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                                                                    EXHIBIT 10.4

                       ALLEGHENY TECHNOLOGIES INCORPORATED

                         KEY EXECUTIVE PERFORMANCE PLAN

                         EFFECTIVE AS OF JANUARY 1, 2004

ARTICLE I. ADOPTION AND PURPOSE OF THE KEY EXECUTIVE PERFORMANCE PLAN

            1.01 ADOPTION. This Key Executive Performance Plan is adopted by the
      Personnel and Compensation Committee of the Board of Directors as a part
      of the Allegheny Technologies Incorporated executive compensation program
      effective January 1, 2004. The KEPP Payments, if any, earned under this
      Plan are intended as performance based compensation within the meaning of
      Section 162(m) of the Internal Revenue Code of 1986, as amended, as
      incentive compensation determined solely with reference to attainment in
      predetermined levels of Earnings and Operational Goals within the relevant
      Performance Period.

            1.02 PURPOSE. The purposes of the KEPP are (i) to direct the focus
      of key management employees to the achievement of goals deemed necessary
      for the success of the Corporation, (ii) to assist the Corporation in
      retaining and motivating selected key management employees of the
      Corporation and its subsidiaries who will contribute to the success of the
      Corporation and (iii) to reward key management employees for the overall
      success of the Corporation as determined with reference to predetermined
      levels of Earnings of the Corporation and attainment of Operational Goals.
      The KEPP is intended to act as an incentive to participating key
      management employees to achieve long-term objectives that will inure to
      the benefit of all stockholders of the Corporation measured in terms of
      achievement of predetermined levels of Earnings of the Corporation and
      attainment of Operational Goals.

            1.03 PLAN DOCUMENT. This KEPP plan document is intended as the plan
      document as adopted by the Committee, which will govern all Performance
      Periods of the KEPP beginning in or after 2004.

ARTICLE II. DEFINITIONS

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

            2.01 AWARD means an opportunity to earn a KEPP Payment in a
      particular Performance Period. Each Award shall be denominated in dollars
      that can be earned upon attainment of predetermined Earnings thresholds
      (Level 1) and the maximum amount that may be paid with respect to
      Operational Goals before the application of Negative Discretion (Level 2).
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            2.02 AWARD AGREEMENT means a written agreement between the
      Corporation and a Participant or a written acknowledgment from the
      Corporation specifically setting forth the terms and conditions of a KEPP
      Award granted to a Participant pursuant to Article VI of this Plan.

            2.03 BOARD means the Board of Directors of the Corporation.

            2.04 EARNINGS means the earnings of the Corporation determined in
      accordance with generally accepted accounting principles.

            2.05 CAUSE means a determination by the Committee that a Participant
      has engaged in conduct that is dishonest or illegal, involves moral
      turpitude or jeopardizes the Corporation's right to operate its business
      in the manner in which it is now operated.

            2.06 CHANGE IN CONTROL means any of the events set forth below:

                  (a) The acquisition in one or more transactions, other than
      from the Corporation, by any individual, entity or group (within the
      meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) of beneficial
      ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
      Act) of a number of Corporation Voting Securities in excess of 25% of the
      Corporation Voting Securities unless such acquisition has been approved by
      the Board; or

                  (b) Any election has occurred of persons to the Board that
      causes two-thirds of the Board to consist of persons other than (i)
      persons who were members of the Board on January 1, 2001 and (ii) persons
      who were nominated for election as members of the Board at a time when
      two-thirds of the Board consisted of persons who were members of the Board
      on January 1, 2001; provided, however, that any person nominated for
      election by the Board at a time when at least two-thirds of the members of
      the Board were persons described in clauses (i) and/or (ii) or by persons
      who were themselves nominated by such Board shall, for this purpose, be
      deemed to have been nominated by a Board composed of persons described in
      clause (i); or

                  (c) Approval by the stockholders of the Corporation of a
      reorganization, merger or consolidation, unless, following such
      reorganization, merger or consolidation, all or substantially all of the
      individuals and entities who were the respective beneficial owners of the
      Outstanding Stock and Corporation Voting Securities immediately prior to
      such reorganization, merger or consolidation, following such
      reorganization, merger or consolidation beneficially own, directly or
      indirectly, more than 60% of, respectively, the then 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 or
      trustees, as the case may be, of the entity resulting from such
      reorganization, merger or consolidation in substantially the same
      proportion as their ownership of the Outstanding Stock and Corporation
      Voting Securities immediately prior to such reorganization, merger or
      consolidation, as the case may be; or
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                  (d) Approval by the stockholders of the Corporation of (i) a
      complete liquidation or dissolution of the Corporation or (ii) a sale or
      other disposition of all or substantially all the assets of the
      Corporation.

            2.07 COMMITTEE means the Personnel and Compensation Committee of the
      Board.

            2.08 CORPORATION means Allegheny Technologies Incorporated, a
      Delaware corporation, and its successors.

            2.09 CORPORATION VOTING SECURITIES means the combined voting power
      of all outstanding voting securities of the Corporation entitled to vote
      generally in the election of the Board.

            2.10 DATE OF AWARD means the date as of which an Award is granted in
      accordance with Article VI of this Plan.

            2.11 DISABILITY means any physical or mental injury or disease of a
      permanent nature which renders a Participant incapable of meeting the
      requirements of the employment performed by such Participant immediately
      prior to the commencement of such disability. The determination of whether
      a Participant is disabled shall be made by the Committee in its sole and
      absolute discretion. Notwithstanding the foregoing, if a Participant's
      employment by the Corporation or an applicable subsidiary terminates by
      reason of a disability, as defined in an Employment Agreement between such
      Participant and the Corporation or an applicable subsidiary, such
      Participant shall be deemed to be disabled for purposes of the KEPP.

