Document:

Exhibit 10.1

Exhibit 10.1

THIRD
AMENDED AND RESTATED SUMMUS, INC. 

2000
EQUITY COMPENSATION PLAN

ARTICLE
I - GENERAL PROVISIONS

1.1    The Plan
is designed for the benefit of the Company to secure and retain the services of
Eligible Participants. The Board believes the Plan will promote and increase
personal interests in the welfare of the Company by, and provide incentive to,
those who are primarily responsible not only for its regular operations but also
for shaping and carrying out the long-range plans of the Company and ordering
its continued growth and financial success.

1.2    Awards
under the Plan may be made to Participants in the form of (i) Incentive Stock
Options; (ii) Nonqualified Stock Options; (iii) Stock Appreciation Rights; (iv)
Restricted Stock; (v) Deferred Stock; (vi) Stock Awards; (vii) Performance
Shares; and (viii) Other Stock-Based Awards and other forms of equity-based
compensation as may be provided and are permissible.

1.3    The Plan
shall be effective January 31st, 2000
(the “Effective Date”). 

ARTICLE
II - DEFINITIONS

Except
where the context otherwise indicates, the following definitions
apply:

2.1    “Act”
means the Securities Exchange Act of 1934, as now in effect or as hereafter
amended. All citations to sections of the Act or rules thereunder are to such
sections or rules as they may from time to time be amended or
renumbered.

2.2    “Agreement”
means the written agreement between the Company and the Participant evidencing
each Award granted to a Participant under the Plan.

2.3    “Award”
means an award granted to a Participant under the Plan of a Stock Option, Stock
Appreciation Rights or of Restricted Stock, Deferred Stock, Stock Awards,
Performance Shares, Other Stock-Based Awards or of any combination of the
foregoing.

2.4    “Board”
means the Board of Directors of Summus, Inc. (USA).

2.5    “Code”
means the Internal Revenue Code of 1986, as now in effect or as hereafter
amended. All citations to sections of the Code are to such sections as they may
from time to time be amended or renumbered.

2.6    “Committee”
means the Compensation Committee of the Board or such other committee consisting
of two or more members as may be appointed by the Board to administer this Plan
pursuant to Article III.

2.7    “Company”
means Summus, Inc., a Delaware corporation, and its successors and assigns. The
term “Company” shall include any company during any period that it is a “parent
corporation” or a “subsidiary corporation” of the Company within the meaning of
Code section 424(d). With respect to all purposes of the Plan, including, but
not limited to, the establishment, amendment, termination, operation and
administration of the Plan, Summus, Inc. shall be authorized to act on behalf of
all other entities included within the definition of “Company.”

2.8    “Deferred
Stock” means the stock awarded under Article IX of the Plan.

2.9    “Disability,”
with respect to any Incentive Stock Option, means disability as determined under
section 22(e)(3) of the Code, and, with respect to any other Award, means (i)
with respect to a Participant who is eligible to participate in the Company’s
program of long-term disability insurance, if any, a condition with respect to
which the Participant is entitled to commence benefits under such program of
long-term disability insurance, and (ii) with respect to any Participant
(including a Participant who is eligible to participate in the Company’s program
of long-term disability insurance, if any), a disability as determined under
procedures established by the Committee or in any Award.

2.10   “Eligible
Participant” means an active full-time employee of the Company (including
officers), as shall be determined by the Committee, as well as any other person,
including members of the Board and consultants who provide services to the
Company, subject to limitations as may be provided by the Code, the Act or the
Committee, as shall be determined by the Committee.

2.11   “Fair
Market Value” means the fair market value of a share of Stock, as determined in
good faith by the Committee; provided, however, that 

(a)    if the
Stock is listed on a national securities exchange, Fair Market Value on a date
shall be the closing sale price reported for the Stock on such exchange on such
date if at least 100 shares of Stock were sold on such date or, if fewer than
100 shares of stock were sold on such date, then Fair Market Value on such date
shall be the closing sale price reported for the Stock on such exchange on the
last prior date on which at least 100 shares were sold, all as reported in
The
Wall Street Journal or such
other source as the Committee deems reliable; and

(b)    if the
Stock is not listed on a national securities exchange but is admitted to
quotation on the National Association of Securities Dealers Automated Quotation
System or other comparable quotation system, Fair Market Value on a date shall
be the last sale price reported for the Stock on such system on such date if at
least 100 shares of Stock were sold on such date or, if fewer than 100 shares of
Stock were sold on such date, then Fair Market Value on such date shall be the
average of the high bid and low asked prices reported for the Stock on such
system on such date or, if no shares of Stock were sold on such date, then Fair
Market Value on such date shall be the last sale price reported for the Stock on
such system on the last date on which at least 100 shares of Stock were sold,
all as reported in The
Wall Street Journal or such
other source as the Committee deems reliable; and

(c)    If the
Stock is not traded on a national securities exchange or reported by a national
quotation system, if any broker-dealer makes a market for the Stock, then the
Fair Market Value of the Stock on a date shall be the average of the highest and
lowest quoted selling prices of the Stock in such market on such date if at
least 100 shares of Stock were sold on such date or, if fewer than 100 shares of
Stock were sold on such date, then Fair Market Value on such date shall be the
average of the high bid and low asked prices for the Stock in such market on
such date or, if no prices are quoted on such date, then Fair Market Value on
such date shall be the average of the highest and lowest quoted selling prices
of the Stock in such market on the last date on which at least 100 shares of
Stock were sold.

2.12    “Incentive
Stock Option” means a Stock Option granted to an Eligible Participant under
Article IV of the Plan.

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2.13    “Nonqualified
Stock Option” means a Stock Option granted to an Eligible Participant under
Article V of the Plan.

2.14    “Nontandem
Stock Appreciation Right” means any Stock Appreciation Right granted pursuant to
Article VI of the Plan in a manner not related to a grant of a Stock
Option.

2.15    “Option
Grant Date” means, as to any Stock Option, the latest of:

(a)    the date
on which the Committee takes action to grant the Stock Option to the
Participant;

(b)    the date
the Participant receiving the Stock Option becomes an employee of the Company,
to the extent employment status is a condition of the grant or a requirement of
the Code or the Act; or

(c)    such
other date (later than the dates described in (a) and (b) above) as the
Committee may designate.

2.16    “Participant”
means an Eligible Participant to whom an Award has been granted and who has
entered into an Agreement evidencing the Award.

2.17    “Performance
Shares” means shares of Stock that are subject to an Award pursuant to Article
XI of the Plan.

2.18    “Plan”
means the Amended and Restated Summus, Inc.(USA) 2000 Equity Compensation Plan,
as amended from time to time.

2.19    “Restricted
Stock” means an Award of Stock under Article VIII of the Plan, which Stock is
issued with the restriction that the holder may not sell, transfer, pledge, or
assign such Stock and with such other restrictions as the Committee, in its sole
discretion, may impose, including without limitation, any restriction on the
right to vote such Stock, and the right to receive any cash dividends, which
restrictions may lapse separately or in combination at such time or times, in
installments or otherwise, as the Committee may deem appropriate.

2.20     “Restriction
Period” means the period commencing on the date an Award of Restricted Stock is
granted and ending on such date as the Committee shall determine.

2.21    “Retirement”
means retirement from active employment with the Company, as determined by the
Committee.

2.22    “Stock”
means the common stock of Summus, Inc.(USA), as may be adjusted pursuant to the
provisions of Plan Section 3.10.

2.23    “Stock
Appreciation Right” means a Stock Right, as described in Article VI of this
Plan, which provides for an amount payable in Stock and/or cash, as determined
by the Committee, equal to the excess of the Fair Market Value of a share of
Stock on the day the Stock Right is exercised over the price at which the
Participant could exercise a related Stock Option to purchase the share of
Stock.

2.24    “Stock
Appreciation Right Fair Market Value” means a value established by the Committee
for the exercise of a Stock Appreciation Right or a limited Stock Appreciation
Right.

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2.25    “Stock
Award” means an Award of Stock granted in payment of compensation, as provided
in Article X of the Plan.

2.26    “Stock
Option” means an Incentive Stock Option or a Nonqualified Stock Option. Stock
Options granted under the Plan shall be designated as either Incentive Stock
Options or Nonqualified Stock Options, and in the absence of such designation
shall be treated as Nonqualified Stock Options.

2.27    “Stock
Right” means an Award under Article VI of the Plan. A Stock Right may be either
a Tandem Stock Appreciation Right or a Nontandem Stock Appreciation
Right.

2.28    “Tandem
Stock Appreciation Right” means any Stock Appreciation Right granted pursuant to
Article VI of the Plan in conjunction with all or part of any Stock Option
granted under the Plan pursuant to a Stock Option agreement which states that
the Participant may, in lieu of exercising the Stock Option, surrender the Stock
Option and receive shares of Stock equal in value to the Stock Appreciation
Right.

2.29    “Termination
of Employment” means the discontinuance of employment of a Participant with the
Company for any reason or, if the Participant is a non-employee member of the
Board, the termination of the Participant’s directorship, or, if the Participant
is a consultant to the Company, the termination of the Participant’s
relationship as a consultant. The determination of whether a Participant has
incurred a Termination of Employment shall be made by the Committee in its
discretion. In determining whether a Termination of Employment has occurred, the
Committee may provide that service as a consultant or service with a business
enterprise in which the Company has a significant ownership interest shall be
treated as employment with the Company. With respect to any Incentive Stock
Option, employment shall be interpreted in a manner consistent with section 422
of the Code. A Participant shall not be deemed to have incurred a Termination of
Employment if the Participant is on military leave, sick leave, or other bona
fide leave of absence approved by the Company of 90 days or fewer (or any longer
period during which the Participant is guaranteed reemployment by statute or
contract.) In the event a Participant’s leave of absence exceeds this period, he
will be deemed to have incurred a Termination of Employment on the day following
the expiration date of such period.

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ARTICLE
III - ADMINISTRATION

3.1    This Plan
shall be administered by the Committee. The Committee, in its discretion, may
delegate to one or more of its members such of its powers as it deems
appropriate. The Committee also may limit the power of any member to the extent
necessary to comply with rule 16b-3 under the Act, Code section 162(m) or any
other law or for any other purpose. Members of the Committee shall be appointed
originally, and as vacancies occur, by the Board, to serve at the pleasure of
the Board. The Board may serve as the Committee, if by the terms of the Plan all
Board members are otherwise eligible to serve on the Committee.

3.2    The
Committee shall meet at such times and places as it determines. A majority of
its members shall constitute a quorum, and the decision of a majority of those
present at any meeting at which a quorum is present shall constitute the
decision of the Committee. A memorandum signed by all of its members shall
constitute the decision of the Committee without necessity, in such event, for
holding an actual meeting.

3.3    The
Committee shall have the exclusive right to interpret, construe and administer
the Plan, to select the persons who are eligible to receive an Award, and to act
in all matters pertaining to the granting of an Award and the contents of the
Agreement evidencing the Award, including without limitation, the determination
of the number of Stock Options, Stock Rights, shares of Stock or Performance
Shares subject to an Award and the form, terms, conditions and duration of each
Award, and any amendment thereof consistent with the provisions of the Plan. All
acts, determinations and decisions of the Committee made or taken pursuant to
grants of authority under the Plan or with respect to any questions arising in
connection with the administration and interpretation of the Plan, including the
severability of any and all of the provisions thereof, shall be conclusive,
final and binding upon all Participants, Eligible Participants and their estates
and beneficiaries.

3.4    The
Committee may adopt such rules, regulations and procedures of general
application for the administration of this Plan, as it deems
appropriate.

