Document:

exv4w1

 

Exhibit 4.1

MCAFEE, INC.

1997 STOCK INCENTIVE PLAN

PLAN HISTORY

	 	 	 
	April 1997

	 	Board of Directors adopts Initial Plan with a share reserve
of 3,850,000 shares.
	 
	 	 
	December 1997

	 	Stockholders approve share increase of 2,000,000. Network
General and McAfee Associates merge to form McAfee, Inc.
	 
	 	 
	May 1998

	 	Stockholders approve share increase of 2,000,000.
	 
	 	 
	June 1998

	 	Board of Directors declares a 3-for-2 stock dividend,
resulting in a share reserve of 11,775,000.
	 
	 	 
	June 24, 1999

	 	Stockholders approve share increase of 4,700,000, resulting
in a shares reserve of 16,475,000.
	 
	 	 
	May 25, 2000

	 	Stockholders approve share increase of 6,000,000, resulting
in a shares reserve of 22,475,000.
	 
	 	 
	May 24, 2001

	 	Stockholders approve share increase of 5,000,000, resulting
in a shares reserve of 27,475,000.
	 
	 	 
	May 15, 2002

	 	Stockholders approve share increase of 5,000,000, resulting
in a shares reserve of 32,475,000.
	 
	 	 
	May 27, 2004

	 	Stockholders approve amendment to prohibit option repricing and
re-approve Internal Revenue Code Section 162(m) performance objectives.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page

	ARTICLE 1. INTRODUCTION
	 	 	1	 
	ARTICLE 2. ADMINISTRATION
	 	 	1	 
	2.1 Committee Composition
	 	 	1	 
	2.2 Committee Responsibilities.
	 	 	1	 
	ARTICLE 3. SHARES AVAILABLE FOR GRANTS
	 	 	2	 
	3.1 Basic Limitation.
	 	 	2	 
	3.2 Additional Shares
	 	 	2	 
	3.3 Dividend Equivalents
	 	 	2	 
	ARTICLE 4. ELIGIBILITY
	 	 	2	 
	4.1 Incentive Stock Options
	 	 	2	 
	4.2 Other Grants
	 	 	2	 
	4.3 Prospective Employees and Consultants
	 	 	2	 
	ARTICLE 5. OPTIONS
	 	 	3	 
	5.1 Stock Option Agreement
	 	 	3	 
	5.2 Number of Shares
	 	 	3	 
	5.3 Exercise Price
	 	 	3	 
	5.4 Exercisability and Term
	 	 	3	 
	5.5 Effect of Transfer of Control
	 	 	4	 
	5.6 Substitution of Options
	 	 	4	 
	5.7 Buyout Provisions
	 	 	4	 
	ARTICLE 6. PAYMENT FOR OPTION SHARES
	 	 	4	 
	6.1 General Rule
	 	 	4	 
	6.2 Surrender of Stock
	 	 	4	 
	6.3 Exercise/Sale
	 	 	4	 
	6.4 Exercise/Pledge
	 	 	5	 
	6.5 Promissory Note
	 	 	5	 
	6.6 Other Forms of Payment
	 	 	5	 
	ARTICLE 7. STOCK APPRECIATION RIGHTS
	 	 	5	 
	7.1 SAR Agreement
	 	 	5	 
	7.2 Number of Shares
	 	 	5	 
	7.3 Exercise Price
	 	 	5	 
	7.4 Exercisability and Term
	 	 	5	 
	7.5 Effect of Transfer of Control
	 	 	6	 
	7.6 Exercise of SARs
	 	 	6	 
	7.7 Modification or Assumption of SARs
	 	 	6	 
	ARTICLE 8. RESTRICTED SHARES
	 	 	6	 
	8.1 Restricted Stock Agreement
	 	 	6	 
	8.2 Payment for Awards
	 	 	6	 

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TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page

	8.3 Vesting Conditions
	 	 	6	 
	8.4 Effect of Transfer of Control
	 	 	7	 
	8.5 Voting and Dividend Rights
	 	 	7	 
	ARTICLE 9. STOCK UNITS
	 	 	7	 
	9.1 Stock Unit Agreement
	 	 	7	 
	9.2 Payment for Awards
	 	 	7	 
	9.3 Vesting Conditions
	 	 	7	 
	9.4 Effect of Transfer of Control
	 	 	8	 
	9.5 Voting and Dividend Rights
	 	 	8	 
	9.6 Form and Time of Settlement of Stock Units
	 	 	8	 
	9.7 Death of Recipient
	 	 	8	 
	9.8 Creditors’ Rights
	 	 	8	 
	ARTICLE 10. PROTECTION AGAINST DILUTION
	 	 	8	 
	10.1 Adjustments
	 	 	9	 
	10.2 Dissolution or Liquidation
	 	 	9	 
	10.3 Reorganizations
	 	 	9	 
	ARTICLE 11. DEFERRAL OF AWARDS
	 	 	9	 
	ARTICLE 12. AWARDS UNDER OTHER PLANS
	 	 	10	 
	ARTICLE 13. LIMITATION ON RIGHTS
	 	 	10	 
	13.1 Retention Rights
	 	 	10	 
	13.2 Stockholders’ Rights
	 	 	10	 
	13.3 Regulatory Requirements
	 	 	11	 
	ARTICLE 14. WITHHOLDING TAXES
	 	 	11	 
	14.1 General
	 	 	11	 
	14.2 Share Withholding
	 	 	11	 
	ARTICLE 15. FUTURE OF THE PLAN
	 	 	11	 
	15.1 Term of the Plan
	 	 	11	 
	15.2 Amendment or Termination
	 	 	11	 
	15.3 No Repricing.
	 	 	11	 
	ARTICLE 16. DEFINITIONS
	 	 	11	 
	ARTICLE 17. EXECUTION
	 	 	15	 

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McAfee, Inc.

1997 Stock Incentive Plan

(as amended on May 27, 2004)

ARTICLE 1. INTRODUCTION

     The Plan was adopted by the Board effective December 1, 1997. The purpose
of the Plan is to promote the long-term success of the Company and the creation
of stockholder value by (a) encouraging Employees, Outside Directors and
Consultants to focus on critical long-range objectives, (b) encouraging the
attraction and retention of Employees, Outside Directors and Consultants with
exceptional qualifications and (c) linking Employees, Outside Directors and
Consultants directly to stockholder interests through increased stock
ownership. The Plan seeks to achieve this purpose by providing for Awards in
the form of Restricted Shares, Stock Units, Options (which may constitute
incentive stock options or nonstatutory stock options) or stock appreciation
rights.

     The Plan shall be governed by, and construed in accordance with, the laws
of the State of Delaware (except their choice-of-law provisions).

ARTICLE 2. ADMINISTRATION

     2.1 Committee Composition. The Plan shall be administered by the
Committee. The Committee shall consist exclusively of two or more directors of
the Company, who shall be appointed by the Board. In addition, the composition
of the Committee shall satisfy:

          (a) Such requirements as the Securities and Exchange Commission may
establish for administrators acting under plans intended to qualify for
exemption under Rule 16b-3 (or its successor) under the Exchange Act; and

          (b) Such requirements as the Internal Revenue Service may establish for
outside directors acting under plans intended to qualify for exemption under
section 162(m)(4)(C) of the Code.

The Board may also appoint one or more separate committees of the Board, each
composed of one or more directors of the Company who need not satisfy the
foregoing requirements, who may administer the Plan with respect to Employees
and Consultants who are not considered officers or directors of the Company
under section 16 of the Exchange Act, may grant Awards under the Plan to such
Employees and Consultants and may determine all terms of such Awards.

     2.2 Committee Responsibilities. The Committee shall (a) select the Employees, Outside Directors and
Consultants who are to receive Awards under the Plan, (b) determine the type,
number, vesting requirements and other features and conditions of such Awards,
(c) interpret the

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Plan and (d) make all other decisions relating to the
operation of the Plan, including but not limited to delegation of authority to
an administrative committee in keeping with the Plan and applicable laws. The
Committee may adopt such rules or guidelines as it deems appropriate to
implement the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under
foreign tax laws and to otherwise accommodate the requirements of local laws
and procedures outside the United States. The Committee’s determinations under
the Plan shall be final and binding on all persons.

ARTICLE 3. SHARES AVAILABLE FOR GRANTS

     3.1 Basic Limitation. Common Shares issued pursuant to the Plan may be
authorized but unissued shares or treasury shares. The aggregate number of
Options, SARs, Stock Units and Restricted Shares awarded under the Plan shall
not exceed (a) 32,475,000 plus (b) the additional Common Shares described in
Section 3.2. The limitation of this Section 3.1 shall be subject to adjustment
pursuant to Article 10.

