<SUBMISSION>
<ACCESSION-NUMBER>0001004980-05-000120
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20050425
<ITEMS>1.01
<ITEMS>8.01
<ITEMS>9.01
<FILING-DATE>20050425
<DATE-OF-FILING-DATE-CHANGE>20050425
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>PG&E CORP
<CIK>0001004980
<ASSIGNED-SIC>4931
<IRS-NUMBER>943234914
<STATE-OF-INCORPORATION>CA
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-12609
<FILM-NUMBER>05770990
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>ONE MARKET SPEAR TOWER
<STREET2>SUITE 2400
<CITY>SAN FRANCISCO
<STATE>CA
<ZIP>94105
<PHONE>4152677000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>ONE MARKET SPEAR TOWER
<STREET2>SUITE 2400
<CITY>SAN FRANCISCO
<STATE>CA
<ZIP>94105
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>PG&E PARENT CO INC
<DATE-CHANGED>19951214
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>final042505.htm
<DESCRIPTION>FORM 8-K DATED APRIL 25, 2005
<TEXT>
<html>
<head>
<title>Form 8-K dated 4/25/05</title>
</head>
<body link="blue" vlink="purple">
<div>
<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td colspan="4" valign="top">
<p align="center"><b>UNITED STATES</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>SECURITIES AND EXCHANGE COMMISSION</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>Washington, D.C.&nbsp; 20549</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>FORM 8-K</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>CURRENT REPORT</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>Date of Report: April 25, 2005</b></p>

<p align="center">
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>PG&amp;E CORPORATION</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>(Exact Name of Registrant as specified in
Charter)</b></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><b><u>California</u></b></p>
</td>
<td valign="top">
<p align="center"><b><u>1-2609</u></b></p>
</td>
<td colspan="2" valign="top">
<p align="center"><b><u>94-323914</u></b></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center">(State or other jurisdiction of
incorporation)</p>
</td>
<td valign="top">
<p align="center"><br />
 (Commission File Number)</p>
</td>
<td colspan="2" valign="top">
<p align="center">(IRS Employer<br />
 Identification No.)</p>
</td>
</tr>

<tr>
<td colspan="3" valign="top">
<p align="center"><b><u>One Market, Spear Tower, Suite 2400, San
Francisco, CA</u></b></p>
</td>
<td valign="top">
<p align="center"><b><u>94105</u></b></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top">
<p align="center">(Address of principal executive offices)</p>
</td>
<td valign="top">
<p align="center">(Zip code)</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b><u>415-267-7000</u></b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>(Registrant&rsquo;s Telephone Number,
Including Area Code)</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b><u>N/A</u></b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>(Former Name or Former Address, if Changed
Since Last Report)</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>PACIFIC GAS AND ELECTRIC COMPANY</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>(Exact Name of Registrant as specified in
Charter)</b></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><b><u>California</u></b></p>
</td>
<td valign="top">
<p align="center"><b><u>1-2348</u></b></p>
</td>
<td colspan="2" valign="top">
<p align="center"><b><u>94-0742640</u></b></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center">(State or other jurisdiction of
incorporation)</p>
</td>
<td valign="top">
<p align="center"><br />
 (Commission File Number)</p>
</td>
<td colspan="2" valign="top">
<p align="center">(IRS Employer<br />
 Identification No.)</p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top"></td>
<td colspan="2" valign="top"></td>
</tr>

<tr>
<td colspan="3" valign="top">
<p align="center"><b><u>77 Beale Street, P. O. Box 770000, San
Francisco, California</u></b></p>
</td>
<td valign="top">
<p align="center"><b><u>94177</u></b></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top">
<p align="center">(Address of principal executive offices)</p>
</td>
<td valign="top">
<p align="center">(Zip code)</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b><u>(415) 973-7000</u></b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>(Registrant&rsquo;s Telephone Number,
Including Area Code)</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b><u>N/A</u></b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>(Former Name or Former Address, if Changed
Since Last Report)</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2.
below):</p>
</td>
</tr>
</table>

<p>&nbsp;&nbsp;&nbsp;&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="624">
<tr>
<td valign="top">
<p>[&nbsp;]</p>
</td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)</p>
</td>
</tr>

<tr>
<td valign="top">
<p>[&nbsp;]</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>Soliciting Material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)</p>
</td>
</tr>

<tr>
<td valign="top">
<p>[&nbsp;]</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act<br />
 (17 CFR 240.14d-2(b)</p>
</td>
</tr>

<tr>
<td valign="top">
<p>[&nbsp;]</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act<br />
 (17 CFR 240.13e-4(c))</p>
</td>
</tr>
</table>

<hr>

<p><b>Item 1.01 &ndash; Entry Into a Material Definitive
Agreement</b></p>

<p>PG&amp;E Corporation 2006 Long-Term Incentive Plan</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the annual shareholders meeting held on April 20, 2005, PG&amp;E
Corporation&rsquo;s shareholders approved the PG&amp;E Corporation
2006 Long -Term Incentive Plan (2006 LTIP). The 2006 LTIP will
replace the current PG&amp;E Corporation Long-Term Incentive
Program, which will expire on December 31, 2005.&nbsp; No more than
500,000 shares of PG&amp;E Corporation common stock will be granted
under the current PG&amp;E Corporation Long-Term Incentive Program
during the period April 20, 2005, through December 31, 2005.&nbsp;
The 2006 LTIP will become effective as of January 1, 2006, and will
terminate on December 31, 2015, unless it is terminated sooner
according to the terms of the 2006 LTIP.&nbsp;</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
purpose of the 2006 LTIP is to advance the interests of PG&amp;E
Corporation and its shareholders by providing key management
employees, non-employee directors, and other eligible participants
with stock-based financial incentives to align participants&rsquo;
interests with the interests of PG&amp;E Corporation&rsquo;s
shareholders in the long-term success of PG&amp;E Corporation. All
officers and employees of PG&amp;E Corporation, its subsidiaries,
and affiliates are eligible to participate in the 2006 LTIP.&nbsp;
Non-employee directors of PG&amp;E Corporation are eligible to
receive formula-based awards. Under certain circumstances,
prospective employees and consultants are also eligible for
awards.</p>

