Document:

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                                                                   EXHIBIT 10.21

                             2003-1 AMENDMENT TO THE
                                 STEELCASE INC.
                           RESTORATION RETIREMENT PLAN

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         WHEREAS, Steelcase Inc. (the "Company") has established and maintains
the Steelcase Inc. Restoration Retirement Plan, effective March 1, 1998, and as
thereafter amended from time to time (the "Plan"); and

         WHEREAS, pursuant to Section 7.1 of the Plan, the Company has reserved
to its Board of Directors the right to amend the Plan at any time; and

         WHEREAS, the Board of Directors of the Company has delegated to its
Compensation Committee (the "Committee") the necessary authority to amend the
Plan; and

         WHEREAS, the Compensation Committee desires to amend the Plan in order
to provide for automatic lump sum distributions of accounts having vested
balances of less than $50,000 and to clarify that only the portion of the
balance of a participant's account that is vested can be paid as benefits.

         NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES, the Plan is amended,
effective immediately, as follows:

         1.   Section 6.2 of the Plan is amended to read as follows:

              "6.2    PAYMENT

                           i. DURING LIFE. The vested portion of the
         Participant's Account shall be paid or begin to be paid on or about the
         April 1 following the Fiscal Year in which termination of employment
         occurs. A Participant may elect, subject to the approval of the
         Committee, to have the payment made in either of the following ways or
         any combination thereof:

                              (a)  In one lump sum, or

                              (b)  In annual installments over four years using
         the 'declining digits' method  (i.e., the first payment is 1/4 of the
         vested portion of the Account balance, the second 1/3 of the remaining
         vested balance, the third 1/2

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         of the remaining vested balance and the fourth the entire remaining
         vested balance).

                              The Participant's election under this Section
         shall be filed in writing with the Committee. The Participant's initial
         election shall be effective if filed with the Committee within 30 days
         of the date the Committee provides notice of the election to the
         Participant, but in any event prior to the date payment would otherwise
         be made. Elections filed after that time, and any change in an
         election, shall be effective only if the individual remains employed
         for the following 12-month period.

                              ii.    DEATH.  In the event of death of a
         Participant before payment of all benefits due, any amount remaining of
         the vested portion of the Participant's Account will be made to the
         Participant's Beneficiary in a single lump sum or in annual
         installments over a four year period, using the declining digits
         method, provided the Participant so elected prior to his or her death.

                              iii.   CASH OUTS.  Notwithstanding anything in
         this Section 6.2 to the contrary, the Committee may elect to distribute
         the entire vested balance of the Participant's Account in a single lump
         sum payment to the Participant or his or her Beneficiary if the vested
         balance of the Account is less than $50,000, or in the event of the
         Participant's Total Disability or death."

              2.     The first paragraph of Section 6.3 is amended to read as
         follows:

                              "The non-vested percentage of the Participant's
         Account shall be forfeited upon the commencement of payments to the
         Participant or his or her Beneficiary pursuant to Section 6.2. A
         Participant's right to any vested portion of his or her Account
         remaining under this Plan shall be forfeited upon occurrence of any of
         the following events:"

         IN WITNESS WHEREOF, the Company has caused this 2003-1 Amendment to the
Steelcase Inc. Restoration Retirement Plan to be executed by its duly authorized
officer on the 22nd day of January, 2003.

                               STEELCASE INC.

                               By: /s/  Nancy W. Hickey
                                   ---------------------------------------------

                                   Its: Sr. Vice President, Global Strategic
                                        Resources & Chief Administrative Officer

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                                                                     EXHIBIT 4.4

                            STERLING BANCSHARES, INC.
                   2003 STOCK INCENTIVE AND COMPENSATION PLAN

SECTION  1. PURPOSE OF THE PLAN

         The Sterling Bancshares, Inc. 2003 Stock Incentive and Compensation
Plan (the "Plan") is intended to promote the interests of Sterling Bancshares,
Inc., a Texas corporation (the "Company"), by encouraging Employees, Consultants
and Directors to acquire or increase their equity interest in the Company and to
provide a means whereby they may develop a sense of proprietorship and personal
involvement in the development and financial success of the Company, and to
encourage them to remain with and devote their best efforts to the business of
the Company, thereby advancing the interests of the Company and its
stockholders. The Plan is also contemplated to enhance the ability of the
Company and its Subsidiaries to attract and retain the services of individuals
who are essential for the growth and profitability of the Company. The Plan also
permits the Company to pay all or part of the Directors' annual retainer and
meeting fees in shares of Common Stock in lieu of cash.

SECTION 2. DEFINITIONS

         As used in the Plan, the following terms shall have the meanings set
forth below:

         "Award" shall mean an Option, Restricted Stock, Performance Award,
Phantom Shares, Bonus Shares, or Other Stock-Based Award.

         "Award Agreement" shall mean any written or electronic agreement,
contract, instrument or document evidencing any Award, which may, but need not,
be executed or acknowledged by a Participant.

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

         "Bonus Shares" shall mean an award of Shares granted pursuant to
Section 6(d) of the Plan.

