Document:

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                                                                Exhibit 10(z)(7)

                                 FIRST AMENDMENT
                     TO REVOLVING/TERM LOAN CREDIT AGREEMENT

      This First Amendment to Revolving/Term Loan Credit Agreement (this
"Amendment") is entered into as of September 3, 2004, by and between Ashworth,
Inc., a Delaware corporation ("Borrower"), each lender from time to time party
to the Credit Agreement (as defined below) (collectively, the "Lenders" and
individually, a "Lender"), and UNION BANK OF CALIFORNIA, N.A., as Agent and as
U.K. Security Trustee (in such capacity, "Agent").

                                    RECITALS

      Borrower, Agent and the Lenders are parties to that certain Revolving/Term
Loan Credit Agreement dated as of July 6, 2004, as amended from time to time
(the "Credit Agreement"). The parties desire to amend the Credit Agreement in
accordance with the terms of this Amendment. Unless otherwise defined, all
initially capitalized terms in this Amendment shall be as defined in the Credit
Agreement.

      NOW, THEREFORE, the parties agree as follows:

      1. Lenders hereby waive Borrower's compliance with Section 6. 12(a) of the
Credit Agreement as in effect prior to the date of this Amendment, solely for
the period ended July 31, 2004.

      2. For the period ending October 31, 2004 only, Section 6.12(a) of the
Credit Agreement hereby is amended and restated to read as follows:

            "(a) Tangible Net Worth. Maintain on a consolidated basis Tangible
Net Worth equal to at least the sum of the following:

                  (i) Seventy Four Million Dollars ($74,000,000); plus

                  (ii) The net proceeds from any equity securities issued after
      the date of this Agreement. "

      3. For the period ending January 31, 2005 and thereafter, Section 6. 12(a)
of the Credit Agreement hereby is amended and restated to read as follows:

            "(a) Tangible Net Worth. Maintain on a consolidated basis Tangible
Net Worth equal to at least the sum of the following:

                  (i) Seventy Four Million Dollars ($74,000,000); plus

                  (ii) the sum of 90% of net income after income taxes (without
      subtracting losses) earned in each quarterly accounting period commencing
      on January 31, 2005; plus

                  (iii) the net proceeds from any equity securities issued after
      the date of this Agreement."

      4. No course of dealing on the part of Lenders, Agent or its officers, nor
any failure or delay in the exercise of any right by Agent or any Lender, shall
operate as a waiver thereof, and any single or partial exercise of any such
right shall not preclude any later exercise of any such right. Agent's or
Lenders' failure at any time to require strict performance by Borrower of any
provision of any Loan Document shall not affect any right of Lenders or Agent
thereafter to demand strict compliance and performance. Any suspension or waiver
of a right must be in writing signed by an officer of Agent, in accordance with
the terms of the Credit Agreement.

                                      -1-
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      5. The Credit Agreement, as amended hereby, shall be and remain in full
force and effect in accordance with its respective terms and hereby is ratified
and confirmed in all respects. Except as expressly set forth herein, the
execution, delivery, and performance of this Amendment shall not operate as a
waiver of, or as an amendment of, any right, power, or remedy of Agent or
Lenders under the Credit Agreement, as in effect prior to the date hereof.

      6. Borrower represents and warrants that the Representations and
Warranties contained in the Credit Agreement are true and correct as of the date
of this Amendment, and that, except as expressly waived hereby, no Event of
Default has occurred and is continuing.

      7. As a condition to the effectiveness of this Amendment, Agent shall have
received, in form and substance satisfactory to Agent, the following:

                  (a) this Amendment, duly executed by Borrower;

                  (b) all reasonable Attorney Costs incurred through the date of
this Amendment, which may be debited from any of Borrower's accounts; and

                  (c) such other documents, and completion of such other
matters, as Agent may reasonably deem necessary or appropriate.

      8. This Amendment may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one instrument.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK]]

                                      -2-
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      IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the
first date above written.

                                        ASHWORTH, INC.

                                        By:  /s/Terence W. Tsang

                                        Title: Its Executive Vice President,
                                        Chief Operating Officer, Chief Financial
                                        Officer, Chief Accounting Officer and
                                        Treasurer

                                        UNION BANK OF CALIFORNIA, N.A., as Agent

                                        By: /s/L.D. Hart

                                        Name: L.D. Hart

                                        Title: Vice President

                                        UNION BANK OF CALIFORNIA, N.A., as U.K.
                                        Security Trustee

                                        By: /s/L.D. Hart

                                        Name: L.D. Hart

                                        Title: Vice President

                                        UNION BANK OF CALIFORNIA, N.A.., as a
                                        Lender

                                        By: /s/L.D. Hart

                                        Name: L.D. Hart

                                        Title: Vice President

                       [SIGNATURE PAGE TO FIRST AMENDMENT
                    TO REVOLVING/TERM LOAN CREDIT AGREEMENT]

                        [SIGNATURES CONTINUED NEXT PAGE]

<PAGE>

                                        BANK OF THE WEST

                                        By: /s/Jacob A. Lenhof

                                        Name: Jacob A. Lenhof

                                        Title: Vice President

                                        COLUMBUS BANK AND TRUST

                                        By: /s/M. Kent Fleming

                                        Name: M. Kent Fleming

                                        Title: Senior Vice President

                       [SIGNATURE PAGE TO FIRST AMENDMENT
                    TO REVOLVING/TERM LOAN CREDIT AGREEMENT]<PAGE>

                                                                     EXHIBIT 4.3

                           NATIONAL COMMERCE FINANCIAL
                                   CORPORATION

                          2003 STOCK AND INCENTIVE PLAN

                     Approved by Shareholders April 23, 2003

<PAGE>
                                TABLE OF CONTENTS

2003 Stock and Incentive Plan

<TABLE>
<S>        <C>
 1.        Purpose
 2.        Definitions
 3.        Administration
 4.        Term of Plan/Common Stock Subject to Plan
 5.        Eligibility
 6.        Stock Options
 7.        Restricted Awards
 8.        Performance Awards
 9.        Outright Stock Awards
 10.       Deferral Elections
 11.       Termination of Employment
 12.       Non-transferability of Awards
 13.       Changes in Capitalization and Other Matters
 14.       Change in Control
 15.       Amendment, Suspension and Termination
 16.       Miscellaneous
</TABLE>

Exhibits

<TABLE>
<S>        <C>
 A.        Incentive Stock Option Agreement

 B.        Non-Qualified Stock Option Agreement for Key Employees

 C.        Non-Qualified Stock Option Agreement for Non-Employee Directors

 D.        Restricted Stock Agreement

 E.        Performance Unit Agreement

 F.        Performance Share Agreement
</TABLE>

<PAGE>

                     NATIONAL COMMERCE FINANCIAL CORPORATION

                          2003 STOCK AND INCENTIVE PLAN

      1. PURPOSE. The purpose of this Plan is to further and promote the
interests of National Commerce Financial Corporation (the "Company") and its
shareholders by enabling the Company and its Subsidiaries to attract, retain and
motivate employees and directors, and to align the interests of such employees
and directors with those of the Company's shareholders. Additionally, this
Plan's objectives are to provide a competitive reward for achieving longer-term
goals, provide balance to short-term incentive awards, and reinforce a "one
company" perspective. To do so, this Plan offers equity-based incentive awards
and opportunities and performance-based stock and cash incentives to provide
such employees and directors with a proprietary interest in maximizing the
growth, profitability and overall success of the Company.

      2. DEFINITIONS. For purposes of this Plan, the following terms shall have
the meanings set forth below:

            2.1 "AWARD" means an award, grant or issuance made to a Participant
under Sections 6, 7, 8, and/or 9.

            2.2 "AWARD AGREEMENT" means the agreement executed by a Participant
pursuant to Sections 3.2 and 16.7 in connection with the granting of an Award.

            2.3 "BOARD" means the Board of Directors of the Company, as
constituted from time to time.

            2.4 "CODE" means the Internal Revenue Code of 1986, as in effect and
as amended from time to time, or any successor statute thereto, together with
any rules, regulations and interpretations promulgated thereunder or with
respect thereto.

            2.5 "COMMITTEE" means the Compensation Committee of the Board, as
constituted in accordance with Section 3.