3.5    Subject
to adjustment as provided in Plan Section 3.10, the aggregate number of shares
of Stock which are available for issuance pursuant to Awards under the Plan
shall be One Million Five Hundred Thousand (1,500,000) shares of Stock. Such
shares of Stock shall be made available from authorized and unissued shares. If,
for any reason, any shares of Stock awarded or subject to purchase under the
Plan are not delivered or purchased, or are reacquired by the Company, for
reasons including, but not limited to, a forfeiture of Restricted Stock or
termination, expiration or cancellation of a Stock Option, such shares of Stock
shall not be charged against the aggregate number of shares of Stock available
for issuance pursuant to Awards under the Plan and shall again be available for
issuance pursuant to Award under the Plan. If the exercise price and/or
withholding obligation under a Stock Option is satisfied by tendering shares of
Stock to the Company (either by actual delivery or attestation), only the number
of shares of Stock issued net of the share of Stock so tendered shall be deemed
delivered for purposes of determining the maximum number of shares of Stock
available for issuance under the Plan.

3.6    Each
Award granted under the Plan shall be evidenced by a written Award Agreement.
Each Award Agreement shall be subject to and incorporate, by reference or
otherwise, the applicable terms and conditions of the Plan, and any other terms
and conditions, not inconsistent with the Plan, as may be imposed by the
Committee.

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3.7    The
Company shall not be required to issue or deliver any certificates for shares of
Stock prior to:

(a)    the
listing of such shares on any stock exchange on which the Stock may then be
listed; and

(b)    the
completion of any registration or qualification of such shares of Stock under
any federal or state law, or any ruling or regulation of any government body
which the Company shall, in its discretion, determine to be necessary or
advisable.

The
Company will from time to time, as is necessary to accomplish the purposes of
this Plan, seek to obtain from any regulatory agency having jurisdiction any
requisite authority in order to issue and sell shares of Stock hereunder. The
inability of the Company to obtain from any regulatory agency having
jurisdiction the authority deemed by the Company’s counsel to be necessary to
the lawful issuance and sale of any shares of the Stock hereunder shall relieve
the Company of any liability in respect of the nonissuance or sale of the Stock
as to which the requisite authority shall not have been obtained.

3.8    All
certificates for shares of Stock delivered under the Plan shall also be subject
to such stop-transfer orders and other restrictions as the Committee may deem
advisable under the rules, regulations, and other requirements of the Securities
and Exchange Commission, any stock exchange upon which the Stock is then listed
and any applicable federal or state laws, and the Committee may cause a legend
or legends to be placed on any such certificates to make appropriate reference
to such restrictions. In making such determination, the Committee may rely upon
an opinion of counsel for the Company.

3.9    Subject
to the restrictions on Restricted Stock, as provided in Article VIII of the Plan
and in the Restricted Stock Award Agreement, each Participant who receives an
Award of Restricted Stock shall have all of the rights of a shareholder with
respect to such shares of Stock, including the right to vote the shares to the
extent, if any, such shares possess voting rights and receive dividends and
other distributions. Except as provided otherwise in the Plan or in an Award
Agreement, no Participant awarded a Stock Option, Stock Right, Deferred Stock,
Stock Award or Performance Share shall have any right as a shareholder with
respect to any shares of Stock covered by his or her Stock Option, Stock Right,
Deferred Stock, Stock Award or Performance Share prior to the date of issuance
to him or her of a certificate or certificates for such shares of
Stock.

3.10    If any
reorganization, recapitalization, reclassification, stock split, stock dividend,
or consolidation of shares of Stock, merger or consolidation or separation,
including a spin-off, of the Company or sale or other disposition by the Company
of all or a portion of its assets, any other change in the Company’s corporate
structure, or any distribution to shareholders other than a cash dividend
results in the outstanding shares of Stock, or any securities exchanged therefor
or received in their place, being exchanged for a different number or class of
shares of Stock or other securities of the Company, or for shares of Stock or
other securities of any other corporation; or new, different or additional
shares or other securities of the Company or of any other corporation being
received by the holders of outstanding shares of Stock, then the Committee may
make equitable adjustments in:

(a)    the
limitation on the aggregate number of shares of Stock that may be awarded as set
forth in Plan Section 3.5;

(b)    the
number of shares and class of Stock that may be subject to an Award, and which
have not been issued or transferred under an outstanding Award;

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(c)    the
purchase price to be paid per share of Stock under outstanding Stock Options;
and

(d)    the
terms, conditions or restrictions of any Award and Award Agreement, including
the price payable for the acquisition of Stock;

provided,
however, that all adjustments made as the result of the foregoing in respect of
each Incentive Stock Option shall be made so that such Stock Option shall
continue to be an incentive stock option within the meaning of Code section 422,
unless the Committee takes affirmative action to treat such Stock Option instead
as a Nonqualified Stock Option.

3.11    In
addition to such other rights of indemnification as they may have as directors
or as members of the Committee, the members of the Committee shall be
indemnified by the Company against reasonable expenses, including attorney’s
fees, actually and necessarily incurred in connection with the defense of any
action, suit or proceeding, or in connection with any appeal therein, to which
they or any of them may be a party by reason of any action taken or failure to
act under or in connection with the Plan or any Award granted thereunder, and
against all amounts paid by them in settlement thereof, provided such settlement
is approved by independent legal counsel selected by the Company, or paid by
them in satisfaction of a judgment or settlement in any such action, suit or
proceeding, except as to matters as to which the Committee member has been
negligent or engaged in misconduct in the performance of his duties; provided,
that within 60 days after institution of any such action, suit or proceeding, a
Committee member shall in writing offer the Company the opportunity, at its own
expense, to handle and defend the same.

3.12    The
Committee may require each person purchasing shares of Stock pursuant to a Stock
Option or other Award under the Plan to represent to and agree with the Company
in writing that he is acquiring the shares of Stock without a view to
distribution thereof. The certificates for such shares of Stock may include any
legend which the Committee deems appropriate to reflect any restrictions on
transfer.

3.13    The
Committee shall be authorized to make adjustments in performance based criteria
or in the terms and conditions of other Awards in recognition of unusual or
nonrecurring events affecting the Company or its financial statements or changes
in applicable laws, regulations or accounting principles. The Committee may
correct any defect, supply any omission or reconcile any inconsistency in the
Plan or any Award Agreement in the manner and to the extent it shall deem
desirable to carry it into effect. In the event the Company shall assume
outstanding employee benefit awards or the right or obligation to make future
such awards in connection with the acquisition of another corporation or
business entity, the Committee may, in its discretion, make such adjustments in
the terms of Awards under the Plan as it shall deem appropriate.

3.14    All
outstanding Awards to any Participant may be canceled if (a) the Participant,
without the consent of the Committee, while employed by the Company or after
termination of such employment, becomes associated with, employed by, renders
services to, or owns any interest in, other than any insubstantial interest, as
determined by the Committee, any business that is in competition with the
Company or with any business in which the Company has a substantial interest as
determined by the Committee; or (b) is terminated for cause as determined by the
Committee.

3.15    In
connection with any underwritten public offering by the Company of its equity
securities pursuant to an effective registration statement filed under the
Securities Act of 1933, a Participant shall not sell, make any short sale of,
loan, hypothecate, pledge, grant any option for the purchase of, or otherwise
dispose or transfer for value or otherwise agree to engage in any of the

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foregoing
transactions with respect to, any Stock acquired under the Plan without the
prior written consent of the Company or its underwriters. Such restriction (the
“Market Stand-Off”) shall be in effect for such period of time from and after
the effective date of the final prospectus for the offering as may be requested
by the Company or such underwriters. In no event, however, shall such period
exceed the period for which securities owned by the Chief Executive Officer of
the Company are subject to the same restrictions. Any new, substituted or
additional securities that are by reason of any recapitalization or
reorganization distributed with respect to Stock acquired under the Plan shall
be immediately subject to the Market Stand-Off, to the same extent the Stock
acquired under the Plan is at such time covered by such provisions. In order to
enforce the Market Stand-Off, the Company may impose stop-transfer restrictions
with respect to the Stock acquired under the Plan until the end of the
applicable stand-off period.

ARTICLE
IV - INCENTIVE STOCK OPTIONS

4.1    Each
provision of this Article IV and of each Incentive Stock Option granted under
the Plan shall be construed in accordance with the provisions of Code section
422, and any provision hereof that cannot be so construed shall be
disregarded.

4.2    Incentive
Stock Options shall be granted only to Eligible Participants who are in the
active employment of the Company, and to individuals to whom grants are
conditioned upon active employment, each of whom may be granted one or more such
Incentive Stock Options for a reason related to his employment at such time or
times determined by the Committee following the Effective Date through the date
which is ten (10) years following the Effective Date, subject to the following
conditions:

(a)    The
Incentive Stock Option exercise price per share of Stock shall be set in the
Agreement, but shall not be less than 100% of the Fair Market Value of the Stock
on the Option Grant Date. If the Eligible Participant owns more than 10% of the
outstanding Stock (as determined pursuant to Code section 424(d)) on the Option
Grant Date, the Incentive Stock Option exercise price per share shall not be
less than 110% of the Fair Market Value of the Stock on the Option Grant Date;
provided, however, that if an Incentive Stock Option is granted to such an
Eligible Participant at an exercise price per share that is less than 110% of
Fair Market Value of the stock on the Option Grant Date, such Option shall be
deemed a Nonqualified Stock Option.

(b)    The
Incentive Stock Option may be exercised in whole or in part from time to time
within ten (10) years from the Option Grant Date (five (5) years if the Eligible
Participant owns more than 10% of the Stock on the Option Grant Date), or such
shorter period as may be specified by the Committee in the Award; provided, that
in any event, the Incentive Stock Option and related Stock Right shall lapse and
cease to be exercisable upon a Termination of Employment or within such period
following a Termination of Employment as shall have been specified in the
Incentive Stock Option Award Agreement, which period shall in no event exceed
three months unless:

(i)    employment
shall have terminated as a result of death or Disability, in which event such
period shall not exceed one year after the date of death or Disability;
or

(ii)    death
shall have occurred following a Termination of Employment and while the
Incentive Stock Option or Stock Right was still exercisable, in which event such
period shall not exceed one year after the date of death; provided, further,
that such period following a Termination of Employment shall in no event extend
the original exercise period of the Incentive Stock Option.

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(c)    To the
extent the aggregate Fair Market Value, determined as of the Option Grant Date,
of the shares of Stock with respect to which incentive stock options (determined
without regard to this subsection) are first exercisable during any calendar
year (under this Plan or any other plan of the Company and its parent and
subsidiary corporations (within the meaning of Code sections 424(e) and 424(f),
respectively)), by Participant exceeds $100,000, such Incentive Stock Options
granted under the Plan shall be treated as Nonqualified Stock Options granted
under Article V.

(d)    The
Committee may adopt any other terms and conditions which it determines should be
imposed for the Incentive Stock Option to qualify under Code section 422, as
well as any other terms and conditions not inconsistent with this Article IV as
determined by the Committee.

(e)    All or
any portion of the shares of Stock authorized for issuance pursuant to Section
3.5 herein shall be available for issuance pursuant to Incentive Stock Options
granted under this Plan.

4.3 To the
extent an Incentive Stock Option fails to meet the requirements of Code section
422, it shall be deemed a Nonqualified Stock Option.

4.4    The
Committee may at any time offer to buy out for a payment in cash, Stock,
Deferred Stock or Restricted Stock an Incentive Stock Option previously granted,
based on such terms and conditions as the Committee shall establish and
communicate to the Participant at the time that such offer is made.

4.5    If the
Incentive Stock Option Award Agreement so provides, the Committee may require
that all or part of the shares of Stock to be issued upon the exercise of an
Incentive Stock Option shall take the form of Deferred or Restricted Stock,
which shall be valued on the date of exercise, as determined by the Committee,
on the basis of the Fair Market Value of such Deferred Stock or Restricted Stock
determined without regard to the deferral limitations and/or forfeiture
restrictions involved.

4.6    Any
Incentive Stock Option that fails to qualify under section 422 of the Code shall
be treated as a Nonqualified Stock Option granted under Article V.

