Document:

EXHIBIT
10.27 - THE PEP BOYS ANNUAL INCENTIVE BONUS PLAN (AMENDED AND RESTATED AS
OF   DECEMBER 9, 2003)

THE
PEP BOYS - MANNY, MOE & JACK

ANNUAL INCENTIVE BONUS PLAN

(as amended and restated as of December 9, 2003)

          The
Pep Boys - Manny, Moe & Jack, a Pennsylvania corporation (the “Company”),
established, effective January 29, 1989, an Annual Incentive Bonus Plan for the
benefit of officers of the Company who were eligible to participate as provided
therein.  On March 31, 1992, March 30,
1994, March 31, 1995 and March 31, 1998, the Board of Directors of the Company
(the “Board”) amended the plan in numerous respects.  By action of the Board on December 9, 2003, the plan was further
amended to read in its entirety as hereinafter set forth (the “Plan”).

          1.          Purpose.  The Plan is intended to increase the
profitability of the Company by giving employees of the Company holding
positions at the levels of officer or director (such employees being
hereinafter collectively referred to as the “Eligible Employees”) a financial
stake in the growth and profitability of the Company.  The Plan has the further objective of enhancing the Company’s
compensation packages for Eligible Employees, thus enabling the Company to
attract and retain officers and other key employees of the highest
ability.  The Plan is intended to
provide Eligible Employees with incentive opportunities that:  (a) provide compensation opportunities which
are competitive with other companies of similar size and industry focus; (b)
focus Eligible Employees’ attention on the accomplishment of specific Company
goals; and (c) recognize different levels and types of individual contributions
by providing a portion of the incentive payout for the achievement of
individual objectives.  The Plan is
intended to supplement, not replace, any other bonus paid by the Company to any
of its Eligible Employees and is not intended to preclude the continuation of
such arrangements or the adoption of additional bonus or incentive plans,
programs or contracts.

          2.          Definitions.

                       (a)          “Applicable
Performance Measures” shall mean the Company Performance Measures and/or
the Individual Performance Measures upon which a Participant’s right to receive
a Bonus is based.

                       (b)          “Award
Period” shall mean a measuring period of one Fiscal Year.

                       (c)          “Bonus”
shall mean a cash payment made by the Company to a Participant after an Award
Period, based on performance against specific predetermined performance
objectives for both the Company and the Participant, as calculated in
accordance with the provisions of this Plan document.

                       (d)          “Bonus
Level” shall mean the level at which a Participant shall participate in the
Plan as set forth in Paragraph 4(b) hereof.

                       (e)          “CEO”
shall mean the person elected to the office of Chief Executive Officer of the
Company by the Board of Directors.

                       (f)          “Code”
shall mean the Internal Revenue Code of 1986, as amended.

                       (g)          “Compensation
Committee” shall mean the Compensation Committee of the Board.  The Compensation Committee shall consist of
two or more persons appointed by the Board, each of whom shall be an “outside
director” as defined under Code section 162(m) and related Treasury
regulations.

                       (h)          “Executive
Officer” shall mean an executive officer (within the meaning of the
Securities Exchange Act of 1934, as amended) who is among the top five most
highly compensated employees of the Company at the beginning of any Award
Period.

                       (i)          “Fiscal
Year” shall mean the Fiscal Year of the Company which ends on the Saturday
nearest January 31 in each year.

                       (j)          “Participant”
shall have the meaning set forth in Paragraph 4 hereof.

                       (k)          “President”
shall mean the person elected to the office of President, Chief Operating
Officer or equivalent of the Company by the Board of Directors.

                       (l)          “Salary”
shall mean the base salary of a Participant for a Fiscal Year.  For purposes of the foregoing, base salary
shall include (i) amounts which the Participant elects to forego to provide
benefits under a plan which satisfies the provisions of Section 401(k) or
Section 125 of the Internal Revenue Code and (ii) amounts which the Participant
elects to defer under a deferred compensation plan or program, other than an
equity-based deferred compensation plan, adopted by the Company.  Base salary shall not include any amount
attributable to any 

bonus paid or accrued
(including any bonus deferred under a deferred compensation plan or program
adopted by the Company), whether or not pursuant to a plan or program.

