Document:

exv10w4

 

Exhibit 10.4

QUICKSILVER GAS SERVICES LP

2007 EQUITY PLAN

 

 

QUICKSILVER GAS SERVICES LP

2007 EQUITY PLAN

	 	 	 	 	 	 	 
	SECTION

	 	
	 	PAGE
	 
	1.

	 	Purpose
	 	 	1	 
	2.

	 	Term
	 	 	1	 
	3.

	 	Definitions
	 	 	1	 
	4.

	 	Units Available Under Plan
	 	 	6	 
	5.

	 	Options
	 	 	6	 
	6.

	 	Appreciation Rights
	 	 	7	 
	7.

	 	Restricted Units
	 	 	9	 
	8.

	 	Phantom Units
	 	 	10	 
	9.

	 	Performance Units and Performance Bonuses
	 	 	11	 
	10.

	 	Awards to Eligible Directors
	 	 	12	 
	11.

	 	Transferability
	 	 	13	 
	12.

	 	Adjustments
	 	 	13	 
	13.

	 	Fractional Units
	 	 	14	 
	14.

	 	Withholding Taxes
	 	 	14	 
	15.

	 	Administration of the Plan
	 	 	14	 
	16.

	 	Amendments and Other Matters
	 	 	15	 
	17.

	 	Governing Law
	 	 	16	 

 

 

QUICKSILVER GAS SERVICES LP

2007 EQUITY PLAN

     1. Purpose. The Quicksilver Gas Services LP 2007 Equity Plan (the “Plan”) is intended to
promote the interests of Quicksilver Gas Services LP, a Delaware limited partnership (the
“Partnership”), by providing to employees, consultants, officers and directors of Quicksilver GP
LLC, a Delaware limited liability company and the general partner of the Partnership (the “General
Partner”), and its Affiliates incentive compensation awards based on Units. The Plan is also
intended to supplement the compensation that these individuals receive from the General Partner and
its Affiliates and to provide them incentives to promote the interests of the Partnership and its
Affiliates.

     2. Term. The Plan will terminate on the earliest of (a) the date that the Plan is terminated
in accordance with Section 16, (b) the date that Units are no longer available for Awards under the
Plan, or (c) the tenth anniversary of the date that the Plan is adopted by the Partnership. No
further Awards will be made under the Plan on or after such date. Awards that are outstanding on
the date the Plan terminates will remain in effect according to their terms and the provisions of
the Plan.

     3. Definitions. The following terms, when used in the Plan with initial capital letters, will
have the following meanings:

     (a) Affiliate means, with respect to any Person, any other Person that directly or
indirectly through one or more intermediaries controls, is controlled by or is under common
control with, the Person in question. As used herein, the term “control” means the
possession, direct or indirect, of the power to direct or cause the direction of the
management and policies of a Person, whether through ownership of voting securities, by
contract or otherwise.

     (b) Appreciation Right means a right granted pursuant to Section 6.

     (c) Award means a grant of Appreciation Rights, Options, Phantom Units, Performance
Units or a Performance Bonus, or the grant or sale of Restricted Units, and includes any
tandem DERs granted with respect to a Phantom Unit or Performance Unit.

     (d) Board means the Board of Directors of the General Partner.

     (e) Change in Control means the occurrence of an event described in (i), (ii) or (iii)
below:

     (i) The General Partner ceases to be controlled by the Company or one or more
Affiliates of the Company and a majority of the Board of Directors of the General
Partner thereafter ceases to be comprised of Incumbent Directors;

     (ii) The consummation of a reorganization, merger or consolidation of the
Partnership or sale or other disposition of all or substantially all of the
consolidated assets of the Partnership (a “Partnership Transaction”) immediately

 

 

after which the voting power of the equity securities of the Partnership
outstanding immediately prior to such Partnership Transaction do not continue to
represent (either by remaining outstanding or by being converted into equity
securities having voting power in the entity surviving, resulting from, or
succeeding to all or substantially all of the Partnership’s consolidated assets as a
result of such Partnership Transaction or any parent of such entity) at least 50% of
the combined voting power of the then outstanding equity securities of (A) the
entity surviving, resulting from, or succeeding to all or substantially all of the
Partnership’s consolidated assets as a result of such Partnership Transaction or (B)
any parent of any such entity (including, without limitation, an entity which as a
result of such transaction owns the Partnership or all or substantially all of the
Partnership’s assets either directly or through one or more subsidiaries); or

     (iii) The occurrence of any of the following events while the General Partner
is controlled by the Company or one or more Affiliates of the Company:

               (A) Any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Exchange Act) is or becomes the beneficial owner (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of the combined
voting power of the then-outstanding Voting Securities of the Company; provided,
however, that the following acquisitions will not constitute a Change in Control:
(1) any acquisition of Voting Securities of the Company directly from the Company
that is approved by a majority of the Incumbent Quicksilver Directors; (2) any
acquisition of the Voting Securities of the Company by the Company or an Affiliate
of the Company; (3) any acquisition of Voting Securities of the Company by the
trustee or other fiduciary holding securities under any employee benefit plan (or
related trust) sponsored or maintained by the Company or any Affiliate of the
Company; or (4) any acquisition of Voting Securities of the Company by Mercury
Exploration Company, Quicksilver Energy, L.P., The Discovery Fund, Pennsylvania
Avenue Limited Partnership, Pennsylvania Management Company, the estate of Frank
Darden, Lucy Darden, Anne Darden Self, Glenn Darden or Thomas Darden, or their
respective successors, assigns, designees, heirs, beneficiaries, trusts, estates or
controlled affiliates;

               (B) A majority of the Board of Directors of the Company ceases to be comprised
of Incumbent Quicksilver Directors;

               (C) The consummation of a reorganization, merger or consolidation of the
Company or sale or other disposition of all or substantially all of the consolidated
assets of the Company (each, a “Business Combination Transaction”) immediately after
which the Voting Securities of the Company outstanding immediately prior to such
Business Combination Transaction do not continue to represent (either by remaining
outstanding or by being converted into equity securities having voting power in the
entity surviving, resulting from, or succeeding to all or substantially all of the
Company’s consolidated assets as a result of such Business Combination Transaction
or any parent of such entity) at

2

 

least 50% of the combined voting power of the then outstanding equity
securities having voting power in (1) the entity surviving, resulting from, or
succeeding to all or substantially all of the Company’s consolidated assets as a
result of such Business Combination Transaction or (2) any parent of any such entity
(including, without limitation, an entity which as a result of such transaction owns
the Company or all or substantially all of the Company’s assets, either directly or
through one or more subsidiaries; or

               (D) The General Partner, or one or more Affiliates of the Company, ceases to be
the general partner of the Partnership.

     (f) Code means the Internal Revenue Code of 1986, as in effect from time to time.

     (g) Committee means the Compensation Committee of the Board and, to the extent the
administration of the Plan has been assumed by the Board pursuant to Section 15 or with
respect to the administration of Section 10, the Board.

     (h) Company means Quicksilver Resources Inc., a Delaware corporation.

     (i) Consultant means an individual, other than an Employee or Eligible Director, who
performs services for the Partnership, the General Partner or an Affiliate of either of them.

     (j) Date of Grant means the date specified by the Committee on which an Award will
become effective.

     (k) Deferral Period means the period of time during which Phantom Units are subject to
deferral limitations.

     (l) DER means a contingent right, granted in tandem with a specific Phantom Unit or
Performance Unit, to receive an amount in cash equal to, and at the same time as, the cash
distributions made by the Partnership with respect to a Unit during the period such Phantom
Unit or Performance Unit is outstanding.

     (m) Eligible Director means a member of the Board who is not an Employee.

     (n) Employee means an employee or officer of the General Partner or its Affiliates who
performs services for the Partnership, the General Partner or an Affiliate of either of them.

     (o) Evidence of Award means an agreement, certificate, resolution or other type or form
of writing or other evidence approved by the Committee which sets forth the terms and
conditions of an Award. An Evidence of Award may be in any electronic medium, may be limited
to a notation on the books and records of the Partnership and need not be signed by a
representative of the Partnership or a Participant.

     (p) Exchange Act means the Securities Exchange Act of 1934, as amended.

3

 

     (q) General Partner means Quicksilver Gas Services GP LLC, a Delaware limited liability
company.

     (r) Grant Price means the price per Unit at which an Appreciation Right is granted.

     (s) Incumbent Directors means the individuals who, as of the IPO Date, are directors of
the General Partner, and any individual becoming a director of the General Partner subsequent
to such date whose election, nomination for election by the General Partner’s members, or
appointment, was approved by a vote of a majority of the then Incumbent Directors (either by
a specific vote or by approval of the proxy statement of the General Partner in which such
person is named as a nominee for director, without objection to such nomination).

     (t) Incumbent Quicksilver Directors means the individuals who, as of the IPO Date, are
directors of the Company, and any individual becoming a director of the Company subsequent to
such date whose election, nomination for election by the Company’s stockholders, or
appointment, was approved by a vote of a majority of the then Incumbent Quicksilver Directors
(either by a specific vote or by approval of the proxy statement of the Company in which such
person is named as a nominee for director, without objection to such nomination).

     (u) IPO Date means the date that the initial public offering of the Units is
consummated.

     (v) Management Objectives means the measurable performance objectives, if any,
established by the Committee for a Performance Period that are to be achieved with respect to
an Award. Management Objectives may be described in terms of company-wide objectives (i.e.,
the performance of the Partnership and all of its subsidiaries) or in terms of objectives
that are related to the performance of the individual Participant or of the division,
subsidiary, department, region or function within the Partnership or an Affiliate of the
Partnership in which the Participant receiving the Award is employed or on which the
Participant’s efforts have the most influence. The achievement of the Management Objectives
established by the Committee for any Performance Period will be determined without regard to
the effect on such Management Objectives of any acquisition or disposition by the Partnership
of a trade or business, or of substantially all of the assets of a trade or business, during
the Performance Period and without regard to any change in accounting standards by the
Financial Accounting Standards Board or any successor entity.

