Document:

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                                                                 EXHIBIT 10.22.1

                             STOCK OPTION AGREEMENT
                                    UNDER THE
                            CITY NATIONAL CORPORATION
                             1985 STOCK OPTION PLAN

     This STOCK OPTION AGREEMENT is made and entered into as of OCTOBER 16,
1995, by and between CITY NATIONAL CORPORATION, a Delaware corporation (the
"Company"), and RUSSELL GOLDSMITH, an employee of the Company or a subsidiary of
the Company (the "Optionee"), with reference to the following:

     A. On April 16, 1986, the shareholders of the Company adopted the City
National Corporation 1985 Stock Option Plan (as amended from time to time
thereafter, the "Plan"), pursuant to which the Compensation Committee of the
Board of Directors (the "Committee") may grant selected officers and other
Company or Company subsidiary employees options to purchase shares of the
Company's common stock, $1.00 par value (the "Stock").

     B. Optionee has entered into, and the Compensation Committee has approved,
an Employment Agreement (the "Employment Agreement") of even date herewith, with
City National Bank, a subsidiary of the Company, providing for the grant to
Optionee of an option, which is not an Incentive Stock Option, as defined in
Section 422 of the Internal Revenue Code and Treasury regulations there-under,
to purchase shares of Stock pursuant to the terms and conditions of this
Agreement.

     NOW, THEREFORE, in consideration of the foregoing recitals and the
performance of the mutual covenants contained herein, it is hereby agreed as
follows:

     1. GRANT OF OPTION. The Company hereby grants to Optionee the right and
option (the "Option") to purchase, upon the terms and conditions set forth in
this Agreement, all or any part of the following number of shares of Stock at
the following price per share:

<TABLE>
<CAPTION>
                  Number of Shares                            Price Per Share
                  <S>                                         <C>
                  350,000                                     $13.375
</TABLE>

     The number of shares subject to the Option and the Option price are subject
to adjustment in certain events, as provided in the Plan.

     2. TIME OF EXERCISE. The Option will vest in Optionee and may be exercised
at any time and from time to time after the dates set forth in the following
schedule and before the Termination Date (as defined below) as to all or any
number of full shares not exceeding in the aggregate that number of shares set
forth opposite each such date:

                                    / / / / /

                                       1
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         Date After Which Option                 Maximum Cumulative Number
             May Be Exercised                   of Shares as to Which Option
                                                      May Be Exercised

               Date hereof                                 116,667
          1 year after date hereof                         233,334
          2 years after date hereof                        350,000
          10 years after date hereof              Any unexercised options
          (the "Termination Date")                will expire at this time

     In the event of Optionee's death while employed by the Company or
termination of employment for reasons other than for good cause, as defined in
Paragraph 10(a) of the Employment Agreement ("Good Cause"), all unvested options
will vest on the date of death or termination of employment.

     3. METHOD OF EXERCISE. The Option or any part thereof may be exercised by
giving written notice of exercise to the Secretary of the Company, which notice
must state the number of full shares to be purchased, and must be accompanied by
payment in full for the number of shares to be purchased; such payment may be in
cash or in shares of Stock, or a combination thereof. If any part of such
payment consists of Stock, such Stock must have been owned for at least one year
then last past and will be valued at the last sale price of such Stock as
reported by the New York Stock Exchange on the date of exercise. The date such
notice is received by the office of the Secretary will be the date of exercise
of the Option as to such number of shares. Not less than 100 shares may be
purchased at any one time unless the shares purchased are all of the shares then
purchasable under the Option.

     The Company will issue and deliver to Optionee a certificate for the number
of shares purchased; provided, however, that if any federal or state law or
regulation of any securities exchange listing the Company's shares requires the
Company to take any action with respect to the exercised shares before issuance
thereof, then the date for issuance and delivery of such shares will be extended
for the period of time necessary to take such action.

     4. TERMINATION OF OPTION. The Option and all rights granted under this
Agreement, to the extent such rights have not been exercised, will terminate on
the earlier of the Termination Date or the earliest to occur of the following:

        4.1  Immediately upon termination of Optionee's employment for Good
             Cause.

        4.2  If the employment of the Optionee terminates for any reason other
             than for Good Cause, death, retirement or disability, three (3)
             months after the date of such termination.

        4.3  If Optionee's employment terminates by reason of retirement or
             disability, three (3) years after the date of such termination.

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        4.4  If Optionee dies while employed by the Company or within three
             (3) months after Optionee's employment is terminated under the
             conditions specified in subparagraph 4.2 or 4.3 above, one (1)
             year after death. After the Optionee's death, the Option and all
             rights granted under this Agreement, to the extent such rights
             will not theretofore have been exercised, may be exercised by
             Optionee's personal representative or by the person or per-sons
             to whom the Option will pass by will or by the applicable laws of
             descent and distribution.

     Termination of Optionee's employment with the Company to accept employment
with a subsidiary of the Company, or vice versa, or to go on leave of absence at
the request, or with the approval, of the Company will not be deemed a
termination of employment for the purpose of this paragraph. In the event of
termination of employment under subparagraph 4.2 above, Optionee may exercise
the Option only to the extent vested under paragraph 2 above on the date of
termination.

     5. LIMITATION ON TRANSFER. Except as provided in subparagraph 4.4 above,
the Option and all rights granted under this Agreement are personal to Optionee
and cannot be transferred, assigned, pledged or hypothecated in any way (whether
by operation of law or otherwise) and will not be subject to execution,
attachment or similar processes.

     6. RECEIPT OF PLAN. Optionee acknowledges that Optionee has received a copy
of the Plan. In the event of any conflict between the Plan and this Agreement,
the provisions of the Plan will prevail. Optionee's rights hereunder are subject
to modification or termination in certain events, as provided in the Plan,
including without limitation such rules and regulations as may from time to time
be adopted or promulgated in accordance with paragraph 1.3 of the Plan.

     7. COMMITTEE DECISIONS. All decisions of the Compensation Committee (as
established pursuant to the Plan) with respect to any questions concerning the
application, administration or interpretation of the Plan will be conclusive and
binding on the Company and Optionee.

     8. NO RIGHTS AS SHAREHOLDER. Optionee will have no rights as a shareholder
with respect to shares of the Company's Stock covered by this Option until the
date of the issuance of a stock certificate or stock certificates. No adjustment
will be made for cash dividends for which the record date is prior to the date
such stock certificate or certificates are issued.

     9. COMPLIANCE WITH SECURITIES LAWS. No shares may be purchased or issued
upon the exercise of this Option unless and until any then applicable
requirements of the Securities and Exchange Commission, the California
Commissioner of Corporations, any national securities exchange upon which the
Stock of the Company may be listed and any other regulatory agency having
jurisdiction have been fully complied with.

     10. BINDING EFFECT. This Agreement will bind and inure to the benefit of
the Company and its successors and assigns, and Optionee and any heir, executor
or administrator of Optionee as permitted by subparagraph 4.4.

     11. ADJUSTMENTS; Acceleration. Notwithstanding any provisions of the Plan
to the contrary, the following will apply to this Agreement and the Option.

                                       3
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     11.1 ADJUSTMENTS. If the outstanding shares of Stock are changed into or
exchanged for cash, other property or a different number or kind of shares or
securities of the Company, or if additional shares or new or different
securities are distributed with respect to the outstanding shares of Stock,
through a reorganization or merger in which the Company is the surviving entity,
or through a combination, consolidation, recapitalization, reclassification,
stock split, stock dividend, reverse stock split, stock consolidation, dividend
or distribution of cash or property to the shareholders of the Company or if
there occurs any other extraordinary corporate transaction or event in respect
of the Stock or a sale of substantially all the assets of the Company as an
entirety which in the judgment of the Compensation Committee materially affects
the Stock, then the Compensation Committee will, in such manner and to such
extent (if any) as it deems appropriate and equitable (1) proportionately adjust
any or all terms of the Option (if and to the extent that a portion thereof
remains unexercised) including, but not limited to (A) the number and kind of
shares of Stock that are subject to or may be delivered under the outstanding
Option, or (B) the consideration payable with respect to the Option; or (2) in
the case of an extraordinary dividend or other distribution, merger,
reorganization, consolidation, combination, sale of assets, split up, exchange,
or spin off, make provision for a cash payment or for the substitution or
exchange of the outstanding Option or the cash, securities or property
deliverable to Optionee based upon the distribution or consideration payable to
holders of Stock upon or in respect of such event; provided, however, in each
case, that if there are then outstanding options to purchase Stock granted to
employees of the Company pursuant to the Company's 1995 Omnibus Plan ("1995
Omnibus Plan Options"), such adjustment or provision will be made if, and only
if, the same proportionate adjustment or a similar provision is made to or with
respect to the 1995 Omnibus Plan Options. In any of such events, the
Compensation Committee may take such action sufficiently prior to such event if
necessary to permit Optionee to realize the benefits intended to be conveyed
with respect to the underlying shares in the same manner as is available to
shareholders generally.

