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                                                                    EXHIBIT 10.8

                          VANGUARD HEALTH SYSTEMS, INC.
                            2004 STOCK INCENTIVE PLAN

            1. Purpose of the Plan.

            The purpose of the Plan is to aid the Company (as defined below) and
its Affiliates (as defined below) in recruiting and retaining key employees of
outstanding ability and to motivate such employees to exert their best efforts
on behalf of the Company and its Affiliates by providing compensation and
incentives through the granting of Awards (as defined below). The Company
expects that it will benefit from the added interest which such key employees
will have in the welfare of the Company as a result of their proprietary
interest in the Company's success.

            2. Definitions.

            The following capitalized terms used in the Plan have the respective
meanings set forth in this Section:

            (a) "ACT" means the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder, or any successor statute
thereto.

            (b) "AFFILIATE" means, with respect to any Person, any other Person
directly or indirectly controlling, controlled by or under common control with
such Person or any other Person designated by the Committee in which any Person
has an interest.

            (c) "AWARD" means any Option, Stock Appreciation Right, or Other
Stock-Based Award granted pursuant to the Plan.

            (d) "AWARD AGREEMENT" means any written agreement, contract, or
other instrument or document evidencing any Award, which may, but need not, be
executed or acknowledged by a Participant.

            (e) "BLACKSTONE" means each of Blackstone FCH Capital Partners IV
L.P., Blackstone Health Commitment Partners L.P., Blackstone Capital Partners IV
- A L.P., Blackstone Family Investment Partnership IV - A L.P., Blackstone
Health Commitment Partners - A L.P., Blackstone Health Commitment Partners - B
L.P., Blackstone FCH Capital Partners IV - D L.P., Blackstone FCH Capital
Partners IV - C L.P., Blackstone FCH Capital Partners IV - B L.P., and
Blackstone FCH Capital Partners IV - A L.P., and their respective Affiliates.

            (f) "BOARD OF DIRECTORS" means the Board of Directors of the
Company.

            (g) "CHANGE IN CONTROL" means the occurrence of any of the following
events:

                  (A) any Person (together with its Affiliates) (other than (1)
Holdings LLC (as defined below) or any of its Subsidiaries, (2) any trustee or
other fiduciary holding securities under an employee benefit plan of Holdings
LLC or any of its Subsidiaries, (3) an underwriter

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temporarily holding securities pursuant to an offering of such securities, (4)
any corporation or other entity owned, directly or indirectly, by the
equityholders of Holdings LLC and the Company in substantially the same
proportions as their ownership of Securities, or (5) any Person that is an
equityholder of Holdings LLC or its Subsidiaries on the Closing Date), is or
becomes the "beneficial owner" (as defined in Rule 13d-3 under the Act),
directly or indirectly, of securities of Holdings LLC representing more than 50%
of the combined voting power of the Holdings LLC's then outstanding voting
securities;

                  (B) a merger or consolidation of Holdings LLC with any Person,
other than (a) a merger or consolidation which would result in the voting
securities of Holdings LLC outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving or parent entity) 50% or more of the combined voting
power of the voting securities of Holdings LLC or such surviving or parent
entity outstanding immediately after such merger or consolidation or (b) a
merger or consolidation in which no Person (together with its Affiliates) (other
than (1) Holdings LLC or any of its Subsidiaries, (2) any trustee or other
fiduciary holding securities under an employee benefit plan of Holdings LLC or
any of its Subsidiaries, (3) an underwriter temporarily holding securities
pursuant to an offering of such securities, (4) any corporation or other entity
owned, directly or indirectly, by the equityholders of Holdings LLC and the
Company in substantially the same proportions as their ownership of Securities,
or (5) any Person that is an equityholder of Holdings LLC or its Subsidiaries on
the Closing Date) acquired 50% or more of the combined voting power of Holdings
LLC's then outstanding securities; or

                  (C) a complete liquidation of Holdings LLC and the Company or
a sale or disposition by Holdings LLC of all or substantially all of Holdings
LLC's assets (or any transaction having a similar effect).

            (h) "CLOSING DATE" means the date of the closing of the agreement
and plan of merger by and among Holdings LLC, Health Systems Acquisition Corp.
and the Company, dated as of July 23, 2004.

            (i) "CODE" means the Internal Revenue Code of 1986, as amended, or
any successor thereto.