            2.12 EFFECTIVE DATE means January 1, 2004.

            2.13 EXCHANGE ACT means the Securities Exchange Act of 1934, as
      amended.

            2.14 KEPP PAYMENT means the amount actually earned by a Participant
      in a particular Performance Period. Each KEPP Payment shall be the sum of
      the amounts earned by a Participant during a Performance Period as Level I
      and Level 2 achievement.

            2.15 LEVEL 1 means that portion of an Award that may be earned based
      on attainment of Earnings.

            2.16 LEVEL 2 means that portion of an Award that may be earned,
      after application of Negative Discretion by the Committee, based on
      attainment of Operational Goals. The Level 2 portion of any Award shall be
      denominated in the maximum amount that may be earned with respect to
      Operational Goals prior to the application of Negative Discretion.
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            2.17 NEGATIVE DISCRETION means the power of the Committee to be
      exercised solely in the Committee's discretion to reduce the Level 2
      portion of any Award. It is anticipated that the Committee will review
      with the Chief Executive Officer of the Corporation the relative
      attainment of Operational Goals during a particular Performance Period
      before the Committee exercises its Negative Discretion.

            2.18 OPERATIONAL GOALS means the goals set by the Committee at the
      commencement of a Performance Period to be attained by the Participants
      during the course of a particular Performance Period. Operational Goals
      will be set forth in terms of operating objectives and/or criteria, which
      may or may not be earnings measures that, in the judgment of the Committee
      after consultation with the Chief Executive Officer of the Corporation,
      will enhance the success of the Corporation during and beyond a particular
      Performance Period.

            2.19 PARTICIPANT means any key management employee selected by the
      Committee, pursuant to Section 5.01 of this Plan, as eligible to
      participate under the KEPP for any one or more Performance Period.

            2.20 PERFORMANCE PERIOD means a period of more than one fiscal year
      of the Corporation over which the attainment of Earnings and Operational
      Goals shall be measured.

            2.21 PLAN or KEPP means the Key Executive Performance Plan as set
      forth in this plan document or as the same may be amended from time to
      time.

            2.22 RETIREMENT means, with the consent of the Corporation, a
      termination of employment with the Corporation and each subsidiary of the
      Corporation at or after (i) attaining age 55 and (ii) completing five
      years of employment with the Corporation and/or any subsidiary of the
      Corporation.

            2.23 WITHHOLDING OBLIGATIONS means the amount of federal, state and
      local income and payroll taxes the Corporation determines in good faith
      must be withheld with respect to a KEPP Payment. Withholding Obligations
      may be settled by the Participant, as permitted by the Committee in its
      discretion, in cash, previously owned shares of common stock of the
      Corporation or any combination of the foregoing.

ARTICLE III. ADMINISTRATION

            In addition to any power reserved to the Committee under the
      governing documents of the Corporation, the KEPP shall be administered by
      the Committee, which shall have exclusive and final authority and
      discretion in each determination, interpretation or other action affecting
      the KEPP and its Participants. The Committee shall have the sole and
      absolute authority and discretion to interpret the KEPP, to amend or
      modify this Plan for the KEPP, to select, in accordance with Section 5.01
      of this Plan, the persons who will be Participants hereunder, to set all
      Earnings thresholds and
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      Operational Goals, to determine all performance criteria, levels of Awards
      and KEPP Payments payable, to determine, after review of the Corporation's
      financial reports, the degree to which any threshold of Earnings has been
      achieved for a Performance Period with respect to the Level 1 portion of
      any Award, to review the attainment of Operational Goals and exercise
      Negative Discretion with respect to the Level 2 portion of any Award, to
      impose such conditions and restrictions as it determines appropriate and
      to take such other actions and make such other determinations in
      connection with the KEPP as it may deem necessary or advisable.

ARTICLE IV. OVERVIEW OF KEPP

            4.01 CASH BONUS PLAN. KEPP is designed to pay cash bonuses to
      participating key executives after the end of a Performance Period based
      on the level (i) of achievement of predetermined Earnings thresholds and
      (ii) attainment of Operational Goals (to which the Committee may exercise
      Negative Discretion).

            4.02 LEVELS OF AWARDS. KEPP Awards are granted with two levels. The
      first level, Level 1, is a cash bonus payment based on achievement of
      Earnings that the Committee has no discretion to reduce. KEPP Payments
      earned under Level 1 will be earned solely with reference to Earnings
      attained during the Performance Period. The second level, Level 2 is a
      cash bonus payment based on level of attainment of Operational Goals that
      the Committee has the Negative Discretion to reduce. The Committee's
      judgment in exercising its Negative Discretion to arrive at a KEPP Payment
      under Level 2 is expected to be guided by the degree to which the
      Corporation generally or the participating key executives in particular
      have attained predetermined Operational Goals. The Committee is expected
      to review the level of attainment of Operational Goals with the Chief
      Executive Officer of the Corporation before exercising any Negative
      Discretion.

            4.03 PARTICIPATING KEY EXECUTIVES. It is intended that the number of
      participating key executives shall be limited to those key executives with
      the most direct influence on the attainment of Earnings and operational
      goals.