     11.2 ACCELERATION OF OPTION UPON CHANGE IN CONTROL. Upon the occurrence of
a Change in Control Event, as defined below, the Option will become immediately
exercisable, provided, however, that in no event will the Option be accelerated
to a date less than six months after the date of this Agreement. Notwithstanding
the foregoing, prior to a Change in Control Event, the Compensation Committee
may determine that, upon its occurrence, there will be no acceleration of
benefits under the Option pursuant to this subparagraph 11.2 or determine that
only certain or limited benefits under the Option will be accelerated pursuant
to this subparagraph 11.2 and the extent to which they are to be accelerated,
and/or establish a different time in respect of such event for such
acceleration; provided, however, in each case, that if 1995 Omnibus Plan Options
are then outstanding, such determination will be made if, and only if, the same
determination is made with respect to the 1995 Omnibus Plan Options. In that
event, the Compensation Committee will make provision in connection with such
transaction for continuance of the Option and the assumption thereof, or the
substitution for such with one or more new Options covering the stock of a
successor employer corporation, or a parent or subsidiary thereof, with
appropriate adjustments as to number and kind of shares and prices. In addition,
the Compensation Committee may accord Optionee a right to refuse any
acceleration in such circumstances as the Compensation Committee may approve.
Any acceleration of the Option will comply with applicable regulatory
requirements.

     11.3 DEFINITION OF CHANGE IN CONTROL EVENT. For purposes of subparagraph
11.2, above, "Change in Control Event" means:

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     11.3.1 The acquisition by any individual (other than Bram Goldsmith),
entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934 (the "Exchange Act")) (a "Person") of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 20% or more of either (A) the then outstanding shares of Stock (the
"Outstanding Stock") or (B) the combined voting power of the then outstanding
voting securities of the Company entitled to vote generally in the election of
directors (the "Outstanding Voting Securities"); provided, however, that the
following acquisitions do not constitute a Change in Control Event: (i) any
acquisition directly from the Company (except that an acquisition by virtue of
the exercise of a conversion privilege is not considered within this clause (i)
unless the converted security was itself acquired directly from the Company),
(ii) any acquisition by the Company, (iii) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company or (iv) any acquisition by any corporation
pursuant to a reorganization, merger or consolidation, if, following such
reorganization, merger or consolidation, the conditions described in clauses (A)
and (B) of paragraph (3) below are satisfied;

     11.3.2 Individuals who, as of the date hereof, constitute the Board (the
"Incumbent Board") cease for any reason to constitute at least a majority of the
Board; provided, however, that any individual who becomes a director subsequent
to the date hereof whose election, or nomination for election by the Company's
shareholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board will be considered as though such individual
were a member of the Incumbent Board; but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a result of either an
actual or threatened election contest (as such terms are used in Rule 14a-11 of
Regulation 14A promulgated under the Exchange Act) or other actual or threatened
solicitation of proxies or consents by or on behalf of a person other than the
Board; provided, however, that any transaction which does not constitute a
Change in Control Event by reason of an exception contained in subparagraphs
11.3.1, 11.3.3 or 11.3.4, will not constitute a Change in Control Event by
reason of this subparagraph 11.3.2; or

     11.3.3 Approval by the shareholders of the Company of a reorganization,
merger or consolidation (a "Transaction"), unless, following such Transaction in
each case, (A) more than 80% of, respectively, the then outstanding shares of
common stock of the corporation resulting from such Transaction and the combined
voting power of the then outstanding voting securities of such corporation
entitled to vote generally in the election of directors is then beneficially
owned, directly or indirectly, by all or substantially all of the individuals
and entities who were the beneficial owners, respectively, of the Outstanding
Stock and Outstanding Voting Securities immediately prior to such Transaction
and (B) no person (excluding the Company, Bram Goldsmith, any employee benefit
plan (or related trust) of the Company or such corporation resulting from such
transaction and any person beneficially owning, immediately prior to such
Transaction, directly or indirectly, 20% or more of the Outstanding Stock or
Outstanding Voting Securities, as the case may be) beneficially owns, directly
or indirectly, 20% or more of, respectively, the then outstanding shares of
common stock of the corporation resulting from such Transaction or the combined
voting power of the then outstanding voting securities of such corporation
entitled to vote generally in the election of directors; or

     11.3.4 Approval by the shareholders of the Company of (A) a complete
liquidation or dissolution of the Company or (B) the sale or other disposition
of all or substantially all of the assets of

                                       5
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the Company, unless such assets are sold to a corporation and following such
sale or other disposition, the conditions described in clauses (A) and (B) of
subparagraph 11.3.3, above, are satisfied with respect to the acquiring
corporation.

           11.4 Possible Early Termination of Accelerated Awards. If the Option
has not been exercised prior to (i) a dissolution of the Company, (ii) a
reorganization event described in subparagraph 11.1 that the Company does not
survive, or (iii) the consummation of a reorganization event described in
subparagraph 11.1 that results in a Change in Control Event approved by the
Board and no provision has been made for the survival, substitution, exchange or
other settlement of the Option, the Option will thereupon terminate.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
and year written above.

                                      CITY NATIONAL CORPORATION,
                                      a Delaware corporation

                                      By: /s/ Richard H. S#, Jr.
                                          --------------------------------------
                                          RICHARD H. SHEEHAN, JR., Senior Vice
                                          President, Secretary & General Counsel

                                          /s/ Russell Goldsmith
                                          --------------------------------------
                                          RUSSELL GOLDSMITH
                                          Optionee

                                       6<PAGE>

                                                                   EXHIBIT 10.24

                            CITY NATIONAL CORPORATION
                                1995 OMNIBUS PLAN

(As adopted on February 22, 1995, approved on April 18, 1995 and amended on
April 16 and June 25, 1997)

<PAGE>

                            CITY NATIONAL CORPORATION
                                1995 OMNIBUS PLAN

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                                        Page
<S>      <C>                                                                                                            <C>
I.       THE PLAN  .......................................................................................................1
         1.1.     PURPOSE.................................................................................................1
         1.2.     DEFINITIONS  ...........................................................................................1
         1.3.     ADMINISTRATION AND AUTHORIZATION; POWER AND PROCEDURE...................................................5
         1.4.     PARTICIPATION  .........................................................................................6
         1.5.     SHARES AVAILABLE FOR AWARDS  ...........................................................................7
         1.6.     GRANT OF AWARDS  .......................................................................................8
         1.7.     AWARD PERIOD  ..........................................................................................8
         1.8.     LIMITATIONS ON EXERCISE AND VESTING OF AWARDS  .........................................................8
         1.9.     ACCEPTANCE OF NOTES TO FINANCE EXERCISE  ...............................................................9
         1.10.    NO TRANSFERABILITY .....................................................................................9

II.      EMPLOYEE OPTIONS ...............................................................................................10
         2.1.     GRANTS ................................................................................................10
         2.2.     OPTION PRICE ..........................................................................................10
         2.3.     LIMITATIONS ON GRANT AND TERMS OF INCENTIVE STOCK OPTIONS .............................................11
         2.4.     LIMITS ON 10% HOLDERS .................................................................................11
         2.5.     OPTION REPRICING; CANCELLATION AND REGRANT; WAIVER OF RESTRICTIONS.................................... 11
         2.6.     DIVIDEND EQUIVALENTS ..................................................................................12
         2.7.     SURRENDER OF STOCK OPTIONS ............................................................................12
         2.8.     SPECIAL REQUIREMENTS FOR DIRECTOR STOCK OPTIONS .......................................................12

III.     STOCK APPRECIATION RIGHTS ......................................................................................13
         3.1.     GRANTS ................................................................................................13
         3.2.     EXERCISE OF STOCK APPRECIATION RIGHTS .................................................................13
         3.3.     PAYMENT ...............................................................................................14

IV.      RESTRICTED STOCK AWARDS ........................................................................................14
         4.1.     GRANTS ................................................................................................14
         4.2.     RESTRICTIONS ..........................................................................................15
         4.3.     RETURN TO THE COMPANY .................................................................................15

V.       PERFORMANCE SHARE AWARDS AND STOCK BONUSES .....................................................................15
         5.1.     GRANTS OF PERFORMANCE SHARE AWARDS ....................................................................15
         5.2.     GRANTS OF STOCK BONUSES ...............................................................................16
         5.3.     DEFERRED PAYMENTS..................................................................................... 16
</TABLE>

                                       i

<PAGE>

<TABLE>

<S>      <C>                                                                                                            <C>
VI.      TAX OFFSET BONUS RIGHTS ........................................................................................16
         6.1.     GRANTS ................................................................................................16
         6.2.     TAX OFFSET BONUS RIGHTS PERIOD ........................................................................16
         6.3.     EXERCISE OF RIGHTS ....................................................................................17
         6.4.     PAYMENTS ..............................................................................................17
         6.5.     TERMINATION OF EMPLOYMENT .............................................................................17

VII.     OTHER PROVISIONS............................................................................................... 17
         7.1.     RIGHTS OF ELIGIBLE EMPLOYEES, PARTICIPANTS AND BENEFICIARIES ..........................................17
         7.2.     ADJUSTMENTS; ACCELERATION .............................................................................18
         7.3.     EFFECT OF TERMINATION OF EMPLOYMENT ...................................................................19
         7.4.     COMPLIANCE WITH LAWS ..................................................................................20
         7.5.     TAX WITHHOLDING .......................................................................................20
         7.6.     PLAN AMENDMENT, TERMINATION AND SUSPENSION ............................................................20
         7.7.     PRIVILEGES OF STOCK OWNERSHIP .........................................................................21
         7.8.     EFFECTIVE DATE OF THE PLAN ............................................................................21
         7.9.     TERM OF THE PLAN ......................................................................................21
         7.10.    GOVERNING LAW; CONSTRUCTION; SEVERABILITY .............................................................21
         7.11.    CAPTIONS ..............................................................................................22
         7.12.    NON-EXCLUSIVITY OF PLAN ...............................................................................22
</TABLE>

                                       ii
<PAGE>

                            CITY NATIONAL CORPORATION
                                1995 OMNIBUS PLAN

I.   THE PLAN

I.1. PURPOSE

     The purpose of this Plan is to promote the success of the Company by
providing an additional means through the grant of Awards to attract, motivate,
retain and reward key employees, including officers, whether or not directors,
of the Company with awards and incentives for high levels of individual
performance and improved financial performance of the Company.