            (j) "COMMITTEE" means a committee of the Board of Directors
designated by the Board of Directors or absent such a designation, the Board of
Directors.

            (k) "COMPANY" means Vanguard Health Systems, Inc., a Delaware
corporation.

            (l) "EFFECTIVE DATE" means the date the Board of Directors adopts
the Plan.

            (m) "EMPLOYMENT" a Participant's employment if the Participant is an
employee of the Company or any of its Affiliates; provided however that unless
otherwise determined by the Committee, a change in a Participant's status from
employee to non-employee shall constitute a termination of employment hereunder.

            (n) "FAIR MARKET VALUE" means on a given date, (i) if there is a
public market for the Shares on such date, the arithmetic mean of the high and
low prices of the Shares as

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reported on such date on the composite tape of the principal national securities
exchange on which such Shares are listed or admitted to trading, or, if no
composite tape exists for such national securities exchange on such date, then
on the principal national securities exchange on which such Shares are listed or
admitted to trading, or, if the Shares are not listed or admitted on a national
securities exchange, the arithmetic mean of the per Share closing bid price and
per Share closing asked price on such date as quoted on the National Association
of Securities Dealers Automated Quotation System (or such market in which such
prices are regularly quoted) (the "NASDAQ"), or, if no sale of Shares shall have
been reported on such composite tape or such national securities exchange on
such date or quoted on the NASDAQ on such date, then the immediately preceding
date on which sales of the Shares have been so reported or quoted shall be used,
and (ii) if there is no public market for the Shares on such date, the Fair
Market Value shall be the fair value of the Shares determined from time to time
in good faith by the Board of Directors.

            (o) "HOLDINGS LLC" means VHS Holdings LLC, a Delaware limited
liability company.

            (p) "ISO" means an Option that is also an incentive stock option
granted pursuant to Section 6(d) of the Plan.

            (q) "OPTION" means a stock option granted pursuant to Section 6 of
the Plan.

            (r) "OPTION PRICE" means the purchase price per Share of an Option,
as determined pursuant to Section 6(a) of the Plan.

            (s) "OTHER STOCK-BASED AWARD" means any award granted under Section
8 of the Plan.

            (t) "PARTICIPANT" means an employee of the Company or its Affiliates
who is selected by the Committee to receive an Award under the Plan.

            (u) "PERSON" means any individual, firm, corporation, partnership,
limited liability company, trust, incorporated or unincorporated association,
joint venture, joint stock company, governmental body or other entity of any
kind.

            (v) "PLAN" means the Vanguard Health Systems, Inc. 2004 Stock
Incentive Plan.

            (w) "SECURITIES" means (i) Units and (ii) Shares.

            (x) "SHARES" means shares of common stock, par value $0.01 per
share, of the Company.

            (y) "STOCK APPRECIATION RIGHT" means any right granted under Section
7 of the Plan.

            (z) "STOCKHOLDERS AGREEMENT" means the Stockholders Agreement among
the Company, Participants and other parties thereto.

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            (aa) "SUBSIDIARY" means a subsidiary corporation, as defined in
Section 424(f) of the Code.

            (bb) "UNITS" means Class A, B, C, or D membership interests of
Holdings LLC.

            3. Shares Subject to the Plan.

            The total number of Shares which may be issued under the Plan is
67,409. The Shares may consist, in whole or in part, of unissued Shares or
treasury Shares. The issuance of Shares or the payment of cash to a Participant
upon the exercise of an Award shall reduce the total number of Shares available
under the Plan, as applicable. Shares which are subject to Awards which
terminate or lapse may be granted again under the Plan. Any Options granted
under the Plan which fail to vest and that are forfeited without consideration
prior to a Change of Control shall be reallocated and granted at the original
exercise price to other Participants at any time prior to a Change of Control as
determined by the Company's Chief Executive Officer, and approved by the Board
of Directors. In addition, upon a Change of Control, any Shares remaining
available for grant under the Plan (disregarding for this purpose, any
additional Shares resulting from an amendment to the Plan to increase the number
of Shares available for issuance hereunder after the Effective Date) will be
granted to Participants based on consultation with the Company's Chief Executive
Officer, but with final allocation determined by the Board of Directors.