            2.6 "COMMON STOCK" means the Common Stock of the Company.

            2.7 "COMPANY" means National Commerce Financial Corporation, a
Tennessee corporation, or any successor corporation to National Commerce
Financial Corporation.

            2.8 "DISABILITY" means disability as determined by the Committee in
accordance with standards and procedures similar to those under the Company's
long-term disability plan, if any. If the Company does not then maintain a
long-term disability plan, Disability shall mean the inability of a Participant,
as determined by the Committee, substantially to perform such Participant's
regular duties and responsibilities due to a medically determinable physical or
mental illness which has lasted (or can reasonably be expected to last) for a
period of six (6) consecutive months.

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            2.9 "EXCHANGE ACT" means the Securities Exchange Act of 1934, as in
effect and as amended from time to time, or any successor statute thereto,
together with any rules, regulations and interpretations promulgated thereunder
or with respect thereto.

            2.10 "FAIR MARKET VALUE" means on, or with respect to, any given
date, the last sale price of the Common Stock as reported on the New York Stock
Exchange ("NYSE") or any other securities exchange the stock is currently
trading on.

            2.11 "INCENTIVE STOCK OPTION" means any stock option granted
pursuant to the provisions of Section 6 that is intended to be (and is
specifically designated as) an "incentive stock option" within the meaning of
Section 422 of the Code.

            2.12 "NON-EMPLOYEE DIRECTOR" means a member of the Board or of the
Board of Directors of a Subsidiary who is not an employee of the Company or any
Subsidiary.

            2.13 "NON-QUALIFIED STOCK OPTION" means any stock option awarded
pursuant to the provisions of Section 6 of the Plan that is not an Incentive
Stock Option.

            2.14 "PARTICIPANT" means an employee, Non-Employee Director or other
individual who is selected by the Committee under Section 5 to receive an Award.

            2.15 "PERFORMANCE AWARDS" means Performance Shares or Performance
Units granted pursuant to Section 8.

            2.16 "PERFORMANCE SHARES" means a right granted to a Participant
under Section 8 hereof to a unit to be valued by reference to a designated
number of shares of Common Stock to be paid to the Participant upon achievement
of such Performance Goals as the Committee establishes under Section 8.4 with
regard to such Performance Shares.

            2.17 "PERFORMANCE UNITS" means a right granted to a Participant
under Section 8 to a cash award, or unit valued by reference to a designated
amount of cash or property other than shares of Common Stock, to be paid to the
Participant upon achievement of such Performance Goals as the Committee
establishes under Section 8.4 with regard to such Performance Units.

            2.18 "PLAN" means the National Commerce Financial Corporation 2003
Stock and Incentive Plan, as in effect and as amended from time to time
(together with any rules and regulations promulgated by the Committee with
respect thereto).

            2.19 "RESTRICTED AWARD" means an Award of Restricted Stock pursuant
to the provisions of Section 7.

            2.20 "RESTRICTED STOCK" means shares of Common Stock granted
pursuant to the provisions of Section 7 subject to the restriction that the
holder may not sell, transfer, pledge, or assign such Restricted Stock and such
other restrictions (which other restrictions may expire separately or in
combination, at one time, from time to time or in installments), as determined
by the Committee in accordance with and as set forth in this Plan and/or the
relevant Award Agreement.

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<PAGE>

            2.21 "RETIREMENT" means (i) as to officers and employees, retirement
from active employment with the Company and its Subsidiaries either pursuant to
the Company's stated retirement policy or by agreement with the Board of
Directors and (ii) as to Non-Employee Directors, the same as "Retirement" under
the "Retirement Policy" in effect for the Board of Directors on which the
Participant was serving upon receipt of an Award.

            2.22 "STOCK OPTIONS" means Incentive Stock Options and Non-Qualified
Stock Options.

            2.23 "SUBSIDIARY(IES)" means any corporation (other than the
Company) in an unbroken chain of corporations, beginning with the Company, if
each of such corporations, other than the last corporation in the unbroken
chain, owns fifty percent (50%) or more of the voting stock in one of the other
corporations in such chain.

      3.    ADMINISTRATION.

            3.1 THE COMMITTEE. This Plan shall be administered by the Committee.
The Committee shall be appointed from time to time by the Board and shall be
comprised of not less than three (3) of the then members of the Board who are
"non-employee directors" within the meaning of SEC Regulation Section 240.16b-3
and "outside directors" within the meaning of Section 162(m) of the Code or any
successor provisions thereto.

            3.2 PLAN ADMINISTRATION AND PLAN RULES. The Committee is authorized
to construe and interpret this Plan and to promulgate, amend and rescind rules,
policies and regulations relating to the implementation, administration and
maintenance of this Plan. Subject to the terms and conditions of this Plan, the
Committee shall make all determinations necessary or advisable for the
implementation, administration and maintenance of this Plan including, without
limitation, (a) selecting Participants, (b) making Awards in such amounts and
form as the Committee shall determine, (c) imposing such restrictions, terms and
conditions upon such Awards as the Committee shall deem appropriate (including,
but not limited to, any restriction or limitation on transfer or any "reload"
upon exercise of any Stock Option granted), and (d) correcting any defect or
omission, or reconciling any inconsistency, in this Plan and/or any Award
Agreement. The Committee may designate persons other than members of the
Committee to carry out the day-to-day administration of this Plan under such
conditions and limitations as it may prescribe, except that the Committee shall
not delegate its authority with regard to selection for participation in this
Plan and/or the granting of any Awards to Participants. The Committee's
determinations under the Plan need not be uniform and may be made selectively
among Participants, whether or not such Participants are similarly situated. Any
determination, decision or action of the Committee in connection with the
construction, interpretation, administration, implementation or maintenance of
this Plan shall be final, conclusive and binding upon all Participants and any
person(s) claiming under or through any Participant(s). The Company shall effect
the granting of Awards under this Plan, in accordance with the determinations
made by the Committee, by execution of written agreements and/or other
instruments in such form as is approved by the Committee.

            3.3 LIABILITY LIMITATION. Neither the Board nor the Committee, nor
any member of either, shall be liable for any act, omission, interpretation,
construction or

                                       3
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determination made in good faith in connection with this Plan (or any Award
Agreement), and the members of the Board and the Committee shall be entitled to
indemnification and reimbursement by the Company in respect of any claim, loss,
damage or expense (including, without limitation, attorneys' fees) arising or
resulting therefrom to the fullest extent permitted by the Charter and/or
By-Laws of the Company as then in effect and to the fullest extent under any
indemnification agreement and/or directors' and officers' liability insurance
coverage which may be in effect from time to time.

      4.    TERM OF PLAN/COMMON STOCK SUBJECT TO PLAN.

            4.1   TERM. This Plan shall terminate on April 22, 2008, except with
respect to Awards then outstanding. After such date no further Awards shall be
granted under the Plan.

            4.2   COMMON STOCK SUBJECT TO PLAN.

                  4.2.1 COMMON STOCK. The Board shall reserve for Awards under
      this Plan 10,000,000 shares of the authorized and unissued shares of
      Common Stock. In the event of a change in the Common Stock of the Company
      that is limited to a change in the designation thereof to "Capital Stock"
      or other similar designation, or to a change in the par value thereof, or
      from par value to no par value, without increase or decrease in the number
      of issued shares, the shares resulting from any such change shall be
      deemed to be the Common Stock for purposes of this Plan. Common Stock
      which may be issued under this Plan shall be authorized and unissued
      shares. No fractional shares of Common Stock shall be issued under this
      Plan.

                  4.2.2 MAXIMUM NUMBER OF SHARES. The maximum number of shares
      of Common Stock for which Awards may be granted to any Participant in any
      year is 300,000 shares, except that the maximum number of shares of Common
      Stock for which Awards may be granted to the Company's Chief Executive
      Officer in any year is 500,000.