ARTICLE
V - NONQUALIFIED STOCK OPTIONS

5.1    Nonqualified
Stock Options may be granted to Eligible Participants to purchase shares of
Stock at such time or times determined by the Committee, following the Effective
Date, subject to the terms and conditions set forth in this Article
V.

5.2    The
Nonqualified Stock Option exercise price per share of Stock shall be established
in the Agreement and may be more than, equal to or less than 100% of the Fair
Market Value at the time of the grant, but may not be less than par value of the
Stock.

5.3    A
Nonqualified Stock Option may be exercised in full or in part from time to time
within such period as may be specified by the Committee in the Agreement;
provided, that, in any event, the Nonqualified Stock Option shall lapse and
cease to be exercisable upon a Termination of Employment or within such period
following a Termination of Employment as shall have been specified in the
Nonqualified Stock Option Award Agreement, provided, that such period following
a Termination of Employment shall in no event extend the original exercise
period of the Nonqualified Stock Option.

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5.4    The
Nonqualified Stock Option Award Agreement may include any other terms and
conditions not inconsistent with this Article V or Article VII, as determined by
the Committee.

ARTICLE
VI - STOCK APPRECIATION RIGHTS

6.1    A Stock
Appreciation Right may be granted to an Eligible Participant in connection with
an Incentive Stock Option or a Nonqualified Stock Option granted under Article
IV or Article V of this Plan (referred to as a “Tandem Stock Appreciation
Right”), or may be granted independent of any related Stock Option (referred to
as a “Nontandem Stock Appreciation Right”). A Stock Appreciation Right granted
under the Plan shall be designated as either a: (i) Tandem Stock Appreciation
Right, or (ii) Nontandem Stock Appreciation Right.

6.2    A Tandem
Stock Appreciation Right shall entitle a holder of a Stock Option, within the
period specified for the exercise of the Stock Option, to surrender the
unexercised Stock Option, or a portion thereof, and to receive in exchange
therefor a payment in cash or shares of Stock having an aggregate value equal to
the amount by which the Fair Market Value of each share of Stock exceeds the
Stock Option price per share of Stock, times the number of shares of Stock under
the Stock Option, or portion thereof, which is surrendered.

6.3    Each
Tandem Stock Appreciation Right granted hereunder shall be subject to the same
terms and conditions as the related Stock Option, including limitations on
transferability, and shall be exercisable only to the extent such Stock Option
is exercisable and shall terminate or lapse and cease to be exercisable when the
related Stock Option terminates or lapses. The grant of Tandem Stock
Appreciation Rights related to Incentive Stock Options must be concurrent with
the grant of the Incentive Stock Options. With respect to Nonqualified Stock
Options, the grant of Tandem Stock Appreciation Rights either may be concurrent
with the grant of the Nonqualified Stock Options, or in connection with
Nonqualified Stock Options previously granted under Article V, which are
unexercised and have not terminated or lapsed.

6.4    Upon
exercise of a Tandem Stock Appreciation Right, the number of shares of Stock
subject to exercise under any related Stock Option shall automatically be
reduced by the number of shares of Stock represented by the Stock Option or
portion thereof which is surrendered.

6.5    The
Committee may grant Nontandem Stock Appreciation Rights and shall specify at the
time of grant the number of shares of Stock covered by such right and the base
price of a share of Stock (the “Base Price”), which shall not be less than 100%
of Fair Market Value of a share of Stock on the date of grant. A Nontandem Stock
Appreciation Right shall be exercisable during such period as the Committee
shall determine. Upon exercise of a Nontandem Stock Appreciation Right, the
Participant shall be entitled to receive from the Company cash and/or Stock
having an aggregate Fair Market Value equal to the (i) the excess of (A) the
Fair Market Value of one (1) share of Stock at the time of exercise over (B) the
Base Price, multiplied by (ii) the number of shares of Stock covered by the
Nontandem Stock Appreciation Right, or the portion thereof being
exercised.

6.6    The
Committee shall have sole discretion to determine in each case whether the
payment with respect to the exercise of a Stock Appreciation Right will be in
the form of all cash or all Stock, or any combination thereof. If payment is to
be made in Stock, the number of shares of Stock shall be determined based on the
Fair Market Value of the Stock on the date of exercise. If the Committee elects
to make full payment in Stock, no fractional shares of Stock shall be issued and
cash payments shall be made in lieu of fractional shares.

10

6.7    The
Committee shall have sole discretion as to the timing of any payment made in
cash or Stock, or a combination thereof, upon exercise of Stock Appreciation
Rights. Payment may be made in a lump sum, in annual installments or may be
otherwise deferred; and the Committee shall have sole discretion to determine
whether any deferred payments may bear amounts equivalent to interest or cash
dividends.

6.8    The
exercise of a Stock Appreciation Right shall be effective only upon the
Participant’s satisfaction (as determined by the Committee in its discretion) of
any tax withholding obligations with respect to such exercise.

ARTICLE
VII - INCIDENTS OF STOCK OPTIONS AND STOCK RIGHTS

7.1    Each
Stock Option and Stock Right shall be granted subject to such terms and
conditions, if any, not inconsistent with this Plan, as shall be determined by
the Committee, including any provisions as to continued employment as
consideration for the grant or exercise of such Stock Option or Stock Right and
any provisions that may be advisable to comply with applicable laws, regulations
or rulings of any governmental authority.

7.2    [Reserved]

7.3    Except as
provided below, a Stock Option or Stock Right shall not be transferable by the
Participant other than by will or by the laws of descent and distribution, or,
to the extent otherwise allowed by applicable law, pursuant to a qualified
domestic relations order as defined by the Code or the Employee Retirement
Income Security Act of 1974, as amended, or the rules thereunder, and shall be
exercisable during the lifetime of the Participant only by him or in the event
of his death or Disability, by his guardian or legal representative; provided,
however, that a Nonqualified Stock Option (including a Tandem Stock Appreciation
Right related thereto) may be transferred and exercised by the transferee to the
extent determined by the Committee to be consistent with securities and other
applicable laws, rules and regulations and with Company policy. Notwithstanding
any language herein or in any Agreement to the contrary, any restrictions on
transfer of a Stock Option or Stock Right in the Plan or an Agreement shall be
void and of no effect if the Committee determines that a transfer can be made
consistent with securities and other applicable laws, rules and
regulations.

7.4    Shares of
Stock purchased upon exercise of a Stock Option shall be paid for at the time of
exercise (or, in case of an exercise pursuant to a cashless exercise mechanism
described below, as soon as practicable after such exercise) in cash or by
tendering (either by actual delivery or by attestation) shares of Stock
acceptable to the Committee and valued as of the exercise date or in any
combination thereof in such amounts, at such times and upon such terms as shall
be determined by the Committee, subject to limitations set forth in the
corresponding Stock Option Award Agreement. The Committee may establish a
cashless exercise mechanism by which a Participant may pay the exercise price
under a Stock Option by irrevocably authorizing a third party to sell shares of
Stock (or a sufficient portion of the shares) acquired upon exercise of the
Stock Option and remit to the Company a sufficient portion of the sales proceeds
to pay the entire exercise price and/or any tax withholding resulting from such
exercise. Without limiting the foregoing, the Committee may establish payment
terms for the exercise of Stock Options which permit the Participant to deliver
shares of Stock, or other evidence of ownership of Stock satisfactory to the
Company, with a Fair Market Value equal to the Stock Option price as
payment.

11

7.5    No cash
dividends shall be paid on shares of Stock subject to unexercised Stock Options
or Stock Rights. The Committee may provide, however, that a Participant to whom
a Stock Option or Stock Right has been granted which is exercisable in whole or
in part at a future time for shares of Stock shall be entitled to receive an
amount per share equal in value to the cash dividends, if any, paid per share on
issued and outstanding Stock, as of the dividend record dates occurring during
the period between the date of the grant and the time each such share of Stock
is delivered pursuant to exercise of such Stock Option or Stock Right. Such
amounts (herein called “dividend equivalents”) may, in the discretion of the
Committee, be:

	
      
	
      (a)
	
      paid
      in cash or Stock either from time to time prior to, or at the time of the
      delivery of, such Stock, or upon expiration of the Stock Option or Stock
      Right if it shall not have been fully exercised;
or

	
      
	
      (b)
	
      converted
      into contingently credited shares of Stock, with respect to which dividend
      equivalents may accrue, in such manner, at such value, and deliverable at
      such time or times, as may be determined by the
  Committee.

	
      
	
      Such
      Stock, whether delivered or contingently credited, shall be charged
      against the limitations set forth in Plan Section
3.5.

7.6    The
Committee, in its sole discretion, may authorize payment of interest equivalents
on dividend equivalents which are payable in cash at a future time.

7.7 In the
event of Disability or death, the Committee, with the consent of the Participant
or his legal representative, may authorize payment, in cash or in Stock, or
partly in cash and partly in Stock, as the Committee may direct, of an amount
equal to the difference at the time between the Fair Market Value of the Stock
subject to a Stock Option and the option price in consideration of the surrender
of the Stock Option.

7.8    If a
Participant is required to pay to the Company an amount with respect to income
and employment tax withholding obligations in connection with exercise of a
Nonqualified Stock Option or Stock Right, and/or with respect to certain
dispositions of Stock acquired upon the exercise of an Incentive Stock Option,
the Committee, in its discretion and subject to such rules as it may adopt, may
permit the Participant to satisfy the obligation, in whole or in part, by
surrendering shares of Stock which the Participant already owns or by making an
irrevocable election that, in lieu of the issuance of Stock, a portion of the
total Fair Market Value of the shares of Stock subject to the Nonqualified Stock
Option or Stock Right and/or with respect to certain dispositions of Stock
acquired upon the exercise of an Incentive Stock Option, be surrendered for cash
and that such cash payment be applied to the satisfaction of the withholding
obligations. The amount to be withheld shall not exceed the statutory minimum
federal and state income and employment tax liability arising from the Stock
Option exercise transaction.

7.9    The
Committee may permit the voluntary surrender of all or a portion of any Stock
Option granted under the Plan to be conditioned upon the granting to the
Participant of a new Stock Option for the same or a different number of shares
of Stock as the Stock Option surrendered, or may require such surrender as a
condition precedent to a grant of a new Stock Option to such Participant.
Subject to the provisions of the Plan, such new Stock Option shall be
exercisable at such price, during such period and on such other terms and
conditions as are specified by the Committee at the time the new Stock Option is
granted. Upon surrender, the Stock Options surrendered shall be canceled and the
shares of Stock previously subject to them shall be available for the grant of
other Stock Options.

12

7.10    The
Committee may provide in any Stock Option Agreement entered into pursuant to the
Plan, or by separate agreement, that if a Participant makes payment upon the
exercise of any Stock Option granted hereunder in whole or in part through the
surrender of shares of Stock, such Participant shall automatically receive a new
Stock Option for the number of shares of Stock so surrendered by him at a price
equal to the Fair Market Value of the shares of Stock at the time of surrender,
exercisable on the same basis and having the same terms as the underlying Stock
Option or on such other basis as the Committee shall determine and provide in
the Stock Option Agreement.

ARTICLE
VIII - RESTRICTED STOCK

8.1    Restricted
Stock Awards may be made to Participants as an incentive for the performance of
future services that will contribute materially to the successful operation of
the Company. Awards of Restricted Stock may be made either alone or in addition
to or in tandem with other Awards granted under the Plan.

8.2    With
respect to Awards of Restricted Stock, the Committee shall:

(a)    determine
the purchase price, if any, to be paid for such Restricted Stock, which may be
more than, equal to, or less than par value and may be zero, subject to such
minimum consideration as may be required by applicable law;

(b)    determine
the length of the Restriction Period;

(c)    determine
any restrictions applicable to the Restricted Stock such as service or
performance;

(d)    determine
if the restrictions shall lapse as to all shares of Restricted Stock at the end
of the Restriction Period or as to a portion of the shares of Restricted Stock
in installments during the Restriction Period; and

(e)    determine
if dividends and other distributions on the Restricted Stock are to be paid
currently to the Participant or paid to the Company for the account of the
Participant.

