Document:

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                                                                    EXHIBIT 4.1

                         OUTDOOR CHANNEL HOLDINGS, INC.

                  2004 LONG-TERM INCENTIVE PLAN, AS AMENDED(1)

1.       ESTABLISHMENT, PURPOSE, AND TYPES OF AWARDS

         Outdoor Channel Holdings, Inc. (the "Company") hereby establishes an
incentive compensation plan to be known as the "Outdoor Channel Holdings, Inc.
2004 Long-Term Incentive Plan" (hereinafter referred to as the "Plan"), for the
purpose of attracting, retaining and motivating select employees, officers,
directors, advisors, and consultants for the Company and its Affiliates and to
provide incentives and awards for superior performance.

         The Plan permits the granting of the following types of awards
("Awards"), according to the Sections of the Plan listed here:

              Section 6            Options
              Section 7            Share Appreciation Rights
              Section 8            Restricted Shares and Restricted Share Units
              Section 9            Deferred Share Units
              Section 10           Performance Awards

         The Plan is not intended to affect and shall not affect any stock
options, equity-based compensation, or other benefits that the Company or its
Affiliates may have provided, or may separately provide in the future pursuant
to any agreement, plan, or program that is independent of this Plan.

2.       DEFINED TERMS

         Terms in the Plan that begin with an initial capital letter have the
defined meaning set forth in APPENDIX A, unless defined elsewhere in this Plan
or the context of their use clearly indicates a different meaning.

3.       SHARES SUBJECT TO THE PLAN

         Subject to the provisions of Section 13 of the Plan, the maximum number
of Shares that the Company may issue is 3,250,000 Shares for all Awards. For all
Awards, these Shares may be authorized but unissued Shares, or Shares that the
Company has reacquired or otherwise holds in treasury.

         Shares that are subject to an Award that for any reason expires, is
forfeited, is cancelled, or becomes unexercisable, and Shares that are for any
other reason not paid or delivered under the Plan shall again, except to the
extent prohibited by Applicable Law, be available for subsequent Awards under
the Plan. In addition, the Committee may make future Awards with respect to
Shares that the Company retains from otherwise delivering pursuant to an Award
either (i) as payment of the exercise price of an Award, or (ii) in order to
satisfy the withholding or employment taxes due upon the grant, exercise,
vesting, or distribution of an Award. Notwithstanding the foregoing, but subject
to adjustments pursuant to Section 13 below, the number of Shares that are
available for ISO Awards shall be determined, to the extent required under
applicable tax laws, by reducing the number of Shares designated in the
preceding paragraph by the number of Shares granted pursuant to Awards (whether
or not Shares are issued pursuant to such Awards); provided that any Shares that
are either purchased under the Plan and forfeited back to the Plan, or
surrendered in payment of the Exercise Price for an Award shall be available for
issuance pursuant to ISO Awards.

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(1) This plan, as amended, reflects the reincorporation of the Company from
Alaska into Delaware on September 14, 2004 and the 5 for 2 forward split
effected in connection therewith.

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4.       ADMINISTRATION

         (a) GENERAL. The Committee shall administer the Plan in accordance with
its terms, provided that the Board may act in lieu of the Committee on any
matter. The Committee shall hold meetings at such times and places as it may
determine and make such rules and regulations for the conduct of its business as
it deems advisable. In the absence of a duly appointed Committee or if the Board
otherwise chooses to act in lieu of a Committee, the Board shall function as the
Committee for all purposes of the Plan.

         (b) COMMITTEE COMPOSITION. The Board shall appoint the members of the
Committee. If and to the extent permitted by Applicable Law, the Committee may
authorize one or more Reporting Persons (or other officers) to make Awards to
Eligible Persons who are not Reporting Persons (or other officers whom the
Committee has specifically authorized to make Awards). The Board may at any time
appoint additional members to the Committee, remove and replace members of the
Committee with or without Cause, and fill vacancies on the Committee however
caused.

         (c) POWERS OF THE COMMITTEE. Subject to the provisions of the Plan, the
Committee shall have the authority, in its sole discretion:

                  (i) to determine Eligible Persons to whom Awards shall be
         granted from time to time and the number of Shares, units, or SARs to
         be covered by each Award;

                  (ii) to determine, from time to time, the Fair Market Value of
         Shares;

                  (iii) to determine, and to set forth in Award Agreements, the
         terms and conditions of all Awards, including any applicable exercise
         or purchase price, the installments and conditions under which an Award
         shall become vested (which may be based on performance), terminated,
         expired, cancelled, or replaced, and the circumstances for vesting
         acceleration or waiver of forfeiture restrictions, and other
         restrictions and limitations;

                  (iv) to approve the forms of Award Agreements and all other
         documents, notices and certificates in connection therewith which need
         not be identical either as to type of Award or among Participants;

                  (v) to construe and interpret the terms of the Plan and any
         Award Agreement, to determine the meaning of their terms, and to
         prescribe, amend, and rescind rules and procedures relating to the Plan
         and its administration; and

                  (vi) in order to fulfill the purposes of the Plan and without
         amending the Plan, modify, cancel, or waive the Company's rights with
         respect to any Awards, to adjust or to modify Award Agreements for
         changes in Applicable Law, and to recognize differences in foreign law,
         tax policies, or customs; and

                  (vii) to make all other interpretations and to take all other
         actions that the Committee may consider necessary or advisable to
         administer the Plan or to effectuate its purposes.

         Subject to Applicable Law and the restrictions set forth in the Plan,
the Committee may delegate administrative functions to individuals who are
Reporting Persons, officers, or Employees of the Company or its Affiliates.

         (d) DEFERENCE TO COMMITTEE DETERMINATIONS. The Committee shall have the
discretion to interpret or construe ambiguous, unclear, or implied (but omitted)
terms in any fashion it deems to be appropriate in its sole discretion, and to
make any findings of fact needed in the administration of the Plan or Award
Agreements. The Committee's prior exercise of its discretionary authority shall
not obligate it to exercise its authority in a like fashion thereafter. The
Committee's interpretation and construction of any provision of the Plan, or of

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any Award or Award Agreement, shall be final, binding, and conclusive. The
validity of any such interpretation, construction, decision or finding of fact
shall not be given de novo review if challenged in court, by arbitration, or in
any other forum, and shall be upheld unless clearly arbitrary or capricious.

         (e) NO LIABILITY; INDEMNIFICATION. Neither the Board nor any Committee
member, nor any Person acting at the direction of the Board or the Committee,
shall be liable for any act, omission, interpretation, construction or
determination made in good faith with respect to the Plan, any Award or any
Award Agreement. The Company and its Affiliates shall pay or reimburse any
member of the Committee, as well as any Director, Employee, or Consultant who
takes action in connection with the Plan, for all expenses incurred with respect
to the Plan, and to the full extent allowable under Applicable Law shall
indemnify each and every one of them for any claims, liabilities, and costs
(including reasonable attorney's fees) arising out of their good faith
performance of duties under the Plan. The Company and its Affiliates may obtain
liability insurance for this purpose.

5.       ELIGIBILITY

         (a) GENERAL RULE. The Committee may grant ISOs only to Employees
(including officers who are Employees) of the Company or an Affiliate that is a
"parent corporation" or "subsidiary corporation" within the meaning of Section
424 of the Code, and may grant all other Awards to any Eligible Person. A
Participant who has been granted an Award may be granted an additional Award or
Awards if the Committee shall so determine, if such person is otherwise an
Eligible Person and if otherwise in accordance with the terms of the Plan.

         (b) GRANT OF AWARDS. Subject to the express provisions of the Plan, the
Committee shall determine from the class of Eligible Persons those individuals
to whom Awards under the Plan may be granted, the number of Shares subject to
each Award, the price (if any) to be paid for the Shares or the Award and, in
the case of Performance Awards, in addition to the matters addressed in Section
10 below, the specific objectives, goals and performance criteria that further
define the Performance Award. Each Award shall be evidenced by an Award
Agreement signed by the Company and, if required by the Committee, by the
Participant. The Award Agreement shall set forth the material terms and
conditions of the Award established by the Committee.

         (c) LIMITS ON AWARDS. No Participant may receive Options and SARs that
relate to more than 12,250,000 Shares. The Committee will adjust these
limitations pursuant to Section 13 below.

         (d) REPLACEMENT AWARDS. The Committee may, in its sole discretion and
upon such terms as it deems appropriate, require as a condition of the grant of
an Award to a Participant that the Participant surrender for cancellation some
or all of the Awards that have previously been granted to the Participant under
this Plan or otherwise. An Award that is conditioned upon such surrender may or
may not be the same type of Award, may cover the same (or a lesser or greater)
number of Shares as such surrendered Award, may have other terms that are
determined without regard to the terms or conditions of such surrendered Award,
and may contain any other terms that the Committee deems appropriate. In the
case of Options, these other terms may involve an Exercise Price that is lower
than the Exercise Price of the surrendered Option.

6.       OPTION AWARDS

         (a) TYPES; DOCUMENTATION. The Committee may in its discretion grant
ISOs to any Employee and Non-ISOs to any Eligible Person, and shall evidence any
such grants in an Award Agreement that is delivered to the Participant. Each
Option shall be designated in the Award Agreement as an ISO or a Non-ISO. At the
sole discretion of the Committee, any Option may be exercisable, in whole or in
part, immediately upon the grant thereof, or only after the occurrence of a
specified event, or only in installments, which installments may vary. Options
granted under the Plan may contain such terms and provisions not inconsistent
with the Plan that the Committee shall deem advisable in its sole and absolute
discretion.