            4.3   COMPUTATION OF AVAILABLE SHARES. For the purpose of computing
the total number of shares of Common Stock available for Awards, there shall be
counted against the limitations set forth in Section 4.2 the maximum number of
shares of Common Stock potentially subject to issuance upon exercise or
settlement of Awards granted under Section 6, the number of shares of Common
Stock issued or subject to potential issuance under Awards of Restricted Stock
pursuant to Section 7, the maximum number of shares of Common Stock potentially
issuable under Performance Awards pursuant to Section 8 and the maximum number
of shares of Common Stock potentially issuable under Awards of Common Stock
pursuant to Section 9, in each case determined as of the date on which such
Awards are granted. If any Award expires unexercised or is forfeited,
surrendered, canceled, terminated or settled in cash in lieu of Common Stock,
the shares of Common Stock which were theretofore subject (or potentially
subject) to such Award shall again be available for Awards under this Plan to
the extent of such expiration, forfeiture, surrender, cancellation, termination
or settlement of such Awards; provided, however, that forfeited Awards shall not
again be available for Awards under this Plan if the Participant received,
directly or indirectly, any of the benefits of ownership of the securities of
the Company underlying such Award, including, without limitation, the benefit
described in Section 7.6.

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<PAGE>

      5.    ELIGIBILITY. Individuals eligible for Awards under the Plan shall
consist of (a) employees of the Company and/or its Subsidiaries whose
performance or contribution, in the sole discretion of the Committee, benefits
or will benefit the Company in a significant manner, (b) Non-Employee Directors
and (c) in the sole discretion of the Committee, consultants or advisors of the
Company and/or any Subsidiary who (i) are natural persons, (ii) provide bona
fide services to the Company and/or any Subsidiary and (iii) provide services
that 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's or any Subsidiary's securities.

      6.    STOCK OPTIONS.

            6.1   TERMS AND CONDITIONS. Stock Options awarded under this Plan
may be in the form of Incentive Stock Options or Non-Qualified Stock Options.
Such Stock Options shall be subject to the terms and conditions set forth in
this Section 6 and any additional terms and conditions, not inconsistent with
the express terms and provisions of this Plan, as the Committee shall set forth
in the relevant Award Agreement.

            6.2   GRANT. Stock Options may be granted under this Plan in such
form as the Committee may from time to time approve. Subject to Section 5, Stock
Options may be granted alone or in addition to other Awards. Notwithstanding the
above, no Incentive Stock Options shall be granted to any employee who owns more
than 10% of the combined total voting power of the Company or any Subsidiary,
unless the requirements of Section 422(c)(5) (or any successor provision) of the
Code are satisfied.

            6.3   EXERCISE PRICE. The exercise price per share of Common Stock
subject to a Stock Option shall be determined by the Committee at the time of
Award; provided, however, that the exercise price of any Stock Option shall not
be less than one hundred percent (100%) of the Fair Market Value of the Common
Stock on the date of the Award of such Stock Option. For any Participant who
owns ten percent (10%) or more of the combined total voting power of the Company
or any Subsidiary, the exercise price of an Incentive Stock Option shall not be
less than one hundred ten percent (110%) of such Fair Market Value.

            6.4   NO REPRICING. Notwithstanding the provisions of Section 15
below or any other provision of this Plan, the Plan prohibits any amendment to
an outstanding Stock Option to decrease the exercise price, except as provided
in Section 13 below, or any cancellation of an outstanding Stock Option in
consideration for the grant of a new option with a lower exercise price, unless
approved by the shareholders.

            6.5   TERM. The term of each Stock Option shall be such period of
time as is fixed by the Committee at the time of grant; provided, however, that
the term of any Incentive Stock Option shall not exceed ten (10) years after the
date the Incentive Stock Option is awarded. For any Participant who owns ten
percent (10%) or more of the combined total voting power of the Company or any
Subsidiary, the term of each Incentive Stock Option shall not exceed five (5)
years.

            6.6   METHOD OF EXERCISE. A Stock Option may be exercised, in whole
or in part, by giving written notice of exercise to the Director of Human
Resources of the Company, or

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<PAGE>

such other officer of the Company as the Committee shall designate, specifying
the number of shares to be purchased. Such notice shall be accompanied by
payment in full of the exercise price in cash, by certified check, bank draft or
money order payable to the order of the Company or, if permitted by the terms of
the relevant Award Agreement and applicable law, by delivery of, alone or in
conjunction with a partial cash or instrument payment, (a) a fully-secured,
recourse promissory note, or (b) shares of Common Stock already owned by the
Participant for at least six (6) months prior to the exercise date. The
Committee may, in the relevant Award Agreement, also permit Participants (either
on a selective or group basis) to simultaneously exercise Stock Options and sell
through a broker the shares of Common Stock thereby acquired, and use the
proceeds from such sale as payment of the exercise price of such Stock Options,
by delivering to the broker irrevocable instructions to promptly deliver to the
Company the amount of the sale proceeds needed to pay the exercise price.
Payment instruments shall be received by the Company subject to collection. The
proceeds received by the Company upon exercise of any Stock Option may be used
by the Company for general corporate purposes.

            6.7   DATE OF EXERCISE. Vesting dates of Stock Options awarded to a
Participant will be specified in the applicable Award Agreement at the
discretion of the Committee. Stock Options that meet the vesting requirements
may be exercised in whole or in part at any time and from time to time during
their specified terms.

            6.8   SHARE NCF PROGRAM. The Committee as part of this Plan shall
maintain a program under which the Committee shall have the right (where the
Committee deems appropriate) to condition the grant of a Stock Option to a
Participant who is an employee in whole or in part on the purchase of Common
Stock by such Participant, and the Committee shall establish such rules and
procedures for the purchase of Common Stock and the related grant of any Stock
Option under such program as the Committee deems appropriate under the
circumstances; provided, however, that (1) all Common Stock purchases under such
program shall be made in the open market and (2) the Committee shall grant any
related Stock Option at an exercise price equal to the purchase price paid by
the Participant in purchasing such Common Stock in the open market.

            6.9   RELOAD OPTIONS. At the discretion of the Committee, Stock
Options granted under the Plan may include a so-called "reload" feature pursuant
to which a Participant exercising a Stock Option by the delivery of a number of
shares of Common Stock in accordance with Section 6.6 hereof would automatically
be granted an additional Stock Option (with an exercise price equal to the Fair
Market Value of the Common Stock on the date the additional Stock Option is
granted and with the same expiration date as the original Stock Option being
exercised, and with such other terms as the Committee may provide) to purchase
that number of shares of Common Stock equal to the number delivered to exercise
the original Stock Option.

      7.    RESTRICTED AWARDS.

            7.1   TERMS AND CONDITIONS. Restricted Awards shall be in the form
of grants of Restricted Stock. Restricted Awards shall be subject to the terms
and conditions set forth in this Section 7 and any additional terms and
conditions, not inconsistent with the express terms and provisions of this Plan,
as the Committee shall set forth in the relevant Award Agreement.

            7.2   RESTRICTED STOCK GRANTS. An Award of Restricted Stock is an
Award of

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<PAGE>

shares of Common Stock, in uncertificated form, issued to and registered with
the Company's designated Stock Transfer Agent, in the name of the applicable
Participant, subject to such restrictions, terms and conditions as the Committee
deems appropriate, including, without limitation, restrictions on the sale,
assignment, transfer, pledge, hypothecation or other disposition of such shares
and the requirements that the Participant deposit such shares with the Company
while such shares are subject to such restrictions and that such shares be
forfeited upon termination of employment or cessation of service as a
Non-Employee Director for specified reasons within a specified period of time.

            7.3   GRANTS OF AWARDS.

                  7.3.1 Subject to Section 5, Restricted Awards may be granted
      alone or in addition to any other Awards. Subject to the terms of this
      Plan, the Committee shall determine the number of Restricted Awards to be
      granted to a Participant and the Committee may impose different terms and
      conditions on any particular Restricted Award made to any Participant.

                  7.3.2 Each Restricted Award of Restricted Stock shall be
      issued in an uncertificated form and registered in the name of the
      Participant. The stock transfer books of the Company's designated Stock
      Transfer Agent shall be noted with the following legend with reference to
      the shares made subject to such Restricted Award.

            "These shares are subject to the terms and restrictions of the
            National Commerce Financial Corporation 2003 Stock and Incentive
            Plan; such shares are subject to forfeiture or cancellation under
            the terms of said Plan; and such shares shall not be sold,
            transferred, assigned, pledged, encumbered, or otherwise alienated
            or hypothecated except pursuant to the provisions of said Plan, a
            copy of which Plan is available from National Commerce Financial
            Corporation upon request."