          If the Committee determines that, as a result of a change in the business, operations,
corporate structure or capital structure of the Partnership (other than an acquisition or
disposition described in the first paragraph of this Section 3(v)), or the manner in which
the Partnership conducts its business, or any other events or circumstances, the Management
Objectives are no longer suitable, the Committee may in its discretion modify such
Management Objectives or the related minimum acceptable
 

4

 

level of achievement, in whole or in part, with respect to a Performance Period as the
Committee deems appropriate and equitable.

     (w) Market Value per Unit means, at any date, the closing sales price of a Unit on that
date (or, if there are no sales on that date, the last preceding date on which there was a
sale) on the principal national securities exchange or in the principal market on or in which
the Units are traded. In the event that the Units are not traded on such an exchange or
market at the time a determination is to be made hereunder, the determination will be made in
good faith by the Committee.

     (x) Option means the right to purchase Units upon exercise of an option granted pursuant
to Section 5.

     (y) Option Price means the purchase price per Unit payable on exercise of an Option.

     (z) Participant means a person who is selected by the Committee to receive an Award
under the Plan and who at that time is an Employee, Consultant or Eligible Director.

     (aa) Performance Bonus means an Award expressed in units, where a unit is equivalent to
$1.00 (or such other value as the Committee determines) granted pursuant to Section 9.

     (bb) Performance Period means, with respect to an Award, a period of time within which
the Management Objectives relating to such Award are to be measured. The Performance Period
will be established by the Committee at the time of the Award.

     (cc) Performance Unit means a bookkeeping entry that records the equivalent of one Unit
awarded pursuant to Section 9.

     (dd) Person means an individual or a corporation, limited liability company,
partnership, joint venture, trust, unincorporated organization, association, government
agency or political subdivision thereof or other entity.

     (ee) Phantom Units means an Award granted pursuant to Section 8 or Section 10.

     (ff) Restricted Units means Units granted or sold pursuant to Section 7 as to which
neither the ownership restrictions nor the restrictions on transfer have expired.

     (gg) Rule 16b-3 means Rule 16b-3 under Section 16 of the Exchange Act as amended (or any
successor rule to the same effect), as in effect from time to time.

     (hh) Spread means the excess of the Market Value per Unit on the date an Appreciation
Right is exercised over (i) the Option Price provided for in the Option granted in tandem
with the Appreciation Right or (ii) if there is no tandem Option, the

5

 

Grant Price provided for in the Appreciation Right, in either case multiplied by the
number of Units in respect of which the Appreciation Right is exercised.

     (ii) UDR means a distribution made by the Partnership with respect to a Restricted Unit.

     (jj) Unit means a common unit of the Partnership.

     (kk) Voting Securities of the Company means the securities entitled to vote generally in
the election of directors of the Company or persons who serve similar functions.

     4. Units Available Under Plan. The aggregate number of Units that may be (i) subject to an
Award of Appreciation Rights or Options, and (ii) issued or transferred as Restricted Units and
released from all restrictions or in payment of Performance Units, Performance Shares or Phantom
Units will not exceed in the aggregate 750,000. Any Units delivered pursuant to an Award will
consist, in whole or in part, of Units acquired in the open market or from any Affiliate of the
Partnership or any other Person, newly issued Units or any combination of the foregoing, as
determined by the Committee in its discretion. The number of Units available under this Section 4
will be subject to adjustment as provided in Section 12 and will be further adjusted to include
Units that relate to Awards that (i) expire or are forfeited, (ii) are withheld or tendered in
payment of the Option Price with respect to an Option or in satisfaction of the taxes required to
be withheld in connection with any Award granted under the Plan or (iii) are subject to an
Appreciation Right that are not transferred to a Participant upon exercise of the Appreciation
Right. There will not be any limitation on the number of Awards that may be granted and paid in
cash, and any Units allocated to an Award payable in cash or Units will, to the extent paid in
cash, be again available for delivery under the Plan with respect to other Awards.

     5. Options. The Committee may from time to time authorize grants of options to any
Participant to purchase Units upon such terms and conditions as it may determine in accordance with
this Section 5. Each grant of Options may utilize any or all of the authorizations, and will be
subject to all of the requirements, contained in the following provisions:

     (a) Each grant will specify the number of Units to which it relates.

     (b) Each grant will specify the Option Price, which will not be less than 100% of the
Market Value per Unit on the Date of Grant.

     (c) Each grant will specify whether the Option Price will be payable (i) in cash or by
check acceptable to the General Partner, (ii) with the consent of the Committee, by the
actual or constructive transfer of Units owned by the Participant and having an aggregate
Market Value per Unit at the date of exercise equal to the aggregate Option Price, (iii) with
the consent of the Committee, by authorizing the withholding of a number of Units otherwise
issuable to the Participant having an aggregate Market Value per Unit on the date of exercise
equal to the aggregate Option Price or (iv) by a combination of such methods of payment;
provided, however, that the payment methods described in

6

 

clauses (ii) and (iii) will not be available at any time that the Partnership is
prohibited from purchasing or acquiring such Units.

     (d) To the extent permitted by law, any grant may provide for deferred payment of the
Option Price from the proceeds of sale through a bank or broker of some or all of the Units
to which such exercise relates.

     (e) Successive grants may be made to the same Participant whether or not any Options or
other Awards previously granted to such Participant remain unexercised or outstanding.

     (f) Each grant will specify the required period or periods of continuous service by the
Participant with the General Partner or its Affiliates that are necessary before the Options
or installments thereof will become exercisable.

     (g) Any grant may specify the Management Objectives that must be achieved as a condition
to the exercise of the Options.

     (h) Any grant may provide for the earlier exercise of the Options in the event of a
Change in Control or other similar transaction or event.

     (i) On or after the Date of Grant, the Committee may provide for the payment to the
Participant of distribution equivalents thereon in cash or Units on a current, deferred or
contingent basis.

     (j) No Options will be exercisable more than ten years from the Date of Grant, unless
the Evidence of Award provides for an extended exercise period in the event of death,
disability or retirement.

     (k) The Committee will have the right to substitute Appreciation Rights for outstanding
Options granted to one or more Participants, provided the terms and the economic benefit of
the substituted Appreciation Rights are at least equivalent to the terms and economic benefit
of such Options, as determined by the Committee in its discretion.

     (l) Any grant may provide for the effect on the Options or any Units issued, or other
payment made, with respect to the Options of any conduct of the Participant determined by the
Committee to be injurious, detrimental or prejudicial to any significant interest of the
Partnership or any of its Affiliates.

     (m) Each grant will be evidenced by an Evidence of Award, which may contain such terms
and provisions, consistent with the Plan, as the Committee may approve, including without
limitation provisions relating to the Participant’s termination of employment or other
termination of service by reason of retirement, death, disability or otherwise.

     6. Appreciation Rights. The Committee may also from time to time authorize grants to any
Participant of Appreciation Rights upon such terms and conditions as it may determine in accordance
with this Section 6. Appreciation Rights may be granted in tandem with

7

 

Options or separate and apart from a grant of Options. An Appreciation Right will be a right
of the Participant to receive from the Partnership upon exercise an amount which will be determined
by the Committee at the Date of Grant and will be expressed as a percentage of the Spread (not
exceeding 100%) at the time of exercise. An Appreciation Right granted in tandem with an Option
may be exercised only by surrender of the related Option. Each grant of an Appreciation Right may
utilize any or all of the authorizations, and will be subject to all of the requirements, contained
in the following provisions:

     (a) Each grant will state whether it is made in tandem with Options and, if not made in
tandem with any Options, will specify the number of Units in respect of which it is made.

     (b) Each grant made in tandem with Options will specify the Option Price and each grant
not made in tandem with Options will specify the Grant Price, which in either case will not
be less than 100% of the Market Value per Unit on the Date of Grant.

     (c) Any grant may provide that the amount payable on exercise of an Appreciation Right
may be paid (i) in cash, (ii) in Units having an aggregate Market Value per Unit equal to the
Spread (or the designated percentage of the Spread) or (iii) in a combination thereof, as
determined by the Committee in its discretion.

     (d) Any grant may specify that the amount payable to the Participant on exercise of an
Appreciation Right may not exceed a maximum amount specified by the Committee at the Date of
Grant.

     (e) Successive grants may be made to the same Participant whether or not any
Appreciation Rights or other Awards previously granted to such Participant remain unexercised
or outstanding.

     (f) Each grant will specify the required period or periods of continuous service by the
Participant with the General Partner or its Affiliates that are necessary before the
Appreciation Rights or installments thereof will become exercisable, and will provide that no
Appreciation Rights may be exercised except at a time when the Spread is positive and, with
respect to any grant made in tandem with Options, when the related Options are also
exercisable.

     (g) Any grant may specify the Management Objectives that must be achieved as a condition
to the exercise of the Appreciation Rights.

     (h) Any grant may provide for the earlier exercise of the Appreciation Rights in the
event of a Change in Control or other similar transaction or event.

     (i) On or after the Date of Grant, the Committee may provide for the payment to the
Participant of distribution equivalents thereon in cash or Units on a current, deferred or
contingent basis.

     (j) No Appreciation Right will be exercisable more than ten years from the Date of
Grant.

8

 

     (k) Any grant may provide for the effect on the Appreciation Rights or any Units issued,
or other payment made, with respect to the Appreciation Rights of any conduct of the
Participant determined by the Committee to be injurious, detrimental or prejudicial to any
significant interest of the Partnership or any of its Affiliates.

     (l) Each grant will be evidenced by an Evidence of Award, which may contain such terms
and provisions, consistent with the Plan, as the Committee may approve, including without
limitation provisions relating to the Participant’s termination of employment or other
termination of service by reason of retirement, death, disability or otherwise.