<p></p>

<p>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
2006 LTIP permits the award of various forms of incentive awards,
including stock options, stock appreciation rights (SARs),
restricted stock awards, restricted stock units, performance
shares, performance units, deferred compensation awards, and other
stock-based awards. The PG&amp;E Corporation Board of Directors has
delegated to the Nominating, Compensation and Governance Committee
(Committee) the authority to determine the type of incentive award,
as well as the terms and conditions of the award, to be granted to
officers of PG&amp;E Corporation and its subsidiaries.&nbsp; The
Board of Directors also has delegated to the Chief Executive
Officer of PG&amp;E Corporation the authority to make awards to
certain other eligible participants within the guidelines adopted
by the Committee.&nbsp; Non-employee directors of PG&amp;E
Corporation are eligible to receive non-discretionary formula-based
incentive awards as set forth in the 2006 LTIP.&nbsp; Specific
awards will be reflected in an agreement between PG&amp;E
Corporation and the participant.</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
maximum of 12,000,000 shares of PG&amp;E Corporation common stock
(subject to adjustment for changes in capital structure, stock
dividends, or other similar events) will be reserved for use under
the 2006 LTIP.&nbsp; Shares of PG&amp;E Corporation&rsquo;s common
stock covered by incentive awards previously granted under the 2006
LTIP may be reused or added back to the 2006 LTIP under certain
circumstances and to the extent permitted by applicable law.&nbsp;
In addition, if a participant uses shares to pay all or part of the
exercise price when exercising a stock option, or if a participant
uses the net exercise method, only the net number of shares will be
considered to have been issued.&nbsp; The 2006 LTIP also contains
other limits with respect to the terms of different types of
incentive awards and with respect to the number of shares subject
to awards that can be granted to an employee during any fiscal
year.&nbsp;</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
2006 LTIP is described in detail in PG&amp;E Corporation&rsquo;s
and Pacific Gas and Electric Company&rsquo;s 2005 joint proxy
statement filed with the Securities and Exchange Commission in
connection with the joint annual meeting of shareholders held on
April 20, 2005.&nbsp; The 2006 LTIP also is attached to this report
as Exhibit 99.&nbsp;</p>

<p></p>

<p>Bond Indenture</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April 22, 2005, the indenture governing Pacific Gas and Electric
Company&rsquo;s (Utility) First Mortgage Bonds was amended and
restated as described under Item 8.01, Other Events&mdash;First
Mortgage Bonds.</p>

<p></p>

<p><b>Item 8.01 - Other Events</b></p>

<p><b></b></p>

<p>First Mortgage Bonds</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In March 2004, the Utility issued $6.7 billion aggregate principal
amount of First Mortgage Bonds secured by a lien on substantially
all of the Utility&rsquo;s real property and certain tangible
personal property related to the Utility&rsquo;s facilities.&nbsp;
First Mortgage Bonds in the aggregate amount of $2.5 billion also
were used to secure the Utility's obligations under various
agreements.&nbsp; The governing indenture provided that the lien
could be released when, among other conditions, Moody's Investors
Service (Moody&rsquo;s) and Standard &amp; Poor&rsquo;s Rating
Service (S&amp;P) provided written evidence that the ratings on the
Utility's long-term unsecured debt obligations immediately after
the lien was released would be at least equal to the initial
ratings on the First Mortgage Bonds (BBB by S&amp;P and Baa2 by
Moody&rsquo;s).&nbsp; Moody&rsquo;s and S&amp;P have confirmed that
the bonds would be rated BBB by S&amp;P and Baa1 by Moody&rsquo;s
(as increased by Moody&rsquo;s from Baa2 on March 3, 2005) after
release of the lien.&nbsp; On April 22, 2005, the Utility and The
Bank of New York Trust Company, N.A., the successor to BNY Western
Trust Company, as trustee, amended and restated the indenture to
eliminate the provisions related to the lien of the mortgage.&nbsp;
There is no longer any collateral securing the bonds and the bonds
have become the Utility's unsecured general obligations, ranking
equally with the Utility's other unsecured debt.&nbsp; The Utility
has agreed that it will not incur secured debt except for (1) debt
secured by specified liens, and (2) secured debt in an amount not
exceeding 10% of the Utility's tangible net assets, as defined in
the indenture.</p>

<p>In addition, the designations of the remaining $5.3 billion in
aggregate principal amount of First Mortgage Bonds have been
changed as follows:&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="704">
<tr>
<td valign="top" width="313">
<p><u>First Mortgage Bonds</u> </p>
</td>
<td valign="top" width="23">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top" width="235">
<p><u>Redesignated As</u></p>
</td>
<td valign="top" width="20">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top" width="103">
<p><u>Amount</u></p>
</td>
</tr>

<tr>
<td valign="top" width="313">
<p>3.6% First Mortgage Bonds, due 2009</p>
</td>
<td valign="top" width="23"></td>
<td valign="top" width="235">
<p>3.6% Senior Notes, due 2009</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="103">
<p>$600 million</p>
</td>
</tr>

<tr>
<td valign="top" width="313">
<p>4.2% First Mortgage Bonds, due 2011</p>
</td>
<td valign="top" width="23"></td>
<td valign="top" width="235">
<p>4.2% Senior Notes, due 2011</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="103">
<p>$500 million</p>
</td>
</tr>

<tr>
<td valign="top" width="313">
<p>4.8% First Mortgage Bonds, due 2014</p>
</td>
<td valign="top" width="23"></td>
<td valign="top" width="235">
<p>4.8% Senior Notes, due 2014</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="103">
<p>$1 billion</p>
</td>
</tr>

<tr>
<td valign="top" width="313">
<p>6.05% First Mortgage Bonds, due 2034</p>
</td>
<td valign="top" width="23"></td>
<td valign="top" width="235">
<p>6.05% Senior Notes, due 2034</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="103">
<p>$3 billion</p>
</td>
</tr>

<tr>
<td valign="top" width="313">
<p>Floating Rate First Mortgage Bonds, due
2006&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top" width="23"></td>
<td valign="top" width="235">
<p>Floating Rate Senior Notes, due 2006&nbsp;</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="103">
<p>$200 million</p>
</td>
</tr>
</table>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Committee on Uniform Securities Identification Procedures (CUSIP)
numbers of these instruments remain the same. Certain other bonds
outstanding under the indenture, which had been used to support the
Utility&rsquo;s repayment obligations under credit facilities and
certain of the pollution control loan agreements, have been
cancelled.</p>

<p>Tax-Exempt Financing</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April 20, 2005, the Utility repaid $454 million under certain
reimbursement obligations that the Utility entered into in April
2004 when its plan of reorganization under Chapter 11 of the U.S.
Bankruptcy Code became effective.&nbsp; These reimbursement
obligations replaced the Utility&rsquo;s obligation to certain
issuers of letters of credit whose letters of credit were drawn
upon during the Chapter 11 proceeding in connection with the&nbsp;
redemption of certain pollution control bonds that had been issued
for the benefit of the Utility.&nbsp; The Utility drew $454 million
under its $1 billion credit agreement to repay the reimbursement
obligations.&nbsp; The Utility anticipates that this draw will be
repaid with the proceeds of a future tax-exempt financing through
the issuance of bonds by a state agency for the benefit of the
Utility.&nbsp; The Utility passes on to its customers interest cost
savings attributable to the lower interest rates associated with
such tax-exempt financing.&nbsp;</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April 22, 2005, the Utility entered into an amendment of four
reimbursement agreements totaling $620 million related to letters
of credit aggregating $614 million that had been issued to support
certain pollution control bonds issued on behalf of the
Utility.&nbsp; In addition to reducing pricing and generally
conforming the covenants and events of default to those in the $1
billion working capital facility, the term of the amended
agreements has been extended from three years to five years, until
April 22, 2010.</p>