      Such Award shall be held in uncertificated form until the restrictions
      thereon shall have lapsed and all of the terms and conditions applicable
      thereto have been satisfied.

            7.4   RESTRICTION PERIOD. In accordance with Sections 7.1 and/or
7.2, Restricted Awards shall only become unrestricted and vest in the
Participant in accordance with such vesting schedule with respect to such
Restricted Award as the Committee may establish in the relevant Award Agreement
(the "Restriction Period"). Notwithstanding the immediately preceding sentence,
in no event shall the Restriction Period be less than one (1) year after the
date on which such Restricted Award is granted. During the Restriction Period
applicable to a Restricted Award, such Award shall be unvested and a Participant
may not sell, assign, transfer, pledge, encumber or otherwise dispose of or
hypothecate the Restricted Stock covered by such Award. Upon satisfaction of the
vesting schedule and any other applicable restrictions, terms and conditions,
the Participant shall be entitled to receive payment of the Restricted Award or
a portion thereof, as the case may be, as provided in Section 7.5.

            7.5   PAYMENT OF AWARDS. After the satisfaction and/or lapse of the
restrictions, terms and conditions set by the Committee in respect of a
Restricted Award of Restricted Stock, a certificate for the number of shares of
Common Stock issued which are no longer subject to such restrictions, terms and
conditions shall, as soon as practicable thereafter,

                                        7

<PAGE>

be delivered to the Participant. The remaining shares, if any, issued in respect
of such Restricted Stock shall either be forfeited and canceled, or shall
continue to be subject to the restrictions, terms and conditions set by the
Committee, as the case may be.

            7.6   SHAREHOLDER RIGHTS. A Participant shall have, with respect to
the shares of Restricted Stock received under a Restricted Award, all of the
rights of a shareholder of the Company, including, without limitation, the right
to vote the shares and to receive any cash dividends. Stock dividends issued
with respect to such Restricted Stock shall be treated as additional Awards of
Restricted Stock and shall be subject to the same restrictions and other terms
and conditions that apply to the shares of Restricted Stock with respect to
which such stock dividends are issued.

      8.    PERFORMANCE AWARDS.

            8.1   TERMS AND CONDITIONS. Performance Awards shall be subject to
the terms and conditions set forth in this Section 8 and any additional terms
and conditions, not inconsistent with the express provisions of this Plan, as
the Committee shall set forth in the relevant Award Agreement.

            8.2   PERFORMANCE AWARD GRANTS. A Performance Award is an Award of
Performance Units or Performance Shares granted to a Participant subject to such
terms and conditions as the Committee deems appropriate, including, without
limitation, the requirement that the Participant forfeit such Performance Award
(or a portion thereof) in the event certain performance criteria are not met
within a designated period of time.

            8.3   GRANTS. Subject to Section 5, Performance Awards may be
awarded alone or in addition to any other Awards. Subject to the terms of this
Plan, the Committee shall determine the number of Performance Shares or
Performance Units to be awarded to a Participant and the Committee may impose
different terms and conditions on any particular Performance Award awarded to
any Participant.

            8.4   PERFORMANCE GOALS AND PERFORMANCE PERIODS. Participants
receiving Performance Awards shall only earn into and be entitled to payment in
respect of such Performance Awards if the Company, a Subsidiary and/or a
division of the Company specified by the Committee (a "Division") and/or the
Participant satisfy certain performance goals (the "Performance Goals") during
and in respect of a designated performance period as determined by the Committee
(the "Performance Period"). Performance Goals and the Performance Period shall
be established by the Committee in its sole discretion. Performance Periods may
overlap each other from time to time. The Committee shall establish Performance
Goals for each Performance Period prior to, or as soon as practicable after, the
commencement of such Performance Period. The Committee shall also establish a
schedule or schedules for such Performance Awards setting forth the portion of
the Performance Award which will be earned or forfeited based on the degree of
achievement, or lack thereof, of the Performance Goals at the end of the
relevant Performance Period. In setting Performance Goals, the Committee may
use, but shall not be limited to, such measures as total shareholder return,
return on equity, return on assets, net earnings per share growth, comparisons
to peer companies, divisional goals, individual or aggregate Participant
performance or such other measure or measures of performance as the Committee,
in its sole discretion, may deem appropriate. Such performance

                                        8

<PAGE>

measures shall be defined as to their respective components and meanings by the
Committee in its sole discretion. During any Performance Period, the Committee
shall have the authority to adjust the Performance Goals in such manner as the
Committee, in its sole discretion, deems appropriate with respect to such
Performance Period, so long as such adjustment does not materially adversely
affect or otherwise disqualify the Company from the benefits provided by Section
162(m) of the Code, or any like or successor section thereto.

            8.5   PAYMENT OF PERFORMANCE AWARDS. With respect to each
Performance Award, the Participant shall, if the applicable Performance Goals
have been satisfied by the Company, a Subsidiary, a Division and/or the
Participant, as applicable, during the relevant Performance Period, be entitled
to receive payment in an amount equal to the designated value of the Performance
Award. Payment in settlement of earned Performance Awards shall be made as soon
as practical following the conclusion of the applicable Performance Period in
cash, in shares of unrestricted Common Stock or in Restricted Stock as the
Committee, in its sole discretion, shall determine and provide in the relevant
Award Agreement.

            8.6   RIGHTS ASSOCIATED WITH PERFORMANCE SHARES. During the
Performance Period, and unless the Award Agreement provides otherwise, (a)
Participants may not exercise voting rights associated with their Performance
Shares, and (b) all dividends and other distributions paid with respect to any
Performance Shares will be held by the Company as escrow agent during the
Performance Period. At the end of the Performance Period, these dividends will
be distributed to the Participant or forfeited if the applicable Performance
Goals are not met as provided in Section 8.5. No interest or other accretion
will be credited with respect to any dividends held in this escrow account. If
any dividends or other distributions are paid in shares of Common Stock, those
shares will be subject to the same restrictions on transferability and
forfeitability as the Performance Shares with respect to which they were issued.

      9.    OUTRIGHT STOCK AWARDS. The Committee, in its sole discretion, shall
have the power to make an Award of shares of Common Stock to any Participant,
including without limitation to any Non-Employee Director in payment of such
Non-Employee Director's retainer or meeting fees or as compensation for
attendance at board meetings. Each such Award shall be subject to such
conditions and restrictions, if any, as may be established by the Committee,
including but not limited to a requirement that the Non-Employee Director agree
to hold such shares of Common Stock for at least six months and/or to hold such
shares for investment and not with a view to resale to the public.

      10.   DEFERRAL ELECTIONS. The Committee may permit a Participant to elect
to defer receipt of any payment of cash or any delivery of shares of Common
Stock that would otherwise be due to such Participant by virtue of the exercise,
earn out or settlement of any Award made under the Plan. If any such election is
permitted, the Committee shall establish rules and procedures for such
deferrals, including, without limitation, the payment or crediting of reasonable
interest on such deferred amounts credited in cash or the crediting of dividend
equivalents in respect of deferred Awards credited in shares of Common Stock.

      11.   TERMINATION OF EMPLOYMENT.

            11.1  GENERAL. Subject to the terms and conditions of Section 14, if
                  and to the

                                        9

<PAGE>

extent an Award Agreement shall not specify when or if an Award may be
exercised, earned or settled after a Participant's termination of employment or
a Non-Employee Director ceases to be a director, the following terms and
conditions shall apply as appropriate and to the extent not inconsistent with
the terms and conditions, if any, of such Award Agreement:

                  11.1.1 Except as otherwise provided in this Section 11.1.1 or
      in an Award Agreement:

                  (a)   NON-VESTED STOCK OPTIONS. If a Participant's employment
      by the Company or any of its Subsidiaries is terminated for any reason
      (other than Disability, Retirement or death) while Stock Options granted
      to such Participant are non-vested, such Participant's rights, if any, to
      exercise any non-vested Stock Options, if any, shall immediately terminate
      and the Participant (and such Participant's estate, designated beneficiary
      or other legal representative) shall forfeit any rights or interest in or
      with respect to any such Stock Options. In the event of Disability,
      Retirement or death while a Participant's Stock Options are non-vested,
      such non-vested Stock Options shall become vested immediately.