8.3    Awards of
Restricted Stock must be accepted within a period of 60 days, or such shorter
period as the Committee may specify, by executing a Restricted Stock Award
Agreement and paying whatever price, if any, is required. The prospective
recipient of a Restricted Stock Award shall not have any rights with respect to
such Award, unless such recipient has executed a Restricted Stock Award
Agreement and has delivered a fully executed copy thereof to the Committee, and
has otherwise complied with the applicable terms and conditions of such
Award.

8.4    Except
when the Committee determines otherwise, or as otherwise provided in the
Restricted Stock Agreement, if a Participant terminates employment with the
Company for any reason before the expiration of the Restriction Period, all
shares of Restricted Stock still subject to restriction shall be forfeited by
the Participant and shall be reacquired by the Company.

8.5    Except as
otherwise provided in this Article VIII, or as otherwise provided in the
Restricted Stock Agreement, no shares of Restricted Stock received by a
Participant shall be sold, exchanged, transferred, pledged, hypothecated or
otherwise disposed of during the Restriction Period.

8.6    The
Committee may designate whether any Restricted Stock Award is intended to be
“performance-based compensation” within the meaning of Code section 162(m). Any
such award shall be conditioned on achievement of one or more performance
measures selected by the Committee. The grant of such Awards and the
establishment of the performance measures shall be made during the period
required under Code section 162(m). No more than 50,000 shares of Stock may be
subject to Restricted Stock Awards that are intended to constitute
“performance-based compensation” within the meaning of Code section 162(m)
granted to any one individual during any calendar year.

13

8.7    To the
extent not otherwise provided in a Restricted Stock Agreement, in cases of
death, Disability or Retirement or in cases of special circumstances, the
Committee may in its discretion elect to waive any or all remaining restrictions
with respect to such Participant’s Restricted Stock.

8.8    In the
event of hardship or other special circumstances of a Participant whose
employment with the Company is involuntarily terminated, the Committee may in
its discretion elect to waive in whole or in part any or all remaining
restrictions with respect to any or all of the Participant’s Restricted Stock,
based on such factors and criteria as the Committee may deem
appropriate.

8.9    Upon an
Award of Restricted Stock to a Participant, one or more stock certificates
representing the shares of Restricted Stock shall be registered in the
Participant’s name. Such certificates may either:

(a)    be held
in custody by the Company until the Restriction Period expires or until
restrictions thereon otherwise lapse, and the Participant shall deliver to the
Company one or more stock powers endorsed in blank relating to the Restricted
Stock; and/or

(b)    be issued
to the Participant and registered in the name of the Participant, and shall bear
an appropriate restrictive legend and shall be subject to appropriate
stop-transfer orders.

8.10    Except as
provided in this Article VIII, a Participant receiving a Restricted Stock Award
shall have, with respect to such Restricted Stock Award, all of the rights of a
shareholder of the Company, including the right to vote the shares to the
extent, if any, such shares possess voting rights and the right to receive any
dividends; provided, however, the Committee may require that any dividends on
such shares of Restricted Stock shall be automatically deferred and reinvested
in additional Restricted Stock subject to the same restrictions as the
underlying Award, or may require that dividends and other distributions on
Restricted Stock shall be paid to the Company for the account of the
Participant. The Committee shall determine whether interest shall be paid on
such amounts, the rate of any such interest, and the other terms applicable to
such amounts.

8.11    If and
when the Restriction Period expires without a prior forfeiture of the Restricted
Stock subject to such Restriction Period, unrestricted certificates for such
shares shall be delivered to the Participant; provided, however, that the
Committee may cause such legend or legends to be placed on any such certificates
as it may deem advisable under the rules, regulations and other requirements of
the Securities and Exchange Commission and any applicable federal or state
law.

8.12    In order
to better ensure that Award payments actually reflect the performance of the
Company and the service of the Participant, the Committee may provide, in its
sole discretion, for a tandem performance-based or other Award designed to
guarantee a minimum value, payable in cash or Stock to the recipient of a
Restricted Stock Award, subject to such performance, future service, deferral
and other terms and conditions as may be specified by the
Committee.

14

ARTICLE
IX - DEFERRED STOCK

9.1    Shares of
Deferred Stock together with cash dividend equivalents, if so determined by the
Committee, may be issued either alone or in addition to other Awards granted
under the Plan in the discretion of the Committee. The Committee shall determine
the individuals to whom, and the time or times at which, such Awards will be
made, the number of shares to be awarded, the price, if any, to be paid by the
recipient of a Deferred Stock Award, the time or times within which such Awards
may be subject to forfeiture, and all other conditions of the Awards. The
Committee may condition Awards of Deferred Stock upon the attainment of
specified performance goals or such other factors or criteria as the Committee
may determine.

9.2    Deferred
Stock Awards shall be subject to the following terms and
conditions:

	
      
	
      (a)
	
      Subject
      to the provisions of this Plan and the applicable Award Agreement,
      Deferred Stock Awards may not be sold, transferred, pledged, assigned or
      otherwise encumbered during the period specified by the Committee for
      purposes of such Award (the “Deferral Period”). At the expiration of the
      Deferral Period, or the Elective Deferral Period defined in Section 9.3,
      share certificates shall be delivered to the Participant, or his legal
      representative, in a number equal to the number of shares of Stock covered
      by the Deferred Stock Award.

	
      
	
      
	
      Based
      on service, performance and/or such other factors or criteria as the
      Committee may determine, the Committee, however, at or after grant, may
      accelerate the vesting of all or any part of any Deferred Stock Award
      and/or waive the deferral limitations for all or any part of such
      Award.

	
      
	
      (b)
	
      Unless
      otherwise determined by the Committee, amounts equal to any dividends that
      would have been payable during the Deferral Period with respect to the
      number of shares of Stock covered by a Deferred Stock Award if such shares
      of Stock had been outstanding shall be automatically deferred and deemed
      to be reinvested in additional Deferred Stock, subject to the same
      deferral limitations as the underlying
Award.

	
      
	
      (c)
	
      Except
      to the extent otherwise provided in this Plan or in the applicable Award
      Agreement, upon Termination of Employment during the Deferral Period for a
      given Award, the Deferred Stock covered by such Award shall be forfeited
      by the Participant; provided, however, the Committee may provide for
      accelerated vesting in the event of Termination of Employment due to
      death, Disability or Retirement, or in the event of hardship or other
      special circumstances as the Committee deems
  appropriate.

	
      
	
      (d)
	
      The
      Committee may require that a designated percentage of the total Fair
      Market Value of the shares of Deferred Stock held by one or more
      Participants be paid in the form of cash in lieu of the issuance of Stock
      and that such cash payment be applied to the satisfaction of the federal
      and state income and employment tax withholding obligations that arise at
      the time the Deferred Stock becomes free of all restrictions. The
      designated percentage shall be equal to the minimum income and employment
      tax withholding rate in effect at the time under applicable federal and
      state laws.

 

	
      
	
      (e)
	
      
      The
      Committee may provide one or more Participants subject to the mandatory
      cash payment with an election to receive an additional percentage of the
      total value of the Deferred Stock in the form of a cash payment in lieu of
      the issuance of Deferred Stock. The additional percentage shall not exceed
      the difference between 50% and the designated percentage cash
      payment.

 

 

15

	
      
	
      (f)
	
      The
      Committee may impose such further terms and conditions on partial cash
      payments with respect to Deferred Stock as it deems
      appropriate.

9.3    A
Participant may elect to further defer receipt of Deferred Stock for a specified
period or until a specified event (the “Elective Deferral Period”), subject in
each case to the Committee’s approval and to such terms as are determined by the
Committee. Subject to any exceptions adopted by the Committee, such election
must generally be made at least 12 months prior to completion of the Deferral
Period for the Deferred Stock Award in question, or for the applicable
installment of such an Award.

9.4    Each
Award shall be confirmed by, and subject to the terms of, a Deferred Stock Award
Agreement.

9.5    In order
to better ensure that the Award actually reflects the performance of the Company
and the service of the Participant, the Committee may provide, in its sole
discretion, for a tandem performance-based or other Award designed to guarantee
a minimum value, payable in cash or Stock to the recipient of a Deferred Stock
Award, subject to such performance, future service, deferral and other terms and
conditions as may be specified by the Committee.

ARTICLE
X - STOCK AWARDS

10.1    A Stock
Award shall be granted only in payment of compensation that has been earned or
as compensation to be earned, including without limitation, compensation awarded
concurrently with or prior to the grant of the Stock Award.

10.2    For the
purposes of this Plan, in determining the value of a Stock Award, all shares of
Stock subject to such Stock Award shall be valued at not less than 100% of the
Fair Market Value of such shares of Stock on the date such Stock Award is
granted, regardless of whether or when such shares of Stock are issued or
transferred to the Participant and whether or not such shares of Stock are
subject to restrictions which affect their value.

10.3    Shares of
Stock subject to a Stock Award may be issued or transferred to the Participant
at the time the Stock Award is granted, or at any time subsequent thereto, or in
installments from time to time, as the Committee shall determine. If any such
issuance or transfer shall not be made to the Participant at the time the Stock
Award is granted, the Committee may provide for payment to such Participant,
either in cash or shares of Stock, from time to time or at the time or times
such shares of Stock shall be issued or transferred to such Participant, of
amounts not exceeding the dividends which would have been payable to such
Participant in respect of such shares of Stock, as adjusted under Section 3.10,
if such shares of Stock had been issued or transferred to such Participant at
the time such Stock Award was granted. Any issuance payable in shares of Stock
under the terms of a Stock Award, at the discretion of the Committee, may be
paid in cash on each date on which delivery of shares of Stock would otherwise
have been made, in an amount equal to the Fair Market Value on such date of the
shares of Stock which would otherwise have been delivered.

10.4    A Stock
Award shall be subject to such terms and conditions, including without
limitation, restrictions on the sale or other disposition of the Stock Award or
of the shares of Stock issued or transferred pursuant to such Stock Award, as
the Committee shall determine; provided, however, that upon the issuance or
transfer of shares pursuant to a Stock Award, the Participant, with respect to
such shares of Stock, shall be and become a shareholder of the Company fully
entitled to receive dividends, to vote to the extent, if any, such shares
possess voting rights and to exercise all other rights of a shareholder except
to the extent otherwise provided in the Stock Award. Each Stock Award shall be
evidenced by a written Award Agreement in such form as the Committee shall
determine.

16

ARTICLE
XI - PERFORMANCE SHARES

11.1    Awards of
Performance Shares may be made to certain Participants as an incentive for the
performance of future services that will contribute materially to the successful
operation of the Company. Awards of Performance Shares may be made either alone,
in addition to or in tandem with other Awards granted under the Plan and/or cash
payments made outside of the Plan.

11.2    With
respect to Awards of Performance Shares, which may be issued for no
consideration or such minimum consideration as is required by applicable law,
the Committee shall:

	
      
	
      (a)
	
      determine
      and designate from time to time those Participants to whom Awards of
      Performance Shares are to be made;

	
      
	
      (b)
	
      determine
      the performance period (the “Performance Period”) and/or performance
      objectives (the “Performance Objectives”) applicable to such
      Awards;

	
      
	
      (c)
	
      determine
      the form of settlement of a Performance Share;
and

	
      
	
      (d)
	
      generally
      determine the terms and conditions of each such Award. At any date, each
      Performance Share shall have a value equal to the Fair Market Value,
      determined as set forth in Section 2.11.

11.3    Performance
Periods may overlap, and Participants may participate simultaneously with
respect to Performance Shares for which different Performance Periods are
prescribed.