     3.2 Additional Shares. If Restricted Shares, Stock Units, Options or SARs
granted under this Plan or the Predecessor Plan are forfeited or if Options or
SARs granted under this Plan or the Predecessor Plan terminate for any other
reason before being exercised, then the corresponding Common Shares shall
become available for Awards under this Plan. If Stock Units are settled, then
only the number of Common Shares (if any) actually issued in settlement of such
Stock Units shall reduce the number available under Section 3.1 and the balance
shall again become available for Awards under the Plan. If SARs are exercised,
then only the number of Common Shares (if any) actually issued in settlement of
such SARs shall reduce the number available under Section 3.1 and the balance
shall again become available for Awards under the Plan. The foregoing
notwithstanding, the aggregate number of Common Shares that may be issued under
the Plan upon the exercise of ISOs shall not be increased when Restricted
Shares are forfeited.

     3.3 Dividend Equivalents. Any dividend equivalents paid or credited under
the Plan shall not be applied against the number of Restricted Shares, Stock
Units, Options or SARs available for Awards, whether or not such dividend
equivalents are converted into Stock Units.

ARTICLE 4. ELIGIBILITY

     4.1 Incentive Stock Options. Only Employees who are common-law employees of the Company, a Parent or
a Subsidiary on the date of grant shall be eligible for the grant of ISOs. In
addition, an Employee who owns more than 10% of the total combined voting power
of all classes of outstanding stock of the Company or any of its Parents or
Subsidiaries shall not be eligible for the grant of an ISO unless the
requirements set forth in section 422(c)(6) of the Code are satisfied.

     4.2 Other Grants. Only Employees, Outside Directors and Consultants shall
be eligible for the grant of Restricted Shares, Stock Units, NSOs or SARs.

     4.3 Prospective Employees and Consultants. For purposes of this Article
4, (a) “Employees” shall include prospective Employees to whom Awards are
granted in connection

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with written offers of employment from the Company, a
Parent or a Subsidiary and (b) “Consultants” shall include prospective
Consultants to whom Awards are granted in connection with written offers of
engagement from the Company, a Parent or a Subsidiary. If an ISO is granted to
a prospective Employee, the date when his or her service as an Employee
commences shall be deemed to be the date of grant of such ISO for all purposes
under the Plan (including, without limitation, Section 5.3). No Award granted
to a prospective Employee or prospective Consultant shall become exercisable or
vested unless and until his or her service as an Employee or Consultant
commences.

ARTICLE 5. OPTIONS

     5.1 Stock Option Agreement. Each grant of an Option under the Plan shall
be evidenced by a Stock Option Agreement between the Optionee and the Company.
Such Option shall be subject to all applicable terms of the Plan and may be
subject to any other terms that are not inconsistent with the Plan. The Stock
Option Agreement shall specify whether the Option is an ISO or an NSO. The
provisions of the various Stock Option Agreements entered into under the Plan
need not be identical. Options may be granted in consideration of a reduction
in the Optionee’s other compensation. A Stock Option Agreement may provide
that a new Option will be granted automatically to the Optionee when he or she
exercises a prior Option and pays the Exercise Price in the form described in
Section 6.2.

     5.2 Number of Shares. Each Stock Option Agreement shall specify the
number of Common Shares subject to the Option and shall provide for the
adjustment of such number in accordance with Article 10. Options granted to
any Optionee in a single fiscal year of the Company shall not cover more than
1,000,000 Common Shares, except that Options granted to a new Employee in the
fiscal year of the Company in which his or her service as an Employee first
commences shall not cover more than 1,500,000 Common Shares. The limitations
set forth in the preceding sentence shall be subject to adjustment in
accordance with Article 10.

     5.3 Exercise Price. Each Stock Option Agreement shall specify the
Exercise Price; provided that the Exercise Price under an ISO shall in no event
be less than 100% of the Fair Market Value of a Common Share on the date of
grant and the Exercise Price under an NSO shall in no event be less than 85% of
the Fair Market Value of a Common Share on the date of grant. In the case of
an NSO, a Stock Option Agreement may specify an Exercise Price that varies in
accordance with a predetermined formula while the NSO is outstanding.

     5.4 Exercisability and Term. Each Stock Option Agreement shall specify
the date or event when all or any installment of the Option is to become
exercisable. The Stock Option Agreement shall also specify the term of the
Option; provided that the term of an ISO shall in no event exceed 10 years from
the date of grant. A Stock Option Agreement may provide for accelerated
exercisability in the event of the Optionee’s death, disability or retirement
or other events and may provide for expiration prior to the end of its term in
the event of the termination of the Optionee’s service. Options may be awarded
in combination with SARs, and such an Award may provide that the Options will
not be exercisable unless the related SARs are forfeited.

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     5.5 Effect of Transfer of Control. The Committee may determine, at the
time of granting an Option or thereafter, that such Option shall become
exercisable as to all or part of the Common Shares subject to such Option in
the event that a Transfer of Control occurs with respect to the Company, except
that the exercisability of an ISO shall not be accelerated without the
Optionee’s written consent. In addition, a separate agreement between the
Optionee and the Company may provide that such Optionee’s Options shall become
exercisable as to all or part of the Common Shares subject to such Options in
the event that a Transfer of Control occurs with respect to the Company.

     5.6 Substitution of Options. The Committee may accept the cancellation of
outstanding options granted by another issuer in return for the grant of new
Options under the Plan for the same or a different number of Common Shares and
at the same or a different Exercise Price.

     5.7 Buyout Provisions. The Committee may at any time (a) offer to buy out
for a payment in cash, cash equivalents, Shares or other form of equity
compensation available under the Company’s stock plans, an Option previously
granted or (b) authorize an Optionee to elect to cash out an Option previously
granted, in either case at such time and based upon such terms and conditions
as the Committee shall establish and in compliance with applicable laws.

ARTICLE 6. PAYMENT FOR OPTION SHARES

     6.1 General Rule The entire Exercise Price of Common Shares issued upon
exercise of Options shall be payable in cash or cash equivalents at the time
when such Common Shares are purchased, except as follows:

          (a) In the case of an ISO granted under the Plan, payment shall be made
only pursuant to the express provisions of the applicable Stock Option
Agreement. The Stock Option Agreement may specify that payment may be made in
any form(s) described in this Article 6.

          (b) In the case of an NSO, the Committee may at any time accept payment in
any form(s) described in this Article 6 to the extent permissible under
applicable laws.

     6.2 Surrender of Stock. To the extent that this Section 6.2 is
applicable, all or any part of the Exercise Price may be paid by surrendering,
or attesting to the ownership of, Common Shares that are already owned by the
Optionee. Such Common Shares shall be valued at their Fair Market Value on the
date when the new Common Shares are purchased under the Plan. The Optionee
shall not surrender, or attest to the ownership of, Common Shares in payment of
the Exercise Price if such action would cause the Company to recognize
compensation expense (or additional compensation expense) with respect to the
Option for financial reporting purposes.

     6.3 Exercise/Sale. To the extent that this Section 6.3 is applicable, all
or any part of the Exercise Price and any withholding taxes may be paid by
delivering (on a form prescribed by the Company) an irrevocable direction to a
securities broker approved by the Company to sell all or part of the Common
Shares being purchased under the Plan and to deliver all or part of the sales
proceeds to the Company.

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     6.4 Exercise/Pledge. To the extent that this Section 6.4 is applicable,
all or any part of the Exercise Price and any withholding taxes may be paid by
delivering (on a form prescribed by the Company) an irrevocable direction to
pledge all or part of the Common Shares being purchased under the Plan to a
securities broker or lender approved by the Company, as security for a loan,
and to deliver all or part of the loan proceeds to the Company.

     6.5 Promissory Note. To the extent that this Section 6.5 is applicable,
all or any part of the Exercise Price and any withholding taxes may be paid by
delivering (on a form prescribed by the Company) a full-recourse promissory
note; provided that the par value of the Common Shares being purchased under
the Plan shall be paid in cash or cash equivalents.

     6.6 Other Forms of Payment. To the extent that this Section 6.6 is
applicable, all or any part of the Exercise Price and any withholding taxes may
be paid in any other form that is consistent with applicable laws, regulations
and rules.

ARTICLE 7. STOCK APPRECIATION RIGHTS

     7.1 SAR Agreement. Each grant of an SAR under the Plan shall be evidenced
by an SAR Agreement between the Optionee and the Company. Such SAR shall be
subject to all applicable terms of the Plan and may be subject to any other
terms that are not inconsistent with the Plan. The provisions of the various
SAR Agreements entered into under the Plan need not be identical. SARs may be
granted in consideration of a reduction in the Optionee’s other compensation to
the extent permissible under applicable laws.

     7.2 Number of Shares. Each SAR Agreement shall specify the number of
Common Shares to which the SAR pertains and shall provide for the adjustment of
such number in accordance with Article 10. SARs granted to any Optionee in a
single calendar year shall in no event pertain to more than 1,000,000 Common
Shares, except that SARs granted to a new Employee in the fiscal year of the
Company in which his or her service as an Employee first commences shall not
pertain to more than 1,500,000 Common Shares. The limitations set forth in the
preceding sentence shall be subject to adjustment in accordance with Article
10.