         "Change of Control" shall mean, and shall be deemed to have occurred:

         (i) if any Person, other than any benefit plan of the Company, directly
         or indirectly, becomes the beneficial owner (as defined in Section
         13(d) of the Exchange Act) of securities representing 35% or more of
         the combined voting power of the Company's then-outstanding securities,
         but excluding any such acquisition pursuant to a merger, consolidation
         or similar business combination involving the Company; or

         (ii) upon the consummation of a merger, consolidation, or similar
         business combination involving the Company, other than any such
         transaction which results in at least 75% of the total voting power
         represented by the voting

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         securities of the surviving entity (or the parent entity thereof)
         outstanding immediately after such transaction being beneficially
         owned by at least 75% of the holders of the outstanding voting
         securities of the Company immediately prior to the transaction with
         the voting power of each such continuing holder relative to other such
         continuing holders not being substantially altered in the transaction;
         or

         (iii) upon the Board or the stockholders of the Company approving a
         plan of complete or substantially complete liquidation of the Company;
         or

         (iv) upon the consummation of the sale, lease, or disposition by the
         Company of 50% or more of the total assets of the Company in one or a
         series of related transactions; or

         (v) upon the individuals who constitute the Board as of the 2003 Annual
         Meeting of the Stockholders ("Incumbent Board") ceasing for any reason
         to constitute at least a majority of the members of the Board, provided
         that any person becoming a director after the effective date of the
         Plan whose election, or nomination for election by the Company's
         stockholders, was approved by a vote of at least two-thirds of the
         directors then comprising the Incumbent Board (other than any
         individual whose initial assumption of office occurs as a result of
         either (a) an actual or threatened election contest or (b) an actual or
         threatened solicitation of proxies or consents by or on behalf of a
         person other than the Board) shall be, for purposes of this Plan,
         considered as though such person were a member of the Incumbent Board.

         "Code" shall mean the Internal Revenue Code of 1986, as amended from
time to time, and the rules and regulations thereunder.

         "Committee" shall mean the Human Resources Programs Committee of the
Board or any other committee of the Board designated, from time to time, by the
Board to act as the Committee under the Plan.

         "Consultant" shall mean any individual who is not an Employee or a
member of the Board and who provides consulting, advisory or other similar
services to the Company or a Subsidiary, including, without limitation, advisory
directors and members of the Business Development Board.

         "Director" shall mean any member of the Board who is not an Employee.

         "Director Fees" shall mean the annual retainer, chair fees and meeting
fees earned by a Director for services during a calendar year or part thereof.

         "Employee" shall mean any employee of the Company or a Subsidiary.

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

         "Fair Market Value" shall mean, as of any applicable date, the closing
sales price for a Share on the Nasdaq Stock Market for the immediately preceding
date as reported

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by Bloomberg Financial Markets, or any other reporting service approved by the
Committee, unless the Shares are listed on a national securities exchange, in
which case it shall mean the closing sales price on such exchange for the
immediately preceding date as reported by Bloomberg Financial Markets or any
other reporting service approved by the Committee; provided, however, that if
Shares shall not have been quoted or traded on such applicable date, Fair Market
Value shall be determined based on the next preceding date on which they were
quoted or traded, or, if deemed appropriate by the Committee, in such other
manner as it may deem appropriate. In no event shall the Fair Market Value of
any Share be less than its par value. In the event the Shares are not publicly
traded at the time a determination of its Fair Market Value is required to be
made hereunder, the determination of Fair Market Value shall be made in good
faith by the Committee.

         "Incentive Stock Option" or "ISO" shall mean an option granted under
Section 6(a) of the Plan that is intended to qualify as an "incentive stock
option" under Section 422 of the Code or any successor provision thereto.

         "Non-Qualified Stock Option" or "NQO" shall mean an option granted
under Section 6(a) of the Plan that is not intended to be an Incentive Stock
Option.

         "Option" shall mean an Incentive Stock Option or a Non-Qualified Stock
Option.

         "Other Stock-Based Award" shall mean an award granted pursuant to
Section 6(f) of the Plan that is not otherwise specifically provided for in
another paragraph of Section 6 and the value of which is based in whole or in
part upon the value of a Share.

         "Participant" shall mean any Employee, Consultant or Director granted
an Award under the Plan.

         "Performance Award" shall mean any right granted under Section 6(c) of
the Plan.

         "Person" shall mean individual, corporation, partnership, association,
joint-stock company, trust, unincorporated organization, government or political
subdivision thereof or other entity.

         "Phantom Shares" shall mean an Award of the right to receive Shares
issued at the end of a Restricted Period which is granted pursuant to Section
6(e) of the Plan.

         "Restricted Period" shall mean the period established by the Committee
with respect to an Award during which the Award either remains subject to
forfeiture or is not exercisable by the Participant.

         "Restricted Stock" shall mean any Share, prior to the lapse of
restrictions thereon, granted under Section 6(b) of the Plan.

