Document:

Exhibit 10.1 - Amended and Restated 2004 Stock Incentive Plan

                          TEMECULA VALLEY BANCORP INC.
                      2004 STOCK INCENTIVE PLAN, as amended

     1.     Purpose of the Plan. The purpose of this Temecula Valley Bancorp
Inc.  Stock  Incentive  Plan  is  to  offer  certain  Employees,  Directors  and
Consultants  the  opportunity to acquire a proprietary  interest in the Company.
Through the Plan, the Company and its subsidiaries seek to attract, motivate and
retain highly competent  persons.  The success of the Company and its affiliates
is dependent upon the efforts of these persons.  The Plan provides for the grant
of Options to purchase  common stock.  An Option granted under the Plan may be a
Non-Statutory  Stock Option or an Incentive  Stock Option,  as determined by the
Administrator.

     2.     Definitions. As used herein, the following definitions shall apply.

     "2004 Plan" or "Plan" shall mean the  Temecula  Valley  Bancorp  Inc.  2004
     Stock  Incentive  Plan,  adopted  as of  March  24,  2004 by the  Board  of
     Directors, and as may be amended and restated from time to time.

     "Act" shall mean the Securities Act of 1933, as amended.

     "Administrator" shall mean the Board or any one of the Committees.

     "Affiliate"  shall mean any parent or  subsidiary  (as  defined in Sections
     424(e) and (f) of the Code) of the Company.

     "APB 25" shall  mean  Opinion 25 of the  Accounting  Principles  Board,  as
     amended, and any successor thereof.

     "Board" shall mean the Board of Directors of the Company.

     "Cause"  shall  have  the  meaning  given  to it  under  the  Participant's
     employment  agreement  with the  Company or  Affiliate,  or a policy of the
     Company or an  Affiliate.  If the  Participant  does not have an employment
     agreement or the employment  agreement does not define this term, or if the
     Company or an Affiliate does not have a policy that defines this term, then
     Cause shall include  malfeasance or gross misfeasance in the performance of
     duties or  conviction of illegal  activity in  connection  therewith or any
     conduct  detrimental to the interests of the Company or an Affiliate  which
     results in termination of the Participant's  service with the Company or an
     Affiliate, as determined by the Administrator.

     "Code" shall mean the Internal Revenue Code of 1986, as amended.

     "Committee"  shall mean a committee  appointed  by the Board in  accordance
     with Section 3 below.

     "Common Stock" shall mean the common stock of the Company, no par value.

     "Company"   shall  mean   Temecula   Valley   Bancorp  Inc.,  a  California
     corporation.

     "Consultant"  shall mean any natural person who performs bona fide Services
     for the Company or an  Affiliate  as a  consultant  or  advisor,  excluding
     Employees and Non-Employee Directors and provided that the Services are not
     in connection  with the offer or sale of  securities  in a capital  raising
     transaction and do not directly or indirectly  promote or maintain a market
     for the Company securities.

     "Date of Grant" shall mean the effective date as of which the Administrator
     grants an Option to an Optionee.

     "Director" shall mean a member of the Board.

     "Disability"  shall  mean  total and  permanent  disability  as  defined in
     Section 22(e)(3) of the Code.

     "Employee"  shall mean any individual  who is a common-law  employee of the
     Company or an Affiliate.
<PAGE>
     "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

     "Exercise  Price"  shall  mean the  exercise  price of a share of  Optioned
     Stock.

     "Fair Market Value" shall mean,  as of any date,  the value of Common Stock
     determined as follows:

            (i)      If the Common Stock is listed on any established stock
     exchange  or a national  market  system or an  electronic  bulletin  board,
     including without  limitation,  The Nasdaq Global Select Market, The Nasdaq
     Global Market, The Nasdaq Capital Market or the  Over-the-Counter  Bulletin
     Board,  its fair market  value  shall be the  closing  sales price for such
     stock (or the closing  representative  bid, if no sales were  reported)  as
     quoted on such exchange or system for the last market  trading day prior to
     the time of  determination,  as reported in The Wall Street Journal or such
     other source as the Administrator deems reliable;

            (ii)     If the Common Stock is regularly quoted by a recognized
     securities  dealer but  selling  prices are not  reported,  its fair market
     value shall be the mean  between the high bid and low asked  prices for the
     Common Stock quoted by such recognized securities dealer on the last market
     trading day prior to the day of determination; or

            (iii)    In the absence of an established market for the Common
     Stock,  its fair market value shall be  determined,  in good faith,  by the
     Administrator,  taking into account all material information available with
     respect  to the  value  of a share  of  Common  Stock,  including,  without
     limitation, the value of the tangible and intangible assets of the Company,
     the present value of its anticipated future cash flows, the market value of
     the stock or equity  interests in other entities  engaged in  substantially
     the same business,  recent arm's length transactions  involving the sale of
     Common  Stock,  and other  relevant  factors  such as control  premiums  or
     discounts for lack of marketability.

     "FASB" shall mean the Financial Accounting Standards Board.

     "Grantee" shall mean any person who is granted an Option.

     "Immediate  Family"  means  any  child,  stepchild,   grandchild,   parent,
     stepparent,  grandparent,  spouse, sibling,  mother-in-law,  father-in-law,
     son-in-law,  daughter-in-law,  brother-in-law  or  sister-in-law,  and also
     includes adoptive relationships.

     "Incentive  Stock  Option"  shall mean an Option  intended to qualify as an
     incentive stock option within the meaning of Section 422 of the Code.

     "Mature Shares" shall mean Shares that had been held by the Participant for
     a meaningful period of time such as six months or such other period of time
     that is consistent with FASB's interpretation of APB 25.

     "Non-Employee Director" shall mean a non-employee member of the Board.

     "Non-Statutory  Stock  Option" shall mean an Option not intended to qualify
     as an Incentive Stock Option.

     "Notice of Stock  Option  Grant"  shall mean the  notice  delivered  by the
     Company to the Optionee evidencing the grant of an Option.

     "Option" shall mean a stock option granted pursuant to the Plan.

     "Option  Agreement" shall mean a written agreement that evidences an Option
     in such form as the Administrator shall approve from time to time.

     "Optioned Stock" shall mean the Common Stock subject to an Option.

     "Optionee" shall mean any person who receives an Option.

     "Participant" shall mean an Optionee or a Grantee.
<PAGE>
     "Rule  16b-3" shall mean Rule 16b-3  promulgated  under the Exchange Act or
     any successor to Rule 16b-3.

     "Service"  shall mean the  performance  of services for the Company (or any
     Affiliate)  by an Employee,  Director or  Consultant,  as determined by the
     Administrator  in its sole  discretion.  Service  shall  not be  considered
     interrupted in the case of: (i) a change of status (i.e.,  from Employee to
     Consultant, Non-Employee Director to Consultant, or any other combination);
     (ii) transfers  between locations of the Company or between the Company and
     any  Affiliate;  or (iii) a leave of absence  approved by the Company or an
     Affiliate. A leave of absence approved by the Company or an Affiliate shall
     include sick leave, military leave, or any other personal leave approved by
     an authorized representative of the Company or an Affiliate.

     "Service Provider" shall mean an Employee, Director or Consultant.

     "Share" shall mean a share of Common Stock.

     "Tax"  or  "Taxes"  shall  mean  the  federal,  state,  and  local  income,
     employment  and excise  tax  liabilities  incurred  by the  Participant  in
     connection with his/her Options.

     "10%  Shareholder"  shall  mean the  owner of stock  (as  determined  under
     Section 424(d) of the Code)  possessing more than 10% of the total combined
     voting power of all classes of stock of the Company (or any  Affiliate)  on
     the Date of Grant, as applicable.

     "Termination  Date"  shall mean the date on which a  Participant's  Service
     terminates, as determined by the Administrator in its sole discretion.

     3.     Administration of the Plan.

            (a)      Except as otherwise provided for below, the Plan shall be
administered  by (i) the Board or (ii) a  Committee,  which  Committee  shall be
constituted  to satisfy  applicable  laws.  To the extent  desirable  to qualify
transactions hereunder as exempt under Rule 16b-3, the transactions contemplated
hereunder  shall be structured to satisfy the  requirements  for exemption under
Rule 16b-3.

            (b)      Powers of the Administrator. Subject to the provisions of
the Plan and in the case of specific duties delegated by the Administrator, and
subject to the approval of relevant authorities, including the approval, if
required, of any stock exchange or national market system upon which the Common
Stock is then listed, the Administrator shall have the authority, in its sole
discretion:

                     (i)     to determine the fair market value of the Common
            Stock;

                     (ii)    to select the Service Providers to whom Options
            may, from time to time, be granted under the Plan;

                     (iii)   to determine whether and to what extent Options
            are granted under the Plan;

                     (iv)    to determine the number of Shares that pertain
            to each Option;

                     (v)     to approve the terms of the Option Agreements;

                     (vi)    to determine the terms and conditions, not
            inconsistent with the terms of the Plan, of any Option. Such terms
            and conditions may include,  but are not limited to, the Exercise
            Price,  the status of an Option  (Non-Statutory  Stock  Option or
            Incentive  Stock  Option),  the time or times when Options may be
            exercised,  any  vesting  acceleration  or waiver  of  forfeiture
            restrictions,  and any  restriction  or limitation  regarding any
            Option or the Shares relating thereto, based in each case on such
            factors  as the  Administrator,  in its  sole  discretion,  shall
            determine;

                     (vii)   to determine the method of payment of the Exercise
            Price;
<PAGE>
                     (viii)  with the prior approval of a majority of the
            Non-Employee Directors of the Administrator,  reduce the Exercise
            Price of any Option to the then  current fair market value if the
            fair market  value of the Optioned  Stock has declined  since the
            Date of Grant of such Option;

                     (ix)    to delegate to others responsibilities to assist
            in administering the Plan;

                     (x)     to construe and interpret the terms of the Plan,
            Option Agreements and any other documents related to the Options;
            and

                     (xi)    to interpret and administer the terms of the
            Plan to comply with all Tax rules and regulations.

            (c)      Effect of Administrator's Decision. All decisions,
determinations, and interpretations of the Administrator shall be final and
binding on all Participants and any other holders of any Options. The
Administrator's decisions and determinations under the Plan need not be uniform
and may be made selectively among Participants whether or not such Participants
are similarly situated.