                  (b)   VESTED STOCK OPTIONS; TERMINATION FOR REASONS OTHER THAN
      DEATH, DISABILITY OR RETIREMENT. Any vested Stock Option held by a
      Participant whose employment terminates other than by reason of death,
      Disability or Retirement, to the extent exercisable immediately prior to
      such termination of employment, will remain exercisable for a specified
      time period ending on the earlier of the end of the term of such Stock
      Options and a date that is thirty (30) days after such termination
      (subject to the applicable terms and provisions of this Plan (and any
      rules or procedures hereunder) and the relevant Award Agreement).

                  (c)   VESTED INCENTIVE STOCK OPTIONS; TERMINATION DUE TO
      DISABILITY. If a Participant's termination of employment is due to
      Disability, a Participant shall have the right, subject to the applicable
      terms and provisions of this Plan (and any rules or procedures hereunder)
      and the relevant Award Agreement, to exercise Incentive Stock Options
      vested as of the date of the termination, if any, and those vesting under
      the last sentence of Section 11.1.1(a) above, if any, at any time within
      the period ending on the earlier of the end of the term of such Incentive
      Stock Options and the first anniversary of the date of termination due to
      Disability.

                  (d)   VESTED INCENTIVE STOCK OPTIONS; TERMINATION DUE TO
      RETIREMENT. If a Participant's termination of employment is due to
      Retirement, a Participant shall have the right, subject to the applicable
      terms and provisions of this Plan (and any rules or procedures hereunder)
      and the relevant Award Agreement, to exercise Incentive Stock Options
      vested as of the date of the termination, if any, and those vesting under
      the last sentence of Section 11.1.1(a) above, if any, at any time within
      the period ending on the earlier of the end of the term of such Incentive
      Stock Options and the date that is three (3) months after such termination
      due to Retirement.

                  (e)   DEATH OF A PARTICIPANT. If any Participant dies while
      holding a vested Stock Option or a Stock Option that becomes vested
      pursuant to the last sentence of Section 11.1.1(a) above, such
      Participant's estate, designated beneficiary or other legal

                                       10

<PAGE>

      representative, as the case may be, shall have the right, subject to the
      applicable provisions of the Plan (and any rules or procedures hereunder)
      and the relevant Award Agreement, to exercise such Stock Options, if any,
      at any time within the period ending on the earlier of the end of the term
      of such Stock Options and the date that is one (1) year from the date of
      such Participant's death (but in no event more than one (1) year from the
      date of such Participant's termination of employment due to Disability or
      three (3) months from the date of such Participant's termination of
      employment due to Retirement in the case of an Incentive Stock Option, as
      applicable).

                  (f)   VESTED NON-QUALIFIED STOCK OPTIONS; TERMINATION DUE TO
      DISABILITY OR RETIREMENT. If a Participant's employment is terminated by
      reason of Disability or Retirement, the Participant shall have the right,
      subject to the applicable terms and provisions of this Plan (and any rules
      and procedures hereunder) and the relevant Award Agreement, to exercise
      Non-Qualified Stock Options vested as of the date of the termination, if
      any, and those vesting under the last sentence of Section 11.1.1(a) above,
      if any, at any time following the Participant's termination of employment
      and prior to the expiration date of such Non-Qualified Stock Options as
      fixed by the Committee and set forth in the Award Agreement related
      thereto.

                  (g)   NON-EMPLOYEE DIRECTORS. If a Non-Employee Director
      ceases to be a director for any reason (other than Disability, Retirement
      or death) while Non-Qualified Stock Options granted to such Non-Employee
      Director are non-vested, such Non-Employee Director's rights, if any, to
      exercise any non-vested Non-Qualified Stock Options, if any, shall
      immediately terminate and the Non-Employee Director (and such Non-Employee
      Director's estate, designated beneficiary or other legal representative)
      shall forfeit any rights or interest in or with respect to any such
      Non-Qualified Stock Options. In the event of the Disability, Retirement or
      death of a Non-Employee Director while the Non-Employee Director's
      Non-Qualified Stock Options are non-vested, such non-vested, Non-Qualified
      Stock Options shall become immediately vested. Vested Non-Qualified Stock
      Options, if any, of a Non-Employee Director who ceases to be a director
      other than by reason of death, Disability or Retirement, to the extent
      exercisable immediately prior to such cessation, will remain exercisable
      for a specified time period of thirty (30) days after such cessation
      (subject to the applicable terms and provisions of this Plan (and any
      rules or procedures hereunder) and the relevant Award Agreement). If the
      cessation of a Non-Employee Director's status as a director is due to
      Retirement or Disability, the Non-Employee Director shall have the right,
      subject to the applicable terms and provisions of this Plan (and any rules
      or procedures hereunder) and the relevant Award Agreement, to exercise any
      Non-Qualified Stock Options vested as of the date of the cessation, if
      any, and those non-vested Stock Options vesting in the discretion of the
      Committee as provided above, if any, at any time following such cessation
      due to Retirement or Disability and prior to the expiration date of such
      Non-Qualified Stock Options as fixed by the Committee and as set forth in
      the Award Agreement related thereto. If any Non-Employee Director dies
      while holding vested Non-Qualified Stock Options or non-vested
      Non-Qualified Stock Options vesting in the discretion of the Committee as
      provided above, such Non-Employee Director's estate, designated
      beneficiary or other legal representative, as the case may be, shall have
      the right, subject to the applicable provisions of this Plan (and any
      rules or procedures hereunder) and the relevant Award Agreement, to
      exercise such vested Non-Qualified Stock Options, if any,

                                       11

<PAGE>

      at any time within one (1) year from the date of such Non-Employee
      Director's death.

                  11.1.2 If a Participant's employment with the Company or any
      of its Subsidiaries is terminated for any reason (other than Disability,
      Retirement or death) prior to the satisfaction and/or lapse of the
      restrictions, terms and conditions applicable to Restricted Award(s), such
      Restricted Award or Awards shall be forfeited, unless the Committee in its
      discretion determines otherwise. In the event of a Participant's
      Disability, Retirement or death during the Restricted Period, shares of
      Restricted Stock shall become free of restrictions to the extent
      determined by the Committee.

                  11.1.3 If a Participant's employment with the Company or any
      of its Subsidiaries is terminated for any reason (other than Disability,
      Retirement or death) prior to the completion of any Performance Period,
      all of such Participant's Performance Awards earnable in relation to such
      Performance Period shall be forfeited. If a Participant's termination of
      employment is due to Disability, Retirement or death, the disposition of
      the Performance Awards of such Participant earnable in the Performance
      Period in which such termination occurs will be determined by the
      Committee in its discretion.

      12.   NON-TRANSFERABILITY OF AWARDS.

      (a)   Except as otherwise provided in Section 12(b), no Award under this
Plan or any Award Agreement, and no rights or interests therein, shall or may be
assigned, transferred, sold, exchanged, pledged, disposed of or otherwise
hypothecated or encumbered by a Participant or any beneficiary thereof, except
by testamentary disposition or the laws of descent and distribution. No such
right or interest shall be subject to seizure for the payment of the
Participant's (or any beneficiary's) debts, judgements, alimony, or separation
maintenance or be transferable by operation of law in the event of the
Participant's (or any beneficiary's) bankruptcy or insolvency. Except as
otherwise provided in Section 12(b), during the lifetime of a Participant, Stock
Options are exercisable only by the Participant.

      (b)   Non-Qualified Stock Options (whether such Stock Options were
Non-Qualified Stock Options when awarded or subsequent to the Award thereof
became Non-Qualified Stock Options pursuant to applicable law or any provision
of this Plan) held by a Participant may be assigned to a Family Member (as
defined below) of such Participant pursuant to a domestic relations order or in
the form of a bona fide gift at any time after the Award, but prior to the
expiration date, of such Non-Qualified Stock Options if as of the time of such
transfer a registration statement on Form S-8 (or any successor form) filed by
the Company under the Securities Act of 1933, as in effect and as amended from
time to time, or any successor statute thereto (the "Securities Act"), is in
effect with respect to this Plan (and the Awards granted and shares of Common
Stock issuable hereunder). Each such transferred Non-Qualified Stock Option
shall continue to be governed by the applicable terms and provisions of this
Plan (and any rules or procedures hereunder) and the applicable Award Agreement
with the transferor Participant, and the Family Member shall be entitled to the
same rights and subject to the same obligations, restrictions, limitations and
prohibitions under this Plan and such Award Agreement as the transferor
Participant, as if such assignment had not taken place; provided, however, that
no Non-Qualified Stock Option assigned to a Family Member may be assigned to any
other person by that Family Member.