     7.3 Exercise Price. Each SAR Agreement shall specify the Exercise Price.
An SAR Agreement may specify an Exercise Price that varies in accordance with a
predetermined formula while the SAR is outstanding.

     7.4 Exercisability and Term. Each SAR Agreement shall specify the date
when all or any installment of the SAR is to become exercisable. The SAR
Agreement shall also specify the term of the SAR. An SAR Agreement may provide
for accelerated exercisability in the event of the Optionee’s death, disability
or retirement or other events and may provide for expiration prior to the end
of its term in the event of the termination of the Optionee’s service. SARs
may be awarded in combination with Options, and such an Award may provide that
the SARs will not be exercisable unless the related Options are forfeited. An
SAR may be included in an ISO only at the time of grant but may be included in
an NSO at the time of grant or thereafter. An SAR granted under the Plan may
provide that it will be exercisable only in the event of a Transfer of Control.

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     7.5 Effect of Transfer of Control. The Committee may determine, at the
time of granting an SAR or thereafter, that such SAR shall become exercisable
as to all or part of the Common Shares subject to such SAR in the event that a
Transfer of Control occurs with respect to the Company. In addition, a
separate agreement between the Optionee and the Company may provide that such
Optionee’s SARs shall become exercisable as to all or part of the Common Shares
subject to such SARs in the event that a Transfer of Control occurs with
respect to the Company.

     7.6 Exercise of SARs. Upon exercise of an SAR, the Optionee (or any
person having the right to exercise the SAR after his or her death) shall
receive from the Company (a) Common Shares, (b) cash or (c) a combination of
Common Shares and cash, as the Committee shall determine. The amount of cash
and/or the Fair Market Value of Common Shares received upon exercise of SARs
shall, in the aggregate, be equal to the amount by which the Fair Market Value
(on the date of surrender) of the Common Shares subject to the SARs exceeds the
Exercise Price. If, on the date when an SAR expires, the Exercise Price under
such SAR is less than the Fair Market Value on such date but any portion of
such SAR has not been exercised or surrendered, then such SAR shall
automatically be deemed to be exercised as of such date with respect to such
portion.

     7.7 Modification or Assumption of SARs. Within the limitations of the
Plan, the Committee may modify, extend or assume outstanding SARs or may accept
the cancellation of outstanding SARs (whether granted by the Company or by
another issuer) in return for the grant of new SARs for the same or a different
number of shares and at the same or a different exercise price. The foregoing
notwithstanding, no modification of an SAR shall, without the consent of the
Optionee, alter or impair his or her rights or obligations under such SAR.

ARTICLE 8. RESTRICTED SHARES

     8.1 Restricted Stock Agreement. Each grant of Restricted Shares under the
Plan shall be evidenced by a Restricted Stock Agreement between the recipient
and the Company. Such Restricted Shares shall be subject to all applicable
terms of the Plan and may be subject to any other terms that are not
inconsistent with the Plan. The provisions of the various Restricted Stock
Agreements entered into under the Plan need not be identical. Restricted
Shares may be granted in consideration of a reduction in the recipient’s other
compensation.

     8.2 Payment for Awards. To the extent that an Award is granted in the
form of newly issued Restricted Shares, the Award recipient, as a condition to
the grant of such Award, shall be required to pay the Company in
cash or cash equivalents an amount equal to the par value of such
Restricted Shares. To the extent that an Award is granted in the form of
Restricted Shares from the Company’s treasury, no cash consideration shall be
required of the Award recipients. Any amount not paid in cash may be paid with
a full-recourse promissory note, subject to applicable laws allowing such form
of payment.

     8.3 Vesting Conditions. Each Award of Restricted Shares may or may not be
subject to vesting. Vesting shall occur, in full or in installments, upon
satisfaction of the conditions specified in the Restricted Stock Agreement.
The Committee may include among such conditions the requirement that the
performance of the Company or a business unit of the Company for a specified

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period of one or more years equal or exceed a target determined in advance by
the Committee. Such performance shall be determined by the Company’s
independent auditors. Such target shall be based on one or more of the
criteria set forth in Appendix A. The Committee shall determine such target
not later than the 90th day of such period. In no event shall the number of
Restricted Shares which are subject to performance-based vesting conditions and
which are granted to any Participant in a single calendar year exceed 300,000,
subject to adjustment in accordance with Article 10. A Restricted Stock
Agreement may provide for accelerated vesting in the event of the Participant’s
death, disability or retirement or other events.

     8.4 Effect of Transfer of Control. The Committee may determine, at the
time of granting Restricted Shares or thereafter, that all or part of such
Restricted Shares shall become vested in the event that a Transfer of Control
occurs with respect to the Company. In addition, a separate agreement between
the Participant and the Company may provide that all or part of such
Participant’s Restricted Shares shall become vested in the event that a
Transfer of Control occurs with respect to the Company.

     8.5 Voting and Dividend Rights. The holders of Restricted Shares awarded
under the Plan shall have the same voting, dividend and other rights as the
Company’s other stockholders. A Restricted Stock Agreement, however, may
require that the holders of Restricted Shares invest any cash dividends
received in additional Restricted Shares. Such additional Restricted Shares
shall be subject to the same conditions and restrictions as the Award with
respect to which the dividends were paid.

ARTICLE 9. STOCK UNITS

     9.1 Stock Unit Agreement. Each grant of Stock Units under the Plan shall
be evidenced by a Stock Unit Agreement between the recipient and the Company.
Such Stock Units shall be subject to all applicable terms of the Plan and may
be subject to any other terms that are not inconsistent with the Plan. The
provisions of the various Stock Unit Agreements entered into under the Plan
need not be identical. Stock Units may be granted in consideration of a
reduction in the recipient’s other compensation.

     9.2 Payment for Awards. To the extent that an Award is granted in the
form of Stock Units, no cash consideration shall be required of the Award
recipients.

     9.3 Vesting Conditions. Each Award of Stock Units may or may not be
subject to vesting. Vesting shall occur, in full or in installments, upon
satisfaction of the conditions specified in the Stock Unit Agreement. The
Committee may include among such conditions the requirement that the
performance of the Company or a business unit of the Company for a specified
period of one or more years equal or exceed a target determined in advance by
the Committee. Such performance shall be determined by the Company’s
independent auditors. Such target shall be based on one or more of the
criteria set forth in Appendix A. The Committee shall determine such target
not later than the 90th day of such period. In no event shall the number of
Stock Units which are subject to performance-based vesting conditions and which
are granted to any Participant in a single calendar year exceed 300,000,
subject to adjustment in accordance with Article 10. A Stock Unit Agreement

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may provide for accelerated vesting in the event of the Participant’s death,
disability or retirement or other events.

     9.4 Effect of Transfer of Control. The Committee may determine, at the
time of granting Stock Units or thereafter, that all or part of such Stock
Units shall become vested in the event that a Transfer of Control occurs with
respect to the Company. In addition, a separate agreement between the
Participant and the Company may provide that all or part of such Participant’s
Stock Units shall become vested in the event that a Transfer of Control occurs
with respect to the Company.

     9.5 Voting and Dividend Rights. The holders of Stock Units shall have no
voting rights. Prior to settlement or forfeiture, any Stock Unit awarded under
the Plan may, at the Committee’s discretion, carry with it a right to dividend
equivalents. Such right entitles the holder to be credited with an amount
equal to all cash dividends paid on one Common Share while the Stock Unit is
outstanding. Dividend equivalents may be converted into additional Stock
Units. Settlement of dividend equivalents may be made in the form of cash, in
the form of Common Shares, or in a combination of both. Prior to distribution,
any dividend equivalents which are not paid shall be subject to the same
conditions and restrictions as the Stock Units to which they attach.

     9.6 Form and Time of Settlement of Stock Units. Settlement of vested
Stock Units may be made in the form of (a) cash, (b) Common Shares or (c) any
combination of both, as determined by the Committee. The actual number of
Stock Units eligible for settlement may be larger or smaller than the number
included in the original Award, based on predetermined performance factors.
Methods of converting Stock Units into cash may include (without limitation) a
method based on the average Fair Market Value of Common Shares
over a series of trading days. Vested Stock Units may be settled in a
lump sum or in installments. The distribution may occur or commence when all
vesting conditions applicable to the Stock Units have been satisfied or have
lapsed, or it may be deferred to any later date. The amount of a deferred
distribution may be increased by an interest factor or by dividend equivalents.
Until an Award of Stock Units is settled, the number of such Stock Units shall
be subject to adjustment pursuant to Article 10.