11.4    The
Committee shall determine the Performance objectives of Awards of Performance
Shares. Performance Objectives may vary from Participant to Participant and
between Awards and shall be based upon such performance criteria or combination
of factors as the Committee may deem appropriate, including for example, but not
limited to, minimum earnings per share or return on equity. If during the course
of a Performance Period there shall occur significant events which the Committee
expects to have a substantial effect on the applicable Performance Objectives
during such period, the Committee may revise such Performance
Objectives.

11.5    The
Committee shall determine for each Participant the number of Performance Shares
which shall be paid to the Participant if the applicable Performance objectives
are exceeded or met in whole or in part.

11.6    If a
Participant terminates service with the Company during a Performance Period
because of death, Disability, Retirement or under other circumstances in which
the Committee in its discretion finds that a waiver would be appropriate, that
Participant, as determined by the Committee, may be entitled to a payment of
Performance Shares at the end of the Performance Period based upon the extent to
which the Performance objectives were satisfied at the end of such period and
pro rated for the portion of the Performance Period during which the Participant
was employed by the Company; provided, however, the Committee may provide for an
earlier payment in settlement of such Performance Shares in such amount and
under such terms and conditions as the Committee deems appropriate or desirable.
If a Participant terminates service with the Company during a Performance Period
for any other reason, then such Participant shall not be entitled to any payment
with respect to that Performance Period unless the Committee shall otherwise
determine.

17

11.7    Each
Award of a Performance Share shall be paid in whole shares of Stock, or cash, or
a combination of Stock and cash as the Committee shall determine, with payment
to be made as soon as practicable after the end of the relevant Performance
Period.

11.8    The
Committee shall have the authority to approve requests by Participants to defer
payment of Performance Shares on terms and conditions approved by the Committee
and set forth in a written Award Agreement between the Participant and the
Company entered into in advance of the time of receipt or constructive receipt
of payment by the Participant.

ARTICLE
XII - OTHER STOCK-BASED AWARDS

12.1    Other
awards that are valued in whole or in part by reference to, or are otherwise
based on, Stock (“Other Stock-Based Awards”), including without limitation,
convertible preferred stock, convertible debentures, exchangeable securities,
phantom stock and Stock awards or options valued by reference to book value or
performance, may be granted either alone or in addition to or in tandem with
Stock Options, Stock Rights, Restricted Stock, Deferred Stock or Stock Awards
granted under the Plan and/or cash awards made outside of the Plan.

Subject
to the provisions of the Plan, the Committee shall have authority to determine
the Eligible Participants to whom and the time or times at which such Awards
shall be made, the number of shares of Stock subject to such Awards, and all
other conditions of the Awards. The Committee also may provide for the grant of
shares of Stock upon the completion of a specified Performance
Period.

The
provisions of Other Stock-Based Awards need not be the same with respect to each
recipient.

12.2 Other
Stock-Based Awards made pursuant to this Article XII shall be subject to the
following terms and conditions:

	
      
	
      (a)
	
      Subject
      to the provisions of this Plan and the Award Agreement, shares of Stock
      subject to Awards made under this Article XII may not be sold, assigned,
      transferred, pledged or otherwise encumbered prior to the date on which
      the shares are issued, or, if later, the date on which any applicable
      restriction, performance or deferral period
lapses.

	
      
	
      (b)
	
      Subject
      to the provisions of this Plan and the Award Agreement and unless
      otherwise determined by the Committee at the time of the Award, the
      recipient of an Award under this Article XII shall be entitled to receive,
      currently or on a deferred basis, interest or dividends or interest or
      dividend equivalents with respect to the number of shares covered by the
      Award, as determined at the time of the Award by the Committee, in its
      sole discretion, and the Committee may provide that such amounts, if any,
      shall be deemed to have been reinvested in additional Stock or otherwise
      reinvested.

	
      
	
      (c)
	
      Any
      Award under this Article XII and any Stock covered by any such Award shall
      vest or be forfeited to the extent so provided in the Award Agreement, as
      determined by the Committee, in its sole
discretion.

	
      
	
      (d)
	
      Upon
      the Participant’s Retirement, Disability or death, or in cases of special
      circumstances, the Committee may, in its sole discretion, waive in whole
      or in part any or all of the remaining limitations imposed hereunder, if
      any, with respect to any or all of an Award under this Article
      XII.

18

	
      
	
      (e)
	
      Each
      Award under this Article XII shall be confirmed by, and subject to the
      terms of, an Award Agreement.

	
      
	
      (f)
	
      Stock,
      including securities convertible into Stock, issued on a bonus basis under
      this Article XII may be issued for no cash
  consideration.

12.3    Other
Stock-Based Awards may include a phantom stock Award, which is subject to the
following terms and conditions:

	
      
	
      (a)
	
      The
      Committee shall select the Eligible Participants who may receive phantom
      stock Awards. The Eligible Participant shall be awarded a phantom stock
      unit, which shall be the equivalent to a share of
Stock.

	
      
	
      (b)
	
      Under
      an Award of phantom stock, payment shall be made on the dates or dates as
      specified by the Committee or as stated in the Award Agreement and phantom
      stock Awards may be settled in cash, Stock, or some combination
      thereof.

	
      
	
      (c)
	
      The
      Committee shall determine such other terms and conditions of each Award as
      it deems necessary in its sole discretion.

ARTICLE
XIII - AMENDMENT AND TERMINATION

13.1    The Board
at any time and from time to time, may amend or terminate the Plan. To the
extent required by Code section 422 and/or the rules of the exchange upon which
the Stock is traded, no amendment, without approval by the Company’s
shareholders, shall:

(a)    alter the
group of persons eligible to participate in the Plan;

(b)    except as
provided in Plan Section 3.5, increase the maximum number of shares of Stock
which are available for issuance pursuant to Awards granted under the
Plan;

(c)    extend
the period during which Incentive Stock Options may be granted beyond the date
which is ten (10) years following the Effective Date.

(d)    imit or
restrict the powers of the Committee with respect to the administration of this
Plan;

(e)    change
the definition of an Eligible Participant for the purpose of Incentive Stock
Options or increase the limit or the value of shares of Stock for which an
Eligible Participant may be granted an Incentive Stock Option;

(f)    materially
increase the benefits accruing to Participants under this Plan;

(g)    materially
modify the requirements as to eligibility for participation in this Plan;
or

(h)    change
any of the provisions of this Article XIII.

19

13.2    No
amendment to or discontinuance of this Plan or any provision thereof by the
Board or the shareholders of the Company shall, without the written consent of
the Participant, adversely affect, as shall be determined by the Committee, any
Award previously granted to such Participant under this Plan; provided, however,
the Committee retains the right and power to treat any outstanding Incentive
Stock Option as a Nonqualified Stock Option in accordance with Plan Section
4.3.

13.3    Notwithstanding
anything herein to the contrary, if the right to receive or benefit from any
Award, either alone or together with payments that a Participant has the right
to receive from the Company, would constitute a “parachute payment” under Code
section 280G, all such payments may be reduced, in the discretion of the
Committee, to the largest amount that will avoid an excise tax to the
Participant under Code section 280G.

ARTICLE
XIV - MISCELLANEOUS PROVISIONS

14.1    Nothing
in the Plan or any Award granted under the Plan shall confer upon any
Participant any right to continue in the employ of the Company, or to serve as a
director thereof, or interfere in any way with the right of the Company to
terminate his or her employment at any time. Unless agreed by the Board, no
Award granted under the Plan shall be deemed salary or compensation for the
purpose of computing benefits under any employee benefit plan or other
arrangement of the Company for the benefit of its employees. No Participant
shall have any claim to an Award until it is actually granted under the Plan. To
the extent that any person acquires a right to receive payments from the Company
under the Plan, such right shall, except as otherwise provided by the Committee,
be no greater than the right of an unsecured general creditor of the Company.
All payments to be made under the Plan shall be paid from the general funds of
the company, and no special or separate fund shall be established and no
segregation of assets shall be made to assure payment of such amounts, except as
provided in Article VIII with respect to Restricted Stock and except as
otherwise provided by the Committee.

14.2    The
Committee may make such provisions and take such steps as it may deem necessary
or appropriate for the withholding of any taxes which the Company is required by
any law or regulation of any governmental authority, whether federal, state or
local, domestic or foreign, to withhold in connection with any Award or the
exercise thereof, including, but not limited to, withholding the payment of all
or any portion of such Award or another Award under this Plan until the
Participant reimburses the Company for the amount the Company is required to
withhold with respect to such taxes, or canceling any portion of such Award or
another Award under this Plan in an amount sufficient to reimburse itself for
the amount it is required to so withhold, or selling any property contingently
credited by the Company for the purpose of paying such Award or another Award
under this Plan in order to withhold or reimburse itself for the amount it is
required to so withhold. The amount to be withheld shall not exceed the
statutory minimum federal and state income and employment tax liability arising
from the exercise transaction.

14.3    The Plan
and the grant of Awards shall be subject to all applicable federal and state
laws, rules, and regulations and to such approvals by any United States
government or regulatory agency as may be required.

14.4    The terms
of the Plan shall be binding upon the Company, and its successors and
assigns.

14.5    The Plan
is intended to constitute an “unfunded” plan for incentive and deferred
compensation. With respect to any payments not yet made to a Participant by the
Company, nothing contained herein shall give any such Participant any rights
that are greater than those of a general creditor of the Company. In its sole
discretion, the Committee may authorize the creation of trusts or other
arrangements to meet the obligations created under the Plan to deliver shares of
Stock or payments in lieu of or with respect to Awards under the Plan; provided,
however, that, unless the Committee otherwise determines with the consent of the
affected Participant, the existence of such trusts or other arrangements is
consistent with the “unfunded” status of the Plan.

20

14.6    Each
Participant exercising an Award under the Plan agrees to give the Committee
prompt written notice of any election made by such Participant under Code
section 83(b) or any similar provision thereof.

14.7    If any
provision of this Plan or an Award Agreement is or becomes or is deemed invalid,
illegal or unenforceable in any jurisdiction, or would disqualify the Plan or
any Award Agreement under any law deemed applicable by the Committee, such
provision shall be construed or deemed amended to conform to 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 Agreement, it
shall be stricken and the remainder of the Plan or the Award Agreement shall
remain in full force and effect.

IN
WITNESS WHEREOF, this Plan is executed this the 25th day of
April, 2005.

	 	
      SUMMUS,
      INC.

	 	 
	 	 
	 	
      By: 
      /s/ Donald T.
      Locke         
      

	 	
      Donald
      T. Locke

	 	
      Chief
      Financial Officer

21

APPENDIX
A

 

SUMMUS,
INC.

AMENDED
AND RESTATED 2000 EQUITY COMPENSATION PLAN

Provisions
Applicable to California Residents

 

Notwithstanding
anything to the contrary specified elsewhere in the Plan, the following
provisions shall apply to any stock option granted under the Summus, Inc.
Amended and Restated 2000 Equity Compensation Plan (the “Plan”) to a resident of
California:

 

	
      ·
	
      The
      exercise price for an option granted to a California resident may not be
      less than 85% of the “fair value” (as defined by Rule 260.140.50 under the
      California Code) of the Company’s common stock at the time the option is
      granted. However, in the case of an option granted to a resident of
      California who owns stock possessing more than 10% of the total combined
      voting power of all classes of stock of the issuing corporation or its
      parent or subsidiary corporations at the time of grant, the exercise price
      shall be 110% of the “fair value.”

	
      ·
	
      The
      exercise period of a stock option granted to a California resident shall
      be no longer than 120 months from the date the option is
      granted.

	
      ·
	
      An
      option granted to a California resident shall not be transferable, other
      than by will or the laws of descent and
distribution.

	
      ·
	
      An
      option granted to a California resident shall vest and become exercisable
      at the rate of at least 20% per year over 5 years from the date the option
      is granted, subject to reasonable conditions such as continued employment.
      However, in the case of an option granted to a California resident who is
      an officer, director, or consultant of the Company or any of its
      affiliates, the option may become fully exercisable, subject to reasonable
      conditions such as continued employment, at any time or during any period
      established by the Company.