            (d)      Liability. No member of the Administrator shall be
personally liable by reason of any mistake of judgment made in good faith while
acting in such capacity if he or she was acting within her/his authority as a
member of the Administrator at the time of the mistake, and the Company shall
indemnify and hold harmless each member of the Administrator and each other
employee, officer or director of the Company to whom any duty or power relating
to the administration or interpretation of the Plan may be allocated or
delegated, against any cost or expense (including counsel fees) or liability
(including any sum paid in settlement of a claim) arising out of any act or
omission to act in connection with the Plan unless arising out of such person's
own fraud or bad faith. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which such persons may be
entitled under the Company's Articles of Incorporation or Bylaws, as a matter of
law, or otherwise, or any power the Company may have to indemnify them or hold
them harmless. The Board shall make the determination if any such person shall
be entitled to indemnification and such decision by the Board shall be made in
good faith, final and binding.

     4.     Stock Subject To The Plan.

            (a)      Basic Limitation. The total number of Options under the
Plan may not exceed 1,200,000, subject to the adjustments provided for in
Section 8 of the Plan. The total number of Options granted under the Plan to any
one Participant during each calendar year shall not exceed 60,000.

            (b)      Additional Shares. In the event that any outstanding
Option expires or is canceled or otherwise terminated, the Shares that pertain
to the unexercised Option shall again be available for the purposes of the Plan.

     5.     Eligibility. The persons eligible to participate in the Plan shall
be limited to Employees, Directors and Consultants who have the potential to
impact the long-term success of the Company and/or its Affiliates and who have
been selected by the Administrator to participate in the Plan.

     6.     Option Terms. Each Option shall be evidenced by an Option Agreement,
in the form approved by the Administrator and may contain such provisions as the
Administrator deems appropriate; provided, however, that each Option Agreement
shall comply with the terms specified below and shall be subject to all of the
other provisions of the Plan. Each Option Agreement evidencing an Incentive
Stock Option shall be subject to the following applicable provisions (except
ISOs if in conflict with Section 7) as well as Section 7 below.

            (a)      Exercise Price.

                     (i)     The Exercise Price of an Incentive Stock Option
            shall be determined by the Administrator but shall not be less
            than 100% of the fair market value of a Share on the Date of
            Grant of such Option, and the exercise price of a
            Non-Statutory Stock Option shall not be less than 100% of the
            fair market value of a Share on the Date of Grant of such Option.
<PAGE>
                     (ii)    The consideration to be paid for the Shares to
            be issued  upon  exercise of an Option,  including  the method of
            payment, shall be determined by the Administrator and may consist
            entirely of (A) cash, (B) check,  (C) Mature  Shares,  or (D) any
            combination   of  the   foregoing   methods   of   payment.   The
            Administrator may also permit Optionees, either on a selective or
            aggregate basis, to simultaneously  exercise Options and sell the
            shares of Common Stock thereby acquired,  pursuant to a brokerage
            or similar arrangement, approved in advance by the Administrator,
            and use the proceeds  from such sale as payment of part or all of
            the exercise price of such shares. Notwithstanding the foregoing,
            a method of payment  may not be used if it causes the Company to:
            (x)  recognize   compensation  expense  for  financial  reporting
            purposes;  (y) violate Section 402 of the  Sarbanes-Oxley  Act of
            2002 or any regulations  adopted pursuant thereto; or (z) violate
            Regulation  O,  promulgated  by the  Board  of  Governors  of the
            Federal Reserve System, as determined by the Administrator in its
            sole discretion.

            (b)      Vesting. Any Option granted hereunder shall be exercisable
and shall vest at such times and under such conditions as determined by the
Administrator and set forth in the Option Agreement, but in any event all
Options granted to an Optionee who is not an officer, Director or Consultant of
the Company shall vest at a rate of at least 20% per year over five years from
the Date of Grant of the Option subject to reasonable conditions such as
continued employment. An Option may not be exercised for a fraction of a Share
and the Optionee shall receive cash in lieu thereof equal to the fair market
value of such fraction on the date of exercise.

            (c)      Term of Options. No Option shall have a term in excess of
10 years measured from the Date of Grant of such Option.

            (d)      Procedure for Exercise. An Option shall be deemed to be
exercised when written notice of such exercise has been given to the
Administrator in accordance with the terms of the Option Agreement by the person
entitled to exercise the Option and full payment of the applicable Exercise
Price for the Share being exercised has been received by the Administrator. Full
payment may, as authorized by the Administrator, consist of any consideration
and method of payment allowable under Section (a)(iii) above in this Section. In
the event of a cashless exercise, the broker shall not be deemed to be an agent
of the Administrator.

            (e)      Effect of Termination of Service.

                     (i)     Termination of Service. Upon termination of an
            Optionee's  Service,  other  than due to  death,  Disability,  or
            Cause, the Optionee may exercise  his/her Option,  but only on or
            prior to the date that is three months  following the  Optionee's
            Termination  Date,  even if the  date  of  exercise  within  such
            extended  period  is past the  expiration  date set  forth in the
            Option  Agreement,  and only to the extent that the  Optionee was
            entitled to exercise such Option on the Termination  Date (but in
            no event  later  than ten  years  after the date the  Option  was
            granted).  If,  on the  Termination  Date,  the  Optionee  is not
            entitled to exercise the  Optionee's  entire  Option,  the Shares
            covered  by  the  unexercisable   portion  of  the  Option  shall
            immediately revert to the Plan. If, after termination of Service,
            the Optionee  does not exercise  his/her  Option  within the time
            specified  herein,  the Option shall terminate,  and the Optioned
            Stock shall immediately revert to the Plan.

                     (ii)    Disability of Optionee. In the event of
            termination of an Optionee's  Service due to his/her  Disability,
            the Optionee may exercise his/her Option, but only on or prior to
            the date that is twelve months  following the  Termination  Date,
            even if the date of exercise  within such extended period is past
            the expiration date set forth in the Option  Agreement,  and only
            to the extent that the  Optionee  was  entitled to exercise  such
            Option on the  Termination  Date (but in no event  later than ten
            years after the date the Option was  granted).  To the extent the
            Optionee  is  not   entitled  to  exercise   the  Option  on  the
            Termination Date, the Shares covered by the unexercisable portion
            of the Option  shall  immediately  revert to the Plan.  If, after
            Termination of Service due to  Disability,  the Optionee does not
            exercise  the  Option to the extent so  entitled  within the time
            specified  herein,  the Option shall terminate,  and the Optioned
            Stock shall immediately revert to the Plan.

                     (iii)   Death of Optionee. In the event that an Optionee
            should  die  while  in  Service,  the  Optionee's  Option  may be
            exercised  by  the  Optionee's  estate  or by a  person  who  has
            acquired   the  right  to  exercise  the  Option  by  bequest  or
            inheritance,  but only on or prior  to the  date  that is  twelve
<PAGE>
            months following the date of death,  even if the date of exercise
            within such extended period is past the expiration date set forth
            in the Option Agreement, and only to the extent that the Optionee
            was  entitled to exercise the Option at the date of death (but in
            no event  later  than ten  years  after the date the  Option  was
            granted). If, at the time of death, the Optionee was not entitled
            to exercise  his/her  entire  Option,  the Shares  covered by the
            unexercisable  portion of the Option shall immediately  revert to
            the Plan. If after death,  the Optionee's  estate or a person who
            acquires   the  right  to  exercise  the  Option  by  bequest  or
            inheritance   does  not  exercise  the  Option  within  the  time
            specified  herein,  the Option shall terminate,  and the Optioned
            Stock shall immediately revert to the Plan.

                     (iv)    Cause. In the event of termination of an Optionee's
            Service due to Cause,  the Optionee's  Options shall terminate on
            the Termination Date.

                     (v)     To the extent that the Company does not violate
            Section 402 of the  Sarbanes-Oxley Act of 2002 or any regulations
            adopted  pursuant  thereto or  Regulation O,  promulgated  by the
            Board of Governors of the Federal  Reserve  System (as determined
            by the Administrator in its sole  discretion),  the Administrator
            shall have complete discretion, exercisable either at the time an
            Option  is  granted  or at any  time  while  the  Option  remains
            outstanding, to:

                             (A)     extend the period of time for which the
                    Option is to remain  exercisable  following  the  Optionee's
                    cessation  of  Service  from  the  limited  exercise  period
                    otherwise in effect for that Option to such  greater  period
                    of time as the Administrator shall deem appropriate,  but in
                    no event beyond the expiration of the Option term; and/or

                             (B)     permit the Option to be exercised, during
                    the applicable  post-Service  exercise period, not only with
                    respect to the number of vested Shares for which such Option
                    is exercisable  at the time of the  Optionee's  cessation of
                    Service  but also  with  respect  to one or more  additional
                    installments in which the Optionee would have vested had the
                    Optionee continued in Service.

                     (f)     Shareholder Rights. Until the issuance (as
            evidenced by the appropriate entry on the books of the Company or
            of a duly authorized  transfer agent of the Company) of the stock
            certificate  evidencing such Shares,  no right to vote or receive
            dividends or any other rights as a  shareholder  shall exist with
            respect to the Optioned  Stock,  notwithstanding  the exercise of
            the Option.  The Company shall issue (or cause to be issued) such
            certificate  promptly upon exercise of the Option.  No adjustment
            will be made for a dividend  or other  right for which the record
            date is prior to the date the stock certificate is issued, except
            as provided in Section 8 below.

                     (g)     Non-transferability of Options. Options may not
            be  sold,  pledged,  assigned,   hypothecated,   transferred,  or
            disposed  of in any  manner  other  than by will,  by the laws of
            descent  and  distribution,  by  instrument  to an inter vivos or
            testamentary   trust  in  which  Options  are  to  be  passed  to
            beneficiaries  upon the death of the trustor (settler) or by gift
            to Immediate Family.  Notwithstanding  the immediately  preceding
            sentence,  Incentive Stock Option transfers may be limited by the
            Administrator  in order  to  comply  with  the Code and  shall be
            further limited, if necessary, so that neither the transfer of an
            Option  other than an Incentive  Stock  Option to such  Immediate
            Family,  nor the  ability of a  Optionee  to make such a transfer
            shall have adverse consequences to the Company or the Optionee by
            reason of Section 162(m) of the Code.