     9.7 Death of Recipient. Any Stock Units Award that becomes payable after
the recipient’s death shall be distributed to the recipient’s beneficiary or
beneficiaries. Each recipient of a Stock Units Award under the Plan may
designate one or more beneficiaries for this purpose by filing the prescribed
form with the Company. A beneficiary designation may be changed by filing the
prescribed form with the Company at any time before the Award recipient’s
death. If no beneficiary was designated or if no designated beneficiary
survives the Award recipient, then any Stock Units that become payable after
the recipient’s death shall be distributed to the recipient’s estate.

     9.8 Creditors’ Rights. A holder of Stock Units shall have no rights other
than those of a general creditor of the Company. Stock Units represent an
unfunded and unsecured obligation of the Company, subject to the terms and
conditions of the applicable Stock Unit Agreement.

ARTICLE 10. PROTECTION AGAINST DILUTION

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     10.1 Adjustments. In the event of a subdivision of the outstanding Common
Shares, a declaration of a dividend payable in Common Shares, a declaration of
a dividend payable in a form other than Common Shares in an amount that has a
material effect on the price of Common Shares, a combination or consolidation
of the outstanding Common Shares (by reclassification or otherwise) into a
lesser number of Common Shares, a recapitalization, a spin-off or a similar
occurrence, the Committee shall make such adjustments as it, in its sole
discretion, deems appropriate in one or more of:

         (a) The number of Options, SARs, Restricted Shares and Stock Units
available for future Awards under Article 3;

         (b) The limitations set forth in Sections 5.2, 7.2, 8.3 and 9.3;

         (c) The number of Common Shares covered by each outstanding Option and
SAR;

         (d) The Exercise Price under each outstanding Option and SAR; or

         (e) The number of Stock Units included in any prior Award which has not
yet been settled.

Except as provided in this Article 10, a Participant shall have no rights by
reason of any issue by the Company of stock of any class or securities
convertible into stock of any class, any subdivision or consolidation of shares
of stock of any class, the payment of any stock dividend or any other increase
or decrease in the number of shares of stock of any class.

     10.2 Dissolution or Liquidation. To the extent not previously exercised
or settled, Options, SARs and Stock Units shall terminate immediately prior to
the dissolution or liquidation of the Company.

     10.3 Reorganizations. In the event that the Company is a party to a
merger or other reorganization, outstanding Awards shall be subject to the
agreement of merger or reorganization. Such agreement shall provide for (a)
the continuation of the outstanding Awards by the Company, if the Company is a
surviving corporation, (b) the assumption of the outstanding Awards by the
surviving corporation or its parent or subsidiary, (c) the substitution by the
surviving corporation or its parent or subsidiary of its own awards for the
outstanding Awards, (d) full exercisability or vesting and accelerated
expiration of the outstanding Awards or (e) settlement of the full value of the
outstanding Awards in cash or cash equivalents followed by cancellation of such
Awards. If such agreement does not provide for any of the above, all
outstanding Awards shall fully vest, become immediately exercisable or payable
or have all restrictions lifted as may apply to the type of Award upon or after
a Change in Control unless otherwise determined by the Committee.

ARTICLE 11. DEFERRAL OF AWARDS

     The Committee (in its sole discretion) may permit or require a Participant
to:

-9-

 

         (a) Have cash that otherwise would be paid to such Participant as a result
of the exercise of an SAR or the settlement of Stock Units credited to a
deferred compensation account established for such Participant by the Committee
as an entry on the Company’s books;

         (b) Have Common Shares that otherwise would be delivered to such
Participant as a result of the exercise of an Option or SAR converted into an
equal number of Stock Units; or

         (c) Have Common Shares that otherwise would be delivered to such
Participant as a result of the exercise of an Option or SAR, or the settlement
of Stock Units, converted into amounts credited to a deferred compensation
account established for such Participant by the Committee as an entry on the
Company’s books. Such amounts shall be determined by reference to the Fair
Market Value of such Common Shares as of the date when they otherwise would
have been delivered to such Participant.
A deferred compensation account established under this Article 11 may be
credited with interest or other forms of investment return, as determined by
the Committee. A Participant for whom such an account is established shall
have no rights other than those of a general creditor of the Company. Such an
account shall represent an unfunded and unsecured obligation of the Company and
shall be subject to the terms and conditions of the applicable agreement
between such Participant and the Company. If the deferral or conversion of
Awards is permitted or required, the Committee (in its sole discretion) may
establish rules, procedures and forms pertaining to such Awards, including
(without limitation) the settlement of deferred compensation accounts
established under this Article 11.

ARTICLE 12. AWARDS UNDER OTHER PLANS

     The Company may grant awards under other plans or programs. Such awards
may be settled in the form of Common Shares issued under this Plan. Such
Common Shares shall be treated for all purposes under the Plan like Common
Shares issued in settlement of Stock Units and shall, when issued, reduce the
number of Common Shares available under Article 3.

ARTICLE 13. LIMITATION ON RIGHTS

     13.1 Retention Rights. Neither the Plan nor any Award granted under the
Plan shall be deemed to give any individual a right to remain an Employee,
Outside Director or Consultant. The Company and its Parents, Subsidiaries and
Affiliates reserve the right to terminate the service of any Employee or
Consultant at any time, with or without cause, subject to applicable laws and a
written employment agreement (if any).

     13.2 Stockholders’ Rights. A Participant shall have no dividend rights,
voting rights or other rights as a stockholder with respect to any Common
Shares covered by his or her Award prior to the time when a stock certificate
for such Common Shares is issued or, if applicable, the time when he or she
becomes entitled to receive such Common Shares by filing any required notice of
exercise and paying any required Exercise Price. No adjustment shall be made
for cash dividends or other rights for which the record date is prior to such
time, except as expressly provided in the Plan.

-10-

 

     13.3 Regulatory Requirements

     Any other provision of the Plan notwithstanding, the obligation of the
Company to issue Common Shares under the Plan shall be subject to all
applicable laws, rules and regulations and such approval by any regulatory body
as may be required. The Company reserves the right to restrict, in whole or in
part, the delivery of Common Shares pursuant to any Award prior to the
satisfaction of all legal requirements relating to the issuance of such Common
Shares, to their registration, qualification or listing or to an exemption from
registration, qualification or listing.

ARTICLE 14. WITHHOLDING TAXES

     14.1 General. To the extent required by applicable federal, state, local
or foreign law, a Participant or his or her successor shall make arrangements
satisfactory to the Company for the satisfaction of any withholding tax
obligations that arise in connection with the Plan. The Company shall not be
required to issue any Common Shares or make any cash payment under the Plan
until such obligations are satisfied.

     14.2 Share Withholding. The Committee may permit a Participant to satisfy
all or part of his or her withholding or income tax obligations by having the
Company withhold all or a portion of any Common Shares that otherwise would be
issued to him or her or by surrendering all or a portion of any Common Shares
that he or she previously acquired. Such Common Shares shall be valued at
their Fair Market Value on the date when taxes otherwise would be withheld in
cash.

ARTICLE 15. FUTURE OF THE PLAN

     15.1 Term of the Plan. The Plan, as set forth herein, shall become
effective on June 5, 1997. The Plan shall remain in effect until it is
terminated under Section 15.2, except that no ISOs shall be granted on or after
the 10th anniversary of the later of (a) the date when the Board adopted the
Plan or (b) the date when the Board adopted the most recent increase in the
number of Common Shares available under Article 3 which was approved by the
Company’s stockholders.

     15.2 Amendment or Termination. The Board or the Committee may, at any
time and for any reason, amend, suspend or terminate the Plan. An amendment of
the Plan shall be subject to the approval of the Company’s stockholders only to
the extent required by applicable laws, regulations or rules. No Awards shall
be granted under the Plan after the termination thereof. The termination of
the Plan, or any amendment thereof, shall not affect any Award previously
granted under the Plan.

     15.3 No Repricing. The exercise price for the Common Shares to be issued
pursuant to an already granted Stock Option or Stock Appreciation Right may not
be lowered without the prior consent of the Company’s stockholders. This shall
include, without limitation, a repricing of the Stock Option or Stock
Appreciation Right as well as a Stock Option or Stock Appreciation Right
exchange program whereby the Participant agrees to cancel an existing Stock
Option or Stock Appreciation Right in exchange for an Option, Stock
Appreciation Right or other Award.

ARTICLE 16. DEFINITIONS

-11-

 

     16.1. “Affiliate” means any entity other than a Subsidiary, if the Company
and/or one or more Subsidiaries own not less than 50% of such entity.

     16.2. “Award” means any award of an Option, an SAR, a Restricted Share or
a Stock Unit under the Plan.

     16.3. “Board” means the Company’s Board of Directors, as constituted from
time to time.

     16.4. “Code” means the Internal Revenue Code of 1986, as amended.

     16.5. “Committee” means a committee of the Board, as described in Article 2.

     16.6. “Common Share” means one share of the Common Stock of the Company.