          3.          Administration,
Amendment and Termination.

                       (a)          The
Plan shall be administered by the Compensation Committee acting by a majority
vote of its members.  The Compensation
Committee shall have the power and authority to take all actions and make all
determinations which it deems necessary or desirable to effectuate, administer
or interpret the Plan.  The Company’s
adoption and continuation of the Plan is voluntary.  The Compensation Committee shall have the power and authority to
extend, amend, modify or terminate the Plan at any time; provided, however,
that the Compensation Committee shall not have the power to amend or modify any
provision of the Plan without stockholder approval in a manner that would
affect the terms of the Plan applicable to Executive Officers, if stockholder
approval would be required under Code section 162(m).  The Compensation Committee’s authority to extend, amend or modify
the Plan shall include, without limitation, the right to change Award Periods,
to determine the time or times of paying Bonuses, to establish and approve
Company and individual performance goals and the relative weightings of the
goals, and to establish such other measures as may be necessary to meet the
objectives of the Plan.  In particular,
but without limitation of the foregoing, the Compensation Committee shall have
the power and authority to make any amendments or modifications to the Plan
which may be necessary for the Plan to maintain compliance with Section 162(m)
of the Internal Revenue Code of 1986, as amended.  An action to terminate or to substantively amend or modify the
Plan shall become effective immediately upon its adoption or on such date as
specified by the Compensation Committee, but not with respect to any Fiscal
Year prior to the Fiscal Year in which the Compensation Committee so acts.

                       (b)          All
actions taken and all determinations made by the Compensation Committee in
accordance with the power and authority conferred upon the Compensation
Committee under Paragraph 3(a) above shall be final, binding and conclusive on
all parties, including the Company and all Participants.

          4.          Participants.

                       (a)          Each
Eligible Employee shall be entitled to participate in the Plan for each Fiscal
Year or portion thereof in which such employee holds a position at the level of
officer or director of the Company (the “Participants”, or individually, “Participant”),
unless excluded from participation by the Compensation Committee or as provided
by Paragraph 11 hereof.  With respect to
an individual who becomes an Eligible Employee during an Award Period, such
individual shall become a Participant, unless excluded from participation by
the Compensation Committee or as provided in Paragraph 11 hereof, and shall be
eligible to receive an amount equal to the amount which would have been paid if
the Participant had been an Eligible Employee for the entire Award Period,
multiplied by a fraction, the numerator of which is the number of days during
the Award Period that the Participant was an Eligible Employee of the Company
and the denominator of which is the number of days in the Award Period.  

                       (b)          Each
Participant shall participate in the Plan and earn Bonuses at one of five Bonus
Levels, as set forth below:

	
   
	
  Bonus Level
	
   
	
  Participant
  Group

	
   
	
  

  	
   
	
  

  
	
   
	
  Tier I
	
   
	
  CEO

	
   
	
  Tier II
	
   
	
  President

	
   
	
  Tier III
	
   
	
  Executive Vice Presidents

	
   
	
  Tier IV
	
   
	
  Senior Vice Presidents

	
   
	
  Tier V
	
   
	
  Vice Presidents

With respect to any
Participant who was employed at more than one of the Bonus Levels during an
Award Period, the total Bonus amount for such Award Period for which such
Participant shall be eligible shall be the sum of prorated Bonus payments
corresponding to the applicable Bonus Levels. 
Each such prorated Bonus payment shall equal the amount which would have
been paid if the Participant had been an Eligible Employee at the applicable
Bonus Level for the entire Award Period, multiplied by a fraction, the
numerator of which is the number of days 

during the Award Period that
the Participant was employed at such Bonus Level and the denominator of which
is the number of days in the Award Period.

          5.          Company
Performance Measures.  

                       (a)          Under
the Plan, for each Award Period the Compensation Committee will establish
minimum, target and maximum performance goals for the Company using one or more
of the following business criteria (the “Company Performance Measures”):  (1) return on total stockholder equity; (2)
earnings per share of Common Stock; (3) net income (before or after taxes); (4)
earnings before interest, taxes, depreciation and amortization; (5) sales or
revenue targets; (6) return on assets, capital or investment; (7) cash flow:
(8) market share; (9) cost reduction goals; (10) budget comparisons; (11)
implementation or completion of 
projects or processes strategic or critical to the Corporation’s
business operations; (12) measures of customer satisfaction; and (13) any
combination of, or a specified increase in, any of the foregoing.  Such performance goals may be based upon the
attainment of specified levels of the Corporation’s performance under one or
more of the measures described above relative to the performance of other
entities and may also be based on the performance of any of the Corporation’s
business units or divisions or any parent or subsidiary.  In addition, the Compensation Committee will
establish relative weightings for the respective Company Performance Measures
being used.  

                       (b)          To
the extent applicable, the Compensation Committee, in determining whether and to
what extent a Company Performance Measure has been achieved, shall use the
information set forth in the Company’s audited financial statements.

