Document:

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                                                                    EXHIBIT 10.8

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                            ADMINISTRATION AGREEMENT

                                      AMONG

                       VOLKSWAGEN AUTO LEASE TRUST 2002-A,

                                    AS ISSUER

                                       AND

                                VW CREDIT, INC.,

                                AS ADMINISTRATOR

                                       AND

                              THE BANK OF NEW YORK,

                              AS INDENTURE TRUSTEE

                         DATED AS OF NOVEMBER [ ], 2002

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
<S>     <C>                                                                 <C>
1.      Certain Definitions....................................................1

2.      Duties of the Administrator............................................2

3.      Successor Servicer and Administrator..................................10

4.      Records...............................................................10

5.      Compensation..........................................................10

6.      Additional Information To Be Furnished to the Issuer..................10

7.      Independence of the Administrator.....................................10

8.      No Joint Venture......................................................10

9.      Other Activities of Administrator.....................................10

10.     Term of Agreement, Resignation and Removal of Administrator...........11

11.     Action upon Termination, Resignation or Removal.......................12

12.     Notices...............................................................12

13.     Amendment.............................................................12

14.     Successors and Assigns................................................13

15.     GOVERNING LAW.........................................................13

16.     Headings..............................................................13

17.     Separate Counterparts.................................................13

18.     Severability of Provisions............................................13

19.     Not Applicable to VCI in Other Capacities.............................13

20.     Limitation of Liability of Owner Trustee and Indenture Trustee........13

21.     Third-Party Beneficiary...............................................14

22.     Submission to Jurisdiction............................................14

23.     Nonpetition Covenant..................................................14

24.     Each SUBI Separate; Assignees of SUBI.................................15
</TABLE>

                                      -i-
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        THIS ADMINISTRATION AGREEMENT, made as of November [ ], 2002 (this
"Agreement"), is among VOLKSWAGEN AUTO LEASE TRUST 2002-A, a Delaware common law
trust (the "Issuer"), by U.S. Bank Trust National Association, not in its
individual capacity but solely as owner trustee, VW CREDIT, INC., a Delaware
corporation ("VCI"), as administrator (in such capacity, the "Administrator"),
and THE BANK OF NEW YORK, a New York banking corporation, not in its individual
capacity but solely as Indenture Trustee (the "Indenture Trustee").

                              W I T N E S S E T H :

        WHEREAS, the Issuer is issuing the __% Auto Lease Asset Backed Class A-1
Notes, the __% Auto Lease Asset Backed Class A-2 Notes, the __% Auto Lease Asset
Backed Class A-3 Notes and the __% Auto Lease Asset Backed Class A-4 Notes
(collectively, the "Notes") on the date hereof pursuant to the Indenture between
the Issuer and the Indenture Trustee;

        WHEREAS, Volkswagen Auto Lease Underwritten Funding, LLC (the
"Transferor") will hold the Certificates evidencing a beneficial ownership
interest in the Issuer pursuant to the Trust Agreement;

        WHEREAS, the Issuer has entered into (or assumed) certain agreements in
connection with the issuance of the Notes, including (i) the Trust Agreement,
(ii) the SUBI Sale Agreement, (iii) the SUBI Transfer Agreement, (iv) the
Origination Trust Agreement, (v) the Transaction SUBI Supplement, (vi) the
Servicing Agreement, (vii) the Transaction SUBI Servicing Supplement, (viii) the
Indenture and (ix) the Depository Agreement;

        WHEREAS, pursuant to the Transaction Documents, the Issuer and U.S. Bank
Trust National Association, as Owner Trustee, are required to perform certain
duties in connection with (i) the Notes, (ii) the Collateral and (iii) the
Certificates;

        WHEREAS, the Issuer and the Owner Trustee desire to have the
Administrator perform certain of the duties of the Issuer and the Owner Trustee
referred to in the preceding clause, and to provide such additional services
consistent with the terms of this Agreement and the Transaction Documents as the
Issuer and the Owner Trustee may from time to time request; and

        WHEREAS, the Administrator has the capacity to provide the services
required hereby and is willing to perform such services for the Issuer and the
Owner Trustee on the terms set forth herein.

        NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, the parties agree as follows:

        1. Certain Definitions. Certain capitalized terms used in this Agreement
are defined in and shall have the respective meanings assigned to them in
Appendix A to the Indenture, dated as of November [ ], 2002 (the "Indenture"),
between the Issuer and the Indenture Trustee. The rules of construction set
forth in Appendix A to the Indenture shall be applicable to this Agreement.

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        2. Duties of the Administrator.

        (a)    Duties with Respect to the Indenture and the Depository
               Agreement. The Administrator agrees to perform its duties as
               Administrator and the duties of the Issuer and the Owner Trustee
               under the Indenture and the Depository Agreement. In addition,
               the Administrator shall consult with the Owner Trustee regarding
               the duties of the Issuer and the Owner Trustee under the
               Indenture and the Depository Agreement. The Administrator shall
               monitor the performance of the Issuer and shall advise the Owner
               Trustee when action is necessary to comply with the Issuer's or
               the Owner Trustee's duties under the Indenture and the Depository
               Agreement. The Administrator shall prepare for execution by the
               Issuer or the Owner Trustee or shall cause the preparation by
               other appropriate persons of all such documents, reports,
               filings, instruments, certificates, notices and opinions as it
               shall be the duty of the Issuer or the Owner Trustee to prepare,
               file or deliver pursuant to the Indenture and the Depository
               Agreement. In furtherance of the foregoing, the Administrator
               shall take all appropriate action that it is the duty of the
               Administrator, Issuer or the Owner Trustee to take pursuant to
               the Indenture and the Depository Agreement, including without
               limitation such actions as are required with respect to the
               following matters under the Indenture (parenthetical section
               references are to sections of the Indenture):

               (i)        directing the Indenture Trustee to authenticate and
                          deliver the Notes for original issue (Section 2.2);

               (ii)       pending the preparation of Definitive Notes, directing
                          the Indenture Trustee to authenticate and deliver
                          temporary Notes (Section 2.3);

               (iii)      if temporary Notes are issued, causing Definitive
                          Notes to be prepared without unreasonable delay
                          (Section 2.3);

               (iv)       causing the Note Register to be kept (Section 2.4);

               (v)        if a Person other than the Indenture Trustee is
                          appointed as Note Registrar, giving the Indenture
                          Trustee prompt written notice of such appointment and
                          the location, and any change in such location, of the
                          Note Register (Section 2.4);

               (vi)       directing the Indenture Trustee to authenticate and
                          deliver, in exchange for or in lieu of any mutilated,
                          destroyed, lost or stolen Note, a replacement Note
                          (Section 2.5);

               (vii)      delivering at any time to the Indenture Trustee for
                          cancellation any Notes previously authenticated and
                          delivered under the Indenture that the Issuer may have
                          acquired in any manner whatsoever (Section 2.7);

               (viii)     directing that cancelled Notes be destroyed or
                          returned to the Issuer (Section 2.7);

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               (ix)       directing the Indenture Trustee to release property
                          from the lien of the Indenture (Section 2.8);

               (x)        advising the Indenture Trustee in writing that the
                          Clearing Agency is no longer willing or able to
                          properly discharge its responsibilities as described
                          in the Depository Agreement (Section 2.11);

               (xi)       advising the Indenture Trustee in writing that the
                          Administrator elects to terminate the book-entry
                          system through the Clearing Agency (Section 2.11);

               (xii)      if Definitive Notes are issued and the Indenture
                          Trustee is not the Note Registrar, furnishing or
                          causing to be furnished to the Indenture Trustee a
                          list of the names and addresses of the Noteholders
                          (Section 2.11);

               (xiii)     directing the Indenture Trustee to appoint one or more
                          Authenticating Agents with power to act on behalf of
                          the Issuer (Section 2.12);

               (xiv)      appointing the Indenture Trustee as agent for the
                          Issuer to receive all surrenders, notices and demands
                          in respect of the Notes (Section 3.2);