            4. Administration.

            The Plan shall be administered by the Committee, which may delegate
its duties and powers in whole or in part as it determines; provided, however,
that the Board of Directors may, in its sole discretion, take any action
designated to the Committee under this Plan as it may deem necessary. Awards
may, in the discretion of the Committee, be made under the Plan in assumption
of, or in substitution for, outstanding Awards previously granted by the Company
or its Affiliates or a company acquired by the Company or with which the Company
combines. The number of Shares underlying such substitute awards shall be
counted against the aggregate number of Shares available for Awards under the
Plan. The Committee is authorized to interpret the Plan, to establish, amend and
rescind any rules and regulations relating to the Plan, and to make any other
determinations that it deems necessary or desirable for the administration of
the Plan. The Committee may correct any defect or supply any omission or
reconcile any inconsistency in the Plan in the manner and to the extent the
Committee deems necessary or desirable. Any decision of the Committee in the
interpretation and administration of the Plan, as described herein, shall lie
within its sole and absolute discretion and shall be final, conclusive and
binding on all parties concerned (including, but not limited to, Participants
and their beneficiaries or successors). The Committee shall have the full power
and authority to establish the terms and conditions of any Award consistent with
the provisions of the Plan and the terms and conditions set forth in the
applicable Award Agreement. The Committee shall also have the full power and
authority to waive any such terms and conditions at any time (including, without
limitation, accelerating or waiving any vesting conditions or payment dates).
The Committee shall require payment of any amount it may determine to be
necessary to withhold for federal, state, local or other taxes as a result of
the exercise, grant or vesting of an Award. Unless the Committee specifies
otherwise, the Participant may elect to pay a portion or all of such

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withholding taxes by (a) delivery of previously acquired Shares or (b) having
Shares with a Fair Market Value equal to the statutory minimum withholding
liability withheld by the Company from any Shares that would have otherwise been
received by the Participant.

            5. Limitations.

            No Awards may be granted under the Plan after the tenth anniversary
of the Effective Date, but Awards theretofore granted may extend beyond that
date.

            6. Options.

            Options granted under the Plan shall be, as determined by the
Committee, non-qualified stock options or ISOs for federal income tax purposes,
as evidenced by the related Award Agreements, and shall be subject to the
foregoing and the following terms and conditions as set forth in the applicable
Award Agreement:

            (a) Option Price. The Option Price shall be determined by the
Committee, but, with respect to ISOs, shall not be less than 100% of the Fair
Market Value of the Shares on the date an Option is granted.

            (b) Exercisability. Options granted under the Plan shall be
exercisable at such time and upon such terms and conditions as may be determined
by the Committee, but in no event shall an Option be exercisable more than ten
years after the date it is granted.

            (c) Exercise of Options. Except as otherwise provided in the Plan or
in an Award Agreement, an Option may be exercised for all, or from time to time
any part, of the Shares for which it is then exercisable. Except as otherwise
provided in an Award Agreement, no Shares shall be delivered pursuant to any
exercise of an Option until payment in full of the aggregate Option Price and
any withholding amount required therefor is received by the Company. Except as
otherwise provided in an Award Agreement, payment of the aggregate Option Price
may be made (i) in cash, or its equivalent, (ii) by transferring Shares or other
equity securities of the Company or its Affiliates having a Fair Market Value
equal to the aggregate Option Price for the Shares being purchased to the
Company and satisfying such other requirements as may be imposed by the
Committee; provided that such Shares or equity securities have been held by the
Participant for no less than six months (or such other period as established
from time to time by the Committee or generally accepted accounting principles)
and (iii) if there is a public market for the Shares at such time, subject to
such rules as may be established by the Committee, through delivery of
irrevocable instructions to a broker to sell the Shares otherwise deliverable
upon the exercise of the Option and deliver promptly to the Company an amount
equal to the aggregate Option Price. No Participant shall have any rights to
dividends or other rights of a stockholder with respect to Shares subject to an
Option until the Participant has given written notice of exercise of the Option,
paid in full for such Shares and, if applicable, has satisfied any other
conditions imposed by the Committee pursuant to the Plan.