     7. Restricted Units. The Committee may also from time to time authorize grants or sales to
any Participant of Restricted Units upon such terms and conditions as it may determine in
accordance with this Section 7. Each grant or sale will constitute an immediate transfer of the
ownership of Units to the Participant in consideration of the performance of services, entitling
such Participant to ownership rights, but subject to the restrictions set forth in this Section 7.
Each such grant or sale may utilize any or all of the authorizations, and will be subject to all of
the requirements, contained in the following provisions:

     (a) Each grant or sale may be made without additional consideration or in consideration
of a payment by the Participant that is less than the Market Value per Unit at the Date of
Grant, except as may otherwise be required by law.

     (b) Each grant or sale may limit the Participant’s right to UDRs with respect to the
Restricted Units during the period in which the Restricted Units are subject to any such
restrictions.

     (c) Each grant or sale will provide that the Restricted Units will be subject, for a
period to be determined by the Committee at the Date of Grant, to one or more restrictions,
including without limitation a restriction that constitutes a “substantial risk of
forfeiture” within the meaning of Section 83 of the Code and the regulations of the Internal
Revenue Service under such section. Except as provided in Section 7(d) or 7(e), the
restrictions imposed on Restricted Units will not terminate at a rate that is faster than
1/3rd of the Restricted Units on each anniversary of the Date of Grant.

     (d) Any grant or sale may specify the Management Objectives that, if achieved, will
result in the termination or early termination of the restrictions applicable to the
Restricted Units, provided that the Performance Period associated with such Management
Objectives will be a period of no less than 12 calendar months.

     (e) Any grant or sale may provide for the early termination of any such restrictions in
the event of a Change in Control or other similar transaction or event or the Participant’s
termination of employment or service by reason of death, disability, retirement or otherwise.

     (f) Each grant or sale will provide that during the period for which such restriction or
restrictions are to continue, the transferability of the Restricted Units will be prohibited
or restricted in a manner and to the extent prescribed by the Committee at the

9

 

Date of Grant (which restrictions may include without limitation rights of repurchase or
first refusal in favor of the Partnership or provisions subjecting the Restricted Units to
continuing restrictions in the hands of any transferee).

     (g) Any grant or sale may provide for the effect on the Restricted Units or any Units
issued free of restrictions, or other payment made, with respect to the Restricted Units of
any conduct of the Participant determined by the Committee to be injurious, detrimental or
prejudicial to any significant interest of the Partnership or any of its Affiliates.

     (h) Each grant or sale will be evidenced by an Evidence of Award, which may contain such
terms and provisions, consistent with the Plan, as the Committee may approve, including
without limitation provisions relating to the Participant’s termination of employment or
other termination of service by reason of retirement, death, disability or otherwise.

     8. Phantom Units. The Committee may also from time to time authorize grants or sales to any
Participant of Phantom Units upon such terms and conditions as it may determine in accordance with
this Section 8. Each grant or sale of a Phantom Unit will constitute the agreement by the
Partnership to issue or transfer a Unit (or an amount in cash equal to the Market Value per Unit)
to the Participant in the future in consideration of the performance of services, subject to the
fulfillment during the Deferral Period of such conditions as the Committee may specify. Each such
grant or sale may utilize any or all of the authorizations, and will be subject to all of the
requirements, contained in the following provisions:

     (a) Each grant or sale may be made without additional consideration from the Participant
or in consideration of a payment by the Participant that is less than the Market Value per
Unit on the Date of Grant, except as may otherwise be required by law.

     (b) Each grant or sale will provide that the Phantom Units will be subject to a Deferral
Period, which will be fixed by the Committee on the Date of Grant. Except as provided in
Section 8(c), 8(d) or 10(e), the Deferral Period will not terminate at a rate that is faster
than 1/3rd of the Phantom Units on each anniversary of the Date of Grant.

     (c) Any grant or sale may specify the Management Objectives that, if achieved, will
result in the termination or early termination of the Deferral Period, provided that the
Performance Period associated with such Management Objectives will be a period of no less
than 12 calendar months.

     (d) Any grant or sale may provide for the earlier termination of the Deferral Period in
the event of a Change in Control or other similar transaction or event or the Participant’s
termination of employment or service by reason of death, disability, retirement or otherwise.

     (e) During the Deferral Period, the Participant will not have any right to transfer any
rights under the Phantom Units, will not have any rights of ownership in the Phantom Units
and will not have any right to vote the Phantom Units, but the Committee

10

 

may on or after the Date of Grant authorize the payment of DERs on such Units in cash or
Units on a current, deferred or contingent basis.

     (f) Any grant or sale may provide for the effect on the Phantom Units or any Units
issued free of restrictions, or other payment made, with respect to the Phantom Units of any
conduct of the Participant determined by the Committee to be injurious, detrimental or
prejudicial to any significant interest of the Partnership or any of its Affiliates.

     (g) Each grant or sale will be evidenced by an Evidence of Award, which will contain
such terms and provisions as the Committee may determine consistent with the Plan, including
without limitation provisions relating to the Participant’s termination of employment or
other termination of service by reason of retirement, death, disability or otherwise.

     9. Performance Units and Performance Bonuses. The Committee may also from time to time
authorize grants to Participants of Performance Units and Performance Bonuses, which will become
payable upon achievement of specified Management Objectives, upon such terms and conditions as it
may determine in accordance with this Section 9. Each such grant may utilize any or all of the
authorizations, and will be subject to all of the requirements, contained in the following
provisions:

     (a) Each grant will specify the number of Performance Units or the value of the
Performance Bonus to which it relates.

     (b) The Performance Period with respect to each Performance Unit and Performance Bonus
will be determined by the Committee at the time of grant.

     (c) Each grant will specify the Management Objectives that, if achieved, will result in
the payment of the Performance Units or Performance Bonus.

     (d) Each grant will specify the time and manner of payment of Performance Units or
Performance Bonuses which have become payable, which payment may be made in (i) cash, (ii)
Units having an aggregate Market Value per Unit equal to the aggregate value of the
Performance Units or Performance Bonuses which have become payable or (iii) any combination
thereof, as determined by the Committee in its discretion at the time of payment.

     (e) Any grant of Performance Units may specify that the amount payable with respect
thereto may not exceed a maximum specified by the Committee on the Date of Grant. Any grant
of a Performance Bonus may specify that the amount payable, or the number of Units issued,
with respect to the Performance Bonus may not exceed maximums specified by the Committee on
the Date of Grant.

     (f) On or after the Date of Grant, the Committee may provide for the payment to the
Participant of DERs on Performance Units in cash or Units on a current, deferred or
contingent basis.

11

 

     (g) Any grant may provide for the effect on the Performance Units or Performance Bonus
or any Units issued, or other payment made, with respect to the Performance Units or
Performance Bonus of any conduct of the Participant determined by the Committee to be
injurious, detrimental or prejudicial to any significant interest of the Partnership or any
of its Affiliates.

     (h) Each grant will be evidenced by an Evidence of Award, which will contain such terms
and provisions as the Committee may determine consistent with the Plan, including without
limitation provisions relating to the payment of the Performance Units or Performance Bonus
in the event of a Change in Control or other similar transaction or event and provisions
relating to the Participant’s termination of employment or other termination of service.

     10. Awards to Eligible Directors.

               (a) Each Eligible Director on the IPO Date (i) will receive a grant of Phantom Units in
lieu of cash compensation of $40,000, and (ii) may elect to receive an additional grant of
Phantom Units in lieu of additional cash compensation of $40,000.

               (b) Each individual who first becomes an Eligible Director after the IPO Date on a date
other than the first business day of a calendar year (i) will receive a grant of Phantom
Units in lieu of cash compensation of $40,000 (if the individual becomes and Eligible
Director prior to July 1 of any year) or $20,000 (if the individual becomes and Eligible
Director on or after July 1 of any year), and (ii) may elect to receive a grant of Phantom
Units in lieu of additional cash compensation of $40,000 (if the individual becomes an
Eligible Director prior to July 1 of any year) or $20,000 (if the individual becomes an
Eligible Director on or after July 1 of any year). For purposes of this Section 10(b), an
Eligible Director who ceases to be a member of the Board and thereafter becomes an Eligible
Director again will be deemed to first become an Eligible Director on the date that such
individual again becomes an Eligible Director.

               (c) On the first business day of each calendar year beginning after December 31, 2007,
each Eligible Director (i) will receive a grant of Phantom Units in lieu of cash compensation
of $40,000, and (ii) may elect to receive an additional grant of Phantom Units in lieu of
additional cash compensation of $40,000.

               (d) The number of Phantom Units to be granted to an Eligible Director under this Section
10 will be determined by dividing the amount of cash compensation the Phantom Units are
replacing by the Market Value per Unit as of (i) the IPO Date, for Phantom Units granted
under Section 10(a), (ii) the date on which the Eligible Director first becomes a member of
the Board, for Phantom Units granted under Section 10(b), and (iii) the first business day of
the applicable calendar year, for Phantom Units granted under Section 10(c). All elections
to receive a grant of Phantom Units in lieu of cash compensation will be made in accordance
with procedures established by the Committee that are designed to satisfy the deferral
election requirements under Section 409A of the Code and (A) with respect to Sections
10(a)(ii) and 10(b)(ii), must be made within 30 days after the date the Eligible Director
first becomes eligible to participate in the Plan and will

12

 

apply only to compensation paid for services performed after the election, and (B) with
respect to Section 10(c)(ii), must be made on or prior to the last day of the preceding
calendar year.