I.2. DEFINITIONS

(a)  "Award" shall mean an award of any Option, Stock Appreciation Right,
     Restricted Stock Award, Performance Share Award, Stock Bonus, Dividend
     Equivalent, Tax Offset Bonus or other right or security that would
     constitute a "derivative security" under Rule 16a-l(c) of the Exchange Act,
     or any combination thereof, whether alternative or cumulative, authorized
     by and granted under this Plan.

(b)  "Award Agreement" shall mean any writing setting forth the terms of an
     Award that has been authorized by the Committee.

(c)  "Award Date" shall mean the date upon which the Committee took the action
     granting an Award or such later date as the Committee designates as the
     Award Date at the time of the Award.

(d)  "Award Period" shall mean the period beginning on an Award Date and ending
     on the expiration date of such Award.

(e)  "Beneficiary" shall mean the person, persons, trust or trusts entitled by
     will or the laws of descent and distribution to receive the benefits
     specified in the Award Agreement and under this Plan in the event of a
     Participant's death, and shall mean the Participant's executor or
     administrator if no other Beneficiary is identified and able to act under
     the circumstances.

(f)  "Board" shall mean the Board of Directors of the Company.

(g)  "Change in Control Event" shall mean:

     (1)  The acquisition by any individual (other than Bram Goldsmith), entity
          or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
          Exchange Act) (a "Person") of beneficial ownership (within the meaning
          of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of
          either (A) the then outstanding shares of Common Stock (the
          "Outstanding Common Stock") or (B) the combined voting power of the
          then outstanding voting securities of the Company entitled to vote
          generally in the election of directors (the "Outstanding Voting
          Securities"); provided, however, that the following acquisitions shall
          not constitute a Change in Control Event: (i) any acquisition directly
          from the

                                       1
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          Company (except that an acquisition by virtue of the exercise of a
          conversion privilege shall not be considered within this clause (i)
          unless the converted security was itself acquired directly from the
          Company), (ii) any acquisition by the Company, (iii) any acquisition
          by any employee benefit plan (or related trust) sponsored or
          maintained by the Company or any corporation controlled by the Company
          or (iv) any acquisition by any corporation pursuant to a
          reorganization, merger or consolidation, if, following such
          reorganization, merger or consolidation, the conditions described in
          clauses (A) and (B) of paragraph (3) below are satisfied;

     (2)  Individuals who, as of the date hereof, constitute the Board (the
          "Incumbent Board") cease for any reason to constitute at least a
          majority of the Board; provided, however, that any individual who
          becomes a director subsequent to the date hereof whose election, or
          nomination for election by the Company's shareholders, was approved by
          a vote of at least a majority of the directors then comprising the
          Incumbent Board shall be considered as though such individual were a
          member of the Incumbent Board; but excluding, for this purpose, any
          such individual whose initial assumption of office occurs as a result
          of either an actual or threatened election contest (as such terms are
          used in Rule 14a-11 of Regulation 14A promulgated under the Exchange
          Act) or other actual or threatened solicitation of proxies or consents
          by or on behalf of a Person other than the Board; provided, however,
          that any transaction which does not constitute a Change in Control
          Event by reason of an exception contained in Section 1.2(g)(1), (3) or
          (4), shall not constitute a Change in Control Event by reason of this
          Section 1.2(g)(2); or

     (3)  Approval by the shareholders of the Company of a reorganization,
          merger or consolidation (a "transaction"), unless, following such
          transaction in each case, (A) more than 80% of, respectively, the then
          outstanding shares of common stock of the corporation resulting from
          such transaction and the combined voting power of the then outstanding
          voting securities of such corporation entitled to vote generally in
          the election of directors is then beneficially owned, directly or
          indirectly, by all or substantially all of the individuals and
          entities who were the beneficial owners, respectively, of the
          Outstanding Common Stock and Outstanding Voting Securities immediately
          prior to such transaction and (B) no Person (excluding the Company,
          Bram Goldsmith, any employee benefit plan (or related trust) of the
          Company or such corporation resulting from such transaction and any
          Person beneficially owning, immediately prior to such transaction,
          directly or indirectly, 20% or more of the Outstanding Common Stock or
          Outstanding Voting Securities, as the case may be) beneficially owns,
          directly or indirectly, 20% or more of, respectively, the then
          outstanding shares of common stock of the corporation resulting from
          such transaction or the combined voting power of the then outstanding
          voting securities of such corporation entitled to vote generally in
          the election of directors; or

     (4)  Approval by the shareholders of the Company of (A) a complete
          liquidation or dissolution of the Company or (B) the sale or other
          disposition of all or substantially all of the assets of the Company,
          unless such assets are sold to a corporation and following such sale
          or other disposition, the conditions described in clauses (A) and (B)
          of paragraph (3) above are satisfied with respect to the acquiring
          corporation.

                                       2

<PAGE>

(h)  "Code" shall mean the Internal Revenue Code of 1986, as amended from time
     to time.

(i)  "Commission" shall mean the Securities and Exchange Commission.

(j)  "Committee" shall mean the Compensation and Directors Nominating Committee
     of the Board, or other Committee, regardless of name, that acts on matters
     of compensation for eligible employees, which Committee shall be comprised
     only of two or more directors or such greater number of directors as may be
     required under applicable law, each of whom, during such time as one or
     more Participants may be subject to Section 16 of the Exchange Act, shall
     be a Disinterested and Outside director.

(k)  "Common Stock" shall mean the common stock of the Company, $1.00 par value
     per share, and such other securities or property as may become the subject
     of Awards, or become subject to Awards, pursuant to an adjustment made
     under Section 6.2 of this Plan.

(l)  "Company" shall mean City National Corporation and its Subsidiaries.

(m)  "Disinterested and Outside" shall mean "disinterested" within the meaning
     of any applicable regulatory requirements, including Rule 16b-3, and
     "outside" within the meaning of Section 162(m) of the Code.

(n)  "Dividend Equivalent" shall mean an amount equal to the amount of cash
     dividends or other cash distributions paid (or such portion of such
     dividend or other distribution as may be designated by the Committee) with
     respect to each Share after the date of an Award of a Dividend Equivalent.

(o)  "Eligible Employee" shall mean an officer at a level of Vice President or
     the equivalent (whether or not a director) of the Company, or any Other
     Eligible Person, as determined by the Committee in its discretion. In no
     event may any member of the Committee or a committee administering any
     other stock option, stock appreciation, stock bonus or other stock plan of
     the Company be an Eligible Employee.

(p)  "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
     amended.

(q)  "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended
     from time to time.

(r)  "Fair Market Value" shall mean, with respect to Common Stock, the price at
     which the Stock sold on the last normal transaction of the trading day on a
     specified date, or if no trading occurs on such specified date, on the most
     recent preceding business day on which trading occurred, as quoted on the
     National Market System of the National Association of Securities Dealers or
     on any exchange upon which the stock may be traded.

(s)  "Incentive Stock Option" shall mean an Option which is designated as an
     incentive stock option within the meaning of Section 422 of the Code and
     which contains such provisions as are necessary to comply with that
     section.

                                       3
<PAGE>

(t)  "Nonqualified Stock Option" shall mean an Option that is designated as a
     Nonqualified Stock Option and shall include any Option intended as an
     Incentive Stock Option that fails to meet the applicable legal requirements
     thereof. Any Option granted hereunder that is not designated as an
     incentive stock option shall be deemed to be designated a nonqualified
     stock option under this Plan and not an incentive stock option under the
     Code.

(u)  "Non-Employee Director" shall mean a member of the Board who is not an
     officer or employee of the Company.

(v)  "Option" shall mean an option to purchase Shares under this Plan. The
     Committee shall designate any Option granted to an Eligible Employee as a
     Nonqualified Stock Option or an Incentive Stock Option.

(w)  "Other Eligible Person" shall mean any other person (including significant
     agents and consultants) who performs substantial services for the Company
     of a nature similar to those performed by key employees, selected to
     participate in this Plan by the Committee from time to time; provided that
     in no event shall a Non-Employee Director be selected as an Other Eligible
     Person.

(x)  "Participant" shall mean an Eligible Employee who has been granted an Award
     under this Plan.

(y)  "Performance Share Award" shall mean an Award made pursuant to the
     provisions, and subject to the terms and conditions, of Article V of the
     Plan.

(z)  "Personal Representative" shall mean the person or persons who, upon the
     Total Disability or incompetence of a Participant, shall have acquired on
     behalf of the Participant, by legal proceeding or otherwise, the power to
     exercise the rights or receive benefits under this Plan and who shall have
     become the legal representative of the Participant.

(aa) "Plan" shall mean this 1995 Omnibus Plan.

(bb) "QDRO" shall mean a qualified domestic relations order as defined in
     Section 414 (p) of the Code or Title I, Section 206(d) (3) of ERISA (to the
     same extent as if this Plan were subject thereto), or the applicable rules
     thereunder.

(cc) "Restricted Stock" shall mean Shares awarded to a Participant subject to
     payment of such consideration, if any, and such conditions on vesting and
     such transfer and other restrictions as are established in or pursuant to
     this Plan, for so long as such shares remain unvested under the terms of
     the applicable Award Agreement.

(dd) "Retirement" shall mean retirement from active service as an employee or
     officer of the Company on or after attaining age 65.