<p>Redemption of Preferred Stock</p>

<p align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April 20, 2005, the Utility&rsquo;s Board of Directors authorized
the redemption of all of the outstanding shares of the
Utility&rsquo;s 6.57% Redeemable First Preferred Stock, CUSIP No.
694308 69 3 (6.57% Preferred Stock) and 6.30% Redeemable First
Preferred Stock, CUSIP No. 694308 65 1 (6.30% Preferred Stock),
totaling approximately $120 million aggregate par value.&nbsp; Both
issues will be redeemed on May 31, 2005.&nbsp; In addition to the
$25 per share redemption price, holders of the 6.57% Preferred
Stock and the 6.30% Preferred Stock will be entitled to receive an
amount equal to all accumulated and unpaid dividends on such shares
to and including May 31, 2005.</p>

<p align="left"><b></b></p>

<p align="left"><b>Item 9.01 - Financial Statements and
Exhibits</b></p>

<p></p>

<p>
Exhibits<br>
</p>

<p></p>

<p></p>

<p>Exhibit 99.&nbsp; PG&amp;E Corporation 2006 Long-Term Incentive
Plan</p>

<p></p>

<br clear="all" />


<div align="center">
<hr size="2" width="100%" align="center" />
</div>

<table border="0" cellspacing="0" cellpadding="0" width="624">
<tr>
<td valign="top">
<p align="center">SIGNATURE</p>
</td>
</tr>

<tr>
<td valign="top">
<p>&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top">
<p>Pursuant to the requirements of the Securities Exchange Act of
1934, the registrants have duly caused this report to be signed on
their behalf by the undersigned thereunto duly authorized.</p>

<p>&nbsp;</p>
</td>
</tr>
</table>

<p></p>

<p></p>

<table border="0" cellspacing="0" cellpadding="0" width="624">
<tr>
<td valign="top"></td>
<td colspan="2" valign="top">
<p>PG&amp;E CORPORATION</p>
</td>
</tr>

<tr>
<td valign="top">
<p>&nbsp;</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>By:&nbsp;&nbsp;</p>
</td>
<td valign="top">
<div>
<p><u>CHRISTOPHER P. JOHNS&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
</div>
</td>
</tr>

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>Christopher P. Johns<br />
 Senior Vice President, Chief<br />
 Financial Officer and Controller<br />
<br />
 </p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="2" valign="top">
<p>PACIFIC GAS AND ELECTRIC COMPANY</p>
</td>
</tr>

<tr>
<td valign="top">
<p>&nbsp;</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>By:&nbsp;&nbsp;</p>
</td>
<td valign="top">
<div>
<p><u>DINYAR B. MISTRY&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
</div>
</td>
</tr>

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>Dinyar B. Mistry<br />
 Vice President and Controller</p>
</td>
</tr>
</table>

<p>Dated:&nbsp; April 25, 2005</p>

<br clear="all" />


<hr>


<p align="center"><b>EXHIBIT INDEX</b></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><u>No.</u>&nbsp;</p>
</td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p><u>Description of Exhibit</u></p>
</td>
</tr>

<tr>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p>99</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>PG&amp;E Corporation 2006 Long-Term Incentive Plan</p>
</td>
</tr>
</table>
</div>
</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>exhibit99.htm
<DESCRIPTION>EXHIBIT 99 -LTIP
<TEXT>
<html>
<head>
<title>LTIP Exhibit 99 4-25-05 8K</title>
</head>
<body link="blue" vlink="purple">
<div>
<p align="center"><b></b></p>

<p align="center"><b></b></p>

<p align="center"><b></b></p>

<p align="center"><b></b></p>

<p align="center"><b></b></p>

<p align="center"><b>PG&amp;E Corporation</b></p>

<p align="center"><b></b></p>

<p align="center"><b>2006 Long-Term Incentive Plan</b></p>

<p align="center"><b></b></p>

<p align="center"><b></b></p>

<p align="center"><b></b></p>

<p align="center"><b></b></p>

<div align="center"><b></b>
<hr size="2" width="100%" align="center" />
</div>

<p align="center"><b></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="642">
<tr>
<td valign="top" width="28"></td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p align="center">TABLE OF CONTENTS</p>
</td>
<td valign="top" width="37"></td>
</tr>

<tr>
<td valign="top" width="28"></td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top" width="37"></td>
</tr>