               (xv)       causing each Paying Agent other than the Indenture
                          Trustee to execute and deliver to the Indenture
                          Trustee the instrument specified in the Indenture
                          regarding the duties of the Paying Agent (Section
                          3.3);

               (xvi)      directing any Paying Agent to pay to the Indenture
                          Trustee all sums held in trust by such Paying Agent
                          (Section 3.3);

               (xvii)     obtaining and maintaining, for the benefit of the
                          Indenture Trustee on behalf of the Noteholders, a
                          first lien on and a first priority, perfected security
                          interest in the Trust Estate (Section 3.5);

               (xviii)    preparing for execution (if necessary) and delivery of
                          all such supplements and amendments to the Indenture
                          and all such financing statements, continuation
                          statements, instruments of further assurance and other
                          instruments and taking such other action necessary or
                          advisable to protect the Trust Estate (Section 3.5);

               (xix)      designating the Indenture Trustee as the Issuer's
                          agent and attorney-in-fact to execute all financing
                          statements, continuation statements or other
                          instruments required to be executed (if any) pursuant
                          to the Indenture (Section 3.5);

               (xx)       furnishing the Closing Date to the Indenture Trustee
                          an Opinion of Counsel regarding the Trust Estate
                          (Section 3.6);

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               (xxi)      furnishing to the Indenture Trustee an annual Opinion
                          of Counsel regarding the Trust Estate (Section 3.6);

               (xxii)     punctually performing and observing all of the
                          Issuer's obligations and agreements contained in the
                          Indenture, the other Transaction Documents and the
                          instruments and agreements included in the Trust
                          Estate, including filing or causing to be filed all
                          UCC financing statements and continuation statements
                          required to be filed by the terms of the Indenture and
                          the other Transaction Documents in accordance with and
                          within the time periods provided for therein (Section
                          3.7);

               (xxiii)    delivering annually to the Indenture Trustee and each
                          Rating Agency an Officer's Certificate regarding the
                          Issuer's compliance with the Indenture (Section 3.9);

               (xxiv)     filing with the Indenture Trustee and the Commission
                          copies of the annual reports and such other
                          information, documents and reports as the Issuer may
                          be required to file with the Commission (Section 3.9);

               (xxv)      filing with the Indenture Trustee and the Commission
                          in accordance with rules and regulations prescribed
                          from time to time by the Commission such other
                          information, documents and reports with respect to
                          compliance by the Issuer with the conditions and
                          covenants of the Indenture as may be required from
                          time to time by such rules and regulations (Section
                          3.9);

               (xxvi)     supplying to the Indenture Trustee such summaries of
                          any information, documents and reports required to be
                          filed by the Issuer pursuant to the Indenture as may
                          be required pursuant to rules and regulations
                          prescribed from time to time by the Commission
                          (Section 3.9);

               (xxvii)    giving the Indenture Trustee and each Rating Agency
                          prompt written notice of each Indenture Default under
                          the Indenture (Section 3.11);

               (xxviii)   upon request of the Indenture Trustee, executing and
                          delivering such further instruments and doing such
                          further acts as may be reasonably necessary or proper
                          to carry out more effectively the purposes of the
                          Indenture (Section 3.12);

               (xxix)     on the Closing Date, delivering or causing to be
                          delivered to the Indenture Trustee the Transaction
                          SUBI Certificate (Section 3.13);

               (xxx)      complying with the requirements of all applicable
                          laws, the non-compliance with which would,
                          individually or in the aggregate, materially and
                          adversely affect the ability of the Issuer to perform
                          its obligations under the Notes, the Indenture or any
                          other Transaction Document (Section 3.14);

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               (xxxi)     promptly delivering to the Indenture Trustee and each
                          Rating Agency written notice in the form of an
                          Officer's Certificate of any Indenture Default, its
                          status and what action the Issuer is taking or
                          proposes to take with respect thereto (Section 5.1);

               (xxxii)    at least 15 days before the record date for any
                          payment to Noteholders pursuant to the Indenture,
                          mailing to each Noteholder and the Indenture Trustee a
                          notice that states the record date, the payment date
                          and the amount to be paid (Section 5.4);

               (xxxiii)   in connection with any action as to which Noteholders
                          are entitled to vote or consent under the Indenture
                          and the Notes, setting a record date for purposes of
                          determining the identity of Noteholders entitled to
                          vote or consent in accordance with TIA Section 316(c)
                          (Section 5.6);

               (xxxiv)    taking all such lawful action as the Indenture Trustee
                          may request to compel or secure the performance and
                          observance by the Servicer of its obligations to the
                          Issuer under or in connection with the Servicing
                          Agreement and the Transaction SUBI Servicing
                          Supplement, in accordance with the terms thereof, and
                          exercising any and all rights, remedies, powers and
                          privileges lawfully available to the Issuer under or
                          in connection with each such agreement to the extent
                          and in the manner directed by the Indenture Trustee
                          (Section 5.16);

               (xxxv)     promptly appointing a successor Indenture Trustee upon
                          the resignation or required removal of the Indenture
                          Trustee, or the failure of the Noteholders to appoint
                          a successor Indenture Trustee following the removal
                          without cause of the Indenture Trustee (Section 6.8);

               (xxxvi)    petitioning any court of competent jurisdiction for
                          the appointment of a successor Indenture Trustee if a
                          successor Indenture Trustee does not take office
                          within 45 days after the retiring Indenture Trustee
                          resigns or is removed (Section 6.8);

               (xxxvii)   acting jointly with the Indenture Trustee, executing
                          and delivering all instruments to appoint one or more
                          Persons to act as a co-trustee or co-trustees, or
                          separate trustee or separate trustees, of all or any
                          part of the Collateral, and vesting in such Person or
                          Persons, in such capacity and for the benefit of the
                          Noteholders, such title to the Trust Estate or any
                          part thereof and, subject to the provisions of the
                          Indenture, such powers, duties, obligations, rights
                          and trusts as the Indenture Trustee and the
                          Administrator may consider necessary or desirable
                          (Section 6.10);

               (xxxviii)  accepting the resignation of or removing any separate
                          trustee or co-trustee (Section 6.10);

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               (xxxix)    furnishing or causing to be furnished to the Indenture
                          Trustee (i) not more than five days after each Record
                          Date a list, in such form as the Indenture Trustee may
                          reasonably require, of the names and addresses of the
                          Noteholders as of such Record Date and (ii) at such
                          other times as the Indenture Trustee may request in
                          writing, within 30 days after receipt any such
                          request, a list of similar form and content as of a
                          date not more than ten days prior to the time such
                          list is furnished; provided, however, that so long as
                          the Indenture Trustee is the Note Registrar or the
                          Notes are issued as Book-Entry Notes, no such list
                          shall be required to be furnished to the Indenture
                          Trustee (Section 7.1);

               (xl)       causing the Servicer to deliver the Servicer
                          Certificate to the Indenture Trustee, the Owner
                          Trustee, the Administrator and each Paying Agent on
                          each Determination Date (Section 8.3);

               (xli)      directing the investment and reinvestment by the
                          Indenture Trustee of the funds in the Reserve Account
                          and the Collection Account in Permitted Investments
                          (Section 8.5);

               (xlii)     providing to the Indenture Trustee and the Owner
                          Trustee at least 20 days' prior notice of the
                          redemption of the Notes (Section 10.1);

               (xliii)    notifying each Rating Agency upon the redemption of
                          the Notes (Section 10.2);

               (xliv)     furnishing to the Indenture Trustee and each Rating
                          Agency (i) an Officer's Certificate stating that all
                          conditions precedent, if any, provided for in the
                          Indenture relating to any proposed action under any
                          provision of the Indenture have been complied with,
                          (ii) an Opinion of Counsel stating that in the opinion
                          of such counsel all such conditions precedent, if any,
                          have been complied with, and (iii) in the case of
                          conditions precedent compliance with which is subject
                          to verification by accountants, a certificate or
                          opinion of an accountant that satisfies TIA Section
                          314(c)(3), except that, in the case of any such
                          application or request as to which the furnishing of
                          such documents is specifically required by any
                          provision of this Indenture, no additional certificate
                          or opinion need be furnished (Section 11.1);