(ee) "Rule 16b-3" shall mean Rule 16b-3, as amended from time to time, as
     promulgated by the Commission pursuant to the Exchange Act.

                                       4
<PAGE>

(ff) "Section 16 Person" shall mean a person subject to Section 16(a) of the
     Exchange Act.

(gg) "Securities Act" shall mean the Securities Act of 1933, as amended from
     time to time.

(hh) "Shares" shall mean shares of Common Stock of the Company.

(ii) "Stock Appreciation Right" shall mean a right to receive a number of Shares
     or an amount of cash, or a combination of shares and cash, the aggregate
     amount or value of which is determined by reference to a change in the Fair
     Market Value of the Shares that is authorized under this Plan.

(jj) "Subsidiary" shall mean any corporation or other entity a majority of whose
     outstanding voting stock or voting power is beneficially owned directly or
     indirectly by the Company.

(kk) "Total Disability" shall mean a "permanent and total disability" within the
     meaning of Section 22(e) (3) of the Code and such other disabilities,
     infirmities, afflictions or conditions as the Committee by rule may
     include.

I.3. ADMINISTRATION AND AUTHORIZATION; POWER AND PROCEDURE

(a)  Committee. This Plan shall be administered by, and all Awards to Eligible
     Employees shall be authorized by, the Committee. Action of the Committee
     with respect to the administration of this Plan shall be taken pursuant to
     a majority vote or by unanimous written consent of its members.

(b)  Plan Awards; Interpretation; Powers of Committee. Subject to the express
     provisions of this Plan, the Committee shall have the authority:

     (i)   To determine, from among those persons eligible, the particular
           Eligible Employees who will receive any Awards;

     (ii)  To grant Awards to Eligible Employees, determine the price at which
           securities will be offered or awarded and the amount of securities to
           be offered or awarded to any of such persons, and determine the other
           specific terms and conditions of such Awards consistent with the
           express limits of this Plan, and establish the installments (if any)
           in which such Awards shall become exercisable or shall vest, or
           determine that no delayed exercisability or vesting is required, and
           establish the events of termination or reversion (if any) of such
           Awards;

     (iii) To approve the forms of Award Agreements (which need not be identical
           either as to type of Award or among Participants);

     (iv)  To construe and interpret this Plan and any agreements defining the
           rights and obligations of the Company and Participants under this
           Plan, further define the terms used in this Plan, and prescribe,
           amend and rescind rules and regulations relating to the
           administration of this Plan;

                                       5
<PAGE>

     (v)   To cancel, modify, or waive the Company's rights with respect to, or
           modify, discontinue, suspend, or terminate, any or all outstanding
           Awards held by Participants, subject to any required consent under
           Section 7.6;

     (vi)  To accelerate or extend the exercisability or vesting extend the term
           of any or all such outstanding Awards within the maximum ten-year
           term of Awards under Section 1.7; and

     (vii) To make all other determinations and take such other action as
          contemplated by this Plan or as may be necessary or advisable for the
          administration of this Plan and the effectuation of its purposes.

(c)  Binding Determinations. Any action taken by, or inaction of, the Company,
     the Board or the Committee relating or pursuant to this Plan shall be
     within the absolute discretion of that entity or body and shall be
     conclusive and binding upon all persons. No member of the Board or
     Committee, or officer of the Company, shall be liable for any such action
     or inaction of the entity or body, of another person or, except in
     circumstances involving bad faith, of himself or herself. Subject only to
     compliance with the express provisions hereof, the Board and Committee may
     act in their absolute discretion in matters within their authority related
     to this Plan.

(d)  Reliance on Experts. In making any determination or in taking or not taking
     any action under this Plan, the Committee or the Board, as the case may be,
     may obtain and may rely upon the advice of experts, including professional
     advisors to the Company. No director, officer or agent of the Company shall
     be liable for any such action or determination taken or made or omitted in
     good faith.

(e)  Delegation. The Committee may delegate ministerial, non-discretionary
     functions to individuals who are officers or employees of the Company.

(f)  Substitute Options. Notwithstanding any provision to the contrary in this
     Plan, including, without limitation, Section 2.2(a) hereof, in the context
     of a merger, acquisition, consolidation or other business combination
     transaction in which the Company desires to acquire, extinguish, replace,
     exchange or buy out any stock option or other rights (collectively, the
     "Target Company Options") of a shareholder of another constituent entity to
     such merger, acquisition, consolidation or other business combination
     transaction, (i) the Committee shall have the authority to grant Options to
     Eligible Employees in exchange for Target Company Options, (ii) the
     Committee shall have discretion to grant such Options in such numbers and
     at such exercise prices as is in accordance with the exchange ratio or
     other exchange mechanism or formula for the consideration in any such
     merger, acquisition, consolidation or other business combination
     transaction and (iii) the Committee shall have the authority to deem such
     Options immediately exercisable and vested on the Award Date.

 .1.  PARTICIPATION

     Awards may be granted by the Committee only to those persons that the
Committee determines to be Eligible Employees. An Eligible Employee who has been
granted an Award may, if otherwise eligible, be granted additional Awards if the
Committee shall so determine. Non-Employee Directors

                                       6
<PAGE>

shall be eligible to receive Awards under this Plan only as specified in Section
2.8.

 .2.  SHARES AVAILABLE FOR AWARDS

     Subject to the provisions of Section 7.2, the capital stock that may be
delivered under this Plan shall be shares of the Company's authorized but
unissued Common Stock. The shares may be delivered for any lawful consideration.

(a)  Number of Shares. The maximum number of shares of Common Stock that may be
     delivered pursuant to Awards granted to Eligible Employees under this Plan
     shall not exceed 3,000,000 Shares subject to subsection (c) below and the
     adjustments contemplated by Section 7.2. The maximum number of Options and
     Stock Appreciation Rights (whether payable in Shares, cash or any
     combination thereof) that may be granted to an Eligible Employee during any
     one-year period shall not exceed 500,000, subject to adjustment as
     contemplated in Section 7.2.

(b)  Reservation of Shares. Common Stock subject to outstanding Awards of
     derivative securities (as defined in Rule 16a-l(c) under the Exchange Act)
     shall be reserved for issuance. If a Stock Appreciation Right or similar
     right based on the increased market value of a specified number of Shares
     is exercised or a Performance Share Award is paid, the number of Shares to
     which such exercise or payment relates under the applicable Award shall be
     charged against the maximum amount of Shares that may be delivered pursuant
     to Awards under this Plan and, if applicable, such Award. If the Company
     withholds Shares pursuant to Section 2.2(b) or 7.5, the number of shares
     that would have been deliverable with respect to an Award shall be reduced
     by the number of shares withheld and such shares shall not be available for
     additional Awards under this Plan. To the extent a Performance Share Award
     constitutes an equity security (as this phrase is defined in Rule 16a-1
     under the Exchange Act) issued by the Company and is paid in Shares the
     number of Shares (if any) subject to such Performance Share Award shall be
     charged (but in the case of tandem or substituted Awards, without
     duplication) against the maximum number of Shares that may be delivered
     pursuant to Awards under this Plan.

(c)  Cash Only Award Limit. Awards payable solely in cash under the Plan and
     Awards payable either in cash or shares that are actually paid in cash
     shall constitute and be referred to as "Cash Only Awards". The number of
     Cash Only Awards shall be determined by reference to the number of Shares
     by which the Award is measured. The maximum number of Cash Only Awards that
     may be paid shall not, together with the aggregate number of Shares that
     may be delivered under subsection (a), exceed 3,000,000, subject to
     adjustments under Section 7.2. Awards payable either in cash or shares
     shall not be counted against the Cash Only Award limit if charged against
     the share limit in subsection (a). Notwithstanding the foregoing, if an
     Award paid or payable solely in cash satisfies the requirements for the
     exclusion from the definition of a derivative security in Rule 16a-l(c)
     that does not require that the award be made under a Rule 16b-3 plan, the
     Award shall not be counted against any of the limits of this Section.

(d)  Reissue of Awards. Subject to any restrictions under Rule 16b-3, the shares
     which are subject to any unexercised, unconverted, unvested or
     undistributed portion of any expired, canceled, terminated or forfeited
     Award, or any alternative form of consideration under an Award that is not
     paid in connection with the settlement of an Award or any portion of an
     Award shall again be

                                       7
<PAGE>

     available for Award under subsection (a) or (c) above, as applicable,
     provided the Participant has not received dividends or Dividend Equivalents
     during the period in which the Participant's ownership was restricted or
     otherwise not vested. Shares that are issued pursuant to Awards and
     subsequently reacquired by the Company pursuant to the terms and conditions
     of the Awards also shall be available for reissuance under the Plan.
     Nothing in this paragraph shall be interpreted to allow shares which are in
     the possession of the Company pursuant to either Section 2.2(b) or 7.5 to
     be available for reissuance under the Plan.

(e)  Interpretive Issues. Additional rules for determining the number of shares
     or Cash Only Awards authorized under the Plan may be adopted by the
     Committee as it deems necessary or appropriate; provided that such rules
     are consistent with Rule 16b.

 .3.  GRANT OF AWARDS

     Subject to the express provisions of this Plan, the Committee shall
determine the number of Shares subject to each Award, and the price (if any) to
be paid for the Shares or the Award and, in the case of Performance Share
Awards, in addition to matters addressed in Section 1.3(b), the specific
objectives, goals and performance criteria (such as an increase in revenues,
market value, earnings or book value over a base period, the years of service
before vesting, the relevant job classification or level of responsibility or
other factors) that further define the terms of the Performance Share Award.
Each Award shall be evidenced by an Award Agreement signed by the Company and,
if required by the Committee, by the Participant.