<tr>
<td valign="top" width="28"></td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right"><u>Page</u></p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>1.</p>
</td>
<td valign="top" width="20">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top" width="549">
<p>Establishment, Purpose and Term of
Plan..........................................................................</p>
</td>
<td valign="top" width="37">
<p align="right">1</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>1.1</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>
Establishment...................................................................................................................</p>
</td>
<td valign="top" width="37">
<p align="right">1</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>1.2</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>
Purpose...........................................................................................................................</p>
</td>
<td valign="top" width="37">
<p align="right">1</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>1.3</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Term of
Plan...................................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">1</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>2.</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Definitions and
Construction............................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">1</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>2.1</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>
Definitions......................................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">1</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>2.2</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>
Construction...................................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">7</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>3.</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>
Administration................................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">7</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>3.1</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Administration by the
Committee.....................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">7</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>3.2</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Authority of
Officers.......................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">7</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>3.3</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Administration with Respect to
Insiders...........................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">8</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>3.4</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Committee Complying with
Section&nbsp;162(m).....................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">8</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>3.5</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Powers of the
Committee................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">8</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>3.6</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Option or SAR Repricing................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">9</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>3.7</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>
Indemnification...............................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">9</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>4.</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Shares Subject to
Plan....................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">10</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>4.1</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Maximum Number of Shares Issuable.............................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">10</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>4.2</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Adjustments for Changes in Capital
Structure..................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">10</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>5.</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Eligibility and Award
Limitations......................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">11</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>5.1</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Persons Eligible for
Awards............................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">11</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>5.2</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>
Participation...................................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">11</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>5.3</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Incentive Stock Option
Limitations..................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">11</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>5.4</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Award
Limits..................................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">12</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>6.</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Terms and Conditions of
Options....................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">13</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>6.1</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Exercise
Price.................................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">13</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>6.2</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Exercisability and Term of
Options..................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">13</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>6.3</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Payment of Exercise
Price...............................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">13</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>6.4</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Effect of Termination of
Service......................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">14</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>6.5</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Transferability of
Options................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">14</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>7.</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Terms and Conditions of Nonemployee Director
Awards................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">15</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>7.1</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Automatic Grant of Restricted
Stock...............................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">15</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>7.2</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Annual Election to Receive Nonstatutory Stock Option and
Restricted Stock
Units....................................................................................................................
............</p>
</td>
<td valign="top" width="37">
<p align="right"><br />
 15</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>7.3</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Grant of Nonstatutory Stock
Option...............................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">15</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>7.4</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Grant of Restricted Stock
Unit........................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">16</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>7.5</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Effect of Termination of Service as a Nonemployee
Director............................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">17</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>7.6</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Effect of Change in Control on Nonemployee Director
Awards.......................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">18</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>7.7</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Right to Decline Nonemployee Director
Awards.............................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">18</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>8.</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Terms and Conditions of Stock Appreciation
Rights........................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">19</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>8.1</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Types of SARs
Authorized.............................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">19</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>8.2</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Exercise
Price.................................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">19</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>8.3</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Exercisability and Term of SARs.....................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">19</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>8.4</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Deemed Exercise of SARs..............................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">19</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>8.5</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Effect of Termination of
Service......................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">20</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>8.6</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Nontransferability of SARs.............................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">20</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>9.</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Terms and Conditions of Restricted Stock
Awards..........................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">20</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>9.1</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Types of Restricted Stock Awards
Authorized................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">20</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>9.2</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Purchase
Price................................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">20</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>9.3</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Purchase
Period.............................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">20</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>9.4</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Vesting and Restrictions on
Transfer................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">20</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>9.5</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Voting Rights, Dividends and
Distributions.......................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">21</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>9.6</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Effect of Termination of
Service......................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">21</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>9.7</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Nontransferability of Restricted Stock Award
Rights.......................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">21</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>10.</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Terms and Conditions of Performance
Awards................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">21</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>10.1</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Types of Performance Awards
Authorized......................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">22</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>10.2</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Initial Value of Performance Shares and Performance
Units.............................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">22</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>10.3</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Establishment of Performance Period, Performance Goals and
Performance Award
Formula..........................................................................................
............................ ....</p>
</td>
<td valign="top" width="37">
<p align="right"><br />
 22</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>10.4</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Measurement of Performance
Goals................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">22</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>10.5</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Settlement of Performance
Awards.................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">23</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>10.6</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Voting Rights, Dividend Equivalent Rights and
Distributions.............................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">24</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>10.7</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Effect of Termination of
Service......................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">24</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>10.8</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Nontransferability of Performance
Awards......................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">25</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>11.</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Terms and Conditions of Restricted Stock Unit
Awards..................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">25</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>11.1</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Grant of Restricted Stock Unit
Awards...........................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">25</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>11.2</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>
Vesting...........................................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">25</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>11.3</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Voting Rights, Dividend Equivalent Rights and
Distributions.............................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">25</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>11.4</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Effect of Termination of
Service......................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">26</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>11.5</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Settlement of Restricted Stock Unit
Awards....................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">26</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>11.6</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Nontransferability of Restricted Stock Unit
Awards.........................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">26</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>12.</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Deferred Compensation
Awards.....................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">27</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>12.1</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Establishment of Deferred Compensation Award
Programs.............................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">27</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>12.2</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Terms and Conditions of Deferred Compensation
Awards...............................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">27</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>13.</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Other Stock-Based
Awards...........................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">28</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>14.</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Change in
Control...........................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">29</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>14.1</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Effect of Change in Control on Options and SARs...........................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">29</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>14.2</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Effect of Change in Control on Restricted Stock and Other
Awards.................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">29</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>15.</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Compliance with Securities
Law......................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">29</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>16.</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Tax
Withholding.............................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">29</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>16.1</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Tax Withholding in
General.............................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">29</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>16.2</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Withholding in
Shares.....................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">30</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>17.</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Amendment or Termination of
Plan.................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">30</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>18.</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Miscellaneous
Provisions................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">30</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>18.1</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Repurchase
Rights..........................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">30</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>18.2</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Provision of
Information..................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">30</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>18.3</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Rights as Employee, Consultant or
Director.....................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">30</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>18.4</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Rights as a
Shareholder...................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">31</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>18.5</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Fractional
Shares............................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">31</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>18.6</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>
Severability.....................................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">31</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>18.7</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Beneficiary
Designation...................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">31</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>18.8</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Unfunded
Obligation.......................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">31</p>
</td>
</tr>

<tr>
<td valign="top" width="28">
<p>18.9</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="549">
<p>Choice of
Law................................................................................................................&nbsp;</p>
</td>
<td valign="top" width="37">
<p align="right">32</p>
</td>
</tr>
</table>

<div align="center"><b></b>
<hr size="2" width="100%" align="center" />
</div>
</div>

<b><br clear="all" />
</b>

<div>
<p align="center"><b>PG&amp;E Corporation</b></p>

<p align="center"><b>2006 Long-Term Incentive Plan</b></p>

<p><a name=
"_Toc90274211">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;</a>
<b><u>Establishment, Purpose and Term of Plan</u></b>.<br />
</p>

<p><a name=
"_Toc90274212">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Establishment<i>.</i></b>&nbsp; The PG&amp;E Corporation 2006
Long-Term Incentive Plan (the <i>&ldquo;Plan&rdquo;</i>) is hereby
established effective as of January 1, 2006 (the
<i>&ldquo;Effective Date&rdquo;</i>), provided it has been approved
by the shareholders of the Company.</a><br />
</p>

<p><a name=
"_Toc90274213">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Purpose<i>.</i></b>&nbsp; The purpose of the Plan is to advance the
interests of the Participating Company Group and its shareholders
by providing an incentive to attract and retain the best qualified
personnel to perform services for the Participating Company Group,
by motivating such persons to contribute to the growth and
profitability of the Participating Company Group, by aligning their
interests with interests of the Company&rsquo;s shareholders, and
by rewarding such persons for their services by tying a significant
portion of their total compensation package to the success of the
Company.&nbsp; The Plan seeks to achieve this purpose by providing
for Awards in the form of Options, Stock Appreciation Rights,
Restricted Stock Awards, Performance Shares, Performance Units,
Restricted Stock Units, Deferred Compensation Awards and other
Stock-Based Awards as described below.</a><br />
</p>

<p><a name=
"_Toc90274214">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Term of Plan.</b>&nbsp; The Plan shall continue in effect until the
earlier of its termination by the Board or the date on which all of
the shares of Stock available for issuance under the Plan have been
issued and all restrictions on such shares under the terms of the
Plan and the agreements evidencing Awards granted under the Plan
have lapsed.&nbsp; However, all Awards shall be granted, if at all,
within ten (10) years from the Effective Date.&nbsp; Moreover,
Incentive Stock Options shall not be granted later than ten (10)
years from the date of shareholder approval of the Plan.</a><br />
</p>

<p><a name=
"_Toc90274215">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;</a>
<b><u>Definitions and Construction</u></b>.<br />
</p>