                                       12

<PAGE>

            The term "Family Member" shall mean any child, stepchild,
      grandchild, parent, stepparent, grandparent, spouse, former spouse,
      sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
      daughter-in-law, brother-in-law, or sister-in-law, including adoptive
      relationships, any person sharing the Participant's household (other than
      a tenant or employee), a trust in which these persons have more than fifty
      percent of the beneficial interest, a foundation in which these persons
      (or the Participant) control the management of assets, and any other
      entity in which these persons (or the employee) own more than fifty
      percent of the voting interests.

      13.   CHANGES IN CAPITALIZATION AND OTHER MATTERS.

            13.1  NO CORPORATE ACTION RESTRICTION. The existence of this Plan,
Award Agreements and/or the Awards granted hereunder shall not limit, affect or
restrict in any way the right or power of the Board or the shareholders of the
Company to make or authorize (a) any adjustment, recapitalization,
reorganization or other change in the Company's or any Subsidiary's capital
structure or its business, (b) any merger, share exchange or change in the
ownership of the Company or any Subsidiary, (c) any issue of bonds, debentures,
capital, preferred or prior preference stocks ahead of or affecting the
Company's or any Subsidiary's capital stock or the rights thereof, (d) any
dissolution or liquidation of the Company or any Subsidiary, (e) any sale or
transfer of all or any part of the Company's or any Subsidiary's assets or
business, or (f) any other corporate act or proceeding by the Company or any
Subsidiary. No Participant, Family Member, beneficiary or any other person shall
have any claim against any member of the Board, the Committee, the Company or
any Subsidiary as a result of any such action.

            13.2  RECAPITALIZATION ADJUSTMENTS. In the event of any change in
capitalization affecting the Common Stock, including, without limitation, a
stock dividend or other distribution, stock split, reverse stock split,
recapitalization, merger, acquisition, subdivision, split-up, spin-off,
split-off, combination or exchange of shares or other form of reorganization, or
any other change affecting the Common Stock, the Board, in its sole discretion,
may authorize and make such proportionate adjustments, if any, as the Board may
deem appropriate to reflect such change, including, without limitation, with
respect to the aggregate number of shares of the Common Stock for which Awards
in respect thereof may be granted under this Plan, the maximum number of shares
of the Common Stock which may be sold or awarded to any Participant, any number
of shares of the Common Stock covered by each outstanding Award, and the
exercise price or other price per share of Common Stock in respect of
outstanding Awards.

      14.   CHANGE IN CONTROL.

            14.1  ACCELERATION OF AWARDS VESTING. Except as otherwise provided
in this Section 14, if a Change in Control of the Company occurs (a) all Stock
Options then unexercised and outstanding shall become fully exercisable as of
the date of the Change in Control, (b) all restrictions, terms and conditions
applicable to all Restricted Stock then outstanding shall be deemed lapsed and
satisfied as of the date of the Change in Control, and (c) the payment of
outstanding Performance Awards shall be accelerated to the date of the Change in
Control.

                                       13

<PAGE>

            14.2  TREATMENT OF AWARDS AFTER CHANGE IN CONTROL.

                  14.2.1 RESTRICTED STOCK. Within thirty (30) days after a
      Change in Control occurs, the holder of an Award of Restricted Stock shall
      receive a new certificate for such shares without the legend set forth in
      Section 7.3.2.

                  14.2.2 PERFORMANCE AWARDS. Within thirty (30) days after a
      Change in Control occurs, the holder of a Performance Award shall receive
      payment of the value of such Performance Award in cash or stock as
      provided in the applicable Award Agreement. For purposes of Section 14, if
      the acceleration causes a Performance Period of less than or equal to 18
      months, the value will be the grant amount, and if the acceleration causes
      a Performance Period of greater than 18 months, the value will be the
      greater of the grant amount or the calculated value of the Performance
      Award. For purposes of this paragraph, the Performance Period shall be
      measured from the beginning of the Performance Period under the Award
      Agreement until the most recent calendar quarter, prior to the date of the
      Change in Control.

                  14.2.3 STOCK OPTIONS. All Stock Options, both those vested as
      of the date of the Change of Control and those vesting under Section 14.1
      above, shall remain exercisable in accordance with the terms and
      provisions of this Plan (and any rules or procedures hereunder) and the
      relevant Award Agreement, except that, if a Participant's employment is
      terminated by the Company or any Subsidiary without Cause or the
      Participant terminates his or her employment with the Company or any
      Subsidiary for Good Reason within two (2) years from the date of the
      Change of Control, then the Participant's Non-Qualified Stock Options
      vested as of the date of the Change of Control or vesting pursuant to
      Section 14.1 shall, notwithstanding any other provision hereof, be
      exercisable at any time following the Participant's termination of
      employment and prior to the expiration date of such Non-Qualified Stock
      Options as set forth in the applicable Award Agreement(s).

            14.3  TERMINATION AS A RESULT OF A POTENTIAL CHANGE IN CONTROL. If,
as a result of a Potential Change of Control, a Participant's employment is
terminated either (a) by the Company or any Subsidiary without Cause, or (b) by
the Participant for Good Reason, then for purposes of this Section 14, a Change
in Control shall be deemed to have occurred immediately prior to such
Participant's termination of employment. In such event, all Awards made under
this Plan shall be treated as provided in Section 14.2.

            14.4  DEFINITIONS. For purposes of this Section 14, the following
words and phrases shall have the meaning specified:

                  14.4.1 "BENEFICIAL OWNER" shall have the meaning set forth in
      SEC Regulation Section 240.13d-3 or any successor regulation.

                  14.4.2 "CAUSE" shall mean, unless otherwise defined in an
      employee Participant's individual employment agreement with the Company or
      any Subsidiary (in which case such employment agreement definition shall
      govern), (a) the indictment of the Participant for any serious crime, (b)
      the willful and continued failure by the Participant

                                       14

<PAGE>

      to substantially perform the Participant's duties, as they may be defined
      from time to time, with the Participant's primary employer or to abide by
      the written policies of the Company or the Participant's primary employer
      (other than any such failure resulting from the Participant's incapacity
      due to physical or mental illness), or (c) the willful engaging by the
      Participant in conduct which is demonstrably and materially injurious to
      the Company or any Subsidiary, monetarily or otherwise. For purposes of
      the preceding sentence, no act shall be considered "willful" unless done,
      or omitted to be done, by the Participant not in good faith and without
      reasonable belief that such act, or failure to act, was in the best
      interests of the Company and its Subsidiaries.

                  14.4.3 A "CHANGE IN CONTROL" shall be deemed to have occurred
      if any one of the following conditions shall have been satisfied:

                  (a)   any Person becomes the Beneficial Owner, directly or
      indirectly, of securities of the Company (not including in the securities
      beneficially owned by any such Person any securities acquired directly
      from the Company) representing twenty-five percent (25%) or more of the
      combined voting power of the Company's then outstanding securities; or

                  (b)   during any period of twenty-four (24) consecutive
      months, individuals who at the beginning of such period constituted the
      Board and any new director (other than a director designated by a Person
      who has entered into an agreement with the Company to effect a transaction
      described in Sections 14.4.3(a), 14.4.3(c) or 14.4.3(d)) whose election or
      nomination for election to the Board was or is approved of by a vote of at
      least two-thirds of the directors at the beginning of such twenty-four
      (24) month period or whose election or nomination for election was
      previously so approved, cease for any reason to constitute a majority of
      the Board; or

                  (c)   the shareholders of the Company approve and the action
      is implemented to merge the Company with any other corporation, to effect
      a share exchange for the Company's outstanding securities, or to effect a
      complete liquidation of the Company, other than a merger, share exchange,
      or liquidation which would result in the voting securities of the Company
      outstanding immediately prior thereto continuing to represent (either by
      remaining outstanding or being converted into voting securities of the
      Surviving Entity), in combination with the ownership of any trustee or
      other fiduciary holding securities under any benefit plan of the Company
      or any Subsidiary, more than seventy-five percent (75%) of the combined
      voting power of the voting securities of the Company or such Surviving
      Entity outstanding immediately after such merger, share exchange or
      liquidation; or

                  (d)   the shareholders of the Company approve an agreement for
      the sale or disposition by the Company (other than to a Subsidiary) of all
      or substantially all of the Company's assets.