     16.7. “Company” means McAfee, Inc. , a Delaware corporation.

     16.8. “Consultant” means a consultant or adviser who provides bona fide
services to the Company, a Parent, a Subsidiary or an Affiliate as an
independent contractor. Service as a Consultant shall be considered employment
for all purposes of the Plan, except as provided in Section 4.1.

     16.9. “Employee” means a common-law employee of the Company, a Parent, a
Subsidiary or an Affiliate.

     16.10. “Exchange Act” means the Securities Exchange Act of 1934, as
amended.

     16.11. “Exercise Price,” in the case of an Option, means the amount for
which one Common Share may be purchased upon exercise of such Option, as
specified in the applicable Stock Option Agreement. “Exercise Price,” in the
case of an SAR, means an amount, as specified in the applicable SAR Agreement,
which is subtracted from the Fair Market Value of one Common Share in
determining the amount payable upon exercise of such SAR.

     16.12. “Fair Market Value” means the market price of Common Shares,
determined by the Committee in good faith on such basis as it deems
appropriate. Whenever possible, the determination of Fair Market Value by the
Committee shall be based on the prices reported in The Wall Street Journal.
Such determination shall be conclusive and binding on all persons.

     16.13. “ISO” means an incentive stock option described in section 422(b)
of the Code.

     16.14. “NSO” means a stock option not described in sections 422 or 423 of
the Code.

     16.15. “Option” means an ISO or NSO granted under the Plan and entitling
the holder to purchase Common Shares.

     16.16. “Optionee” means an individual or estate who holds an Option or
SAR.

-12-

 

     16.17. “Outside Director” shall mean a member of the Board who is not an
Employee. Service as an Outside Director shall be considered employment for
all purposes of the Plan, except as provided in Section 4.1.

     16.18. “Parent” means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company, if each of the
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain. A corporation that attains the status of a Parent
on a date after the adoption of the Plan shall be considered a Parent
commencing as of such date.

     16.19. “Participant” means an individual or estate who holds an Award.

     16.20. “Plan” means this McAfee, Inc. 1997 Stock Incentive Plan, as
amended from time to time.

     16.21. “Predecessor Plan” means the McAfee, Inc. 1995 Stock Incentive
Plan, as amended.

     16.22. “Restricted Share” means a Common Share awarded under the Plan.

     16.23. “Restricted Stock Agreement” means the agreement between the
Company and the recipient of a Restricted Share which contains the terms,
conditions and restrictions pertaining to such Restricted Share.

     16.24. “SAR” means a stock appreciation right granted under the Plan.

     16.25. “SAR Agreement” means the agreement between the Company and an
Optionee which contains the terms, conditions and restrictions pertaining to
his or her SAR.

     16.26. “Stock Option Agreement” means the agreement between the Company
and an Optionee that contains the terms, conditions and restrictions pertaining
to his or her Option.

     16.27. “Stock Unit” means a bookkeeping entry representing the equivalent
of one Common Share, as awarded under the Plan.

     16.28. “Stock Unit Agreement” means the agreement between the Company and
the recipient of a Stock Unit which contains the terms, conditions and
restrictions pertaining to such Stock Unit.

     16.29. “Subsidiary” means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain. A corporation that
attains the status of a Subsidiary on a date after the adoption of the Plan
shall be considered a Subsidiary commencing as of such date.

-13-

 

     16.30. “Transfer of Control” shall mean:

         (a) The direct or indirect sale or exchange by the stockholders of the
Company of all or substantially all of the voting stock of the Company wherein
the stockholders of the Company immediately before such sale or exchange do not
retain in substantially the same proportions as their ownership of shares of
the Company’s voting stock immediately before such event, directly or
indirectly (including, without limitation, through their ownership of shares of
the voting stock of a corporation which, as a result of such sale or exchange,
owns the Company either directly or through one or more subsidiaries), at least
a majority of the beneficial interest in the voting stock of the Company
immediately after such sale or exchange;

         (b) A merger or consolidation wherein the stockholders of the Company
immediately before such merger or consolidation do not retain in substantially
the same proportions as their ownership of shares of the Company’s voting stock
immediately before such event, directly or indirectly (including, without
limitation, through their ownership of shares of the voting stock of a
corporation which, as a result of such merger or consolidation, owns the
Company either directly or through one or more subsidiaries), at least a
majority of the beneficial interest in the voting stock of the Company
immediately after such merger or consolidation;

         (c) The sale, exchange, or transfer of all or substantially all of the
assets of the Company (other than a sale, exchange, or transfer to one or more
corporations (the “Transferee Corporation(s)”) wherein the stockholders of the
Company immediately before such sale, exchange, or transfer retain in
substantially the same proportions as their ownership of shares of the
Company’s voting stock immediately before such event, directly or indirectly
(including, without limitation, through their ownership of shares of the voting
stock of a corporation which owns the Transferee Corporation(s) either directly
or through one or more subsidiaries), at least a majority of the beneficial
interest in the voting stock of the Transferee Corporation(s) immediately after
such event; or

         (d) A liquidation or dissolution of the Company.

-14-

 

ARTICLE 17. EXECUTION

     To record the adoption of the Plan by the Board, the Company has caused
its duly authorized officer to execute this document in the name of the
Company.

	 	 	 	 	 
	 	Networks Associates, Inc.

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

-15-<PAGE>
                                                                    EXHIBIT 10.1

                      SECOND AMENDMENT TO CREDIT AGREEMENT

         THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this "Second Amendment"),
dated as of June 7, 2004, is entered into among CASH AMERICA INTERNATIONAL,
INC., a Texas corporation (the "Borrower"), the lenders listed on the signature
pages hereof as Lenders (the "Lenders"), WELLS FARGO BANK, NATIONAL ASSOCIATION
(formerly Wells Fargo Bank Texas, National Association), as Administrative
Agent, L/C Issuer and Swing Line Lender and BANK ONE, N.A., as Documentation
Agent.

                                   BACKGROUND

         A. The Borrower, certain of the Lenders, the Documentation Agent, the
Administrative Agent, the Swing Line Lender and the L/C Issuer are parties to
that certain Credit Agreement, dated as of August 14, 2002, as amended by that
certain First Amendment to Credit Agreement, dated as of July 31, 2003 (said
Credit Agreement, as amended, the "Credit Agreement"). The terms defined in the
Credit Agreement and not otherwise defined herein shall be used herein as
defined in the Credit Agreement.

         B. The Borrower has requested certain amendments to the Credit
Agreement.

         C. The Lenders, the Documentation Agent, the Administrative Agent, the
Swing Line Lender and the L/C Issuer hereby agree to amend the Credit Agreement,
subject to the terms and conditions set forth herein.

         NOW, THEREFORE, in consideration of the covenants, conditions and
agreements hereafter set forth, and for other good and valuable consideration,
the receipt and adequacy of which are all hereby acknowledged, the Borrower, the
Lenders, the Swing Line Lender, the L/C Issuer and the Administrative Agent
covenant and agree as follows:

         1. AMENDMENTS.

         (a) The definition of "Interest Period" set forth in Section 1.01 of
the Credit Agreement is hereby amended to read as follows:

                  "Interest Period" means as to each Eurodollar Rate Loan, the
         period commencing on the date such Eurodollar Rate Loan is disbursed or
         converted to or continued as a Eurodollar Rate Loan and ending on the
         date 7 or 14 days or one, two, three or six months thereafter, as
         selected by the Borrower in its Revolving Loan Notice; provided that:

                           (i) any Interest Period that would otherwise end on a
                  day that is not a Business Day shall be extended to the next
                  succeeding Business Day unless, in the case of a Eurodollar
                  Rate Loan, such Business Day falls in another calendar month,
                  in which case such Interest Period shall end on the next
                  preceding Business Day;

                                       1
<PAGE>

                           (ii) any Interest Period pertaining to a Eurodollar
                  Rate Loan that begins on the last Business Day of a calendar
                  months (or on a day for which there is no numerically
                  corresponding day in the calendar month at the end of such
                  Interest Period) shall end on the last Business Day of the
                  calendar month at the end of such Interest Period; and

                           (iii) no Interest Period shall extend beyond the
                  scheduled Maturity Date.