     (e) Each grant of Phantom Units made to an Eligible Director under this Section 10 may
utilize any or all of the authorizations, and will be subject to all of the requirements,
contained in the following provisions:

     (i) Each grant of Phantom Units under Section 10(a)(i), 10(b)(i) or 10(c)(i)
will become nonforfeitable as to 1/3rd of the total number of Units
subject thereto on the first business day of each of the first three calendar years
beginning after the Date of Grant; provided, in each case, that the Eligible
Director who received the Phantom Units has remained a member of the Board through
each such date.

     (ii) Each grant of Phantom Units under Section 10(a)(ii), 10(b)(ii), or
10(c)(ii) will become nonforfeitable on the first business day of the first calendar
year beginning after the Date of Grant; provided, in each case, that the Eligible
Director who received the grant of Phantom Units has remained a member of the Board
through such date.

     (iii) Except as provided in an Evidence of Award, upon an Eligible Director’s
ceasing to be a member of the Board prior to the end of a Deferral Period for any
reason, the Eligible Director will immediately forfeit all nonvested Phantom Units,
unless the Board, in its discretion, terminates the Deferral Period.

     11. Transferability. No Award may be sold, pledged, assigned or transferred in any manner
other than by will or the laws of descent and distribution or pursuant to a qualified domestic
relations order; provided, however, that a Participant who is an officer of the General Partner or
an Affiliate may, with the prior approval of the Committee, transfer an Option to family members of
the Participant, including to trusts in which family members of the Participant own more than 50%
of the beneficial interests, to foundations in which family members of the Participant or the
Participant controls the management of assets and to other entities in which more than 50% of the
voting interests are owned by family members of the Participant or the Participant. No Option or
Appreciation Right granted to a Participant will be exercisable during the Participant’s lifetime
by any Person other than the Participant or the Participant’s guardian or legal representative or
any permitted transferee.

     12. Adjustments.

     (a) The Committee will make or provide for such adjustments in (i) the maximum number of
Units specified in Section 4, (ii) the number of Units covered by outstanding Options,
Appreciation Rights, Performance Units and Restricted Units granted under the Plan, (iii) the
Option Price or Grant Price applicable to any Options and Appreciation Rights, and (iv) the
kind of securities covered by any such Awards (including securities of another issuer), as is
equitably required to prevent dilution or enlargement of the rights of Participants that
otherwise would result from (x) any

13

 

distribution (whether in the form of cash, Units, other securities or other property),
combination or exchange of Units or other securities, recapitalization or other change in the
capital structure of the Partnership, or (y) any merger, consolidation, separation, spin-off,
split-off, spin-out, split-up, reorganization, partial or complete liquidation or other
distribution of assets, issuance of rights or issuance of warrants to purchase securities, or
(z) any other corporate transaction or event having an effect similar to any of the
foregoing. In the event of any such transaction or event, the Committee, in its discretion,
may provide in substitution for any or all outstanding Awards such alternative consideration
as it, in good faith, may determine to be equitable in the circumstances and may require in
connection with such substitution the surrender of all Awards so replaced.

     (b) The Committee may accelerate the payment of, or vesting with respect to, any Award
under the Plan upon the occurrence of a transaction or event described in this Section 12;
provided, however, that in the case of any Award that constitutes a deferral of compensation
within the meaning of Section 409A of the Code, the Committee will not accelerate the payment
of the Award unless it determines in good faith that such transaction or event satisfies the
requirements of a change in control event under guidance issued by the Secretary of the
Treasury under Section 409A of the Code.

     13. Fractional Units. The Partnership will not be required to issue or deliver any fractional
Units pursuant to the Plan. The Committee may provide for the elimination of fractions or for the
settlement of fractions in cash.

     14. Withholding Taxes. To the extent that the General Partner or any of its Affiliates is
required to withhold federal, state, local or foreign taxes in connection with any payment made or
benefit realized by a Participant or other Person under the Plan, and the amounts available for
such withholding are insufficient, it will be a condition to the receipt of such payment or the
realization of such benefit that the Participant or such other Person make arrangements
satisfactory to the Partnership for payment of the balance of such taxes required to be withheld.
In addition, if permitted by the Committee, the Participant or such other Person may elect to have
any withholding obligation satisfied with Units that would otherwise be transferred to the
Participant or such other Person in payment of the Participant’s Award. However, without the
consent of the Committee, Units will not be withheld in excess of the minimum number of Units
required to satisfy the withholding obligation.

     15. Administration of the Plan.

     (a) Unless the administration of the Plan has been expressly assumed by the Board
pursuant to a resolution of the Board, the Plan will be administered by the Committee.
Notwithstanding the foregoing, the provisions of Section 10 will be administered by the
Board. A majority of the Committee will constitute a quorum, and the action of the members
of the Committee present at any meeting at which a quorum is present, or acts unanimously
approved in writing, will be the acts of the Committee.

     (b) The Committee has the full authority and discretion to administer the Plan and to
take any action that is necessary or advisable in connection with the administration of the
Plan, including without limitation the authority and discretion to interpret and

14

 

construe any provision of the Plan or of any agreement, notification or document
evidencing an Award. The interpretation and construction by the Committee of any such
provision and any determination by the Committee pursuant to any provision of the Plan or of
any such agreement, notification or document will be final and conclusive. No member of the
Committee will be liable for any such action or determination made in good faith.

     (c) To the extent permitted by applicable law, the Committee may delegate its authority
under the Plan to a subcommittee of the Committee, to one or more committees of the Board or
to one or more executive officers of the Company; provided, however, that no delegation may
be made of authority to take an action which is required by Rule 16b-3 to be taken by
“non-employee directors” in order that the Plan and transactions thereunder meet the
requirements of such Rule.

     (d) It is the Committee’s intention that any Award granted under the Plan that
constitutes a deferral of compensation within the meaning of Section 409A of the Code and the
guidance issued by the Secretary of the Treasury under Section 409A satisfy the requirements
of Section 409A of the Code. In granting such an Award, the Committee will use its best
efforts to exercise its authority under the Plan with respect to the terms of such Award in a
manner that the Committee determines in good faith will cause the Award to comply with
Section 409A of the Code and thereby avoid the imposition of penalty taxes and interest upon
the Participant receiving the Award.

     (e) With respect to the administration of the provisions of Section 10 or if the
administration of the Plan is assumed by the Board pursuant to Section 15(a), the Board
will have the same authority, power, duties, responsibilities and discretion given to the
Committee under the terms of the Plan.

     16. Amendments and Other Matters.

     (a) The Plan may be amended from time to time by the Board or, with respect to those
provisions of the Plan other than Section 10, the Committee; provided, however, that the Plan
may not be amended without further approval by the unitholders of the Partnership if such
amendment would result in the Plan no longer satisfying any applicable requirements of the
NYSE Arca (or the principal national securities exchange on which the Units are traded) or
Rule 16b-3.

     (b) Neither the Committee nor the Board will authorize the amendment of any outstanding
Option to reduce the Option Price without the further approval of the unitholders of the
Partnership. Furthermore, no Option will be cancelled and replaced with Options having a
lower Option Price without further approval of the unitholders of the Partnership. The
provisions of this Section 16(b) are intended to prohibit the repricing of “underwater”
Options and will not be construed to prohibit the adjustments provided for in Section 12.

     (c) The Plan may be terminated at any time by action of the Board. The termination of
the Plan will not adversely affect the terms of any outstanding Award.

15

 

     (d) No Units will be issued under the Plan prior to (i) the obtaining of any approval
from any governmental agency which the General Partner, in its sole discretion, determines to
be necessary or advisable, (ii) the admission of such Units to listing on any securities
exchange on which the Units may then be listed, and (iii) the completion of any registration
or other qualification of such Units under any state or Federal law or rulings or regulations
of any governmental body which the General Partner, in its sole discretion, determines to be
necessary or advisable.

     (e) The Plan does not confer upon any Participant any right with respect to continuance
of employment or other service with the General Partner or any of its Affiliates, nor will it
interfere in any way with any right the General Partner or any of its Affiliates would
otherwise have to terminate such Participant’s employment or other service at any time.

     (f) To the extent that the Partnership has an obligation to reimburse the General
Partner or one of its Affiliates for compensation paid to Consultants and Employees for
services rendered for the benefit of the Partnership, such payments or reimbursement payments
may be made by the Partnership directly to the General Partner or its Affiliate and, if made
to the General Partner with respect to an Affiliate, will be received by the General Partner
as agent for the Affiliate.

     17. Governing Law. The Plan, all Awards and all actions taken under the Plan and the Awards
will be governed in all respects in accordance with the laws of the State of Delaware, including
without limitation the Delaware statute of limitations, but without giving effect to the principles
of conflicts of laws of such State.

16exv4w2

 

Exhibit 4.2

UCBH HOLDINGS, INC.

AMENDED AND RESTATED 2006 EQUITY INCENTIVE PLAN

     The purpose of the UCBH Holdings, Inc. 2006 Equity Incentive Plan is to enhance the long-term
shareholder value of UCBH Holdings, Inc. (the “Company”), by offering opportunities to employees,
outside directors, and officers of the Company and its Affiliates to participate in the Company’s
growth and success, and to encourage them to remain in the service of the Company and its
Affiliates, and to acquire and maintain stock ownership in the Company. Capitalized terms shall
have the meaning set forth in Section 1.

     The Stock Option Plan was adopted by the Company’s Board of Directors and stockholders on July
30, 1998 and subsequently amended as of April 29, 1999, April 26, 2001, April 24, 2003, September
24, 2004, April 21, 2005, and May 19, 2005. The Stock Option Plan was amended and restated as the
UCBH Holdings, Inc. 2006 Equity Incentive Plan by the Board of Directors and the stockholders at
the 2006 Annual Meeting of Stockholders on May 18, 2006 and has been subsequently amended as of May
11, 2007 and May 17, 2007.