         (b) ISO $100,000 LIMITATION. To the extent that the aggregate Fair
Market Value of Shares with respect to which Options designated as ISOs first
become exercisable by a Participant in any calendar year (under this Plan and
any other plan of the Company or any Affiliate) exceeds $100,000, such excess

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Options shall be treated as Non-ISOs. For purposes of determining whether the
$100,000 limit is exceeded, the Fair Market Value of the Shares subject to an
ISO shall be determined as of the Grant Date. In reducing the number of Options
treated as ISOs to meet the $100,000 limit, the most recently granted Options
shall be reduced first. In the event that Section 422 of the Code is amended to
alter the limitation set forth therein, the limitation of this Section 6(b)
shall be automatically adjusted accordingly.

         (c) TERM OF OPTIONS. Each Award Agreement shall specify a term at the
end of which the Option automatically expires, subject to earlier termination
provisions contained in Section 6(h) hereof; provided, that, the term of any
Option may not exceed ten years from the Grant Date. In the case of an ISO
granted to an Employee who is a Ten Percent Holder on the Grant Date, the term
of the ISO shall not exceed five years from the Grant Date.

         (d) EXERCISE PRICE. The exercise price of an Option shall be determined
by the Committee in its discretion and shall be set forth in the Award
Agreement, subject to the following special rules:

                  (i) ISOS. If an ISO is granted to an Employee who on the Grant
         Date is a Ten Percent Holder, the per Share exercise price shall not be
         less than 110% of the Fair Market Value per Share on such Grant Date.
         If an ISO is granted to any other Employee, the per Share exercise
         price shall not be less than 100% of the Fair Market Value per Share on
         the Grant Date.

                  (ii) NON-ISOS. The per Share exercise price for the Shares to
         be issued pursuant to the exercise of a Non-ISO shall not be less than
         85% of the Fair Market Value per Share on the Grant Date.

                  (iii) NAMED EXECUTIVES. The per Share exercise price shall not
         be less than 100% of the Fair Market Value per Share on the Grant Date
         of an Option if (A) on such Grant Date, the Participant is subject to
         the limitations set forth in Section 162(m) of the Code, and (B) the
         grant is intended to qualify as performance-based compensation under
         Section 162(m) of the Code.

                  (iv) REPRICING. The Committee may at any time unilaterally
         reduce the exercise price for any Option, but shall promptly provide
         written notice to any Participant affected by the reduction.

         (e) EXERCISE OF OPTION. The times, circumstances and conditions under
which an Option shall be exercisable shall be determined by the Committee in its
sole discretion and set forth in the Award Agreement. The Committee shall have
the discretion to determine whether and to what extent the vesting of Options
shall be tolled during any unpaid leave of absence; provided, however, that in
the absence of such determination, vesting of Options shall be tolled during any
such leave approved by the Company.

         (f) MINIMUM EXERCISE REQUIREMENTS. An Option may not be exercised for a
fraction of a Share. The Committee may require in an Award Agreement that an
Option be exercised as to a minimum number of Shares, provided that such
requirement shall not prevent a Participant from purchasing the full number of
Shares as to which the Option is then exercisable.

         (g) METHODS OF EXERCISE. Prior to its expiration pursuant to the terms
of the applicable Award Agreement, each Option may be exercised, in whole or in
part (provided that the Company shall not be required to issue fractional
shares), by delivery of written notice of exercise to the secretary of the
Company accompanied by the full exercise price of the Shares being purchased. In
the case of an ISO, the Committee shall determine the acceptable methods of
payment on the Grant Date and it shall be included in the applicable Award
Agreement. The methods of payment that the Committee may in its discretion
accept or commit to accept in an Award Agreement include:

                  (i) cash or check payable to the Company (in U.S. dollars);

                  (ii) other Shares that (A) are owned by the Participant who is
         purchasing Shares pursuant to an Option, (B) have a Fair Market Value
         on the date of surrender equal to the aggregate exercise price of the
         Shares as to which the Option is being exercised, (C) were not acquired

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         by such Participant pursuant to the exercise of an Option, unless such
         Shares have been owned by such Participant for at least six months or
         such other longer period as the Committee may determine, (D) are all,
         at the time of such surrender, free and clear of any and all claims,
         pledges, liens and encumbrances, or any restrictions which would in any
         manner restrict the transfer of such shares to or by the Company (other
         than such restrictions as may have existed prior to an issuance of such
         Shares by the Company to such Participant), and (E) are duly endorsed
         for transfer to the Company;

                  (iii) a cashless exercise program that the Committee may
         approve, from time to time in its discretion, pursuant to which a
         Participant may concurrently provide irrevocable instructions (A) to
         such Participant's broker or dealer to effect the immediate sale of the
         purchased Shares and remit to the Company, out of the sale proceeds
         available on the settlement date, sufficient funds to cover the
         exercise price of the Option plus all applicable taxes required to be
         withheld by the Company by reason of such exercise and (B) to the
         Company to deliver the certificates for the purchased Shares directly
         to such broker or dealer in order to complete the sale; or

                  (iv) any combination of the foregoing methods of payment.

         The Company shall not be required to deliver Shares pursuant to the
exercise of an Option until payment of the full exercise price therefore is
received by the Company.

         (h) TERMINATION OF CONTINUOUS SERVICE. The Committee may establish and
set forth in the applicable Award Agreement the terms and conditions on which an
Option shall remain exercisable, if at all, following termination of a
Participant's Continuous Service. The Committee may waive or modify these
provisions at any time. To the extent that a Participant is not entitled to
exercise an Option at the date of his or her termination of Continuous Service,
or if the Participant (or other person entitled to exercise the Option) does not
exercise the Option to the extent so entitled within the time specified in the
Award Agreement or below (as applicable), the Option shall terminate and the
Shares underlying the unexercised portion of the Option shall revert to the Plan
and become available for future Awards. In no event may any Option be exercised
after the expiration of the Option term as set forth in the Award Agreement.

         The following provisions shall apply to the extent an Award Agreement
does not specify the terms and conditions upon which an Option shall terminate
when there is a termination of a Participant's Continuous Service:

                  (i) TERMINATION OTHER THAN UPON DISABILITY OR DEATH OR FOR
         CAUSE. In the event of termination of a Participant's Continuous
         Service (other than as a result of Participant's death, disability,
         retirement or termination for Cause), the Participant shall have the
         right to exercise an Option at any time within 30 days following such
         termination to the extent the Participant was entitled to exercise such
         Option at the date of such termination.

                  (ii) DISABILITY. In the event of termination of a
         Participant's Continuous Service as a result of his or her "disability"
         within the meaning of Section 22(e)(3) of the Code, the Participant
         shall have the right to exercise an Option at any time within one year
         following such termination to the extent the Participant was entitled
         to exercise such Option at the date of such termination.

                  (iii) RETIREMENT. In the event of termination of a
         Participant's Continuous Service as a result of Participant's
         retirement, the Participant shall have the right to exercise the Option
         at any time within six months following such termination to the extent
         the Participant was entitled to exercise such Option at the date of
         such termination.

                  (iv) DEATH. In the event of the death of a Participant during
         the period of Continuous Service since the Grant Date of an Option, or
         within thirty days following termination of the Participant's
         Continuous Service, the Option may be exercised, at any time within one
         year following the date of the Participant's death, by the
         Participant's estate or by a person who acquired the right to exercise

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         the Option by bequest or inheritance, but only to the extent the right
         to exercise the Option had vested at the date of death or, if earlier,
         the date the Participant's Continuous Service terminated.

                  (v) CAUSE. If the Committee determines that a Participant's
         Continuous Service terminated due to Cause, the Participant shall
         immediately forfeit the right to exercise any Option, and it shall be
         considered immediately null and void.

         (i) REVERSE VESTING. The Committee in its sole and absolute discretion
may allow a Participant to exercise unvested Options, in which case the Shares
then issued shall be Restricted Shares having analogous vesting restrictions to
the unvested Options.

         (j) BUYOUT PROVISIONS. The Committee may at any time offer to buy out
an Option, in exchange for a payment in cash or Shares, based on such terms and
conditions as the Committee shall establish and communicate to the Participant
at the time that such offer is made. In addition, if the Fair Market Value for
Shares subject to an Option is more than 33% below their exercise price for more
than 30 consecutive business days, the Committee may unilaterally terminate and
cancel the Option either (i) by paying the Participant, in cash or Shares, an
amount not less than the Black-Scholes value of the vested portion of the
Option, or (ii) by irrevocably committing to grant a new Option, on a designated
date more than six months after such termination and cancellation of such Option
(but only if the Participant's Continuous Service has not terminated prior to
such designated date), on substantially the same terms as the cancelled Option,
provided that the per Share exercise price for the new Option shall equal the
per Share Fair Market Value of a Share on the date the new grant occurs.

7.       SHARE APPRECIATION RIGHTS (SARS)

         (a) GRANTS. The Committee may in its discretion grant Share
Appreciation Rights to any Eligible Person, in any of the following forms:

                  (i) SARS RELATED TO OPTIONS. The Committee may grant SARs
         either concurrently with the grant of an Option or with respect to an
         outstanding Option, in which case the SAR shall extend to all or a
         portion of the Shares covered by the related Option. An SAR shall
         entitle the Participant who holds the related Option, upon exercise of
         the SAR and surrender of the related Option, or portion thereof, to the
         extent the SAR and related Option each were previously unexercised, to
         receive payment of an amount determined pursuant to Section 7(e) below.
         Any SAR granted in connection with an ISO will contain such terms as
         may be required to comply with the provisions of Section 422 of the
         Code and the regulations promulgated thereunder.