<p><a name=
"_Toc90274216">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Definitions.</b>&nbsp; Whenever used herein, the following terms
shall have their respective meanings set forth below:</a><br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Affiliate&rdquo;</i></b> means (i)&nbsp;an entity, other
than a Parent Corporation, that directly, or indirectly through one
or more intermediary entities, controls the Company or (ii)&nbsp;an
entity, other than a Subsidiary Corporation, that is controlled by
the Company directly, or indirectly through one or more
intermediary entities.&nbsp; For this purpose, the term
&ldquo;control&rdquo; (including the term &ldquo;controlled
by&rdquo;) means the possession, direct or indirect, of the power
to direct or cause the direction of the management and policies of
the relevant entity, whether through the ownership of voting
securities, by contract or otherwise; or shall have such other
meaning assigned such term for the purposes of registration on
Form&nbsp;S&#8209;8 under the Securities Act.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Award&rdquo;</i></b> means any Option, SAR, Restricted
Stock Award, Performance Share, Performance Unit, Restricted Stock
Unit or Deferred Compensation Award or other Stock-Based Award
granted under the Plan.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Award Agreement&rdquo;</i></b> means a written agreement
between the Company and a Participant setting forth the terms,
conditions and restrictions of the Award granted to the
Participant.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Board</i></b><b><i>&rdquo;</i></b> means the Board of
Directors of the Company.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Change in Control&rdquo;</i></b> means, unless otherwise
defined by the Participant&rsquo;s Award Agreement or contract of
employment or service, the occurrence of any of the
following:<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
&ldquo;person&rdquo; (as such term is used in Sections&nbsp;13(d)
and 14(d) of the Exchange Act, but excluding any benefit plan for
Employees or any trustee, agent or other fiduciary for any such
plan acting in such person&rsquo;s capacity as such fiduciary),
directly or indirectly, becomes the &ldquo;beneficial owner&rdquo;
(as defined in Rule&nbsp;13d&#8209;3 promulgated under the Exchange
Act), of stock of the Company representing twenty percent (20%) or
more of the combined voting power of the Company&rsquo;s then
outstanding voting stock; or<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;during
any two consecutive years, individuals who at the beginning of such
period constitute the Board cease for&nbsp; any reason to
constitute at least a majority of the Board, unless the election,
or the nomination for election by the shareholders of the Company,
of each new Director was approved by a vote of at least two-thirds
(2/3) of the Directors then still in office who were Directors at
the beginning of the period; or<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by
approval of the shareholders of the Company (1) any consolidation
or merger of the Company other than a merger or consolidation which
would result in the voting stock of the Company outstanding
immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting stock of
the surviving entity or any parent of such surviving entity) at
least seventy percent (70%) of the Combined Voting Power of the
Company, such surviving entity or the parent of such surviving
entity outstanding immediately after the merger or consolidation;
(2) any sale, lease, exchange or other transfer (in one or a series
of related transactions) of all or substantially all of the assets
of the Company, or (3) any plan or proposal for the liquidation or
dissolution of the Company.&nbsp; For purposes of this paragraph,
the term <i>&ldquo;Combined Voting Power&rdquo;</i> shall mean the
combined voting power of the Company&rsquo;s or other relevant
entity&rsquo;s then outstanding voting stock.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Code</i></b><b><i>&rdquo;</i></b> means the Internal
Revenue Code of 1986, as amended, and any applicable regulations
promulgated thereunder.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Committee</i></b><b><i>&rdquo;</i></b> means the
Nominating, Compensation, and Governance Committee or other
committee of the Board duly appointed to administer the Plan and
having such powers as shall be specified by the Board.&nbsp; If no
committee of the Board has been appointed to administer the Plan,
the Board shall exercise all of the powers of the Committee granted
herein, and, in any event, the Board may in its discretion exercise
any or all of such powers.</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Company</i></b><b><i>&rdquo;</i></b> means PG&amp;E
Corporation, a California corporation, or any successor corporation
thereto.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Consultant</i></b><b><i>&rdquo;</i></b> means a person
engaged to provide consulting or advisory services (other than as
an Employee or a member of the Board) to a Participating Company,
provided that the identity of such person, the nature of such
services or the entity to which such services are provided would
not preclude the Company from offering or selling securities to
such person pursuant to the Plan in reliance on registration on a
Form&nbsp;S&#8209;8 Registration Statement under the Securities
Act.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Deferred Compensation Award&rdquo;</i></b> means an award
of Stock Units granted to a Participant pursuant to Section&nbsp;12
of the Plan.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Director&rdquo;</i></b> means a member of the
Board.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Disability</i></b><b><i>&rdquo;</i></b> means the
permanent and total disability of the Participant, within the
meaning of Section&nbsp;22(e)(3) of the Code.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>(</i>m)<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&ldquo;Dividend
Equivalent&rdquo;</b></i> means a credit, made at the discretion of
the Committee or as otherwise provided by the Plan, to the account
of a Participant in an amount equal to the cash dividends paid on
one share of Stock for each share of Stock represented by an Award
held by such Participant.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Employee</i></b><b><i>&rdquo;</i></b> means any person
treated as an employee (including an Officer or a member of the
Board who is also treated as an employee) in the records of a
Participating Company and, with respect to any Incentive Stock
Option granted to such person, who is an employee for purposes of
Section&nbsp;422 of the Code; provided, however, that neither
service as a member of the Board nor payment of a director&rsquo;s
fee shall be sufficient to constitute employment for purposes of
the Plan.&nbsp; The Company shall determine in good faith and in
the exercise of its discretion whether an individual has become or
has ceased to be an Employee and the effective date of such
individual&rsquo;s employment or termination of employment, as the
case may be.&nbsp; For purposes of an individual&rsquo;s rights, if
any, under the Plan as of the time of the Company&rsquo;s
determination, all such determinations by the Company shall be
final, binding and conclusive, notwithstanding that the Company or
any court of law or governmental agency subsequently makes a
contrary determination.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Exchange Act</i></b><b><i>&rdquo;</i></b> means the
Securities Exchange Act of 1934, as amended.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Fair Market Value</i></b><b><i>&rdquo;</i></b> means, as
of any date, the value of a share of Stock or other property as
determined by the Committee, in its discretion, or by the Company,
in its discretion, if such determination is expressly allocated to
the Company herein, subject to the following:<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as otherwise determined by the Committee, if, on such date, the
Stock is listed on a national or regional securities exchange or
market system, the Fair Market Value of a share of Stock shall be
the closing price of a share of Stock as quoted on the New York
Stock Exchange or such other national or regional securities
exchange or market system constituting the primary market for the
Stock, as reported in <i>The Wall Street Journal</i> or such other
source as the Company deems reliable.&nbsp; If the relevant date
does not fall on a day on which the Stock has traded on such
securities exchange or market system, the date on which the Fair
Market Value shall be established shall be the last day on which
the Stock was so traded prior to the relevant date, or such other
appropriate day as shall be determined by the Committee, in its
discretion.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing, the Committee may, in its discretion, determine the
Fair Market Value on the basis of the opening, closing, high, low
or average sale price of a share of Stock or the actual sale price
of a share of Stock received by a Participant, on such date, the
preceding trading day, the next succeeding trading day or an
average determined over a period of trading days.&nbsp; The
Committee may vary its method of determination of the Fair Market
Value as provided in this Section for different purposes under the
Plan.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If,
on such date, the Stock is not listed on a national or regional
securities exchange or market system, the Fair Market Value of a
share of Stock shall be as determined by the Committee in good
faith without regard to any restriction other than a restriction
which, by its terms, will never lapse.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)<i>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&ldquo;Incentive Stock
Option&rdquo;</b></i> means an Option intended to be (as set forth
in the Award Agreement) and which qualifies as an incentive stock
option within the meaning of Section&nbsp;422(b) of the Code.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&ldquo;Insider&rdquo;</b></i>
means an Officer, a Director or any other person whose transactions
in Stock are subject to Section&nbsp;16 of the Exchange Act.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s<i>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&ldquo;Mandatory
Retirement&rdquo;</b></i> means retirement as a Director at age 70
or at such other age as may be specified in the retirement policy
for the Board in effect at the time of a Nonemployee
Director&rsquo;s termination of Service as a Director.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&ldquo;Net-Exercise&rdquo;</b></i>
means a procedure by which the Participant will be issued a number
of shares of Stock determined in accordance with the following
formula:</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X
= Y(A-B)/A, where</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X
= the number of shares of Stock to be issued to the Participant
upon exercise of the Option;</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Y
= the total number of shares with respect to which the Participant
has elected to exercise the Option;</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
= the Fair Market Value of one (1) share of Stock;</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B
= the exercise price per share (as defined in the
Participant&rsquo;s Award Agreement).<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)<i>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;Nonemployee
Director&rdquo;</i> means a Director who is not an Employee.<br />
</p>