ARTICLE V. PARTICIPATION

            5.01 DESIGNATION OF PARTICIPANTS. Participants in the KEPP shall be
      such key management employees of the Corporation or of its subsidiaries as
      the Committee, in its sole discretion, may designate as eligible to
      participate in the KEPP for any one or more Performance Periods. No later
      than 90 days after the commencement of each Performance Period during the
      term of the KEPP, the Committee shall designate the Participants who are
      eligible to participate in the KEPP during such Performance Period. The
      Committee's designation of a Participant with respect to any Performance
      Period shall not require the Committee to designate such person as a
      Participant with respect to any other Performance Period. The Committee
      shall consider such factors as it deems
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      pertinent in selecting Participants. The Committee shall promptly provide
      to each person selected as a Participant written notice of such selection.

ARTICLE VI. GRANTS UNDER THE KEPP

            6.01 ANNUAL DETERMINATION REGARDING PERFORMANCE PERIOD. No later
      than the 60th day of each calendar year, the Committee shall determine
      whether to establish a Performance Period, provided, however, for a
      Performance Period established in calendar year 2004, the Committee may
      make a determination under this Section 6.01 at any time prior to the 90th
      day of calendar year 2004.

            6.02 DETERMINATION OF GRANTS, AWARDS (BOTH LEVEL 1 AND LEVEL 2) AND
      PERFORMANCE CRITERIA. For each Performance Period, the Committee shall
      take the following actions no later than the 90th day of the first
      calendar year of that Performance Period:

                  (a) Identify Participants for that Performance Period.

                  (b) Establish the level of Level 1 and Level 2 opportunities
            for each Participant.

                  (c) Set the Earnings target(s).

                  (d) Set the Operational Goals and relative weightings after
            discussing such goals and weighting with the Chief Executive Officer
            in order to bring the Operational Goals as closely as possible in
            line with the Corporation's business plans.

            6.03 TERMINATION OF EMPLOYMENT. If a Participant terminates
      employment with the Corporation and each subsidiary of the Corporation
      during a then uncompleted Performance Period for reasons other than death,
      Disability or Retirement, any KEPP Award for any then uncompleted
      Performance Period shall be forfeited automatically. If a Participant
      terminates employment with the Corporation and each subsidiary of the
      Corporation for reasons of death, Disability or Retirement during a then
      uncompleted Performance Period, the Participant shall be entitled to
      receive a pro rata KEPP Payment for each then uncompleted Performance
      Period determined:

                  (a) when the KEPP Payments for all other Participants in such
            Performance Period(s) are determined; and

                  (b) based on the actual level of achievement of Earnings for
            that Performance Period and the attainment of Operational Goals,
            after the application of Negative Discretion.
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ARTICLE VII. DETERMINATION OF ACHIEVEMENT OF EARNINGS AND OPERATIONAL GOALS

            7.01 DETERMINATION OF EARNINGS AND OPERATIONAL GOALS. As promptly as
      administratively feasible but in no event later than the March 1st of the
      calendar year following last calendar year of each Performance Period, the
      Committee shall determine Earnings of the Corporation and the attainment
      of Operational Goals and the degree, if any, to which the Committee will
      exercise Negative Discretion.

            7.02 DETERMINATION OF KEPP PAYMENTS. KEPP Payments for a particular
      Performance Period for a particular Participant shall be the result of
      adding (i) the amount earned by a particular Participant under Level 1
      based on the Corporation's actual Earnings during the Performance Period
      and (ii) the amount earned by a particular Participant under Level 2 based
      on attainment of Operational Goals and after the application, if any, by
      the Committee of Negative Discretion.

ARTICLE VIII. MISCELLANEOUS

            8.01 CHANGE IN CONTROL. In the event of a Change in Control, KEPP
      Payments shall be determined for all then uncompleted Performance Periods
      as of the date of the Change in Control at the highest level Earnings for
      each such uncompleted Performance Period and KEPP Payments shall be
      delivered to the Participant as soon after the Change in Control as is
      administratively feasible.

            8.02 NON-UNIFORM DETERMINATIONS. The actions and determinations of
      the Committee need not be uniform and may be taken or made by the
      Committee selectively among employees or Participants, whether or not
      similarly situated.

            8.03 AMENDMENT AND TERMINATION OF THE PLAN. The Committee shall have
      complete power and authority to amend or terminate this Plan at any time
      it is deemed necessary or appropriate. No termination or amendment of the
      Plan may, without the consent of the Participant to whom any award shall
      theretofore have been granted under the KEPP, adversely affect the right
      of such individual under such award; provided, however, that the Committee
      may, in its sole discretion, make such provision in the Award Agreement
      for amendments which, in its sole discretion, it deems appropriate.<PAGE>
                                                                    EXHIBIT 10.6

                         TEXAS UNITED BANCSHARES, INC.

                           2004 STOCK INCENTIVE PLAN

                                   1. PURPOSE

     The purpose of the TEXAS UNITED BANCSHARES, INC. 2004 STOCK INCENTIVE PLAN
(the "Plan") is to provide a means through which Texas United Bancshares, Inc.,
a Texas corporation (the "Company"), and its subsidiaries, may attract able
persons to the Company and to provide a means whereby those employees and
Directors, upon whom the responsibilities of the successful administration and
management of the Company rest, and whose present and potential contributions to
the welfare of the Company are of importance, can acquire and maintain stock
ownership, thereby strengthening their concern for the welfare of the Company
and their desire to remain in its employ or service. A further purpose of the
Plan is to provide such employees and Directors with additional incentive and
reward opportunities designed to enhance the profitable growth of the Company.
Accordingly, the Plan provides for granting Incentive Stock Options,
Nonqualified Stock Options, Restricted Stock Awards or any combination of the
foregoing, as is best suited to the circumstances of the particular Holder as
provided herein.