                  (ii) SARS INDEPENDENT OF OPTIONS. The Committee may grant SARs
         which are independent of any Option subject to such conditions as the
         Committee may in its discretion determine, which conditions will be set
         forth in the applicable Award Agreement.

                  (iii) LIMITED SARS. The Committee may grant SARs exercisable
         only upon or in respect of a Change in Control or any other specified
         event, and such limited SARs may relate to or operate in tandem or
         combination with or substitution for Options or other SARs, or on a
         stand-alone basis, and may be payable in cash or Shares based on the
         spread between the exercise price of the SAR, and (A) a price based
         upon or equal to the Fair Market Value of the Shares during a specified
         period, at a specified time within a specified period before, after or
         including the date of such event, or (B) a price related to
         consideration payable to Company's shareholders generally in connection
         with the event.

         (b) EXERCISE PRICE. The per Share exercise price of an SAR shall be
determined in the sole discretion of the Committee, shall be set forth in the
applicable Award Agreement, and shall be no less than 85% of the Fair Market
Value of one Share. The exercise price of an SAR related to an Option shall be
the same as the exercise price of the related Option. The exercise price of an
SAR shall be subject to the special rules on pricing contained in paragraphs
(iii) and (iv) of Section 6(d) hereof.

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         (c) EXERCISE OF SARS. Unless the Award Agreement otherwise provides, an
SAR related to an Option will be exercisable at such time or times, and to the
extent, that the related Option will be exercisable. An SAR may not have a term
exceeding ten years from its Grant Date. An SAR granted independently of any
other Award will be exercisable pursuant to the terms of the Award Agreement.
Whether an SAR is related to an Option or is granted independently, the SAR may
only be exercised when the Fair Market Value of the Shares underlying the SAR
exceeds the exercise price of the SAR.

         (d) EFFECT ON AVAILABLE SHARES. To the extent that an SAR is exercised,
only the actual number of delivered Shares (if any) will be charged against the
maximum number of Shares that may be delivered pursuant to Awards under this
Plan. The number of Shares subject to the SAR and the related Option of the
Participant will, however, be reduced by the number of underlying Shares as to
which the exercise relates, unless the Award Agreement otherwise provides.

         (e) PAYMENT. Upon exercise of an SAR related to an Option and the
attendant surrender of an exercisable portion of any related Award, the
Participant will be entitled to receive payment of an amount determined by
multiplying -

                  (i) the excess of the Fair Market Value of a Share on the date
         of exercise of the SAR over the exercise price per Share of the SAR, by

                  (ii) the number of Shares with respect to which the SAR has
         been exercised.

         Notwithstanding the foregoing, an SAR granted independently of an
Option may limit the amount payable to the Participant to a percentage,
specified in the Award Agreement but not exceeding one-hundred percent (100%),
of the amount determined pursuant to the preceding sentence.

         (f) FORM AND TERMS OF PAYMENT. Subject to Applicable Law, the Committee
may, in its sole discretion, settle the amount determined under Section 7(e)
above solely in cash, solely in Shares (valued at their Fair Market Value on the
date of exercise of the SAR), or partly in cash and partly in Shares. In any
event, cash shall be paid in lieu of fractional Shares. Absent a contrary
determination by the Committee, all SARs shall be settled in cash as soon as
practicable after exercise. Notwithstanding the foregoing, the Committee may, in
an Award Agreement, determine the maximum amount of cash or Shares or
combination thereof that may be delivered upon exercise of an SAR.

         (g) TERMINATION OF EMPLOYMENT OR CONSULTING RELATIONSHIP. The Committee
shall establish and set forth in the applicable Award Agreement the terms and
conditions on which an SAR shall remain exercisable, if at all, following
termination of a Participant's Continuous Service. The provisions of Section
6(h) above shall apply to the extent an Award Agreement does not specify the
terms and conditions upon which an SAR shall terminate when there is a
termination of a Participant's Continuous Service.

         (h) REPRICING AND BUY-OUT. The Committee has the same discretion to
reprice and to buy-out SARs as it has to take such actions with respect to
Options.

8.       RESTRICTED SHARES AND RESTRICTED SHARE UNITS

         (a) GRANTS. The Committee may in its discretion grant restricted shares
("Restricted Shares") to any Eligible Person and shall evidence such grant in an
Award Agreement that is delivered to the Participant which sets forth the number
of Restricted Shares, the purchase price for such Restricted Shares (if any) and
the terms upon which the Restricted Shares may become vested. In addition, the
Company may in its discretion grant the right to receive Shares after certain
vesting requirements are met ("Restricted Share Units") to any Eligible Person
and shall evidence such grant in an Award Agreement that is delivered to the
Participant which sets forth the number of Shares (or formula, that may be based
on future performance or conditions, for determining the number of Shares) that
the Participant shall be entitled to receive upon vesting and the terms upon
which the Shares subject to a Restricted Share Unit may become vested. The

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Committee may condition any Award of Restricted Shares or Restricted Share Units
to a Participant on receiving from the Participant such further assurances and
documents as the Committee may require to enforce the restrictions.

         (b) VESTING AND FORFEITURE. The Committee shall set forth in an Award
Agreement granting Restricted Shares or Restricted Share Units, the terms and
conditions under which the Participant's interest in the Restricted Shares or
the Shares subject to Restricted Share Units will become vested and
non-forfeitable. Except as set forth in the applicable Award Agreement or the
Committee otherwise determines, upon termination of a Participant's Continuous
Service for any other reason, the Participant shall forfeit his or her
Restricted Shares and Restricted Share Units; provided that if a Participant
purchases the Restricted Shares and forfeits them for any reason, the Company
shall return the purchase price to the Participant only if and to the extent set
forth in an Award Agreement.

         (c) ISSUANCE OF RESTRICTED SHARES PRIOR TO VESTING. The Company shall
issue stock certificates that evidence Restricted Shares pending the lapse of
applicable restrictions, and that bear a legend making appropriate reference to
such restrictions. Except as set forth in the applicable Award Agreement or the
Committee otherwise determines, the Company or a third party that the Company
designates shall hold such Restricted Shares and any dividends that accrue with
respect to Restricted Shares pursuant to Section 8(e) below.

         (d) ISSUANCE OF SHARES UPON VESTING. As soon as practicable after
vesting of a Participant's Restricted Shares (or Shares underlying Restricted
Share Units) and the Participant's satisfaction of applicable tax withholding
requirements, the Company shall release to the Participant, free from the
vesting restrictions, one Share for each vested Restricted Share (or issue one
Share free of the vesting restriction for each vested Restricted Share Unit),
unless an Award Agreement provides otherwise. No fractional shares shall be
distributed, and cash shall be paid in lieu thereof.

         (e) DIVIDENDS PAYABLE ON VESTING. Unless an Award Agreement provides
for the earlier payment of cash dividends, whenever Shares are released to a
Participant under Section 8(d) above pursuant to the vesting of Restricted
Shares or the Shares underlying Restricted Share Units are issued to a
Participant pursuant to Section 8(d) above, such Participant may receive, in the
sole discretion of the Committee, with respect to each Share released or issued,
an amount equal to any cash dividends (plus, in the discretion of the Committee,
simple interest at a rate as the Committee may determine) and a number of Shares
equal to any stock dividends, which were declared and paid to the holders of
Shares between the Grant Date and the date such Share is released or issued.

         (f) SECTION 83(b) ELECTIONS. If a Participant who has received
Restricted Share Units provides the Committee with written notice of his or her
intention to make an election under Section 83(b) of the Code with respect to
the Shares subject to such Restricted Share Units (the "Section 83(b)
Election"), the Committee may in its discretion convert the Participant's
Restricted Share Units into Restricted Shares, on a one-for-one basis, in full
satisfaction of the Participant's Restricted Share Unit Award.

         (g) DEFERRAL ELECTIONS. At any time within the calendar year in which a
Participant who is a member of a select group of management or highly
compensated employees (within the meaning of the Code) receives an Award of
either Restricted Shares or Restricted Share Units, the Committee may permit the
Participant to irrevocably elect, on a form provided by and acceptable to the
Committee, to defer the receipt of all or a percentage of the Shares that would
otherwise be transferred to the Participant upon the vesting of such Award. If
the Participant makes this election, the Shares subject to the election, and any
associated dividends and interest, shall be credited to an account established
pursuant to Section 9 hereof on the date such Shares would otherwise have been
released or issued to the Participant pursuant to Section 8(d) above.
Notwithstanding the foregoing, Shares with respect to which a Participant makes
a Section 83(b) Election shall not be eligible for deferral pursuant to Section
9 below.

9.       DEFERRED SHARE UNITS

         (a) ELECTIONS TO DEFER. The Committee may permit any Eligible Person
who is a Director, Consultant or member of a select group of management or
highly compensated employees (within the meaning of the Code) to irrevocably
elect, on a form provided by and acceptable to the Committee (the "Election
Form"), to forego the receipt of cash or other compensation (including

                                      -8-

<PAGE>

Restricted Shares for which a Section 83(b) Election has not been made, and
Shares subject to Restricted Share Units), and in lieu thereof to have the
Company credit to an internal Plan account (the "Account") a number of deferred
share units ("Deferred Share Units") having a Fair Market Value equal to the
Shares and other compensation deferred. These credits will be made at the end of
each calendar month during which compensation is deferred. Each Election Form
shall take effect five business days after its delivery to the Company, unless
during such five business day period the Company sends the Participant a written
notice explaining why the Election Form is invalid. Notwithstanding the
foregoing sentence, Election Forms shall be ineffective with respect to any
compensation that a Participant earns before the date on which the Company
receives the Election Form.