<p><a name=
"OLE_LINK1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i>&ldquo;Nonemployee
Director Award&rdquo;</i> means an Award granted to a Nonemployee
Director pursuant to Section&nbsp;7 of the Plan.<br />
 </a></p>



<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Nonstatutory Stock Option</i></b><b><i>&rdquo;</i></b>
means an Option not intended to be (as set forth in the Award
Agreement) an incentive stock option within the meaning of
Section&nbsp;422(b) of the Code.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Officer&rdquo;</i></b> means any person designated by the
Board as an officer of the Company.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Option</i></b><b><i>&rdquo;</i></b> means the right to
purchase Stock at a stated price for a specified period of time
granted to a Participant pursuant to Section&nbsp;6 or
Section&nbsp;7 of the Plan.&nbsp; An Option may be either an
Incentive Stock Option or a Nonstatutory Stock Option.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Option Expiration Date&rdquo;</i></b> means the date of
expiration of the Option&rsquo;s term as set forth in the Award
Agreement.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Parent Corporation</i></b><b><i>&rdquo;</i></b> means any
present or future &ldquo;parent corporation&rdquo; of the Company,
as defined in Section&nbsp;424(e) of the Code.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Participant&rdquo;</i></b> means any eligible person who
has been granted one or more Awards.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Participating Company</i></b><b><i>&rdquo;</i> </b>means
the Company or any Parent Corporation, Subsidiary Corporation or
Affiliate.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Participating Company Group</i></b><b><i>&rdquo;</i>
</b>means, at any point in time, all entities collectively which
are then Participating Companies.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Performance Award&rdquo;</i></b> means an Award of
Performance Shares or Performance Units.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Performance Award Formula&rdquo;</i></b> means, for any
Performance Award, a formula or table established by the Committee
pursuant to Section&nbsp;10.3 of the Plan which provides the basis
for computing the value of a Performance Award at one or more
threshold levels of attainment of the applicable Performance
Goal(s) measured as of the end of the applicable Performance
Period.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Performance Goal&rdquo;</i></b> means a performance goal
established by the Committee pursuant to Section&nbsp;10.3 of the
Plan.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Performance Period&rdquo;</i></b> means a period
established by the Committee pursuant to Section&nbsp;10.3 of the
Plan at the end of which one or more Performance Goals are to be
measured.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Performance Share&rdquo;</i></b> means a bookkeeping
entry representing a right granted to a Participant pursuant to
Section&nbsp;10 of the Plan to receive a payment equal to the value
of a Performance Share, as determined by the Committee, based on
performance.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Performance Unit&rdquo;</i></b> means a bookkeeping entry
representing a right granted to a Participant pursuant to
Section&nbsp;10 of the Plan to receive a payment equal to the value
of a Performance Unit, as determined by the Committee, based upon
performance.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Restricted Stock Award&rdquo;</i></b> means an Award of
Restricted Stock.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Restricted Stock Unit&rdquo;</i></b> or
<b><i>&ldquo;Stock Unit&rdquo;</i></b> means a bookkeeping entry
representing a right granted to a Participant pursuant to
Section&nbsp;11 or Section&nbsp;12 of the Plan, respectively, to
receive a share of Stock on a date determined in accordance with
the provisions of Section&nbsp;11 or Section&nbsp;12, as
applicable, and the Participant&rsquo;s Award Agreement.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Restriction Period&rdquo;</i></b> means the period
established in accordance with Section&nbsp;9.4 of the Plan during
which shares subject to a Restricted Stock Award are subject to
Vesting Conditions.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Retirement&rdquo;</i></b> means termination as an
Employee of a Participating Company at age 55 or older, provided
that the Participant was an Employee for at least five consecutive
years prior to the date of such termination.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Rule 16b&#8209;3&rdquo;</i></b> means
Rule&nbsp;16b&#8209;3 under the Exchange Act, as amended from time
to time, or any successor rule or regulation.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;SAR&rdquo;</i></b> or <b><i>&ldquo;Stock Appreciation
Right&rdquo;</i></b> means a bookkeeping entry representing, for
each share of Stock subject to such SAR, a right granted to a
Participant pursuant to Section&nbsp;8 of the Plan to receive
payment in any combination of shares of Stock or cash of an amount
equal to the excess, if any, of the Fair Market Value of a share of
Stock on the date of exercise of the SAR over the exercise
price.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq<i>
)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&ldquo;Section&nbsp;162(m)&rdquo;</b></i>means
Section&nbsp;162(m) of the Code.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Securities Act</i></b><b><i>&rdquo;</i> </b>means the
Securities Act of 1933, as amended.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Service</i></b><b><i>&rdquo;</i> </b>means a
Participant&rsquo;s employment or service with the Participating
Company Group, whether in the capacity of an Employee, a Director
or a Consultant.&nbsp; A Participant&rsquo;s Service shall not be
deemed to have terminated merely because of a change in the
capacity in which the Participant renders such Service or a change
in the Participating Company for which the Participant renders such
Service, provided that there is no interruption or termination of
the Participant&rsquo;s Service.&nbsp; Furthermore, a
Participant&rsquo;s Service shall not be deemed to have terminated
if the Participant takes any military leave, sick leave, or other
bona fide leave of absence approved by the Company.&nbsp; However,
if any such leave taken by a Participant exceeds ninety (90) days,
then on the one hundred eighty-first (181st) day following the
commencement of such leave any Incentive Stock Option held by the
Participant shall cease to be treated as an Incentive Stock Option
and instead shall be treated thereafter as a Nonstatutory Stock
Option, unless the Participant&rsquo;s right to return to Service
with the Participating Company Group is guaranteed by statute or
contract.&nbsp; Notwithstanding the foregoing, unless otherwise
designated by the Company or required by law, a leave of absence
shall not be treated as Service for purposes of determining vesting
under the Participant&rsquo;s Award Agreement.&nbsp; A
Participant&rsquo;s Service shall be deemed to have terminated
either upon an actual termination of Service or upon the entity for
which the Participant performs Service ceasing to be a
Participating Company.&nbsp; Subject to the foregoing, the Company,
in its discretion, shall determine whether the Participant&rsquo;s
Service has terminated and the effective date of such
termination.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Stock</i></b><b><i>&rdquo;</i> </b>means the common stock
of the Company, as adjusted from time to time in accordance with
Section&nbsp;4.2 of the Plan.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Stock-Based Awards</i></b><b><i>&rdquo;</i> </b>means any
award that is valued in whole or in part by reference to, or is
otherwise based on, the Stock, including dividends on the Stock,
but not limited to those Awards described in Sections&nbsp;6
through 12 of the Plan.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Subsidiary Corporation</i></b><b><i>&rdquo;</i> </b>means
any present or future &ldquo;subsidiary corporation&rdquo; of the
Company, as defined in Section&nbsp;424(f) of the Code.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Ten Percent Owner&rdquo;</i></b> means a Participant who,
at the time an Option is granted to the Participant, owns stock
possessing more than ten percent (10%) of the total combined voting
power of all classes of stock of a Participating Company (other
than an Affiliate) within the meaning of Section&nbsp;422(b)(6) of
the Code.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>&ldquo;Vesting Conditions&rdquo;</i></b> mean those conditions
established in accordance with Section&nbsp;9.4 or
Section&nbsp;11.2 of the Plan prior to the satisfaction of which
shares subject to a Restricted Stock Award or Restricted Stock Unit
Award, respectively, remain subject to forfeiture or a repurchase
option in favor of the Company upon the Participant&rsquo;s
termination of Service.<br />
</p>