                     (h)     10% Shareholder. If any Grantee to whom an Option
            is granted is a 10%  Shareholder  on the Date of Grant,  then the
            Exercise  Price  shall not be less  than 110% of the fair  market
            value of a Share on the Date of Grant of such Option.

     7.     Incentive Stock Options. The terms specified below shall be
applicable to all Incentive Stock Options, and these terms shall, as to such
Incentive Stock Options, supersede any conflicting terms in Section 6 above.
Options which are specifically designated as Non-Statutory Stock Options when
issued under the Plan shall not be subject to the terms of this Section.

            (a)      Eligibility. Incentive Stock Options may only be granted
to Employees.
<PAGE>
            (b)      Exercise Price. The Exercise Price of an Incentive Stock
Option shall not be less than 100% of the fair market value of a Share on the
Date of Grant of such Option, except as otherwise provided for in Subsection (d)
below.

            (c)      Dollar Limitation. In the case of an Incentive Stock
Option, the aggregate fair market value of the Optioned Stock (determined as of
the Date of Grant of each Option) with respect to Options granted to any
Employee under the Plan (or any other option plan of the Company or any
Affiliate) that may for the first time become exercisable as Incentive Stock
Options during any one calendar year shall not exceed the sum of $100,000. To
the extent the Employee holds two or more such Options which become exercisable
for the first time in the same calendar year, the foregoing limitation on the
exercisability of such Options as Incentive Stock Options shall be applied on
the basis of the order in which such Options are granted. Any Options in excess
of such limitation shall automatically be treated as Non-Statutory Stock
Options.

            (d)      Option Term for 10% Shareholder. The Option term of an
Incentive Stock Option granted to a 10% Shareholder shall not exceed five years
measured from the Date of Grant of such Option.

            (e)      Change in Status. In the event of an Optionee's change of
status from Employee to Consultant or to Non-Employee Director, an Incentive
Stock Option held by the Optionee shall cease to be treated as an Incentive
Stock Option and shall be treated for tax purposes as a Non-Statutory Stock
Option three months and one day following such change of status.

            (f)      Approved Leave of Absence. If an Optionee is on an
approved leave of absence, and the Optionee's reemployment upon expiration of
such leave is not guaranteed by statute or contract, including Company policies,
then on the 91st day of such leave any Incentive Stock Option held by the
Optionee shall cease to be treated as an Incentive Stock Option and shall be
treated for tax purposes as a Non-Statutory Stock Option.

     8.     Adjustments

            (a)      Recapitalization, Etc. If the outstanding Common Stock is
hereafter increased or decreased, or changed into or exchanged for a different
number or kind of shares or other securities of the Company or of another
corporation, by reason of a recapitalization, reclassification, reorganization,
merger, consolidation, share exchange or other business combination in which the
Company is the surviving parent corporation, stock split-up, combination of
shares or dividend or other distribution payable in capital stock or rights to
acquire capital stock, appropriate adjustment shall be made by the Administrator
in the number and kind of shares for which Options may be granted under the
Plan. In addition, the Administrator shall make appropriate adjustment in the
number and kind of shares as to which outstanding and unexercised Options shall
be exercisable, to the end that the proportionate interest of the holder of the
Option shall, to the extent practicable, be maintained as before the occurrence
of the event. The adjustment in outstanding Options shall be made without change
in the total price applicable to the unexercised portion of the Option but with
a corresponding adjustment in the exercise price per share.

            (b)      Reorganization. Upon a Reorganization (as hereinafter
defined):

                     (i)     If there is no plan or agreement with respect to
            the  Reorganization   ("Reorganization  Agreement"),  or  if  the
            Reorganization  Agreement does not  specifically  provide for the
            adjustment,  change,  conversion,  or exchange of the outstanding
            and unexercised  Options for cash or other property or securities
            of another  corporation,  then any  outstanding  and  unexercised
            Options  shall  terminate  as of a future date to be fixed by the
            Administrator; or

                     (ii)    If there is a Reorganization Agreement, and the
            Reorganization    Agreement   specifically   provides   for   the
            adjustment, change, conversion or exchange of the outstanding and
            unexercised  Options for cash or other  property or securities of
            another  corporation,  then the  Administrator  shall  adjust the
            shares under the outstanding and unexercised  Options,  and shall
            adjust  the  shares  remaining  under  the  Plan  which  are then
            available  for the  issuance  of  Options  under  the Plan if the
            Reorganization Agreement makes specific provisions therefor, in a
            manner not inconsistent with the provisions of the Reorganization
            Agreement for the adjustment,  change, conversion, or exchange of
            the Options and shares.
<PAGE>
            (c)      Reorganization Defined. The term "Reorganization" as used
in this Section 8 means any reorganization, merger, consolidation, share
exchange or other business combination pursuant to which the Company is not the
surviving parent corporation after the effective date of the Reorganization, or
any sale or lease of all or substantially all of the assets of the Company.
Nothing herein shall require the Company to adopt a Reorganization Agreement, or
to make provision for the adjustment, change, conversion, or exchange of any
Options or the shares subject thereto, in any Reorganization Agreement that it
does adopt.

            (d)      Notice to Optionees. The Administrator shall provide to
each Optionee then holding an outstanding and unexercised Option not less than
30 calendar days' advanced written notice of any date fixed by the Administrator
pursuant to this Section 8 and of the terms of any Reorganization Agreement
providing for the adjustment, change, conversion, or exchange of outstanding and
unexercised Options. Except as the Administrator may otherwise provide, each
Optionee shall have the right during that period to exercise his or her Option
only to the extent that the Option was exercisable on the date the notice was
provided to the Optionee.

            (e)      Adjustment Must Conform. Any adjustment to any outstanding
ISO pursuant to this Section 8, if made by reason of a transaction described in
Section 424(a) of the Code, shall be made so as to conform to the requirements
of that Section and the regulations thereunder. If any other transaction
described in Section 424(a) of the Code affects the Common Stock subject to any
unexercised ISO theretofore granted under the Plan ("old option"), the Board or
the board of directors of any surviving or acquiring corporation may take such
action as it deems appropriate, in conformity with the requirements of that Code
Section and the regulations thereunder, to substitute a new option for the old
option, in order to make the new option, as nearly as may be practicable,
equivalent to the old option, or to assume the old option.

            (f)      No Modification. No modification, extension, renewal, or
other change in any Option granted under the Plan may be made, after the grant
of the Option, without the Optionee's consent, unless it is permitted by the
provisions of the Plan and the option agreement. In the case of an ISO,
Optionees are hereby advised that certain changes may disqualify the ISO from
being considered as such under Section 422 of the Code, or constitute a
modification, extension, or renewal of the ISO under Section 424(h) of the Code.

            (g)      Good Faith of the Administrator. All adjustments and
determinations under this Section 8 shall be made by the Administrator in good
faith in its sole discretion.

            (h)      Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, the Administrator shall notify each
Participant as soon as practicable prior to the effective date of such proposed
transaction. In such event, the Administrator, in its discretion, may provide
for a Participant to fully vest in his/her Option. To the extent it has not been
previously exercised, an Option will terminate upon dissolution or liquidation
of the Company.

     9.     Cancellation and Regrant of Options. The Administrator shall have
the authority to effect, at any time and from time to time, with the consent of
the affected Optionee, the cancellation of any or all outstanding Options and to
grant in substitution new Options covering the same or a different number of
Shares but with an Exercise Price per Share based on the fair market value per
Share on the new Date of Grant of the Option. For purposes of Section 4 hereof,
Shares underlying any Option cancelled by the Company in such exchange shall be
available for issuance under the Plan; furthermore, except with respect to a
Participant subject to Section 162(m) of the Code, a grant of any Option to a
Participant pursuant to such exchange shall be disregarded for purposes of
determining whether such Participant has exceeded any limitations hereunder
limiting the amount of any type of Option or aggregate amount of Options that
may be granted to a Participant (except to the extent the number of Shares
underlying such Options exceeds the number of Shares underlying the
Participant's cancelled Options).

     10.    Information to Holders of Options. The Company shall provide to
each Optionee, on an annual basis, the information required by Section
260.140.46, Title 10 of the California Code of Regulations and any successor law
or regulation.

     11.    Tax Withholding.

            (a)      For corporate purposes, the Company's obligation to
deliver Shares upon the exercise of Options under the Plan shall be subject to
the satisfaction of all applicable federal, state and local income and
employment tax withholding requirements.
<PAGE>
            (b)      To the extent permitted under Section 402 of the
Sarbanes-Oxley  Act of 2002 and the regulations  adopted pursuant  thereto,  the
Administrator   may,  in  its   discretion,   provide  any  or  all  holders  of
Non-Statutory  Stock Options with the right to use  previously  vested Shares in
satisfaction  of all or part of the Taxes incurred by such holders in connection
with the exercise of their Non-Statutory Stock Options, provided,  however, that
this form of payment shall be limited to the withholding amount calculated using
the minimum  statutory  rates.  Such right may be provided to any such holder as
follows:  The election to have the Company  withhold,  from the Shares otherwise
issuable  upon the exercise of such  Non-Statutory  Stock  Option,  a portion of
those Shares with an aggregate  fair market value equal to the Taxes  calculated
using the minimum statutory withholding rates interpreted in accordance with APB
25 and FASB Interpretation No. 44.

     12.    Effective Date and Term of the Plan. The Plan was adopted by the
Board on March 24, 2004, and shall become effective on the date of its approval
by the Company's shareholders. Unless sooner terminated by the Administrator,
the Plan shall continue until March 24, 2014. When the Plan terminates, no
Options shall be granted under the Plan thereafter. The termination of the Plan
shall not affect any Option previously granted under the Plan.

     13.    Time of Granting Options. The Date of Grant of an Option shall, for
all purposes, be the date on which the Administrator makes the determination to
grant such Option, or such other date as determined by the Administrator;
provided, however, that any Option granted prior to the date on which the Plan
is approved by the Company's shareholders shall be subject to the shareholders'
approval of the Plan. Notice of the determination shall be given to each Service
Provider to whom an Option is so granted within a reasonable period of time
after the date of such grant.