                                 2. DEFINITIONS

     The following definitions shall be applicable throughout the Plan unless
specifically modified by any paragraph:

          (a) "Affiliates" means any "parent corporation" of the Company and any
     "subsidiary corporation" of the Company within the meaning of Code Sections
     424(e) and (f), respectively.

          (b) "Award" means, individually or collectively, any Option or
     Restricted Stock Award.

          (c) "Board" means the Board of Directors of the Company.

          (d) "Change of Control" means the occurrence of any of the following
     events: (i) the Company shall not be the surviving entity in any merger,
     consolidation or other reorganization (or survives only as a subsidiary of
     an entity other than a previously wholly-owned subsidiary of the Company);
     (ii) the Company's subsidiary bank is merged or consolidated into, or
     otherwise acquired by, an entity other than a wholly-owned subsidiary of
     the Company; (iii) the Company sells, leases or exchanges all or
     substantially all of its assets to any other person or entity (other than a
     wholly-owned subsidiary of the Company); (iv) the Company is to be
     dissolved and liquidated; (v) any person or entity, including a "group" as
     contemplated by Section 13(d)(3) of the 1934 Act, acquires or gains
     ownership or control (including, without limitation, power to vote or
     control the voting) of more than 50% of the outstanding shares of the
     Company's voting stock (based upon voting power) or (vi) as a result of or
     in connection with a contested election of directors, the persons who were
     directors of the Company before such election shall cease to constitute a
     majority of the Board.

          (e) "Change of Control Value" shall mean (i) the per share price
     offered to shareholders of the Company in any such merger, consolidation,
     reorganization, sale of assets or dissolution transaction; (ii) the price
     per share offered to shareholders of the Company in any tender offer or
     exchange offer whereby a Change of Control takes place or (iii) if such
     Change of Control occurs other than pursuant to a tender or exchange offer,
     the Fair Market Value per share of the shares into which Awards are
     exercisable, as determined by the Committee, whichever is applicable. In
     the event that the consideration offered to shareholders of the Company
     consists of anything other than cash, the Committee shall determine the
     fair cash equivalent of the portion of the consideration offered which is
     other than cash.

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          (f) "Code" means the Internal Revenue Code of 1986, as amended.
     Reference in the Plan to any section of the Code shall be deemed to include
     any amendments or successor provisions to any section and any regulations
     under such section.

          (g) "Committee" means the Compensation Committee of the Board which
     shall be (i) constituted so as to permit the Plan to comply with Rule 16b-3
     promulgated by the Securities and Exchange Commission ("Rule 16b-3") under
     the 1934 Act and (ii) constituted solely of "outside directors" within the
     meaning of Code Section 162(m) and applicable interpretive authority
     thereunder.

          (h) "Company" means Texas United Bancshares, Inc. and any of its
     Affiliates.

          (i) "Director" means an individual elected to the Board by the
     shareholders of the Company or by the Board under applicable corporate law
     who is serving on the Board on the date the Plan is adopted by the Board or
     is elected to the Board after such date.

          (j) An "employee" means any person (excluding a Non-Employee
     Director), including an officer, in an employment relationship with the
     Company or any parent or subsidiary corporation (as defined in section 424
     of the Code).

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

          (l) "Fair Market Value" means, as of any specified date, the mean of
     the high and low sales prices of the Stock (i) reported by the any
     interdealer quotation system on which the Stock is quoted on that date or
     (ii) if the Stock is listed on a national stock exchange, reported on the
     stock exchange composite tape on that date; or, in either case, if no
     prices are reported on that date, on the last preceding date on which such
     prices of the Stock are so reported. If the Stock is traded over the
     counter at the time a determination of its fair market value is required to
     be made hereunder, its fair market value shall be deemed to be equal to the
     average between the reported high and low or closing bid and asked prices
     of Stock on the most recent date on which Stock was publicly traded. In the
     event Stock is not publicly traded at the time a determination of its value
     is required to be made hereunder, the determination of its fair market
     value shall be made by the Committee in such manner as it deems
     appropriate.

          (m) "Holder" means an employee or Director who has been granted an
     Award.

          (n) "Incentive Stock Option" means an option that is designated as an
     incentive stock option within the meaning of section 422(b) of the Code.

          (o) "Non-Employee Director" means an individual who is a Director of
     the Company and who is not an employee of the Company or any Affiliate.

          (p) "Nonqualified Stock Option" means an option granted under
     Paragraph 7 of the Plan, to purchase Stock which does not constitute an
     Incentive Stock Option.

          (q) "Option" means an Award granted under Paragraph 7 of the Plan and
     includes Incentive Stock Options to purchase Stock and Nonqualified Stock
     Options to purchase Stock.

          (r) "Option Agreement" means a written agreement between the Company
     and a Holder with respect to an Option.

          (s) "Plan" means the Texas United Bancshares, Inc. 2004 Stock
     Incentive Plan, as amended from time to time.

          (t) "Restricted Stock Agreement" means a written agreement between the
     Company and a Holder with respect to a Restricted Stock Award.

          (u) "Restricted Stock Award" means an Award granted under Paragraph 8
     of the Plan.

          (v) "Stock" means the common stock, $1.00 par value per share, of the
     Company.

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                   3. EFFECTIVE DATE AND DURATION OF THE PLAN

     The Plan shall be effective upon the date of its adoption by the Board,
provided that the Plan is approved by the shareholders of the Company within
twelve months thereafter. No further Awards may be granted under the Plan after
the expiration of ten years from the date of its adoption by the Board. The Plan
shall remain in effect until all Awards granted under the Plan have been
satisfied or expired.