         (b) VESTING. Each Participant shall be 100% vested at all times in any
Shares subject to Deferred Share Units.

         (c) ISSUANCES OF SHARES. The Company shall provide a Participant with
one Share for each Deferred Share Unit in five substantially equal annual
installments that are issued before the last day of each of the five calendar
years that end after the date on which the Participant's Continuous Service
terminates, UNLESS -

                  (i) the Participant has properly elected a different form of
         distribution, on a form approved by the Committee that permits the
         Participant to select any combination of a lump sum and annual
         installments that are completed within ten years following termination
         of the Participant's Continuous Service, and

                  (ii) the Company has received the Participant's distribution
         election form either more than 90 days before a Change in Control, or
         more than one year before the date on which the Participant's
         Continuous Service terminates for any reason other than death, or
         before the Participant's death.

         Fractional shares shall not be issued, and instead shall be paid out in
cash.

         (d) CREDITING OF DIVIDENDS. Unless an Award Agreement provides for the
earlier payment of cash dividends, whenever Shares are issued to a Participant
pursuant to Section 9(c) above, such Participant shall also be entitled to
receive, with respect to each Share issued, a cash amount equal to any cash
dividends (plus simple interest at a rate of five percent per annum, or such
other reasonable rate as the Committee may determine), and a number of Shares
equal to any stock dividends which were declared and paid to the holders of
Shares between the Grant Date and the date such Share is issued.

         (e) HARDSHIP WITHDRAWALS. In the event a Participant suffers an
unforeseeable hardship within the contemplation of this Section 9(e) , the
Participant may apply to the Company for an immediate distribution of all or a
portion of the Participant's Deferred Share Units. The hardship must result from
a sudden and unexpected illness or accident of the Participant or a dependent of
the Participant, casualty loss of property, or other similar conditions beyond
the control of the Participant. Examples of purposes which are not considered
hardships include post-secondary school expenses or the desire to purchase a
residence. In no event will a distribution be made to the extent the hardship
could be relieved through reimbursement or compensation by insurance or
otherwise, or by liquidation of the Participant's nonessential assets to the
extent such liquidation would not itself cause a severe financial hardship. The
amount of any distribution hereunder shall be limited to the amount necessary to
relieve the Participant's financial hardship. The Committee shall determine
whether a Participant has a qualifying hardship and the amount which qualifies
for distribution, if any. The Committee may require evidence of the purpose and
amount of the need, and may establish such application or other procedures as it
deems appropriate.

         (f) UNSECURED RIGHTS TO DEFERRED COMPENSATION. A Participant's right to
Deferred Share Units shall at all times constitute an unsecured promise of the
Company to pay benefits as they come due. The right of the Participant or the
Participant's duly-authorized transferee to receive benefits hereunder shall be
solely an unsecured claim against the general assets of the Company. Neither the
Participant nor the Participant's duly-authorized transferee shall have any
claim against or rights in any specific assets, shares, or other funds of the
Company.

                                      -9-

<PAGE>

10.      PERFORMANCE AWARDS

         (a) PERFORMANCE UNITS. Subject to the limitations set forth in
paragraph (c) hereof, the Committee may in its discretion grant Performance
Units to any Eligible Person and shall evidence such grant in an Award Agreement
that is delivered to the Participant which sets forth the terms and conditions
of the Award.

         (b) PERFORMANCE COMPENSATION AWARDS. Subject to the limitations set
forth in paragraph (c) hereof, the Committee may, at the time of grant of a
Performance Unit, designate such Award as a "Performance Compensation Award" in
order that such Award constitutes "qualified performance-based compensation"
under Code Section 162(m), in which event the Committee shall have the power to
grant such Performance Compensation Award upon terms and conditions that qualify
it as "qualified performance-based compensation" within the meaning of Code
Section 162(m). With respect to each such Performance Compensation Award, the
Committee shall establish, in writing within the time required under Code
Section 162(m), a "Performance Period," "Performance Measure(s)", and
"Performance Formula(e)" (each such term being hereinafter defined).

         A Participant shall be eligible to receive payment in respect of a
Performance Compensation Award only to the extent that the Performance
Measure(s) for such Award are achieved and the Performance Formula(e) as applied
against such Performance Measure(s) determines that all or some portion of such
Participant's Award has been earned for the Performance Period. As soon as
practicable after the close of each Performance Period, the Committee shall
review and certify in writing whether, and to what extent, the Performance
Measure(s) for the Performance Period have been achieved and, if so, determine
and certify in writing the amount of the Performance Compensation Award to be
paid to the Participant and, in so doing, may use negative discretion to
decrease, but not increase, the amount of the Award otherwise payable to the
Participant based upon such performance.

         (c) LIMITATIONS ON AWARDS. The maximum Performance Unit Award and the
maximum Performance Compensation Award that any one Participant may receive for
any one Performance Period shall not together exceed 500,000 Shares and
$2,000,000 in cash. The Committee shall have the discretion to provide in any
Award Agreement that any amounts earned in excess of these limitations will
either be credited as Deferred Share Units, or as deferred cash compensation
under a separate plan of the Company (provided in the latter case that such
deferred compensation either bears a reasonable rate of interest or has a value
based on one or more predetermined actual investments). Any amounts for which
payment to the Participant is deferred pursuant to the preceding sentence shall
be paid to the Participant in a future year or years not earlier than, and only
to the extent that, the Participant is either not receiving compensation in
excess of these limits for a Performance Period, or is not subject to the
restrictions set forth under Section 162(b) of the Code.

         (d) DEFINITIONS.

                  (i) "Performance Formula" means, for a Performance Period, one
         or more objective formulas or standards established by the Committee
         for purposes of determining whether or the extent to which an Award has
         been earned based on the level of performance attained or to be
         attained with respect to one or more Performance Measure(s).
         Performance Formulae may vary from Performance Period to Performance
         Period and from Participant to Participant and may be established on a
         stand-alone basis, in tandem or in the alternative.

                  (ii) "Performance Measure" means one or more of the following
         selected by the Committee to measure Company, Affiliate, and/or
         business unit performance for a Performance Period, whether in absolute
         or relative terms (including, without limitation, terms relative to a
         peer group or index): basic, diluted, or adjusted earnings per share;
         sales or revenue; earnings before interest, taxes, and other
         adjustments (in total or on a per share basis); basic or adjusted net
         income; basic or adjusted funds from operations or cash flows; returns
         on equity, assets, capital, revenue or similar measure; level and
         growth of dividends; the price or increase in price of shares; working
         capital; total shareholder return; total assets; growth in assets; and
         product development, product market share, research, licensing,
         litigation, human resources, information services, mergers,
         acquisitions, sales of assets of Affiliates or business units. Each
         such measure shall be to the extent applicable, determined in
         accordance with generally accepted accounting principles as

                                      -10-

<PAGE>

         consistently applied by the Company (or such other standard applied by
         the Committee) and, if so determined by the Committee, and in the case
         of a Performance Compensation Award, to the extent permitted under Code
         Section 162(m), adjusted to omit the effects of extraordinary items,
         gain or loss on the disposal of a business segment, unusual or
         infrequently occurring events and transactions and cumulative effects
         of changes in accounting principles. Performance Measures may vary from
         Performance Period to Performance Period and from Participant to
         Participant, and may be established on a stand-alone basis, in tandem
         or in the alternative.

                  (iii) "Performance Period" means one or more periods of time
         (of not less than one fiscal year of the Company), as the Committee may
         designate, over which the attainment of one or more Performance
         Measure(s) will be measured for the purpose of determining a
         Participant's rights in respect of an Award.

11.      TAXES

         (a) GENERAL. As a condition to the issuance or distribution of Shares
pursuant to the Plan, the Participant (or in the case of the Participant's
death, the person who succeeds to the Participant's rights) shall make such
arrangements as the Company may require for the satisfaction of any applicable
federal, state, local or foreign withholding tax obligations that may arise in
connection with the Award and the issuance of Shares. The Company shall not be
required to issue any Shares until such obligations are satisfied. If the
Committee allows the withholding or surrender of Shares to satisfy a
Participant's tax withholding obligations, the Committee shall not allow Shares
to be withheld in an amount that exceeds the minimum statutory withholding rates
for federal and state tax purposes, including payroll taxes.

         (b) DEFAULT RULE FOR EMPLOYEES. In the absence of any other
arrangement, an Employee shall be deemed to have directed the Company to
withhold or collect from his or her cash compensation an amount sufficient to
satisfy such tax obligations from the next payroll payment otherwise payable
after the date of the exercise of an Award.

         (c) SPECIAL RULES. In the case of a Participant other than an Employee
(or in the case of an Employee where the next payroll payment is not sufficient
to satisfy such tax obligations, with respect to any remaining tax obligations),
in the absence of any other arrangement and to the extent permitted under the
Applicable Law, the Participant shall be deemed to have elected to have the
Company withhold from the Shares or cash to be issued pursuant to an Award that
number of Shares having a Fair Market Value determined as of the applicable Tax
Date (as defined below) equal to the amount required to be withheld. For
purposes of this Section 11, the Fair Market Value of the Shares to be withheld
shall be determined on the date that the amount of tax to be withheld is to be
determined under the Applicable Law (the "Tax Date").

         (d) SURRENDER OF SHARES. If permitted by the Committee, in its
discretion, a Participant may satisfy the minimum applicable tax withholding and
employment tax obligations associated with an Award by surrendering Shares to
the Company (including Shares that would otherwise be issued pursuant to the
Award) that have a Fair Market Value determined as of the applicable Tax Date
equal to the amount required to be withheld. In the case of Shares previously
acquired from the Company that are surrendered under this Section 11, such
Shares must have been owned by the Participant for more than six months on the
date of surrender (or such longer period of time the Company may in its
discretion require).