     14.    Amendment and Termination of the Plan.

            (a)      Amendment and Termination. The Board may at any time
amend, alter, suspend, or discontinue the Plan, but no amendment, alteration,
suspension, or discontinuation shall be made which would impair the rights of
any Participant under any grant theretofore made without his/her consent. In
addition, to the extent necessary and desirable to comply with Section 422 of
the Code (or any other applicable law or regulation, including the requirements
of any stock exchange or national market system upon which the Common Stock is
then listed), the Company shall obtain shareholder approval of any Plan
amendment in such a manner and to such a degree as required.

            (b)      Effect of Amendment and Termination. Any such amendment or
termination of the Plan shall not affect Options already granted, and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated, unless mutually agreed otherwise between the Participant
and the Board, which agreement must be in writing and signed by the Participant
and the Company.

     15.    Regulatory Approvals.

            (a)      The implementation of the Plan, the granting of any
Options and the issuance of any Shares upon the exercise of any granted Options
shall be subject to the Company's procurement of all approvals and permits
required by regulatory authorities having jurisdiction over the Plan, the
Options granted under it, and the Shares issued pursuant to it.

            (b)      No Shares or other assets shall be issued or delivered
under the Plan unless and until there shall have been compliance with all
applicable requirements of federal and state securities laws, including the
filing and effectiveness of the Form S-8 registration statement (if required)
and under state law (if required) for the Shares issuable under the Plan.

            (c)      The receipt of Shares upon the exercise of an Option shall
be conditioned upon the Optionee (or any other person who exercises the Option
on his or her behalf as permitted by this Plan) providing to the Administrator a
written representation that, at the time of such exercise, it is the intent of
that person(s) to acquire the shares for investment only and not with a view
toward distribution. The certificate for unregistered shares issued for
investment shall be restricted by the Company as to transfer unless the Company
receives an opinion of counsel satisfactory to the Company to the effect that
the restriction is not necessary under then pertaining law. The providing of the
representation and the restrictions on transfer shall not, however, be required
upon any person's receipt of Shares under the Plan if, at the time of grant of
the Option relating to receipt or upon receipt, whichever is the appropriate
measure under applicable federal or state securities laws, the Optioned Stock
is: (i) covered by an effective and current registration statement under the
Securities Act of 1933, as amended; and (ii) either qualified or exempt from
qualification under applicable state securities laws.
<PAGE>
     16.    No Employment/Service Rights. Nothing in the Plan shall confer upon
the Participant any right to continue in Service for any period of specific
duration or interfere with or otherwise restrict in any way the rights of the
Company (or any Affiliate employing or retaining such person) or of the
Participant, which rights are hereby expressly reserved by each, to terminate
such person's Service at any time for any reason, with or without cause.

     17.    Governing Law. This Plan shall be governed by California law,
applied without regard to conflict of law principles.

     18.    Non-Exclusivity of the Plan. Nothing contained in the Plan is
intended to amend, modify or rescind any previously approved compensation plans,
programs or options entered into by the Company. This Plan shall be construed to
be in addition to and independent of any and all other arrangements. Neither the
adoption of the Plan by the Board nor the submission of the Plan to the
shareholders of the Company for approval shall be construed as creating any
limitations on the power or authority of the Board to adopt, with or without
shareholder approval, such additional or other compensation arrangements as the
Board may from time to time deem desirable.ex10-19.htm

    Exhibit 10.19

       

      ADVANCE
AUTO PARTS, INC.

      2004
LONG-TERM INCENTIVE PLAN

       

      (Amended
and Restated as of April 17, 2008)

       

      SECTION
1.  PURPOSE.  The purposes of the 2004 Long-Term
Incentive Plan (the “Plan”) are to encourage selected Employees and Directors of
Advance Auto Parts, Inc., a Delaware corporation (“Advance Auto” or the
“Company”), and its Affiliates to acquire a proprietary and vested interest in
the growth, development and financial success of the Company, to generate an
increased incentive to contribute to the Company’s future success and
prosperity, thus enhancing the value of the Company for the benefit of
stockholders, and to enhance the ability of the Company and its Affiliates to
attract and retain individuals of exceptional managerial talent upon whom, in
large measure, the sustained progress, growth and profitability of the Company
depends.

       

      The
Company has previously adopted the Advance Auto Parts, Inc. 2001 Executive Stock
Option Plan and the Advance Auto Parts, Inc. 2001 Senior Executive Stock Option
Plan (collectively, the “Predecessor Plans”), which were established to provide
similar equity-based compensation incentives through the grant of stock options.
Effective upon the adoption of the Plan by stockholders of the Company, the
Predecessor Plans will be merged into this Plan, thereby making available for
the grant of awards under this Plan any authorized but unused Shares (as herein
defined) not already used for such purpose under the Predecessor Plans. All
outstanding option grants under the Predecessor Plans shall continue in full
force and effect, subject to their original terms, after the Predecessor Plans
are merged into the Plan under the terms and conditions noted
above.

       

      SECTION 2.  DEFINITIONS.  As
used in the Plan, the following terms shall have the meanings as set forth
below:

       

      (a)                 “Affiliate”
shall mean (i) any Person that directly, or through one or more intermediaries,
controls, or is controlled by, or is under common control with, the Company or
(ii) any entity in which the Company has a significant equity interest, as
determined by the Committee.

       

      (b)                 “Award”
shall mean any Option, SAR, Restricted Stock Award, Performance Share,
Performance Unit, Deferred Stock Unit, Dividend Equivalent, Other Stock Unit
Award or any other right, interest or option relating to Shares or other
property granted pursuant to the provisions of the Plan.

       

      (c)                 “Award
Agreement” shall mean any written agreement, contract or other instrument or
document evidencing any Award granted by the Committee hereunder, which may, but
need not, be executed or acknowledged by both the Company and the
Participant.

       

      (d)                 “Board”
shall mean the Board of Directors of the Company.

       

      (e)                 “Change
in Control” shall mean the happening of any of the following
events:

       

      (i)           an
acquisition by any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Exchange Act) (an “Entity”) of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 25% or
more of either (A) the then outstanding Shares (the “Outstanding Company Common
Stock”) or (B) the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of
directors (the “Outstanding Company Voting Securities”); excluding, however, the
following:  (1) any acquisition directly from the Company, other than
an acquisition by virtue of the exercise of a conversion privilege unless the
security being so converted was itself acquired directly from the Company, (2)
any acquisition by the Company, (3) any acquisition by any employee benefit plan
(or related trust) sponsored or maintained by the Company or any corporation
controlled by the Company, or (4) any acquisition by any corporation pursuant to
a transaction that complies with clauses (A), (B) and (C) of Section
2(e)(iii);

       

      (ii)           a
change in the composition of the Board on the Plan’s effective date such that
the individuals who, as of the effective date, constitute the Board (such Board
shall be hereinafter referred to as the “Incumbent Board”) cease for any reason
to constitute at least a majority of the Board; provided, however, that for
purposes of this definition, any individual who becomes a member of the Board
subsequent to the effective date, whose election, or nomination for election, by
the 

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Company’s
stockholders was approved by a vote of at least a majority of those individuals
who are members of the Board and who were also members of the Incumbent Board
(or deemed to be such pursuant to this proviso) shall be considered as though
such individual were a member of the Incumbent Board; and provided further,
however, that any such individual whose initial assumption of office occurs as a
result of or in connection with either an actual or threatened solicitation with
respect to the election of directors (as such terms are used in Rule 14a-12(c)
of Regulation 14A promulgated under the Exchange Act) or other actual or
threatened solicitation of proxies or consents by or on behalf of an Entity
other than the Board shall not be so considered as a member of the Incumbent
Board;

       

      (iii)           the
consummation of a merger, reorganization or consolidation or sale or other
disposition of all or substantially all of the assets of the Company (each, a
“Corporate Transaction”), excluding however, any Corporate Transaction pursuant
to which (A) all or substantially all of the individuals and entities who
are the beneficial owners, respectively, of the Outstanding Company Common Stock
and Outstanding Company Voting Securities immediately prior to such Corporate
Transaction will beneficially own, directly or indirectly, more than 50% of,
respectively, the outstanding shares of common stock, and the combined voting
power of the then outstanding voting securities entitled to vote generally in
the election of directors, as the case may be, of the corporation resulting from
such Corporate Transaction (including, without limitation, a corporation or
other Person that 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 (a “Parent Company”)) in substantially the same proportions as
their ownership, immediately prior to such Corporate Transaction, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities, as
the case may be, (B) no Entity (other than the Company, any employee
benefit plan (or related trust) of the Company, such corporation resulting from
such Corporate Transaction or, if reference was made to equity ownership of any
Parent Company for purposes of determining whether clause (A) above is
satisfied in connection with the applicable Corporate Transaction, such Parent
Company) will beneficially own, directly or indirectly, 25% or more of,
respectively, the outstanding shares of common stock of the corporation
resulting from such Corporate Transaction or the combined voting power of the
outstanding voting securities of such corporation entitled to vote generally in
the election of directors unless such ownership resulted solely from ownership
of securities of the Company prior to the Corporate Transaction, and
(C) individuals who were members of the Incumbent Board will immediately
after the consummation of the Corporate Transaction constitute at least a
majority of the members of the board of directors of the corporation resulting
from such Corporate Transaction (or, if reference was made to equity ownership
of any Parent Company for purposes of determining whether clause (A) above
is satisfied in connection with the applicable Corporate Transaction, of the
Parent Company); or

       

      (iv)           the
approval by the stockholders of the Company of the complete liquidation or
dissolution of the Company.

       

      (f)                 “Change
in Control Price” means, with respect to a Share, the higher of (A) the
highest reported sales price, regular way, of such Share in any transaction
reported on the New York Stock Exchange Composite Tape or other national
exchange on which such Shares are listed or on the NASDAQ National Market during
the 60-day period prior to and including the date of a Change in Control or
(B) if the Change in Control is the result of a tender or exchange offer or
a Corporate Transaction, the highest price per such Share paid in such tender or
exchange offer or Corporate Transaction.  To the extent the
consideration paid in any such transaction described above consists all or in
part of securities or other noncash consideration, the value of such securities
or other non-cash consideration shall be determined in the sole discretion of
the Board.

       

      (g)                 “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time, and
any successor thereto.

       

      (h)                 “Committee”
shall mean the Compensation Committee of the Board, or any successor to such
committee, composed of no fewer than two directors, each of whom is a
non-employee Director within the meaning of Rule 16b-3(b)(3) of the
Exchange Act and an “outside director” within the meaning of Section 162(m)
of the Code, or any successor provision thereto.

