<PAGE>
 
within  the  meaning of Section  422 of the Code,  the grant of such  options is
hereby ratified, approved and confirmed.
 
         13. MAXIMUM ANNUAL VALUE OF OPTIONS  EXERCISABLE.  Notwithstanding  any
provisions  of this Plan to the contrary if: (a) the sum of: (i) the fair market
value  (determined  as of the date of the  grant) of all  options  granted to an
Optionee  under the terms of this Plan which  become  exercisable  for the first
time in any one calendar year; and (ii) the fair market value  (determined as of
the date of the grant) of all options  previously granted to such Optionee under
the terms of this Plan or any other  incentive  stock option plan of the Company
or its  subsidiaries  which also become  exercisable  for the first time in such
calendar year;  exceeds (b) $100,000;  then, (c) those options shall continue to
be binding  upon the Company in  accordance  with their terms but, to the extent
that the aggregate fair market of all such options which become  exercisable for
the first time in any one calendar year (determined as of the date of the grant)
exceeds  $100,000,  such options  (referred  to, for  purposes of this Plan,  as
"Non-Qualified  Options")  shall not be deemed to be incentive  stock options as
defined  in Section  422(b) of the Code.  For  purposes  of the  foregoing,  the
determination of which options shall be  recharacterized  as not being incentive
stock options issued under the terms of this Plan shall be made in inverse order
of their grant dates and, accordingly, the last options received by the Optionee
shall be the first options to be  recharacterized  as not being  incentive stock
options granted pursuant to the terms of the Plan.
 
         14. GENERAL PROVISIONS (a) No incentive stock option shall be construed
as  limiting  any right  which the  Company or any parent or  subsidiary  of the
Company may have to terminate at any time, with or without cause, the employment
of an Optionee.
 
                  (b) The Section headings used in this Plan are intended solely
for convenience of reference and shall not in any manner amplify,  limit, modify
or  otherwise  be  used  in the  construction  or  interpretation  of any of the
provisions hereof.
 
                  (c) The masculine,  feminine or neuter gender and the singular
or plural  number  shall be deemed to include the other  whenever the content so
indicates or requires.
 
                  (d) No options  shall be granted under the Plan after ten (10)
years from the date the Plan is adopted by the Board of Directors of the Company
or approved by the stockholders of the Company, whichever is earlier.
 
<PAGE>
 
         15.  EFFECTIVE DATE AND DURATION OF THE PLAN. The Plan became effective
on October 27, 1995, the date the adoption of the Plan was approved by the Board
of Directors of the Company.  On January 8, 1996,  as required by Section 422 of
the Code,  the Plan was approved by the  Stockholders  of the Company.  The Plan
will terminate on October 27, 2005;  provided  however,  that the termination of
the Plan shall not be deemed to modify,  amend or otherwise  affect the terms of
any options outstanding on the date the Plan terminates.
 
         IN WITNESS  WHEREOF,  the  undersigned has executed this Plan by and on
behalf of the Company as of the 16th day of June, 1999.
 
                                          COLUMBUS MCKINNON CORPORATION
 
 
 
                                      By: /s/ Robert L. Montgomery, Jr.
                                          -----------------------------
 
 
DATE ADOPTED BY BOARD OF DIRECTORS:  October 27, 1995
DATE APPROVED BY STOCKHOLDERS:  January 8, 1996
TERMINATION DATE:  October 27, 2005

 

 

 
                                SECOND AMENDMENT
 
                                       TO
 
                          COLUMBUS MCKINNON CORPORATION
                        1995 INCENTIVE STOCK OPTION PLAN
                             AS AMENDED AND RESTATED
 
          WHEREAS, the Columbus McKinnon Corporation 1995 Incentive Stock Option
Plan was adopted by the Board of Directors of Columbus McKinnon Corporation (the
"Company") on October 27, 1995 and approved by the  shareholders  of the Company
on January 8, 1996; and
 
          WHEREAS,  an amendment and restatement of said plan was adopted by the
Company's  Board of  Directors  effective  June 16,  1999  and  approved  by the
Company's  shareholders on August 16, 1999 (said plan as amended and restated is
hereinafter referred to as the "Plan"); and
 
          WHEREAS,  the Plan was  amended  by the First  Amendment  to  Columbus
McKinnon  Corporation 1995 Incentive Stock Option, which amendment was effective
August 19, 2002; and
 
          WHEREAS,  the Company reserved the right to amend the Plan and desires
to further amend the Plan;
 
          NOW, THEREFORE, the Plan is hereby amended in the following respect:
 
          Section 10 of the Plan is deleted in its entirety and the following is
substituted in lieu thereof:
 
          "10.  AMENDMENT AND TERMINATION OF PLAN. The Board of Directors of the
     Company may at any time  suspend,  amend or terminate  the Plan;  provided,
     however,  that except as  permitted  in Section 13 hereof,  no amendment or
     modification of the Plan which would:
 
                    (a)  increase the maximum  aggregate  number of shares as to
     which options may be granted  hereunder  (except as contemplated in Section
     5); or
 
 
<PAGE>
 
 
                    (b)  reduce  the  option  price  or  change  the  method  of
     determining the option price; or
 
                    (c)  increase the time for exercise of options to be granted
     or those which are outstanding beyond a term of ten (10) years; or
 
                    (d)  change the  designation  of the  employees  or class of
     employees eligible to receive options under this Plan; or
 
                    (e)   otherwise   materially   increase   the   benefits  to
     participants  under this Plan,  may be adopted  unless with the approval of
     the  holders  of a  majority  of the  outstanding  shares of  Common  Stock
     represented at a meeting of the Company's shareholders, or with the consent
     of the holders of a majority of the outstanding  shares of Common Stock. No
     amendment,  suspension or termination of the Plan may,  without the consent
     of a holder of an option,  terminate  such option or adversely  affect such
     holder's rights with respect to such option in any material respect."
 
          This  Amendment  shall be  effective  on August  24,  2002.  Except as
otherwise amended herein,  the Plan shall remain unchanged and in full force and
effect.
 
          IN WITNESS  WHEREOF,  the  Company has caused  this  instrument  to be
executed by its duly authorized officer this 24th day of August, 2002.
 
 
 
                                          COLUMBUS MCKINNON CORPORATION
 
 
                                          BY     /S/ ROBERT L. MONTGOMERY
                                                 ------------------------
                                                 Robert L. Montgomery
                                                 Executive Vice President