                               4. ADMINISTRATION

     (a) Committee.  The Plan shall be administered by the Committee.

     (b) Powers.  Subject to the provisions of the Plan, the Committee shall
have sole authority, in its discretion, to determine which employees or
Directors shall receive an Award, the time or times when such Award shall be
made, whether an Incentive Stock Option, Nonqualified Stock Option or Restricted
Stock Award shall be granted and the number of shares of Stock which may be
issued under each Option or Restricted Stock Award; subject to approval by a
majority of the outside Directors (as determined under Section 162(m) of the
Code) of the Board of Directors. In making such determinations, the Committee
may take into account the nature of the services rendered by the respective
employees or Directors, their present and potential contributions to the
Company's success and such other factors as the Committee in its discretion
shall deem relevant.

     (c) Additional Powers.  The Committee shall have such additional powers as
are delegated to it by the other provisions of the Plan. Subject to the express
provisions of the Plan, the Committee is authorized to construe the Plan and the
respective agreements executed thereunder, to prescribe such rules and
regulations relating to the Plan as it may deem advisable to carry out the Plan,
and to determine the terms, restrictions and provisions of each Award, including
such terms, restrictions and provisions as shall be requisite in the judgment of
the Committee to cause designated Options to qualify as Incentive Stock Options,
and to make all other determinations necessary or advisable for administering
the Plan. The Committee may correct any defect or supply any omission or
reconcile any inconsistency in any agreement relating to an Award in the manner
and to the extent it shall deem expedient to carry it into effect. The
determinations of the Committee on the matters referred to in this Article 4
shall be conclusive.

                5. GRANT OF OPTIONS AND RESTRICTED STOCK AWARDS;
                           SHARES SUBJECT TO THE PLAN

     (a) Stock Grant and Award Limits.  The Committee may from time to time
grant Awards to one or more employees or Directors determined by it to be
eligible for participation in the Plan in accordance with the provisions of
Paragraph 6. Subject to Paragraph 9, the aggregate number of shares of Stock
that may be issued under the Plan shall not exceed 250,000 shares. Shares of
Stock shall be deemed to have been issued under the Plan only to the extent
actually issued and delivered pursuant to an Award. To the extent that an Award
lapses or the rights of its Holder terminate or the Award is paid in cash, any
shares of Stock subject to such Award shall again be available for the grant of
an Award. Separate stock certificates shall be issued by the Company for those
shares acquired pursuant the exercise of an Incentive Stock Option and for those
shares acquired pursuant to the exercise of a Nonqualified Stock Option.

     (b) Stock Offered.  The stock to be offered pursuant to the grant of an
Award may be authorized but unissued Stock or Stock previously issued and
outstanding and reacquired by the Company.

                                 6. ELIGIBILITY

     Awards may be granted only to persons who, at the time of grant, are
employees or Directors. An Award may be granted on more than one occasion to the
same person, and, subject to the limitations set forth in the Plan, such Award
may include an Incentive Stock Option or a Nonqualified Stock Option, a
Restricted Stock Award or any combination thereof.

                                       3
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                                7. STOCK OPTIONS

     (a) Option Period.  The term of each Option shall be as specified by the
Committee at the date of grant, provided that the term of an Incentive Stock
Option cannot exceed ten years from the date of grant.

     (b) Limitations on Exercise of Option.  An Option shall be exercisable in
whole or in such installments and at such times as determined by the Committee.

     (c) Special Limitations on Incentive Stock Options.  No more than 250,000
shares of Stock may be subject to Incentive Stock Options. Incentive Stock
Options may be granted only to employees. To the extent that the aggregate Fair
Market Value (determined at the time the respective Incentive Stock Option is
granted) of Stock with respect to which Incentive Stock Options are exercisable
for the first time by an individual during any calendar year under all incentive
stock option plans of the Company and its parent and subsidiary corporations
exceeds $100,000, such Incentive Stock Options shall be treated as Nonqualified
Stock Options. The Committee shall determine, in accordance with applicable
provisions of the Code, Treasury Regulations and other administrative
pronouncements, which of an optionee's Incentive Stock Options will not
constitute Incentive Stock Options because of such limitation and shall notify
the Holder of such options of such determination as soon as practicable after
such determination. No Incentive Stock Option shall be granted to an individual
if, at the time the Option is granted, such individual owns stock possessing
more than 10% of the total combined voting power of all classes of stock of the
Company or of its parent or subsidiary corporation, within the meaning of
section 422(b)(6) of the Code, unless (i) at the time such Option is granted the
option price is at least 110% of the Fair Market Value of the Stock subject to
the Option and (ii) such Option by its terms is not exercisable after the
expiration of five years from the date of grant.

     (d) Option Agreement.  Each Option shall be evidenced by an Option
Agreement in such form and containing such provisions not inconsistent with the
provisions of the Plan as the Committee from time to time shall approve,
including, without limitation, provisions to qualify an Incentive Stock Option
under section 422 of the Code. No individual may be granted in any calendar year
Options to purchase more than           shares of Stock. An Option Agreement may
provide for the payment of the option price, in whole or in part, by the
delivery of a number of shares of Stock (plus cash if necessary) having a Fair
Market Value equal to such option price. Each Option Agreement shall specify the
effect of termination of employment or the cessation of serving on the Board on
the exercisability of the Option. Moreover, an Option Agreement may provide for
a "cashless exercise" of the Option by establishing specific procedures related
to such cashless exercise. Such Option Agreement may also include, without
limitation, provisions relating to (i) vesting of Options, subject to the
provisions hereof accelerating such vesting on a Change of Control; (ii) tax
matters (including provisions (y) permitting the delivery of additional shares
of Stock or the withholding of shares of Stock from those acquired upon exercise
to satisfy federal or state income tax withholding requirements and (z) dealing
with any other applicable employee wage withholding requirements) and (iii) any
other matters not inconsistent with the terms and provisions of this Plan that
the Committee shall in its sole discretion determine. The terms and conditions
of the respective Option Agreements need not be identical.