	
      ·
	
      Unless
      employment is terminated for cause as defined by applicable law, the terms
      of the stock option award agreement or a contract of employment, and in
      the event of termination of the optionee’s employment (to the extent that
      the optionee is otherwise entitled to exercise on the date employment
      terminates) the right to exercise an option granted to a California
      resident must expire as follows:

	
      ·
	
      At
      least 6 months from the date of termination if termination was caused by
      death or disability; or

	
      ·
	
      At
      least 30 days from the date of termination if termination was caused not
      due to death or disability.

	
      ·
	
      The
      plan shall terminate with respect to California residents on January 31,
      2010.

 

	
      ·
	
      The
      Plan shall be available to California residents only if the shareholders
      of the Company approve the plan within 12 months before or after the date
      the plan was adopted. Any option exercised by a California resident before
      such shareholder approval is obtained shall be rescinded if such
      shareholder approval is not obtained. Any such rescinded shares will not
      be counted in determining whether approval is
obtained.

 

22

	
      ·
	
      Each
      California resident who elects to participate in the Plan will be provided
      with a copy of the Company’s financial statements
  annually.

 

	
      ·
	
      At
      no time will the total number of shares of Company stock issuable under
      stock options granted under this Plan, under subscription agreements under
      any stock purchase plan maintained by the Company, and the total number of
      shares provided for under any stock bonus or similar plan of the Company
      exceed a number of shares which is equal to 30% of the then outstanding
      shares of the issuer (convertible preferred shares are counted on an as if
      converted basis) as set forth in Rule 260.140.45 under the California
      Code.

	
      ·
	
      If
      an Option granted to a California resident provides the Company the right
      to repurchase securities upon the termination of employment, the
      repurchase price will be not less than the fair market value of the
      securities to be repurchased on the date of termination of employment, and
      the right to repurchase must be exercised for cash or cancellation of
      purchase money indebtedness within 90 days of termination of employment
      (or, in the case of securities issued upon exercise of options after the
      date of termination, within 90 days after the date of the exercise). The
      Company’s repurchase right terminates when the Company’s securities become
      publicly traded. In addition to the restrictions set forth above, the
      securities held by an officer, director or consultant of the issuer or an
      affiliate of the issuer may be subject to additional or greater
      restrictions.Employment Agreement and Agreement for Severance Pay

 Exhibit 10.1 
  
 EMPLOYMENT AGREEMENT AND AGREEMENT FOR SEVERANCE PAY 
  
 THIS AGREEMENT (the “Agreement”) is made and entered into as of April 22, 2005 with an effective date as of
May 1, 2005 (the “Effective Date”) PLACER SIERRA BANK, a California banking corporation (“Bank”) and ROBERT C. CAMPBELL, JR. (“Employee”) (collectively sometimes referred to as the “Parties”): 
  
 WHEREAS, Employee, PLACER SIERRA BANCSHARES, a California corporation
(“PLSB”) and Bank entered into that certain Employment Agreement effective as of July 1, 2004, whereby Employee was employed as by PLSB as President of Bank of Orange County until the merger of the Bank of Orange County into the Bank, and,
thereafter, was employed by the Bank as President of the Bank of Orange County Division of the Bank (hereinafter “Initial Employment Agreement”). 
  
 WHEREAS, pursuant to the terms of the Initial Employment Agreement, Employee became employed solely by the Bank on July 23, 2004; 
  
 WHEREAS, the parties have agreed to terminate Employee’s position
as President of Bank of Orange County, Division of the Bank, effective as of the open of business on the Effective Date. 
  
 WHEREAS, the Parties have agreed Employee will remain employed with Bank as advisor to the Chairman of the Board and Chief Executive Officer of the
Bank beginning as of the Effective Date through July 1, 2007 to assist in transitional matters. 
  
 WHEREAS, the Parties have further agreed that Employee’s employment as advisor to the Chairman of the Board and Chief Executive Officer of the
Bank will terminate effective July 1, 2007. 
  
 WHEREAS,
the Parties have reached this Agreement governing Employee’s right to severance pay, and to resolve all issues and disputes between Employee and Bank (and/or any parent company, predecessor parent company, shareholder, subsidiary, division or
affiliate thereof); and 
  
 WHEREAS, the Parties intend
this Agreement to supersede any and all previous employment agreements between the Employee and Bank and/or PLSB, including the Initial Employment Agreement, (and each of its parent companies, shareholders, subsidiaries, divisions and affiliates),
if any; 
  
 NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:

  
 1. Termination of Employment Agreement:
Bank and Employee agree that the Initial Employment Agreement, as amended, and all prior employment agreements between Employee and Bank (and/or each of its parent companies, predecessor parent company, shareholder, subsidiary, division or affiliate
thereof) are hereby canceled, terminated, rescinded and superceded and Employee hereby releases Bank (and/or each of its parent companies, predecessor parent company, shareholder, subsidiary, division or affiliate thereof) from any and all claims,
debts or obligations under said Initial Employment Agreement, as amended, and all prior agreements.  
  

 -1- 

 2. Employment and Duties. Effective May 1, 2005, Employee is hereby employed by Bank as
advisor to the Chairman of the Board and Chief Executive Officer of the Bank. In this position, Employee shall assist the Chairman of the Board of Bank in both public and transitional matters, and shall be available by telephone at such times as are
mutually agreeable to Employee and the Chairman of the Board and Chief Executive Officer of the Bank. Employee shall not execute any contracts or incur any liabilities on behalf of Bank without the express written permission of the Chairman of the
Board of Bank. 
  
 3. Extent of Services.

  
 (a) Exclusive Employment. Employee shall be
employed exclusively by Bank and shall provide such services during the Employment Term (as defined below) as provided in Section 2 above, and shall neither directly nor indirectly render any services of a business, commercial or professional nature
to any other person, firm, corporation or organization for compensation without the prior written consent of the Chairman of the Board of Bank.  
  
 (b) Employee Investment Activities. Nothing contained herein shall be construed as preventing Employee from (i) investing his personal
assets in businesses which do not compete with Bank in such form or manner as will not require any services on the part of Employee in the operation or the affairs of the companies in which such investments are made and in which his participation is
solely that of an investor, (ii) purchasing securities in any corporation whose securities are regularly traded provided that such purchase shall not result in Employee collectively owning beneficially at any time five percent or more of the equity
securities of any corporation engaged in a business competitive to that of Bank, and (iii) participating in conferences, preparing or publishing papers or books or teaching so long as Bank approves of such activities prior to Employee’s
engaging in them. 
  
 4. Term of Employment. Subject
to prior termination of this Agreement as hereinafter provided in section 6, Bank hereby employs Employee, and Employee hereby accepts employment with Bank, for a period beginning on the Effective Date and ending on July 1, 2007 (the
“Employment Term”). 
  
 5. Compensation and
Benefits. In consideration of Employee’s services to Bank during the Employment Term, Bank agrees to compensate Employee, subject to such limitations as may exist under any federal or state banking law or regulation, as follows:

  
 (a) Base Compensation. Bank shall pay or cause
to be paid to Employee a base compensation of $250,000 per year (hereinafter the “Base Salary”), less payroll taxes and withholding required by federal, state or local law and any additional withholding to which Employee agrees in writing.
Said Base Salary shall be payable in semi-monthly installments in accordance with Bank’s normal payroll procedures. 
  
 (b) General Expenses. Bank shall, upon submission and approval of written statements and bills in accordance with the then regular
procedures of Bank, reimburse Employee for any and all reasonable necessary, customary and usual expenses incurred by him 

  

 -2- 

 
while traveling for or on behalf of Bank, and any and all other necessary, customary or usual expenses (including entertainment) incurred by Employee for or
on behalf of Bank in the normal course of business, as determined to be appropriate by Chairman of the Board and the Chief Executive Officer of the Bank. 
  
 (c) Health, Life and Disability Insurance. Bank shall provide for Employee’s participation, at Bank’s expense, in group medical,
dental, vision, life and disability insurance benefits equivalent to the maximum benefits available under the group insurance programs maintained by Bank for its employees. Employee shall have the right, in Employee’s discretion, to designate
the beneficiary or beneficiaries of any such insurance. Bank reserves the right to modify and amend such benefits from time to time. As provided under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) respecting
continuation of any insurance coverage, Employee shall, upon a loss of any such coverage for himself under Bank’s health, dental, and/or vision plans (if any) resulting from (1) termination of Employee’s employment (for any reason other
than for gross misconduct) or (2) a reduction in his hours, be entitled to exercise his COBRA rights. Employee shall pay all premiums for any such continuation coverage(s) elected by Employee. 
  
 (d) Other Benefits. Employee shall be entitled to participate
during the Employment Term in all employee benefit, welfare and other plans, practices, policies and programs generally applicable to similarly situated employees of Bank as are in effect from time to time, in accordance with the applicable terms
and conditions thereof. Bank reserves the right to modify and amend such benefits, plans, practices, policies and programs from time to time. 
  
 6. Termination of Agreement. This Agreement may be terminated during the Employment Term in accordance with this section 6. 
  
 (a) Termination Upon Change in Control. “Change in
Control” shall mean the occurrence of any of the following events: 
  
 (i) The consummation of a plan of dissolution or liquidation of Bank; 
  
 (ii) The consummation of a plan of reorganization, merger or consolidation involving Bank, except for a reorganization, merger or consolidation
where (A) the shareholders of Bank immediately prior to such reorganization, merger or consolidation own directly or indirectly more than 50% of the combined voting power of the outstanding voting securities of the corporation resulting from such
reorganization, merger or consolidation (the “Surviving Corporation”) and the individuals who were members of the Board immediately prior to the execution of the agreement providing for such reorganization, merger or consolidation
constitute at least 50% of the members of the board of directors of the Surviving Corporation, or a corporation beneficially directly or indirectly owning a majority of the voting securities of the Surviving Corporation, or (B) Bank is reorganized,
merged or consolidated with a corporation in which any shareholder owning at least 50% of the combined voting power of the outstanding voting securities of Bank immediately prior to such reorganization, merger or consolidation, owns at least 50% of
the combined voting power of the outstanding voting securities of the corporation resulting from such reorganization, merger or consolidation; 
  

 -3- 

 (iii) The sale of all or substantially all of the assets of Bank to another person or entity;

  
 (iv) The acquisition of beneficial ownership of stock
representing more than fifty percent (50%) of the voting power of Bank then outstanding by another person or entity. 
  
 In the event of a Change in Control, Employee shall be eligible to receive a single sum severance payment equal to his Base Salary for the number of
months remaining in the Employment Term (less payroll taxes and withholding required by any federal, state or local law, any additional withholding to which Employee has agreed, and any outstanding obligations owed by the Employee to Bank), provided
that any and all stock options previously granted to Employee under any stock option plan of Bank or any affiliate of Bank and held by Employee at the date of termination shall become fully vested and shall be exercisable for a period of two (2)
years after the date of termination. No portion of such severance pay shall be payable until eight days after delivery to Bank of a duly executed Release in the form of Exhibit “B” hereto. 
  
 Such severance pay shall constitute liquidated damages in lieu of any and all
claims by Employee against Bank and each of its parent companies, shareholders, subsidiaries, divisions and affiliates, and each of their respective directors, partners, officers, employees and agents, arising out of this Agreement or out of the
employment relationship or termination of the employment relationship between Employee and Bank, and shall be in full and complete satisfaction of any and all rights which Employee may enjoy hereunder, and is expressly conditioned upon receipt by
Bank of an executed, unconditional Release from Employee in the form of Exhibit “B”. 
  