 .4.  AWARD PERIOD

     Each Award and all executory rights or obligations under the related Award
Agreement shall expire on such date (if any) as shall be determined by the
Committee, but, in the case of Options or other rights to acquire Shares, not
later than ten (10) years after the Award Date.

 .5.  LIMITATIONS ON EXERCISE AND VESTING OF AWARDS

(a)  Provisions for Exercise. Except as may otherwise be provided in an Award
     Agreement or herein, no Award shall be exercisable or shall vest until at
     least six months after the initial Award Date. Once exercisable an Award
     shall remain exercisable until the expiration or earlier termination of the
     Award, unless the Committee otherwise provides.

(b)  Procedure. Any exercisable Award shall be deemed to be exercised when the
     Secretary of the Company receives written notice of such exercise from the
     Participant, together with any required payment made in accordance with
     Section 2.2(b).

(c)  Fractional Shares/Minimum Issue. Fractional share interests shall be
     disregarded, but may be accumulated. The Committee, however, may determine
     that cash, other securities or other property will be paid or transferred
     in lieu of any fractional share interests. No fewer than 100 Shares may be
     purchased on exercise of any Award at one time unless the number purchased
     is the total number at the time available for purchase under the Award.

                                       8
<PAGE>

 .6.  ACCEPTANCE OF NOTES TO FINANCE EXERCISE

     The Company may, with the Committee's approval, accept one or more notes
from any Participant in connection with the exercise or receipt of any
outstanding Award; provided that any such note shall be subject to the following
terms and conditions:

     (a)  The principal of the note shall not exceed the amount required to be
          paid to the Company upon the exercise or receipt of one or more Awards
          under the Plan and the note shall be delivered directly to the Company
          in consideration of such exercise or receipt.

     (b)  The initial term of the note shall be determined by the Committee;
          provided that the term of the note, including extensions, shall not
          exceed a period of 10 years.

     (c)  The note shall provide for full recourse to the Participant and shall
          bear interest at a rate determined by the Committee but not less than
          the applicable imputed interest rate specified by the Code.

     (d)  Except as otherwise provided by the Committee, if the employment of
          the Participant terminates, the unpaid principal balance of the note
          shall become due and payable on the 10th business day after such
          termination; provided, however, that if a sale of any Shares acquired
          by the Participant in connection with an Award to which the note
          relates would cause such Participant to incur liability under Section
          16(b) of the Exchange Act, the unpaid balance shall become due and
          payable on the 10th business day after the first day on which a sale
          of such shares could have been made without incurring such liability
          assuming for these purposes that there are no other transactions by
          the Participant subsequent to such termination.

     (e)  If required by the Committee or by applicable law, the note shall be
          secured by a pledge of any shares or rights financed thereby or any
          other collateral determined by the Committee in compliance with
          applicable law.

     (f)  The terms, repayment provisions, and collateral release provisions of
          the note and the pledge securing the note shall conform with
          applicable rules and regulations of the Federal Reserve Board as then
          in effect and any other applicable banking rules and regulations.

 .7.  NO TRANSFERABILITY

(a)  Awards may be exercised only by the Participant or, if the Participant has
     died, the Participant's Beneficiary or, if the Participant has suffered a
     Total Disability, the Participant's Personal Representative, if any, or if
     there is none, the Participant, or (to the extent permitted by applicable
     law and Rule 16b-3) a third party pursuant to such conditions and
     procedures as the Committee may establish. Other than by will or the laws
     of descent and distribution or pursuant to a QDRO or other exception to
     transfer restrictions under Rule 16b-3 (except to the extent not permitted
     in the case of an Incentive Stock Option), no right or benefit under this
     Plan or any Award, including, without limitation, any Option or shares of
     Restricted Stock, that has not

                                       9
<PAGE>

     vested shall be transferable by the Participant or shall be subject in any
     manner to anticipation, alienation, sale, transfer, assignment, pledge,
     encumbrance or charge (other than to the Company) and any such attempted
     action shall be void. The Company shall disregard any attempt at transfer,
     assignment or other alienation prohibited by the preceding sentences and
     shall pay or deliver such cash or Shares in accordance with the provisions
     of this Plan.

(b)  The restrictions on exercise and transfer above shall not be deemed to
     prohibit the authorization by the Committee of "cashless exercise"
     procedures with unaffiliated third parties who provide financing for the
     purpose of (or who otherwise facilitate) the exercise of Awards consistent
     with applicable legal restrictions and Rule 16b-3, nor, to the extent
     permitted by the Committee, transfers for estate and financial planning
     purposes, notwithstanding that the inclusion of such features may render
     the particular Awards ineligible for the benefits of Rule 16b-3, nor, in
     the case of Participants who are not Section 16 Persons, transfers to such
     other persons or in such other circumstances as the Committee may in the
     Award Agreement or other writing expressly permit.

I.   EMPLOYEE OPTIONS

I.1. GRANTS

     One or more Options may be granted under this Article to any Eligible
Employee, subject to the provisions of Section 1.5. Each Option granted may be
either an Option intended to be an Incentive Stock Option or an Option not so
intended, and such intent shall be indicated in the applicable Award Agreement.

I.2. OPTION PRICE

(a)  Pricing Limits. Subject to Section 2.4, the purchase price per share of the
     Common Stock covered by each Option shall be determined by the Committee at
     the time the Option is granted, but shall not be less than 100% of the Fair
     Market Value of the Common Stock on the date of grant.

(b)  Payment Provisions. The purchase price of any shares purchased on exercise
     of an Option granted under this Article shall be paid in full at the time
     of each purchase in one or a combination of the following methods: (i) in
     cash or by electronic funds transfer; (ii) by check payable to the order of
     the Company; (iii) if authorized by the Committee or specified in the
     applicable Award Agreement, in cash in an amount equal to the par value of
     the shares being purchased, and, in the form of a promissory note
     (consistent with the requirements of Section 1.9) of the Participant in an
     amount equal to the difference between said cash amount and the purchase
     price of such shares; (iv) by notice and third party payment in such manner
     as may be authorized by the Committee; (v) by the delivery of Shares
     already owned by the Participant, provided, however, that the Committee may
     in its absolute discretion limit the Participant's ability to exercise an
     Award by delivering such Shares; or (vi) if authorized by the Committee or
     specified in the applicable Award Agreement, by reduction in the number of
     Shares otherwise deliverable upon exercise by that number of Shares which
     have a then Fair Market Value equal to such purchase price. Previously
     owned Shares used to satisfy the exercise price of an Option

                                       10
<PAGE>

     under clause (v) shall be valued at their Fair Market Value on the date of
     exercise.

I.3. LIMITATIONS ON GRANT AND TERMS OF INCENTIVE STOCK OPTIONS

     (a)  $100,000 Limit. To the extent that the aggregate "fair market value"
          of Common Stock with respect to which Incentive Stock Options first
          become exercisable by a Participant in any calendar year exceeds
          $100,000, taking into account both Common Stock subject to Incentive
          Stock Options under this Plan and stock subject to incentive stock
          options under all other plans of the Company, such options shall be
          treated as Nonqualified Stock Options. For this purpose, the "fair
          market value" of the Common Stock subject to Options shall be
          determined as of the date the Options were awarded. In reducing the
          number of Options treated as Incentive Stock Options to meet the
          $100,000 limit, the most recently granted Options shall be reduced
          first. To the extent a reduction of simultaneously granted Options is
          necessary to meet the $100,000 limit, the Committee may, in the manner
          and to the extent permitted by law, designate which shares of Common
          Stock are to be treated as shares acquired pursuant to the exercise of
          an Incentive Stock Option.

     (b)  Option Period. Subject to Section 2.4, each Option and all rights
          thereunder shall expire no later than ten years after the Award Date.

     (c)  Other Code Limits. There shall be imposed in any Award Agreement
          relating to Incentive Stock Options such terms and conditions as from
          time to time are required in order that the Option be an "incentive
          stock option" as that term is defined in Section 422 of the Code.

I.4. LIMITS ON 10% HOLDERS

     No Incentive Stock Option may be granted to any person who, at the time the
Option is granted, owns (or is deemed to own under Section 424(d) of the Code)
shares of outstanding Common Stock possessing more than 10% of the total
combined voting power of all classes of stock of the Company, unless the
exercise price of such Option with respect to the Common Stock covered by the
Option is at least 110% of the Fair Market Value of the Common Stock subject to
the Option and such Option by its terms is not exercisable after the expiration
of five years from the date such Option is granted.

I.5. OPTION REPRICING; CANCELLATION AND REGRANT; WAIVER OF RESTRICTIONS

     Subject to Section 1.5 and Section 7.6 and the specific limitations on
Awards contained in this Plan, the Committee from time to time may authorize,
generally or in specific cases only, for the benefit of any Eligible Employee,
any adjustment in the exercise or purchase price, the number of shares subject
to, the restrictions upon or the term of, an Award granted under this Article by
cancellation of an outstanding Award and a subsequent regranting of an Award, by
amendment, by substitution of outstanding Award, by waiver or by other legally
valid means. Such amendment or other action may result among other changes in an
exercise or purchase price which is higher or lower than the exercise or
purchase price of the original or prior Award, provide for a greater or lesser
number of shares subject to the Award, or provide for a longer or shorter
vesting or exercise period. Notwithstanding the foregoing,

                                       11
<PAGE>

     any amendment or other action must contain terms and provisions permitted
     under the terms of this Plan as if the Option were granted on the date of
     the amendment.