     (e) Option Price and Payment.  The price at which a share of Stock may be
purchased upon exercise of an Option shall be determined by the Committee, but
(i) such purchase price shall not be less than the Fair Market Value of Stock
subject to an Incentive Stock Option on the date such Incentive Stock Option, as
the case may be, is granted and (ii) such purchase price shall be subject to
adjustment as provided in Paragraph 9. The Option or portion thereof may be
exercised by delivery of an irrevocable notice of exercise to the Company. The
purchase price of the Option or portion thereof shall be paid in full in the
manner prescribed by the Committee.

     (f) Shareholder Rights and Privileges.  The Holder shall be entitled to all
the privileges and rights of a shareholder only with respect to such shares of
Stock as have been purchased under the Option and for which certificates of
stock have been registered in the Holder's name.

                                       4
<PAGE>

     (g) Options in Substitution for Stock Options Granted by Other
Corporations.  Options may be granted under the Plan from time to time in
substitution for stock options held by individuals employed by corporations who
become employees as a result of a merger or consolidation of the employing
corporation with the Company or any subsidiary, or the acquisition by the
Company or a subsidiary of the assets of the employing corporation, or the
acquisition by the Company or a subsidiary of stock of the employing corporation
with the result that such employing corporation becomes a subsidiary.

                           8. RESTRICTED STOCK AWARDS

     (a) Forfeiture Restrictions to be Established by the Committee.  Shares of
Stock that are the subject of a Restricted Stock Award shall be subject to
restrictions on disposition by the Holder and an obligation of the Holder to
forfeit and surrender the shares to the Company under certain circumstances (the
"Forfeiture Restrictions"). The Forfeiture Restrictions shall be determined by
the Committee in its sole discretion, and the Committee may provide that the
Forfeiture Restrictions shall lapse upon (i) the attainment of targets
established by the Committee that are based on (a) the price of a share of
Stock, (b) the Company's earnings per share, (c) the Company's revenue, (d) the
revenue of a business unit of the Company designated by the Committee, (e) the
return on shareholders' equity achieved by the Company or (f) the Company's
pre-tax cash flow from operations; (ii) the Holder's continued employment with
the Company for a specified period of time or (iii) a combination of any two or
more of the factors listed in clauses (i) and (ii) of this sentence. Each
Restricted Stock Award may have different Forfeiture Restrictions, in the
discretion of the Committee. The Forfeiture Restrictions applicable to a
particular Restricted Stock Award shall not be changed except as permitted by
Paragraph 8(b) or Paragraph 9.

     (b) Date of Lapse of Forfeiture Restrictions to be Established by the
Committee.  The Committee, at the time of grant of a Restricted Stock Award,
shall specify the date or dates (which may depend upon or be related to the
attainment of targets and other conditions as set forth above) on which the
Forfeiture Restrictions shall lapse. The Committee at any time may accelerate
such date or dates and otherwise waive or amend any conditions of the grant;
provided, however, the Committee may not take any action described in this
paragraph with respect to a Restricted Stock Award that has been granted to a
"covered employee" (within the meaning of Treasury Regulation
sec. 1.162-27(c)(2)) if such Restricted Stock Award has been designed to meet
the exception for performance-based compensation under Section 162(m) of the
Code. With respect to a Restricted Stock Award granted to a "covered employee,"
if the Forfeiture Restrictions imposed upon such Restricted Stock Award are
based on the attainment of performance goals, the Committee shall certify in
writing that such performance goals have been attained.

     (c) Other Terms and Conditions.  No individual may be awarded in any
calendar year more than           shares of Stock that are subject to a
Restricted Stock Award. Stock awarded pursuant to a Restricted Stock Award shall
be represented by a stock certificate registered in the name of the Holder of
such Restricted Stock Award. The Holder shall have the right to receive
dividends with respect to Stock subject to a Restricted Stock Award, to vote
Stock subject thereto and to enjoy all other shareholder rights, except that (i)
the Holder shall not be entitled to delivery of the stock certificate until the
Forfeiture Restrictions shall have expired; (ii) the Company shall retain
custody of the Stock until the Forfeiture Restrictions shall have expired; (iii)
the Holder may not sell, transfer, pledge, exchange, hypothecate or otherwise
dispose of the Stock until the Forfeiture Restrictions shall have expired and
(iv) a breach of the terms and conditions established by the Committee pursuant
to the Restricted Stock Agreement shall cause a forfeiture of the Restricted
Stock Award. At the time of such Award, the Committee may, in its sole
discretion, prescribe additional terms, conditions or restrictions relating to
Restricted Stock Awards, including, but not limited to, rules pertaining to the
termination of employment or the cessation of serving on the Board (by
retirement, disability, death or otherwise) of a Holder prior to expiration of
the Forfeiture Restrictions. Such additional terms, conditions or restrictions
shall be set forth in a Restricted Stock Agreement made in conjunction with the
Award. Such Restricted Stock Agreement may also include, without limitation,
provisions relating to (i) vesting of Awards, subject to the provisions hereof
accelerating vesting on a Change of Control; (ii) tax matters (including
provisions (y) covering any
                                       5
<PAGE>

applicable employee wage withholding requirements and (z) prohibiting an
election by the Holder under Section 83(b) of the Code); and (iii) any other
matters not inconsistent with the terms and provisions of this Plan that the
Committee shall in its sole discretion determine. The terms and conditions of
the respective Restricted Stock Agreements need not be identical.