 Notwithstanding anything to the contrary provided herein, in the event the amounts payable to Employee in the event of a Change in Control would, if they included such termination payments to be made pursuant to this
section 6(a), constitute Excess Parachute Payments for purposes of Sections 280G(b) and 4999 of the Internal Revenue Code of 1986, as amended, (“IRC”) or any successor statute) (after application of IRC section 280G(b)(4)), the amount
payable under this section 6(a) shall be reduced by the amount necessary to cause Employee to receive no Excess Parachute Payments. 
  
 In the event that Employee is terminated pursuant to this section 6(a), Employee shall be entitled to receive (i) those benefits, if any, that have vested
by operation of state or federal law or under any written term of a plan (“Vested Benefits”), and (ii) health care coverage continuation rights under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA
Rights”). 
  
 (b) Early Termination by Bank Without
Cause. This Agreement and Employee’s employment may be terminated by Bank without cause, for any reason whatsoever or for no reason at all, in the sole, absolute and unreviewable discretion of Bank, upon written notice by Bank to
Employee. 
  
 In the event that Employee is terminated by Bank
without cause, Employee shall be eligible to receive a single sum severance payment equal to his Base Salary for the number of months remaining in the Employment Term (less payroll taxes and withholding required by any 

  

 -4- 

 
federal, state or local law, any additional withholding to which Employee has agreed, and any outstanding obligations owed by the Employee to Bank), provided
that any and all stock options previously granted to Employee under any stock option plan of Bank or any affiliate of Bank and held by Employee at the date of termination shall become fully vested and shall be exercisable for a period of two (2)
years after the date of termination. No portion of such severance pay shall be payable until eight days after delivery to Bank of a duly executed Release in the form of Exhibit “B” hereto. 
  
 Such severance pay shall constitute liquidated damages in lieu of any and all
claims by Employee against Bank and each of its parent companies, shareholders, subsidiaries, divisions and affiliates, and each of their respective directors, partners, officers, employees and agents, arising out of this Agreement or out of the
employment relationship or termination of the employment relationship between Employee and Bank, and shall be in full and complete satisfaction of any and all rights which Employee may enjoy hereunder, and is expressly conditioned upon receipt by
Bank of an executed, unconditional Release from Employee in the form of Exhibit “B”. 
  
 In the event that Employee is terminated pursuant to this section 6(b), Employee shall also be entitled to receive Vested Benefits, as defined hereinabove, and COBRA rights, as defined hereinabove. 
  
 (c) Early Termination by Employee. Employee may terminate this
Agreement upon 90 days’ written notice to Bank. Employee shall continue to perform his duties under this Agreement until the end of such 90 day period, provided however, that Bank may, at its option, immediately terminate this Agreement, upon
notice to Employee, and in the event that Bank so elects to terminate this Agreement, Bank shall continue to pay Employee his normal compensation through the end of such 90 day period. Thereafter, Employee shall not be entitled to receive
compensation or other benefits under this Agreement, provided, however, that Employee shall be entitled to receive Vested Benefits, as defined hereinabove, and COBRA rights, as defined hereinabove. 
  
 (d) Early Termination Upon Disability. This Agreement and all
benefits hereunder shall terminate if Employee is not able, as a result of an illness or other physical or mental disability, to perform the essential functions of his position as required by this Agreement for a period of ninety (90) consecutive
days or in excess of one hundred eighty (180) days in any one (1) year period, notwithstanding reasonable accommodation by Bank to Employee’s known physical or mental disability, solely in accordance with, and to the extent required by, the
Americans with Disabilities Act, 29 U.S.C. Sections 12101-213 or any other state or local law governing the employment of disabled persons (the “ADA”) provided such accommodation would not impose an undue hardship on the operation of
Bank’s business or a direct threat to the Employee or others pursuant to the ADA. In the event of termination of this Agreement by Bank pursuant to this section 6(d): 
  
 (i) Employee shall be entitled to disability benefits provided by the disability insurance coverage identified in
section 5(c) of this Agreement; and 
  
 (ii) All other
benefits provided for under this Agreement shall cease as of the date of termination (except insofar as the group insurance benefits provided under section 5(c) may be continued or convertible by Employee as provided under COBRA or other laws
applicable at the time of termination). 
  

 -5- 

 (iii) Employee shall also be entitled to receive Vested Benefits, as defined hereinabove.

  
 For purposes of this Agreement, physical or mental disability
shall mean the inability of Employee to fully perform under this Agreement for a continuous period of ninety (90) days, as determined in the case of physical disability by a physician, or in the case of mental disability by a psychiatrist, both of
whom must be licensed to practice medicine in California and are to be selected with the approval of Bank and Employee. Upon demand by Bank, Employee shall act promptly to select such physician or psychiatrist jointly with Bank and shall consent to
undergo any reasonable examination or test. Recurrent disabilities will be treated as separate disabilities if they result from unrelated causes or if they result from the same or related cause or causes and are separated by a continuous period of
at least twelve (12) full months during which Employee was able to perform his duties hereunder equal to at least eighty percent (80%) of his capacity prior to disability. Otherwise, recurrent disabilities will be treated as a continuation of
previous disabilities for the purpose of determining the limitations established in this Section. 
  
 (e) Death During Employment. This Agreement and all benefits hereunder shall terminate immediately upon the death of Employee, except that
Employee’s heirs or estate shall also be entitled to receive Vested Benefits, as defined hereinabove, and Employee’s dependants may be entitled to COBRA rights, as defined hereinabove. 
  
 7. Survival of Obligations. The provisions of Sections 6, 10,
11, 12, 13, 14, 16, 18 and 28 of this Agreement shall survive Employee’s termination of employment and the termination of this Agreement. Other provisions of this Agreement shall survive any termination of Employee’s employment to the
extent necessary to the intended preservation of each Party’s respective rights and obligations. 
  
 8. Fidelity Bond. Employee agrees that he will furnish all information and take any other steps necessary to enable Bank to obtain or
maintain a fidelity bond conditional on the rendering of a true account by Employee of all moneys, goods, or other property which may come into the custody, charge or possession of Employee during the Employment Term. The surety company issuing the
bond and the amount of the bond must be acceptable to Bank and satisfy all banking laws and regulations. All premiums on the bond are to be paid by Bank. 
  
 9. Compliance with Bank Policies. Employee agrees to observe and comply with the rules and regulations of Bank respecting the performance of
his duties and to carry out and perform orders, directions and policies communicated to him from time to time. Employee agrees to comply with all rules and policies contained in any applicable Employee Handbook which has been or will be issued by
Bank. 
  
 10. Bank Property. All records, financial
statements and similar documents obtained, reviewed or compiled by Employee in the course of the performance by him of services for Bank, whether or not confidential information or trade secrets, shall be the exclusive property of Bank. Employee
agrees to hold as Bank’s property, all memoranda, books, papers, letters, 

  

 -6- 

 
formulas and other data, and all copies thereof and therefrom, in any way relating to Bank’s business and affairs, whether made by him or otherwise
coming into his possession, and on termination of his employment, or on demand of Bank, at any time to deliver the same to Bank. Employee shall have no rights in such documents upon any termination of his employment. 
  
 11. Proprietary Information. 
  
 (a) Employee recognizes and acknowledges that Bank and its parent
companies, shareholders, subsidiaries, divisions and affiliates possess trade secrets and other confidential and/or proprietary information concerning their respective business affairs and methods of operation which constitute valuable,
confidential, and unique assets of the business of Bank and its parent companies, shareholders, subsidiaries, divisions and affiliates (“Proprietary Information”), which Bank and its parent companies, shareholders, subsidiaries, divisions
and affiliates have developed through a substantial expenditure of time and money and which are and will continue to be utilized in the business of Bank and its parent companies, shareholders, subsidiaries, divisions and affiliates and which are not
generally known in the trade. As used herein, Propriety Information includes the following: 
  
 (i) Customer lists, including information regarding the identity of clients and client contacts, client accounts, the business needs and preferences of clients, and information regarding business and
contractual arrangements with clients. As used herein, “Customer List” is not limited to physical writing or compilations, and includes information which is contained in or reproduced from the memory of any employee. 
  
 (ii) Business plans, objectives and strategies, and marketing plans
and information; 
  
 (iii) Financial information, sales
information and pricing information, including information regarding vendors, suppliers and others doing business with Bank, or any parent company, shareholder, subsidiary, division or affiliate thereof; 
  
 (iv) Personal identities and information regarding skills and
compensation of the personnel of Bank, or any parent company, shareholder, subsidiary, division or affiliate thereof; 
  
 (v) Bank manuals and handbooks, computer programs and data; 
  
 (vi) Any other confidential information which gives Bank, or any parent company, shareholder, subsidiary, division
or affiliate thereof, an opportunity to claim a competitive advantage or has economic value. 
  
 (b) During his employment with Bank, Employee will not use, copy, transmit or otherwise disclose Bank’s Proprietary Information for any purpose other than for the benefit of Bank, and Employee will make
all reasonable efforts to protect the confidential nature of such information. Employee will not disclose Bank’s Proprietary Information to anyone not entitled to such disclosure without the advance written permission of the Chairman of the
Board of the Bank. 
  

 -7- 

 (c) Upon termination of his employment, Employee will immediately deliver to Bank all of
Bank’s Proprietary Information. Employee will not retain any copies of Bank’s Proprietary Information after termination of his employment without the express written consent of the Chairman of the Board. 
  
 (d) After termination of his employment, Employee will not use
Bank’s Proprietary Information for any purpose, or disclose or communicate the same to any person, firm or corporation for any purpose. 
  
 (e) In the event Employee should receive, during the Employment Term, or thereafter, any subpoena, search warrant or other court process requiring
Employee to produce any documents containing Proprietary Information as defined herein, Employee shall immediately provide a copy of such request to Bank. 
  
 (f) Notwithstanding anything in this Agreement to the contrary, information (i) already in the public domain; (ii) independently developed by the
Employee; (iii) obtained from a source not subject to a confidentiality obligation to Bank or a third party; or (iv) that becomes public knowledge (other than by acts of the Employee in violation of this Agreement), shall not be deemed to be
Proprietary Information as described in this section 11. 
  
 12. Non-Solicitation. During his employment with Bank, and for a period of one year immediately following his employment with Bank, Employee shall not, directly or indirectly, solicit or attempt to solicit any employee of
Bank, or of any parent company, shareholder, subsidiary, division or affiliate thereof, to terminate his or her employment with said company, or to work for any other business, person or company. 
  
 13. Equitable Relief. Employee acknowledges that any breach or
threatened breach by him of the provisions of Sections 10, 11 and 12 of this Agreement will result in immediate and irreparable harm to Bank, for which there will be no adequate remedy at law, and that Bank will be entitled (subject to section 28)
to equitable relief to restrain Employee from violating the terms of these sections, or to compel Employee to cease and desist all unauthorized use and disclosure of the Confidential Information, without posting bond or other security. Nothing in
this section shall be construed as prohibiting Bank from pursuing any other remedies available to it for such breach or threatened breach, including recovery of damages from Employee. 
  
 14. Property of Others. Employee represents that his performance under this Agreement does not and will not
breach any agreement to keep in confidence confidential information or trade secrets, if any, acquired by Employee in confidence prior to this Agreement. There are no agreements, written or oral, conveying rights in any research conducted by
Employee. Employee represents, as part of the consideration for entering into this Agreement, that he has not brought and will not bring to Bank or use in the performance of his responsibilities at Bank any equipment, supplies, facility or trade
secret information of any current or former employer or organization with which he provided services which are not generally available to the public, unless he has obtained written authorization for their possession and use. 
  

 -8- 

 15. Non-Competition by Employee. Employee shall not, during his employment with Bank,
directly or indirectly, either as an employee, employer, consultant, agent, principal, partner, shareholder, corporate officer, director, or in any other individual or representative capacity, work for, or engage or participate in the business of,
any competing company, bank, bank holding company or financial holding company or financial institution or financial services business without the prior written consent of the Chairman of the Board. 
  
