Document:

<PAGE>

                             PACIFIC CAPITAL BANCORP

                                 2002 STOCK PLAN
                          (Effective January 22, 2002)

      Pacific Capital Bancorp hereby adopts the following 2002 Stock Plan.

1.    PURPOSES OF THE PLAN

      The purposes of this Plan are to attract, motivate and retain the best
available officers and employees for the Company and its Subsidiaries, and to
provide them with additional incentive to promote the success of the business of
the Company and its Subsidiaries.

2.    DEFINITIONS

      As used herein, the following definitions shall apply:

      2.1   ADMINISTRATOR. "Administrator" means the Board of Directors or the
Committee as shall be administering the Plan in accordance with SECTION 10 of
the Plan.

      2.2   APPLICABLE LAWS. "Applicable Laws" means the federal and state laws
relating to the administration of stock option plans.

      2.3   AWARD. "Award" means any Option or Plan Stock granted or issued
under this Plan.

      2.4   AWARD AGREEMENT. "Award Agreement" means any Option Agreement or
Stock Agreement, as appropriate, relating to any Award.

      2.5   BOARD OF DIRECTORS. "Board of Directors" means the Board of
Directors of the Company.

      2.6   CHANGE OF CONTROL. "Change of Control" means the occurrence of
either of the following events:

            2.6.1     An acquisition (other than directly from the Company) of
any voting securities of the Company by any person (as that term is used for
purposes of Section 13(d) or Section 14(d) of the Exchange Act), immediately
after which such person has beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of thirty-five percent (35%) or more
of the combined voting power of the Company's then outstanding voting
securities;

                      A.    provided that a Change of Control shall not be
      deemed to have occurred if the person acquiring the securities is either
      (i) an employee benefit plan (or a trust forming a part thereof)
      maintained by the Company or any of its Subsidiaries or (ii) the Company
      or any of its Subsidiaries; and

                      B.    provided further that a Change of Control shall not
      be deemed to have occurred if any person (other than a person described in
      SECTION 2.6.1A above) acquires such

                                       1
<PAGE>

      securities in connection with any merger, consolidation or other
      reorganization of the Company in a transaction after which:

                         (i)     the stockholders of the Company, immediately
            before such transaction, own directly or indirectly immediately
            after such transaction at least fifty-one percent (51%) of the
            voting securities of the corporation resulting from such merger,
            consolidation or reorganization (the "Surviving Corporation") in
            substantially the same proportion as their ownership of the voting
            securities of the Company immediately before such transaction; or

                         (ii)    the individuals who were Incumbent Directors at
            the time of the Company's execution of the agreement providing for
            such transaction constitute at least a majority of the members of
            the board of directors of Surviving Corporation; provided that, if
            the Company is not the Surviving Corporation or is the Surviving
            Corporation but is a subsidiary of another corporation, the
            individuals who were Incumbent Directors at the time of the
            Company's execution of the agreement providing for such transaction
            constitute at least a majority of the members of the Board of
            Directors of the ultimate parent corporation of the Surviving
            Corporation; or

                         (iii)   no person [other than (a) the Company, (b) any
            Subsidiary of the Company, or (c) any employee benefit plan (or any
            trust forming a part thereof) maintained by the Company, the
            Surviving Corporation or any Subsidiary of the Company], has
            beneficial ownership of thirty-five percent (35%) or more of the
            combined voting power of the Surviving Corporation's voting
            securities outstanding immediately after such transaction; or

            2.6.2     A cumulative change in the composition of the Board of
Directors occurring during any two-year period, as a result of which fewer than
a majority of the Directors are Incumbent Directors; provided that no individual
shall be considered to be an Incumbent Director if such individual initially
assumed office as a result of either an actual or threatened election contest
(as described in Rule 14a-11 promulgated under the Exchange Act) (an "Election
Contest") or other actual or threatened solicitation of proxies or consents by
or on behalf of a person other than the Board of Directors (a "Proxy Contest"),
including by reason of any agreement intended to avoid or settle any Election
Contest or Proxy Contest.

            2.6.3     Notwithstanding the foregoing, a Change of Control shall
not be deemed to occur solely because any person acquires beneficial ownership
of more than the permitted percentage of the then outstanding voting securities
of the Company as a result of the acquisition of voting securities by the
Company which, by reducing the number of voting securities then outstanding,
increases the proportional number of voting securities beneficially owned by
such person; provided that, if a Change of Control would occur (but for the
operation of this sentence) as a result of the acquisition of voting securities
by the Company, and, after such acquisition by the Company, such person becomes
the beneficial owner of any additional voting securities which increases the
percentage of the then outstanding voting securities beneficially owned by such
person, then a Change of Control shall occur.

      2.7   CODE. "Code" means the Internal Revenue Code of 1986, as amended.

                                       2

<PAGE>

      2.8   COMMISSION. "Commission" means the Securities and Exchange
Commission.

      2.9   COMMITTEE. "Committee" means the Committee of the Board of Directors
that shall administer the Plan.

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

      2.11  COMPANY. "Company" means Pacific Capital Bancorp, a California
corporation.

      2.12  DONATIVE TRANSFER. "Donative Transfer" means any transfer of an
Option made for donative purposes or without the payment or receipt by or on
behalf of the Optionee of any cash, property or other consideration. For
purposes of this SECTION 2.12, neither an Optionee's receipt of or eligibility
for a deduction, credit or similar allowance for federal or state income tax or
estate tax purposes nor the transferee's use for family or support purposes of
any proceeds realized from the sale of any shares of Common Stock acquired on
exercise of an Option shall be deemed to be the receipt of consideration.

      2.13  EFFECTIVE DATE. "Effective Date" means January 22, 2002, the date on
which this Plan was approved by the Board of Directors.

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

      2.15  FAIR MARKET VALUE. "Fair Market Value" means, as of any date, the
value of the Common Stock determined as follows.

            2.15.1    If the Common Stock is listed on an established stock
exchange or a national market system, including without limitation the Nasdaq
National Market of the National Association of Securities Dealers, Inc.
Automated Quotation ("NASDAQ") System, the Fair Market Value of a share of
Common Stock shall be the closing sales price for such stock (or the closing
bid, if no sales were reported) as quoted on such system or exchange (or the
exchange with the greatest volume of trading in the Common Stock) on the last
market trading day prior to the date of determination.

            2.15.2    If the Common Stock is quoted on the NASDAQ System (but
not on the Nasdaq National Market thereof) or is regularly quoted by a
recognized securities dealer but selling prices are not reported, the Fair
Market Value of a share of Common Stock shall be the mean between the high bid
and low asked prices for the Common Stock on the last market trading day prior
to the date of determination.

      2.16  INCENTIVE OPTION. "Incentive Option" means an option which conforms
to the applicable provisions of Section 422 of the Code and which is designated
as an Incentive Option by the Administrator.

      2.17  INCUMBENT DIRECTORS. "Incumbent Directors" means Directors of the
Company who either (a) are Directors of the Company as of the Effective Date, or
(b) are elected, or nominated for election, to the Board of Directors by the
affirmative vote of at least a majority of the Incumbent Directors at the time
of such election or nomination; provided that, for purposes of this clause (b),
an individual whose election or nomination is effected in connection with an
actual or threatened Election Contest or Proxy Contest (as those terms are
defined in SECTION 2.6.2 above) relating to the election of Directors of the
Company shall not be considered an Incumbent Director.

                                       3
<PAGE>

      2.18  NON-EMPLOYEE DIRECTOR. "Non-Employee Director" shall be defined as
it is defined in Rule 16b-3.

      2.19  NONQUALIFIED OPTION. "Nonqualified Option" means an Option which is
not designated as an Incentive Option by the Administrator.

      2.20  OPTION. "Option" means a stock option granted pursuant to the Plan
and shall include Reload Options. All Options granted hereunder shall be
evidenced by a written Stock Option Agreement.