               (xlv)      prior to the deposit of any Collateral or other
                          property or securities with the Indenture Trustee that
                          is to be made the basis for the release of any
                          property or securities subject to the lien of the
                          Indenture, furnishing to the Indenture Trustee an
                          Officer's Certificate certifying or stating the
                          opinion of each Person signing such certificate as to
                          the fair value (within 90 days of such deposit) to the
                          Issuer of the Collateral or other property or
                          securities to be so deposited (Section 11.1);

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               (xlvi)     whenever the Administrator is required to furnish to
                          the Indenture Trustee an Officer's Certificate
                          certifying or stating the opinion of any signer
                          thereof as to the matters described in the immediately
                          preceding clause, also delivering to the Indenture
                          Trustee an Independent Certificate as to the same
                          matters (Section 11.1);

               (xlvii)    other than with respect to any release described in
                          clause (A) or (B) of Section 11.1(b)(v) of the
                          Indenture, whenever any property or securities are to
                          be released from the lien of the Indenture, furnishing
                          to the Indenture Trustee an Officer's Certificate
                          certifying or stating the opinion of each Person
                          signing such certificate as to the fair value (within
                          90 days of such release) of the property or securities
                          proposed to be released and stating that, in the
                          opinion of such Person, the proposed release will not
                          impair the security under the Indenture in
                          contravention of the provisions thereof (Section
                          11.1);

               (xlviii)   whenever the Issuer is required to furnish to the
                          Indenture Trustee an Officer's Certificate certifying
                          or stating the opinion of any signer thereof as to the
                          matters described in the immediately preceding clause,
                          also furnishing to the Indenture Trustee an
                          Independent Certificate as to the same matters
                          (Section 11.1); and

               (xlix)     if the Indenture is subject to recording in any
                          appropriate public recording offices, effecting such
                          recording accompanied by an Opinion of Counsel
                          (reasonably acceptable to the Indenture Trustee) to
                          the effect that such recording is necessary either for
                          the protection of the Noteholders or any other Person
                          secured under the Indenture or for the enforcement of
                          any right or remedy granted to the Indenture Trustee
                          under the Indenture (Section 11.13).

        (b)    Duties with Respect to the Trust Agreement. The Administrator
               shall perform the duties of the Administrator specified in
               Section 10.2 of the Trust Agreement required to be performed in
               connection with the resignation or removal of the Owner Trustee,
               and any other duties expressly required to be performed by the
               Administrator under the Trust Agreement.

        (c)    Compensation and Indemnification.  The Administrator will:

               (i)        pay to the Indenture Trustee and any separate trustee
                          or co-trustee appointed pursuant to Section 6.10 of
                          the Indenture (a "Separate Trustee") from time to time
                          such compensation as the Issuer, the Administrator and
                          the Indenture Trustee shall from time to time agree in
                          writing for services rendered under the Indenture
                          (which compensation shall not be limited by any law on
                          compensation of a trustee of an express trust);

               (ii)       except as otherwise expressly provided in the
                          Indenture, reimburse the Indenture Trustee and any
                          Separate Trustee for all reasonable expenses,

                                       7
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                          disbursements and advances reasonably incurred in
                          connection with the performance of their duties under
                          the Indenture;

               (iii)      indemnify the Indenture Trustee and any Separate
                          Trustee, in their respective individual capacities and
                          as trustees, and their successors, assigns, directors,
                          officers, employees and agents in accordance with
                          Section 6.7 of the Indenture;

               (iv)       defend any claim for which the Indenture Trustee or
                          any Separate Trustee seeks indemnity and pay the fees
                          and expenses of separate counsel of the Indenture
                          Trustee or any Separate Trustee related to such
                          defense;

               (v)        pay to the Owner Trustee from time to time
                          compensation for all services rendered by the Owner
                          Trustee under the Trust Agreement in accordance with a
                          Fee Letter between the Administrator and the Owner
                          Trustee (which compensation shall not be limited by
                          any provision of law in regard to the compensation of
                          a trustee of an express trust);

               (vi)       reimburse the Owner Trustee upon its request for all
                          reasonable expenses, disbursements and advances
                          incurred or made by the Owner Trustee in accordance
                          with any provision of the Trust Agreement (including
                          the reasonable compensation, expenses and
                          disbursements of such agents and counsel as the Owner
                          Trustee may employ in connection with the exercise and
                          performance of its rights and its duties under the
                          Trust Agreement), except any such expense that may be
                          attributable to the Owner Trustee's willful
                          misconduct, gross negligence or bad faith; and

               (vii)      indemnify the Owner Trustee in its individual capacity
                          and as trustee and its successors, assigns, directors,
                          officers, employees and agents in accordance with
                          Section 8.2 of the Trust Agreement;

               provided that, notwithstanding anything to the contrary contained
               herein or in any other Transaction Document, clauses (i) through
               (vii) above shall survive the termination of this Agreement.

        (d)    Additional Duties.

               (i)        In addition to the duties of the Administrator set
                          forth above, the Administrator shall perform such
                          calculations and shall prepare for execution by the
                          Issuer or the Owner Trustee or shall cause the
                          preparation by other appropriate Persons of all such
                          documents, reports, filings, tax returns, instruments,
                          certificates, notices and opinions as it shall be the
                          duty of the Issuer or the Owner Trustee to prepare,
                          file or deliver pursuant to the Transaction Documents
                          or any securities laws, and at the request of the
                          Owner Trustee shall take all appropriate action that
                          it is the duty of the Issuer or the Owner Trustee to
                          take pursuant to the Transaction Documents or any
                          securities laws. Subject to Section 7 of this
                          Agreement, and in accordance with the directions of
                          the Owner Trustee, the

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                          Administrator shall administer, perform or supervise
                          the performance of such other activities in connection
                          with the Collateral (including the Transaction
                          Documents) as are not covered by any of the foregoing
                          provisions and as are expressly requested by the Owner
                          Trustee and are reasonably within the capability of
                          the Administrator. The Administrator shall send a copy
                          to the Owner Trustee of all such documents, filings,
                          tax returns, instruments, certificates, notices or
                          opinions which the Administrator is required to
                          prepare, file or deliver hereunder on behalf of the
                          Issuer. Notwithstanding anything to the contrary
                          herein or in any Transaction Document, the Owner
                          Trustee shall not be required to execute, deliver or
                          certify on behalf of the Issuer or any other Person
                          any filings, certificates, affidavits or other
                          instruments required under the Sarbanes-Oxley Act of
                          2002.

               (ii)       In carrying out the foregoing duties or any of its
                          other obligations under this Agreement, the
                          Administrator may enter into transactions with or
                          otherwise deal with any of its Affiliates; provided,
                          however, that the terms of any such transactions or
                          dealings shall be in accordance with any directions
                          received from the Issuer or the Owner Trustee and
                          shall be, in the Administrator's opinion, no less
                          favorable to the Issuer or the Owner Trustee than
                          would be available from Persons that are not
                          Affiliates of the Administrator.

        (e)    Non-Ministerial Matters; Exceptions to Administrator Duties.

               (i)        Notwithstanding anything to the contrary in this
                          Agreement, with respect to matters that in the
                          reasonable judgment of the Administrator are
                          non-ministerial, the Administrator shall not take any
                          action unless, within a reasonable time before the
                          taking of such action, the Administrator shall have
                          notified the Owner Trustee of the proposed action and
                          the Owner Trustee shall not have withheld consent or
                          provided an alternative direction. For the purpose of
                          the preceding sentence, "non-ministerial matters"
                          shall include, without limitation:

                          (A)  the initiation of any claim or lawsuit by the
                               Issuer and the compromise of any action, claim or
                               lawsuit brought by or against the Issuer;

                          (B)  the appointment of successor Note Registrars,
                               successor Paying Agents, successor Indenture
                               Trustees, successor Administrators or successor
                               Servicers, or the consent to the assignment by
                               the Note Registrar, Paying Agent or Indenture
                               Trustee of its obligations under the Indenture;
                               and

                          (C)  the removal of the Indenture Trustee.