         "Rule 16b-3" shall mean Rule 16b-3 promulgated by the SEC under the
Exchange Act, or any successor rule or regulation thereto as in effect from time
to time.

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         "SEC" shall mean the Securities and Exchange Commission, or any
successor thereto.

         "Shares" or "Common Shares" or "Common Stock" shall mean the common
stock of the Company, $1.00 par value, and such other securities or property as
may become the subject of Awards of the Plan.

         "Subsidiary" shall mean any "subsidiary corporation" of the Company as
defined in Section 424 of the Code.

SECTION 3. ADMINISTRATION.

         The Plan shall be administered by the Committee. A majority of the
Committee shall constitute a quorum, and the acts of the members of the
Committee who are present at any meeting thereof at which a quorum is present,
or acts unanimously approved by the members of the Committee in writing, shall
be the acts of the Committee. Subject to the terms of the Plan and applicable
law, and in addition to other express powers and authorizations conferred on the
Committee by the Plan, the Committee shall have full power and authority to: (i)
designate Participants; (ii) determine the type or types of Awards to be granted
to a Participant; (iii) determine the number of Shares to be covered by, or with
respect to which payments, rights, or other matters are to be calculated in
connection with, Awards; (iv) determine the terms and conditions of any Award;
(v) determine whether, to what extent, and under what circumstances Awards may
be settled or exercised in cash, Shares, other securities, other Awards or other
property, or canceled, forfeited, or suspended and the method or methods by
which Awards may be settled, exercised, canceled, forfeited, or suspended; (vi)
interpret and administer the Plan and any instrument or agreement relating to an
Award made under the Plan; (vii) establish, amend, suspend, or waive such rules
and regulations and appoint such agents as it shall deem appropriate for the
proper administration of the Plan; and (viii) make any other determination and
take any other action that the Committee deems necessary or desirable for the
administration of the Plan. Unless otherwise expressly provided in the Plan, all
designations, determinations, interpretations, and other decisions under or with
respect to the Plan or any award shall be within the sole discretion of the
Committee, may be made at any time and shall be final, conclusive, and binding
upon all Persons, including the company, any Subsidiary, any Participant, any
holder or beneficiary of any Award, any stockholder and any other Person. The
Committee may, subject to any applicable law, regulatory, securities exchange or
other similar restrictions, delegate to one or more officers of the Company, the
authority to grant Awards to Employees and Consultants who are not subject to
Section 16(b) of the Exchange Act. The Committee may impose such limitations and
restrictions, in addition to any required restrictions/limitations, as the
Committee may determine in its sole discretion. Any grant made pursuant to such
a delegation shall be subject to all of the provisions of the Plan concerning
this type of Award.

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SECTION 4. SHARES AVAILABLE FOR AWARDS.

         (a) Shares Available. Subject to adjustment as provided in Section
4(c), the number of Shares with respect to which Awards may be granted under the
Plan shall be 2,150,000. If an Award is forfeited or otherwise lapses, expires,
terminates or is canceled without the delivery of Shares, then the Shares
covered by such Award, to the extent of such forfeiture, expiration, lapse,
termination or cancellation, shall again be Shares with respect to which Awards
may be granted. Shares withheld by the Company to satisfy tax withholding or
other payment obligations shall be considered "constructively" delivered under
the Plan and shall not again be available for future Awards.

         (b) Sources of Shares Deliverable Under Awards. Any Shares delivered
pursuant to an Award may consist, in whole or in part, of authorized and
unissued Shares or of treasury Shares.

         (c) Adjustments. In the event of a stock dividend or stock split with
respect to Shares, the number of Shares with respect to which Awards may be
granted, the number of Shares subject to outstanding Awards, the grant or
exercise price with respect to outstanding Awards and the individual annual
grant limits with respect to Awards (other than dollar denominated Awards)
automatically shall be proportionately adjusted, without action by the
Committee; provided, however, such automatic adjustment shall be evidenced by
written addendums to the Plan and Award Agreements prepared by the Company and,
with respect to Options, shall be in accordance with the Treasury Regulations
concerning Incentive Stock Options. Further, in the event that the Committee
determines that any distribution (whether in the form of cash, Shares, other
securities, or other property), recapitalization, reorganization, merger,
spin-off, combination, repurchase, or exchange of Shares or other securities of
the Company, or other similar corporate transaction or event affects the Shares
such that an adjustment is determined by the Committee to be appropriate in
order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan, then the Committee shall, in such
manner as it may deem equitable, adjust any or all of (i) the number and type of
Shares (or other securities or property) with respect to which Awards may be
granted, (ii) the number and type of Shares (or other securities or property)
subject to outstanding Awards, and (iii) the grant or exercise price with
respect to any Award or, if deemed appropriate, make provision for a cash
payment to the holder of an outstanding Award; provided that the number of
Shares subject to any Award denominated in Shares shall always be a whole
number.

SECTION 5. ELIGIBILITY.

         Any Employee, Consultant or Director shall be eligible to be designated
a Participant by the Committee.

SECTION 6. AWARDS.