1. DEFINITIONS.

     “Affiliate” means (i) a member of a controlled group of corporations of which the Company is a
member or (ii) an unincorporated trade or business which is under common control with the Company
as determined in accordance with Section 414(c) of the Internal Revenue Code of 1986, as amended,
(the “Code”) and the regulations issued thereunder. For purposes hereof, a “controlled group of
corporations” shall mean a controlled group of corporations as defined in Section 1563(a) of the
Code determined without regard to Section 1563(a)(4) and (e)(3)(C).

     “Alternate Option Payment Mechanism” refers to one of several methods available to a
Participant to fund the exercise of a stock option set out in Section 11.

     “Award” means an award or grant of one or some combination of one or more Non-statutory Stock
Options, Incentive Stock Options, Limited Rights, Restricted Stock, Restricted Stock Units, and
Dividend Equivalent Rights, or any other right, interest or option relating to shares of Common
Stock granted pursuant to the Plan.

     “Bank” means United Commercial Bank.

     “Board of Directors” or “Board” means the board of directors of the Company.

     “Change in Control” means an event or series of events of a nature that at such time: (i) any
“person” (as the term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the
“beneficial owner” (as determined under Rule 13d of such Act), directly or indirectly, of voting
securities of the Bank or the Company representing fifty percent (50%) or more of the Bank’s or the
Company’s outstanding voting securities or right to acquire such securities except for any voting
securities of the Bank purchased by the Company and any voting securities purchased by any employee
benefit plan of the Bank or the Company, or (ii) a plan of reorganization, merger, consolidation,
sale of all or substantially all the assets of the Bank or the Company or similar transaction
occurs in which the Bank or the Company is not the resulting entity.

1

 

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Committee” means a committee consisting of the entire Board of Directors or consisting solely
of two or more members of the Board of Directors who satisfy the requirements of Rule 16b-3 of the
Exchange Act, Section 162(m) of the Code, and the rules of any applicable stock exchange or
national market system or quotation system on which the Common Stock is listed or quoted.

     “Common Stock” means the Common Stock of the Company, par value, $.01 per share or any stock
exchanged for shares of Common Stock pursuant to Section 16 hereof.

     “Company” means UCBH Holdings, Inc.

     “Date of Grant” means the effective date of an Award.

     “Disability” means the permanent and total inability by reason of mental or physical
infirmity, or both, of a Participant to perform the work customarily assigned to him, or in the
case of a Director, to serve on the Board. Additionally, a medical doctor selected or approved by
the Board of Directors must advise the Committee that it is either not possible to determine when
such Disability will terminate or that it appears probable that such Disability will be permanent
during the remainder of said Participant’s lifetime.

     “Dividend Equivalent Right” means an Award granted pursuant to Section 10.

     “Effective Date” means May 17, 2007, the effective date of this amendment and restatement of
the Plan.

     “Employee” means any person who is currently employed by the Company or an Affiliate,
including officers, but such term shall not include Outside Directors; provided, however, that for
purposes of awards of Incentive Stock Options, “Employee” shall mean any person, including an
officer, who is currently employed by the Company or any “parent corporation” or “subsidiary
corporation” of the Company as defined in Sections 424(e) and 424(f) of the Code, respectively.

     “Employee Participant” means an Employee who holds an outstanding Award under the terms of the
Plan.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Exercise Price” means the purchase price per share of Common Stock deliverable upon the
exercise of each Option in order for the option to be exchanged for shares of Common Stock.

     “Fair Market Value” means, when used in connection with the Common Stock on a certain date,
the price of the last reported sale of the Common Stock at the close of the regular trading day’s
market (not including any after hours market), as reported by the National Association of
Securities Dealers Automated Quotation System (“NASDAQ”), the New York Stock Exchange (“NYSE”) or
the American Stock Exchange (“AMEX”) (as published by the Wall Street Journal, if published) on
such date or if the Common Stock was not traded on such date, on the next preceding day on which
the Common Stock was traded thereon or the last previous date on which a sale is reported. If the
Common Stock is not reported on the NASDAQ, AMEX or the NYSE, the Fair Market Value of the Common
Stock is the value so determined by the Board in good faith by reasonable application of a
reasonable valuation method in accordance with Section 409A of the Code.

2

 

     “Incentive Stock Option” means an Option granted by the Committee to a Participant, which
Option is designated by the Committee as an Incentive Stock Option pursuant to Section 7 hereof and
is intended to meet the requirements of Section 422 of the Code or any successor provision thereto.

     “Limited Right” means the right to receive an amount of cash based upon the terms set forth in
Section 8 hereof.

     “Non-statutory Stock Option” means an Option granted by the Committee to a Participant
pursuant to Section 6 hereof, which is not designated by the Committee as an Incentive Stock Option
or which is redesignated by the Committee under Section 7 as a Non-Statutory Stock Option.

     “Option” means the right to buy a fixed amount of Common Stock at the Exercise Price within a
limited period of time designated as the term of the option as granted under Section 6 or 7 hereof.

     “Outside Director” means a member of the Board of Directors of the Company or its Affiliates,
who is not also an Employee.

     “Outside Director Participant” means an Outside Director who holds an outstanding Award under
the terms of the Plan.

     “Participant” means any Employee or Outside Director who holds an outstanding Award under the
terms of the Plan.

     “Performance Goal” means the goals determined by the Committee, in its discretion, to be
applicable to a Participant with respect to an Award. As determined by the Committee, the
Performance Goals applicable to an Award may provide for a targeted level or levels of achievement
using certain Company or individual performance measures. The Performance Goals may differ from
Participant to Participant and from Award to Award. Any criteria used may be measured in absolute
terms or relative to comparison companies. Such Performance Goals shall be based on one or more of
the following criteria: (i) earnings; (ii) earnings per share; (iii) earnings growth; (iv) return
on assets; (v) return on equity; (vi) efficiency ratio; (vii) credit quality; and (viii) net
interest margin. The Committee shall have the authority to make equitable adjustments to the
Performance Goals in recognition of unusual or non-recurring events affecting the Company or the
financial statements of the Company, in response to changes in applicable laws, or to account for
items of gain, loss or expense determined to be extraordinary or unusual in nature or infrequent in
occurrence or related to the disposal of a segment of a business or related to a change in
accounting principles; provided, however, that to the extent required for compliance with the
exclusion from the limitation on deductibility of compensation under Section 162(m) of the Code, no
adjustment shall be made that would result in an increase in the compensation of any Participant
whose compensation is subject to the limitation on deductibility under Section 162(m) of the Code
for the applicable year. Any Performance Goals must cover a period of at least one year.

     “Plan” means the UCBH Holdings, Inc. 2006 Equity Incentive Plan.

     “Restricted Stock” means any share of Common Stock granted under Section 9, the rights of
ownership of which are subject to restrictions prescribed by the Committee.

     “Restricted Stock Unit” or “RSU” means a right granted to a Participant to receive shares of
Common Stock upon satisfaction of specialized performance or other criteria, such as continuous
service.

3

 

     “Restriction Period” means the period during which the shares of Restricted Stock are subject
to restrictions and therefore, the shares are subject to a substantial risk of forfeiture. Such
restrictions may be based on continuous service, the achievement of Performance Goals, the
occurrence of other events as determined by the Committee, or a combination thereof.

     “Retirement” with respect to an Employee Participant means termination of employment which
constitutes retirement under any tax qualified plan maintained by the Bank or the Company. However,
“Retirement” will not be deemed to have occurred for purposes of this Plan if a Participant
continues to serve on the Board of Directors of the Company or its Affiliates even if such
Participant is receiving retirement benefits under any retirement plan of the Bank or the Company.
With respect to an Outside Director Participant, “Retirement” means the termination of service from
the Board of Directors of the Company or its Affiliates following written notice to the Board as a
whole of such Outside Director’s intention to retire or retirement as determined by the Bank (or
the Company’s) bylaws, except that an Outside Director shall not be deemed to have retired for
purposes of the Plan in the event he continues to serve as a consultant to the Board or as an
advisory director.

     “Termination for Cause” shall mean, in the case of an Outside Director, removal from the Board
of Directors, or, in the case of an Employee, termination of employment, in both such cases as
determined by the Board of Directors, because of an act or acts of gross misconduct, willful
neglect of duties or commission of a felony or equivalent violation of law. No act, or the failure
to act, on Participant’s part shall be “willful” unless done, or omitted to be done, not in good
faith and without reasonable belief that the action or omission was in the best interest of the
Bank, the Company or one of its Affiliates.

2. ADMINISTRATION.

     (a) The Plan shall be administered by the Committee. The Committee is authorized, subject to
the provisions of the Plan, to grant awards to Employees and Outside Directors and to establish
such rules and regulations as it deems necessary for the proper administration of the Plan and to
make whatever determinations and interpretations in connection with the Plan it deems necessary or
advisable. All determinations and interpretations made by the Committee shall be binding and
conclusive on all Participants in the Plan and on their legal representatives and beneficiaries.
The Plan is designed so that Awards granted hereunder intended to comply with the requirements for
“performance-based compensation” within the meaning of Section 162(m) of the Code may comply with
such requirements, and the Committee shall interpret the Plan and Awards in a manner consistent
with such requirements.

     (b) The Committee may delegate all authority for: the determination of forms of payment to be
made by or received by the Plan; the execution of Award Agreements; the determination of Fair
Market Value; and the determination of all other aspects of administration of the Plan to the
executive officer(s) of the Company; provided, however, any such delegation shall be permissible
only to the extent it does not cause any Award to fail to qualify as: (i) “performance-based
compensation” within the meaning of Section 162(m) of the Code, as applicable; or (ii) an exempt
transaction under Rule 16b-3 under Exchange Act. The Committee may rely on the descriptions,
representations, reports and estimates provided to it by the management of the Company for
determinations to be made pursuant to the Plan. Notwithstanding any other plan provision, any
discretionary awards to Outside Directors shall be administered solely by a committee that consists
entirely of independent directors, determined in accordance with the Company’s guidelines for
director independence.