       

      (i)                 “Company”
shall mean Advance Auto Parts, Inc. a Delaware corporation.

       

      (j)                 “Covered
Employee” shall mean a “covered employee” within the meaning of
Section 162(m)(3) of the Code, or any successor provision
thereto.

       

      (k)                 “Deferred
Stock Unit” or “DSU” shall mean a bookkeeping entry that represents the right to
receive one Share at a future date.  DSUs may be granted outright by
the Committee or may be granted in exchange for cash compensation deferred by a
Participant. To the extent the Company pays a dividend, DSUs will include the
right to receive Dividend Equivalents, 

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      which are
credited in the form of additional DSUs.

       

      (l)                 “Director”
shall mean a member of the Board who is not an Employee.

       

      (m)                 “Dividend
Equivalent” shall mean an amount equal to the cash paid by the Company upon one
Share, either as a freestanding Award, or in connection with the grant of
Restricted Units, Performance Shares, Options, and/or SARs or Other Stock Unit
Awards.

       

      (n)                 “Employee”
shall mean any employee of the Company or any Affiliate.  Unless
otherwise determined by the Committee in its sole discretion, for purposes of
the Plan, an Employee shall be considered to have terminated employment or
services and to have ceased to be an Employee if his or her employer ceases to
be an Affiliate, even if he or she continues to be employed by such
employer.

       

      (o)                 “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

       

      (p)                 “Fair
Market Value” shall mean, with respect to any property other than Shares, the
market value of such property determined by such methods or procedures as shall
be established from time to time by the Committee.  Unless otherwise
determined by the Committee, the Fair Market Value of Shares as of any date
shall be closing price for the Shares as reported on the New York Stock Exchange
(or on any national securities exchange on which the Shares are then listed) for
that date or, if no such prices are reported for that date, the closing price on
the next preceding date for which such prices were reported.

       

      (q)                 “Option”
shall mean any right granted to a Participant under the Plan allowing such
Participant to purchase Shares at such price or prices and during such period or
periods as the Committee shall determine.

       

      (r)                 “Other
Stock Unit Award” shall mean any right granted to a Participant by the Committee
pursuant to Section 6(f).

       

      (s)                 “Participant”
shall mean an Employee or Director who is selected by the Committee to receive
an Award under the Plan.  Participant shall also mean a consultant
selected by the Committee who provides services to the Company or any Affiliate,
so long as such person (i) renders bona fide services that are not in
connection with the offer and sale of the Company’s securities in a
capital-raising transaction and (ii) does not directly or indirectly
promote or maintain a market for the Company’s securities.

       

      (t)                 “Performance
Award” shall mean any Award of Performance Shares or Performance Units granted
pursuant to Section 6(d).

       

      (u)                 “Performance
Period” shall mean that period established by the Committee at the time any
Performance Award is granted or at any time thereafter during which any
performance goals specified by the Committee with respect to such Award are to
be measured.

       

      (v)                 “Performance
Share” shall mean any grant pursuant to Section 6(d) of a unit valued by
reference to a designated number of Shares, which value may be paid to the
Participant by delivery of such property as the Committee shall determine,
including, without limitation, cash, Shares, other property, or any combination
thereof, upon achievement of such performance goals during the Performance
Period as the Committee shall establish at the time of such grant or
thereafter.

       

      (w)                 “Performance
Unit” shall mean any grant pursuant to Section 6(d) of a unit valued by
reference to a designated amount of property other than Shares, which value may
be paid to the Participant by delivery of such property as the Committee shall
determine, including, without limitation, cash, Shares, other property, or any
combination thereof, upon achievement of such performance goals during the
Performance Period as the Committee shall establish at the time of such grant or
thereafter.

       

      (x)                 “Person”
shall mean any individual, corporation, partnership, association, limited
liability company, joint-stock company, trust, unincorporated organization or
government or political subdivision thereof.

       

      (y)                 “Restricted
Stock” shall mean any Share issued with the restriction that the holder may not
sell, transfer, pledge or 

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      assign
such Share and with such other restrictions as the Committee, in its sole
discretion, may impose (including, without limitation, any restriction on the
right to vote such Share, and the right to receive any cash dividends), which
restrictions may lapse separately or in combination at such time or times, in
installments or otherwise, as the Committee may deem appropriate.

       

      (z)                 “Restricted
Stock Award” shall mean an award of Restricted Stock under Section
6(c).

       

      (aa)                 “Restricted
Stock Unit” is a bookkeeping entry that represents the right to receive one
share of Common Stock at a future date, and which is subject to the restriction
that the holder may not sell, transfer, pledge or assign such unit and other
restrictions as the Committee, in its sole discretion, may impose (including,
without limitation, any restriction on the right to receive any Dividend
Equivalents, if dividends are paid by the Company), which restrictions may lapse
separately or in combination at such time or times, in installments or
otherwise, as the Committee may deem appropriate.

       

      (bb)                 “Shares”
shall mean the shares of common stock of the Company, par value $.0001 per
share.

       

      (cc)                 “Stock
Appreciation Right” or “SAR” shall mean any right granted to a Participant
pursuant to Section 6(b) to receive, upon exercise by the Participant, the
excess of (i) the Fair Market Value of one Share on the date of exercise or
at any time during a specified period before the date of exercise over
(ii) the grant price of the right on the date of grant, or if granted in
connection with an outstanding Option on the date of grant of the related
Option, as specified by the Committee in its sole discretion, which, except in
the case of Substitute Awards or in connection with an adjustment provided in
Section 4(c), shall not be less than the Fair Market Value of one Share on such
date of grant of the right or the related Option, as the case may
be.  Any payment by the Company in respect of such right may be made
in cash, Shares, other property, or any combination thereof, as the Committee,
in its sole discretion, shall determine.

       

      (dd)                 “Subsidiary”
shall mean any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company if, at the time of the granting of the
Award, each of the corporations other than the last corporation in the unbroken
chain owns stock possessing 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in the chain.

       

      (ee)                 “Substitute
Awards” shall mean Awards granted or Shares issued by the Company in assumption
of, or in substitution or exchange for, awards previously granted, or the right
or obligation to make future awards, by a company acquired by the Company or
with which the Company combines.

       

      SECTION
3.  ADMINISTRATION.  The Committee shall have full
power, discretion, and authority, subject to such orders or resolutions not
inconsistent with the provisions of the Plan as may from time to time be adopted
by the Board, to

       

      (a)                 select
the Participants to whom Awards may from time to time be granted
hereunder;

       

      (b)                 determine
the type or types of Award to be granted to each Participant
hereunder;

       

      (c)                 determine
the number of Shares to be covered by each Award granted hereunder;

       

      (d)                 determine
the terms and conditions, not inconsistent with the provisions of the Plan, of
any Award granted hereunder;

       

      (e)                 determine
whether, to what extent and under what circumstances Awards may be settled in
cash, Shares or other property or canceled or suspended;

       

      (f)                 determine
whether, to what extent, and under what circumstances cash, Shares, other
property and other amounts payable with respect to an Award made under the Plan
shall be deferred either automatically or at the election of the
Participant;

       

      (g)                 interpret
and administer the Plan and any instrument or agreement entered into under the
Plan;

       

      (h)                 establish
such rules and regulations and appoint such agents as it shall deem appropriate
for the proper 

       

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      administration
of the Plan; and

       

      (i)                 make
any other determination and take any other action that the Committee deems
necessary or desirable for administration of the Plan.

       

      Actions
of the Committee shall be final, conclusive and binding on all Persons,
including the Company, any Participant, any stockholder and any Employee of
the Company or any Affiliate.  A majority of the members of the
Committee may act on behalf of the Committee and may fix the time and place of
its meetings.  Notwithstanding the foregoing or anything else to the
contrary in the Plan, any action or determination by the Committee specifically
affecting or relating to an Award to a Director shall be approved and ratified
by the Board.  In addition, no member of the Board or any of its
Committees, as the case may be, shall be liable for any action or determination
made in good faith with respect to the Plan or any Award granted under
it.

       

      SECTION
4.  SHARES SUBJECT TO THE PLAN

       

      (a)                 Effective
as of May 19, 2004, and subject to adjustment as provided in Section 4(c), a
total of 4,500,000 Shares shall be
authorized for grant or issuance under the Plan plus any remaining Shares
available for awards under the Predecessor Plans as of the effective date of the
merger of the Predecessor Plans with this Plan.  Effective as of May
16, 2007, and subject to adjustment as provided in Section 4(c), an additional
5,000,000 Shares shall be authorized for grant or issuance under the
Plan.  Any Shares issued in connection with Awards other than Options
and SARs shall be counted against this limit as 1.7 Shares for every one
Share issued.

       

      (i)           If
any Shares subject to an Award or to an award under the Company’s Predecessor
Plans are forfeited or if any Award or award under the Predecessor Plans based
on Shares is settled for cash, or expires or otherwise is terminated without
issuance of such Shares, the Shares subject to such Award shall, to the extent
of such cash settlement, forfeiture or termination, again be available for
Awards under the Plan.

       

      (ii)           In
the event that any Option or other Award granted hereunder is exercised through
the tendering of Shares (either actually or by attestation), by cashless
exercise through the Company, or in the event that withholding tax liabilities
arising from such Option or other Award are satisfied by the tendering of Shares
or by the withholding of Shares by the Company, only the number of Shares issued
net of the Shares tendered or withheld shall be counted for purposes of
determining the maximum number of Shares available for issuance under the
Plan.

       

      (iii)           In
the event that any option or award granted under the Predecessor Plans is
exercised through the tendering of Shares (either actually or by attestation),
or in the event that withholding tax liabilities arising from such options or
awards are satisfied by the tendering of Shares or the withholding of Shares by
the Company, the Shares so tendered or withheld shall again be available for
Awards under the Plan.

       

      (iv)           Shares
reacquired by the Company on the open market using the cash proceeds received by
the Company from the exercise of Options granted under the Plan or options
granted under the Predecessor Plans that are exercised after the effective date
of the Plan shall be available for Awards under the Plan.

       

      (v)           Substitute
Awards shall not reduce the Shares authorized for issuance under the Plan or
authorized for grant to a Participant in any calendar year.

       

      (vi)           Deferred
Stock Units granted as a result of a voluntary election by a Participant to
defer cash or other compensation otherwise payable to the Participant shall not
reduce the Shares authorized for issuance under the Plan or authorized for grant
to a Participant in any calendar year.