     (d) Payment for Restricted Stock.  The Committee shall determine the amount
and form of any payment for Stock received pursuant to a Restricted Stock Award,
provided that in the absence of such a determination, a Holder shall not be
required to make any payment for Stock received pursuant to a Restricted Stock
Award, except to the extent otherwise required by law.

     (e) Agreements.  At the time any Award is made under this Paragraph 8 the
Company and the Holder shall enter into a Restricted Stock Agreement setting
forth each of the matters as the Committee may determine to be appropriate. The
terms and provisions of the respective Restricted Stock Agreements need not be
identical.

                     9. RECAPITALIZATION OR REORGANIZATION

     (a) In the event of changes in the outstanding Stock by reason of a stock
split, stock dividend, combination of shares or other relevant changes in
capitalization, the number and kind of shares of Stock or other securities which
are subject to this Plan or subject to any Awards theretofore granted, and the
exercise prices shall be appropriately and equitably adjusted so as to maintain
the proportionate number of shares or other securities without changing the
aggregate exercise price.

     (b) If the Company recapitalizes or otherwise changes its capital
structure, thereafter upon any exercise or satisfaction, as applicable, of an
Award theretofore granted the Holder shall be entitled to (or entitled to
purchase, if applicable) under such Award, in lieu of the number of shares of
Stock then covered by such Award, the number and class of shares of stock and
securities to which the Holder would have been entitled pursuant to the terms of
the recapitalization if, immediately prior to such recapitalization, the Holder
had been the holder of record of the number of shares of Stock then covered by
such Award.

     (c) Upon the occurrence of a Change of Control, all Awards shall
immediately vest and become exercisable or satisfiable, as applicable. The
Committee, in its discretion, may determine that upon the occurrence of a Change
of Control, each Award other than an Option outstanding hereunder shall
terminate within a specified number of days after notice to the Holder, and such
Holder shall receive, with respect to each share of Stock subject to such Award,
cash in an amount equal to the excess, if any, of the Change of Control Value
over the exercise price. Further, upon the occurrence of a Change of Control,
the Committee, in its discretion, shall act to effect one or more of the
following alternatives with respect to outstanding Options, which may vary among
individual Holders and which may vary among Options held by any individual
Holder: (i) determine a limited period of time for the exercise of such Options
on or before a specified date (before or after such Change of Control) after
which specified date all unexercised Options and all rights of Holders
thereunder shall terminate; (ii) require the mandatory surrender to the Company
by selected Holders of some or all of the outstanding Options held by such
Holders (irrespective of whether such Options are then exercisable under the
provisions of the Plan) as of a date, before or after such Change of Control,
specified by the Committee, in which event the Committee shall thereupon cancel
such Options and the Company shall pay to each Holder an amount of cash per
share equal to the excess, if any, of the Change of Control Value of the shares
subject to such Option over the option price(s) under such Options for such
shares; (iii) make such adjustments to Options then outstanding as the Committee
deems appropriate to reflect such Change of Control (provided, however, that the
Committee may determine in its sole discretion that no adjustment is necessary
to Options then outstanding) or (iv) provide that thereafter upon any exercise
of an Option theretofore granted the Holder shall be entitled to purchase under
such Option, in lieu of the number of shares of Stock then covered by such
Option the number and class of shares of stock or other securities or property
(including, without limitation, cash) to which the Holder would have been
entitled pursuant to the terms of the agreement of merger, consolidation or sale
of assets and dissolution if, immediately prior to such merger, consolidation

                                       6
<PAGE>

or sale of assets and dissolution the Holder has been the holder of record of
the number of shares of Stock then covered by such Option. The provisions
contained in this paragraph shall not alter or terminate any rights of the
Holder to further payments pursuant to any other agreement with the Company
following a Change of Control.

     (d) The existence of the Plan and the Awards granted hereunder shall not
affect in any way the right or power of the Board or the shareholders of the
Company to make or authorize any adjustment, recapitalization, reorganization or
other change in the Company's capital structure or its business, any merger or
consolidation of the Company, any issue of debt or equity securities ahead of or
affecting Stock or the rights thereof, the dissolution or liquidation of the
Company or any sale, lease, exchange or other disposition of all or any part of
its assets or business or any other corporate act or proceeding.

     (e) Any adjustment provided for in Subparagraphs (a), (b) or (c) above
shall be subject to any required shareholder action.

     (f) Except as hereinbefore expressly provided, the issuance by the Company
of shares of stock of any class or securities convertible into shares of stock
of any class, for cash, property, labor or services, upon direct sale, upon the
exercise of rights or warrants to subscribe therefor, or upon conversion of
shares of obligations of the Company convertible into such shares or other
securities, and in any case whether or not for fair value, shall not affect, and
no adjustment by reason thereof shall be made with respect to, the number of
shares of Stock subject to Awards theretofore granted or the exercise price per
share, if applicable.