         (a) Options. Subject to the provisions of the Plan, the Committee shall
have the authority to determine Participants to whom Options shall be granted,
the number of

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Shares to be covered by each Option, the purchase price therefor and the
conditions and limitations applicable to the exercise of the Option, including
the following terms and conditions and such additional terms and conditions, as
the Committee shall determine, that are not inconsistent with the provisions of
the Plan.

         (i) Exercise Price. The purchase price per Share purchasable under an
         Option shall be determined by the Committee at the time the Option is
         granted, but shall not be less than the Fair Market Value per Share on
         the effective date of such grant.

         (ii) Time and Method of Exercise. The Committee shall determine and
         provide in the Award Agreement the time or times at which an Option may
         be exercised in whole or in part, and the method or methods by which,
         and the form or forms (which may include, without limitation, cash,
         check acceptable to the Company, Shares already-owned for more than six
         months, a "cashless-broker" exercise (through procedures approved by
         the Company), other securities or other property, a note, or any
         combination thereof, having a Fair Market Value on the exercise date
         equal to the relevant exercise price) in which payment of the exercise
         price with respect thereto may be made or deemed to have been made.

         (iii) Incentive Stock Options. An Incentive Stock Option may be granted
         only to an individual who is employed by the Company or any parent or
         subsidiary corporation (as defined in section 424 of the Code) at the
         time the Option is granted and must be granted within 10 years from the
         date the Plan was approved by the Board or the shareholders, whichever
         is earlier. To the extent that the aggregate Fair Market Value
         (determined at the time the respective Incentive Stock Option is
         granted) of Common Stock with respect to which Incentive Stock Options
         are exercisable for the first time by an individual during any calendar
         year under all incentive stock option plans of the Company and its
         parent and subsidiary corporations exceeds $100,000, such Incentive
         Stock Options shall be treated as Options which do not constitute
         Incentive Stock Options. The Committee shall determine, in accordance
         with applicable provisions of the Code, Treasury Regulations and other
         administrative pronouncements, which of a Participant's Incentive Stock
         Options will not constitute Incentive Stock Options because of such
         limitation and shall notify the Participant of such determination as
         soon as practicable after such determination. No Incentive Stock Option
         shall be granted to an individual if, at the time the Option is
         granted, such individual owns stock possessing more than 10% of the
         total combined voting power of all classes of stock of the Company or
         of its parent or subsidiary corporation, within the meaning of section
         422(b)(6) of the Code, unless (i) at the time such Option is granted
         the option price is at least 110% of the Fair Market Value of the
         Common Stock subject to the Option and (ii) such Option by its terms is
         not exercisable after the expiration of five years from the date of
         grant. An Incentive Stock Option shall not be transferable otherwise
         than by will or the laws of descent and distribution, and shall be
         exercisable during the Participant's lifetime only by such Participant
         or the Participant's guardian or legal representative. The terms of any
         Incentive Stock Option granted under the Plan shall comply in all
         respects

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          with the provisions of Section 422 of the Code, or any successor
          provision, and any regulations promulgated thereunder.

         (iv) Limits. Subject to adjustment pursuant to Section 4(c), no
         Participant may receive Options with respect to more than 200,000
         Shares during any calendar year.

         (b) Restricted Stock. Subject to the provisions of the Plan, the
Committee shall have the authority to determine the Participants to whom
Restricted Stock shall be granted, the number of Shares of Restricted Stock to
be granted to each such Participant, the duration of the Restricted Period
during which, and the conditions, including the performance criteria, if any,
under which the Restricted Stock may be forfeited to the Company, and the other
terms and conditions of such Awards.

         (i) Dividends. Dividends paid on Restricted Stock may be paid directly
         to the Participant, may be subject to risk of forfeiture and/or
         transfer restrictions during any period established by the Committee or
         sequestered and held in a bookkeeping cash account (with or without
         interest) or reinvested on an immediate or deferred basis in additional
         shares of Common Stock, which credit or shares may be subject to the
         same restrictions as the underlying Award or such other restrictions,
         all as determined by the Committee in its discretion, as provided in
         the Award Agreement.

         (ii) Registration. Any Restricted Stock may be evidenced in such manner
         as the Committee shall deem appropriate, including, without limitation,
         book-entry registration or issuance of a stock certificate or
         certificates. In the event any stock certificate is issued in respect
         of Restricted Stock granted under the Plan, such certificate shall be
         registered in the name of the Participant and shall bear an appropriate
         legend referring to the terms, conditions, and restrictions applicable
         to such Restricted Stock.

         (iii) Forfeiture and Restrictions Lapse. Except as otherwise determined
         by the Committee or the terms of the Award Agreement that granted the
         Restricted Stock, upon a Participant's termination (as determined under
         criteria established by the Committee) for any reason during the
         applicable Restricted Period, all Restricted Stock shall be forfeited
         by the Participant and re-acquired by the Company. The Committee may,
         when it finds that a waiver would be in the best interests of the
         Company, waive in whole or in part any or all remaining restrictions
         with respect to such Participant's Restricted Stock, provided, however,
         if the Award is intended to qualify as performance based compensation
         under Section 162(m) of the Code, such waiver may be only upon a
         termination due to death or disability. Unrestricted Shares, evidenced
         in such manner a the Committee shall deem appropriate, shall be issued
         to the holder of Restricted Stock promptly after the applicable
         restrictions have lapsed or otherwise been satisfied.