       

      (vii)           In
the event that a company acquired by the Company or with which the Company
combines has shares available under a pre-existing plan not adopted in
contemplation of such acquisition or combination, the shares available for grant
pursuant to the terms of such pre-existing plan (as adjusted, to the extent
appropriate, using the exchange ratio or other adjustment or valuation ratio or
formula used in such acquisition or combination to determine the consideration
payable to the holders of common stock of the entities party to such acquisition
or combination) may be used for Awards under the Plan and shall not reduce the
Shares authorized for issuance under the Plan; provided that Awards using such
available shares 

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      shall not
be made after the date awards or grants could have been made under the terms of
the pre-existing plan, absent the acquisition or combination, and shall only be
made to individuals who were not Employees or Directors of the Company or an
Affiliate prior to such acquisition or combination.

       

      (b)                 Any
Shares issued hereunder may consist, in whole or in part, of authorized and
unissued shares, treasury shares or shares purchased in the open market or
otherwise.

       

      (c)                 In
the event of any merger, reorganization, consolidation, recapitalization, stock
dividend, stock split, reverse stock split, spin-off or similar transaction or
other change in corporate structure affecting the Shares, such adjustments and
other substitutions shall be made to the Plan and to Awards as the Committee, in
its sole discretion, deems equitable or appropriate, including, without
limitation, such adjustments in the aggregate number, class and kind of
securities that may be delivered under the Plan, in the aggregate or to any one
Participant, in the number, class, kind and option or exercise price of
securities subject to outstanding Options, SARs or other Awards granted under
the Plan, and in the number, class and kind of securities subject to Awards
granted under the Plan (including, if the Committee deems appropriate, the
substitution of similar options to purchase the shares of, or other awards
denominated in the shares of, another company) as the Committee may determine to
be appropriate in its sole discretion; provided, however, that the number of
Shares subject to any Award shall always be a whole number.

       

      SECTION
5.  ELIGIBILITY.  Any Employee, Director or
consultant who provides services to the Company or any Affiliate shall be
eligible to be selected as a Participant.

       

      SECTION
6.  AWARDS.  The Committee shall determine the type
of Awards to be granted or issued under the Plan and shall approve the terms and
conditions governing such Awards through the issuance of an Award
Agreement.  Awards may be granted singly, in combination, or in tandem
so that the settlement or payment of one automatically reduces or cancels the
other.

       

      (a)                 STOCK
OPTIONS.  Options may be granted hereunder to Participants either
alone or in addition to other Awards granted under the Plan.  Any
Option granted under the Plan shall be evidenced by an Award Agreement in such
form as the Committee may from time to time approve.  Any such Option
shall be subject to the following terms and conditions and to such additional
terms and conditions, not inconsistent with the provisions of the Plan, as the
Committee shall deem desirable:

       

      (i)           OPTION
PRICE.  The purchase price per Share purchasable under an Option shall
not be less than the Fair Market Value of the Share on the date of the grant,
except in the case of Substitute Awards or in connection with an adjustment
provided for in Section 4(c).

       

      (ii)           OPTION
PERIOD.  The term of each Option shall be fixed by the Committee in
its sole discretion; provided that no Option shall be exercisable after the
expiration of ten years from the date the Option is granted.

       

      (iii)           EXERCISABILITY.  Options
shall be exercisable at such time or times as determined by the Committee at or
subsequent to grant.  Except under certain circumstances in connection
with a Participant’s termination or in the event of a Change in Control, Options
will not be exercisable before the expiration of one year from the date the
Option is granted.

       

      (iv)           METHOD
OF EXERCISE.  Subject to the other provisions of the Plan, any Option
that is exercisable in accordance with the preceding paragraph may be exercised
by the Participant in whole or in part at such time or times, and the
Participant may make payment of the option price in such form or forms,
including, without limitation, payment by delivery of cash, delivery of Shares
(either actually or by attestation) already owned by the Participant for at
least six months (or any shorter period sufficient to avoid a charge to the
Company’s earnings for financial reporting purposes), via cashless exercise,
through a broker, or delivery of other consideration (including, where permitted
by law and the Committee, Awards) having a Fair Market Value on the exercise
date equal to the total option price, or by any combination of cash, such Shares
and other consideration as the Committee may specify in the applicable Award
Agreement.

       

      (v)           FORM
OF SETTLEMENT.  In its sole discretion, the Committee may provide, at
the time of grant, that the Shares to be issued upon an Option’s exercise shall
be in the form of Restricted Stock or other similar securities, or may reserve
the right so to provide after the time of grant.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      (vi)           PROHIBITION
ON REPRICING.  The Company may not reprice Option grants, including
the cancellation of an existing grant followed by a regrant, without the express
approval of stockholders.

       

      (b)                 STOCK
APPRECIATION RIGHTS.  Stock Appreciation Rights (“SARs”) may be
granted hereunder to Participants either alone (“freestanding”) or in addition
to other Awards granted under the Plan (“tandem”) and may, but need not, relate
to a specific Option granted under Section 6(a).  The provisions of
SARs need not be the same with respect to each recipient.  Any tandem
SAR related to an Option may be granted at the same time such Option is granted
or at any time thereafter before exercise or expiration of such
Option.  In the case of any tandem SAR related to any Option, the SAR
or applicable portion thereof shall terminate and no longer be exercisable upon
the termination or exercise of the related Option, except that a SAR granted
with respect to less than the full number of Shares covered by a related Option
shall not be reduced until the exercise or termination of the related Option
exceeds the number of Shares not covered by the SAR.  Any Option
related to any tandem SAR shall no longer be exercisable to the extent the
related SAR has been exercised.  The Committee may impose such
conditions or restrictions on the exercise of any SAR, as it shall deem
appropriate; provided that a freestanding SAR shall not have a term of greater
than ten years or an exercise price less than 100% of Fair Market Value of the
Share on the date of grant.  The Company may not reprice SAR grants,
including the cancellation of an existing grant followed by a regrant, without
the express approval of stockholders of the Company.

       

      (c)                 RESTRICTED
STOCK.

       

      (i)           ISSUANCE.  A
Restricted Stock Award shall be subject to restrictions imposed by the Committee
during a period of time specified by the Committee (the “Restriction
Period”).  Restricted Stock Awards may be issued hereunder to
Participants, for no cash consideration or for such minimum consideration as may
be required by applicable law, either alone or in addition to other Awards
granted under the Plan.  Restricted Stock Awards may be real shares
(Restricted Stock) or phantom shares (Restricted Stock Units). The provisions of
Restricted Stock Awards need not be the same with respect to each
recipient.   Except for certain limited situations, Restricted
Stock Awards granted to Employees subject solely to continued employment
conditions shall have a vesting period of not less than three
years.

       

      (ii)           REGISTRATION.  Any
Restricted Stock issued hereunder may be evidenced in such manner, as the
Committee, in its sole discretion, shall deem appropriate, including, without
limitation, book entry registration or issuance of a stock certificate or
certificates.  In the event any stock certificates are issued in
respect of Shares of Restricted Stock awarded under the Plan, such certificates
shall be registered in the name of the Participant and shall bear an appropriate
legend referring to the terms, conditions and restrictions applicable to such
Award.

       

      (iii)           FORFEITURE.  Except
as otherwise determined by the Committee at the time of grant or thereafter,
upon termination of employment or services for any reason during the Restriction
Period, all Shares of Restricted Stock still subject to restriction shall be
forfeited by the Participant and reacquired by the
Company.  Unrestricted Shares, evidenced in such manner as the
Committee shall deem appropriate, shall be issued to the grantee promptly after
expiration of the Restriction Period, as determined or modified by the
Committee.

       

      (d)                 PERFORMANCE
AWARDS.  Performance Awards may be issued hereunder to Participants,
for no cash consideration or for such minimum consideration as may be required
by applicable law, either alone or in addition to other Awards granted under the
Plan.  The performance criteria to be achieved during any Performance
Period and the length of the Performance Period shall be determined by the
Committee upon the grant of each Performance Award, provided, however, that a
Performance Period shall not be shorter than 12 months or longer than five
years.  Except as provided in Section 7, Performance Awards will be
distributed only after the end of the relevant Performance
Period.  Performance Awards may be paid in cash, Shares, other
property, or any combination thereof, in the sole discretion of the Committee at
the time of payment.  The performance levels to be achieved for each
Performance Period and the amount of the Award to be distributed shall be
conclusively determined by the Committee.  Performance Awards may be
paid in a lump sum or in installments following the close of the Performance
Period or, in accordance with procedures established by the Committee, on a
deferred basis.

       

      (e)                 DIVIDEND
EQUIVALENTS.  Dividend Equivalents may be granted hereunder to
Participants either alone (“freestanding”) or in connection with other Awards
granted under the Plan.  The provisions of Dividend Equivalents need
not be the same with respect to each recipient.  Subject to the
provisions of the Plan and any Award Agreement, the recipient of an Award
(including, without limitation any deferred Award) may, if so determined by the
Committee, be entitled to receive, currently or on a deferred basis, cash
dividends, or Dividend Equivalents with respect to the number of Shares

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      covered
by the Award, as determined by the Committee, in its sole discretion, and the
Committee may provide that such amounts (if any) shall be deemed to have been
reinvested in additional Shares or otherwise reinvested.

       

      (f)                 OTHER
STOCK UNIT AWARDS.

       

      (i)           STOCK
AND ADMINISTRATION.  Other Awards of Shares and other Awards that are
valued in whole or in part by reference to, or are otherwise based on, Shares or
other property (“Other Stock Unit Awards”) may be granted hereunder to
Participants, either alone or in addition to other Awards granted under the
Plan, and such other Stock Unit Awards shall also be available as a form of
payment in the settlement of other Awards granted under the
Plan.  Other Stock Unit Awards may be paid in Shares, cash or any
other form of property, as the Committee shall determine.  The
provisions of Other Stock Unit Awards need not be the same with respect to each
recipient. Except for certain limited situations, Other Stock Unit Awards
granted to Employees subject solely to continued employment conditions shall
have a vesting period of not less than three years.