3. TYPES OF AWARDS AND RELATED RIGHTS.

     The Committee shall have the authority, in its sole discretion, to determine the type or types
of Awards to be made under the Plan; provided, however, after October 3, 2004, the Committee may
only award or grant those Awards that either comply with the applicable requirements of Section
409A of the Code, or do

4

 

not result in the deferral of compensation within the meaning of Section 409A of the Code.
Such Awards may include, but are not limited to, Incentive Stock Options, Nonqualified Stock
Options, Limited Rights, Restricted Stock, Restricted Stock Units, and Dividend Equivalent Rights.
Awards may be granted singly, in combination or in tandem so that the settlement or payment of one
automatically reduces or cancels the other. Awards may also be made in combination or in tandem
with, as alternatives to, or as the payment form for, grants or rights under any other employee or
compensation plan of the Company.

4. STOCK SUBJECT TO THE PLAN.

     (a) General. Subject to adjustment as provided in Section 16, the maximum number of shares
reserved for Awards under the Plan is 26,657,6481 shares of the Common Stock. These
shares of Common Stock may be either authorized but unissued shares or authorized shares previously
issued and reacquired by the Company. To the extent that Awards are granted under the Plan, the
shares underlying such Awards will be unavailable for any other use including future grants under
the Plan except that, to the extent that Awards terminate, expire, are forfeited or are canceled
without having been exercised (in the case of Limited Rights, exercised for cash), new Awards may
be made with respect to these shares.

     (b) Limitations.

     (i) Subject to adjustment as provided in Section 16, not more than an aggregate of 26,657,648
Shares may be issued under the Plan as Incentive Stock Options.

     (ii) Subject to adjustment as provided in Section 16, the maximum number of shares of Common
Stock with respect to which Options or Limited Rights, or a combination thereof, may be granted
during any calendar year to any individual Participant shall be 2,000,000, and the maximum number
of Shares with respect to which Restricted Stock or Restricted Stock Units may be granted under the
Plan shall be 200,000. These limitations shall be applied and construed consistently with Section
162(m) of the Code.

5. ELIGIBILITY.

     Subject to the terms herein all Employees and Outside Directors shall be eligible to receive
Awards under the Plan.

6. NON-STATUTORY STOCK OPTIONS.

     To the extent permitted by Section 3, the Committee may, subject to the limitations of the
Plan and the availability of shares reserved but unawarded in the Plan, from time to time, grant
Non-statutory Stock Options to Employees and Outside Directors and, upon such terms and conditions
as the Committee may determine, grant Non-statutory Stock Options in exchange for and upon
surrender of previously granted Awards under this Plan. Non-statutory Stock Options granted under
this Plan are subject to the following terms and conditions:

     (a) Exercise Price. The Exercise Price of each Non-statutory Stock Option shall be
determined by the Committee on the date the option is granted. Such Exercise Price shall not be
less than 100% of the Fair Market Value of the Common Stock on the Date of Grant. Shares may be
purchased only upon full payment of the Exercise Price or upon operation of an Alternate Option
Payment Mechanism set out in Section 11 hereof.

 

			
	1	 	This number and all other share numbers
referred to in this Plan reflect the adjustments pursuant to the
Company’s stock splits and additional shares reserved pursuant to the
Plan as of May 17, 2007.

5

 

     (b) Terms of Options. The term during which each Non-statutory Stock Option may be
exercised shall be determined by the Committee, but in no event shall a Non-statutory Stock
Option be exercisable in whole or in part more than 10 years from the Date of Grant. The
Committee shall determine the date on which each Non-statutory Stock Option shall become
exercisable; provided that except as otherwise specifically permitted in this Plan,
Non-statutory Stock Options shall become exercisable in equal increments over a period of not
less than three years. The shares comprising each installment may be purchased in whole or in
part at any time during the term of such Option after such installment becomes exercisable. The
Committee may, in its sole discretion, accelerate the time at which any Non-statutory Stock
Option may be exercised in whole or in part; provided, however, except in the case of death,
disability, retirement or a Change of Control, the committee shall not, without approval of the
Company’s shareholders, accelerate the time at which any Non-statutory Stock Option may be
exercised. The acceleration of any Non-statutory Stock Option under the authority of this
paragraph creates no right, expectation or reliance on the part of any other Participant or that
certain Participant regarding any other unaccelerated Non-statutory Stock Options.

     (c) Termination of Employment or Service. Upon the termination of a Participant’s
employment or service in the event of Disability, death or within twelve months after a Change
in Control, all Non-statutory Stock Options shall immediately vest and be exercisable for the
shorter of (i) one year after such termination; or (ii) the term of the option as set forth in
Section 6(b). In the event of Termination for Cause or termination of a Participant’s employment
or service for any other reason including voluntary resignation, all Non-statutory Stock Options
shall be exercisable for the shorter of (i) one year after such termination; or (ii) the term of
the Option as set forth in Section 6(b), only as to those options which have vested as of the
date of the Participant’s termination of employment or service. Any unvested Non-statutory Stock
Options shall become null and void and shall not be exercisable by or delivered to the
Participant after such date of termination.

     (d) Awards to Outside Directors. Upon election or appointment to the Board each Outside
Director shall receive a grant of 24,000 Non-statutory Stock Options. For each additional
three-year period of service, each Outside Director shall receive an additional grant of 24,000
Non-statutory Stock Options. All Non-statutory Stock Options granted to Outside Directors shall
vest annually in equal portions over three years. All Awards to Outside Directors are subject
to the terms and conditions of this Plan.

7. INCENTIVE STOCK OPTIONS.

     To the extent permitted by Section 3, the Committee may, subject to the limitations of the
Plan and the availability of shares reserved but unawarded in the Plan, from time to time, grant
Incentive Stock Options to Employees. Incentive Stock Options granted pursuant to the Plan shall be
subject to the following terms and conditions:

     (a) Exercise Price. The Exercise Price of each Incentive Stock Option shall be not less
than 100% of the Fair Market Value of the Common Stock on the Date of Grant. However, if at the
time an Incentive Stock Option is granted to a Participant, the Participant owns Common Stock
representing more than 10% of the total combined voting securities of the Company and any
“parent corporation” or “subsidiary corporation” of the Company as defined in Sections 424(e)
and 424(f) of the Code, respectively (or, under Section 424(d) of the Code, is deemed to own
Common Stock representing more than 10% of the total combined voting power of all classes of
stock of the Company and any “parent corporation” or “subsidiary corporation” of the Company as
defined in Sections 424(e) and 424(f) of the Code, respectively, by reason of the ownership of
such classes of stock, directly or indirectly, by or for any brother, sister, spouse, ancestor
or lineal descendent of such Participant, or by or for any corporation, partnership, estate or
trust of which such Participant is a shareholder, partner or

6

 

beneficiary), (“10% Owner”), the Exercise Price per share of Common Stock deliverable upon
the exercise of each Incentive Stock Option shall not be less than 110% of the Fair Market Value
of the Common Stock on the Date of Grant. Shares may be purchased only upon payment of the full
Exercise Price or upon operation of an Alternate Option Payment Mechanism set out in Section 11
hereof.

     (b) Amounts of Options. Incentive Stock Options may be granted to any Employee in such
amounts as determined by the Committee; provided that the amount granted is consistent with the
terms of Section 422 of the Code. In the case of an option intended to qualify as an Incentive
Stock Option, the aggregate Fair Market Value (determined as of the time the Option is granted)
of the Common Stock with respect to which Incentive Stock Options granted are exercisable for
the first time by the Participant during any calendar year (under all plans of the Participant’s
employer corporation and its parent and subsidiary corporations) shall not exceed $100,000. The
provisions of this Section 7(b) shall be construed and applied in accordance with Section 422(d)
of the Code and the regulations, if any, promulgated thereunder. To the extent an award under
this Section 7 exceeds this $100,000 limit, the portion of the Options in excess of such limit
shall be deemed a Non-statutory Stock Option. The Committee shall have discretion to redesignate
Options granted as Incentive Stock Options as Non-Statutory Stock Options. Such redesignation
shall not be deemed to be a new grant or a regrant of such Options. Such Non-statutory Stock
Options shall be subject to Section 6 hereof.

     (c) Terms of Options. The term during which each Incentive Stock Option may be exercised
shall be determined by the Committee, but in no event shall an Incentive Stock Option be
exercisable in whole or in part more than 10 years from the Date of Grant. If at the time an
Incentive Stock Option is granted to a Participant who is a 10% Owner, the Incentive Stock
Option granted to such Employee Participant shall not be exercisable after the expiration of
five years from the Date of Grant. No Incentive Stock Option granted under this Plan is
transferable except by will or the laws of descent and distribution and is exercisable in his
lifetime only by the Employee Participant to whom it is granted.

     The Committee shall determine the date on which each Incentive Stock Option shall become
exercisable; provided that except as otherwise specifically permitted in this Plan, Incentive
Stock Options shall become exercisable in equal increments over a period of not less than three
years. The shares comprising each installment may be purchased in whole or in part at any time
during the term of such option after such installment becomes exercisable. The Committee may, in
its sole discretion, accelerate the time at which any Incentive Stock Option may be exercised in
whole or in part; provided, however, except in the case of death, disability, retirement or a
Change of Control, the committee shall not, without approval of the Company’s shareholders,
accelerate the time at which any Incentive Stock Option may be exercised. The acceleration of
any Incentive Stock Option under the authority of this paragraph creates no right, expectation
or reliance on the part of any other Participant or that certain Participant regarding any other
unaccelerated Incentive Stock Options.