I.6. DIVIDEND EQUIVALENTS

     The Committee may, at the time of granting an Option, grant Dividend
Equivalents attributable to Shares subject to the Option. Dividend Equivalents
shall be paid in cash only to the extent the Option is unexercised as of the
dividend record date, as specified in the Award Agreement, as follows: the
Dividend Equivalent per Share shall be multiplied by the number of Shares
subject to Option and an amount equal to the product so derived shall be paid in
cash to the Participant on the dividend payment date. The Committee may, in the
Award, specify that Dividend Equivalents shall be paid only for a specified time
period or only as to that portion of the Option that has vested.

I.7. SURRENDER OF STOCK OPTIONS

     The Committee, in its sole discretion, shall have the authority under the
circumstances set forth herein to agree mutually with a Participant to grant
such Participant the right on such terms and conditions as the Committee may
prescribe, to surrender such Participant's Options to the Company for
cancellation and to receive upon such surrender a cash payment equal to the
Spread applicable to such surrendered Option. Such right shall be made available
only in the event of an Offer (as defined in the following paragraph).

     The term "Offer" as used in this Section means any tender offer or exchange
offer for Shares, other than one made by the Company, provided that the
corporation, person or other entity making the offer acquires Shares pursuant to
such offer.

     The term "Offer Price per Share" as used in this Section means the highest
price per share paid on any Offer which is in effect at any time during the
period beginning on the sixtieth day prior to the date on which the Option is
surrendered pursuant to this Section and ending on such date of surrender. Any
securities or property which are part or all of the consideration paid for
shares in the Offer shall be valued in determining the Offer Price per Share at
the higher of (a) the valuation placed on such securities or property by any
other corporation, person or entity making the Offer or (b) the valuation placed
on such securities or property by the Committee.

     The term "Spread" as used in this Section means with respect to any
surrendered Option and associated right, if any, an amount equal to the product
computed by multiplying (i) the excess of (A) the Offer Price per Share or the
highest market price per share of the Company's Common Stock during the period
beginning on the sixtieth day prior to the date on which the Stock Option is
surrendered pursuant to this Section and ending on such date of surrender over
(B) the purchase price per share at which the surrendered Option is then
exercisable, by (ii) the number of shares subject to such Option with respect to
which it has not theretofore been exercised.

I.8. SPECIAL REQUIREMENTS FOR DIRECTOR STOCK OPTIONS

(a)  Eligibility. All directors of the Company who are not employees of the
     Company shall be eligible to receive Director Stock Options, as set forth
     in this Section 2.8. Notwithstanding the

                                       12
<PAGE>

     foregoing, any director who is, or who during the preceding calendar year
     was, a member of the Committee or any committee administering any other
     stock option, stock appreciation, stock bonus or other stock plan of the
     Company or any Subsidiary will not be eligible to receive Director Stock
     Options hereunder if, in the opinion of counsel for the Company, the
     receipt of Director Stock Options will cause such director to be a
     "disinterested person" with respect to the Plan or any other stock option,
     stock appreciation, stock bonus or other stock plan of the Company or any
     Subsidiary pursuant to Rule 16b-3 of the Securities and Exchange
     Commission, or will otherwise disqualify the Plan or any other such plan
     from compliance with said rule.

(b)  Grant of Director Options. Every eligible director will receive five
     hundred (500) Director Stock Options on the date of each annual meeting of
     shareholders. Director Stock Options shall be granted automatically to each
     such eligible director on the business day following such annual meeting of
     stockholders, without further action of the Committee or the Board.

(c)  Stock Option Price. The purchase price of the stock pursuant to a Director
     Stock Option shall be $1.00 per share.

(d)  Other Terms of Director Stock Options. Each Director Stock Option shall
     become exercisable six (6) months after the date of grant. Unless otherwise
     determined by the Committee, if the holder of Director Stock Options ceases
     to serve as a director of the Company for any reason other than for cause,
     the Director Stock Options shall expire at the end of their fixed term, or
     three months after the date of such termination, and until then shall be
     exercisable in full, regardless of any vesting schedule otherwise
     applicable. Except as set forth in this Section 2.8, all terms and
     provisions of the Director Stock Options shall be as set forth in the Plan
     with respect to options which are not Director Stock Options.

II.  STOCK APPRECIATION RIGHTS

II.1. GRANTS

     In its discretion, the Committee may grant to any Eligible Employee Stock
Appreciation Rights either concurrently with the grant of another Award or in
respect of an outstanding Award, in whole or in part, or independently of any
other Award. Any Stock Appreciation Right granted in connection with an
Incentive Stock Option shall contain such terms as may be required to comply
with the provisions of Section 422 of the Code and the regulations promulgated
thereunder.

II.2. EXERCISE OF STOCK APPRECIATION RIGHTS

(a)  Exercisability. A Stock Appreciation Right related to another Award shall
     be exercisable at such time or times, and to the extent, that the related
     Award shall be exercisable, provided, however, that any exercise of any
     Stock Appreciation Right hereunder shall be made beginning on the third
     business day following the date of release of the financial data specified
     in paragraph (e)(1)(ii) of Rule 16b-3 of the regulations promulgated under
     the Securities Exchange Act of 1934 and ending on the twelfth business day
     following such date or at such other time as may be permitted under an
     agreement or successor rule.

                                       13
<PAGE>

(b)  Effect on Available Shares. In the event that a Stock Appreciation Right is
     exercised, the number of Shares subject to the Award shall be charged
     against the number of Shares subject to the Stock Appreciation Right and
     the related Option of the Participant.

(c)  Stand-Alone SARs. A Stock Appreciation Right granted independently of any
     other Award shall be exercisable pursuant to the terms of the Award
     Agreement but, unless the Committee determines otherwise, in no event
     earlier than six months after the Award Date.

II.3. PAYMENT

(a)  Amount. Unless the Committee otherwise provides, upon exercise of a Stock
     Appreciation Right, the Participant shall be entitled to receive payment of
     an amount determined by multiplying

     (i)  The difference obtained by subtracting the exercise price per Share
          under the related Award (if applicable) or the initial share value
          specified in the Award from the Fair Market Value of a Share on the
          date of exercise of the Stock Appreciation Right, by

     (ii) The number of Shares with respect to which the Stock Appreciation
          Right shall have been exercised.

     Notwithstanding the above, the Committee may place a maximum limitation on
     the amount payable upon exercise of a Stock Appreciation Right. Such
     limitation, however, must be determined as of the date of the grant and
     noted on the instrument evidencing the Stock Appreciation Right granted
     hereunder.

(b)  Form of Payment. The Committee, in its sole discretion, shall determine the
     form in which payment shall be made of the amount determined under
     paragraph (a) above, either solely in cash, solely in Shares (valued at
     Fair Market Value on the date of exercise of the Stock Appreciation Right),
     or partly in such Shares and partly in cash, provided that the Committee
     shall have determined that such exercise and payment are consistent with
     applicable law. If the Committee permits the Participant to elect to
     receive cash or Shares (or a combination thereof) on such exercise, any
     such election shall be subject to such conditions as the Committee may
     impose and, in the case of any Section 16 Person, any election to receive
     cash shall be subject to any applicable limitations under Rule 16b-3.

III. RESTRICTED STOCK AWARDS

III.1. GRANTS

     The Committee may, in its discretion, grant one or more Restricted Stock
Awards to any Eligible Employee. Each Restricted Stock Award Agreement shall
specify the number of Shares to be issued, the date of such issuance, the
consideration for such Shares (but not less than the minimum lawful
consideration) to be paid, if any, by the Participant and the restrictions
imposed on such Shares and the conditions of release or lapse of such
restrictions. Such restrictions shall not lapse earlier than six months after
the Award Date, except to the extent the Committee may otherwise provide.

                                       14
<PAGE>

Stock certificates evidencing shares of Restricted Stock pending the lapse of
the restrictions ("restricted shares") shall bear a legend making appropriate
reference to the restrictions imposed hereunder and shall be held by the Company
or by a third party designated by the Committee until the restrictions on such
shares shall have lapsed and the shares shall have vested in accordance with the
provisions of the Award and Section 1.8. Upon issuance of the Restricted Stock
Award, the Participant may be required to provide such further assurance and
documents as the Committee may require to enforce the restrictions.

III.2. RESTRICTIONS

(a)  Pre-Vesting Restraints. Except as provided in Section 1.10 and 4.1,
     restricted shares comprising any Restricted Stock Award may not be sold,
     assigned, transferred, pledged or otherwise disposed of or encumbered
     either voluntarily or involuntarily, until such shares have vested.

(b)  Dividend and Voting Rights. Unless otherwise provided in the applicable
     Award Agreement, a Participant receiving a Restricted Stock Award shall be
     entitled to cash dividend and voting rights for all shares issued even
     though they are not vested, provided that such rights shall terminate
     immediately as to any restricted shares which cease to be eligible for
     vesting.

(c)  Cash Payments. If the Participant shall have paid or received cash
     (including any dividends) in connection with the Restricted Stock Award,
     the Award Agreement shall specify whether and to what extent such cash
     shall be returned (with or without an earnings factor) as to any restricted
     shares which cease to be eligible for vesting.

III.3. RETURN TO THE COMPANY

     Unless the Committee otherwise expressly provides, shares of Restricted
Stock that are subject to restrictions at the time of termination of employment
or are subject to other conditions to vest that have not been satisfied by the
time specified in the applicable Award Agreement shall not vest and shall be
returned to the Company in such manner and on such terms as the Committee shall
therein provide.