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         (iv) Transfer Restrictions. During the Restricted Period, Restricted
         Stock will be subject to the limitations on transfer as provided in
         Section 6(g)(ii).

         (v) Limits. Subject to adjustment pursuant to Section 4(c), the maximum
         number of Shares of Restricted Stock that may be granted to any
         Participant during any year shall not exceed 200,000 Shares.

         (c) Performance Awards. The Committee shall have the authority to
determine the Participants who shall receive a Performance Award, which shall be
denominated as a cash amount at the time of grant and confer on the Participant
the right to receive payment of all or part of such Award upon the achievement
of such performance goals during such performance periods as the Committee shall
establish with respect to the Award.

         (i) Terms and Conditions. Subject to the terms of the Plan and any
         applicable Award Agreement, the Committee shall determine the
         performance goals to be achieved during any performance period, the
         length of any performance period, the amount of any Performance Award
         and the amount of any payment to be made pursuant to any Performance
         Award.

         (ii) Payment of Performance Awards. Performance Awards may be paid (in
         cash and/or in Shares, in the sole discretion of the Committee) in a
         lump sum or in installments following the close of the performance
         period, in accordance with procedures established by the Committee with
         respect to such Award.

         (iii) Limit. The maximum amount of all Performance Awards that may be
         paid to any Participant during any year shall not exceed $2,000,000. To
         the extent the amount of the earned Performance Award(s) payable to a
         Participant in any year exceeds $2,000,000, such excess shall be
         carried over and paid to such Participant as soon as practicable at
         such future time or times, subject to the $2,000,000 annual payment
         limit, until paid in full; provided, however, any such carried over
         amounts shall be paid in full upon a Change of Control or a termination
         due to death or disability of the Participant.

         (d) Bonus Shares. The Committee shall have the authority, in its
discretion, to grant Bonus Shares to Participants. Each Bonus Share shall
constitute a transfer of an unrestricted Share to the Participant, without other
payment therefor.

         (e) Phantom Shares. The Committee shall have the authority to grant
Awards of Phantom Shares to Participants upon such terms and conditions as the
Committee may determine.

         (i) Terms and Conditions. Each Phantom Share Award shall constitute an
         agreement by the Company to issue or transfer a specified number of
         Shares or pay an amount of cash equal to the Fair Market Value of a
         specified number of Shares, or a combination thereof to the Participant
         in the future, subject to the fulfillment during the Restricted Period
         of such conditions, including performance objectives, if any, as the
         Committee may specify at the date of grant.

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         During the Restricted Period, the Participant shall not have any right
         to transfer any rights under the subject Award, shall not have any
         rights of ownership in the Phantom Shares and shall not have any right
         to vote such shares.

         (ii) Dividends. Any Phantom Share award may provide, in the discretion
         of the Committee, that any or all dividends or other distributions paid
         on Shares during the Restricted Period be credited in a cash
         bookkeeping account (with or without interest) or that equivalent
         additional Phantom Shares be awarded, which account or shares may be
         subject to the same restrictions as the underlying Award or such other
         restrictions as the Committee may determine.

         (iii) Limit. Subject to adjustment pursuant to Section 4(c), the
         maximum number of Phantom Shares that may be awarded to any Participant
         during any year shall not exceed 200,000 Phantom Shares.

         (f) Other Stock-Based Awards. The Committee may also grant to
Participants an Other Stock-Based Award, which shall consist of a right which is
an Award denominated or payable in, valued in whole or in party by reference to,
or otherwise based on or related to, Shares as is deemed by the Committee to be
consistent with the purposes of the Plan, which may include stock appreciation
rights, whether paid in Shares or cash. Subject to the terms of the Plan, the
Committee shall determine the terms and conditions of any such Other Stock-Based
Award. Subject to adjustment pursuant to Section 4(c), the maximum number of
Shares with respect to which a Participant may be granted an Other Stock-Based
Award during any year shall not exceed 200,000 Shares.

         (g) General.

         (i) Awards May Be Granted Separately or Together. Awards may, in the
         discretion of the Committee, be granted either alone or in addition to,
         in tandem with, any other Award granted under the Plan or any award
         granted under any other plan of the Company or any Subsidiary. Awards
         granted in addition to or in tandem with other Awards or awards granted
         under any other plan of the Company or any Subsidiary may be granted
         either at the same time as or at a different time from the grant of
         such other Awards or awards.

         (ii) Limits on Transfer of Awards.

                  (A) Except as provided in (C) below, each Award, and each
                  right under any Award, shall be exercisable only by the
                  Participant during the Participant's lifetime, or if
                  permissible under applicable law, by the Participant's
                  guardian or legal representative as determined by the
                  Committee.