12.      NON-TRANSFERABILITY OF AWARDS

         (a) GENERAL. Except as set forth in this Section 12, or as otherwise
approved by the Committee for a select group of management or highly compensated
Employees, Awards may not be sold, pledged, assigned, hypothecated, transferred
or disposed of in any manner other than by will or by the laws of descent or
distribution. The designation of a beneficiary by a Participant will not
constitute a transfer. An Award may be exercised, during the lifetime of the
holder of an Award, only by such holder, the duly-authorized legal
representative of a disabled Participant, or a transferee permitted by this
Section 12.

                                      -11-

<PAGE>

         (b) LIMITED TRANSFERABILITY RIGHTS. Notwithstanding anything else in
this Section 12, the Committee may in its discretion provide that an Award may
be transferred by instrument to an inter vivos or testamentary trust (or other
entity) in which the Award is to be passed to beneficiaries upon the death of
the trustor (settlor), or by gift to charitable institutions, the Participant's
"Immediate Family" (as defined below), on such terms and conditions as the
Committee deems appropriate. "Immediate Family" means any child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling,
niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, and shall include adoptive relationships.

13.      ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, MERGER OR CERTAIN OTHER
         TRANSACTIONS

         (a) CHANGES IN CAPITALIZATION. The Committee shall equitably adjust the
number of Shares covered by each outstanding Award, and the number of Shares
that have been authorized for issuance under the Plan but as to which no Awards
have yet been granted or that have been returned to the Plan upon cancellation,
forfeiture, or expiration of an Award, as well as the price per Share covered by
each such outstanding Award, to reflect any increase or decrease in the number
of issued Shares resulting from a stock-split, reverse stock-split, stock
dividend, combination, recapitalization or reclassification of the Shares, or
any other increase or decrease in the number of issued Shares effected without
receipt of consideration by the Company. In the event of any such transaction or
event, the Committee may provide in substitution for any or all outstanding
Options under the Plan such alternative consideration (including securities of
any surviving entity) as it may in good faith determine to be equitable under
the circumstances and may require in connection therewith the surrender of all
Options so replaced. In any case, such substitution of securities shall not
require the consent of any person who is granted options pursuant to the Plan.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be required to be made
with respect to, the number or price of Shares subject to any Award.

         (b) DISSOLUTION OR LIQUIDATION. In the event of the dissolution or
liquidation of the Company other than as part of a Change of Control, each Award
will terminate immediately prior to the consummation of such action, subject to
the ability of the Committee to exercise any discretion authorized in the case
of a Change in Control.

         (c) CHANGE IN CONTROL. In the event of a Change in Control, the
Committee may in its sole and absolute discretion and authority, without
obtaining the approval or consent of the Company's shareholders or any
Participant with respect to his or her outstanding Awards, take one or more of
the following actions:

                  (i) arrange for or otherwise provide that each outstanding
         Award shall be assumed or a substantially similar award shall be
         substituted by a successor corporation or a parent or subsidiary of
         such successor corporation (the "Successor Corporation");

                  (ii) accelerate the vesting of Awards so that Awards shall
         vest (and, to the extent applicable, become exercisable) as to the
         Shares that otherwise would have been unvested and provide that
         repurchase rights of the Company with respect to Shares issued upon
         exercise of an Award shall lapse as to the Shares subject to such
         repurchase right;

                  (iii) arrange or otherwise provide for the payment of cash or
         other consideration to Participants in exchange for the satisfaction
         and cancellation of outstanding Awards; or

                  (iv) make such other modifications, adjustments or amendments
         to outstanding Awards or this Plan as the Committee deems necessary or
         appropriate.

         Notwithstanding the above, in the event a Participant holding an Award
assumed or substituted by the Successor Corporation in a Change in Control is
Involuntarily Terminated by the Successor Corporation in connection with, or
within 12 months following consummation of, the Change in Control, then any
assumed or substituted Award held by the terminated Participant at the time of
termination shall accelerate and become fully vested (and exercisable in full in
the case of Options and SARs), and any repurchase right applicable to any Shares

                                      -12-

<PAGE>

shall lapse in full, unless an Award Agreement provides for a more restrictive
acceleration or vesting schedule or more restrictive limitations on the lapse of
repurchase rights or otherwise places additional restrictions, limitations and
conditions on an Award. The acceleration of vesting and lapse of repurchase
rights provided for in the previous sentence shall occur immediately prior to
the effective date of the Participant's termination, unless an Award Agreement
provides otherwise.

         (d) CERTAIN DISTRIBUTIONS. In the event of any distribution to the
Company's shareholders of securities of any other entity or other assets (other
than dividends payable in cash or stock of the Company) without receipt of
consideration by the Company, the Committee may, in its discretion,
appropriately adjust the price per Share covered by each outstanding Award to
reflect the effect of such distribution.

14.      TIME OF GRANTING AWARDS.

         The date of grant ("Grant Date") of an Award shall be the date on which
the Committee makes the determination granting such Award or such other date as
is determined by the Committee, provided that in the case of an ISO, the Grant
Date shall be the later of the date on which the Committee makes the
determination granting such ISO or the date of commencement of the Participant's
employment relationship with the Company.

15.      MODIFICATION OF AWARDS AND SUBSTITUTION OF OPTIONS.

         (a) MODIFICATION, EXTENSION, AND RENEWAL OF AWARDS. Within the
limitations of the Plan, the Committee may modify an Award, to accelerate the
rate at which an Option or SAR may be exercised (including without limitation
permitting an Option or SAR to be exercised in full without regard to the
installment or vesting provisions of the applicable Award Agreement or whether
the Option or SAR is at the time exercisable, to the extent it has not
previously been exercised), to accelerate the vesting of any Award, to extend or
renew outstanding Awards, or to accept the cancellation of outstanding Awards to
the extent not previously exercised either for the granting of new Awards or for
other consideration in substitution or replacement thereof.

         (b) SUBSTITUTION OF OPTIONS. Notwithstanding any inconsistent
provisions or limits under the Plan, in the event the Company or an Affiliate
acquires (whether by purchase, merger or otherwise) all or substantially all of
outstanding capital stock or assets of another corporation or in the event of
any reorganization or other transaction qualifying under Section 424 of the
Code, the Committee may, in accordance with the provisions of that Section,
substitute Options for options under the plan of the acquired company provided
(i) the excess of the aggregate fair market value of the shares subject to an
option immediately after the substitution over the aggregate option price of
such shares is not more than the similar excess immediately before such
substitution and (ii) the new Option does not give persons additional benefits,
including any extension of the exercise period.

16.      TERM OF PLAN.

         The Plan shall continue in effect for a term of ten (10) years from its
effective date as determined under Section 20 below, unless the Plan is sooner
terminated under Section 17 below.

17.      AMENDMENT AND TERMINATION OF THE PLAN.

         (a) AUTHORITY TO AMEND OR TERMINATE. Subject to Applicable Laws, the
Board may from time to time amend, alter, suspend, discontinue, or terminate the
Plan.

         (b) EFFECT OF AMENDMENT OR TERMINATION. No amendment, suspension, or
termination of the Plan shall materially and adversely affect Awards already
granted unless either it relates to an adjustment pursuant to Section 13 above,
or it is otherwise mutually agreed between the Participant and the Committee,
which agreement must be in writing and signed by the Participant and the
Company. Notwithstanding the foregoing, the Committee may amend the Plan to
eliminate provisions which are no longer necessary as a result of changes in tax
or securities laws or regulations, or in the interpretation thereof.

                                      -13-

<PAGE>

18. CONDITIONS UPON ISSUANCE OF SHARES.

         Notwithstanding any other provision of the Plan or any agreement
entered into by the Company pursuant to the Plan, the Company shall not be
obligated, and shall have no liability for failure, to issue or deliver any
Shares under the Plan unless such issuance or delivery would comply with
Applicable Law, with such compliance determined by the Company in consultation
with its legal counsel.

19.      RESERVATION OF SHARES.

         The Company, during the term of this Plan, will at all times reserve
and keep available such number of Shares as shall be sufficient to satisfy the
requirements of the Plan.

20.      EFFECTIVE DATE.

         This Plan shall become effective on the date of its approval by the
Board; provided that this Plan shall be submitted to the Company's shareholders
for approval, and if not approved by the shareholders within one year from the
date of approval by the Board, this Plan and any Awards shall be null, void, and
of no force and effect. Awards granted under this Plan before approval of this
Plan by the shareholders shall be granted subject to such approval and no Shares
shall be distributed before such approval.

21.      CONTROLLING LAW.

         All disputes relating to or arising from the Plan shall be governed by
the internal substantive laws (and not the laws of conflicts of laws) of the
State of Delaware, to the extent not preempted by United States federal law. If
any provision of this Plan is held by a court of competent jurisdiction to be
invalid and unenforceable, the remaining provisions shall continue to be fully
effective.

22.      LAWS AND REGULATIONS.

         (a) U.S. SECURITIES LAWS. This Plan, the grant of Awards, and the
exercise of Options and SARs under this Plan, and the obligation of the Company
to sell or deliver any of its securities (including, without limitation,
Options, Restricted Shares, Restricted Share Units, Deferred Share Units, and
Shares) under this Plan shall be subject to all Applicable Law. In the event
that the Shares are not registered under the Securities Act of 1933, as amended
(the "Act"), or any applicable state securities laws prior to the delivery of
such Shares, the Company may require, as a condition to the issuance thereof,
that the persons to whom Shares are to be issued represent and warrant in
writing to the Company that such Shares are being acquired by him or her for
investment for his or her own account and not with a view to, for resale in
connection with, or with an intent of participating directly or indirectly in,
any distribution of such Shares within the meaning of the Act, and a legend to
that effect may be placed on the certificates representing the Shares.