                   10. AMENDMENT AND TERMINATION OF THE PLAN

     The Board in its discretion may terminate the Plan at any time with respect
to any shares for which Awards have not theretofore been granted. The Board
shall have the right to alter or amend the Plan or any part thereof from time to
time; provided that no change in any Award theretofore granted may be made which
would impair the rights of the Holder without the consent of the Holder (unless
such change is required in order to cause the benefits under the Plan to qualify
as performance-based compensation within the meaning of section 162(m) of the
Code and applicable interpretive authority thereunder), and provided, further,
that the Board may not, without approval of the shareholders, amend the Plan:

          (a) to increase the maximum number of shares which may be issued on
     exercise or surrender of an Award, except as provided in Paragraph 9;

          (b) to change the Option price;

          (c) to change the class of employees or Directors eligible to receive
     Awards or materially increase the benefits accruing to employees or
     Directors under the Plan;

          (d) to extend the maximum period during which Awards may be granted
     under the Plan;

          (e) to modify materially the requirements as to eligibility for
     participation in the Plan;

          (f) to decrease any authority granted to the Committee hereunder in
     contravention of Rule 16b-3; or

          (g) in any other manner that would require shareholder approval under
     Rule 16b-3, the exchange on which Stock is listed, or Sections 162(m) or
     422 of the Code or any successor provisions.

                               11. MISCELLANEOUS

     (a) No Right to An Award.  Neither the adoption of the Plan by the Company
nor any action of the Board or the Committee shall be deemed to give an employee
or Director any right to be granted an Award to purchase Stock or a Restricted
Stock Award or any of the rights hereunder except as may be evidenced by an
Award or by an Option Agreement or Restricted Stock Agreement on behalf of the

                                       7
<PAGE>

Company, and then only to the extent and on the terms and conditions expressly
set forth therein. The Plan shall be unfunded. The Company shall not be required
to establish any special or separate fund or to make any other segregation of
funds or assets to assure the payment of any Award.

     (b) No Employment or Service Rights Conferred.  Nothing contained in the
Plan shall (i) confer upon any employee or Director any right with respect to
continuation of employment or service with the Company or any subsidiary or (ii)
interfere in any way with the right of the Company or any subsidiary to
terminate his or her employment or service at any time.

     (c) Compliance With Other Laws; Withholding.  The Plan, the grant and
exercise of Awards thereunder, and the obligation of the Company to sell and
deliver shares under such Awards, shall be subject to all applicable federal and
state laws, rules and regulations and to such approvals by any governmental or
regulatory agency as may be required. The Company shall not be obligated to
issue any Stock pursuant to any Award granted under the Plan at any time when
the shares covered by such Award have not been registered under any state and
federal laws, rules or regulations as the Company or the Committee deems
applicable and, in the opinion of legal counsel for the Company, there is no
exemption from the registration requirements of such laws, rules or regulations
available for the issuance and sale of such shares. No fractional shares of
Stock shall be delivered, nor shall any cash in lieu of fractional shares be
paid. The Company shall have the right to deduct in connection with all Awards
any taxes required by law to be withheld and to require any payments required to
enable it to satisfy its withholding obligations.

     (d) No Restriction on Corporate Action.  Nothing contained in the Plan
shall be construed to prevent the Company or any subsidiary from taking any
corporate action which is deemed by the Company or such subsidiary to be
appropriate or in its best interest, whether or not such action would have an
adverse effect on the Plan or any Award made under the Plan. No employee,
director, beneficiary or other person shall have any claim against the Company
or any subsidiary as a result of any such action.

     (e) Restrictions on Transfer.  An Award shall not be transferable otherwise
than by will or the laws of descent and distribution or pursuant to a "qualified
domestic relations order" as defined by the Code or Title I of the Employee
Retirement Income Security Act of 1974, as amended, or the rules thereunder, and
shall be exercisable during the Holder's lifetime only by such Holder or the
Holder's guardian or legal representative.

     (f) Section 162(m).  If the Company is subject to 162(m) of the Code, it is
intended that the Plan comply fully with and meet all the requirements of
Section 162(m) of the Code and regulations promulgated thereunder so that
Options granted hereunder and, if determined by the Committee, Restricted Stock
Awards, shall constitute "performance-based" compensation within the meaning of
such section. If any provision of the Plan would disqualify the Plan or would
not otherwise permit the Plan to comply with Section 162(m) as so intended, such
provision shall be construed or deemed amended to conform to the requirements or
provisions of Section 162(m); provided that no such construction or amendment
shall have an adverse effect on the economic value to a Holder of any Award
previously granted hereunder. With respect to any Award granted to a "covered
employee" (as defined in Section 162(m)(3) of the Code), if the payment of such
Award is contingent on the satisfaction of performance goals, such performance
goals shall be established in writing by the Committee not later than ninety
(90) days after the commencement of the period of service to which the
performance goals relate; provided, however, that the performance goals must be
established before twenty-five percent (25%) of such period of service has
elapsed. The performance goals shall comply with the requirements of Treasury
Regulation Section 1.162-27(e)(2). The Committee shall certify in writing prior
to payment of any such Award that such performance goals have been satisfied.

     (g) Rule 16b-3.  It is intended that the Plan and any grant of an Award
made to a person subject to Section 16 of the 1934 Act meet all of the
requirements of Rule 16b-3. If any provision of the Plan or any such Award would
disqualify the Plan or such Award under, or would otherwise not comply with,
Rule 16b-3, such provision or award shall be construed or deemed amended to
conform to Rule 16b-3.

     (h) Governing Law.  This Plan shall be construed in accordance with the
laws of the State of Texas.

                                       8

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