          6.          Individual
Performance Measures.  Under the
Plan, for each Award Period the Company will establish individual or “small
team” performance goals for each Participant (the “Individual Performance
Measures”); provided, however, that Individual Performance Measures shall not
apply to a Bonus designated as “qualified performance-based compensation” under
Code section 162(m). 

          7.          Establishment
of Plan Components.

                       (a)          During
the first ninety (90) days of each Award Period, the Compensation Committee,
after consultation with the CEO, will establish and approve the following
components of the Plan for the Award Period: 
(i) the Participants; (ii) the minimum, target and maximum Company
performance levels for each Company Performance Measure being used; (iii) the
relative weightings of the respective Company Performance Measures being used;
(iv) the target, minimum and maximum Bonus amounts (each expressed as a
percentage of salary) at each Bonus Level; and (v) the percentages of the Bonus
amounts at each of the Bonus Levels which are attributable to the Company’s
performance and the individual Participant’s performance, respectively, during
the Award Period.  The Compensation
Committee shall set forth the decisions reached on each of the items in this
Paragraph 7(a) in its minutes. 

                       (b)          During
the first ninety (90) days of each Award Period, the Company will prepare, and
the Compensation Committee will review, approve and set forth in its minutes,
the following information for the Award Period, as determined by the
Compensation Committee:  (i) the Bonus
Levels; (ii) the Participants in each Bonus Level (classified by title of position
held); (iii) the target Bonus amount for each Bonus Level (expressed as a
percentage of salary); (iv) the percentages of the Bonus amounts at each of the
Bonus Levels which are attributable to the Company’s performance and the
individual Participant’s performance, respectively, during the Award Period;
(v) the Company Performance Measures for the current Award Period; (vi) the
relative weightings of each such Company Performance Measure; and (vii) the
minimum, target and maximum performance levels for each such Company
Performance Measure.

          8.          Determination
of Bonus.  Within sixty (60) days
after the end of the Award Period, actual performance will be compared to the
predetermined performance levels for both Company Performance Measures and
Individual Performance Measures, and the resulting actual Bonus amounts for
Participants will be reviewed by the CEO and submitted to the Compensation
Committee for final approval.  Nothing
in this Paragraph 8 shall be used to create any presumption that Bonuses under
the Plan are the exclusive means of providing incentive compensation for
Eligible Employees, it being expressly understood and agreed that the
Compensation Committee has the authority to recommend to the Board of Directors
payments to any of the Eligible Employees, in cash or otherwise, based on
performance measures or otherwise, other than Bonuses under this Plan to
Participants.

          9.          Special
Rules for Executive Officers

                       (a)          The
maximum Bonus payable to an Executive Officer for any Fiscal Year shall not
exceed three million dollars ($3,000,000).

                       (b)          Notwithstanding
anything to the contrary set forth in this Plan, the Compensation Committee
shall establish the Applicable Performance Measures for Executive Officers no
later than the earliest to occur of (i) the ninetieth (90th) day
following the beginning of the Award Period or (ii) the date on which 25% of
the Award Period has been completed, or (iii) such other date as may be
required under applicable regulations under Code section 162(m).  Such Applicable Performance Measures shall
be set forth in the minutes of the Compensation Committee.

                       (c)          Unless
the Compensation Committee determines otherwise, any Bonus payable to an
Executive Officer shall be based on Applicable Performance Measures that
satisfy the requirements for “qualified performance-based compensation” under
Code section 162(m), including the requirement that the achievement of the
Applicable Performance Measures be substantially uncertain at the time they are
established and that the Applicable Performance Measures be established in such
a way that a third party with knowledge of the relevant facts could determine
whether and to what extent the Applicable Performance Measures have been
met.  To the extent that any Bonus is
designated as “qualified performance-based compensation” under Code section
162(m), no such Bonus may be made as an alternative to any other award that is
not designated as “qualified performance based compensation” but instead must
be separate and apart from all other awards made.  To the extent a Bonus is designated as “qualified
performance-based compensation,” the Compensation Committee is authorized to
reduce such Bonus for any Award Period based upon its assessment of personal
performance or other factors, but may not increase the Bonus that would
otherwise be payable to the Participant. 
In no event shall a reduction to one Participant’s Bonus result in an
increase to a Bonus designated as “qualified performance based compensation”
under Code section 162(m).

                       (d)          If
a Bonus to which an Executive Officer may become entitled is designated as “qualified
performance-based compensation” under Code section 162(m), the Compensation
Committee shall certify in writing prior to payment of such Bonus that the
Applicable Performance Measures were in fact achieved.  Any such certification by the Compensation
Committee shall be set forth in its minutes.