            (d) ISOs. The Committee may grant Options under the Plan that are
intended to be ISOs. Such ISOs shall comply with the requirements of Section 422
of the Code. No ISO may be granted to any Participant who at the time of such
grant is not an employee of the Company or of any of its Subsidiaries. In
addition, no ISO may be granted to any Participant

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who at the time of such grant owns more than 10% of the total combined voting
power of all classes of stock of the Company or of any of its Subsidiaries,
unless (i) the Option Price for such ISO is at least 110% of the Fair Market
Value of a Share on the date the ISO is granted and (ii) the date on which such
ISO terminates is a date not later than the day preceding the fifth anniversary
of the date on which the ISO is granted. Any Participant who disposes of Shares
acquired upon the exercise of an ISO either (I) within two years after the date
of grant of such ISO or (II) within one year after the transfer of such Shares
to the Participant, shall notify the Company of such disposition and of the
amount realized upon such disposition. All Options granted under the Plan are
intended to be non-qualified stock options, unless the applicable Award
Agreement expressly states that the Option is intended to be an ISO. If an
Option is intended to be an ISO, and if for any reason such Option (or portion
thereof) shall not qualify as an ISO, then, to the extent of such
nonqualification, such Option (or portion thereof) shall be regarded as a
non-qualified stock option granted under the Plan; provided that such Option (or
portion thereof) otherwise complies with the Plan's requirements relating to
non-qualified stock options. In no event shall any member of the Committee, the
Company or any of its Affiliates (or their respective employees, officers or
directors) have any liability to any Participant (or any other Person) due to
the failure of an Option to qualify for any reason as an ISO.

            (e) Attestation. Wherever in this Plan or any Award Agreement a
Participant is permitted to pay the Option Price or taxes relating to the
exercise of an Option by delivering Shares, the Participant may, subject to
procedures satisfactory to the Committee, satisfy such delivery requirement by
presenting proof of beneficial ownership of such Shares, in which case the
Company shall treat the Option as exercised without further payment and shall
withhold such number of Shares from the Shares acquired by the exercise of the
Option.

            7. Stock Appreciation Rights.

            (a) Grant. Subject to the provisions of the Plan, the Committee
shall have the sole and complete authority to determine the Participants to whom
Stock Appreciation Rights shall be granted, the number of Shares to be covered
by each Stock Appreciation Right, the grant price thereof and the conditions and
limitations applicable to the exercise thereof. Stock Appreciation Rights may be
granted in tandem with another Award, in addition to another Award, or
freestanding and unrelated to another Award. Stock Appreciation Rights granted
in tandem with or in addition to an Award may be granted either at the same time
as the Award or at a later time.

            (b) Exercise and Payment. A Stock Appreciation Right shall entitle
the Participant to receive an amount equal to the product of (i) the excess of
(A) the Fair Market Value of a Share on the date of exercise of the Stock
Appreciation Right over (B) the grant price per Share, times (ii) the number of
Shares covered by the Stock Appreciation Right. The Committee shall determine
whether a Stock Appreciation Right shall be settled in cash, Shares or a
combination of cash and Shares.

            (c) Other Terms and Conditions. Subject to the terms of the Plan and
any applicable Award Agreement, the Committee shall determine, at or after the
grant of a Stock Appreciation Right, the term, methods of exercise, methods and
form of settlement, and any other terms and conditions of the Stock Appreciation
Right. Any such determination by the Committee may be changed by the Committee
from time to time and may govern the exercise of

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Stock Appreciation Rights granted or exercised prior to such determination as
well as Stock Appreciation Rights granted or exercised thereafter. The Committee
may impose such conditions or restrictions on the exercise of any Stock
Appreciation Right as it shall deem appropriate.

            8. Other Stock-Based Awards.

            The Committee, in its sole discretion, may grant Awards of Shares,
rights to purchase Shares, Awards of restricted Shares, Awards of phantom stock
units and other Awards that are valued in whole or in part by reference to, or
are otherwise based on the Fair Market Value of, Shares ("OTHER STOCK-BASED
AWARDS"). Such Other Stock-Based Awards shall be in such form, and dependent on
such conditions, as the Committee shall determine, including, without
limitation, the right to receive one or more Shares (or the equivalent cash
value of such Shares) upon the completion of a specified period of service, the
occurrence of an event and/or the attainment of performance objectives. Other
Stock-Based Awards may be granted alone or in addition to any other Awards
granted under the Plan. Subject to the provisions of the Plan, the Committee
shall determine: (a) to whom and when Other Stock-Based Awards will be made; (b)
the number of Shares to be awarded under (or otherwise related to) such Other
Stock-Based Awards; (c) whether such Other Stock-Based Awards shall be settled
in cash, Shares or a combination of cash and Shares; and (d) all other terms and
conditions of such Other Stock-Based Awards (including, without limitation, the
vesting provisions thereof and provisions ensuring that all Shares so awarded
and issued shall be fully paid and non-assessable).