         (b) OTHER JURISDICTIONS. To facilitate the making of any grant of an
Award under this Plan, the Committee may provide for such special terms for
Awards to Participants who are foreign nationals or who are employed by the
Company or any Affiliate outside of the United States of America as the
Committee may consider necessary or appropriate to accommodate differences in
local law, tax policy or custom. The Company may adopt rules and procedures
relating to the operation and administration of this Plan to accommodate the
specific requirements of local laws and procedures of particular countries.
Without limiting the foregoing, the Company is specifically authorized to adopt
rules and procedures regarding the conversion of local currency, taxes,
withholding procedures and handling of stock certificates which vary with the
customs and requirements of particular countries. The Company may adopt
sub-plans and establish escrow accounts and trusts as may be appropriate or
applicable to particular locations and countries.

23.      NO SHAREHOLDER RIGHTS. Neither a Participant nor any transferee of
a Participant shall have any rights as a shareholder of the Company with respect
to any Shares underlying any Award until the date of issuance of a share
certificate to a Participant or a transferee of a Participant for such Shares in
accordance with the Company's governing instruments and Applicable Law. Prior to
the issuance of Shares pursuant to an Award, a Participant shall not have the

                                      -14-

<PAGE>

right to vote or to receive dividends or any other rights as a shareholder with
respect to the Shares underlying the Award, notwithstanding its exercise in the
case of Options and SARs. No adjustment will be made for a dividend or other
right that is determined based on a record date prior to the date the stock
certificate is issued, except as otherwise specifically provided for in this
Plan.

24.      NO EMPLOYMENT RIGHTS. The Plan shall not confer upon any
Participant any right to continue an employment, service or consulting
relationship with the Company, nor shall it affect in any way a Participant's
right or the Company's right to terminate the Participant's employment, service,
or consulting relationship at any time, with or without Cause.

                                      -15-

<PAGE>

                         OUTDOOR CHANNEL HOLDINGS, INC.
                          2004 LONG-TERM INCENTIVE PLAN

                                   ----------

                             APPENDIX A: DEFINITIONS

                                   ----------

         As used in the Plan, the following definitions shall apply:

         "AFFILIATE" means any entity which together with the Company is under
common control within the meaning of Section 414 of the Code (provided that 50%
shall be substituted for 80% when applying the Section 414 common control
rules).

         "APPLICABLE LAW" means the legal requirements relating to the
administration of options and share-based plans under applicable U.S. federal
and state laws, the Code, any applicable stock exchange or automated quotation
system rules or regulations, and the applicable laws of any other country or
jurisdiction where Awards are granted, as such laws, rules, regulations and
requirements shall be in place from time to time.

         "AWARD" means any award made pursuant to the Plan, including awards
made in the form of an Option, an SAR, a Restricted Share, a Restricted Share
Unit, a Deferred Share Unit and a Performance Award, or any combination thereof,
whether alternative or cumulative, authorized by and granted under this Plan.

         "AWARD AGREEMENT" means any written document setting forth the terms of
an Award that has been authorized by the Committee. The Committee shall
determine the form or forms of documents to be used, and may change them from
time to time for any reason.

         "BOARD" means the Board of Directors of the Company.

         "CAUSE" for termination of a Participant's Continuous Service will
exist if the Participant is terminated from employment or other service with the
Company or an Affiliate for any of the following reasons: (i) the Participant's
willful failure to substantially perform his or her material duties and
responsibilities to the Company or deliberate violation of a material Company
policy; (ii) the Participant's commission of any material act or acts of fraud,
embezzlement, dishonesty, or other willful misconduct; (iii) the Participant's
material unauthorized use or disclosure of any proprietary information or trade
secrets of the Company or any other party to whom the Participant owes an
obligation of nondisclosure as a result of his or her relationship with the
Company; or (iv) Participant's willful and material breach of any of his or her
obligations under any written agreement or covenant with the Company.

         The Committee shall in its discretion determine whether or not a
Participant is being terminated for Cause. The Committee's determination shall,
unless arbitrary and capricious, be final and binding on the Participant, the
Company, and all other affected persons. The foregoing definition does not in
any way limit the Company's ability to terminate a Participant's employment or
consulting relationship at any time, and the term "Company" will be interpreted
herein to include any Affiliate or successor thereto, if appropriate.

         "CHANGE IN CONTROL" means any of the following:

         (a) a sale, transfer, or other disposition of all or substantially all
of the Company's assets and properties is closed or consummated;

         (b) any "person" (as such term is used in Section 13(d) and 14(d) of
the Exchange Act), other than the Company, any Affiliate, or any "person" who as
of the date this Plan is adopted by the Board, is a director or officer of the
Company (including any trust of such director or officer), is or becomes the
"beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of the Company representing fifty percent (50%) or
more of the combined voting power of the Company's then outstanding securities

                                       A-1

<PAGE>

provided, however, that the following subclauses (i), (ii) and (iii) shall not
constitute a "Change in Control" of the Company for purposes of this subclause
(b):

                  (i) any acquisition directly from the Company (excluding any
         acquisition resulting from the exercise of a conversion or exchange
         privilege in respect of outstanding convertible or exchangeable
         securities);

                  (ii) any acquisition by an employee benefit plan (or related
         trust) sponsored or maintained by the Company, any Affiliate, or any
         entity controlled by the Company or an Affiliate; or

                  (iii) upon the death of any person who as of the date on which
         the Board adopts the Plan is a director or officer of the Company, the
         transfer (1) by testamentary disposition or the laws of intestate
         succession to the estate or the legal beneficiaries or heirs of such
         person, or (2) by the provisions of any living trust to the named
         current income beneficiaries thereof of the securities of the Company
         beneficially owned by such director or officer of the Company;

         (c) during any period of two consecutive years during the term of this
Plan, individuals who at the beginning of such period constitute the Board cease
for any reason to constitute at least a majority thereof, unless the election of
each director who was not a director at the beginning of such period has been
approved in advance by directors representing at least two-thirds of the
directors then in office who were directors at the beginning of the period; or

         (d) the Company is dissolved or liquidated or a merger, reorganization,
or consolidation involving the Company is closed or consummated, other than a
merger, reorganization, or consolidation in which holders of Shares immediately
prior to such transaction own, either directly or indirectly, fifty percent
(50%) or more of the equity interests or combined voting power of the surviving
corporation or entity (or its parent company) immediately following such
transaction.

         "CODE" means the U.S. Internal Revenue Code of 1986, as amended.

         "COMMITTEE" means one or more committees or subcommittees of the Board
appointed by the Board to administer the Plan in accordance with Section 4
above. With respect to any decision involving an Award intended to satisfy the
requirements of Section 162(m) of the Code, the Committee shall consist of two
or more Directors of the Company who are "outside directors" within the meaning
of Section 162(m) of the Code.

         "COMPANY" means Outdoor Channel Holdings, Inc., a Delaware corporation;
provided, however, that in the event the Company reincorporates to another
jurisdiction, all references to the term "Company" shall refer to the Company in
such new jurisdiction.

         "CONSULTANT" means any person, including an advisor, who is engaged by
the Company or any Affiliate to render services and is compensated for such
services.

         "CONTINUOUS SERVICE" means the absence of any interruption or
termination of service as an Employee, Director, or Consultant. Continuous
Service shall not be considered interrupted in the case of: (i) sick leave; (ii)
military leave; (iii) any other leave of absence approved by the Committee,
provided that such leave is for a period of not more than 90 days, unless
reemployment upon the expiration of such leave is guaranteed by contract or
statute, or unless provided otherwise pursuant to Company policy adopted from
time to time; (iv) changes in status from Director to advisory director or
emeritus status; or (iv) in the case of transfers between locations of the
Company or between the Company, its Affiliates or their respective successors.
Changes in status between service as an Employee, Director, and a Consultant
will not constitute an interruption of Continuous Service.

         "DEFERRED SHARE UNITS" mean Awards pursuant to Section 9 of the Plan.

         "DIRECTOR" means a member of the Board, or a member of the board of
directors of an Affiliate.

                                      A-2

<PAGE>

         "ELIGIBLE PERSON" means any Consultant, Director or Employee and
includes non-Employees to whom an offer of employment has been extended.

         "EMPLOYEE" means any person whom the Company or any Affiliate
classifies as an employee (including an officer) for employment tax purposes.
The payment by the Company of a director's fee to a Director shall not be
sufficient to constitute "employment" of such Director by the Company.

         "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

         "FAIR MARKET VALUE" means, as of any date (the "Determination Date")
means: (i) the closing price of a Share on the New York Stock Exchange or the
American Stock Exchange (collectively, the "Exchange"), on the Determination
Date, or, if shares were not traded on the Determination Date, then on the
nearest preceding trading day during which a sale occurred; or (ii) if such
stock is not traded on the Exchange but is quoted on NASDAQ or a successor
quotation system, (A) the last sales price (if the stock is then listed as a
National Market Issue under The Nasdaq National Market System) or (B) the mean
between the closing representative bid and asked prices (in all other cases) for
the stock on the Determination Date as reported by NASDAQ or such successor
quotation system; or (iii) if such stock is not traded on the Exchange or quoted
on NASDAQ but is otherwise traded in the over-the-counter, the mean between the
representative bid and asked prices on the Determination Date; or (iv) if
subsections (i)-(iii) do not apply, the fair market value established in good
faith by the Board.