     (d) Termination of Employment. Upon the termination of a Participant’s employment or
service in the event of Disability, Retirement, death or within twelve months after a Change in
Control, all Incentive Stock Options shall immediately vest and be exercisable for the shorter
of (i) one year after such termination; or (ii) the term of the Option as set forth in Section
7(c). In the event of Termination for Cause or termination of a Participant’s employment or
service for any other reason including voluntary resignation, all Incentive Stock Options shall
be exercisable for the shorter of (i) one year after such termination; or (ii) the term of the
Option as set forth in Section 7(c) only as to those options which have vested as of the date of
the Participant’s termination of employment or service. Any unvested Incentive Stock Options
shall become null and void and shall not be exercisable by or delivered to the Participant after
such date of termination.

7

 

     (e) Compliance with Code. The Options granted under this Section are intended to qualify
as incentive stock options within the meaning of Section 422 of the Code, but the Company makes
no warranty as to the qualification of any option as an incentive stock option within the
meaning of Section 422 of the Code. All Options that do not so qualify shall be treated as
Non-statutory Stock Options.

8. LIMITED RIGHTS.

     To the extent permitted by Section 3, simultaneously with the grant of any Option to an
Employee, the Committee may grant a Limited Right with respect to all or some of the shares covered
by such Option. Limited Rights granted under this Plan are subject to the following terms and
conditions:

     (a) Terms of Rights. In no event shall a Limited Right be exercisable in whole or in part
before the expiration of six months from the Date of Grant of the Limited Right. A Limited Right
may be exercised only in the event of a Change in Control.

The Limited Right may be exercised only when the underlying Option is eligible to be exercised,
and only when the Fair Market Value of the underlying shares on the day of exercise is greater
than the Exercise Price of the underlying Option.

Upon exercise of a Limited Right, the underlying Option shall cease to be exercisable. Upon
exercise or termination of an Option, any related Limited Rights shall terminate. The Limited
Rights may be for no more than 100% of the difference between the Exercise Price and the Fair
Market Value of the Common Stock subject to the underlying option. The Limited Right is
transferable only when the underlying option is transferable and under the same conditions.

     (b) Payment. Upon exercise of a Limited Right, the holder shall promptly receive from the
Company an amount of cash or some other payment option as determined in the Committee’s
discretion, equal to the difference between the Exercise Price of the underlying option and the
Fair Market Value of the Common Stock subject to the underlying Option on the date the Limited
Right is exercised, multiplied by the number of shares with respect to which such Limited Right
is being exercised.

9. RESTRICTED STOCK.

     (a) Grant of Restricted Stock. To the extent permitted by Section 3, and subject to the terms
and conditions of the Plan, the Committee may grant Restricted Stock and Restricted Stock Units in
such amounts as the Committee, in its sole discretion, shall determine. The Committee shall have
complete discretion in determining the number of shares of Restricted Stock and Restricted Stock
Units granted to each Participant (subject to Section 4(b) herein) and, consistent with the
provisions of the Plan, in determining the terms and conditions pertaining to such Restricted Stock
and Restricted Stock Units. Any Restriction Period shall end only on the terms and conditions
determined by the Committee and specified in the Award agreement, which may include the attainment
of one or more Performance Goals or upon one or more specified dates; provided, however that except
as otherwise specifically permitted in this Plan, any Restriction Period that would end, if at all,
solely upon the passage of time, shall end in equal increments over a period of not less than three
years, and, provided further, except in the case of death, disability, retirement or a Change of
Control, the Committee shall not, without approval of the Company’s shareholders, accelerate the
time at which any Restriction Period shall end.

     (b) Transferability. Except as provided in this Section 9, Restricted Stock and RSUs granted
herein may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated
until the end of the applicable Restriction Period established by the Committee and specified in
the Award agreement. However, subject to Section 9(g), in no event may any Restricted Stock and
RSUs granted under the Plan

8

 

become vested in a Participant prior to six (6) months following the date of its grant. All
rights with respect to the Restricted Stock and RSUs granted to a Participant under the Plan shall
be available during his or her lifetime only to such Participant.

     (c) Certificate Legend. Each certificate representing Restricted Stock granted pursuant to the
Plan may bear a legend substantially as follows:

“The sale or other transfer of the shares of stock represented by this certificate, whether
voluntary, involuntary or by operation of law, is subject to certain restrictions on transfer as
set forth in the Plan, and in an Award agreement. A copy of such Plan and such agreement may be
obtained from the company.”

     The Company shall have the right to retain the certificates representing Restricted Stock in
the Company’s possession until such time as all restrictions applicable to such shares have been
satisfied.

     (d) Termination of Restriction Period. Upon satisfaction of the terms and conditions specified
in the Award agreement that apply to a Restriction Period: (i) with respect to Restricted Stock,
the Participant shall be entitled to have the legend referred to in Section 9(c) removed from his
or her shares of Restricted Stock after the last day of the Restriction Period; and (ii) with
respect to RSUs, the Company shall issue the shares associated with such RSUs as soon as
administratively feasible following the last day of the Restriction Period, but in no event later
than the March 15th of the year following the year in which such Restriction Period ends. If the
terms and conditions specified in the Award agreement that apply to a Restriction Period have not
been satisfied, the Participant’s Awards of Restricted Stock and Restricted Stock Units subject to
such Restriction Period shall become null and void and the Participant shall forfeit all rights
with respect to such Awards.

     (e) Voting Rights. Except as otherwise provided in an Award agreement, during the Restriction
Period, Participants holding Restricted Stock may exercise full voting rights with respect to those
shares.

     (f) Dividends and Other Distributions. Except as otherwise provided in an Award agreement,
during the Restriction Period, Participants holding Restricted Stock and RSUs shall be credited
with all regular cash dividends paid with respect to all shares and units while they are so held.
All cash dividends and other distributions paid with respect to Restricted Stock and RSUs shall be
credited to Participants subject to the same restrictions on transferability and forfeitability as
the Restricted Stock and RSUs with respect to which they were paid. If any such dividends or
distributions are paid in shares, such shares shall be subject to the same restrictions on
transferability and forfeitability as the Restricted Stock and RSUs with respect to which they were
paid. Subject to the restrictions on vesting and the forfeiture provisions, all cash dividends
credited to a Participant shall be paid to the Participant as soon as administratively feasible
following the full vesting of the Restricted Stock and RSUs with respect to which such dividends
were paid, but in no event later than the March 15th of the year following the year in which full
vesting of such Restricted Stock and RSUs occurs. The provisions of this Section 9(f) are subject
to the right of the Committee to determine otherwise at the time of grant.

     (g) Termination of Employment. Except as otherwise provided in an Award agreement, upon the
termination of a Participant’s employment or service in the event of Disability, death or within
twelve months after a Change in Control, the Participant’s outstanding Awards of Restricted Stock
and any Restricted Stock Units shall immediately vest. In the event of Termination for Cause or
termination of a Participant’s employment or service for any other reason including voluntary
resignation, the Participant’s outstanding Awards of Restricted Stock and any Restricted Stock
Units shall become null and void and the Participant shall forfeit all rights with respect to such
Awards. Any termination provisions shall be determined in the sole discretion of the Committee,
need not be uniform among all

9

 

grants of Restricted Stock or RSUs or among Participants and may reflect distinctions based on
the reasons for termination of employment.

10. DIVIDEND EQUIVALENT RIGHTS.

     To the extent permitted by Section 3, any Awards under the Plan may, in the Committee’s
discretion, earn Dividend Equivalent Rights. In respect of any Award that is outstanding on the
dividend record date for Common Stock, the Participant may be credited with an amount equal to the
cash or stock dividends or other distributions that would have been paid on the shares of Common
Stock covered by such Award had such covered shares been issued and outstanding on such dividend
record date. The Committee shall establish such rules and procedures governing the crediting of
Dividend Equivalent Rights, including the timing, form of payment and payment contingencies of such
Dividend Equivalent Rights, as it deems are appropriate or necessary.

11. ALTERNATE OPTION PAYMENT MECHANISM.

     The Committee has sole discretion to determine what form of payment it will accept for the
exercise of an Option. The Committee may indicate acceptable forms in the Award agreement covering
such Options or may reserve its decision to the time of exercise. No Option is to be considered
exercised until payment in full is accepted by the Committee or its agent.

     (a) Cash Payment. The exercise price may be paid in cash or by certified check.

     (b) Borrowed Funds. To the extent not prohibited by Section 402 of the Sarbanes-Oxley Act of
2002 and to the extent otherwise permitted by law, the Committee may permit all or a portion of the
exercise price of an Option to be paid through borrowed funds.

     (c) Exchange of Common Stock.

          (i) The Committee may permit payment by the tendering of previously acquired shares of Common
Stock. This includes the use of “pyramiding transactions” whereby some number of Options are
exercised. The shares gained through the exercise are then tendered back to the Bank as payment for
some other number of Options. This transaction may be repeated as needed to exercise all of the
Options available.

          (ii) Any shares of Common Stock tendered in payment of the exercise price of an Option shall
be valued at the Fair Market Value of the Common Stock on the date prior to the date of exercise.

     (d) By Cashless Exercise. To the extent not prohibited by Section 402 of the Sarbanes-Oxley
Act of 2002, by delivery of a properly executed exercise notice, together with irrevocable
instructions, to

          (i) a brokerage firm designated by the Company to deliver promptly to the Company the
aggregate amount of sale or loan proceeds to pay the exercise price and any withholding tax
obligations that may arise in connection with the exercise and

          (ii) the Company to deliver the certificates for such purchased shares directly to such
brokerage firm, all in accordance with the regulations of the Federal Reserve Board.

     (e) Net Issue Exercise. Surrender of shares of Common Stock (including withholding of shares
otherwise deliverable upon exercise of the Award) having a Fair Market Value on the date of
surrender not less than the aggregate Exercise Price (including tax withholding in accordance with
section 17) of the shares being acquired.

10

 

     (f) Such other medium as the Committee determines, in its sole discretion.