IV.  PERFORMANCE SHARE AWARDS AND STOCK BONUSES

IV.1. GRANTS OF PERFORMANCE SHARE AWARDS

     The Committee may, in its discretion, grant one or more Performance Share
Awards to any Eligible Employee based upon such factors, which in the case of
any Award to a Section 16 Person shall include but not be limited to the
contributions, responsibilities and other compensation of the person, as the
Committee shall deem relevant in light of the specific type and terms of the
Award. An Award Agreement shall specify the maximum number of Shares (if any)
subject to the Performance Share Award, the consideration (but not less than the
minimum lawful consideration) to be paid for any such Shares as may be issuable
to the Participant, the duration of the Award and the conditions upon which
delivery of any Shares or cash to the Participant shall be based. The amount of
Shares that may be deliverable pursuant to such Award shall be based upon the
degree of attainment over a specified period (a "performance cycle") as may be
established by the Committee of such measure(s) of the performance of the
Company (or any part thereof) or the Participant as may be established by the
Committee. The Committee may provide for full or partial credit, prior to
completion of such performance cycle or the

                                       15
<PAGE>

attainment of the performance achievement specified in the Award, in the event
of the Participant's death, Retirement, or Total Disability, a Change in Control
Event or in such other circumstances as the Committee, consistent with Section
7.10(c)(2), if applicable, may determine.

IV.2. GRANTS OF STOCK BONUSES

     The Committee may grant a stock bonus to any Eligible Employee to reward
exceptional or special services, contributions or achievements in the manner and
on such terms and conditions (including any restrictions on such shares) as
determined from time to time by the Committee.

     The number of Shares so awarded shall be determined by the Committee. The
stock bonus may be granted independently or in lieu of a cash bonus.

IV.3. DEFERRED PAYMENTS

     The Committee may authorize for the benefit of any Eligible Employee the
deferral of any payment of cash or Shares that may become due or of cash
otherwise payable under this Plan, and provide for accreted benefits thereon
based upon such deferment, at the election or at the request of such
Participant, subject to the other terms of this Plan. Such deferral shall be
subject to such further conditions, restrictions or requirements as the
Committee may impose, subject to any then vested rights of Participants.

V.   TAX OFFSET BONUS RIGHTS

V.1. GRANTS

     The Committee may, in its discretion, grant Tax Offset Bonus Rights to
selected Participants. Such rights shall be evidenced by Tax Offset Bonus Rights
agreements on the terms and conditions set forth in the Plan, which agreements
shall specify the amount or method of calculating the amount of the rights being
granted and may contain such other terms and conditions as are not inconsistent
with the purposes and provisions of the Plan. Each Tax Offset Bonus Right must
relate to a specific Nonqualified Stock Option granted under Section II of the
Plan. Tax Offset Bonus Rights granted in relation to a specific Nonqualified
Stock Option shall be granted either concurrently or at such later time as
determined by the Committee. The amount of any Tax Offset Bonus Right may be,
but is not required to be, calculated as a specified percentage of the excess of
the Fair Market Value of a share of the Company's Common Stock on the date when
the right is exercised over the price per share under the Option exercised
concurrently with the exercise of such right.

V.2. TAX OFFSET BONUS RIGHTS PERIOD

     Each Tax Offset Bonus Right and all rights or obligations thereunder shall
expire upon the expiration of the related Nonqualified Stock Option. In no event
may a Tax Offset Bonus Right be exercised later than the tenth anniversary of
the date on which the Tax Offset Bonus Right is granted, and shall be subject to
earlier termination as hereinafter provided.

                                       16
<PAGE>

V.3. EXERCISE OF RIGHTS

     Tax Offset Bonus Rights shall be exercisable to the extent, and only to the
extent, the related Nonqualified Stock Option is exercisable. Tax Offset Bonus
Rights shall only be exercisable concurrently with the exercise of the related
Nonqualified Stock Option; any exercise of the Nonqualified Stock Option shall
also be deemed an exercise of the equivalent number of Tax Offset Bonus Rights.

     Each holder of a Tax Offset Bonus Right shall agree to give the Committee
prompt written notice of an election made by such holder to exercise said Tax
Offset Bonus Rights subject to the approval of the Committee.

     Despite any other provision of the Plan, the Committee may impose such
conditions on exercise of Tax Offset Bonus Rights as may be required to satisfy
the requirements of Rule 16b-3 (or any successor rule), promulgated by the
Securities and Exchange Commission pursuant to the Securities Exchange Act of
1934.

     Any exercise of a Tax Offset Bonus Right hereunder shall be made beginning
on the third business day following the date of release of the financial data
specified in paragraph (e)(1)(ii) of Rule 16b-3 of the regulations promulgated
under the Securities Exchange Act of 1934 and ending on the twelfth business day
following such date or at such other time as may be permitted under an amendment
or successor rule.

V.4. PAYMENTS

     Upon the exercise of a Tax Offset Bonus Right, the Company shall deliver to
the person exercising such right the amount of the right being exercised,
calculated as specified in the Tax Offset Bonus Right agreement with respect
thereto. Payment shall be in either cash, Common Stock or a combination thereof,
as the Committees shall determine. No fractional shares will be issued.

V.5. TERMINATION OF EMPLOYMENT

     Unless otherwise determined by the Committee, in the event a Participant
ceases to be an employee of the Company for any reason, any Tax Offset Bonus
Right will be exercisable only to the extent that any related Nonqualified Stock
Option is exercisable under the applicable provisions of the Plan and related
Award Agreement.

VI.  OTHER PROVISIONS

VI.1. RIGHTS OF ELIGIBLE EMPLOYEES, PARTICIPANTS AND BENEFICIARIES

(a)  Employment Status. Status as an Eligible Employee shall not be construed as
     a commitment that any Award will be made under this Plan to an Eligible
     Employee or to Eligible Employees generally.

                                       17
<PAGE>

(b)  No Employment Contract. Nothing contained in this Plan (or in any other
     documents related to this Plan or to any Award) shall confer upon any
     Eligible Employee or Participant any right to continue in the employ or
     other service of the Company or constitute any contract or agreement of
     employment or other service, nor shall interfere in any way with the right
     of the Company to change such person's compensation or other benefits or to
     terminate the employment of such person, with or without cause, but nothing
     contained in this Plan or any document related hereto shall adversely
     affect any independent contractual right of such person without his or her
     consent thereto.

(c)  Plan Not Funded. Awards payable under this Plan shall be payable in Shares
     or from the general assets of the Company, and no special or separate
     reserve, fund or deposit shall be made to assure payment of such Awards. No
     Participant, Beneficiary or other person shall have any right, title or
     interest in any fund or in any specific asset (including shares of Common
     Stock except as expressly otherwise provided) of the Company by reason of
     any Award hereunder. Neither the provisions of this Plan (or of any related
     documents), nor the creation or adoption of this Plan, nor any action taken
     pursuant to the provisions of this Plan shall create, or be construed to
     create, a trust of any kind or a fiduciary relationship between the Company
     and any participant, Beneficiary or other person. To the extent that a
     Participant, Beneficiary or other person acquires a right to receive
     payment pursuant to any Award hereunder, such right shall be no greater
     than the right of any unsecured general creditor of the Company.

VI.2. ADJUSTMENTS; ACCELERATION

(a)  Adjustments. If the outstanding shares of Common Stock are changed into or
     exchanged for cash, other property or a different number or kind of shares
     or securities of the Company, or if additional shares or new or different
     securities are distributed with respect to the outstanding shares of Common
     Stock, through a reorganization or merger in which the Company is the
     surviving entity, or through a combination, consolidation,
     recapitalization, reclassifi-cation, stock split, stock dividend, reverse
     stock split, stock consolidation, dividend or distribution of cash or
     property to the shareholders of the Company or if there shall occur any
     other extraordinary corporate transaction or event in respect of the Common
     Stock or a sale of substantially all the assets of the Company as an
     entirety which in the judgment of the Committee materially affects the
     Common Stock, then the Committee shall, in such manner and to such extent
     (if any) as it deems appropriate and equitable (1) proportionately adjust
     any or all terms of outstanding Awards including, but not limited to (A)
     the number and kind of shares of Common Stock or other consideration that
     is subject to or may be delivered under this Plan and pursuant to
     outstanding Awards, (B) the consideration payable with respect to Awards
     granted prior to any such change and the price, if any, paid in connection
     with Restricted Stock Awards or (C) the performance standards appropriate
     to any outstanding Awards; or (2) in the case of an extraordinary dividend
     or other distribution, merger, reorganization, consolidation, combination,
     sale of assets, split up, exchange, or spin off, make provision for a cash
     payment or for the substitution or exchange of any or all outstanding
     Awards or the cash, securities or property deliverable to the holder of any
     or all outstanding Awards based upon the distribution or consideration
     payable to holders of Common Stock upon or in respect of such event;
     provided, however, in each case, that with respect to Awards of Incentive
     Stock Options, no such adjustment shall be made which would cause the Plan
     to violate Section 422 or 424(a) of the

                                       18
<PAGE>

     Code or any successor provisions thereto. Corresponding adjustments shall
     be made with respect to any Stock Appreciation Rights based upon the
     adjustments made to the Options to which they are related. In any of such
     events, the Committee may take such action sufficiently prior to such event
     if necessary to permit the Participant to realize the benefits intended to
     be conveyed with respect to the underlying shares in the same manner as is
     available to shareholders generally.