      2.21  OPTIONED STOCK. "Optioned Stock" means the Common Stock and other
securities subject to an Option.

      2.22  OPTIONEE. "Optionee" means an employee of the Company or any of its
Subsidiaries who receives an Option.

      2.23  PARENT. "Parent" means a "parent corporation," whether now or
hereafter existing, as defined in Section 424(e) of the Code.

      2.24  PARTICIPANT. "Participant" means any Optionee and Plan Stockholder
who has received an Award under this Plan.

      2.25  PLAN. "Plan" means this 2002 Stock Plan.

      2.26  PLAN STOCK. "Plan Stock" means Common Stock awarded under this Plan.

      2.27  PLAN STOCKHOLDER. "Plan Stockholder" means an employee of the
Company or any of its Subsidiaries granted an award of Plan Stock under this
Plan.

      2.28  STOCK AGREEMENT. "Stock Agreement" means a written agreement between
the Company and the Plan Stockholder evidencing the terms and restrictions
applying to the award of the Plan Stock. Each Stock Agreement is subject to the
terms and conditions of the Plan. The terms and provisions of each Stock
Agreement need not be the same.

      2.29  RULE 16b-3. "Rule 16b-3" means Rule 16b-3 promulgated under the
Exchange Act or any successor to Rule 16b-3 in effect at the time in question.

      2.30  SECTION 16(b). "Section 16(b)" means Section 16(b) of the Exchange
Act.

      2.31  STOCK OPTION AGREEMENT. "Stock Option Agreement" means a written
agreement between the Company and an Optionee evidencing the terms and
conditions of an individual Option grant. Each Option Agreement is subject to
the terms and conditions of the Plan. The terms and provisions of each Option
Agreement need not be the same.

      2.32  SUBSIDIARY. "Subsidiary" means a "subsidiary corporation," whether
now or hereafter existing, as defined as Section 424(f) of the Code.

                                       4
<PAGE>

      2.33  TERMINATION OF EMPLOYMENT. "Termination of Employment" means the
date on which the employee-employer relationship between the Optionee or Plan
Stockholder and the Company is terminated for any reason, including, but limited
not to, a termination by resignation, discharge, death, disability or
retirement; but excluding (a) terminations where there is a simultaneous
reemployment or continuing employment of an Optionee or Plan Stockholder by the
Parent or a Subsidiary of the Company and (b) at the discretion of the
Administrator, terminations which result in a temporary severance of the
employee-employer relationship. With respect to Incentive Options, a leave of
absence or other change in the employee-employer relationship shall constitute a
Termination of Employment if, and to the extent that, such leave of absence or
other change interrupts employment for the purposes of Section 422(a)(2) of the
Code. The Administrator shall determine the effect of all matters and questions
relating to a Termination of Employment for purposes of the Plan, including, but
limited not to, the question of whether a Termination of Employment was for
cause, and all questions of whether particular leaves of absence constitute
Terminations of Employment. Notwithstanding any other provision of this Plan,
the Company has an absolute and unrestricted right to terminate an Employee's
employment at any time for any reason whatsoever, with or without cause, except
to the extent expressly provided in a separate writing between the Company and
the employee.

3.    RESERVE OF SHARES

      3.1   RESERVE. Subject to the provisions of SECTION 3.2 below, the maximum
aggregate number of shares of Common Stock reserved for issuance upon the
exercise of Options and other Awards granted under the Plan is One Million Five
Hundred Thousand (1,500,000) shares of authorized but unissued shares of Common
Stock of the Company. No more than the total number of shares held in this
Reserve shall be issued under the Plan pursuant to the exercise of Incentive
Options and Nonqualified Options in the aggregate.

      3.2   ADJUSTMENTS IN RESERVE. If the outstanding shares of Common Stock
are increased or decreased, or are changed into or exchanged for a different
number or kind of shares or other securities, as a result of the occurrence of
an event described in SECTION 11.1 or SECTION 11.2, below, then and in such
event, appropriate adjustments shall be made in the number and/or kind of shares
or other securities for which Awards may thereafter be granted under this Plan.
In the event that, prior to the end of the term of the Plan, any outstanding
Option under the Plan expires or is terminated without exercise, or with only
partial exercise, or the Company repurchases from any Plan Stockholder any
unvested Plan Stock, the shares allocable to the unexercised portion of any such
Option and the repurchased shares of unvested Plan Stock shall be added back
into the Reserve and may again be subject to the grant of an Award under the
Plan.

4.    ELIGIBILITY

      4.1   GENERAL ELIGIBILITY. Full-time salaried employees of the Company and
any of its Subsidiaries, who shall, in the judgment of the Administrator, be
qualified by position, training, or ability to contribute substantially to the
success of the Company and its Subsidiaries, shall be eligible to participate in
the Plan and to receive Awards under the Plan. The number of shares allocable to
any person by means of an Award under this Plan is to be reasonable, as
determined by the Administrator, in relation to the purposes of the Plan and the
needs and capabilities of the Company. Notwithstanding anything in this Plan to
the contrary, no Award may be granted to any employee owning more than ten
percent (10%) of the voting power of all classes of stock of the Company or any
of its Subsidiaries.

                                       5
<PAGE>

      4.2   LIMITATION. No employee of the Company or any of its Subsidiaries
shall be entitled to receive the grant of any Award under this Plan solely by
reason of his or her employment or continued employment. The grant of any Award
under this Plan to any employee of the Company or any of its Subsidiaries shall
not entitle such employee to receive the grant of any other Award under this
Plan.

5.    TYPE OF AWARDS

      5.1   GRANT OF OPTIONS.

            5.1.1     EFFECTIVE DATE OF OPTION GRANT. The grant of an Option
pursuant to this Plan shall be deemed to have occurred on the latest of: (a) the
date the Administrator announces the grant of the Option; or (b) such later date
designated by the Administrator or set forth in the Stock Option Agreement.

            5.1.2     DETERMINATION OF GRANTS.

                      A.    The Administrator may from time to time, in its
            absolute discretion:

                            (i)   Determine which employees (including
            employees, who have previously received Options or other Awards
            under this Plan) are to be granted Options;

                            (ii)  Determine the number of shares to be subject
            to Options granted to any employee;

                            (iii) Determine whether such Options are to be
            Incentive Options or Nonqualified Options; and

                            (iv)  Determine the other terms and conditions of
            such Options consistent with this Plan.

                      B.    Upon the selection of an employee to be granted an
      Option, the Administrator shall instruct the Secretary of the Company to
      issue the Option and may impose such conditions on the grant of the Option
      as the Administrator deems appropriate.

                      C.    An Incentive Option granted under this Plan may not
      be modified by the Administrator to disqualify such Option from treatment
      as an "incentive stock option" under Section 422 of the Code without the
      consent of the Optionee.

            5.1.3     OTHER AWARDS. Options may be granted either alone, in
addition to, or in tandem with other Awards granted under the Plan and/or cash
awards made outside of the Plan.

            5.1.4     STOCK OPTION AGREEMENTS. Each Option granted hereunder
shall be evidenced by a written Stock Option Agreement.

      5.2   AWARD OF PLAN STOCK.

            5.2.1     EFFECTIVE DATE OF AWARD. The award of Plan Stock pursuant
to this Plan shall be

                                       6
<PAGE>

deemed to have occurred on the latest of: (a) the date the Administrator
announces the award of the Plan Stock; or (b) such later date designated by the
Administrator or set forth in the Stock Agreement.