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               (ii)       Notwithstanding anything to the contrary in this
                          Agreement, the Administrator shall not be obligated
                          to, and shall not, (x) make any payments to the
                          Noteholders under the Transaction Documents, (y)
                          except as provided in the Transaction Documents, sell
                          the Trust Estate or (z) take any other action that the
                          Issuer or the Owner Trustee directs the Administrator
                          not to take on its behalf.

        3. Successor Servicer and Administrator. The Issuer shall undertake, as
promptly as possible after the termination of the Servicer pursuant to Article
VIII of the Transaction SUBI Servicing Supplement, to enforce the provisions of
Article VIII of the Transaction SUBI Servicing Supplement with respect to the
appointment of a successor Servicer. Such successor Servicer shall, upon
compliance with Sections 10(e)(ii) and (iii) of this Agreement, become the
successor Administrator hereunder.

        4. Records. The Administrator shall maintain appropriate books of
account and records relating to services performed hereunder, which books of
account and records shall be accessible for inspection by the Issuer and the
Transferor at any time during normal business hours.

        5. Compensation. As compensation for the performance of the
Administrator's obligations under this Agreement and as reimbursement for its
expenses related thereto, the Servicer shall pay the Administrator the
Administration Fee in accordance with Section 8.4 of the Indenture.

        6. Additional Information To Be Furnished to the Issuer. The
Administrator shall furnish to the Issuer from time to time such additional
information regarding the Collateral as the Issuer shall reasonably request.

        7. Independence of the Administrator. For all purposes of this
Agreement, the Administrator shall be an independent contractor and shall not be
subject to the supervision of the Issuer or the Owner Trustee with respect to
the manner in which it accomplishes the performance of its obligations
hereunder. Unless expressly authorized by the Issuer, the Administrator shall
have no authority to represent the Issuer or the Owner Trustee in any way and
shall not otherwise be deemed an agent of the Issuer or the Owner Trustee.

        8. No Joint Venture. Nothing contained in this Agreement (a) shall
constitute the Administrator and either of the Issuer or the Owner Trustee as
members of any partnership, joint venture, association, syndicate,
unincorporated business or other separate entity, (b) shall be construed to
impose any liability as such on any of them or (c) shall be deemed to confer on
any of them any express, implied or apparent authority to incur any obligation
or liability on behalf of the others.

        9. Other Activities of Administrator. Nothing herein shall prevent the
Administrator or its Affiliates from engaging in other businesses or, in its
sole discretion, from acting in a similar capacity as an administrator for any
other Person or entity even though such Person or entity may engage in business
activities similar to those of the Issuer, the Owner Trustee or the Indenture
Trustee.

                                       10
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        10.    Term of Agreement, Resignation and Removal of Administrator.

        (a)    This Agreement shall continue in force until the dissolution of
               the Issuer, upon which event this Agreement shall automatically
               terminate.

        (b)    Subject to Section 10(e), the Administrator may resign its duties
               hereunder by providing the Issuer with at least 60 days' prior
               written notice.

        (c)    Subject to Section 10(e), the Issuer may remove the Administrator
               without cause by providing the Administrator with at least 60
               days' prior written notice.

        (d)    Subject to Section 10(e), at the sole option of the Issuer, the
               Administrator may be removed immediately upon written notice of
               termination from the Issuer to the Administrator if any of the
               following events (each, an "Administrator Replacement Event")
               shall occur:

               (i)    any failure by the Administrator to duly observe or
                      perform in any material respect any of its covenants or
                      agreements in this Agreement, which failure materially and
                      adversely affects the rights of any holder of the
                      Transaction SUBI Certificate or the Noteholders, and which
                      continues unremedied for 90 days after discovery thereof
                      by an officer of the Administrator or receipt by the
                      Administrator of written notice thereof from the Indenture
                      Trustee or Noteholders evidencing at least a majority of
                      the Outstanding Note Amount, voting together as a single
                      class;

               (ii)   any representation or warranty of the Administrator made
                      in this Agreement or any other Transaction Document to
                      which the Administrator is a party or by which it is bound
                      shall prove to be incorrect in any material respect when
                      made, which failure materially and adversely affects the
                      rights of any holder of the Transaction SUBI Certificate
                      or the Noteholders, and such failure continues unremedied
                      for 90 days after discovery thereof by an officer of the
                      Administrator or receipt by the Administrator of written
                      notice thereof from the Indenture Trustee or Noteholders
                      evidencing at least a majority of the Outstanding Note
                      Amount, voting together as a single class; it being
                      understood that any repurchase of a Unit by VCI pursuant
                      to Section 2.3 of the SUBI Sale Agreement shall be deemed
                      to remedy any incorrect representation or warranty with
                      respect to such Unit; or

               (iii)  the Administrator suffers a Bankruptcy Event;

provided, however, that a delay in or failure of performance referred to under
clauses (i) or (ii) above for a period of 150 days will not constitute an
Administrator Replacement Event if such delay or failure was caused by force
majeure or other similar occurrence.

        The Administrator agrees that if any of the events specified in clauses
(ii) or (iii) of this Section 10(d) shall occur, it shall give written notice
thereof to the Issuer and the Indenture Trustee within seven days after the
occurrence of such event.

                                       11
<PAGE>

        (e)    No resignation or removal of the Administrator pursuant to this
               Section 10 shall be effective until (i) a successor Administrator
               shall have been appointed by the Issuer, (ii) such successor
               Administrator shall have agreed in writing to be bound by the
               terms of this Agreement in the same manner as the Administrator
               is bound hereunder, and (iii) the Rating Agency Condition has
               been satisfied with respect to such proposed appointment.

        11. Action upon Termination, Resignation or Removal. Promptly upon the
effective date of termination of this Agreement pursuant to Section 10(a) or the
resignation or removal of the Administrator pursuant to Section 10(b) or (c),
respectively, the Administrator shall be entitled to be paid all fees and
reimbursable expenses accruing to it to the effective date of such termination,
resignation or removal. The Administrator shall forthwith upon such termination
pursuant to Section 10(a) deliver to the Issuer all property and documents of or
relating to the Collateral then in the custody of the Administrator. In the
event of the resignation or removal of the Administrator pursuant to Section
10(b) or (c), respectively, the Administrator shall cooperate with the Issuer
and take all reasonable steps requested to assist the Issuer in making an
orderly transfer of the duties of the Administrator.

        12. Notices. All demands, notices and communications upon or to the
Issuer, the Owner Trustee, the Administrator or the Indenture Trustee shall be
delivered as specified in Section 11.4 of the Indenture.

        13. Amendment.

        (a)    Any term or provision of this Agreement may be amended by the
               parties hereto; provided that such amendment shall not, as
               evidenced by an Opinion of Counsel delivered to the Indenture
               Trustee, materially and adversely affect the interests of the
               Noteholders.

        (b)    Any term or provision of this Agreement may be amended without
               the consent of the Noteholders or any other Person in any
               respect, including (without limitation) to cure any ambiguity,
               correct or supplement any provision in this Agreement, add any
               provisions to this Agreement, change in any manner or eliminate
               any of the provisions in this Agreement or modify the rights of
               the parties to this Agreement; provided that such amendment shall
               not, in the good faith judgment of the Administrator and the
               Issuer, materially and adversely affect the interests of the
               Noteholders.

        (c)    Notwithstanding anything herein to the contrary, any term or
               provision of this Agreement may be amended without the consent of
               any of the Noteholders or any other Person to add, modify or
               eliminate any provisions as may be necessary or advisable in
               order to comply with or obtain more favorable treatment under any
               law or regulation or any accounting rule or principle; it being a
               condition to any such amendment that the Rating Agency Condition
               shall have been satisfied.