<p><a name=
"_Toc90274217">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Construction.</b>&nbsp; Captions and titles contained herein are
for convenience only and shall not affect the meaning or
interpretation of any provision of the Plan.&nbsp; Except when
otherwise indicated by the context, the singular shall include the
plural and the plural shall include the singular.&nbsp; Use of the
term &ldquo;or&rdquo; is not intended to be exclusive, unless the
context clearly requires otherwise.</a><br />
</p>

<p><a name=
"_Toc90274218">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;</a>
<b><u>Administration</u></b>.<br />
</p>

<p><a name=
"_Toc90274219">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Administration by the Committee.&nbsp;</b> The Plan shall be
administered by the Committee.&nbsp; All questions of
interpretation of the Plan or of any Award shall be determined by
the Committee, and such determinations shall be final and binding
upon all persons having an interest in the Plan or such
Award.</a><br />
</p>

<p><a name=
"_Toc90274220">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Authority of Officers.&nbsp;</b> Any Officer shall have the
authority to act on behalf of the Company with respect to any
matter, right, obligation, determination or election which is the
responsibility of or which is allocated to the Company herein,
provided the Officer has apparent authority with respect to such
matter, right, obligation, determination or election.&nbsp; In
addition, to the extent specified in a resolution adopted by the
Board, the Chief Executive Officer of the Company shall have the
authority to grant Awards to an Employee who is not an Insider and
who is receiving a salary below the level which requires approval
by the Committee; provided that the terms of such Awards conform to
guidelines established by the Committee and provided further that
at the time of making such Awards the Chief Executive Officer also
is a Director.</a><br />
</p>

<p><a name=
"_Toc90274221">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Administration with Respect to Insiders.&nbsp;</b> With respect to
participation by Insiders in the Plan, at any time that any class
of equity security of the Company is registered pursuant to
Section&nbsp;12 of the Exchange Act, the Plan shall be administered
in compliance with the requirements, if any, of
Rule&nbsp;16b&#8209;3.</a><br />
</p>

<p><a name=
"_Toc90274222">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Committee Complying with Section&nbsp;162(m).&nbsp;</b> While the
Company is a &ldquo;publicly held corporation&rdquo; within the
meaning of Section&nbsp;162(m), the Board may establish a Committee
of &ldquo;outside directors&rdquo; within the meaning of
Section&nbsp;162(m) to approve the grant of any Award which might
reasonably be anticipated to result in the payment of employee
remuneration that would otherwise exceed the limit on employee
remuneration deductible for income tax purposes pursuant to
Section&nbsp;162(m).</a><br />
</p>