            5.2.2     DETERMINATION OF AWARDS.

                      A.    The Administrator may from time to time, in its
            absolute discretion:

                            (i)   Determine which employees (including employees
            who have previously received other Awards under this Plan) are to be
            awarded Plan Stock;

                            (ii)  Determine the purchase price, if any, payable
            for the Plan Stock;

                            (iii) Determine the period, if any, over which the
            Plan Stockholder's interest in the Plan Stock shall vest; provided
            that such period shall not be longer than five (5) years and at
            least twenty percent (20%) of the interest shall vest on each
            anniversary of the date of issuance of the Plan Stock; provided
            further that the Administrator may provide in any Stock Agreement
            that the Plan Stock shall be fully vested on the occurrence of a
            Change in Control; and

                            (iv)  Determine the other terms and conditions,
            consistent with this Plan, applicable to the award of the Plan
            Stock.

                      B.    The Administrator shall establish the purchase
      price, if any, and the form of payment of the purchase price for the Plan
      Stock; provided that such purchase price shall be no less than the then
      par value of the Plan Stock.

                      C.    Upon the selection of an employee to be awarded Plan
      Stock, the Administrator shall instruct the Secretary of the Company to
      issue such Plan Stock to the employee and may impose such conditions on
      the issuance of such Plan Stock as it deems appropriate.

                      D.    Plan Stock may be issued either alone, in addition
      to, or in tandem with other Awards granted under the Plan and/or cash
      awards made outside of the Plan.

            5.2.3     OTHER AWARDS. Plan Stock may be issued either alone, in
addition to, or in tandem with other Awards granted under the Plan and/or cash
awards made outside of the Plan.

            5.2.4     STOCK AGREEMENTS. Each award of Plan Stock shall be
evidenced by a written Stock Agreement.

      5.3   OTHER STOCK AWARDS. The Administrator may designate whether any
grant of Plan Stock is intended to be "performance-based compensation" as that
term is used in Section 162(m) of the Code. Any awards of Plan Stock designated
as intended to be "performance-based compensation" shall be conditioned on the
achievement of one or more performance measures established by the
Administrator. For awards of Plan Stock intended to be "performance-based
compensation," the grant of the Plan Stock and the establishment of the
performance measures shall be made during the period required under Section
162(m) of the Code. Any award of Plan Stock as performance-based compensation
shall be evidenced by a written Stock Agreement.

                                       7
<PAGE>

6.    TERMS OF OPTIONS.

      6.1   OPTION EXERCISE PRICE.

            6.1.1     ESTABLISHMENT OF EXERCISE PRICE. The price per share
required to be paid upon exercise of any Option granted hereunder, whether an
Incentive Option or a Nonqualified Option, shall be 100% of the Fair Market
Value per share, of the Common Stock at the time of the grant of the Option.

            6.1.2     PAYMENT OF EXERCISE PRICE. The exercise price shall be
payable either (a) in cash in immediately available funds, or (b) with stock of
the Company valued at its then Fair Market Value. In the event that the exercise
price is paid, whether in whole or in part, through the tender of shares of
Common Stock already owned by the Optionee, then the Option must be exercised
for a minimum of at least 100 shares, or the total number of shares subject to
the outstanding Option being exercised, if less than 100 shares.

            6.1.3     EXCHANGE OF OPTIONS. Notwithstanding the foregoing, in the
event that any Option is granted under this Plan in exchange for the surrender
by the Optionee of another Option, the Administrator, in its discretion, may
establish the exercise price under the new Option at the same price as provided
in the Option which is surrendered, but only to the extent of the number of
shares then subject to the Option which is surrendered.

      6.2   OPTION PERIOD. The term of any Incentive Option granted pursuant to
this Plan shall not exceed five (5) years. The term of any Nonqualified Option
shall not exceed ten (10) years.

      6.3   LIMITATION ON INCENTIVE OPTIONS. The aggregate Fair Market Value, as
determined by the Administrator, of the shares of Common Stock with respect to
which an Incentive Option granted under this Plan is exercisable for the first
time by an Optionee during any calendar year shall not exceed the difference
between (a) One Hundred Thousand Dollars ($100,000) and (b) the sum of the Fair
Market Value, as determined by the Administrator, as of the time the Incentive
Options were granted, of the shares of Common Stock covered by all Incentive
Options which were granted to the Optionee under this Plan and all other
incentive stock option plans of the Company and which are exercisable for the
first time by the Optionee during such calendar year. If an Incentive Option is
granted pursuant to which the aggregate Fair Market Value of shares with respect
to which it first becomes exercisable in any calendar year exceeds such $100,000
limitation, the portion of such Option which is in excess of the $100,000
limitation shall be treated as a Nonqualified Option pursuant to Section
422(d)(1) of the Code. This SECTION 6.3 is intended to comply with the
provisions of Section 422 of the Code and shall be interpreted so as to comply
with the provisions of such Section of the Code. Nothing in this SECTION 6.3
shall obligate the Company to grant Options or any additional Options to any
employee under this Plan or any other stock option plan here or hereafter
adopted by the Company by reason of the treatment of any Options as Nonqualified
Options under this SECTION 6.3.

      6.4   EXERCISE; VESTING.

            6.4.1     VESTING SCHEDULE.

                      A.    Options granted under this Plan (whether Incentive
      Options or

                                       8
<PAGE>

      Nonqualified Options) shall become exercisable ("vest") in accordance with
      such schedule as the Administrator, in its sole discretion, may deem
      appropriate in any particular case.

                      B.    If the Administrator does not specify a different
      vesting schedule, Options shall vest as follows: Subject to the provisions
      of SECTION 6.4.1C below, the aggregate number of shares covered by the
      Option shall be divided by the number of years included in the term of the
      Option (each such year being hereinafter called an "Option Year"). The
      Optionee shall become entitled to purchase the number of shares of Common
      Stock resulting from the foregoing division as follows: (i) the first
      installment of shares shall become exercisable six (6) months after the
      date of the grant of the Option; and (ii) an additional installment shall
      become exercisable on the first day of each Option Year that begins
      thereafter.

                      C.    Notwithstanding anything in the Plan to the
      contrary, (a) Options granted under this Plan shall vest and become
      exercisable over a period no longer than five (5) years and at a rate not
      less than twenty percent (20%) per year, and (b) no Option granted under
      this Plan shall be exercisable for at least six (6) months following the
      date of the grant of the Option.

                      D.    The Administrator shall set forth the vesting
      schedule in the Stock Option Agreement.

            6.4.2     ACCELERATION ON CHANGE OF CONTROL. Upon the occurrence of
a Change of Control, all unexercised Options then outstanding shall be and
immediately become fully vested and exercisable effective as the effective date
of such Change of Control. If any Options or portion thereof originally
designated as Incentive Options would cease to qualify as incentive stock
options under the Code as a result of the acceleration of the vesting and
exercisability of such Options in accordance with the preceding sentence, then
such Incentive Options or portion thereof shall be redesignated as Nonqualified
Options. The Company shall use its reasonable efforts to promptly notify each
Optionee upon the occurrence of a Change of Control; provided that neither the
Company nor any member of the Board of Directors or the Committee shall have any
liability to any Optionee solely by reason of any delay or failure to give
notice of the occurrence of a Change of Control.

      6.5   EXPIRATION OF OPTIONS.

            6.5.1     TERMINATION EVENTS. Notwithstanding any other provisions
of this Plan or the terms of any Stock Option Agreement to the contrary, Options
granted under this Plan shall terminate in accordance with the following
provisions.

                      A.    TERMINATION WITH CAUSE. The Option shall terminate
      immediately upon the termination of the Optionee's employment with cause,
      as determined by the Administrator, provided that the Optionee may, within
      thirty (30) days after the date of the termination (but in no event after
      the date of expiration of the Option specified in the Stock Option
      Agreement), exercise the Option as to those shares with respect to which
      the Option was vested as of the date of termination of employment.

                      B.    TERMINATION WITHOUT CAUSE. The Option shall
      terminate immediately upon termination of the Optionee's employment
      without cause, as determined by the Administrator, provided that the
      Optionee may, within three (3) months after the date of the

                                       9
<PAGE>

      termination (but in no event after the date of expiration of the Option
      specified in the Stock Option Agreement) exercise the Option as to those
      shares with respect to which the Option was vested as of the date of
      termination of employment.