     12. RIGHTS OF A SHAREHOLDER.

     No Participant shall have any rights as a shareholder with respect to any shares covered by an
Option until the date of issuance of a stock certificate for such shares. Nothing in this Plan or
in any Award granted confers on any person any right to continue in the employ or service of the
Company or its Affiliates or interferes in any way with the right of the Company or its Affiliates
to terminate a Participant’s services as an officer or other employee at any time.

13. NON-TRANSFERABILITY.

     Except to the extent permitted or restricted by the Code, the rules promulgated under Section
16(b) of the Exchange Act or any successor statutes or rules:

     (i) The recipient of an Award shall not sell, transfer, assign, pledge, or otherwise
encumber shares subject to the Award until full vesting of such shares has occurred. For
purposes of this section, the separation of beneficial ownership and legal title through the use
of any “swap” transaction is deemed to be a prohibited encumbrance.

     (ii) Unless determined otherwise by the Committee and except in the event of the
Participant’s death or pursuant to a domestic relations order, an Award is not transferable and
may be earned in his lifetime only by the Participant to whom it is granted. Upon the death of a
Participant, an Award is transferable by will or the laws of intestate succession. The
designation of a beneficiary does not constitute a transfer.

     (iii) If a recipient of an Award is subject to the provisions of Section 16 of the Exchange
Act, shares of Common Stock subject to such Award may not, without the written consent of the
Committee (which consent may be given in the Stock Award Agreement), be sold or otherwise
disposed of within six months following the date of grant of the Award.

14. AGREEMENT WITH PARTICIPANTS.

     Each Award will be evidenced by a written agreement, executed by the Participant and the
Company or its Affiliates that describes the conditions for receiving the Awards including the date
of Award, the Exercise Price, the terms or other applicable periods, and other terms and conditions
as may be required or imposed by the Plan, the Committee, the Board of Directors, tax law
considerations or applicable securities law considerations.

15. DESIGNATION OF BENEFICIARY.

     A Participant may, with the consent of the Committee, designate a person or persons to
receive, in the event of death, any Award to which the Participant would then be entitled. Such
designation will be made upon forms supplied by and delivered to the Company and may be revoked in
writing. If a Participant fails effectively to designate a beneficiary, then the Participant’s
estate will be deemed to be the beneficiary.

11

 

16. DILUTION AND OTHER ADJUSTMENTS.

     (a) In the event of any change in the outstanding shares of Common Stock by reason of any
stock dividend or split, recapitalization, merger, consolidation, spin-off, reorganization,
combination or exchange of shares, or other similar corporate change, or other increase or decrease
in such shares without receipt or payment of consideration by the Company, the Committee shall make
such equitable changes or adjustments as it deems necessary or appropriate to any or all of (i) the
number and kinds of shares of Common Stock or other property (including cash) that may thereafter
be issued in connection with Awards; (ii) the number and kind of shares of Common Stock or other
property (including cash) issued or issuable with respect to outstanding Awards; (iii) the exercise
price, grant price, or purchase price relating to any Award; and (iv) the Performance Goals
applicable to outstanding Awards. Notwithstanding the foregoing, (a) with respect to Incentive
Stock Options, any such adjustment shall be made in accordance with Section 424(h) of the Code and
the regulations thereunder; and (b) the Committee shall consider the impact of Section 409A of the
Code on any such adjustment. No such adjustments may, however, materially change the value of
benefits available to a Participant under a previously granted Award. All awards under this Plan
shall be binding upon any successors or assigns of the Company.

     (b) Notwithstanding anything in the Plan to the contrary, the Committee may grant Awards under
the Plan in substitution for awards issued under other plans, or assume under the Plan awards
issued under other plans, if the other plans are or were plans of other acquired entities
(“Acquired Entities”) (or the parent of the Acquired Entity) and the new Award is substituted, or
the old award is assumed, by reason of a merger, consolidation, acquisition of property or of
stock, reorganization or liquidation (the “Acquisition Transaction”); provided, however, (i) any
substitution of a new Option pursuant to a corporate transaction for an outstanding option intended
to qualify as an incentive stock option under Section 422 of the Code or the assumption of such an
outstanding option pursuant to a corporate transaction shall satisfy Section 424 of the Code and
the regulations thereunder; and (ii) any substitution of a new Option pursuant to a corporate
transaction for an outstanding option or the assumption of an outstanding option pursuant to a
corporate transaction shall be designed not to be treated as the grant of a new stock right or a
change in the form of payment for purposes of Section 409A of the Code. In the event that a written
agreement pursuant to which the Acquisition Transaction is completed is approved by the Board and
said agreement sets forth the terms and conditions of the substitution for or assumption of
outstanding awards of the Acquired Entity, said terms and conditions shall be deemed to be the
action of the Committee without any further action by the Committee, except as may be required for
compliance with Rule 16b-3 under the Exchange Act, and the persons holding such Awards shall be
deemed to be Participants.

     (c) The Committee shall have the discretion, exercisable at any time before a sale, merger,
consolidation, reorganization, liquidation or other corporate transaction, as defined by the
Committee, to take such further action as it determines to be necessary or advisable, and fair and
equitable to Participants, with respect to Awards. Such authorized action may include (but shall
not be limited to) establishing, amending or waiving the type, terms, conditions or duration of, or
restrictions on, Awards so as to provide for earlier, later, extended or additional time for
exercise, payment or settlement or lifting restrictions, differing methods for calculating payments
or settlements, alternate forms and amounts of payments and settlements and other modifications,
and the Committee may take such actions with respect to all Participants, to certain categories of
Participants or only to individual Participants; provided, however, the Committee may act only in a
manner that either complies with the applicable requirements of Section 409A of the Code, or does
not result in the deferral of compensation within the meaning of Section 409A of the Code. The
Committee may take such action before or after granting Awards to which the action relates and
before or after any public announcement with respect to such sale, merger, consolidation,
reorganization, liquidation or change in control that is the reason for such action.

12

 

17. TAX WITHHOLDING.

     Prior to the delivery of any shares of Common Stock or cash pursuant to an Award (or exercise
thereof), the Company shall have the right to deduct from the shares issuable or the cash payable,
or to require a Participant to remit to the Company, an amount sufficient to satisfy any federal,
state, local and foreign taxes, if any, required by law to be withheld by the Company with respect
to such Award (or exercise thereof). Alternatively or in addition, the Company, in its sole
discretion, shall have the right to require a Participant, through payroll withholding, cash
payment or otherwise, including by means of a cashless exercise, to make adequate provision for any
such tax withholding obligations of the Company arising in connection with an Award. The Company
may also accept from Participant the tender of a number of whole shares of Common Stock having a
Fair Market Value equal to all or any part of the federal, state, local and foreign taxes, if any,
required by law to be withheld by the Company with respect to an Option or the shares acquired upon
the exercise thereof.

18. AMENDMENT AND TERMINATION.

     The Board of Directors may at any time, and from time to time, modify or amend the Plan in any
respect, prospectively or retroactively; provided however, that (i) provisions governing grants of
Incentive Stock Options, unless permitted by the rules and regulations or staff pronouncements
promulgated under the Code, shall be submitted for shareholder approval to the extent required by
such law, regulation or interpretation, and (ii) to the extent required by NASD Rules, any material
amendments to the Plan shall not be effective until shareholder approval has been obtained.

     Failure to ratify or approve amendments or modifications by shareholders shall be effective
only as to the specific amendment or modification requiring such ratification. Other provisions,
sections, and subsections of this Plan will remain in full force and effect.

     The Company shall not, without prior approval of the Company’s Shareholders, reduce the
exercise price of any option, amend or cancel an outstanding option for the purpose of repricing,
replacing or regranting an option previously granted for cash or other consideration.

     No such termination, modification or amendment may affect the rights of a Participant under an
outstanding Award without the written permission of such Participant.

19. EFFECTIVE DATE OF PLAN.

     The Effective Date of the Plan shall be May 17, 2007.

20. TERMINATION OF THE PLAN.

     The right to grant Awards under the Plan will terminate ten (10) years after the Effective
Date of the Plan; provided, however, the Board of Directors has the right to suspend or terminate
the Plan at any time, provided that no such action will, without the consent of a Participant or
Outside Director Participant, adversely affect his vested rights under a previously granted Award.

21. APPLICABLE LAW.

     The Plan will be administered in accordance with the laws of the State of Delaware to the
extent not superseded by federal law.

13

 

22. SUCCESSORS AND ASSIGNS.

     All awards under this Plan shall be binding upon any successors or assigns of the Company
including any holding company that may be formed by the Company.

23. CLAIMS.

     Any person who makes a claim for benefits under the Plan or under any Award Agreement entered
into pursuant to the Plan shall file the claim in writing with the Committee. Written notice of the
disposition of the claim shall be delivered to the claimant within 60 days after filing. If the
claim is denied, the Committee’s written decision shall set forth (i) the specific reason or
reasons for the denial, (ii) a specific reference to the pertinent provisions of the Plan or Award
agreement on which the denial is based, and (iii) a description of any additional material or
information necessary for the claimant to perfect his or her claim and an explanation of why such
material or information is necessary. If the Committee describes additional material or
information and such material or information is available, the claimant may resubmit the claim
within 60 days after the claim is denied. No lawsuit may be filed by the claimant until a claim is
made and denied pursuant to this subsection. The claimant may not present additional material or
information in connection with any lawsuit unless the material or information has first been
submitted to the Committee in connection with the original claim or in connection with a
resubmission within 60 days after the claim was denied.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	UCBH Holdings, Inc.
	 
	 	 	 	 	 	 	 	 
	May
17, 2007

	 	 	 	By:	 	/s/ Thomas S. Wu 	 	 
	 	 	 	 	 	 	 	 	 
	Date

	 	 	 	 	 	Thomas S. Wu	 	 
	 

	 	 	 	 	 	Chairman, President and	 	 
	 

	 	 	 	 	 	Chief Executive Officer	 	 

[CORPORATE SEAL]

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]