       

      (ii)           TERMS
AND CONDITIONS.  Subject to the provisions of the Plan and any
applicable Award Agreement, Awards and Shares subject to Awards made under this
Section 6(f) may not be sold, assigned, transferred, pledged or otherwise
encumbered prior to the date on which the Shares are issued, or, if later, the
date on which any applicable restriction, performance or deferral period
lapses.  Shares (including securities convertible into Shares) subject
to Awards granted under this Section 6(f) may be issued for no cash
consideration or for such minimum consideration as may be required by applicable
law.  Shares (including securities convertible into Shares) purchased
pursuant to a purchase right awarded under this Section 6(f) shall be purchased
for such consideration as the Committee shall determine in its sole discretion,
which, except in the case of Substitute Awards, shall not be less than the Fair
Market Value of such Shares or other securities as of the date such purchase
right is awarded.

       

      SECTION
7.  CHANGE IN CONTROL PROVISIONS.

       

      (a)                 IMPACT
OF EVENT.  Subject to Section 7(a)(v) and notwithstanding any other
provision of the Plan to the contrary, unless the Committee shall determine
otherwise at the time of grant with respect to a particular Award, in the event
of a Change in Control:

       

      (i)           any
Options and SARs outstanding as of the date such Change in Control is determined
to have occurred, and which are not then exercisable and vested, shall become
fully exercisable and vested to the full extent of the original
grant;

       

      (ii)           the
restrictions and deferral limitations applicable to any Restricted Stock shall
lapse, and such Restricted Stock shall become free of all restrictions and
limitations and become fully vested and transferable to the full extent of the
original grant;

       

      (iii)           all
Performance Awards shall be immediately accelerated and considered to be earned
and payable pro rata based on: (a) the portion of the Performance Period that
has been completed as of the date such Change in Control is determined to have
occurred and (b) the actual performance as of such date, or if actual
performance is not calculable, target performance; in addition, any deferral or
other restriction shall lapse and such Performance Awards shall be immediately
settled or distributed; and

       

      (iv)           the
restrictions and deferral limitations and other conditions applicable to any
Other Stock Unit Awards or any other Awards shall lapse, and such Other Stock
Unit Awards or such other Awards shall become free of all restrictions,
limitations or conditions and become fully vested and transferable to the full
extent of the original grant.

       

       (b)                 CHANGE
IN CONTROL CASH-OUT.  Notwithstanding any other provision of the Plan,
in the event of a Change in Control the Committee may, in its discretion,
provide that each Option or SAR shall, upon the occurrence of a Change in
Control, be cancelled in exchange for a payment in an amount equal to the amount
by which the Change in Control Price per Share exceeds the purchase price per
Share under the Option or SAR (the “spread”) multiplied by the number of Shares
granted under the Option or SAR.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      SECTION
8. CODE SECTION 162(m) PROVISIONS.

       

      (a)                 Notwithstanding
any other provision of the Plan, if the Committee determines at the time
Restricted Stock, a Performance Award, Dividend Equivalents or an Other Stock
Unit Award is granted to a Participant who is then an officer that such Participant
is, or is likely to be as of the end of the tax year in which the Company would
claim a tax deduction in connection with such Award, a Covered Employee, then
the Committee may provide that this Section 8 is applicable to such
Award.

       

      (b)                 If
Restricted Stock, a Performance Award, a Dividend Equivalent or an Other Stock
Unit Award is subject to this Section 8, then the lapsing of restrictions
thereon and the distribution of cash, Shares or other property pursuant thereto,
as applicable, shall be subject to the achievement of one or more objective
performance goals established by the Committee.  Such performance
goals shall be set by the Committee within the time period prescribed by, and
shall otherwise comply with the requirements of, Section 162(m) of the Code, or
any successor provision thereto, and regulations thereunder.

       

      (i)           Performance
goals shall be based on the attainment of specified of one or any combination of
the following: operating income, net cash provided by operating activities,
earnings per share from continuing operations, revenues, operating margins,
return on operating assets, return on equity, economic value added, stock price
appreciation, total stockholder return, cost control, strategic initiatives,
market share, net income, or return on invested capital of the Company or the
Affiliate or division of the Company for or within which the Participant is
primarily employed.

       

      (ii)           Such
performance goals also may be based on the achievement of specified levels of
Company performance (or performance of an applicable Affiliate or division of
the Company) under one or more of the measures described above relative to the
performance of other corporations.  Such performance goals shall be
set by the Committee within the time period prescribed by, and shall otherwise
comply with the requirements of, Section 162(m) of the Code, or any successor
provision thereto, and the regulations thereunder.

       

      (iii)           the
measurement of the Company’s performance against its goals shall exclude the
impact of charges for restructurings, discontinued operations, extraordinary
items, and any other unusual or non-recurring items, and the cumulative effects
of accounting changes, each as defined by generally accepted accounting
principles and as identified in the Company’s financial statements, notes to the
financial statements or management’s discussion and analysis

       

      (c)                 Notwithstanding
any provision of the Plan other than Section 7, with respect to any Restricted
Stock, Performance Award, Dividend Equivalent or Other Stock Unit Award that is
subject to this Section 8, the Committee may adjust downwards, but not upwards,
the amount payable pursuant to such Award, and the Committee may not waive the
achievement of the applicable performance goals except in the case of the death
or disability of the Participant.

       

      (d)                 The
Committee shall have the power to impose such other restrictions on Awards
subject to this Section 8 as it may deem necessary or appropriate to ensure that
such Awards satisfy all requirements for “performance-based compensation” within
the meaning of Section 162(m)(4)(C) of the Code, or any successor provision
thereto.

       

      (e)                 Notwithstanding
any provision of the Plan other than Section 4(c), no Participant may be granted
Options or “freestanding” SARs during any three-year period with respect to more
than 1,000,000 Shares or Restricted Stock, Performance Shares, Dividend
Equivalents and/or Other Stock Unit Awards subject to this Section 8 that are
denominated in Shares in any three-year period with respect to more than 500,000
Shares, and the maximum dollar value payable with respect to Performance Units
and/or Other Stock Unit Awards that are valued with reference to property other
than Shares and granted to any Participant for any three-year period is
$4,000,000, with proportionate adjustments for shorter or longer performance
periods, not to exceed 5 years.
“Tandem” SARs granted in connection with other Awards pursuant to Section
6(b) and Deferred Stock Units granted as a result of a Participant’s voluntary
election to defer cash or other compensation otherwise payable to the
Participant shall not count against such limits.

       

      SECTION 9.  AMENDMENTS AND
TERMINATION.  The Board may amend, alter, suspend, discontinue
or terminate the Plan or any portion thereof at any time; provided, however,
that stockholder approval is required if such amendment, alteration, suspension,
discontinuation or termination would be required under the rules or listing
standards of the New York Stock Exchange, any other securities exchange or the
National Association of Securities Dealers, Inc. on which the Company’s
securities are listed, or such approval is required to qualify for or comply
with any tax or other regulatory 

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      requirement
for which or with which the Board deems it necessary or desirable to qualify or
comply.  In addition, no such amendment, alteration, suspension,
discontinuation or termination shall be made without the consent of the affected
Participant, if such action would impair the rights of such Participant under
any outstanding Award.  Notwithstanding anything to the contrary
herein, the Committee may amend the Plan in such manner as may be necessary so
as to have the Plan conform to local rules and regulations in any jurisdiction
outside the United States.

       

      The
Committee may amend the terms of any Award theretofore granted, prospectively or
retroactively, but no such amendment shall (a) impair the rights of any
Participant without his or her consent or (b) except for adjustments made
pursuant to Section 4(c) or in connection with Substitute Awards, reduce the
exercise price of outstanding Options or SARs or cancel or amend outstanding
Options or SARs for the purpose of repricing, replacing or regranting such
Options or SARs with an exercise price that is less than the exercise price of
the original Options or SARs without stockholder
approval.  Notwithstanding the foregoing, any adjustments made
pursuant to Section 4(c) shall not be subject to these
restrictions.

       

      SECTION
10.  GENERAL PROVISIONS.

       

      (a)                 No
Award, and no Shares subject to Awards described in Section 6(f) that have not
been issued or as to which any applicable restriction, performance or deferral
period has not lapsed, may be sold, assigned, transferred, pledged or otherwise
encumbered, except by will or by the laws of descent and distribution; provided,
however, that, if so determined by the Committee, a Participant may, in the
manner established by the Committee, designate a beneficiary to exercise the
rights of the Participant with respect to any Award upon the death of the
Participant.  Each Award shall be exercisable, during the
Participant’s lifetime, only by the Participant or, if permissible under
applicable law, by the Participant’s guardian or legal
representative.  Notwithstanding the foregoing, the Committee, in its
sole discretion, may permit a Participant to assign or transfer an Award;
provided, however, that an Award so assigned or transferred shall be subject to
all the terms and conditions of the Plan and the instrument evidencing the
Award.

       

      (b)                 No
Employee or Participant shall have any claim to be granted any Award under the
Plan, and there is no obligation for uniformity of treatment of Employees or
Participants under the Plan.

       

      (c)                 If
required by the Committee, the prospective recipient of any Award under the Plan
shall not, with respect to such Award, be deemed to have become a Participant,
or to have any rights with respect to such Award, until and unless such
recipient shall have executed an agreement or other instrument evidencing the
Award and delivered a copy thereof to the Company, and otherwise complied with
the then applicable terms and conditions.

       

      (d)                 Nothing
in the Plan or any Award granted under the Plan shall be deemed to constitute an
employment or service contract or confer or be deemed to confer on any
Participant any right to continue in the employ or service of, or to continue
any other relationship with, the Company or any Affiliate or limit in any way
the right of the Company or any Affiliate to terminate a Participant’s
employment or service or other relationship at any time, with or without
cause.

       

      (e)                 Except
as provided in Section 8, the Committee shall be authorized to make adjustments
in performance award criteria or in the terms and conditions of other Awards in
recognition of unusual or nonrecurring events affecting the Company or its
financial statements or changes in applicable laws, regulations or accounting
principles.  The Committee may correct any defect, supply any omission
or reconcile any inconsistency in the Plan or any Award in the manner and to the
extent it shall deem desirable to carry it into effect.  In the event
that the Company shall assume outstanding employee benefit awards or the right
or obligation to make future such awards in connection with the acquisition of
or combination with another corporation or business entity, the Committee may,
in its discretion, make such adjustments in the terms of Awards under the Plan
as it shall deem appropriate.