                      C.    DEATH OR DISABILITY. The Option shall terminate
      immediately upon the death or permanent disability (as defined in the
      Company's Incentive and Investment Profit Sharing Plan and Trust) of the
      Optionee while in the employ of the Company or any of its Subsidiaries;
      provided that the Optionee may, within twelve (12) months of the date of
      his/her death or disability (but in no event after the date of expiration
      of the Option specified in the Stock Option Agreement) exercise the Option
      as to those shares with respect to which the Option was vested as of the
      date of the Optionee's death or permanent disability.

                      D.    RETIREMENT (NONQUALIFIED OPTIONS). A Nonqualified
      Option shall terminate immediately upon retirement of the Optionee in
      accordance with the Company's retirement policy, provided that the
      Optionee may, within twelve (12) months after the date of retirement (but
      in no event after the date of expiration of the Option specified in the
      Stock Option Agreement) exercise the Nonqualified Option as to those
      shares with respect to which the Nonqualified Option was vested as of the
      date on which the Optionee retired.

            6.5.2     TRANSFER TO AND FROM SUBSIDIARIES. The transfer of an
Optionee's employment from the Company to any Subsidiary or Parent, from a
Subsidiary or Parent to the Company or among any of the Company Subsidiaries
shall not be considered the termination of the Optionee's employment for
purposes of SECTION 6.5.1, above.

      6.6   METHOD OF EXERCISE. Options granted pursuant to this Plan shall be
exercised by delivery to the Administrator of a written notice specifying (a)
the number of shares which an Optionee (or his or her personal representative)
then desires to purchase, (b) the name or names in which Optionee (or his or her
personal representative) desires to have the shares issued, and (c) whether the
Options being exercised are Incentive Options or Nonqualified Options. Said
notice shall be accompanied by full payment of the aggregate exercise price of
such Options immediately available funds (or stock of the Company). The Company
or its designated agent shall, as soon as practicable thereafter, issue and
deliver to the Optionee and/or any other persons designated in the notice of
exercise, the necessary certificate or certificates evidencing the number of
shares of Optioned Stock purchased (excluding any fractional shares), in the
name of the Optionee and/or in the name of the other persons designated in the
notice of exercise. The Optionee may designate in the notice of exercise that
some or all of the shares to be issued upon such exercise shall be issued in the
name of Optionee's spouse, the trustee of a revocable trust in which Optionee
and his or her spouse are the sole primary beneficiaries, Optionee's prior
spouse, or any combination of the foregoing. Notwithstanding anything herein to
the contrary, Optionee may not designate in the notice of exercise that any of
the shares of Optioned Stock shall be issued to Optionee's prior spouse unless
such issuance is to be made pursuant to a domestic relations order as defined in
the Code or Title I of the Employee Income Retirement Security Act, or the rules
thereunder. The Administrator may rely on a representation of the person
exercising the Option, or such other evidence as the Administrator deems
appropriate, for purposes of determining the propriety of the exercise of any
Option and the compliance of such exercise with the terms of this Plan and any
applicable Stock Option Agreement. The Administrator shall have no obligation to
independently investigate the propriety of the exercise of any Option or the
compliance of such exercise with the terms of this Plan or any applicable Stock
Option Agreement.

                                       10
<PAGE>

      6.7   RELOAD FEATURES.

            6.7.1     GRANT OF RELOAD OPTIONS. Whenever the holder of any Option
(the "Original Option") outstanding under this Plan (whether an Incentive Option
or a Nonqualified Option, and including any Reload Options granted under the
provisions of this SECTION 6.7 or SECTION 8 below) exercises the Original Option
and makes payment of the exercise price by tendering shares of the Common Stock
of the Company previously held by him or her, then the holder of that Option
shall be entitled to receive and the Company shall grant to the holder a new
Option (the "Reload Option") for that number of shares of the Common Stock which
is equal to the number of shares of Common Stock tendered by the Optionee in
payment of the exercise price for the Original Option. All such Reload Options
granted hereunder shall be on the following terms and conditions.

                      A.    EXERCISE PRICE. The exercise price per share shall
      be an amount equal to the Fair Market Value per share of the Common Stock,
      as of the date of exercise of the Original Option, as determined by the
      Administrator.

                      B.    EXPIRATION DATE. The term of the Reload Option
      shall expire on the later of (i) the expiration of the term of the
      Original Option or (ii) five (5) years from the date of the grant of the
      Reload Option.

                      C.    VESTING PERIOD. Any Reload Option granted under
      this SECTION 6.7 shall "vest" and first become exercisable one (1) year
      following the date of exercise of the Original Option.

                      D.    OTHER TERMS. All other terms of Reload Options
      granted hereunder shall be identical to the terms and conditions of the
      Original Option, the exercise of which gives rise to the grant of the
      Reload Option. Further, subject to the limitations of SECTION 6.3 above,
      the character of the Reload Option shall be the same as the character of
      the Original Option, namely if the Original Option is an Incentive Option,
      the Reload Option shall be an Incentive Option; and if the Original Option
      is a Nonqualified Option, the Reload Option shall also be a Nonqualified
      Option.

            6.7.2     RESTRICTIONS ON RELOAD OPTIONS. Any and all Reload Options
granted pursuant to this SECTION 6.7 (or SECTION 8, below) shall be subject to
the following conditions and restrictions.

                      A.    NO RELOAD ON EXISTING INCENTIVE OPTIONS.
      Notwithstanding SECTION 6.7.1, above, no Reload Option shall be granted
      pursuant to SECTION 6.7.3, below, upon the exercise of any Incentive
      Option which is outstanding as of the date as of which this Plan was
      originally adopted by the Board of Directors.

                      B.    HOLDING PERIOD OF SHARES TENDERED. No Reload Option
      shall be granted pursuant to SECTION 6.7.1, above, unless the shares
      tendered upon exercise of the Original Option in payment therefore have
      been held by the Optionee for a period of more than six (6) months prior
      to the exercise of the Original Option.

                      C.    HOLDING PERIOD OF ORIGINAL OPTION SHARES. If the
      shares of Common

                                       11
<PAGE>

      Stock of the Company which are issued upon exercise of the Original Option
      are sold within one (1) year following the exercise of the Original
      Option, then the Reload Option shall immediately and automatically
      terminate.

                      D.    EXCEPTION. The holding period restrictions set forth
      in SECTIONs 6.7.2B and 6.7.2C above shall not apply to an Optionee's (i)
      transfer of shares of Common Stock to the Company in payment of all or any
      portion of the exercise price upon exercise of an Option, whether an
      Original Option or a Reload Option, or (ii) satisfaction of his
      withholding obligation, if any, pursuant to SECTION 8 below by the
      withholding of shares that would otherwise be issued as a result of the
      exercise of an Option.

            6.7.3     "GRANDFATHER" PROVISIONS. The Company acknowledges (a)
that there are outstanding options granted to employees under the Company's (i)
prior employee Stock Option Plan, which plan expired in calendar year 1993, and
(ii) prior Amended and Restated Restricted Stock Plan, which plan expired in
calendar year 2002, and (b) that said plans contained "reload" features similar
to those contained herein. To the extent that any such outstanding options under
said Stock Option Plan or said Amended and Restated Restricted Stock Plan are
exercised after the expiration of those plans, the Administrator may, in its
sole discretion and subject to the restrictions of SECTION 6.7.2 above, grant to
any such option holders a Reload Option under SECTION 6.7.1 above.

      6.8   TRANSFERABILITY OF OPTIONS.

            6.8.1     RESTRICTION ON TRANSFER. Except as specifically set forth
in SECTION 6.8.2 hereof, no Option or Reload Option may be sold, pledged,
assigned, hypothecated, transferred, or otherwise disposed of in any manner,
other than by will or the laws of descent and distribution.