          10.        Payment
of Bonuses.   Bonuses shall be paid in
cash or otherwise deferred by the Participant (as permitted by the Company)
within ninety (90) days after the end of the Award Period to which such Bonus
relates.

          10.        Termination
of Employment.

                       (a)          If
a Participant’s employment with the Company has terminated during an Award
Period, for any reason whatsoever, with or without cause, then the Participant
may not receive a Bonus for such Award Period, except as otherwise provided in
Paragraph 11(b) below or in a separate written agreement between the Company
and the Participant.

                       (b)          If
during an Award Period, a Participant dies; becomes disabled; or retires on or
after his Early Retirement Date (as defined in the Company’s defined benefit
pension plan), such Participant (or the Participant’s designated beneficiary)
shall be paid, within ninety (90) days after the end of the Award Period, an
amount equal to the amount which would have been paid if the Participant had
been employed by the Company throughout the entire Award Period, multiplied by
a fraction, the numerator of which is the number of days during the Award
Period that the Participant was employed by the Company and the denominator of
which is the number of days in the Award Period.

          11.        Assignment
and Alienation of Benefits.

                       (a)          To
the maximum extent permitted by law, a Participant’s right or benefits under
this Plan shall not be subject to anticipation, alienation, sale, assignment,
pledge, encumbrance or charge, and any attempt to anticipate, alienate, sell,
assign, pledge, encumber or charge the same shall be void.  No right or benefit hereunder shall in any
manner be liable for or subject to the debts, contracts, liabilities or torts
of the person entitled to such benefit.

                       (b)          If
any Participant becomes bankrupt or attempts to anticipate, alienate, sell,
assign, pledge, encumber, or charge any rights to a benefit hereunder, then
such right or benefit, in the discretion of the Compensation Committee, may be
terminated.  In such event, the Company
may hold or apply the same or any part thereof for the benefit of the
Participant, his or her spouse, children or dependents, or any of them, in such
manner and portion as the Compensation Committee may deem proper.

       12.          Miscellaneous.

                       (a)          The
establishment of this Plan shall not be construed as granting any Participant
the right to remain in the employ of the Company, nor shall this Plan be
construed as limiting the right of the Company to discharge a Participant from
employment at any time for any reason whatsoever, with or without cause.

                       (b)          The
Company may withhold from any amounts payable under the Plan such Federal,
state or local taxes as may be required to be withheld pursuant to any applicable
law or regulation.

                       (c)          Notwithstanding
any provision of the Plan to the contrary, Bonuses to Executive Officers, if
made, will be made contingent upon, and subject to, stockholder approval of the
Plan at the 2004 Annual Stockholders’ Meeting.

                       (d)          It
is the intent of the Company that the Plan and any Bonuses made under the Plan
to Executive Officers comply with the applicable provisions of Code section
162(m).  To the extent that any legal
requirement of Code section 162(m) as set forth in the Plan ceases to be
required under Code section 162(m), that Plan provision shall cease to apply.

                       (e)          The
paragraph headings in this Plan are for convenience only; they form no part of
the Plan and shall not affect its interpretation.

                       (f)          This
Plan shall be governed by and construed in accordance with the laws of the
Commonwealth of Pennsylvania.

	
  As adopted by the Board on
	
  THE PEP BOYS - MANNY, MOE & JACK

	
  December 9, 2003.
	
   

	
   
	
   

	
   
	
  By: 
	
   /s/ Lawrence N. Stevenson

	
   
	
   
	
  

  	
   

	
   
	
   
	
       Chief Executive
  OfficerExhibit 10.7

AMENDMENT NO. 1 TO

ERP SOFTWARE SHARING AGREEMENT

          This
AMENDMENT NO. 1 (this “Amendment”) amends the ERP Software Sharing Agreement,
dated as of January 31, 2002 (the “Agreement”), by and among (A) Verint Systems Ltd. (formerly known as
Comverse Infosys Ltd.), a subsidiary of Verint Systems Inc. incorporated under
the laws of the State of Israel with its offices at 23 Habarzel St., Tel-Aviv,
Israel (“Verint”) and (B) Comverse Ltd.,
a subsidiary of Comverse Technology, Inc. incorporated under the laws of the
State of Israel, with its principal address at 29 Habarzel Street, Tel Aviv,
Israel (“Comverse”).  Capitalized terms
not otherwise defined herein have the respective meanings ascribed thereto in
the Agreement.  Verint and Comverse, as
the parties hereto, desire to add certain terms and conditions to the
Agreement, and the terms and conditions of this Amendment form a part thereof
and should be read in conjunction therewith.