            9. Adjustments Upon Certain Events.

            Notwithstanding any other provisions in the Plan to the contrary,
the following provisions shall apply to all Awards granted under the Plan:

            (a) Generally. In the event of any change in the outstanding Shares
after the Effective Date by reason of any Share dividend or split,
reorganization, recapitalization, merger, consolidation, spin-off, combination
or transaction or exchange of Shares or other corporate exchange, or any
distribution to shareholders of Shares other than regular cash dividends or any
transaction similar to the foregoing, the Committee without liability to any
person shall make such substitution or adjustment as it deems to be equitable,
as to (i) the number or kind of Shares or other securities issued or reserved
for issuance pursuant to the Plan or pursuant to outstanding Awards, (ii) the
Option Price and/or (iii) any other affected terms of such Awards.

            (b) Change in Control. In the event of a Change in Control after the
Effective Date, the Committee may, in its sole discretion, provide for the (i)
termination of an Award upon the consummation of the Change in Control, but only
if such Award has vested and been paid out, (ii) acceleration of all or any
portion of an Award, (iii) the cancellation of any Award and, in connection
therewith, the payment of an amount (in cash or, in the discretion of the
Committee, in the form of consideration paid to shareholders of the Company in
connection with such Change in Control) which, in the case of Options and Stock
Appreciation Rights, shall equal the excess, if any, of the Fair Market Value of
the Shares subject to such Options or Stock Appreciation Rights over the
aggregate Option Price or grant price of such Option or Stock
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Appreciation Rights, and/or (iv) issuance of substitute Awards that will
substantially preserve the otherwise applicable terms of any affected Awards
previously granted hereunder.

            10. No Right to Employment or Awards.

            The granting of an Award under the Plan shall impose no obligation
on the Company or any of its Affiliates to continue the employment of a
Participant and shall not lessen or affect the Company's or its Affiliates'
rights to terminate the employment of such Participant. No Participant or other
Person shall have any claim to be granted any Award, and there is no obligation
for uniformity of treatment of Participants or holders or beneficiaries of
Awards. The terms and conditions of Awards and the Committee's determinations
and interpretations with respect thereto need not be the same with respect to
each Participant (whether or not such Participants are similarly situated).

            11. Successors and Assigns.

            The Plan shall be binding on all successors and assigns of the
Company and a Participant, including without limitation, the estate of such
Participant and the executor, administrator or trustee of such estate, or any
receiver or trustee in bankruptcy or representative of the Participant's
creditors.

            12. Nontransferability of Awards.

            Unless otherwise determined by the Committee, an Award shall not be
transferable or assignable by the Participant other than by will or by the laws
of descent and distribution. An Award exercisable after the death of a
Participant may be exercised by the legatees, personal representatives or
distributees of the Participant.

            13. Awards Subject to the Plan; Plan Subject to Stockholders
Agreement.

            In the event of a conflict between any term or provision contained
in the Plan and a term or provision in any Award Agreement, the applicable terms
and provisions of the Plan will govern and prevail. In the event of a conflict
between any term or provision of the Plan and any term or provision of the
Stockholders Agreement, the applicable terms and provisions of the Stockholders
Agreement will govern and prevail.

            14. Severability.

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

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            15. Amendments or Termination.

            (a) Amendments or Termination of the Plan. The Committee may amend,
alter or discontinue the Plan, but no amendment, alteration or discontinuation
shall be made which, without the written consent of a Participant, holder or
beneficiary of an Award, would diminish any of the rights of the Participant,
holder or beneficiary under any Award theretofore granted or transferred to such
Participant, holder or beneficiary under the Plan; provided, however, that the
Committee may amend the Plan in such manner as it deems necessary to permit the
granting of Awards meeting the requirements of the Code or other applicable
laws.