            6.8.2     LIMITED TRANSFERABILITY. Notwithstanding anything in
SECTION 6.8.1 above to the contrary, a Stock Option Agreement may provide that
an Optionee may transfer all or a portion of any Nonqualified Option or
Nonqualified Reload Option in accordance with provisions of this SECTION 6.8.2.
If a Stock Option Agreement permits the transfer of any Nonqualified Option or
Nonqualified Reload Option, any transfer that does not comply with all of the
provisions of this SECTION 6.8.2 and the Stock Option Agreement shall be null
and void ab initio. The provisions of the Stock Option Agreements dealing with
the transferability of the Options need not be identical for all Options and the
provision for transferability with respect to one Option shall not require the
provision for transferability with respect to any other Option. (For purposes of
this SECTION 6.8.2, Nonqualified Options and Nonqualified Reload Options which
may be transferred are referred to as "Transferable Option".)

                      A.    PERMITTED TRANSFEREES. A Transferable Option may be
      transferred by the Optionee only to one or more of the following: (i) the
      Optionee's spouse, parents and lineal descendants, including adopted
      children (the "Immediate Family Members"); (ii) a trust established by the
      Optionee and with respect to which all beneficial interests are held by
      one or more of the Optionee, the Immediate Family Members, and a
      tax-exempt charitable organization which has only a contingent residual
      interest in the trust; (iii) a partnership or limited liability company
      established by the Optionee and in which all beneficial interests are held
      by one or more of the Optionee and the Immediate Family Members; and (iv)
      such other persons and entities as the Administrator may specifically
      approve in writing after written notice from the Optionee. The
      Administrator may require as a condition to the transfer of any
      Transferable Option under this

                                       12
<PAGE>

      SECTION 6.8.2 that the transferee provide to the Administrator reasonable
      evidence that the proposed transferee is described in one of the foregoing
      clauses.

                      B.    PERMITTED TRANSFERS. Any transfer of a Transferable
      Option under this SECTION 6.8.2 must be either a Donative Transfer, a
      transfer to a partnership or limited liability company described in clause
      (iii) of SECTION 6.8.2A above, pursuant to which the Optionee receives
      only his or her interest in the partnership or limited liability company,
      or a transfer specifically approved in writing by the Administrator after
      written notice from the Optionee.

                      C.    MINIMUM TRANSFER. Any transfer of a Transferable
      Option must be with respect to not less than one hundred (100) shares of
      Optioned Stock and may be made only in whole number multiples of one
      hundred (100) shares of Optioned Stock.

                      D.    NOTICE TO THE COMPANY. The Optionee shall give the
      Administrator at least ten (10) days prior written notice of any proposed
      transfer of a Transferable Option pursuant to this SECTION 6.8.2 and shall
      include with such notice:

                            (i)    The name and address of the proposed
            transferee and a statement of the basis on which the proposed
            transferee is a permitted transferee under SECTION 6.8.2A hereof;
            and

                            (ii)   The proposed transferee's written agreement
            to accept the Transferable Option and any shares of Common Stock
            acquired on exercise of the Transferable Option subject to all of
            the terms and conditions of this Plan and the applicable Stock
            Option Agreement, including the provisions dealing with the
            termination of the Transferable Option on the death or disability of
            the Optionee or the termination of the Optionee's employment with
            the Company or any of its Subsidiaries.

                      E.    NO FURTHER TRANSFER. Notwithstanding anything in
      this Plan or any Stock Option Agreement to the contrary, a transferee of
      any Transferable Option shall not have the right to further transfer all
      or any portion of the Transferable Option, other than (i) by will or the
      laws of descent and distribution, or (ii), if the transferee is a trust,
      pursuant to the terms of the trust agreement by reason of the death of any
      settlor.

                      F.    NO TRANSFER OF INCENTIVE OPTIONS. Notwithstanding
      anything in this Plan or any Stock Option Agreement to the contrary, an
      Optionee may not transfer any Incentive Option or Reload Option granted
      with respect to an Incentive Option other than by will or the laws of
      descent and distribution.

                      G.    FURTHER ACTS. The Company may require as a condition
      to the transfer of any Transferable Option such additional information and
      agreements from the Optionee and the proposed transferee as the Company
      may deem necessary or beneficial for purposes of complying with this
      Section or any Applicable Law. The Administrator may delay the effective
      date of any transfer of a Transferable Option beyond the 10-day period
      described in SECTION 6.8.2D above so as to provide the Administrator
      reasonable time to resolve all questions about and conditions to the
      transfer of the Transferable Option.

                                       13
<PAGE>

                      H.    DISCLAIMER. The Company's acceptance of any transfer
      of a Transferable Option shall not be considered legal or tax advice to
      the Optionee or the proposed transferee as to their compliance with any
      Applicable Law or the legal or tax consequences of such transfer or the
      subsequent exercise of the Transferable Option or the sale or exchange of
      any of the shares of Optioned Stock acquired on exercise of the
      Transferable Option.

            6.8.3     NO STOCKHOLDER RIGHTS. An Option holder shall not be
deemed to be a stockholder of the Company with respect to Options unless and
until the shares of Optioned Stock covered by the Option shall have been issued
upon exercise thereof and are paid for in full.

            6.8.4     SUBSTITUTION OF OPTIONS. The Administrator may grant to an
Option holder, if he or she is otherwise eligible, additional Options under this
Plan or, with the consent of the Option holder, grant new Options under this
Plan in lieu of any outstanding Options for a number of shares, at an exercise
price and for a term which in any respect is greater or lesser than that of the
earlier Option, subject to those limitations as to Options otherwise set forth
herein.

            6.8.5     STOCK OPTION AGREEMENTS. The Stock Option Agreements
entered into hereunder shall contain such other provisions, including, without
limitation, restrictions upon the exercise of an Option, as the Administrator
shall deem advisable. Incentive Option Agreements shall contain such limitations
and restrictions upon the exercise of the Incentive Options as shall be
necessary in order that such Incentive Options will constitute an "incentive
stock option" as defined in Section 422 of the Code or to conform to any change
in the law. The terms and provisions of the Stock Option Agreements need not be
identical for all Options granted under the Plan.

7.    TERMS OF PLAN STOCK AWARDS.

      7.1   STOCK AGREEMENT. Plan Stock shall be issued only pursuant to a Stock
Agreement, which shall be executed by the selected employee and which shall
contain such terms and conditions as the Administrator shall determine
consistent with this Plan.

      7.2   CONTINUED SERVICES. As consideration for the issuance of the Plan
Stock, in addition to payment of any purchase price, the Plan Stockholder shall
agree to remain in the employ of the Company for a period of at least one (1)
year (or such shorter period as may be fixed by the Administrator) after the
Plan Stock is issued. Nothing in this Plan or in any Stock Agreement shall
confer on any Plan Stockholder any right to continue in the employ of the
Company for any period or any particular period or shall interfere with or
restrict in any way the rights of the Company to discharge any Plan Stockholder
at any time for any reason whatsoever, with or without cause.

      7.3   RIGHTS AS STOCKHOLDERS. Upon delivery of the shares of Plan Stock to
the Plan Stockholder, the Plan Stockholder shall have, unless otherwise provided
by the Administrator, all the rights of a stockholder with respect to said
shares, subject to the restrictions in the Stock Agreement, including the right
to receive all dividends and other distributions paid or made with respect to
the Plan Stock.

      7.4   RESTRICTION ON TRANSFER. Notwithstanding anything in this Plan or
any Stock Agreement to the contrary, no Plan Stockholder may sell or otherwise
transfer, whether or not for value, any of the Plan Stock prior to six (6)
months after the date of the award of the Plan Stock.