          WHEREAS, in exchange for good and valuable
consideration, the receipt of which is acknowledged hereby Comverse permits the
use of the Software by Verint, its parent Verint Systems Inc. and the other
wholly owned subsidiaries of Verint Systems Inc.;

          NOW,
THEREFORE, the parties hereto hereby agree as follows:     

	
  1.
	
   
	
  Insert the
  following sentence as the last sentence of Section 1 of the Agreement: “As
  promptly as reasonably practicable but in no event no later than
  September  30, 2003, subject to
  technical limitations out of Comverse’ control after the expenditure of
  commercially reasonable efforts, Comverse shall cause the version of the
  Software it is providing to Verint pursuant to the Agreement to be upgraded
  to version 11i (the “Updated Version”), including any related software
  designed to operate with the Updated Version (the “Related Software”).  In addition, Comverse shall ensure that
  the License grants rights to use the Updated Version and the Related Software
  for the same number of modules and users currently existing for Version 11.3.
  In consideration for Comverse’s covenants related to the Updated Version and
  Related Software, Verint shall pay to Comverse a single payment of $175,000
  (one hundred and seventy five thousand USD) pursuant to an invoice to be
  issued from Comverse no earlier than December 31, 2003, that shall be paid by
  Verint  paid within forty five days of
  receipt of such invoice.”

	
   
	
   
	
   

	
  2.
	
   
	
  The first
  sentence of Section 2 of the Agreement, which reads, 

	
   
	
   

	
   
	
  “In
  consideration of the services set forth in Section 1 above, Infosys shall pay
  Comverse a quarterly fee of $25,000 (twenty five thousand USD)(the “Fees”),
  plus VAT, in respect of each fiscal quarter or part thereof during the term
  of this Agreement,” shall be deleted in its entirety and replaced with the following sentence: 

	
   
	
  

	
   
	
  “In
  consideration of the services set forth in Section 1 above and in addition to
  the payment of $175,000 set forth in Section 1, Verint shall pay Comverse as
  follows:  a quarterly fee of $28,000
  (twenty eight thousand USD) for each and every fiscal quarter through and
  including the fiscal quarter ending on January 31, 2004; For the avoidance of
  doubt, the quarterly fee of $28,000 (twenty eight thousand USD) shall be
  solely for each and every fiscal quarter commencing on the first fiscal
  quarter of 2003 (fiscal quarter ending on April 30, 2003) through and
  including the fiscal quarter ending on January 31, 2004.a quarterly fee of
  $35,500 (thirty five thousand five hundred USD) for each fiscal quarter for
  the quarters ending on  April 30,
  2004, July 31, 2004, October 31, 2004 and January 31, 2005; a quarterly fee
  of $36,750 (thirty six thousand seven hundred fifty USD) for each fiscal
  quarter for the quarters ending on 
  April 30, 2005, July 31, 2005, October 31, 2005 and January 31, 2006;
  and a quarterly fee of $38,000 (thirty eight thousand USD) for each fiscal
  quarter for the quarters ending on 
  April 30, 2006, July 31, 2006, October 31, 2006 and January 31, 2007
  (the “Fees”). VAT shall be added by Verint to each and every payment of any
  fee specified in the Agreement and this Amendment 

	
   
	
   

	
  3.
	
   
	
  The first
  sentence of Section 3 of the
  Agreement, which reads, 

	
   
	
   

	
   
	
  “Subject to Section 6 hereof, this Agreement shall be
  effective as from February 1, 2002, and will be valid for a period of at
  least two years thereafter (the “Initial Term”),” 

	
   
	
   

	
   
	
  shall be
  deleted in its entirety and replaced with the following sentence: 

	
   
	
   

	
   
	
  “Subject to
  Section 6 hereof, this Agreement shall be effective as from February 1, 2002,
  and will be valid for a period ending no earlier than January 31, 2007 (the
  “Initial Term”).”

	
   
	
   

	
  4.
	
   
	
  The terms of
  certain service levels set forth in Exhibit A are hereby annexed hereto and
  made a part hereof.

	
   
	
   

	
  5.
	
   
	
  Except as
  specifically amended hereby, all terms, provisions and conditions of the
  Agreement shall remain in full force and effect, and such terms, provisions
  and conditions shall govern this Amendment.

	
   
	
  COMVERSE LTD.
	
  VERINT SYSTEMS LTD.

	
   
	
   
	
   

	
   
	
   
	
   

	
   
	
  

  	
   
	
  

  	
   

	
   
	
  Name:
	
  Name:  

	
   
	
  Title:
	
  Title:

	
   
	
  Date:
	
  Date:

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