(b)  Acceleration of Awards Upon Change in Control. As to any or all
     Participants, upon the occurrence of a Change in Control Event (i) each
     Option and Stock Appreciation Right shall become immediately exercisable,
     (ii) Restricted Stock shall immediately vest free of restrictions, and
     (iii) each Performance Share Award shall become payable to the Participant;
     provided, however, that in no event shall any Award be accelerated as to
     any Section 16 Person to a date less than six months after the Award Date
     of such Award. Notwithstanding the foregoing, prior to a Change in Control
     Event, the Committee may determine that, upon its occurrence, there shall
     be no acceleration of benefits under Awards or determine that only certain
     or limited benefits under Awards shall be accelerated and the extent to
     which they shall be accelerated, and/or establish a different time in
     respect of such event for such acceleration. In that event, the Committee
     will make provision in connection with such transaction for continuance of
     the Plan and the assumption of Options and Awards theretofore granted, or
     the substitution for such with new Options and Awards covering the stock of
     a successor employer corporation, or a parent or subsidiary thereof, with
     appropriate adjustments as to number and kind of shares and prices. In
     addition, the Committee may override the limitations on acceleration in
     this Section 7.2(b) by express provision in the Award Agreement and may
     accord any Participant a right to refuse any acceleration, whether pursuant
     to the Award Agreement or otherwise, in such circumstances as the Committee
     may approve. Any acceleration of Awards shall comply with applicable
     regulatory requirements. including without limitation Section 422 of the
     Code.

(c)  Possible Early Termination of Accelerated Awards. If any Option or other
     right to acquire Shares under this Plan has not been exercised prior to (i)
     a dissolution of the Company, (ii) a reorganization event described in
     Section 7.2(a) that the Company does not survive, or (iii) the consummation
     of a reorganization event described in Section 7.2(a) that results in a
     Change in Control Event approved by the Board and no provision has been
     made for the survival, substitution, exchange or other settlement of such
     Option or right, such Option or right shall thereupon terminate.

VI.3. EFFECT OF TERMINATION OF EMPLOYMENT

     The Committee shall establish in respect of each Award granted to an
Eligible Employee the effect of a termination of employment on the rights and
benefits thereunder and in so doing may make distinctions based upon the cause
of termination, e.g., retirement, early retirement, termination for cause,
disability or death. Notwithstanding any terms to the contrary in an Award
Agreement or this Plan, the Committee may decide in its complete discretion to
extend the exercise period of an Award (although not beyond the period described
in Section 2.3(b)) and the number of shares covered by the Award with respect to
which the Award is exercisable or vested.

                                       19
<PAGE>

VI.4. COMPLIANCE WITH LAWS

     This Plan, the granting and vesting of Awards under this Plan and the
offer, issuance and delivery of Shares and/or the payment of money under this
Plan or under Awards granted hereunder are subject to compliance with all
applicable federal and state laws, rules and regulations (including, but not
limited to, state and federal securities laws and federal margin requirements)
and to such approvals by any listing, regulatory or governmental authority as
may, in the opinion of counsel for the Company, be necessary or advisable in
connection therewith. Any securities delivered under this Plan shall be subject
to such restrictions, and the person acquiring such securities shall, if
requested by the Company, provide such assurances and representations to the
Company as the Company may deem necessary or desirable to assure compliance with
all applicable legal requirements.

VI.5. TAX WITHHOLDING

(a)  Cash or Shares. Upon any exercise, vesting, or payment of any Award, the
     Company shall have the right at its option to (i) require the Participant
     (or Personal Representative or Beneficiary, as the case may be) to pay or
     provide for payment of the amount of any taxes which the Company may be
     required to withhold with respect to such transaction or (ii) deduct from
     any amount payable in cash the amount of any taxes which the Company may be
     required to withhold with respect to such cash amount. In any case where a
     tax is required to be withheld in connection with the delivery of Shares
     under this Plan, the Committee may grant (either at the time of the Award
     or thereafter) to the Participant the right to elect, or the Committee may
     require (either at the time of the Award or thereafter), pursuant to such
     rules and subject to such conditions as the Committee may establish, to
     have the Company reduce the number of shares to be delivered by the
     appropriate number of shares valued at their then Fair Market Value, to
     satisfy such withholding obligation.

(b)  Tax Loans. The Committee may, in its discretion, authorize a loan to an
     Eligible Employee in the amount of any taxes which the Company may be
     required to withhold with respect to Shares received (or disposed of, as
     the case may be) pursuant to a transaction described in subsection (a)
     above. Such a loan shall be for a term, at a rate of interest and pursuant
     to such other terms and conditions as the Committee, under applicable law,
     may establish and such loan need not comply with the provisions of Section
     1.9.

VI.6. PLAN AMENDMENT, TERMINATION AND SUSPENSION

(a)  Board Authorization. The Board may, at any time, terminate or, from time to
     time, amend, modify or suspend this Plan, in whole or in part. No Awards
     may be granted during any suspension of this Plan or after termination of
     this Plan, but the Committee shall retain jurisdiction as to Awards then
     outstanding in accordance with the terms of this Plan. Any suspension will
     not affect the expiration of the Plan set forth in Section 7.9.

(b)  Shareholder Approval. If any amendment would (i) materially increase the
     benefits accruing to participants under this Plan, (ii) materially increase
     the aggregate number of securities that may be issued under this Plan, or
     (iii) materially modify the requirements as to eligibility for
     participation in this Plan, then to the extent then required by Rule 16b-3
     to secure benefits

                                       20
<PAGE>

     thereunder or to avoid liability under Section 16 of the Exchange Act (and
     Rules thereunder) or required under Section 424 of the Code or any other
     applicable law, or deemed necessary or advisable by the Board, such
     amendment shall be subject to shareholder approval. Notwithstanding the
     foregoing, the provisions of Section 2.8 shall not be amended more than
     once every six months other than to comport with changes in the Code, ERISA
     or the rules thereunder.

(c)  Amendments to Awards. Without limiting any other express authority of the
     Committee under, but subject to the express limits of, this Plan, the
     Committee by agreement or resolution may waive conditions of or limitations
     on Awards that the Committee in the prior exercise of its discretion has
     imposed, without the consent of the Participant, and may make other changes
     to the terms and conditions of Awards that do not affect in any manner
     materially adverse to the Participant his or her rights and benefits under
     an Award.

(d)  Limitations on Amendments to Plan and Awards. No amendment, suspension or
     termination of the Plan or change of or affecting any outstanding Award
     shall, without written consent of the Participant, affect in any manner
     materially adverse to the Participant any rights or benefits of the
     Participant or obligations of the Company under any Award granted under
     this Plan prior to the effective date of such change. Changes contemplated
     by Section 7.2 shall not be deemed to constitute changes or amendments for
     purposes of this Section 7.6.

VI.7. PRIVILEGES OF STOCK OWNERSHIP

     Except as otherwise expressly authorized by the Committee or this Plan, a
Participant shall not be entitled to any privilege of stock ownership as to any
Shares not actually delivered to and held of record by him or her. No adjustment
will be made for dividends or other rights as a shareholder for which a record
date is prior to such date of delivery.

VI.8. EFFECTIVE DATE OF THE PLAN

     This Plan shall be effective as of February 22, 1995, the date of Board
approval, subject to shareholder approval within 12 months thereafter.

VI.9. TERM OF THE PLAN

     No Award shall be granted more than ten years after the effective date of
this Plan (the "termination date"). Unless otherwise expressly provided in this
Plan or in an applicable Award Agreement, any Award thereto granted may extend
beyond such date, and all authority of the Committee with respect to Awards
hereunder shall continue during any suspension of this Plan and in respect of
outstanding Awards on such termination date.

VI.10. GOVERNING LAW; CONSTRUCTION; SEVERABILITY

(a)  Choice of Law. This Plan, the Awards, all documents evidencing Awards and
     all other related documents shall be governed by, and construed in
     accordance with the laws of the State of California applicable to contracts
     made and performed within such State, except as such laws

                                       21
<PAGE>

     may be supplanted by the laws of the United States of America, which laws
     shall then govern its effect and its construction to the extent they
     supplant California law.

(b)  Severability. If any provision shall be held by a court of competent
     jurisdiction to be invalid and unenforceable, the remaining provisions of
     this Plan shall continue in effect.

(c)  Plan Construction.

     (i)  It is the intent of the Company that this Plan and Awards hereunder
          satisfy and be interpreted in a manner that in the case of
          Participants who are or may be subject to Section 16 of the Exchange
          Act satisfies the applicable requirements of Rule 16b-3 so that such
          persons will be entitled to the benefits of Rule 16b-3 or other
          exemptive rules under Section 16 of the Exchange Act and will not be
          subjected to avoidable liability thereunder. If any provision of this
          Plan or of any Award or any prior action by the Committee would
          otherwise frustrate or conflict with the intent expressed above, that
          provision to the extent possible shall be interpreted and deemed
          amended so as to avoid such conflict, but to the extent of any
          remaining irreconcilable conflict with such intent as to such persons
          in the circumstances, such provision shall be deemed void.

     (ii) It is the further intent of the Company that options or Stock
          Appreciation Rights with an exercise or base price not less than Fair
          Market Value on the date of grant, that are granted to or held by a
          Section 16 Person, shall qualify as performance-based compensation
          under Section 162(m) of the Code, and this Plan shall be interpreted
          consistent with such intent.

VI.11. CAPTIONS

     Captions and headings are given to the sections and subsections of this
Plan solely as a convenience to facilitate reference. Such headings shall not be
deemed in any way material or relevant to the construction or interpretation of
the Plan or any provision thereof.

VI.12. NON-EXCLUSIVITY OF PLAN

     Nothing in this Plan shall limit or be deemed to limit the authority of the
Board or the Committee to grant awards or authorize any other compensation, with
or without reference to the Common Stock under any other plan or authority.

                                       22

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