                                       14
<PAGE>

      7.5   RESTRICTION. All shares of Plan Stock issued under this Plan
(including any shares of Common Stock and other securities issued with respect
to the shares of Plan Stock as a result of stock dividends, stock splits or
similar changes in the capital structure of the Company) shall be subject to
such restrictions as the Administrator shall provide, which restrictions may
include, without limitation, restrictions concerning voting rights,
transferability of the Plan Stock and restrictions based on duration of
employment with the Company or any of its Subsidiaries, the performance of the
Company or any of its Subsidiaries and the Plan Stockholder's performance;
provided that the Administrator may, on such terms and conditions as it may
determine to be appropriate, remove any or all of such restrictions at any time
and from time to time. The restrictions, if any, imposed by the Administrator
under this Section need not be identical for all Plan Stock and the imposition
of any restrictions with respect to any Plan Stock shall not require the
imposition of the same or any other restrictions with respect to any other Plan
Stock.

      7.6   REPURCHASE OF UNVESTED PLAN STOCK. Each Stock Agreement shall
provide that the Company shall have the right to repurchase from the Plan
Stockholder the unvested Plan Stock upon a Termination of Employment at a cash
price per share equal to the purchase price paid by the Plan Stockholder for
such Plan Stock (as such price per share may be adjusted to reflect stock
splits, stock dividends, recapitalization and other similar changes in the
capital structure of the Company); provided that provision may be made that no
such right of repurchase shall exist in the event of a Termination of Employment
without cause or following a Change In Control.

      7.7   REPURCHASE OF VESTED PLAN STOCK. In the discretion of the
Administrator, the Stock Agreement may provide that the Company shall have the
right to repurchase the vested Plan Stock upon a Termination of Employment at a
cash price per share equal to the then Fair Market Value of the Common Stock;
provided that provision may be made that no such right of repurchase shall exist
in the event of a Termination of Employment without cause or following a Change
In Control.

      7.8   LEGEND. The Administrator shall cause one or more legends to be
placed on certificates representing shares of Plan Stock that are subject to
restrictions under Stock Agreements, which legends shall make appropriate
reference to the applicable restrictions. In lieu of issuing shares of Plan
Stock which are unvested, the Administrator may elect to issue such shares of
Plan Stock through journal entry and to deliver the stock certificates for such
shares only at such time as the Plan Stockholder's interest in such shares of
Plan Stock has become vested.

8.    TAX WITHHOLDING

      To the extent that the exercise of any Option or the issuance of any Plan
Stock gives rise to an obligation on the part of the Company or any of its
Subsidiaries to withhold any amount from the Participant's wages, the Company
shall do so on such terms and in accordance with such procedures as may be
required under applicable law. At the election of the Participant, withholding
may be made through the surrender of shares of the Common Stock or through the
withholding of shares of Common Stock which would otherwise be issued as a
result of the exercise or as Plan Stock. If withholding with respect to the
exercise of an Option is made through the surrender or withholding of shares of
the Common Stock, the Administrator, in its sole discretion, may grant Reload
Option(s), on the terms specified in SECTION 6.7, above, for the number of
shares so surrendered or withheld.

9.    SECURITIES COMPLIANCE

                                       15
<PAGE>

      Awards granted pursuant to this Plan shall be subject to the requirement
that if at any time the Administrator shall determine, in its discretion, that
the listing, registration, or qualification of the shares covered thereby is
required upon any securities exchange or under any state or federal law, or the
consent or approval of any governmental regulatory authority is necessary or
desirable as a condition of the grantor exercise of such Award, the grant or
exercise of the Award may be delayed until such listing, registration,
qualification, consent or approval shall have been effected or obtained free of
any conditions not acceptable to the Administrator.

10.   ADMINISTRATION

      10.1  PROCEDURE. The Plan shall be administered by the Board of Directors
or the Committee. The Committee shall consist of not less than two (2) Directors
all of whom shall be Non-Employee Directors of the Company within the meaning of
Rule 16b-3. Once appointed, the Committee shall continue to administer the Plan
until otherwise directed by the Board of Directors. The Board of Directors may
increase the size of the Committee and may appoint additional members, remove
members (with or without cause) and substitute new members, fill vacancies
(however caused), and remove all members of the Committee and thereafter
directly administer the Plan, all to the extent permitted by Applicable Law. No
member of the Board of Directors or the Committee shall be liable for any action
or determination undertaken or made in good faith with respect to the Plan or
any agreement executed pursuant to the Plan.

      10.2  POWERS OF THE ADMINISTRATOR. Subject to the provisions of the Plan,
the Administrator shall have the authority, in its discretion, to:

            10.2.1    Select the employees to whom Options and Plan Stock may be
granted or awarded hereunder;

            10.2.2    Determine whether and to what extent Options and Plan
Stock are granted or awarded hereunder;

            10.2.3    Determine the number of shares of Common Stock to be
covered by Options and Plan Stock granted or awarded hereunder;

            10.2.4    Determine the Fair Market Value of the Common Stock in
accordance with SECTION 2.15 hereof;

            10.2.5    Approve forms of the Option Agreements and the Stock
Agreements, which Agreements need not be identical;

            10.2.6    Determine the terms and conditions, not inconsistent with
the terms of this Plan, of any award granted hereunder, including, but not
limited to, the exercise price, the time or times when Options or Plan Stock may
be exercised or become vested (which may be based on performance criteria), any
vesting acceleration or waiver of forfeiture restrictions, and any restriction
or limitation regarding any Option or Plan Stock or the shares of Common Stock
relating thereto, based in each case on such factors as the Administrator, in
its sole discretion, shall determine;

            10.2.7    Construe and interpret the terms of the Plan, Awards
granted under the Plan and Award Agreements;

                                       16
<PAGE>

            10.2.8    Prescribe, amend and rescind rules and regulations
relating to the Plan;

            10.2.9    Modify or amend each Option or Plan Stock;

            10.2.10   Authorize any person to execute on behalf of the Company
any instrument required to effect the grant of an Option or the award of Plan
Stock previously authorized by the Administrator;

            10.2.11   Determine the terms and restrictions applicable to Options
and any Plan Stock; and

            10.2.12   Make all other determinations deemed necessary or
advisable for administering the Plan.

      10.3  COMMITTEE PROCEDURE. If the Committee acts as the Administrator, the
Administrator shall act pursuant to the vote or written consent of a majority of
its members, and minutes shall be kept of all of its meetings and copies thereof
shall be provided to the Board of Directors. Subject to the provisions of the
Plan and the directions of the Board of Directors, the Committee may establish
and follow such other rules and regulations for the conduct of its business as
it may deem advisable.

      10.4  PROFESSIONAL ASSISTANCE; GOOD FAITH ACTIONS. The Administrator may,
with the approval of the Board of Directors, employ and rely on the advice of
attorneys, consultants, accountants, appraisers, brokers, or other persons. All
actions taken and all interpretations and determinations made by the
Administrator in good faith shall be final and binding upon all Optionees, Plan
Stockholders, the Company and all other interested persons. No member of the
Administrator or the Board of Directors or any officer, employee or agent of the
Company shall be personally liable for any action, determination or
interpretation made by the Administrator in good faith with respect to this
Plan, any Options or Plan Stock granted or awarded under this Plan, or any
Option Agreement or Stock Agreement.

      10.5  INDEMNIFICATION. In addition to any other rights of indemnification
they may have, the Administrator and the members of the Administrator shall be
indemnified by the Company against reasonable expenses, including attorneys'
fees and costs, incurred in connection with the defense of any claim, action,
suit, or proceeding, or in connection with any appeal thereof, to which they or
any of them may be a party by reason of any action taken or failure to act under
or in connection with the Plan, any Option or Plan Stock granted or awarded
thereunder, or any Option Agreement or Stock Agreement, and against all amounts
paid by them in settlement thereof (provided such settlement is approved by
independent legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any action, suit, or proceeding; provided that the
foregoing indemnification shall not apply to matters as to which it shall be
adjudged in such action, suit, or proceeding that the Administrator or such
member is liable for gross negligence or willful misconduct in the performance
of his or her duties. The indemnification provided in this Section shall be
available only if, within sixty (60) days after institution of any such claim,
action, suit, or proceeding, the Administrator or the member thereof seeking
indemnification shall in writing offer the Company the opportunity, at its own
expense, to handle and defend such claim, action, suit or proceeding.