      Notwithstanding the foregoing, with respect to a particular Participant a
      Change in Control shall not include any event, circumstance or transaction
      which results from the action of any Person which is or includes, is
      affiliated with, or is wholly or partly controlled by one or more
      executive officers of the Company or any Subsidiary and in

                                       15

<PAGE>

      which entity or group the Participant participates.

                  14.4.4 "GOOD REASON" for termination by a Participant of the
      Participant's employment shall mean, for purposes of this Section 14,
      unless otherwise defined in the Participant's individual employment
      agreement with the Company or any Subsidiary (in which case such
      employment agreement definition shall govern), the occurrence (without the
      Participant's consent) of any one of the following:

                  (a)   the Company or any Subsidiary fails to continue or
      changes substantially any performance-based incentive plan in which the
      Participant was entitled to participate immediately prior to the Change in
      Control substantially in the forms then in effect. A reduction of more
      than ten percent (10%) in a Participant's incentive opportunity shall be
      deemed a substantial change.

                  (b)   the Participant is required to change the location of
      the Participant's job or office, so that it will be based at a location
      more than thirty-five (35) miles from the location of the Participant's
      job or office prior to the Change in Control; or

                  (c)   a reduction in the Participant's rate of annual base
      salary as in effect on the day prior to the occurrence of a Change in
      Control, where "annual base salary" is the Participant's regular basic
      annual compensation prior to any reduction therein under a salary
      reduction agreement pursuant to Section 401(k) or Section 125 of the Code,
      and, without limitation, shall not include, fees, retainers,
      reimbursements, bonuses, incentive awards, prizes or similar payments.

                  14.4.5 "PERSON" shall have the meaning given in Section
      3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and
      14(d) thereof; provided, however, a Person shall not include (a) the
      Company or any Subsidiary, (b) a trustee or other fiduciary holding
      securities under an employee benefit plan of the Company or a Subsidiary
      qualified under Section 401(a) of the Code, (c) an underwriter temporarily
      holding securities pursuant to an offering of such securities, or (d) a
      corporation owned, directly or indirectly, by the shareholders of the
      Company in substantially the same proportions as their ownership of
      securities of the Company.

                  14.4.6 "POTENTIAL CHANGE IN CONTROL" shall be deemed to have
      occurred if any one of the following conditions shall have been satisfied:

                  (a)   the Company enters into an agreement, the consummation
      of which would result in the occurrence of a Change in Control; or

                  (b)   the Company or any Person publicly announces an
      intention to take or to consider taking actions which, if consummated,
      would constitute a Change in Control; or

                  (c)   any Person becomes the Beneficial Owner, directly or
      indirectly, of securities of the Company representing ten percent (10%) or
      more of the combined voting power of the Company's then outstanding
      securities, or any Person increases such

                                       16

<PAGE>

      Person's beneficial ownership of such securities by five (5) percentage
      points or more over the percentage so owned by such Person on January 1,
      1994; or

                  (d)   the Board adopts a resolution to the effect that, for
      purposes of the Plan, a Potential Change in Control has occurred.

                  14.4.7 "SURVIVING ENTITY" shall mean only an entity in which
      all or substantially all of the Company's shareholders immediately before
      any merger, share exchange or liquidation become shareholders by the terms
      of such merger, share exchange or liquidation.

            14.5  ADVERSE TAX CONSEQUENCES. If the making of any payment or
payments pursuant to this Section 14 or otherwise would (a) subject the
Participant to an excise tax under Section 4999 of the Code, or any like or
successor section thereto, or (b) result in the Company's loss of a federal
income tax deduction for such payments under Section 280G of the Code, or any
like or successor section thereto (either or both, an "Adverse Tax
Consequence"), then, unless otherwise expressly provided in a relevant Award
Agreement or employment agreement, the payments attributable to this Plan that
are "parachute payments" within the meaning of such Section 280G of the Code
shall be reduced, as determined by the Committee in its sole discretion, but
after consultation with the Participant affected, to the extent necessary to
avoid any Adverse Tax Consequence. Any disputes regarding whether any payments
to a Participant would result in an Adverse Tax Consequence shall be resolved by
an opinion of a nationally recognized accounting firm acceptable to the Company
and the Participant.

      15.   AMENDMENT, SUSPENSION AND TERMINATION.

            15.1  IN GENERAL. The Board may suspend or terminate this Plan (or
any portion thereof) at any time and may amend this Plan at any time and from
time to time in such respects as the Board may deem advisable to ensure that any
and all Awards conform to or otherwise reflect any change in applicable laws or
regulations, or to permit the Company or the Participants to benefit from any
change in applicable laws or regulations, or in any other respect the Board may
deem to be in the best interests of the Company or any Subsidiary; provided,
however, that no such amendment shall, without majority (or such greater
percentage if required by law, charter, by-law or other regulation or rule)
shareholder approval to the extent required by law or the rules of any exchange
upon which the Common Stock is listed, (a) except as provided in Section 13,
increase the number of shares of Common Stock which may be issued under this
Plan, (b) materially modify the requirements as to eligibility for participation
in this Plan, (c) materially increase the benefits accruing to Participants
under this Plan, or (d) extend the termination date of this Plan. No such
amendment, suspension or termination shall (i) materially adversely affect the
rights of any Participant under any outstanding Award, without the consent of
such Participant, or (ii) make any change that would disqualify this Plan, or
any other plan of the Company or any Subsidiary intended to be so qualified,
from (A) the exemption provided by SEC Regulation Section 240.16b-3, or any
successor thereto, or (B) the benefits provided under Section 422 of the Code or
any successor thereto.

            15.2  AWARD AGREEMENTS. The Committee may amend or modify at any
time and from time to time any outstanding Award and Award Agreement, in any
manner to the extent that the Committee would have had the authority under this
Plan to initially determine the

                                       17

<PAGE>

restrictions, terms and provisions of such Award, including, without limitation,
to change the date or dates as of which Stock Options may be exercised. No such
amendment or modification shall, however, materially adversely affect the rights
of any Participant under any such Award and Award Agreement without the consent
of such Participant.

      16.   MISCELLANEOUS.

            16.1  TAX WITHHOLDING. The Company shall have the right to deduct
from any payment or settlement under this Plan, including, without limitation,
the exercise of any Stock Option, or the delivery or vesting of any shares of
Common Stock, Restricted Stock, any federal, state, local or other taxes of any
kind which the Committee, in its sole discretion, deems necessary to be withheld
to comply with the Code and/or any other applicable law, rule or regulation. If
the Committee, in its sole discretion, permits shares of Common Stock to be used
to satisfy any such tax withholding, such Common Stock shall be valued based on
the Fair Market Value of such stock as of the date the tax withholding is
required to be made, such date to be determined by the Committee. The Committee
may establish rules limiting the use of Common Stock to meet withholding
requirements by Participants who are subject to Section 16 of the Exchange Act.

            16.2  NO RIGHT TO EMPLOYMENT. Neither the adoption of this Plan, the
granting of any Award, nor the execution of any Award Agreement shall confer
upon any employee of the Company or any Subsidiary any right to continued
employment with the Company or any Subsidiary, as the case may be, nor shall it
interfere in any way with the right, if any, of the Company or any Subsidiary to
terminate the employment of any employee at any time for any reason.