         (b) Section 7.02(f) of the Credit Agreement is hereby amended to read
as follows:

                  (f) intercompany loans and advances, provided that the
         aggregate amount of outstanding loans and advances by the Borrower and
         Domestic Subsidiaries to Persons that are not Guarantors (including,
         without limitation, any Foreign Subsidiary), together with Investments
         made pursuant to Section 7.03(c) hereof after June 7, 2004 and
         Acquisitions made pursuant to Section 7.03(f) hereof, which are of
         assets or entities which are outside the United States shall not exceed
         $7,500,000 in aggregate principal amount at any time, and provided
         further that such intercompany loans and advances may exceed $7,500,000
         in aggregate principal amount so long as an amount equal to such excess
         amount is re-invested by a Foreign Subsidiary in the Borrower or a
         Guarantor within a maximum of 30 days prior to the making of such loan
         or advance;

         (c) Section 7.03(c) of the Credit Agreement is hereby amended to read
as follows:

                  (c) ownership of Capital Stock of Foreign Subsidiaries,
         provided that the aggregate amount of such Investments made after June
         7, 2004, together with loans and advances permitted under Section
         7.02(f) hereof, and Acquisitions made pursuant to Section 7.03(f)
         hereof, which are of assets or entities which are outside the United
         States, shall not exceed $7,500,000 in aggregate principal amount at
         any time (except as otherwise provided in the second proviso of Section
         7.02(f)),

         (d) Section 7.03(f) of the Credit Agreement is hereby amended to read
as follows:

                  (f) Acquisitions (other than the Cashland Acquisition),
         provided (i) the assets, property or business being acquired shall be
         in the types of businesses described in Section 5.19 hereof, (ii) such
         Acquisition shall not be opposed by the board of directors (or other
         governing body) of the Person being acquired, (iii) promptly upon
         becoming available and in any event within ten (10) days prior to any
         proposed Acquisition involving Acquisition Consideration equal to or
         greater than $5,000,000 but less than $10,000,000, the Administrative
         Agent shall have received written notice of such Acquisition, (iv) if
         the Acquisition Consideration for such Acquisition is equal to or
         greater than $10,000,000, the Administrative Agent shall have received,
         promptly upon becoming available and in any event within thirty (30)
         days prior to such proposed Acquisition,

                                       2
<PAGE>

         (A) written notice of such Acquisition, (B) a pro forma income
         statement and balance sheet prepared in accordance with GAAP prepared
         by the Borrower and taking into effect such Acquisition, and such other
         information as the Administrative Agent may reasonably request
         regarding such Acquisition, in addition to any information required
         with respect to any new Domestic Subsidiary (if applicable) under
         Section 6.15 hereof, (C) if available, audited financial statements at
         least 30 days prior to such proposed Acquisition, completed for a
         period no earlier than fifteen (15) months prior to the date of the
         proposed Acquisition, or, if such audited financial statements are not
         available and the Acquisition Consideration for such Acquisition is
         equal to or greater than $25,000,000, the Borrower shall provide
         verification of the Adjusted EBITDA of the Subsidiary being acquired,
         in form and substance satisfactory to the Required Lenders, which at
         the Required Lender's sole discretion may require verification by an
         outside accounting firm, at Borrower's expense, satisfactory to
         Administrative Agent, and (D) a Compliance Certificate setting forth
         the covenant calculations both immediately prior to and after giving
         effect to the proposed Acquisition and certifying that no Default or
         Event of Default exists or would occur as a result therefrom, and (v)
         the Acquisition Consideration for any single Acquisition (excluding
         from such calculation the Cashland Acquisition) shall not exceed
         $25,000,000 without the Required Lenders approval,

         (e) Section 7.19 of the Credit Agreement is hereby amended by deleting
subsection (f) therefrom.

         (f) Exhibit B to the Credit Agreement is hereby amended to be in the
form of Exhibit B to this Second Amendment.

         2. REPRESENTATIONS AND WARRANTIES TRUE; NO EVENT OF DEFAULT. By its
execution and delivery hereof, the Borrower represents and warrants that, as of
the date hereof:

         (a) the representations and warranties contained in the Credit
Agreement and the other Loan Documents are true and correct on and as of the
date hereof as made on and as of such date;

         (b) no event has occurred and is continuing which constitutes a Default
or an Event of Default;

         (c) (i) the Borrower has full power and authority to execute and
deliver this Second Amendment, (ii) this Second Amendment has been duly executed
and delivered by the Borrower, and (iii) this Second Amendment and the Credit
Agreement, as amended hereby, constitute the legal, valid and binding
obligations of the Borrower, enforceable in accordance with their respective
terms, except as enforceability may be limited by applicable debtor relief laws
and by general principles of equity (regardless of whether enforcement is sought
in a proceeding in equity or at law) and except as rights to indemnity may be
limited by federal or state securities laws;

                                       3
<PAGE>

         (d) neither the execution, delivery and performance of this Second
Amendment or the Credit Agreement, as amended hereby, nor the consummation of
any transactions contemplated herein or therein, will conflict with any Law or
Organization Documents of the Borrower, or any indenture, agreement or other
instrument to which the Borrower or any of its properties is subject; and

         (e) no authorization, approval, consent, or other action by, notice to,
or filing with, any governmental authority or other Person not previously
obtained is required for (i) the execution, delivery or performance by the
Borrower of this Second Amendment or (ii) the acknowledgement by each Guarantor
of this Second Amendment.

         3. CONDITIONS TO EFFECTIVENESS. This Second Amendment shall be
effective upon satisfaction or completion of the following:

         (a) the Administrative Agent shall have received counterparts of this
Second Amendment executed by Lenders comprising the Required Lenders;

         (b) the Administrative Agent shall have received counterparts of this
Second Amendment executed by the Borrower and acknowledged by each Guarantor;
and

         (c) the Administrative Agent shall have received, in form and substance
satisfactory to the Administrative Agent and its counsel, such other documents,
certificates and instruments as the Administrative Agent shall require.

         4. REFERENCE TO THE CREDIT AGREEMENT.

         (a) Upon the effectiveness of this Second Amendment, each reference in
the Credit Agreement to "this Agreement", "hereunder", or words of like import
shall mean and be a reference to the Credit Agreement, as affected and amended
hereby.

         (b) The Credit Agreement, as amended by the amendments referred to
above, shall remain in full force and effect and is hereby ratified and
confirmed.

         5. COSTS, EXPENSES AND TAXES. The Borrower agrees to pay on demand all
costs and expenses of the Administrative Agent in connection with the
preparation, reproduction, execution and delivery of this Second Amendment and
the other instruments and documents to be delivered hereunder (including the
reasonable fees and out-of-pocket expenses of counsel for the Administrative
Agent with respect thereto).

         6. GUARANTOR'S ACKNOWLEDGMENT. By signing below, each Guarantor (a)
acknowledges, consents and agrees to the execution, delivery and performance by
the Borrower of this Second Amendment, (b) acknowledges and agrees that its
obligations in respect of its Guaranty (i) are not released, diminished, waived,
modified, impaired or affected in any manner by this Second Amendment or any of
the provisions contemplated herein, (c) ratifies and confirms its obligations
under its Guaranty, and (d) acknowledges and agrees that it has no claims or
offsets against, or defenses or counterclaims to, its Guaranty.

                                       4
<PAGE>

         7. EXECUTION IN COUNTERPARTS. This Second Amendment may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which when taken together shall constitute but one and
the same instrument. For purposes of this Second Amendment, a counterpart hereof
(or signature page thereto) signed and transmitted by any Person party hereto to
the Administrative Agent (or its counsel) by facsimile machine, telecopier or
electronic mail is to be treated as an original. The signature of such Person
thereon, for purposes hereof, is to be considered as an original signature, and
the counterpart (or signature page thereto) so transmitted is to be considered
to have the same binding effect as an original signature on an original
document.

         8. GOVERNING LAW; BINDING EFFECT. This Second Amendment shall be
governed by and construed in accordance with the laws of the State of Texas
applicable to agreements made and to be performed entirely within such state,
provided that each party shall retain all rights arising under federal law, and
shall be binding upon the parties hereto and their respective successors and
assigns.

         9. HEADINGS. Section headings in this Second Amendment are included
herein for convenience of reference only and shall not constitute a part of this
Second Amendment for any other purpose.

         10. ENTIRE AGREEMENT. THE CREDIT AGREEMENT, AS AMENDED BY THIS SECOND
AMENDMENT, AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN
THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS,
OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

================================================================================
                   REMAINDER OF PAGE LEFT INTENTIONALLY BLANK
================================================================================

                                       5
<PAGE>

         IN WITNESS WHEREOF, this Second Amendment is executed as of the date
first set forth above.

                                 CASH AMERICA INTERNATIONAL, INC.