11.   ADJUSTMENT OF SHARES

                                       17
<PAGE>

      11.1  RECAPITALIZATION OF THE COMPANY. Except as otherwise provided
herein, appropriate and proportionate adjustments shall be made in the number
and class of shares subject to the Plan and to the Awards granted under the
Plan, and the exercise price of such Awards, in the event of a stock dividend
(but only on Common Stock), stock split, reverse stock split, recapitalization,
reorganization or like change in the capital structure of the Company. To the
extent that the foregoing adjustments relate to stock or securities of the
Company, such adjustments shall be made by the Administrator, the determination
of which in that respect shall be final, binding, and conclusive; provided that
no Incentive Option granted under the Plan shall be adjusted in a manner that
causes the Option to fail to continue to qualify as an incentive stock option
within the meaning of Section 422 of the Code.

      11.2  REORGANIZATION OR LIQUIDATION OF THE COMPANY.

            11.2.1    OPERATIVE EVENTS. In the event of (a) the complete
liquidation of the Company, (b) a merger, reorganization, or consolidation of
the Company with any other corporation (other than a Subsidiary of the Company)
in which the Company is not the surviving corporation, or (c) the sale of all or
substantially all of the Company's assets, any unexercised Options then
outstanding shall be deemed canceled as of the effective date of such event as
of the effective date of such event unless the surviving corporation in any such
merger, reorganization or consolidation or the acquiring corporation in any such
sale elects to assume the Options under the Plan or to issue substitute options
in place thereof. If any Options granted under the Plan would be canceled in
accordance with the foregoing, the Optionee shall have the right, exercisable
during a 10-day period ending on the fifth day prior to the effective date of
such liquidation, merger, reorganization, consolidation or sale, to exercise the
Optionee's Option in whole or in part without regard to any installment exercise
provisions in the Optionee's Stock Option Agreement. Notwithstanding anything in
this Plan or any Stock Option Agreement to the contrary, the Company shall not
be deemed to have been liquidated by reason of the merger or consolidation of
the Company with or into a Subsidiary of the Company in a transaction in which
the Company is not the surviving corporation. If any Options or portion thereof
originally designated as Incentive Options would cease to qualify as incentive
stock options under the Code as a result of the exercise of such Options in
accordance with the preceding sentence, then such Incentive Options or portion
thereof shall be redesignated as Nonqualified Options.

            11.2.2    NOTICE OF EVENT. The Company shall give each Optionee at
least thirty (30) days prior written notice of the anticipated effective date of
any such liquidation, merger, reorganization, consolidation or sale.
Notwithstanding anything in this Plan or in any Stock Option Agreement to the
contrary, (i) all Option exercises effected during the foregoing 10-day period
shall be deemed to be effective immediately prior to the closing of such
liquidation, merger, reorganization, consolidation or sale and (ii), if the
Company abandons or otherwise fails to close any such liquidation, merger,
reorganization, consolidation or sale, then (a) all exercises during the
foregoing 10-day period shall cease to be effective ab initio and (b) the
outstanding Options shall be exercisable as otherwise determined under the
applicable Stock Option Agreement and without consideration of this Section or
the corresponding provisions of any Stock Option Agreement.

12.   TERM; TERMINATION; AND AMENDMENT OF THE PLAN

      12.1  TERM OF PLAN. The term of this Plan shall begin as January 22, 2002,
and shall continue until January 21, 2012, unless terminated sooner in
accordance with the provisions of the Plan.

                                       18
<PAGE>

      12.2  APPROVAL OF STOCKHOLDERS; EFFECTIVE DATE. The Plan shall be
submitted for approval by the shareholders of the Company, which approval must
occur on or prior to December 31, 2002. In the event such shareholder approval
is not obtained on or before December 31, 2002, the Plan shall continue in full
force and effect but shall permit the grant of only Nonqualified Options and any
Incentive Options granted on or before December 31, 2002, shall remain
outstanding, but automatically shall be deemed to be Nonqualified Options.

      12.3  AMENDMENT AND TERMINATION OF THE PLAN.

            12.3.1    AMENDMENT AND TERMINATION.  The Board of Directors may at
any time amend, alter, suspend or terminate the Plan.

            12.3.2    STOCKHOLDER APPROVAL. The Company shall obtain stockholder
approval of any Plan amendment to the extent necessary to comply with Section
422 of the Code (or any successor rule or statute) or other Applicable Law,
including the requirements of any exchange or quotation system on which the
Common Stock is listed or quoted. Such stockholder approval, if required, shall
be obtained in such a manner and to such a degree as is required by the
Applicable Law.

            12.3.3    EFFECT OF AMENDMENT OR TERMINATION. No Award may be
granted during any suspension, or after termination, of this Plan. No amendment,
alteration, suspension or termination of the Plan shall impair the rights of any
Optionee or Plan Stockholder, unless mutually agreed otherwise between the
Optionee or the Plan Stockholder and the Administrator, which agreement must be
in writing and signed by the Optionee or the Plan Stockholder and the Company.

                                       19

<PAGE>

            12.3.4    LIMITS ON AMENDMENTS. This Plan may not, without approval
of the stockholders of the Company, be amended in any manner that will cause
Incentive Options issued under it to fail to meet the requirements of Incentive
Options as defined in Section 422 of the Code, or to change the maximum number
of shares which any one person may receive.

                                       20

<PAGE>

                            CERTIFICATE OF SECRETARY

      The undersigned, being the Assistant Corporate Secretary of the Company,
does hereby certify that the 2002 Stock Plan was adopted by the Board of
Directors of the Company at a duly called and held meeting of the Board of
Directors on January 22, 2002, and was duly approved by the stockholders of the
Company at a meeting duly held on April 23, 2002.

Dated: May 15, 2002                   /s/ Carol Kelleher
                                      ------------------------------------
                                      Carol Kelleher, Asst. Corporate Secretary

                                       21<PAGE>

                             PACIFIC CAPITAL BANCORP
                        RESTRICTED STOCK OPTION AGREEMENT

         This confirms the grant by Pacific Capital Bancorp (the "Company") of a
stock option to the Employee identified below ("Employee") on the terms and
conditions set forth below and of the Amended and Restated Restricted Stock Plan
effective January 22, 2002 (the "Plan"), the terms of which are incorporated
herein.

1.  NAME OF EMPLOYEE.
                     -----------------------------------

2.  DATE OF GRANT.
                  --------------------------------------

3.  NUMBER OF SHARES.             shares of Common Stock
                     -------------

4.  EXERCISE PRICE. $          per share.
                     ----------

5.  TYPE OF OPTION. For tax purposes, the Option is of the type indicated below:

                  Incentive Option
                                                     ----------
                  Non-Qualified Stock Option
                                                     ----------

6.   TERM OF OPTION. The term of the Option will begin as of the date of grant
set forth above and, unless sooner terminated in accordance with the terms of
the Plan, will expire at the end of the period specified below.

                  Five years from date of grant
                                                     ----------
                  Ten years from date of grant
                                                     ----------

7.   EXPIRATION. The Option is subject to termination prior to the expiration of
the term of the Option set forth above in the event of the termination of
Employee's employment with the Company or any of its subsidiaries or the
occurrence of certain other events specified in the Plan.

8.   EXERCISE. Except as otherwise specifically provided in the Plan, the Option
may not be exercised in whole or in part prior to the expiration of six months
after the date of grant of the Option.