        (d)    Prior to the execution of any such amendment, the Buyer shall
               furnish at least ten (10) days' prior written notification (or,
               if ten (10) days' advance notice is

                                       12
<PAGE>

               impracticable, as much advance notice as is practicable) of the
               substance of such amendment to each Rating Agency; and no later
               than ten (10) Business Days after the execution of any such
               amendment or consent, the Buyer shall furnish a copy of such
               amendment or consent to each Rating Agency, the Owner Trustee and
               the Indenture Trustee.

        (e)    Prior to the execution of any amendment to this Agreement, the
               Transferor, the Owner Trustee, the Indenture Trustee and the
               Origination Trustees shall be entitled to receive and
               conclusively rely upon an Opinion of Counsel stating that the
               execution of such amendment is authorized or permitted by this
               Agreement and that all conditions precedent to the execution and
               delivery of such amendment have been satisfied.

        14. Successors and Assigns. This Agreement may not be assigned by the
Administrator unless such assignment is previously consented to in writing by
the Issuer and the Owner Trustee and subject to the satisfaction of the Rating
Agency Condition. An assignment with such consent and satisfaction, if accepted
by the assignee, shall bind the assignee hereunder in the same manner as the
Administrator is bound hereunder. This Agreement shall bind any successors or
assigns of the parties hereto.

        15. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS OR ANY OTHER
JURISDICTION'S CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

        16. Headings. The section headings hereof have been inserted for
convenience of reference only and shall not define or limit any of the terms or
provisions hereof.

        17. Separate Counterparts. This Agreement may be executed by the parties
in separate counterparts, each of which when so executed and delivered shall be
an original, but all such counterparts shall together constitute but one and the
same instrument.

        18. Severability of Provisions. If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall for any reason
whatsoever be held invalid, then such covenants, agreements, provisions or terms
shall be deemed severable from the remaining covenants, agreements, provisions
or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Notes or the
rights of the Holders thereof.

        19. Not Applicable to VCI in Other Capacities. Nothing in this Agreement
shall affect any obligation VCI may have in any other capacity.

        20. Limitation of Liability of Owner Trustee and Indenture Trustee.

        (a)    Notwithstanding anything contained herein to the contrary, this
               instrument has been executed by U.S. Bank Delaware not in its
               individual capacity but solely as

                                       13
<PAGE>

               Owner Trustee and in no event shall U.S. Bank Delaware have any
               liability for the representations, warranties, covenants,
               agreements or other obligations of the Issuer hereunder or in any
               of the certificates, notices or agreements delivered pursuant
               hereto, as to all of which recourse shall be had solely to the
               assets of the Issuer. For all purposes of this Agreement, in the
               performance of any duties or obligations of the Issuer hereunder,
               the Owner Trustee shall be subject to, and entitled to the
               benefits of, the terms and provisions of the Trust Agreement.

        (b)    Notwithstanding anything contained herein to the contrary, this
               Agreement has been executed by The Bank of New York not in its
               individual capacity but solely in its capacity as Indenture
               Trustee and in no event shall The Bank of New York have any
               liability for the representations, warranties, covenants,
               agreements or other obligations of the Issuer hereunder or in any
               of the certificates, notices or agreements delivered pursuant
               hereto, as to all of which recourse shall be had solely to the
               assets of the Issuer.

        21. Third-Party Beneficiary. The Owner Trustee is a third-party
beneficiary to this Agreement and is entitled to the rights and benefits
hereunder and may enforce the provisions hereof as if it were a party hereto.

        22. Submission to Jurisdiction. Each of the parties hereto hereby
irrevocably and unconditionally:

        (a)    submits for itself and its property in any legal action or
               proceeding relating to this Agreement or any documents executed
               and delivered in connection herewith, or for recognition and
               enforcement of any judgment in respect thereof, to the
               nonexclusive general jurisdiction of the courts of the State of
               New York, the courts of the United States of America for the
               Southern District of New York and appellate courts from any
               thereof;

        (b)    consents that any such action or proceeding may be brought in
               such courts and waives any objection that it may now or hereafter
               have to the venue of such action or proceeding in any such court
               or that such action or proceeding was brought in an inconvenient
               court and agrees not to plead or claim the same;

        (c)    agrees that service of process in any such action or proceeding
               may be effected by mailing a copy thereof by registered or
               certified mail (or any substantially similar form of mail),
               postage prepaid, to such Person at its address determined in
               accordance with Section 11.4 of the Indenture; and

        (d)    agrees that nothing herein shall affect the right to effect
               service of process in any other manner permitted by law or shall
               limit the right to sue in any other jurisdiction.

        23. Nonpetition Covenant. With respect to each Bankruptcy Remote Party,
each party hereto agrees that, prior to the date which is one year and one day
after payment in full of all obligations under each Financing (i) no party
hereto shall authorize such Bankruptcy Remote Party to commence a voluntary
winding-up or other voluntary case or other proceeding seeking

                                       14
<PAGE>

liquidation, reorganization or other relief with respect to such Bankruptcy
Remote Party or its debts under any bankruptcy, insolvency or other similar law
now or hereafter in effect in any jurisdiction or seeking the appointment of an
administrator, a trustee, receiver, liquidator, custodian or other similar
official with respect to such Bankruptcy Remote Party or any substantial part of
its property or to consent to any such relief or to the appointment of or taking
possession by any such official in an involuntary case or other proceeding
commenced against such Bankruptcy Remote Party, or to make a general assignment
for the benefit of any party hereto or any other creditor of such Bankruptcy
Remote Party, and (ii) none of the parties hereto shall commence or join with
any other Person in commencing any proceeding against such Bankruptcy Remote
Party under any bankruptcy, reorganization, liquidation or insolvency law or
statute now or hereafter in effect in any jurisdiction. Each of the parties
hereto agrees that, prior to the date which is one year and one day after the
payment in full of all obligations under each Financing, it will not institute
against, or join any other Person in instituting against, any Bankruptcy Remote
Party an action in bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings or similar proceeding under the laws of the United
States or any State of the United States.

        24. Each SUBI Separate; Assignees of SUBI. Each party hereto
acknowledges and agrees that (a) the Transaction SUBI is a separate series of
the Origination Trust as provided in Section 3806(b)(2) of Chapter 38 of Title
12 of the Delaware Code, 12 Del. Code Section 3801 et seq., (b)(i) the debts,
liabilities, obligations and expenses incurred, contracted for or otherwise
existing with respect to the Transaction SUBI or the Transaction SUBI Portfolio
shall be enforceable against the Transaction SUBI Portfolio only and not against
any Transaction SUBI Assets or the UTI Portfolio and (ii) the debts,
liabilities, obligations and expenses incurred, contracted for or otherwise
existing with respect to any Other SUBI, any Other SUBI Portfolio, the UTI or
the UTI Portfolio shall be enforceable against such Other SUBI Portfolio or the
UTI Portfolio only, as applicable, and not against the Transaction SUBI or any
Other SUBI Assets, (c) except to the extent required by law, UTI Assets or SUBI
Assets with respect to any SUBI (other than the Transaction SUBI) shall not be
subject to the claims, debts, liabilities, expenses or obligations arising from
or with respect to the Transaction SUBI in respect of such claim, (d)(i) no
creditor or holder of a claim relating to the Transaction SUBI or the
Transaction SUBI Portfolio shall be entitled to maintain any action against or
recover any assets allocated to the UTI or the UTI Portfolio or any Other SUBI
or the assets allocated thereto, and (ii) no creditor or holder of a claim
relating to the UTI, the UTI Portfolio or any SUBI other than the Transaction
SUBI or any SUBI Assets other than the Transaction SUBI Portfolio shall be
entitled to maintain any action against or recover any assets allocated to the
Transaction SUBI, and (e) any purchaser, assignee or pledgee of an interest in
the Transaction SUBI or the Transaction SUBI Certificate, any Other SUBI, any
Other SUBI Certificate must, prior to or contemporaneously with the grant of any
such assignment, pledge or security interest, (i) give to the Origination Trust
a non-petition covenant substantially similar to that set forth in Section 6.9
of the Origination Trust Agreement, and (ii) execute an agreement for the
benefit of each holder, assignee or pledgee from time to time of the UTI or UTI
Certificate and any Other SUBI or Other SUBI Certificate, to release all claims
to the assets of the Origination Trust allocated to the UTI and each Other SUBI
Portfolio and in the event that such release is not given effect, to fully
subordinate all claims it may be deemed to have against the assets of the
Origination Trust allocated to the UTI Portfolio and each Other SUBI Portfolio.