                                 By:  /s/  David J. Clay
                                      ---------------------------------
                                      Name:   David J. Clay
                                      Title:  Vice President - Treasurer

                                       6
<PAGE>

                                    WELLS FARGO BANK, NATIONAL
                                    ASSOCIATION, as Administrative Agent

                                    By: /s/  Daniel T. Brown
                                       ----------------------------------------
                                       Name:  Daniel T. Brown
                                       Title: Vice President

                                    WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                    as a Lender, L/C Issuer and
                                    Swing Line Lender

                                    By: /s/  Daniel T. Brown
                                       ----------------------------------------
                                       Name:  Daniel T. Brown
                                       Title: Vice President

                                    BANK ONE, N.A., as a Lender and
                                    Documentation Agent

                                    By: /s/  Greg Crowe
                                       ----------------------------------------
                                       Name:  Greg Crowe
                                       Title: Vice President

                                    JPMORGAN CHASE BANK, as a Lender

                                    By: /s/  David L. Howard
                                       ----------------------------------------
                                       Name:  David L. Howard
                                       Title: Vice President

                                       7
<PAGE>

                                    US BANK NATIONAL ASSOCIATION, as a Lender

                                    By: /s/  Joseph L. Sooter, Jr.
                                       ----------------------------------------
                                       Name:  Joseph L. Sooter, Jr.
                                       Title: Vice President

                                    THE HUNTINGTON NATIONAL BANK, as a Lender

                                    By: /s/  Cheryl L. Razon
                                       ----------------------------------------
                                       Name:  Cheryl L. Razon
                                       Title: Assistant Vice President

                                    TEXAS CAPITAL BANK, NATIONAL
                                    ASSOCIATION, as a Lender

                                    By: /s/  Barry Kromann
                                       ----------------------------------------
                                       Name:  Barry Kromann
                                       Title: Senior Vice President

                                       8
<PAGE>

                                   ACKNOWLEDGED AND AGREED TO:

                                   CASH AMERICA HOLDING, INC.
                                   CASH AMERICA PAWN L.P. by its general
                                   partner, Cash America Holding, Inc.
                                   CASH AMERICA MANAGEMENT L.P. by its general
                                   partner, Cash America Holding, Inc.
                                   MR. PAYROLL CORPORATION
                                   CASH AMERICA, INC. OF TENNESSEE
                                   CASH AMERICA, INC. OF OKLAHOMA
                                   CASH AMERICA, INC. OF KENTUCKY
                                   CASH AMERICA, INC. OF SOUTH CAROLINA
                                   FLORIDA CASH AMERICA, INC.
                                   GEORGIA CASH AMERICA, INC.
                                   CASH AMERICA, INC. OF NORTH CAROLINA
                                   CASH AMERICA PAWN, INC. OF OHIO
                                   CASH AMERICA, INC. OF COLORADO
                                   CASH AMERICA, INC. OF ALABAMA
                                   CASH AMERICA, INC. OF INDIANA
                                   CASH AMERICA OF MISSOURI, INC.
                                   VINCENT'S JEWELERS AND LOAN, INC.
                                   CASH AMERICA, INC. OF UTAH
                                   CASH AMERICA, INC. OF ILLINOIS
                                   UPTOWN CITY PAWNERS, INC.
                                   EXPRESS CASH INTERNATIONAL
                                      CORPORATION
                                   EXPRESS CASH FRANCHISING SYSTEMS, INC.
                                   CASH AMERICA, INC.
                                   CASH AMERICA, INC. OF LOUISIANA
                                   CASH AMERICA FRANCHISING, INC.
                                   CASH AMERICA FINANCIAL SERVICES, INC.
                                   DOC HOLLIDAY'S PAWNBROKERS &
                                      JEWELLERS, INC.
                                   LONGHORN PAWN & GUN, INC.
                                   BRONCO PAWN & GUN, INC.
                                   GAMECOCK PAWN & GUN, INC.
                                   HORNET PAWN & GUN, INC.
                                   TIGER PAWN & GUN, INC.
                                   RATI HOLDING, INC.
                                   CASHLAND FINANCIAL SERVICES, INC.

                                   By: /s/  David J. Clay
                                      -----------------------------------------
                                      Name:  David J. Clay
                                      Title: Vice President - Treasurer
<PAGE>

                                                                       EXHIBIT B

                         FORM OF COMPLIANCE CERTIFICATE

                                          Financial Statement Date:_____________

To:      Wells Fargo Bank Texas, National Association, as Administrative Agent,
         L/C Issuer and Swing Line Lender

Ladies and Gentlemen:

         Reference is made to that certain Credit Agreement, dated as of August
14, 2002 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the "Agreement;" the terms defined therein being used
herein as therein defined), among Cash America International, Inc. (the
"Borrower"), the Lenders from time to time party thereto, and Wells Fargo Bank
Texas, National Association, as Administrative Agent, L/C Issuer and Swing Line
Lender.

         The undersigned Responsible Officer hereby certifies (in his
representative capacity but not in his individual capacity) as of the date
hereof that he/she is the of the Borrower, and that, as such, he/she is
authorized to execute and deliver this Certificate to the Administrative Agent
on the behalf of the Borrower, and that:

[Use following for fiscal YEAR-END financial statements]

         1. Attached hereto as Schedule 1 are the year-end audited financial
statements required by Section 6.01(b) of the Agreement for the fiscal year of
the Borrower ended as of the above date, together with the report and opinion of
an independent certified public accountant required by such section.

[Use following for fiscal QUARTER-END financial statements]

         1. Attached hereto as Schedule 1 are the unaudited financial statements
required by Section 6.01(a) of the Agreement for the fiscal quarter of the
Borrower ended as of the above date. Such financial statements fairly present
the financial condition, results of operations and cash flows of the Borrower
and its Subsidiaries in accordance with GAAP as at such date and for such
period, subject only to normal year-end audit adjustments and the absence of
footnotes.

         2. The undersigned has reviewed and is familiar with the terms of the
Agreement and has made, or has caused to be made under his/her supervision, a
detailed review of the transactions and condition (financial or otherwise) of
the Borrower during the accounting period covered by the attached financial
statements.

         3. A review of the activities of the Borrower during such fiscal period
has been made under the supervision of the undersigned with a view to
determining whether during such fiscal period the Borrower performed and
observed all its Obligations under the Loan Documents, and

                                       1

<PAGE>

                                  [SELECT ONE:]

[TO THE BEST KNOWLEDGE OF THE UNDERSIGNED DURING SUCH FISCAL PERIOD, THE
BORROWER PERFORMED AND OBSERVED EACH COVENANT AND CONDITION OF THE LOAN
DOCUMENTS APPLICABLE TO IT.]

--or--

[THE FOLLOWING COVENANTS OR CONDITIONS HAVE NOT BEEN PERFORMED OR OBSERVED AND
THE FOLLOWING IS A LIST OF EACH SUCH DEFAULT OR EVENT OF DEFAULT AND ITS NATURE
AND STATUS:]

         4. The financial covenant analyses and information set forth on
Schedule 2 attached hereto are true and accurate on and as of the date of this
Certificate.

         IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
______________________, _________.

                                         CASH AMERICA INTERNATIONAL, INC.

                                         By:
                                            -----------------------------------

                                         Name:
                                              ---------------------------------

                                         Title:
                                               --------------------------------

                                       2

<PAGE>

        For the Quarter/Year ended ___________________("Statement Date")

                                   SCHEDULE 2
                          to the Compliance Certificate
                                  ($ in 000's)

I. LEVERAGE RATIO - FOR DETERMINATION OF APPLICABLE RATE.

         A.       Adjusted Funded Debt as of date of determination for the
                  Borrower and its Subsidiaries on a consolidated basis:

                  1.       Funded Debt:

<Table>
<S>                                                                                              <C>
                           (a)      Without duplication, all obligations for
                                    borrowed money and all obligations evidenced
                                    by bonds, debentures, notes, loan agreements
                                    or other similar instruments:                                $
                                                                                                  ---------------

                           (b)      Without duplication, accrued obligations in
                                    respect of earnout or similar payments
                                    payable in cash or which may be payable in
                                    cash at the seller's or obligee's option:                    $
                                                                                                  ---------------

                           (c)      Without duplication, obligations in respect of
                                    Capital Leases and Synthetic Lease Obligations:              $
                                                                                                  ---------------

                           (d)      Without duplication, any Receivables Facility
                                    Attributed Indebtedness:                                     $
                                                                                                  ---------------

                           (e)      Without duplication, obligations in respect of any
                                    Redeemable Stock:                                            $
                                                                                                  ---------------

                           (f)      Funded Debt (Lines I.A.1(a) + (b) + (c) + (d) + (e)):        $
                                                                                                  ---------------
</Table>

                  2.       Adjusted Funded Debt:

<Table>
<S>                                                                                              <C>
                           (a)      Funded Debt (from Line I.A.1(f) above):                      $
                                                                                                  ---------------

                           (b)      Cash on Hand:                                                $
                                                                                                  ---------------

                           (c)      Adjusted Funded Debt (Line I.A.2(a) - (b))                   $
                                                                                                  ---------------
</Table>

                                       3

<PAGE>

         B.       Adjusted EBITDA for the period of the four consecutive fiscal
                  quarters ending on such date (the "Subject Period"):

                  1.       EBITDA:

<Table>
<S>                                                                                              <C>
                           (a)      Net Income for the Subject Period (excluding
                                    therefrom, to the extent included in determining Net
                                    Income, the income or loss of any Person (other than
                                    a Subsidiary) of which the Borrower or any Subsidiary
                                    owns Capital Stock, except to the extent of the
                                    amount of Dividends or other distributions actually
                                    paid to the Borrower or any Subsidiaries during such
                                    period:                                                      $
                                                                                                  ---------------