 16. Indemnification. Bank shall indemnify Employee, to the
maximum extent permitted under the Bylaws of Bank and governing laws and regulations, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by Employee in connection with
any threatened or pending action, suit or proceeding to which Employee is made a party by reason of his position as an officer or agent of Bank or by reason of his service at the request of Bank, if Employee acted in good faith and in a manner
reasonably believed to be in the best interests of Bank. If available at rates determined by Bank, in its sole discretion, to be reasonable, Bank shall endeavor to apply for and obtain Directors’ and Officers’ Liability Insurance to
indemnify and insure Bank and Employee from such liability or loss. Employee shall indemnify Bank from and against all costs, expenses (including attorney’s fees), liability and damages arising out of any act of misconduct, other than actions
taken in good faith and in a manner reasonably believed to be in the best interests of Bank, by Employee during the term of this Agreement. 
  
 Notwithstanding the foregoing, in any administrative proceeding or civil action initiated by any federal banking agency, Bank may only reimburse,
indemnify or hold harmless Employee if Bank is in compliance with any applicable statute, rule, regulation or policy of the Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve
System, or the California Department of Financial Institutions regarding permissible indemnification payments. 
  
 17. Breach. Breach by either Party of any of his or its respective obligations under Sections 2, 3, 5, 9, 10, 11, 12, 14 and 16 of this
Agreement shall be deemed a material breach of that Party’s obligations hereunder, provided, however, that no breach of a monetary obligation shall be deemed a material breach until the Party allegedly in breach has failed to cure said breach
within seven (7) business days after the aggrieved Party delivers written notice of such breach to the other Party. 
  
 18. Survival of Agreement in Event of Merger. This Agreement shall not be terminated by any merger in which Bank is not the surviving or
resulting corporation, or on any transfer of all or substantially all of Bank’s assets. In the event of any such merger or transfer of assets, the provisions of this Agreement shall be binding on and inure to the benefit of the surviving
business entity or the business entity to which such assets shall be transferred. This section shall not serve to diminish Employee’s rights pursuant to section 6(a) above. 
  
 19. Tax Consequences. Employee is urged to review with his own tax advisors the federal and state tax
consequences of the transactions contemplated by this Agreement. Employee is relying solely on such advisors (if any) and not on any statements or representations of Bank or any of its agents. 
  

 -9- 

 20. Withholding. All payments provided for hereunder shall be reduced by payroll taxes and
withholding required by any federal, state or local law, and any additional withholding to which Employee has agreed in writing. 
  
 21. Notices. Any notices to be given hereunder by either Party to the other may be effected in writing either by personal delivery or by
mail, registered or certified, postage prepaid with return receipt requested. Notices to Bank shall be given to Bank at its then current principal office, c/o Chairman of the Board of Directors. Notices to Employee shall be sent to Employee’s
last known personal residence. Notices delivered personally shall be deemed communicated as of actual receipt; mailed notices shall be deemed communicated as of five (5) calendar days after mailing. 
  
 22. Entire Agreement. This Agreement supersedes all other
agreements, either oral or in writing, between the Parties (or any parent company, shareholder, subsidiary, division or affiliate thereof) with respect to the employment of Employee (excluding only stock option agreements) and contains all of the
covenants and agreements between the Parties with respect to such employment. Each Party to this Agreement acknowledges that no representations, inducements, promises or agreements, oral or otherwise, have been made by any Party, or anyone acting on
behalf of any Party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid and binding. 
  
 23. Amendment. This Agreement may be changed or modified, or any provisions hereof waived, only by a writing
signed by the Party against whom enforcement of any waiver, change or modification is sought. 
  
 24. Severability. In the event that any term or condition contained in this Agreement shall, for any reason, be held by a court of competent jurisdiction to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or non-enforceability shall not affect any other term or condition of this Agreement, but this Agreement shall be construed as if such invalid or illegal or unenforceable term or condition had never been
contained herein. 
  
 25. Choice of Law and Forum.
This Agreement shall be governed by and construed in accordance with the laws of the State of California, except to the extent preempted by the laws of the United States. Any action or proceeding brought upon, or arising out of, this Agreement or
its termination shall be brought in a forum located within the State of California, and Bank and Employee hereby agree to be subject to service of process in California. 
  
 26. Waiver. The Parties hereto shall not be deemed to have waived any of their respective rights under this
Agreement unless the waiver is in writing and signed by such waiving Party. No delay in exercising any rights shall be a waiver nor shall a waiver on one occasion operate as a waiver of such right on a future occasion. 
  
 27. Interpretation. This Agreement shall be interpreted in
accordance with the plain meaning of its terms and not strictly for or against any of the Parties hereto. Captions and section headings used herein are for convenience and ready reference only and shall not be used in the construction or
interpretation thereof. 
  

 -10- 

 28. Arbitration. In the event of any dispute, claim or controversy between the Employee and
Bank (or any of Bank’s parent companies, shareholders, subsidiaries, divisions and/or affiliates and/or any of its or their respective officers, partners, directors, members, managers, employees, agents or employees) arising out of this
Agreement or the Employee’s employment with Bank, Employee and Bank agree to submit such dispute, claim or controversy to final and binding arbitration before the American Arbitration Association (“AAA”) in accordance with the AAA
National Rules for the Resolution of Employment Disputes. The claims governed by this arbitration provision include, but are not limited to, claims for breach of contract, civil torts and employment discrimination such as violation of the Fair
Employment and Housing Act, Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act and other employment laws. 
  
 (a) The arbitration shall be conducted by a single arbitrator selected either by mutual agreement of the Employee and
Bank or, if they cannot agree, from an odd-numbered list of experienced employment law arbitrators provided by the American Arbitration Association. Each Party shall strike one arbitrator from the list alternately until only one arbitrator remains.

  
 (b) Each Party shall have the right to conduct
reasonable discovery, as determined by the arbitrator. 
  
 (c)
The arbitrator shall have all powers conferred by law and a judgment may be entered on the award by a court of law having jurisdiction. The arbitrator shall render a written arbitration award that contains the essential findings and conclusions
on which the award is based. The award and judgment shall be binding and final on both Parties. 
  
 (d) Bank will pay the arbitrator’s fees and costs as well as any AAA administrative fees. The Parties shall each pay the fees of their own
attorneys and the expenses of their own witnesses. 
  
 (e)
This agreement to arbitrate shall continue during Employment Term and thereafter regarding any employment-related disputes. 
  
 (f) The Employee and Bank understand that by signing this Agreement, they give up their right to a civil trial and their right to a trial by jury.

  
 [BALANCE OF PAGE INTENTIONALLY LEFT BLANK] 
  

 -11- 

 IN WITNESS WHEREOF, this Agreement is entered into as of the date and year above written. 
  

					
	“BANK”	 	“EMPLOYEE”
	PLACER SIERRA BANK	 	ROBERT C. CAMPBELL, JR.
			
	 	  	 /s/ Ronald W. Bachli

	 	 /s/ Robert C. Campbell, Jr.

	 By:
	  	 Ronald W. Bachli
	 	 Robert C. Campbell, Jr.

	 Title:
	  	 Chairman of the Board and
 Chief Executive Officer
	 	 

  
  

 -12- 

 EXHIBIT A 
  

RELEASE AGREEMENT 
  
 This Release Agreement (“Release”) was given to me, ROBERT CAMPBELL (“Employee”), this      day of
            , 200  , by PLACER SIERRA BANK, a California banking corporation (“Bank”). At such time as this Release becomes effective and enforceable
(i.e., the revocation period set forth below has expired), and assuming such Employee is otherwise eligible for payments under the terms of that certain Employment Agreement and Agreement for Severance Pay between Employee and Bank entered into as
of September 1, 2003 (the “Agreement”), Bank agrees to pay Employee, pursuant to the terms of the Agreement, a single sum severance payment in the amount of $275,000, plus Employee’s incentive bonus for the 2003 calendar year (which
incentive bonus shall be pro-rated if the Agreement is terminated by Employee prior to the expiration of the Employment Term pursuant to Section 6(a) of the Agreement) (less payroll taxes and withholding required by any federal, state or local law,
any additional withholding to which Employee has agreed, and any outstanding obligations owed by the Employee to Bank), provided that the Bank shall be obligated to pay Employee’s incentive bonus under the Bank’s 2003 Executive Incentive
Compensation Plan at the same time as it makes payment of any other incentive bonuses paid to other officers of the Bank under such plan and shall not be obligated to make such payment to Employee at any earlier time. 
  
 Employee is also entitled to receive (i) those benefits, if any, that have
vested by operation of state or federal law or under any written term of a plan (“Vested Benefits”), and (ii) health care coverage continuation rights under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

  
 In consideration of the receipt of the promise to pay such
amount, Employee hereby agrees, for himself, his heirs, executors, administrators, successors and assigns (hereinafter referred to as the “Releasors”), to fully release and discharge Bank and each of its parent companies, shareholders,
subsidiaries, divisions and affiliates, and each of their respective officers, partners, directors, members, managers, employees and agents, and each of their respective predecessors, successors, heirs and assigns (hereinafter referred to as the
“Releasees”) from any and all claims, suits, causes of action, debts, obligations, costs, losses, liabilities, damages and demands under any federal, state or local law or laws, or contract, tort or common law, whether or not known,
suspected or claimed, which the Releasors have, or hereafter may have, against the Releasees arising out of or in any way related to Employee’s employment (or other contractual relationship) with Bank and/or the termination of that
relationship. The claims released herein include claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Employee Retirement Income Security Act, the Americans with Disabilities Act, the U.S. Pregnancy
Discrimination Act, the U.S. Family and Medical Leave Act, the U.S. Fair Labor Standards Act, the U.S. Equal Pay Act, The Workers Adjustment and Notification Act, the California Fair Employment and Housing Act, and the California Labor Code.
Provided, however, that this Agreement does not waive rights or claims under the Age Discrimination in Employment Act that may arise after the date this Release is executed. 
  

 -13- 

 It is understood and agreed that this Release extends to all such claims and/or potential claims, and
that Employee, on behalf of the Releasors, hereby expressly waives all rights with respect to all such claims under California Civil Code section 1542, which provides as follows: 
  
 A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of
executing the release, which if known by him must have materially affected his settlement with the debtor. 
  
 The monies to be paid to the Employee in this Release are in addition to any sums to which he would be entitled without signing this Release. 

 
 Employee acknowledges that he has read and does understand the provisions
of this Release. Employee acknowledges that he affixes his signature hereto voluntarily and without coercion, and that no promise or inducement has been made other than those set out in this Release and that he executes this Release without reliance
on any representation by any Releasee. 
  
 Employee understands
that this Release involves the relinquishment of his legal rights, and that he has the right to, and has been given the opportunity to, consult with an attorney of his choice. Employee acknowledges that he has been (and hereby is) advised by Bank
that he should consult with an attorney prior to executing this Release. 
  
 This document does not constitute, and shall not be admissible as evidence of, an admission by any Releasee as to any fact or matter. 
  
 In case any part of this Release is later deemed to be invalid, illegal or otherwise unenforceable, Employee agrees that the
legality and enforceability of the remaining provisions of this Release will not be affected in any way. 
  
 Employee acknowledges that he has been given a period of twenty-one (21) days from receipt of this Release within which to consider this Release and
decide whether or not to execute this Release. If Employee executes this Release at any time prior to the end of the 21 day period, such early execution was a knowing and voluntary waiver of Employee’s right to consider this Release for at
least 21 days, and was due to his belief that he had ample time in which to consider this Release. 
  
 Employee may, within seven (7) days of his execution and delivery of this Release, revoke this Release by a written document received by Bank on or before
the end of the seven (7) day period. The Release will not be effective until said revocation period has expired. No payments will be made hereunder if the Employee revokes this Release. 
  

			
	 Dated:
                    
	 	 
	 	 	
 ROBERT CAMPBELL

  

 -14-

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