                                       15
<PAGE>

                            [Signature Page Follows]

                                       16
<PAGE>

        IN WITNESS WHEREOF, the parties have caused this Administration
Agreement to be duly executed by their respective officers as of the day and
year first above written.

                                   VOLKSWAGEN AUTO LEASE TRUST 2002-A

                                   By: U.S. Bank Trust National Association, not
                                       in its individual capacity but solely as
                                       Owner Trustee

                                   By:
                                      ------------------------------------------
                                   Name:
                                   Title:

                                   VW CREDIT, INC.,
                                   as Administrator

                                   By:
                                      ------------------------------------------
                                   Name:
                                   Title:

                                   By:
                                      ------------------------------------------
                                   Name:
                                   Title:

                                   THE BANK OF NEW YORK,
                                   as Indenture Trustee

                                   By:
                                      ------------------------------------------
                                   Name:
                                   Title:

                                      S-1<PAGE>
                                                                   EXHIBIT 10.20

                                 AUTOZONE, INC.
                          EXECUTIVE STOCK PURCHASE PLAN

         AUTOZONE, INC., a corporation organized under the laws of the State of
Nevada, by resolution of its Board of Directors on October 2, 2001, hereby
adopts the AutoZone, Inc. Executive Stock Purchase Plan (the "Plan"), subject to
the approval of the Plan by the stockholders of the Company as provided in
paragraph 15 of the Plan.

         The purposes of the Plan are as follows:

    (1) To assist selected employees of the Company or of a Parent or Subsidiary
of the Company in acquiring a stock ownership interest in the Company above the
maximum amount of stock ownership interest allowable pursuant to the AutoZone,
Inc. Second Amended and Restated Employee Stock Purchase Plan (the "ESPP"). The
Plan is not intended to qualify as an "employee stock purchase plan" under
Section 423 of the Internal Revenue Code of 1986, as amended.

    (2) To help selected employees provide for their future security and to
encourage them to remain in the employment of the Company or of a Parent or
Subsidiary of the Company.

1.       DEFINITIONS

         Whenever any of the following terms are used in the Plan with the first
letter or letters capitalized, they shall have the meaning specified below
unless the context clearly indicates to the contrary. The masculine pronoun
shall include the feminine and neuter and the singular shall include the plural
where the context so indicates:

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

    (b) "Cause" shall mean the willful engagement by the Employee in conduct
which is demonstrably and materially injurious to the Company, monetarily or
otherwise, as determined by the Committee.

    (c) "Code" shall mean the Internal Revenue Code of 1986, as amended.

    (d) "Committee" shall mean the Compensation Committee of the Board appointed
to administer the Plan pursuant to paragraph 12.

    (e) "Company" shall mean AutoZone, Inc., a Nevada corporation.

    (f) "Date of Exercise" shall mean with respect to any Option (i) the March
31 of the Plan Year in which the Option was granted (in the case of an Option
granted on January 1), (ii) the June 30 of the Plan Year in which the Option was
granted (in the case of an Option granted on April 1), (iii) the September 30 of
the Plan Year in which the Option was granted (in the case of an Option granted
on July 1), (iv) the December 31 of the Plan Year in which the Option was

<PAGE>

granted (in the case of an Option granted on October 1) or (v) such other day,
as may be determined by the Committee, of the Plan Year in which the Option was
granted.

    (g) "Date of Grant" shall mean the date upon which an Option is granted, as
set forth in subparagraph 3(a).

    (h) "Disability" shall mean a permanent and total disability within the
meaning of Section 22(e)(3) of the Code, or such other definition as the
Committee shall provide in its discretion.

    (i) "Eligible Compensation" shall mean (i) the Eligible Employee's rate of
pay for the immediately preceding fiscal year based on the base salary plus
annual incentive compensation paid for the fiscal year, if the Eligible Employee
was employed by the Company for the full preceding fiscal year, otherwise (ii)
the Eligible Employee's annualized current salary plus any annual incentive
compensation accrued for the fiscal year as of the Date of Grant.

    (j) "Eligible Employee" shall mean an employee of the Company and those of
any present or future Parent or Subsidiary of the Company incorporated under the
laws of a state of the United States of America who is selected by the Committee
and designated in writing to be eligible to participate in the Plan.

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

    (l) "Form" shall mean either a paper form or a form on electronic media,
prepared by the Company.

    (m) "Normal Retirement Date" shall mean a Participant's normal retirement
date as set forth in the AutoZone, Inc. Associate's Pension Plan, as it may be
amended from time to time.

    (n) "Option" shall mean an option granted under the Plan to an Eligible
Employee to purchase shares of the Company's Stock.

    (o) "Option Period" shall mean with respect to any Option the period
beginning upon the Date of Grant and ending upon the Date of Exercise.

    (p) "Option Price" has the meaning set forth in subparagraph 4(b).

    (q) "Parent of the Company" shall mean any corporation, other than the
Company, in an unbroken chain of corporations ending with the Company if, at the
time of the granting of the Option each of the corporations other than the
Company owns stock possessing more than 50% of the total combined voting power
of all classes of stock in one of the other corporations in such chain.

    (r) "Participant" shall mean an Eligible Employee who has complied with the
provisions of subparagraph 3(b).

    (s) "Plan" shall mean the AutoZone, Inc. Executive Stock Purchase Plan.

<PAGE>

    (t) "Plan Year" shall mean the calendar year beginning on January 1 and
ending on December 31.

    (u) "Restricted Share Option" shall mean an Option for Restricted Shares.

    (v) "Restricted Share Option Price" has the meaning set forth in
subparagraph 4(b)(i).

    (w) "Restricted Shares" has the meaning set forth in subparagraph 4(c)(i).

    (x) "Securities Act" shall mean the Securities Act of 1933, as amended.

    (y) "Stock" shall mean shares of the Company's common stock.

    (z) "Subsidiary of the Company" shall mean any corporation other than the
Company in an unbroken chain of corporations beginning with the Company if, at
the time of the granting of the Option, each of the corporations other than the
last corporation in the unbroken chain owns stock possessing more than 50% of
the total combined voting power of all classes of stock in one of the other
corporations in such chain.

    (aa) "Unvested Share Option" shall mean an Option for Unvested Shares.

    (bb) "Unvested Share Option Price" has the meaning set forth in subparagraph
4(b)(ii).

    (cc) "Unvested Shares" has the meaning set forth in subparagraph 4(c)(ii).

2. STOCK SUBJECT TO THE PLAN

         Subject to the provisions of paragraph 9 (relating to adjustment upon
changes in the Stock), the Stock which may be sold pursuant to options granted
under the Plan shall not exceed in the aggregate 300,000 shares, and may be
unissued shares or reacquired shares or shares bought on the market for purposes
of the Plan.

3. GRANT OF OPTIONS

         (a) General Statement. Following the effective date of the Plan and
continuing while the Plan remains in force, the Company may offer Options under
the Plan to all Eligible Employees. These Options may be granted four times each
Plan Year on the January 1, the April 1, the July 1, or the October 1 of each
Plan Year, or on such other days as may be determined by the Committee. The term
of each Option shall be for three months and shall end on the March 31 (with
respect to a January 1 Date of Grant), the June 30 (with respect to an April 1
Date of Grant), the September 30 (with respect to a July 1 Date of Grant), or
the December 31 (with respect to an October 1 Date of Grant) of the Plan Year in
which the Option is granted or for such other term or Date of Exercise as may be
determined by the Committee. The Options are granted in consideration of past
and future services to the Company. Each Option shall consist of a Restricted
Share Option granted together with an Unvested Share Option, and exercise of an
Option may only occur by exercising both the Restricted Share Option and the
Unvested Share

<PAGE>
Option together. The number of shares of the Stock subject to each Restricted
Share Option shall be the whole number quotient of (i) the aggregate payroll
deductions authorized by each Participant in accordance with subparagraph 3(b)
for the Option Period divided by (ii) the Restricted Share Option Price. The
number of shares of the Stock subject to each Unvested Share Option shall be the
whole number quotient of the number of shares subject to the Restricted Share
Option for the Option Period divided by 5.66667.