            (b) Amendments to Awards. The Committee may waive any conditions or
rights under, amend any terms of, or alter, suspend, discontinue, cancel or
terminate, any Award theretofore granted, prospectively or retroactively;
provided that no waiver, amendment, alteration, suspension, discontinuation,
cancellation or termination shall impair the rights of any Participant or any
holder or beneficiary of any Award theretofore granted without the written
consent of the affected Participant, holder or beneficiary.

            16. Governing Law.

            The Plan shall be governed by and construed in accordance with the
laws of the State of Delaware, without regard to conflicts of laws.

            17. Effectiveness of the Plan.

            The Plan shall be effective as of the Effective Date.<PAGE>

                                                                    EXHIBIT 10.9

                                VHS HOLDINGS LLC

                                 2004 UNIT PLAN

            SECTION 1. Purpose. The purposes of this VHS Holdings LLC 2004 Unit
Plan (the "Plan") are to promote the interests of VHS Holdings LLC (the
"Company") and its members by (i) attracting and retaining exceptional officers
and other employees of the Company and its Subsidiaries and (ii) enabling such
individuals to acquire an equity interest in and participate in the long-term
growth and financial success of the Company.

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

            "Award" shall mean the grant of the right to purchase Class A Units,
Class B Units, Class C Units and/or Class D Units.

            "Award Agreement" shall mean any written agreement, contract, or
other instrument or document (which may include provisions of an employment
agreement to which the Company is a party) evidencing any Award granted
hereunder.

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

            "Class A Unit" shall mean a Class A Unit as defined in the LLC
Agreement.

            "Class B Unit" shall mean a Class B Unit as defined in the LLC
Agreement.

            "Class C Unit" shall mean a Class C Unit as defined in the LLC
Agreement.

            "Class D Unit" shall mean a Class D Unit as defined in the LLC
Agreement.

            "Committee" shall mean the Board or any person or persons designated
by the Board to administer the Plan.

            "Company" shall mean VHS Holdings LLC, a Delaware limited liability
company, together with any successor thereto.

            "Effective Date" shall mean the date the Plan is adopted by the
Board, or such later date as designated by the Board.

            "LLC Agreement" shall mean the Limited Liability Company Operating
Agreement of the Company, dated as of September 23, 2004, as amended from time
to time.

            "Participant" shall mean any officer or other employee of the
Company or its Subsidiaries eligible for an Award under Section 4 and selected
by the Committee to receive an Award under the Plan.

            "Plan" shall mean this VHS Holdings LLC 2004 Unit Award Plan.

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            "Subsidiary" shall mean (i) any entity that, directly or indirectly,
is controlled by the Company and (ii) any entity in which the Company has a
significant equity interest, in either case as determined by the Committee.

            "Unit" shall mean a Class A Unit, a Class B Unit, a Class C Unit or
a Class D Unit.

            SECTION 3. Units Subject to the Plan.

            The total number of Class A Units which may be issued under the Plan
is 117,067, the total number of Class B Units which may be issued under the Plan
is 41,945, the total number of Class C Units which may be issued under the Plan
is 41,945 and the total number of Class D Units which may be issued under the
Plan is 35,952. Units which are subject to Awards which terminate or lapse may
be granted again under the Plan.

            SECTION 4. Administration.

            (a) The Plan shall be administered by the Committee. Subject to the
terms of the Plan and applicable law, and in addition to other express powers
and authorizations conferred on the Committee by the Plan, the Committee shall
have full power and authority to: (i) designate Participants; (ii) determine the
number and/or class of Units to be covered by an Award; (iii) determine the
terms and conditions of any Award; (iv) determine whether, to what extent, and
under what circumstances Awards may be settled, exercised, canceled, forfeited,
or suspended; (v) interpret, administer, reconcile any inconsistency, correct
any default and/or supply any omission in the Plan and any instrument or
agreement relating to an Award made under the Plan; (vi) establish, amend,
suspend, or waive such rules and regulations and appoint such agents as it shall
deem appropriate for the proper administration of the Plan; and (vii) make any
other determination and take any other action that the Committee deems necessary
or desirable for the administration of the Plan.

            (b) All designations, determinations, interpretations, and other
decisions under or with respect to the Plan or any Award shall be within the
sole discretion of the Committee, may be made at any time and shall be final,
conclusive, and binding upon all persons, including the Company, any Subsidiary,
any Participant, any holder or beneficiary of any Award, and any member of the
Company.