                  (B) Except as provided in (C) below, no Award and no right
                  under any such Award may be assigned, alienated, pledged,
                  attached, sold or otherwise transferred or encumbered by a
                  Participant otherwise than (i) by will or by the laws of
                  descent and distribution or (ii) pursuant to a

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                  qualified domestic relations order, and any such purported
                  prohibited assignment, alienation, pledge, attachment, sale,
                  transfer or encumbrance shall be void and unenforceable
                  against the Company or any Subsidiary.

                  (C) To the extent specifically approved in writing by the
                  Committee, an Award (other than an Incentive Stock Option) may
                  be transferred to immediate family members or related family
                  trusts, limited partnerships or similar entities or other
                  Persons on such terms and conditions as the Committee may
                  establish or approve.

         (iii) Terms of Awards. The term of each Award shall be for such period
         as may be determined by the Committee; provided, that in no event shall
         the term of any Award exceed a period of 10 years from the date of its
         grant.

         (iv) Share Certificate. All certificates for Shares or other
         securities of the Company or any Subsidiary delivered under the Plan
         pursuant to any Award or the exercise thereof shall be subject to such
         stop transfer orders and other restrictions as the Committee may deem
         advisable under the Plan or the rules, regulations, and other
         requirements of the SEC, any stock exchange upon which such Shares or
         other securities are then listed, and any applicable federal or state
         laws, and the Committee may cause a legend or legends to be put on any
         such certificates to make appropriate reference to such restrictions.

         (v) Consideration for Grants. Awards may be granted for no cash
         consideration or for such consideration as the Committee determines
         including, without limitation, such minimal cash consideration as may
         be required by applicable law.

         (vi) Deliver of Shares or other Securities and Payment by Participant
         of Consideration. No Shares or other securities shall be delivered
         pursuant to any Award until payment in full of any amount required to
         be paid pursuant to the Plan or the applicable Award Agreement
         (including, without limitation, any exercise price or tax withholding)
         is received by the Company. Such payment may be made by such method or
         methods and in such form or forms as the Committee shall determine,
         including, without limitation, cash, Shares, other securities, other
         Awards or other property, withholding of Shares, cashless exercise with
         simultaneous sale, or any combination thereof, provided that the
         combined value, as determined by the Committee, of all cash and cash
         equivalents and the Fair Market Value of any such Shares or other
         property so tendered to the Company, as of the date of such tender, is
         at least equal to the full amount required to be paid pursuant to the
         plan or the applicable Award Agreement to the Company.

         (vii) Performance Criteria. The Committee shall establish performance
         goals applicable to those Awards, the payment of which is intended by
         the Committee to qualify as "performance-based compensation" as
         described in Section 162(m)(4)(C) of the Code. The performance goals
         shall be based upon the

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<PAGE>
          attainment of such target levels of net income, cash flows, return on
          equity, profits, stock price, return on assets, loans, deposits,
          earnings per Share and classified on nonperforming loans as may be
          specified by the Committee. Such targets (other than stock price and
          earnings per Share) may be expressed in terms of the Company, a
          Subsidiary, division, business unit, or a bank office, as determined
          by the Committee. The performance measures shall be subject to
          adjustment for changes in accounting standards required by the
          Financial Accounting Standards Board after the goal is established,
          and, to the extent provided for in the Award Agreement, shall be
          subject to adjustment for specified significant extraordinary items or
          events. In this regard, performance goals based on stock price shall
          be proportionately adjusted for any changes in the price due to a
          stock split. Performance measures may be absolute, relative to one or
          more other companies, or relative to one or more indexes, and may be
          contingent upon future performance of the Company or any Subsidiary,
          division, or department thereof. A performance goal need not be based
          upon an increase or positive result under a business criterion and
          could, for example, be based upon limiting economic losses or
          maintaining the status quo. Which factor or factors to be used with
          respect to any grant, and the weight to be accorded thereto if more
          than one factor is used, shall be determined by the Committee, in its
          sole discretion, at the time of grant.

SECTION 7. AMENDMENT AND TERMINATION.

         Except to the extent prohibited by applicable law and unless otherwise
expressly provided in an Award Agreement or in the Plan:

         (i) Amendments to the Plan. The Board or the Committee may amend,
         alter, suspend, discontinue, or terminate the Plan without the consent
         of any stockholder, Participant, other holder or beneficiary of an
         Award, or other Person; provided, however, notwithstanding any other
         provision of the Plan or any Award Agreement, without the approval of
         the stockholders of the Company (i) no such amendment, alteration,
         suspension, discontinuation, or termination shall be made that would
         increase the total number of Shares available for Awards under the
         Plan, except as provided in Section 4(c) of the Plan, or (ii) permit
         the exercise price of any outstanding Option that is "underwater" to be
         reduced or for an "underwater" Option to be cancelled and replaced with
         a new Award, if such action would result in a charge to the Company's
         financial earnings.