         (b) Election To Participate; Payroll Deduction Authorization. An
Eligible Employee may participate in the Plan only by payroll deduction. Each
Eligible Employee who elects to participate in the Plan shall deliver to the
Company during the calendar month next preceding either a January 1 Date of
Grant, an April 1 Date of Grant, a July 1 Date of Grant, or an October 1 Date of
Grant, or on such other days as may be determined by the Committee, the properly
completed Form whereby the Eligible Employee gives notice of the election to
participate in the Plan as of the next following Date of Grant, and which shall
designate a stated dollar amount, in $5.00 increments, of Eligible Compensation
to be withheld on each regular payday and or bonus payment date. The stated
dollar amount may not be less than $5.00 and may not exceed 25% of the Eligible
Employee's Eligible Compensation.

         (c) Changes in Payroll Authorization. The payroll deduction
authorization referred to in subparagraph 3(b) may only be changed during the
enrollment period described in subparagraph 3(b) and may not be changed during
the Option Period, except as provided in paragraph 5.

4. EXERCISE OF OPTIONS

         (a) General Statement. Each Participant who has purchased the maximum
number of shares he or she is permitted to purchase pursuant to the
Participant's option granted for the concurrent option period under the ESPP
automatically will be deemed to have exercised the Option on each Date of
Exercise to the extent that the balance then in the Participant's account under
the Plan is sufficient to purchase at the Option Price whole shares of the Stock
subject to the Option. The excess balance, if any, in Participant's account
shall remain in the account and be available for the purchase of Stock on the
following Date of Exercise, provided that no withdrawal from the Plan or
termination of employment has occurred under paragraphs 5 or 6. The Option will
not be exercised and will be deemed canceled if the Participant has not
purchased the maximum number of shares he or she is permitted to purchase
pursuant to the Participant's option granted for the concurrent option period
under the ESPP.

         (b) "Option Price" Defined. The option price per share of the Stock
(the "Option Price") to be paid by each Participant on each exercise of an
Option shall be as follows:

                  (i) The Option Price to be paid by each Participant on each
         exercise of a Restricted Share Option (the "Restricted Share Option
         Price") shall be an amount equal to 100% of the fair market value of
         the Stock on the Date of Exercise. The fair market value of the Stock
         as of a given date shall be: (A) the closing price of the Stock on the
         principal exchange on which the Stock is then trading, if any, on such
         date, or, if the Stock was not traded on such date, then on the next
         preceding trading day during which a sale occurred; or (B) if such
         Stock is not traded on an exchange but is quoted on NASDAQ or a

<PAGE>

         successor quotation system, (1) the last sales price (if the Stock is
         then listed as a National Market Issue under the NASD National Market
         System) or (2) the mean between the closing representative bid and
         asked prices (in all other cases) for the Stock on such date as
         reported by NASDAQ or such successor quotation system; or (C) if such
         Stock is not publicly traded on an exchange and not quoted on NASDAQ or
         a successor quotation system, the mean between the closing bid and
         asked prices for the Stock on such date as determined in good faith by
         the Committee; or (D) if the Stock is not publicly traded, the fair
         market value established by the Committee acting in good faith.

                  (ii) The Option Price to be paid by each Participant on each
         exercise of an Unvested Share Option (the "Unvested Share Option
         Price") shall be zero.

         (c) Delivery of Share Certificates.

                  (i) For a number of shares of Stock which are purchased upon
         the exercise of a Restricted Share Option (the "Restricted Shares"),
         upon the first anniversary of the Date of Exercise and upon proper
         completion and submission of the proper Form to the Company, the
         Company shall deliver to such Participant a certificate issued in
         Participant's name for such number of shares. The Restricted Shares
         shall not be transferable or assignable by the Participant until the
         first anniversary of the Date of Exercise.

                  (ii) For a number of shares of Stock which are purchased upon
         the exercise of an Unvested Share Option (the "Unvested Shares"),
         subject to the Participant's continued employment with the Company
         except as provided below, on the first anniversary of the Date of
         Exercise and upon the proper completion and submission of the proper
         Form to the Company, the Company shall deliver to such Participant a
         certificate issued in Participant's name for such number of shares. If
         a Participant's employment with the Company is terminated prior to the
         first anniversary of the Date of Exercise, except by reason of the
         Participant's death, Disability, termination by the Company without
         Cause, or retirement on or after the Participant's Normal Retirement
         Date, the Unvested Shares shall be forfeited and the Participant shall
         have no further interest in the Unvested Shares. Upon the termination
         of a Participant's employment with the Company by reason of the
         Participant's death, Disability, termination by the Company without
         Cause, or retirement on or after the Participant's Normal Retirement
         Date, the Unvested Shares shall be vested and upon the proper
         completion and submission of the proper Form to the Company, the
         Company shall deliver to such Participant a certificate issued in
         Participant's name for the Unvested Shares.

                  (iii) In the event the Company is required to obtain from any
         commission or agency authority to issue any such certificate, the
         Company will seek to obtain such authority. The inability of the
         Company to obtain from any such commission or agency authority which
         counsel for the Company deems necessary for the lawful issuance of any
         such certificate shall relieve the Company from liability to any
         Participant except to return the amount of the balance in the account
         in cash.

5. WITHDRAWAL FROM THE PLAN

         (a) General Statement. Any Participant may withdraw from the Plan at
any time. A Participant who wishes to withdraw from the Plan must deliver to the
Company a notice of withdrawal in a Form prepared by the Company. The Company,
as soon as practicable following receipt of a Participant's notice of
withdrawal, will refund to the Participant the amount of the

<PAGE>
balance in the account under the Plan. Upon receipt of a Participant's notice of
withdrawal from the Plan, automatically and without any further act on the part
of the Participant, the payroll deduction authorization, any interest in the
Plan, and any Option under the Plan shall terminate.

         (b) Participation Following Withdrawal. A Participant who withdraws
from the Plan may participate again in the Plan on the next January 1, April 1,
July 1, or October 1 immediately following the date of withdrawal, or on such
other days as may be determined by the Committee.

         (c) Stock Subject to Plan. Notwithstanding a Participant's withdrawal
from the Plan, any Stock acquired under the Plan shall remain subject to the
terms of the Plan.

6. TERMINATION OF EMPLOYMENT

         (a) Termination of Employment Other Than By Retirement, Death,
Disability, or Without Cause. If the employment of a Participant is terminated
other than by reason of the Participant's (i) retirement on or after the
Participant's Normal Retirement Date, or earlier or later with the consent of
the Committee, (ii) death, (iii) Disability, or (iv) termination by the Company
without Cause, then participation in the Plan automatically shall terminate as
of the date of the termination of employment. As soon as practicable after such
a Participant's termination of employment, the Company will refund the amount of
the balance in that account under the Plan. Upon a Participant's termination of
employment under this subparagraph 6(a), any Option under the Plan shall
terminate.

         (b) Termination of Employment By Retirement, Disability, or Without
Cause. A Participant (i) who retires on or after the Participant's Normal
Retirement Date, or earlier or later with the consent of the Committee, (ii)
whose employment is terminated by reason of the Participant's Disability, or
(iii) whose employment is terminated by the Company without Cause, may by
written notice to the Company request payment of the balance in the account
under the Plan, in which event the Company shall make such payment as soon as
practicable after receiving such notice; upon receipt of such notice, the
Participant's interest in any Option under the Plan shall terminate. If the
Company does not receive such notice prior to the next Date of Exercise, such
Participant's Option will be deemed to have been exercised on such Date of
Exercise.