         "GRANT DATE" has the meaning set forth in Section 14 of the Plan.

         "INCENTIVE SHARE OPTION OR ISO" hereinafter means an Option intended to
qualify as an incentive stock option within the meaning of Section 422 of the
Code, as designated in the applicable Award Agreement.

         "INVOLUNTARY TERMINATION" means termination of a Participant's
Continuous Service under the following circumstances occurring on or after a
Change in Control: (i) termination without Cause by the Company or an Affiliate
or successor thereto, as appropriate; or (ii) voluntary termination by the
Participant within 60 days following (A) a material reduction in the
Participant's job responsibilities, provided that neither a mere change in title
alone nor reassignment to a substantially similar position shall constitute a
material reduction in job responsibilities; (B) an involuntary relocation of the
Participant's work site to a facility or location more than 50 miles from the
Participant's principal work site at the time of the Change in Control; or (C) a
material reduction in Participant's total compensation other than as part of an
reduction by the same percentage amount in the compensation of all other
similarly-situated Employees, Directors or Consultants.

         "NON-ISO" means an Option not intended to qualify as an ISO, as
designated in the applicable Award Agreement.

         "OPTION" means any stock option granted pursuant to Section 6 of the
Plan.

         "PARTICIPANT" means any holder of one or more Awards, or the Shares
issuable or issued upon exercise of such Awards, under the Plan.

         "PERFORMANCE AWARDS" mean Performance Units and Performance
Compensation Awards granted pursuant to Section 10.

         "PERFORMANCE COMPENSATION AWARDS" mean Awards granted pursuant to
Section 10(b) of the Plan.

         "PERFORMANCE UNIT" means Awards granted pursuant to Section 10(a) of
the Plan which may be paid in cash, in Shares, or such combination of cash and
Shares as the Committee in its sole discretion shall determine.

         "PLAN" means this Outdoor Channel Holdings, Inc. 2004 Long-term
Incentive Plan.

                                      A-3

<PAGE>

         "REPORTING PERSON" means an officer, Director, or greater than ten
percent shareholder of the Company within the meaning of Rule 16a-2 under the
Exchange Act, who is required to file reports pursuant to Rule 16a-3 under the
Exchange Act.

         "RESTRICTED SHARES" mean Shares subject to restrictions imposed
pursuant to Section 8 of the Plan.

         "RESTRICTED SHARE UNITS" mean Awards pursuant to Section 8 of the Plan.

         "RULE 16B-3" means Rule 16b-3 promulgated under the Exchange Act, as
amended from time to time, or any successor provision.

         "SAR" OR "SHARE APPRECIATION RIGHT" means Awards granted pursuant to
Section 7 of the Plan.

         "SHARE" means a share of common stock of the Company, as adjusted in
accordance with Section 13 of the Plan.

         "TEN PERCENT HOLDER" means a person who owns stock representing more
than ten percent (10%) of the combined voting power of all classes of stock of
the Company or any Affiliate.

                                      A-4<PAGE>

                                                                    EXHIBIT 4.1

                         OUTDOOR CHANNEL HOLDINGS, INC.

             NON-EMPLOYEE DIRECTORS STOCK OPTION PLAN, AS AMENDED(1)

         1. PURPOSE. The purpose of this Outdoor Channel Holdings, Inc.
Non-Employee Directors Stock Option Plan (the "Plan") is to advance the
interests of Outdoor Channel Holdings, Inc., a Delaware corporation (the
"Company"), and its shareholders ("Shareholders") by (a) encouraging increased
share ownership by the Company's directors who are not employees of the Company
or employees or directors of any of its subsidiaries, (b) enhancing the
Company's ability to attract and retain the services of experienced, able and
knowledgeable persons to serve as directors and (c) providing additional
incentive for directors to contribute their best efforts to the Company's
success.

         2. NON-QUALIFIED STOCK OPTIONS. The options to be granted pursuant to
this Plan ("Options" or, individually, an "Option") are nonstatutory options and
are not intended to qualify as incentive stock options under Section 422 of the
Internal Revenue Code of 1986, as amended.

         3. ADMINISTRATION. This Plan shall be administered by the Company's
Board of Directors (the "Board"). The Board shall have full authority,
consistent with this Plan, to construe and interpret this Plan and any
agreements defining the rights and obligations of the Company and Eligible
Directors (as defined below) under the Plan, to promulgate, amend and rescind
such rules and regulations with respect to this Plan as it deems desirable and
to make all other determinations necessary or desirable for the administration
of this Plan. All decisions, determinations and interpretations of the Board
shall be binding upon all Eligible Directors, the Company and all other
interested persons. The Board may, in its discretion, delegate any or all of its
authority under the Plan to a committee consisting of two or more directors of
the Company, so long as allowable under applicable law, and if such authority is
so delegated to such a committee all references to the Board in this Plan shall
mean and relate to such committee to the extent of the power so delegated. The
Company shall pay or reimburse any member of the Board, as well as any employee
or consultant who takes action in connection with this Plan at the direction of
the Board, for all expenses incurred with respect to the Plan and shall
indemnify each and every one of them for any claims, liabilities and costs
(including reasonable attorneys' fees) arising out of their good faith
performance of duties under this Plan, to the fullest extent permitted by law.
The Company may obtain liability insurance for this purpose.

         4. SHARES SUBJECT TO THE PLAN. The shares of stock to be issued upon
the exercise of Options shall be authorized shares of the Company's voting
shares of common stock ("Shares" or, individually, "Share"), either previously
unissued or previously issued but reacquired by the Company. The aggregate
number of Shares to be issued upon the exercise of Options granted under this
Plan shall be One Million Two Hundred Fifty Thousand (1,250,000), subject to
adjustment as provided in Section 8 below. Any Share subject to an Option which
is cancelled, terminated or otherwise expires without having been exercised
shall again be available to be awarded under this Plan.

         5. GRANTING OF OPTIONS.

                  (a) ELIGIBLE DIRECTOR. As used herein, "Eligible Director"
means any of the Company's directors who are not (i) employees of the Company or
of any direct or indirect subsidiary of the Company, and (ii) have not been
employees of the Company or any direct or indirect subsidiary of the Company
during any of the three previous years prior to such director's election or
appointment as a director of the Company (collectively, "Eligible Directors"
and, individually, an "Eligible Director").

----------
(1) This plan, as amended, reflects the reincorporation of the Company from
Alaska into Delaware on September 14, 2004 and the 5 for 2 forward split
effected in connection therewith.

                                      -1-

<PAGE>

                  (b) OPTION GRANT. Pursuant to the terms of this Plan, the
Company shall, on the date an Eligible Director is first elected or appointed as
a director of the Company, grant to such Eligible Director an Option to purchase
one hundred twenty five thousand (125,000) Shares; provided, however, that
persons who were previously Eligible Directors and already received an Option
under this Plan shall not be entitled to receive a second Option upon rejoining
the Company's Board of Directors.

                  (c) NO OPTION GRANT WHERE PROHIBITED. No Eligible Director
shall be granted an Option under this Plan if at the time of such grant, the
grant is prohibited by applicable law or by the policies of the employer of such
person or the policies of any other company of which such person is a member of
the board of directors, a general partner or a manager.

                  (d) OPTION AGREEMENT. Each Option shall be evidenced by an
option agreement executed by the Company and the Eligible Director receiving
such Option. Each such agreement shall state the terms and conditions of the
grant, not inconsistent with this Plan, as the Board in its sole discretion
shall determine and approve.

                  (e) OPTION PRICE. The purchase price for each Share subject to
an Option shall be its Fair Market Value (as defined in paragraph 5(f) below)
determined as of the date such Option is granted (the "Grant Date").

                  (f) DEFINITION OF FAIR MARKET VALUE. For the purposes of this
Plan, "Fair Market Value" as of a certain date (the "Determination Date") means:
(i) the closing price of a share of the Company's Shares on the New York Stock
Exchange or the American Stock Exchange (collectively, the "Exchange"), on the
Determination Date, or, if shares were not traded on the Determination Date,
then on the nearest preceding trading day during which a sale occurred; or (ii)
if such stock is not traded on the Exchange but is quoted on NASDAQ or a
successor quotation system, (A) the last sales price (if the stock is then
listed as a National Market Issue under The Nasdaq National Market System) or
(B) the mean between the closing representative bid and asked prices (in all
other cases) for the stock on the Determination Date as reported by NASDAQ or
such successor quotation system; or (iii) if such stock is not traded on the
Exchange or quoted on NASDAQ but is otherwise traded in the over-the-counter
market, the mean between the representative bid and asked prices on such date;
or (iv) if subsections (i)-(iii) do not apply, the fair market value established
in good faith by the Board.

                  (g) NONTRANSFERABILITY. An Option shall be nonassignable and
nontransferable other than by will or the laws of descent and distribution.
Notwithstanding the foregoing, Options may be transferred to an Eligible
Director's family members who acquire the Options from the Eligible Director
through a gift or a domestic relations order which meets the requirements set
forth in general instruction A.1.(a)(5) of Form S-8 Registration Statement under
the United States Security Act of 1933, as amended. In the event of an Eligible
Director's death, an Option may be exercised by such director's designated
beneficiary or, in the absence of such designation, by will or the laws of
descent and distribution to the extent permitted by this Plan.