         (ii) Amendments to Awards. Subject to clause (i) above, the Committee
         may waive any conditions or rights under, amend any terms of, or alter
         any Award theretofore granted, provided no change in any Award shall
         adversely affect the rights of a Participant under the Award without
         the consent of such Participant. Notwithstanding the foregoing, with
         respect to any Award intended to qualify as performance-based
         compensation under Section 162(m) of the Code, no adjustment other than
         an acceleration of vesting or payment upon the Participant's death,
         disability or Change of Control, shall be authorized to the extent such
         adjustment would cause the Award to fail to so qualify.

                                      11
<PAGE>
SECTION  8. DIRECTOR FEES PAID IN STOCK/DEFERRAL OF DIRECTORS FEES.

         (a) Payment in Stock. The Committee may elect from time to time to pay
all or a portion of the Director Fees in shares of Common Stock rather than in
cash. Such election shall be made prior to the payment date for which such
election shall be effective. An election by the Committee shall be effective
only for a specified payment date, i.e., each separate payment of Directors Fees
must be separately approved by the Committee. Payments in shares shall be
subject to the following:

         (i) The number of shares of Common Stock issued to a Director upon such
         an election shall be equal to the amount of the Director Fees that
         otherwise would have been paid to the Director in cash, divided by the
         Fair Market Value of a share of Common Stock on the day on which the
         Director Fees would otherwise have been paid in cash. Only whole
         numbers of shares of Common Stock shall be issued; any fractional Share
         shall be paid in cash. If the election to pay in Shares is only for a
         portion of the Directors Fees, the remaining portion of the Director
         Fees shall be paid in cash at the time the Director Fees would normally
         be paid by the Company.

         (ii) Any shares of Common Stock issued to a Director as payment of
         Director Fees shall be deemed to be fully paid and non-assessable
         shares of Common Stock on the date of issuance and shall not be subject
         to forfeiture.

         (b) Elective Deferrals. Prior to the beginning of any year (or, with
respect to a person who is first appointed or elected a Director during a year,
within 30 days after becoming a Director), a Director may elect that all or a
designated percentage of his or her Director Fees to be earned for that year
(or, with respect to a new Director who elects within such 30-day period,
Director Fees earned after making the deferral election) shall be deferred until
the earlier of (i) his or her termination from the Board or (ii) the first
business day of any year specified in the election. For purposes of this Section
8(b), all current Directors shall be deemed new Directors first elected on the
date of the annual shareholders meeting in 2003. Deferral elections shall be
subject to the following:

         (i) deferral elections shall become irrevocable on the January 1 of the
         deferral year (or when made during the initial 30-day period by a new
         Director);

         (ii) a separate deferral election must be made for each year with
         respect to which Director Fees are to be deferred;

         (iii) deferral elections shall be made in such form and manner as may
         be provided by the Company in its discretion;

         (iv) deferred amounts shall be credited to the Participant, pursuant to
         his deferral election, either (1) in a number of Phantom Shares
         determined by dividing the amount of Director Fees deferred on such
         date by the Fair Market Value of a Share on such date or (2) a cash
         bookkeeping account, credited with "interest" at the prime rate from
         time to time as provided by the Committee;

                                       12
<PAGE>

         (v) during the period the Director holds such Phantom Shares, the
         Phantom Shares shall be credited with an amount equal to any dividends
         and other distributions made on Shares during such period, with such
         equivalent amount being credited in the form of additional Phantom
         Shares;

         (vi) a Director's Phantom Shares or deferred bookkeeping cash amount,
         including credited earnings or interest thereon, shall be 100% vested
         at all times;

         (vii) a Director's Phantom Shares shall be payable solely in Shares in
         a single lump sum, with any fractional Phantom Share paid in cash; and

         (viii) a Director's deferred bookkeeping cash amount shall be payable
         solely in cash in a single lump sum.

SECTION 9. CHANGE OF CONTROL.

         Notwithstanding any other provision of this Plan to the contrary, in
the event of a Change of Control all outstanding Awards automatically shall
become fully vested on such Change of Control (or such earlier time as may be
established by the Committee), all restrictions, if any, with respect to such
Awards shall lapse, including, without limitation, any service, longevity or
other employment requirements, and all performance criteria, if any, with
respect to such Awards shall be deemed to have been met in full to the maximum
extent without regard to any proration provisions in such Award or Award
Agreement.

         In addition to, or in lieu of, any other provision of the Plan, the
Committee may provide that all Options and/or similar awards not exercised upon
or prior to a Change of Control shall (x) terminate on such Change of Control
(unless such Change of Control is described in clause (v) of the definition of
Change of Control), (y) be assumed by the successor (or a parent thereof) in any
such merger or other corporate transaction, or (z) be surrendered in exchange
for equivalent substitute Awards (with the same material terms as the
surrendered Award, including 100% vesting) from the successor (or a parent
thereof). Notwithstanding the foregoing, no Option that is "underwater" may be
cancelled unless the Company pays the Optionee an amount in cash equal to the
Black-Scholes value of such Option, determined as if such Option were to
continue until the expiration of its original term.

SECTION 10. GENERAL PROVISIONS.