            SECTION 5. Eligibility. Any officer or other employee to the Company
or any of its Subsidiaries (including any prospective officer or employee) shall
be eligible to be designated a Participant.

            SECTION 6. Awards.

            (a) Grant. Subject to the provisions of the Plan, the Committee
shall have sole and complete authority to determine the Participants to whom
Awards shall be granted, the purchase price, if any, of an Award, the number and
class of Units to be covered by each Award and the conditions and limitations
applicable to the Award.

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            (b) Subject to LLC Agreement. As a condition to the grant of an
Award, the Participant will be required to become a party to the LLC Agreement
and the Units acquired will be held subject to the terms and conditions of the
LLC Agreement.

            (c) Adjustments. In the event of any change in the outstanding Units
after the Effective Date by reason of any reorganization, recapitalization,
merger, consolidation, spin-off, combination or transaction or exchange of Units
or other exchange or any transaction similar to the foregoing, the Board in its
sole discretion and without liability to any person shall make such substitution
or adjustment, if any, as it deems to be equitable, as to (i) the number or kind
of Units or other securities issued or reserved for issuance pursuant to the
Plan or pursuant to outstanding Awards and/or (ii) any other affected terms of
such Awards.

            SECTION 7. Amendment and Termination.

            (a) Amendments to the Plan. The Board may amend, alter, suspend,
discontinue, or terminate the Plan or any portion thereof at any time; provided
that any such amendment, alteration, suspension, discontinuance, or termination
that would materially adversely affect the rights of any Participant or other
holder of an Award theretofore granted shall not to that extent be effective
without the consent of the affected Participant.

            (b) Amendments to Awards. The Committee may waive any conditions or
rights under, amend any terms of, or alter, suspend, discontinue, cancel or
terminate, any Award theretofore granted, prospectively or retroactively;
provided that any such waiver, amendment, alteration, suspension,
discontinuance, cancellation or termination not expressly contemplated by the
Plan that would materially adversely affect the rights of any outstanding Award
shall not effective without the consent of the affected Participant.

            SECTION 8. General Provisions.

            (a) No Rights to Awards. No person shall have any claim to be
granted any Award, and there is no obligation for uniformity of treatment of
Participants or beneficiaries of Awards. The terms and conditions of Awards and
the Committee's determinations and interpretations with respect thereto need not
be the same with respect to each Participant (whether or not such Participants
are similarly situated).

            (b) Certificates. All certificates, if any, evidencing Units or
other securities of the Company or any Subsidiary delivered under the Plan shall
be subject to such stop transfer orders and other restrictions as the Committee
may deem advisable under the Plan or the rules, regulations, and other
requirements of the Securities and Exchange Commission, any stock exchange upon
which such securities are then listed, and any applicable Federal or state laws,
and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions.

            (c) Withholding. A Participant may be required to pay to the Company
or any Subsidiary and the Company or any Subsidiary shall have the right and is
hereby authorized to withhold from any payment due or transfer made under any
Award or under the Plan or from any

<PAGE>

                                                                               4

compensation or other amount owing to a Participant the amount (in cash,
securities, or other property) of any applicable withholding taxes in respect of
an Award or any payment or transfer under an Award or under the Plan and to take
such other action as may be necessary in the opinion of the Company to satisfy
all obligations for the payment of such taxes.

            (d) No Right to Employment. The grant of an Award shall not be
construed as giving a Participant the right to be retained in the employ of, or
in any consulting relationship with, the Company or any Subsidiary. Further, the
Company or a Subsidiary may at any time dismiss a Participant from employment or
discontinue any consulting relationship, free from any liability or any claim
under the Plan, unless otherwise expressly provided in the Plan or in any Award
Agreement.

            (e) Governing Law. The validity, construction, and effect of the
Plan shall be determined in accordance with the laws of the State of New York,
without regard to the conflict of laws provisions thereof.

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

            SECTION 9. Term of the Plan.

            (a) Effective Date. The Plan shall be effective as of the Effective
Date.

            (b) Expiration Date. No Award shall be granted under the Plan after
the tenth anniversary of the Effective Date. Unless otherwise expressly provided
in the Plan or in an applicable Award Agreement, any Award granted hereunder
may, and the authority of the Board or Committee to amend, alter, adjust,
suspend, discontinue, or terminate any such Award or to waive any conditions or
rights under any such Award shall, continue after such date.

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