                           (b)      Without duplication and to the extent deducted in Net
                                    Income, Interest Expense for the Subject Period:             $
                                                                                                  ---------------

                           (c)      Without duplication and to the extent deducted in Net
                                    Income, federal, state, local and foreign income and
                                    franchise taxes of the Borrower and its Subsidiaries
                                    for the Subject Period:                                      $
                                                                                                  ---------------

                           (d)      Without duplication and to the extent
                                    deducted in Net Income, depreciation and
                                    amortization expenses of the Borrower and
                                    its Subsidiaries and other non-cash charges
                                    of the Borrower and its Subsidiaries for the
                                    Subject Period:                                              $
                                                                                                  ---------------

                           (e)      Without duplication and to the extent included in Net
                                    Income, extraordinary gains and extraordinary
                                    non-cash credits of the Borrower and its Subsidiaries
                                    for the Subject Period:                                      $
                                                                                                  ---------------

                           (f)      EBITDA (Lines I.B.1(a) + (b) + (c) + (d) - (e)):             $
                                                                                                  ---------------
</Table>

                  2.       Adjusted EBITDA for the Subject Period:

<Table>
<S>                                                                                              <C>
                           (a)      EBITDA (from Line I.B.1(f) above):                           $
                                                                                                  ---------------

                           (b)      To the extent included in the Subject
                                    Period, any gain resulting from the recovery
                                    of value related to the Rent-A-Tire
                                    disposition:                                                 $
                                                                                                  ---------------
</Table>

                                       4

<PAGE>

<Table>
<S>                                                                                              <C>
                           (c)      Any non-cash gain or loss recognized on the
                                    income statement from derivative value
                                    fluctuation during the Subject Period:                       $
                                                                                                  ---------------

                           (d)      Upon the acquisition of any assets or
                                    Persons permitted by Section 7.03 which
                                    generate EBITDA (whether positive or
                                    negative), the actual trailing 12 month
                                    EBITDA of the acquired assets or Person, as
                                    the case may be with adjustments as provided
                                    in Article 11, Regulation S-X of the
                                    Securities Act:                                              $
                                                                                                  ---------------

                           (e)      Upon the disposition of any assets or
                                    Persons permitted by Section 7.05 hereof
                                    which generate EBITDA (whether positive or
                                    negative), the actual trailing 12 month
                                    EBITDA of the disposed assets or Person, as
                                    the case may be with adjustments as provided
                                    in Article 11, Regulation S-X of the
                                    Securities Act:                                              $
                                                                                                  ---------------

                           (f)      Adjusted EBITDA (Line I.B.2(a) -  (b) - (c) + (d)  -
                                    (e)):                                                        $
                                                                                                  ---------------

         C.       Leverage Ratio (Line I.A.2(c) / Line I.B.2(f)):                                            to 1
                                                                                                  ----------
</Table>

II. SECTION 7.06 - LIMITATION ON RESTRICTED PAYMENTS.

<Table>
<S>                                                                                              <C>
         A.       Cumulative Net Income after December 31, 2002:                                 $
                                                                                                  ---------------

         B.       Actual amount of Dividends and scheduled principal payments on
                  Subordinated Debt in existence as of the Closing Date during term of
                  Agreement:                                                                     $
                                                                                                  ---------------

         C.       Maximum aggregate amount of Dividends and scheduled principal payments
                  on Subordinated Debt during term of Agreement:
                  ($5,000,000 + 25% of Line II.A.):                                              $
                                                                                                  ---------------
</Table>

                                       5

<PAGE>

III. SECTION 7.19(a) - MAXIMUM LEVERAGE RATIO.

<Table>
<S>                                                                                              <C>
         A.       Leverage Ratio (Line I.C.):                                                                to 1
                                                                                                  ----------
</Table>

                                Maximum Allowed:

<Table>
<Caption>
                                           Fiscal Quarter                                Maximum Leverage Ratio
                                           --------------                                ----------------------
<S>                                                                                      <C>
                  First Amendment Effective Date through December 31, 2003                     3.25 to 1
                  March 31, 2004 through December 31, 2004                                     3.00 to 1
                  March 31, 2005 and thereafter                                                2.50 to 1
</Table>

IV. SECTION 7.19(b) - MINIMUM FIXED CHARGE COVERAGE RATIO.

<Table>
<S>                                                                                              <C>
         A.       Adjusted EBITDA for the Subject Period (Line I.B.2(f)):                        $
                                                                                                  ---------------

         B.       Rent and lease expense for the Subject Period:                                 $
                                                                                                  ---------------

         C.       Interest Expense whether paid or accrued (including the
                  interest component of Capital Leases), of the Borrower and
                  Subsidiaries as it appears on the consolidated income
                  statement of the Borrower and its consolidated Subsidiaries
                  for the Subject Period:                                                        $
                                                                                                  ---------------

         D.       All scheduled payments on Funded Debt (specifically excluding
                  any unscheduled mandatory or optional prepayments on Funded
                  Debt) for the period of four consecutive fiscal quarters
                  ending on such date:                                                           $
                                                                                                  ---------------

         E.       Rent and lease expense for the period of four consecutive fiscal
                  quarters ending on such date:                                                  $
                                                                                                  ---------------

         F.       Dividends, excluding Treasury Stock Purchases for the period of four
                  consecutive fiscal quarters ending on such date:                               $
                                                                                                  ---------------

         G.       Fixed Charge Coverage Ratio ((Lines IV.A. + B.) / (Lines IV.C. + D. +
                  E. + F.)):                                                                                 to 1
                                                                                                  ----------

         H.       Minimum required at the end of any fiscal quarter:                              1.50 to 1
</Table>

                                       6

<PAGE>

V. SECTION 7.19(c) - MAXIMUM ADJUSTED FUNDED DEBT TO TOTAL CAPITALIZATION.

<Table>
<S>                                                                                              <C>
         A.       Total Capitalization

                  1.       Net Worth as of the date of determination:

                            (a)     Total shareholder's equity (including
                                    Capital Stock, additional paid in capital,
                                    and retained earnings after deducting
                                    treasury stock):                                             $
                                                                                                  ---------------

                            (b)     Comprehensive income or losses resulting from foreign
                                    currency translation adjustments or derivative value
                                    fluctuation:                                                 $
                                                                                                  ---------------

                            (c)     Net Worth  (Line V.A.1(a) - (b)):                            $
                                                                                                  ---------------

                  2.       Adjusted Funded Debt as of the date of determination (Line
                           I.A.2(c)):                                                            $
                                                                                                  ---------------

                  3.       Total Capitalization (Line V.A.1(c) + V.A.2):                         $
                                                                                                  ---------------

         B.       Ratio of Adjusted Funded Debt to Total Capitalization (Line I.A.2(c)  /
                  (Line V.A.3)):                                                                 $
                                                                                                  ---------------

         C.       Maximum allowed at the end of any fiscal quarter:                               0.50 to 1
</Table>

VI. SECTION 7.19(d) -- MINIMUM INVENTORY TURNOVER.

<Table>
<S>                                                                                              <C>
         A.       Cost of Goods sold by the Borrower and its Subsidiaries for the most
                  recent twelve months:                                                          $
                                                                                                  ---------------

         B.       Average monthly inventory of the Borrower and its Subsidiaries

                  1.       Thirteen amounts of fiscal month end inventory balance of the
                           Borrower and its Subsidiaries for the most recent thirteen
                           fiscal months of the Borrower:                                        $
                                                                                                  ---------------

                  2.       Average monthly inventory (Line VI.B.1 / 13):                         $
                                                                                                  ---------------

         C.       Inventory Turnover ratio  (Line VI.A.1/ B.2):                                  $
                                                                                                  ---------------

         D.       Minimum required:                                                               1.70 to 1.0
</Table>

                                       7

<PAGE>

VII. SECTION 7.19(e) -- MINIMUM NET WORTH.

<Table>
<S>                                                                                              <C>
         A.       Net Income after March 31, 2002 (with no deduction for net losses
                  during any period):                                                            $
                                                                                                  ---------------

         B.       Net Proceeds received by the Borrower and its Subsidiaries
                  from the issuance and sale of Capital Stock of the Borrower or
                  any Subsidiary (other than issuance to the Borrower or a
                  wholly-owned Subsidiary), including any conversion of debt
                  securities of the Borrower into such Capital Stock after the
                  Closing Date:                                                                  $
                                                                                                  ---------------

         C.       Net Worth (Line V.A.1(c)):                                                     $
                                                                                                  ---------------

         D.       Minimum Net Worth ($173,173,000 + (50% x Line VII.A) + Line VII.B):            $
                                                                                                  ---------------
</Table>

                                       8

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