       

      (f)                 The
Committee shall have full power and authority to determine whether, to what
extent and under what circumstances any Award shall be canceled or
suspended

       

      (g)                 All
certificates for Shares delivered under the Plan pursuant to any Award shall be
subject to such stock-transfer orders and other restrictions as the Committee
may deem advisable under the rules, regulations and other requirements of the
Securities and Exchange Commission, any stock exchange upon which the Shares are
then listed, and any applicable federal or state securities law, and the
Committee may cause a legend or legends to be put on any such certificates to
make appropriate reference to such restrictions.

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      (h)                 No
Award granted hereunder shall be construed as an offer to sell securities of the
Company, and no such offer shall be outstanding, unless and until the Committee
in its sole discretion has determined that any such offer, if made, would comply
with all applicable requirements of the U.S. federal securities laws and any
other laws to which such offer, if made, would be subject.

       

      (i)                 The
Committee shall be authorized to establish procedures pursuant to which the
payment of any Award may be deferred.  In addition, Subject to the
provisions of the Plan and any Award Agreement, the recipient of an Award
(including, without limitation any deferred Award) may, if so determined by the
Committee, be entitled to receive, currently or on a deferred basis, cash
dividends, or Dividend Equivalents with respect to the number of Shares covered
by the Award, as determined by the Committee, in its sole discretion, and the
Committee may provide that such amounts (if any) shall be deemed to have been
reinvested in additional Shares or otherwise reinvested.

       

      (j)                 Except
as otherwise required in any applicable Award Agreement or by the terms of the
Plan, recipients of Awards under the Plan shall not be required to make any
payment or provide consideration other than the rendering of
services.

       

      (k)                 The
Committee may delegate to a committee of one or more directors of the Company
or, to the extent permitted by Delaware law, to one or more officers or a
committee of officers the right to grant Awards to Employees who are not
officers or directors of the Company and to cancel or suspend Awards to
Employees who are not officers or Directors of the Company.

       

      (l)                 The
Company shall be authorized to withhold from any Award granted or payment due
under the Plan the amount of withholding taxes due in respect of an Award or
payment hereunder and to take such other action as may be necessary in the
opinion of the Company to satisfy all obligations for the payment of such
taxes.  The Committee shall be authorized to establish procedures for
election by Participants to satisfy such obligation for the payment of such
taxes by delivery of or transfer of Shares to the Company (up to the employee’s
minimum required tax withholding rate to the extent the Participant has owned
the surrendered shares for less than six months if such a limitation is
necessary to avoid a charge to the Company for financial reporting purposes), or
by directing the Company to retain Shares (up to the employee’s minimum required
tax withholding rate) otherwise deliverable in connection with the
Award.

       

      (m)                 Nothing
contained in the Plan shall prevent the Board from adopting other or additional
compensation arrangements, subject to stockholder approval if such approval is
required; and such arrangements may be either generally applicable or applicable
only in specific cases.

       

      (n)                 The
validity, construction and effect of the Plan and any rules and regulations
relating to the Plan shall be determined in accordance with the laws of the
State of Delaware and applicable federal law.

       

      (o)                 If
any provision of the Plan is or becomes or is deemed invalid, illegal or
unenforceable in any jurisdiction, or would disqualify the Plan or any Award
under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform to applicable laws or if it cannot be
construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan, it shall be stricken and the
remainder of the Plan shall remain in full force and effect.

       

      (p)                 Awards
may be granted to Participants who are foreign nationals or employed outside the
United States, or both, on such terms and conditions different from those
applicable to Awards to Employees employed in the United States as may, in the
judgment of the Committee, be necessary or desirable in order to recognize
differences in local law or tax policy.  The Committee also may impose
conditions on the exercise or vesting of Awards in order to minimize the
Company’s obligation with respect to tax equalization for Employees on
assignments outside their home country.

       

      SECTION 11.  EFFECTIVE DATE
OF PLAN. The Plan shall be effective as of May 19, 2004.

       

      SECTION 12.  TERM OF
PLAN.  The Plan shall terminate on the tenth anniversary of the
effective date, unless sooner terminated by the Board pursuant to Section
9.

       

      SECTION
13.  INDEMNIFICATION.  In addition to such other
rights of indemnification as they may have as members of the Board of Directors,
the members of the Committee shall be indemnified by the Company to the fullest
extent permitted 

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      by law
against the reasonable expenses, including attorney’s fees, actually and
necessarily incurred in connection with the defense of any action, suit or
proceeding, or in connection with any appeal therein, to which they or any of
them may be a party by reason of any action taken or failure to act under or in
connection with the Plan or any Option granted thereunder, and against all
amounts paid by them in satisfaction of a judgment in any such action, suit or
proceeding except in relation to matters as to which it shall be adjudged in
such action, suit or proceeding that such Committee member is not entitled to
indemnification under applicable law; provided, however, that within
sixty (60) days after institution of any such action, suit or proceeding
such Committee member shall in writing offer the Company the opportunity, at the
Company’s expense to handle and defend the same, and such Committee member shall
cooperate with and assist the Company in the defense of any such action, suit or
proceeding.  The Company shall not be obligated to indemnify any
Committee member with regard to any settlement of any action, suit or proceeding
of which the Company did not consent to in writing prior to such
settlement.

       

      SECTION 14.  GOVERNING LAW.
The Plan, any Award Agreement, any Award granted and any action taken
hereunder shall be governed by and construed in accordance with the laws of the
State of Delaware, without reference to principles of conflicts of laws
thereof.

      

      SECTION
15.                                           
CODE SECTION 409A PROVISIONS.

      

      (a)                 Notwithstanding
any other provision of the Plan, effective as of January 1, 2007, this Section
15 shall be applicable to each Award that constitutes deferred compensation
within the meaning of Section 409A of the Code, as more fully addressed in
Section 15(b) below.

      

      (b)                 An
Award shall constitute deferred compensation, and thus shall be subject to this
Section 15, if the Award provides a Participant in one year with a legally
binding right to income or other taxable benefit that shall be paid in a future
year, unless:

       

      (i)           Payment
under the Award will be made no later than 21⁄2 months after the end of the first
year during which the amount is no longer subject to a substantial risk of
forfeiture (if applicable); or

       

       

      (ii)           The
Award is one described in Section 15(c) below.

       

      

      An Award
made under the Plan that is subject to the provisions of this Section 15 shall
hereafter be referred to as a “Section 409A Award.”

      

      (c)                 The
Awards described below are not deemed to be deferred compensation, and thus are
not subject to this Section 15.

       

      (i)           An
Option with respect to the purchase of Shares, provided that the exercise price
is never less than the Fair Market Value of the Shares at the date of the grant,
and the number of Shares subject to the Option is fixed on the original date of
the grant;

       

       

      (ii)           Restricted
Stock and any other restricted property; and

       

       

      (iii)           A
Stock Appreciation Right (“SAR”), provided that

       

       

      (A)                 The
amount payable under the SAR is not greater than the difference between the Fair
Market Value of the Shares on the date of the grant and the Fair Market Value of
the Shares on the date of exercise; and

       

       

      (B)                 The
exercise price of the SAR may never be less than the Fair Market Value of the
Shares on the date the right is granted.

       

      

      For
purposes of this subsection (c), the Fair Market Value of Shares shall be
determined without regard to any lapse restrictions within the meaning of IRS
Regulation §1.83-3(i).

      

      Notwithstanding
the foregoing, an Award described above shall constitute deferred compensation
for purposes of this Section 15 if it is granted as a Substitute Award in
substitution or exchange for an Award that constitutes deferred
compensation.

      

      (d)                 A
Section 409A Award must provide that payment to a Participant may be made only
upon an event described below:

       

      (i)           The
Participant’s separation from service with the Company (subject to the
restriction on distributions to key employees prescribed in Section 15(f)
below);

       

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

       

      (ii)           The
Participant becoming disabled;

       

       

      (iii)           The
death of the Participant;

       

       

      (iv)           A
specified time (or pursuant to a fixed schedule) established at the time of the
Award; or

       

       

      (v)           Such
other permitted event prescribed under Code Section 409A or the regulations
issued thereunder.

      

      (e)                 A
Section 409A Award must provide for a date of payment or payments that is
objectively determinable at the time the permitted payment event
occurs.  Payment can also be made in accordance with a fixed schedule
that is objectively determined based on the date of the allowed payment event if
the schedule is fixed at the time the permissible payment event is
specified.  The Award can provide for payment upon the later of (or
the latest of) two or more permissible payment events so long as each separate
payment event is a permitted payment event.  Alternatively, payment
may be made upon the earlier of (or the earliest of) two or more permissible
payment events if each payment event is a permitted payment event.

      

      (f)                 Notwithstanding
Sections 15(d) and (e) above, a Section 409A Award must provide that payment to
be made to a “key employee” (as determined under Code Section 416(i) without
considering Section 416(i)(5)) by reason of the key employee’s separation from
service cannot be made prior to the date which is six months after the date of
the key employee’s separation from service.  If payments are to be
made in installments, then the installments will be deemed to be a single
payment so that only the commencement of the installments, rather than each
scheduled payment, shall be subject to the six-month deferred payment
rule.

      

      (g)                 The
time or schedule of any payment to be made under a Section 409A Award may not be
accelerated, except as expressly permitted under Code Section
409A.  For this purpose, an acceleration of the time or the schedule
of payments shall not be deemed to have occurred if the Company or Committee
waives or accelerates the satisfaction of a condition constituting a substantial
risk of forfeiture applicable to the Award, but only if the requirements of this
Section 15 are otherwise satisfied with respect to that Award.  The
time or schedule of payments may also be accelerated, if the Award so permits,
as necessary for the Participant to pay the FICA taxes imposed under Code
Sections 3101, 3121(a) and 3121(v)(2) on the Award, or so that the income tax
withholding can be paid on the Award (if constituting wages included in the
Participant’s income) as imposed by Code Section 3401.

      

      (h)                 If
a Section 409A Award allows a Participant, or the Company or Committee, to elect
to change the form or time of a distribution under the Award, then the Award
must provide that the subsequent election may not take effect until at least
twelve months after the date on which the election is made.  If an
election is related to a payment for separation from service or at a specified
time or schedule, the Award must require that the payment with respect to which
the subsequent election is made shall be deferred for a period of not less than
five years from the date of payment.

       

       

       

       

      13

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