            16.3  UNFUNDED PLAN. This Plan shall be unfunded and the Company
shall not be required to segregate any assets in connection with any Awards. Any
liability of the Company to any person with respect to any Award or any Award
Agreement shall be based solely upon the contractual obligations that may be
created as a result of this Plan or any such Award or Award Agreement. No such
obligation of the Company shall be deemed to be secured by any pledge of,
encumbrance on, or other interest in, any property or asset of the Company or
any Subsidiary. Nothing contained in this Plan or any Award Agreement shall be
construed as creating in respect of any Participant (or beneficiary thereof, any
Family Member or any other person) any equity or other interest of any kind in
any assets of the Company or any Subsidiary or creating a trust of any kind or a
fiduciary relationship of any kind between the Company, any Subsidiary and/or
any such Participant, any beneficiary, any Family Member or any other person.

            16.4  PAYMENTS TO A TRUST. The Committee is authorized to cause to
be established a trust agreement or several trust agreements or similar
arrangements from which the Committee may make payments of amounts due or to
become due to any Participants under this Plan.

            16.5  OTHER COMPANY BENEFIT AND COMPENSATION PROGRAMS. Payments and
other benefits received by a Participant under an Award shall not be deemed a
part of a Participant's compensation for purposes of the determination of
benefits under any other employee welfare or benefit plans or arrangements, if
any, provided by the Company or any

                                       18

<PAGE>

Subsidiary unless expressly provided in such other plans or arrangements, or
except where the Board expressly determines in writing that inclusion of an
Award or portion of an Award should be included to accurately reflect
competitive compensation practices or to recognize that an Award has been made
in lieu of a portion of competitive annual base salary or other cash
compensation. Awards may be made in addition to, in combination with, or as
alternatives to, grants, awards or payments under any other plans or
arrangements of the Company or its Subsidiaries. The existence of this Plan
notwithstanding, the Company or any Subsidiary may adopt such other compensation
plans or programs and additional compensation arrangements as it deems necessary
to attract, retain and motivate employees.

            16.6  LISTING, REGISTRATION AND OTHER LEGAL COMPLIANCE. No Award
shall be made and no shares of the Common Stock shall be issued under this Plan,
and no assignment of a Non-Qualified Stock Option to a Family Member shall be
made, unless legal counsel for the Company shall be satisfied that such issuance
or assignment will be in compliance with all applicable federal and state
securities laws and regulations and any other applicable laws or regulations.
The Committee may require, as a condition of any payment of any Award, share
issuance or assignment of Non-Qualified Stock Options, that certain agreements,
undertakings, representations, certificates, and/or information as the Committee
may deem necessary or advisable, be executed or provided to the Company to
assure compliance with all such applicable laws or regulations. Certificates for
shares of the Restricted Stock and/or Common Stock delivered under this Plan may
be subject to such stock transfer orders and such other restrictions as the
Committee may deem advisable under the rules, regulations, or other requirements
of the SEC, and the NYSE (or any other securities exchange the stock is
currently trading on) and any applicable federal or state securities law. The
Committee may cause a legend or legends to be put on any such share certificates
to make appropriate reference to such restrictions. In addition, if, at any time
specified herein (or in any Award Agreement) for (a) the making of any
determination, (b) the issuance or other distribution of Restricted Stock and/or
Common Stock, or (c) the payment of amounts to or through a Participant with
respect to any Award, any law, rule, regulation or other requirement of any
governmental authority or agency shall require either the Company, any
Subsidiary, any Participant (or any designated beneficiary or other legal
representative) or any Family Member to take any action in connection with any
such determination, any such shares to be issued or distributed, any such
payment, or the making of any such determination, as the case may be, shall be
deferred until such required action is taken. If at any time and from time to
time the Committee determines, in its sole discretion, that the listing,
registration or qualification of any Award, or any Common Stock or property
covered by or subject to such Award, upon the NYSE (or any other securities
exchange the stock is currently trading on) or under any foreign, federal, state
or local securities or other law, rule or regulation is necessary or desirable
as a condition to or in connection with the granting of such Award or the
issuance or delivery of Restricted Stock and/or Common Stock or other property
under such Award or otherwise, no such Award may be exercised or settled, or
paid in Restricted Stock, Common Stock or other property, unless such listing,
registration or qualification shall have been effected free of any conditions
that are not acceptable to the Committee.

            16.7  AWARD AGREEMENTS. Each Participant receiving an Award (except,
in the Committee's discretion, an Award of Common Stock pursuant to Section 9
hereof) shall enter into an Award Agreement with the Company in a form specified
by the Committee. Each such Participant shall agree to the restrictions, terms
and conditions of the Award set forth therein.

                                       19

<PAGE>

            16.8  DESIGNATION OF BENEFICIARY. Each Participant to whom an Award
has been made may designate a beneficiary or beneficiaries to receive any
payment which under the terms of this Plan and the relevant Award Agreement may
become payable on or after the Participant's death. At any time, and from time
to time, any such designation may be changed or canceled by the Participant
without the consent of any such beneficiary. Any such designation, change or
cancellation must be on a form provided for that purpose by the Committee and
shall not be effective until received by the Committee. If no beneficiary has
been named by a deceased Participant, or if the designated beneficiaries have
predeceased the Participant, the beneficiary shall be the Participant's estate.
If the Participant designates more than one beneficiary, any payments under this
Plan to such beneficiaries shall be made in equal shares unless the Participant
has expressly designated otherwise, in which case the payments shall be made in
the shares designated by the Participant.

            16.9  LEAVES OF ABSENCE/TRANSFERS. The Committee shall have the
power to promulgate rules, policies and regulations and to make determinations,
as it deems appropriate, under this Plan in respect of any leave of absence from
the Company or any Subsidiary granted to a Participant. Without limiting the
generality of the foregoing, the Committee may determine whether any such leave
of absence shall be treated as if the Participant has terminated employment with
the Company or any such Subsidiary. If a Participant transfers within the
Company, or to or from any Subsidiary, such Participant shall not be deemed to
have terminated employment as a result of such transfers.

            16.10 GOVERNING LAW. This Plan and all actions taken thereunder
shall be governed by and construed in accordance with the laws of the State of
Tennessee, without regard to principles of conflict of laws. Any titles and
headings herein are for reference purposes only, and shall in no way limit,
define or otherwise affect the meaning, construction or interpretation of any
provisions of this Plan.

            16.11 EFFECTIVE DATE. This Plan shall become effective upon its
approval by a majority of the Company's shareholders at the Company's 2003
Annual Meeting of Shareholders.

                                       20

<PAGE>

                                                                       Exhibit A

                             AMENDMENT NO. 1 TO THE
                     NATIONAL COMMERCE FINANCIAL CORPORATION
                          2003 STOCK AND INCENTIVE PLAN

The Share NCF Program as defined in Paragraph 6.8 is terminated effective July
20, 2004. No new Stock Options will be granted under the Share NCF Program after
this date. The Company will fulfill all obligations as defined by the Plan and
Stock Options Agreement for Stock Options granted under the Share NCF Program
prior to its termination.

Approved by Board of Directors on July 20, 2004.

<PAGE>

                                  RESOLUTION BY
             THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF
                     NATIONAL COMMERCE FINANCIAL CORPORATION

      The undersigned, being all of the members of the Compensation Committee of
the Board of Directors of National Commerce Financial Corporation (the
"Corporation") do hereby consent to and do hereby take the following actions and
adopt the following resolutions:

      WHEREAS the National Commerce Financial Corporation 2003 Incentive and
Stock Plan provides for awards of Restricted Stock under Section 7,

      WHEREAS Paragraph 7.3.2 of the National Commerce Financial Corporation
2003 Incentive and Stock Plan calls for Restricted Stock Awards to be issued in
uncertificated form with legend of the restrictions,

      WHEREAS the Corporation's practice under prior equity compensation plans
has been to issue Restricted Stock Awards in certificate form without legend,
with certificates held by the Corporation for safekeeping until such time as all
restrictions lapse,

      BE IT RESOLVED, that the Compensation Committee hereby approves
continuation of the practice of issuing Restricted Stock Awards in certificate
form without legend, with certificates to be held by the Corporation for
safekeeping until such time as all restrictions lapse.

      BE IT FURTHER RESOLVED, that John Mistretta is hereby given the authority
to do all things reasonably necessary to carry out the intent of the foregoing
resolution.

Approved by Compensation Committee of Board on 4/26/2004

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