         6. EXERCISE OF OPTIONS.

                  (a) VESTING SCHEDULE. Except as provided in Section 6(d)
hereof, each Option shall become exercisable on the following schedule, provided
that the Eligible Director is then serving as a member of the Board on such
date: (i) beginning on the date three months following the Grant Date, forty
percent (40%) of the total number of Shares covered by such Option (the total
number of shares herein referred to as the "Covered Shares"), (ii) beginning on
the first anniversary of the Grant Date, an aggregate of sixty percent (60%) of
the Covered Shares, (iii) beginning on the second anniversary of the Grant Date,
an aggregate of eighty percent (80%) of the Covered Shares, and (iv) beginning
on the third anniversary of the Grant Date, and thereafter until the expiration
of such Option pursuant to Section 7 of this Plan, an aggregate of one hundred
percent (100%) of the Covered Shares. No Option shall be exercisable as to any
Shares with respect to which such Option previously has been exercised.

                  (b) METHOD OF EXERCISE. Prior to its expiration pursuant to
Section 7 hereof and in accordance with the vesting schedule outlined in Section
6(a) hereof, each Option may be exercised, in whole or in part (provided,

                                      -2-

<PAGE>

however, that the Company shall not be required to issue fractional shares) by
delivery of written notice of exercise to the secretary of the Company
accompanied by the full purchase price of the Shares being purchased. The
purchase price shall be paid (i) in cash or by check made payable to the
Company, or (ii) in Payment Shares (as defined in Section 6(c) hereof), the Fair
Market Value of which, as of the date of exercise, is equal to the Purchase
Price, or (iii) by any combination of cash and Payment Shares. In addition, at
the Board's discretion, the Company may allow the exercise of an Option and the
payment of the purchase price by permitting the sale of the shares underlying
the Option through a broker in accordance with a cashless exercise program
acceptable to the Company pursuant to which the holder of the Option
concurrently provides irrevocable instructions (A) to such holder's broker or
dealer to effect the immediate sale of the purchased shares and remit to the
Company, out of the sale proceeds available on the settlement date, sufficient
funds to cover the purchase price plus all applicable taxes required to be
withheld by the Company, if any, by reason of such exercise and (B) to the
Company to deliver the certificates for the purchased shares directly to such
broker or dealer in order to complete the sale. The Company shall not be
required to deliver any Shares pursuant to an exercise of an Option until
payment of the full purchase price therefore is received by the Company.

                  (c) PAYMENT SHARES. As used herein, "Payment Shares" means
shares of the Company's voting common stock, that (i) have been owned at least
six months (or such other longer period as determined by the Company) by the
Eligible Director who is purchasing Shares pursuant to the exercise of an
Option, (ii) are, at the time of such transfer, free and clear of any and all
claims, pledges, liens and encumbrances, or any restrictions which would in any
manner restrict the transfer of such shares to or by the Company, and (iii) are
duly endorsed for transfer to the Company.

                  (d) EFFECT OF CHANGE IN CONTROL. In the event of a Change in
Control of the Company (as defined below), all outstanding Options held by each
Eligible Director on the date of such Change in Control shall be immediately
exercisable in full, notwithstanding the vesting schedule of Section 6(a)
hereof.

         For purposes of this Plan, a "Change in Control" shall be deemed to
have occurred if:

                  (i) a sale, transfer, or other disposition of all or
         substantially all of the Company's assets and properties is closed or
         consummated; or

                  (ii) any "person" (as such term is used in Section 13(d) and
         14(d) of the Exchange Act), other than the Company, any subsidiary of
         the Company or any "person" who as of the date this Plan is adopted by
         the Board, is a director or officer of the Company (including
         affiliates of such directors and officers and trusts established by
         such affiliates or persons), is or becomes the "beneficial owner" (as
         defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
         of securities of the Company representing fifty percent (50%) or more
         of the combined voting power of the Company's then outstanding
         securities provided, however, that the following shall not constitute a
         "Change in Control" of the Company:

                           (a) any acquisition directly from the Company
                  (excluding any acquisition resulting from the exercise of a
                  conversion or exchange privilege in respect of outstanding
                  convertible or exchangeable securities);

                           (b) any acquisition by an employee benefit plan (or
                  related trust) sponsored or maintained by the Company or any
                  corporation controlled by the Company; or

                           (c) upon the death of any person who as of the date
                  of this Plan is a director or officer of the Company, the
                  transfer (a) by testamentary disposition or the laws of
                  intestate succession to the estate or the legal beneficiaries
                  or heirs of such person, or (b) by the provisions of any
                  living trust to the named current income beneficiaries thereof
                  of the securities of the Company beneficially owned by such
                  director or officer of the Company; or

                  (iii) during any period of two consecutive years during the
         term of this Plan, individuals who at the beginning of such period
         constitute the Board cease for any reason to constitute at least a

                                      -3-

<PAGE>

         majority thereof, unless the election of each director who was not a
         director at the beginning of such period has been approved in advance
         by directors representing at least two-thirds of the directors then in
         office who were directors at the beginning of the period; or

                  (iv) Company is dissolved or liquidated or a merger,
         reorganization or consolidation involving the Company other than a
         merger, reorganization or consolidation in which holders of the
         Company's voting common stock, immediately prior to such transaction
         own, either directly or indirectly, fifty percent (50%) or more of the
         equity interests or combined voting power of the surviving corporation
         or entity (or its parent company) immediately following such
         transaction.

                  (e) NO RIGHTS AS SHAREHOLDER. No one shall have any rights as
a shareholder of the Company with respect to any Shares underlying an Option
until such time as such shares are issued by the Company pursuant to the valid
exercise of an Option. Nothing in this Plan shall be construed as giving any
Eligible Director any right to continue to remain a member of the Board.

         7. EXPIRATION OF OPTIONS. Except as hereinafter provided, each Option
shall expire on the earlier of (a) the tenth anniversary of the Grant Date of
such Option or (b) the date that the Eligible Director holding such Option
ceases to be a member of the Board; provided, however, that to the extent any
unexpired Options are otherwise vested and exercisable on the date that an
Eligible Director ceases to be a member of the Board for any reason other than
"cause", or death, such Options shall remain exercisable for six months
following the last day of the Eligible Director's Board membership and shall
expire if not exercised within said six-month period. If Board membership ceases
on account of death, all unexpired Options held by the Eligible Director on the
last day of Board membership, which are then vested and exercisable on the date
the Eligible Director ceases to be a member of the Board because of death, shall
remain exercisable for one year following the last day of the Eligible
Director's Board membership and shall expire if not exercised within said
one-year period. All Options held by an Eligible Director whose membership on
the Board ends after the occurrence of "cause" shall expire immediately on the
last date of membership. "Cause", for the purposes of this paragraph 7, means
any (i) act or omission for which indemnification of the Eligible Director is
prohibited by the laws of the jurisdiction of incorporation of the Company, (ii)
conviction of a felony, or (iii) misconduct involving personal profit to the
Eligible Director to the material detriment of the Company or its subsidiaries.

         8. ADJUSTMENT UPON CHANGES IN CAPITALIZATION. If a reorganization,
recapitalization, stock split, stock dividend, combination of shares, merger,
consolidation, rights offering, or any other change in the corporate structure
or shares of voting common stock of the Company occurs, the number and kind of
shares authorized by this Plan, and the number, Option price and kind of shares
covered by the Options granted hereunder, shall be automatically adjusted as
required in order to prevent an unfavorable effect upon the value of the Shares
covered by the then outstanding Options and Shares covered by Options
subsequently granted.

         9. TAX WITHHOLDING. Any exercise of an Option pursuant to this Plan
shall be subject to withholding of state and federal income taxes, FICA tax or
other taxes to the extent required by applicable law.

         10. LAWS AND REGULATIONS.

                  (a) U.S. SECURITIES LAWS. This Plan, the grant and exercise of
Options under this Plan, and the obligation of the Company to sell or deliver
any of its securities (including, without limitation, Options and Shares) under
this Plan shall be subject to all applicable laws, regulations and rules. In the
event that the Shares are not registered under the Securities Act of 1933, as
amended (the "Act"), or any applicable state securities laws prior to the
delivery of such Shares, the Company may require, as a condition to the issuance
thereof, that the persons to whom Shares are to be issued represent and warrant
in writing to the Company that such Shares are being acquired by him or her for
investment for his or her own account and not with a view to, for resale in
connection with, or with an intent of participating directly or indirectly in,
any distribution of such Shares within the meaning of the Act, and a legend to
that effect may be placed on the certificates representing the Shares.

                  (b) LOCAL JURISDICTIONS. The Company may adopt rules and
procedures relating to the operation and administration of this Plan to
accommodate the specific requirements of local laws. The Company may adopt
sub-plans applicable to particular locations.

                                      -4-

<PAGE>

         11. TERMINATION AND AMENDMENT OF THIS PLAN. The Board may at any time
terminate this Plan or may at any time or times amend this Plan or amend any
outstanding Options for the purpose of satisfying the requirements of any
changes in applicable laws or regulations or for any other purpose which at the
time may be permitted by law.

         12. EFFECTIVE DATE. This Plan shall become effective on December 18,
2003, the date of approval by the Board; provided, however, that this Plan shall
be submitted to the Shareholders for approval (or ratification), and if not
approved (or ratified) by the Shareholders within one year from the date of
approval by the Board, this Plan shall be of no force and effect. Options
granted under this Plan before approval of this Plan by the Shareholders shall
be granted subject to such approval (or ratification) and shall not be
exercisable before such approval (or ratification).

         13. GOVERNING LAW. This Plan, and the related option agreements, shall
be governed by and enforced and construed in accordance with the internal
substantive laws (and not the laws of conflicts of laws) of California.

                                      -5-

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