9.   VESTING SCHEDULE. Beginning on the date of grant of the Option and
continuing until the Option has become fully exercisable, the Employee's
interest in the Option shall vest and become exercisable in accordance with the
schedule indicated below:

                           20% on ________; 20% on _________; 20% on each
                  -----    anniversary thereafter

                           In equal quarterly installments over a period of____
                  -----    years

                           The Option is fully vested as of the date of grant
                  -----

1.   RESTRICTION ON TRANSFER OF OPTION. Except as otherwise specifically
permitted in the Plan, Employee may not transfer all or any portion of his/her
interest in the Option other than by will or the laws of descent and
distribution.

                                       1
<PAGE>

2.   NO COMPETITION. Employee agrees that it is reasonable for the Company to
require, as a condition to Employee's receipt of the economic benefit afforded
by the Option, that Employee not engage in business activities competitive with
those of the Company and its subsidiaries. The provisions of Exhibit A hereto:

                  Apply
                        ----

                  Do not apply
                               ----

to the Option granted under this Agreement.

3.   ACKNOWLEDGEMENT BY EMPLOYEE. Employee acknowledges that (a) he/she has
received and reviewed a copy of the Plan and (b) the provisions of the Plan are
applicable to the Option.

4.   SPOUSAL CONSENT. If Employee is married, Employee shall have his/her spouse
execute and deliver to the Company a Spousal Consent in the form attached
hereto.

5.   TERMS OF AGREEMENT. Wherever the form of this Agreement provides for the
inclusion of additional information (such as the designation of the type of
Option in Section 5 above, the term of the Option in Section 6 above or the
vesting schedule for the Option in Section 9 above), such additional information
may be added as hand-written information, such information shall be deemed to be
part of this Agreement for all purposes and, by his or her execution of this
Agreement, Employee shall be deemed to have accepted such additional
information.

"COMPANY":                                       "EMPLOYEE":

PACIFIC CAPITAL BANCORP

By
  ---------------------------------              -------------------------------
                                                 Signature of Employee
Its:  Assistant Corporate Secretary
    -------------------------------

Address of the Company:                          Address of Employee

1021 Anacapa Street
Santa Barbara, CA 93101                          -------------------------------
Attn:                                            -------------------------------
     -------------------------                   -------------------------------

                                       2
<PAGE>

                                CONSENT OF SPOUSE
                                -----------------

      I acknowledge that I have read the foregoing Restricted Stock Option
Agreement (the "Agreement") and the Amended and Restated Restricted Stock Plan
effective February 22, 2000, which is a part of the Agreement, and that I know
their contents. I am aware that the Option will vest over a period of time. I
hereby approve of the provisions of the Agreement and agree that I will take no
action at any time to hinder operation of the Agreement.

Date:                                                                          ,
     ----------------------                  ----------------------------------
                                             Spouse of
                                                      --------------------------

                                  Exhibit A:3
<PAGE>

                                   Exhibit A

                            AGREEMENT NOT TO COMPETE

      This Exhibit A constitutes an integral part of the Restricted Stock Option
Agreement (the "Agreement") between Pacific Capital Bancorp ("Bancorp") and the
Employee designated in the Agreement.

      1.    APPLICATION. The provisions of this Exhibit A apply to the Agreement
if the "Apply" box in Section 11 of the Agreement is checked.

      2.    CANCELLATION ON COMPETITION. In the event of the termination of
Employee's employment with Bancorp or any of its subsidiaries (collectively the
"Company"), for any reason whatsoever, and, within six months thereafter,
Employee either (a) accepts employment with any competitor of the Company, or
(b) otherwise engages in competition with the Company, the Company, in its sole
discretion, may cancel the Option granted under the Agreement. If it cancels the
Option, the Company may require that Employee return or (if Employee has not
received such economic value) forfeit to the Company the economic value of the
Option which is realized or obtained, or is realizable or obtainable by Employee
at any time during the period beginning on the date which is six (6) months
prior to the date of the termination of Employee's employment with the Company
and ending six (6) months after the date of termination of such employment. The
economic value of the Option shall be measured as follows: (i), if the Option
has been exercised during the foregoing period, the economic value shall be
measured separately for each exercise as of the date of such exercise, and (ii),
to the extent that the Option has not been exercised, the economic value shall
be measured as of the date of forfeiture.

      3.    DEMAND FOR RETURN. The Company shall exercise its right to cancel
the Option by delivering to Employee written notice thereof and demand for the
return or forfeiture of the economic value of the Option. The Company may
enforce its right under this Exhibit at any time within two (2) years after the
date of the termination of Employee's employment with the Company. In the event
Employee engages in any competitive activity and the Company is entitled to
recover the economic value of the Option, Employee shall pay to the Company the
economic value of the Option in such manner and on such terms and conditions as
the Company may require. The Company shall be entitled to set-off the amount of
the economic value of the Option recoverable by the Company against any amount
owed to the Employee by the Company, whether under this Agreement or otherwise.

      4.    DEFINITION OF BUSINESS. For purposes of this Exhibit A, the business
of the Company shall be deemed to be the provision and performance of financial
services and shall include all financial services and financial activities
provided by the Company at the time of the termination of Employee's employment.
Employee acknowledges that the business of the Company shall not be limited to
the business activities conducted by the Company or the particular subsidiary
with which Employee is employed at the time of the termination of his or her
employment.

      5.    DEFINITION OF COMPETITIVE ACTIVITY. For purposes of this Exhibit A,
competitive activities include, but are not limited to, the following:

            5.1   EMPLOYMENT OR STOCK OWNERSHIP. Engaging, directly or
         indirectly, as a principal, partner, officer, director, employee or
         consultant of or to, or as the beneficial

                                  Exhibit A:4
<PAGE>

         holder of an equity interest material either to Employee or the
         organization in question, in any business competitive with the
         business of the Company; provided that Employee may hold up to 1% of
         the total outstanding equity securities of a corporation or other
         business entity without being deemed to be in competition with the
         Company;

            5.2   MARKETING ACTIVITIES. Engaging in any selling, marketing or
         other activities for or on behalf of Employee or any other business,
         person or entity which are in any manner related to products and
         services which are competitive with the products and services sold or
         furnished by the Company; and

            5.3   SOLICITATION OF PERSONNEL. Engaging in any activity which is
         intended directly or indirectly to attract to the employ of Employee or
         any other business, person or entity any person who is then an employee
         of or consultant to the Company and who is performing services related
         to the business of the Company.

      6.    DEFINITION OF ECONOMIC VALUE. For purposes of this Exhibit A, the
economic value of the Option shall be determined as followed.

            6.1   PRIOR EXERCISES. If and to the extent that the Option has been
         exercised, the economic value shall be an amount equal to the
         difference between (a) the Fair Market Value, as of the date of
         exercise of the Option, of the securities and other property issued to
         Employee by reason of Employee's exercise of the Option (including, but
         not limited to, any shares of common stock or other securities
         surrendered to or retained by the Company in the payment of the
         exercise price or the satisfaction of any tax withholding obligation)
         and (b) the exercise price paid by Employee.

            6.2   FORFEITURE. If the Option has been not exercised, the economic
         value shall be an amount equal to the difference between (a) the Fair
         Market Value, as of the date of the Company's written demand to
         Employee, of the securities and other property issuable to Employee
         upon exercise of the Option and (b) the exercise price payable by
         Employee.

            6.3   NO ADJUSTMENT. The economic value of the Option shall not be
         increased or decreased by reason of any increase or decrease in the
         Fair Market Value of the securities and other property issued or
         issuable to Employee upon exercise of the Option after the applicable
         date for determination of the economic value of the Option.

            6.4   FAIR MARKET VALUE. The Fair Market Value of the securities and
         other property issued or issuable to Employee upon exercise of the
         Option shall be determined in accordance with the terms of the Plan.

      7.    LIMITATION ON EXERCISE. Notwithstanding anything in this Agreement
or the Plan to the contrary, Employee may not exercise the Option in whole or in
part at any time after the date of the Company's written demand to Employee for
Employee's return of the economic value of the Option under this Exhibit A.

                                  Exhibit A:5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]