         (c) Termination of Employment By Death. If the employment of a
Participant is terminated by the Participant's death, the executor of the
Participant's will or the administrator of the Participant's estate by written
notice to the Company may request payment of the balance in the Participant's
account under the Plan, in which event the Company shall make such payment
without any interest thereon as soon as practicable after receiving such notice.
Upon receipt of such notice, the Participant's interest in the Plan and Option
under the Plan shall terminate. If the Company does not receive such notice
prior to the next Date of Exercise, the Participant's Option shall be deemed to
have been exercised on such Date of Exercise.

<PAGE>

7. RESTRICTION UPON ASSIGNMENT

         No Option or interest or right therein or part thereof shall be liable
for the debts, contracts or engagements of any Participant or any successor in
interest, nor shall any Option be subject to disposition by transfer,
alienation, anticipation, pledge, encumbrance, assignment or any other means,
whether such disposition be voluntary or involuntary or by operation of law by
judgment, levy, attachment, garnishment or any other legal or equitable
proceedings (including bankruptcy), and attempted disposition thereof shall be
null and void and of no effect; provided, however, that nothing in this
paragraph 7 shall prevent transfers by will or by the applicable laws of descent
and distribution. Except as provided in subparagraph 6(c), an Option may not be
exercised to any extent except by the Participant.

8. NO RIGHTS OF STOCKHOLDER UNTIL OPTION IS EXERCISED

         With respect to shares of the Stock subject to an Option, a Participant
shall not be deemed to be a stockholder of the Company, and shall not have any
of the rights or privileges of a stockholder. A Participant shall have the
rights and privileges of a stockholder of the Company when, but not until, an
Option is exercised.

9. CHANGES IN THE STOCK; ADJUSTMENTS OF AN OPTION

         Whenever any change is made in the Stock or to Options outstanding
under the Plan, by reason of stock dividend or by reason of division,
combination or reclassification of shares, appropriate action will be taken by
the Committee to adjust accordingly the number of shares of the Stock subject to
the Plan and the number and the Option Price of shares of the Stock subject to
the Options outstanding under the Plan.

10. USE OF FUNDS; NO INTEREST PAID

         All funds received or held by the Company under the Plan will be
included in the general funds of the Company free of any trust or other
restriction and may be used for any corporate purpose. No interest will be paid
to any Participant or credited to any account under the Plan with respect to
such funds.

11. AMENDMENT OF THE PLAN

         The Committee may amend, suspend or terminate the Plan at any time and
from time to time; provided, however, that approval by the vote of the holders
of more than 50% of the shares of the Company's Stock present in person or by
proxy and entitled to vote at a meeting shall be required to amend the Plan (i)
to increase the number of shares of Stock available under the Plan, (ii) to
decrease the Option Price below a price computed in the manner stated in
subparagraph 4(b), (iii) to materially alter the requirements for eligibility to
participate in the Plan, or (iv) to modify the Plan in a manner requiring
stockholder approval under the Code or the Exchange Act.

<PAGE>

12. ADMINISTRATION BY COMMITTEE; RULES AND REGULATIONS

         (a) Administration. The Plan shall be administered by the Compensation
Committee of the Board.

         (b) Duties And Powers of Committee. It shall be the duty of the
Committee to conduct the general administration of the Plan in accordance with
its provisions. The Committee shall have the power to interpret the Plan and the
Options and to adopt such rules for the administration, interpretation and
application of the Plan as are consistent therewith and to interpret, amend or
revoke any such rules. The Board shall have no right to exercise any of the
rights or duties of the Committee under the Plan.

         (c) Majority Rule. The Committee shall act by a majority of its members
in office. The Committee may act either by vote at a meeting or by a memorandum
or other written instrument signed by a majority of the Committee.

         (d) Professional Assistance; Good Faith Actions. The Committee may
employ attorneys, consultants, accountants, appraisers, brokers or other
persons. The Committee, the Company and its officers and directors shall be
entitled to rely upon the advice, opinions or valuations of any such persons.
All actions taken and all interpretations and determinations made by the
Committee in good faith shall be final and binding upon all Participants, the
Company and all other interested persons. No member of the Committee shall be
personally liable for any action, determination or interpretation made in good
faith with respect to the Plan or the Options, and all members of the Committee
shall be fully protected by the Company in respect to any such action,
determination or interpretation.

13. NO RIGHTS AS AN EMPLOYEE

         Nothing in the Plan shall be construed to give any person (including
any Eligible Employee or Participant) the right to remain in the employ of the
Company or a Parent or Subsidiary of the Company or to affect the right of the
Company or a Parent or Subsidiary of the Company to terminate the employment of
any person (including any Eligible Employee or Participant) at any time with or
without cause.

14. MERGER, ACQUISITION OR LIQUIDATION OF THE COMPANY

         In the event of the merger or consolidation of the Company into another
corporation, the acquisition by another corporation of all or substantially all
of the Company's assets or 80% or more of the Company's then outstanding voting
stock or the liquidation or dissolution of the Company, the Date of Exercise
with respect to outstanding Options shall be the business day immediately
preceding the effective date of such merger, consolidation, acquisition,
liquidation or dissolution unless the Committee shall, in its sole discretion,
provide for the assumption or substitution of such Options.
<PAGE>

15. TERM; APPROVAL BY STOCKHOLDERS

         No Option may be granted during any period of suspension or after
termination of the Plan, and in no event may any Option be granted under the
Plan after December 31, 2006, unless extended by the Board of Directors of the
Company. The Plan will be submitted for the approval of the Company's
stockholders within 12 months after the date of the Board of Directors' initial
adoption of the Plan.

16. EFFECT UPON OTHER PLANS

         The adoption of the Plan shall not affect any other compensation or
incentive plans in effect for the Company or a Parent or Subsidiary of the
Company. Nothing in this Plan shall be construed to limit the right of the
Company or a Parent or Subsidiary of the Company (a) to establish any other
forms of incentives or compensation for employees of the Company or a Parent or
Subsidiary of the Company or (b) to grant or assume options otherwise than under
this Plan in connection with any proper corporate purpose, including, but not by
way of limitation, the grant or assumption of options in connection with the
acquisition, by purchase, lease, merger, consolidation or otherwise, of the
business, stock or assets of any corporation, firm or association.

17. RULE 16B-3 RESTRICTIONS UPON DISPOSITIONS OF STOCK

         The Plan is intended to conform to the extent necessary with all
provisions of the Securities Act, and the Exchange Act and any and all
regulations and rules promulgated by the Securities and Exchange Commission
thereunder, including, without limitation, Rule 16b-3. Notwithstanding anything
herein to the contrary, the Plan shall be administered, and Options shall be
granted and may be exercised, only in such a manner as to conform to such laws,
rules and regulations. To the extent permitted by applicable law, the Plan and
Options granted hereunder shall be deemed amended to the extent necessary to
conform to such laws, rules and regulations.

18. NOTICES

         Any notice to be given under the terms of the Plan to the Company shall
be addressed to the Company in care of its Secretary or any designee and any
notice to be given to a Participant shall be addressed to Participant's last
address as reflected in the Company's records and may be given either in writing
or via electronic communication to the extent permitted by law. By a notice
given pursuant to this paragraph 18, either party may hereafter designate a
different address for notices to be given. Any notice which is required to be
given to a Participant shall, if the Participant is then deceased, be given to
the Participant's personal representative if such representative has previously
informed the Company of the representative status and address by notice under
this paragraph 18. Any notice shall have been deemed duly given when received by
the Company or when sent to a Participant by the Company to Participant's last
known mailing address or delivered to an electronic mailbox accessible by
Participant as permitted by law.

<PAGE>

19. TITLES

         Titles are provided herein for convenience only and are not to serve as
a basis for interpretation or construction of the Plan.

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