         (a) No Rights to Awards. No Participant or other Person shall have any
claim to be granted any Award, there is no obligation for uniformity of
treatment of Participants, or holders or beneficiaries of Awards and the terms
and conditions of Awards need not be the same with respect to each recipient.

         (b) Tax Withholding. The Company or any Subsidiary is authorized to
withhold from any Award, from any payment due or transfer made under any Award
or from any compensation or other amount owing to a Participant the amount (in
cash, Shares, or other property) of any applicable taxes required to be withheld
by the

                                      13

<PAGE>
Company or Subsidiary in respect of the Award, its exercise, the lapse of
restrictions thereon, or any payment or transfer under the Award and to take
such other action as may be necessary in the opinion of the Company to satisfy
all of its obligations for the payment of such taxes. In addition, the Committee
may provide, in an Award Agreement, that the Participant may direct the Company
to satisfy such Participant's tax withholding obligations through the
withholding of Shares otherwise to be acquired upon the exercise or payment of
such Award, but only to the extent such withholding does not cause a charge to
the Company's financial earnings.

         (c) No Right to Employment or Retention. The grant of an Award shall
not be construed as giving a Participant the right to be retained in the employ
of the Company or any Subsidiary or under any other service contract with the
Company or any Subsidiary, or to remain on the Board. Further, the Company or a
Subsidiary may at any time dismiss a Participant from employment or terminate
any contractual agreement or relationship with any Consultant, free from any
liability or any claim under the Plan, unless otherwise expressly provided in
the Plan, in any Award Agreement or any other agreement or contract between the
Company or a Subsidiary and the affected Participant. If a Participant's
employer ceases to be a Subsidiary, such Participant shall be deemed to have
terminated employment for purposes of the Plan, unless specifically provided
otherwise in the Award Agreement.

         (d) Governing Law. The validity, construction, and effect of the Plan
and any rules and regulations relating to the Plan shall be determined in
accordance with the laws of the State of Texas and applicable federal law.

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

         (f) Other Laws. The Committee may refuse to issue or transfer any
Shares or other consideration under an Award, permit the exercise of an Award
and/or the satisfaction of its tax withholding obligation in the manner elected
by the Participant, holder or beneficiary if, acting in its sole discretion, it
determines that the issuance of transfer or such Shares or such other
consideration, the manner of exercise or satisfaction of the tax withholding
obligation might violate any applicable law or regulation, including without
limitation, the Sarbanes-Oxley Act, or entitle the Company to recover the same
under Section 16(b) of the Exchange Act, and any payment tendered to the Company
by a Participant, other holder or beneficiary in connection with the exercise of
such Award shall be promptly refunded or refused, as the case may be, to the
relevant Participant, holder or beneficiary.

                                      14
<PAGE>
         (g) No Trust or Fund Created. Neither the Plan nor the Award shall
create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company or any Subsidiary and a Participant
or any other Person. To the extent that any Person acquires a right to receive
payments from the Company or any Subsidiary pursuant to an Award, such right
shall be no greater than the right of any general unsecured creditor of the
Company or any Subsidiary.

         (h) No Fractional Shares. No fractional Shares shall be issued or
delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash, other securities, or other property shall be paid or transferred
in lieu of any fractional Shares or whether such fractional Shares or any rights
thereto shall be cancelled, terminated, or otherwise eliminated.

         (i) Headings. Headings are given to the Section and subsections of the
Plan solely as a convenience to facilitate reference. Such headings shall not be
deemed in any way material or relevant to the construction or interpretation of
the plan or any provision thereof.

         (j) Parachute Tax Gross-Ups. To the extent that the grant, payment, or
acceleration of vesting or payment, whether in cash, Shares or other property,
of any Award made to a Participant under the Plan (a "Benefit") is subject to an
excise tax under Section 4999(a) of the Code or successor provision with respect
to such Benefit (a "Parachute Tax"), the Company shall promptly pay such
Participant an amount of cash (the "Gross-up Amount") such that the "net
after-tax" Benefit received by the person, after paying all applicable Parachute
Taxes (including those on the Gross-Up Amount) and all other taxes on the
Gross-Up Amount, shall be equal to the "net after-tax" Benefit that such person
would have received if such Person had not been subject to a Parachute Tax.

SECTION 11. EFFECTIVE DATE OF PLAN.

         The Plan shall be effective as of the date of its approval by the
stockholders of the Company; no Awards may be made prior to such date. Upon the
Plan becoming effective, no further grants may be made under the Company's 1994
Stock Incentive Plan or 1995 Non-Employee Director Stock Compensation Plan.

SECTION 12. TERM OF THE PLAN.

         No Award shall be granted under the Plan after the 10th anniversary of
the date this Plan was first adopted by the Board. However, unless otherwise
expressly provided in the Plan or in an applicable Award Agreement, any Award
granted prior to such termination, and the authority of the Board or the
Committee to amend, alter, adjust, suspend, discontinue, or terminate any such
Award or to waive any conditions or rights under such Award, shall extend beyond
such termination date.

                                  15

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