<p><a name=
"_Toc90274223">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Powers of the Committee<i>.</i>&nbsp;</b> In addition to any other
powers set forth in the Plan and subject to the provisions of the
Plan, the Committee shall have the full and final power and
authority, in its discretion:</a><br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
determine the persons to whom, and the time or times at which,
Awards shall be granted and the number of shares of Stock or units
to be subject to each Award based on the recommendation of the
Chief Executive Officer of the Company (except that Awards to the
Chief Executive Officer shall be based on the recommendation of the
independent members of the Board in compliance with applicable
stock exchange rules and Awards to Nonemployee Directors shall be
granted automatically pursuant to Section&nbsp;7 of the
Plan);<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
determine the type of Award granted and to designate Options as
Incentive Stock Options or Nonstatutory Stock Options;<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
determine the Fair Market Value of shares of Stock or other
property;<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
determine the terms, conditions and restrictions applicable to each
Award (which need not be identical) and any shares acquired
pursuant thereto, including, without limitation, (i)&nbsp;the
exercise or purchase price of shares purchased pursuant to any
Award, (ii)&nbsp;the method of payment for shares purchased
pursuant to any Award, (iii)&nbsp;the method for satisfaction of
any tax withholding obligation arising in connection with Award,
including by the withholding or delivery of shares of Stock,
(iv)&nbsp;the timing, terms and conditions of the exercisability or
vesting of any Award or any shares acquired pursuant thereto,
(v)&nbsp;the Performance Award Formula and Performance Goals
applicable to any Award and the extent to which such Performance
Goals have been attained, (vi)&nbsp;the time of the expiration of
any Award, (vii)&nbsp;the effect of the Participant&rsquo;s
termination of Service on any of the foregoing, and (viii)&nbsp;all
other terms, conditions and restrictions applicable to any Award or
shares acquired pursuant thereto not inconsistent with the terms of
the Plan;<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
determine whether an Award will be settled in shares of Stock,
cash, or in any combination thereof;<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
approve one or more forms of Award Agreement;<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
amend, modify, extend, cancel or renew any Award or to waive any
restrictions or conditions applicable to any Award or any shares
acquired pursuant thereto;<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
accelerate, continue, extend or defer the exercisability or vesting
of any Award or any shares acquired pursuant thereto, including
with respect to the period following a Participant&rsquo;s
termination of Service;<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;without
the consent of the affected Participant and notwithstanding the
provisions of any Award Agreement to the contrary, to unilaterally
substitute at any time a Stock Appreciation Right providing for
settlement solely in shares of Stock in place of any outstanding
Option, provided that such Stock Appreciation Right covers the same
number of shares of Stock and provides for the same exercise price
(subject in each case to adjustment in accordance with
Section&nbsp;4.2) as the replaced Option and otherwise provides
substantially equivalent terms and conditions as the replaced
Option, as determined by the Committee;<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
prescribe, amend or rescind rules, guidelines and policies relating
to the Plan, or to adopt sub-plans or supplements to, or
alternative versions of, the Plan, including, without limitation,
as the Committee deems necessary or desirable to comply with the
laws or regulations of or to accommodate the tax policy, accounting
principles or custom of, foreign jurisdictions whose citizens may
be granted Awards;<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
correct any defect, supply any omission or reconcile any
inconsistency in the Plan or any Award Agreement and to make all
other determinations and take such other actions with respect to
the Plan or any Award as the Committee may deem advisable to the
extent not inconsistent with the provisions of the Plan or
applicable law; and<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
delegate to the Chief Executive Officer or the Senior Vice
President of Human Resources the authority with respect to
ministerial matters regarding the Plan and Awards made under the
Plan.<br />
</p>

<p><a name=
"_Toc90274224">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Option or SAR Repricing.&nbsp;</b> Without the affirmative vote of
holders of a majority of the shares of Stock cast in person or by
proxy at a meeting of the shareholders of the Company at which a
quorum representing a majority of all outstanding shares of Stock
is present or represented by proxy, the Board shall not approve a
program providing for either (a)&nbsp;the cancellation of
outstanding Options or SARs and the grant in substitution therefore
of new Options or SARs having a lower exercise price or
(b)&nbsp;the amendment of outstanding Options or SARs to reduce the
exercise price thereof.&nbsp; This paragraph shall not be construed
to apply to &ldquo;issuing or assuming a stock option in a
transaction to which section 424(a) applies,&rdquo; within the
meaning of Section 424 of the Code.</a><br />
</p>

<p><a name=
"_Toc90274225">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Indemnification.&nbsp;</b> In addition to such other rights of
indemnification as they may have as members of the Board or the
Committee or as officers or employees of the Participating Company
Group, members of the Board or the Committee and any officers or
employees of the Participating Company Group to whom authority to
act for the Board, the Committee or the Company is delegated shall
be indemnified by the Company against all reasonable expenses,
including attorneys&rsquo; fees, actually and necessarily incurred
in connection with the defense of any action, suit or proceeding,
or in connection with any appeal therein, to which they or any of
them may be a party by reason of any action taken or failure to act
under or in connection with the Plan, or any right granted
hereunder, and against all amounts paid by them in settlement
thereof (provided such settlement is approved by independent legal
counsel selected by the Company) or paid by them in satisfaction of
a judgment in any such action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such
action, suit or proceeding that such person is liable for gross
negligence, bad faith or intentional misconduct in duties;
provided, however, that within sixty (60) days after the
institution of such action, suit or proceeding, such person shall
offer to the Company, in writing, the opportunity at its own
expense to handle and defend the same.</a><br />
</p>

<p><a name=
"_Toc90274226">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;</a>
<b><u>Shares Subject to Plan</u></b>.<br />
</p>

<p><a name="_Ref57606357"></a><a name=
"_Toc90274227">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Maximum Number of Shares Issuable.&nbsp;</b> Subject to adjustment
as provided in Section&nbsp;4.2, the maximum aggregate number of
shares of Stock that may be issued under the Plan shall be twelve
million (12,000,000) and shall consist of authorized but unissued
or reacquired shares of Stock or any combination thereof.&nbsp; If
an outstanding Award for any reason expires or is terminated or
canceled without having been exercised or settled in full, or if
shares of Stock acquired pursuant to an Award subject to forfeiture
or repurchase are forfeited or repurchased by the Company, the
shares of Stock allocable to the terminated portion of such Award
or such forfeited or repurchased shares of Stock shall again be
available for issuance under the Plan.&nbsp; Shares of Stock shall
not be deemed to have been issued pursuant to the Plan
(a)&nbsp;with respect to any portion of an Award that is settled in
cash or (b)&nbsp;to the extent such shares are withheld or
reacquired by the Company in satisfaction of tax withholding
obligations pursuant to Section&nbsp;16.2.&nbsp; Upon payment in
shares of Stock pursuant to the exercise of an SAR, the number of
shares available for issuance under the Plan shall be reduced only
by the number of shares actually issued in such payment.&nbsp; If
the exercise price of an Option is paid by tender to the Company,
or attestation to the ownership, of shares of Stock owned by the
Participant, or by means of a Net-Exercise, the number of shares
available for issuance under the Plan shall be reduced only by the
net number of shares for which the Option is exercised.</a><br />
</p>

<p><a name="_Ref32362547"></a><a name=
"_Toc90274228">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Adjustments for Changes in Capital Structure<i>.</i>&nbsp;</b>
Subject to any required action by the shareholders of the Company,
in the event of any change in the Stock effected without receipt of
consideration by the Company, whether through merger,
consolidation, reorganization, reincorporation, recapitalization,
reclassification, stock dividend, stock split, reverse stock split,
split-up, split-off, spin-off, combination of shares, exchange of
shares, or similar change in the capital structure of the Company,
or in the event of payment of a dividend or distribution to the
shareholders of the Company in a form other than Stock (excepting
normal cash dividends) that has a material effect on the Fair
Market Value of shares of Stock, appropriate adjustments shall be
made in the number and kind of shares subject to the Plan and to
any outstanding Awards, in the Award limits set forth in
Section&nbsp;5.4,</a>in the Nonemployee Director Awards to be
granted automatically pursuant to Section 7, and in the exercise or
purchase price per share under any outstanding Award in order to
prevent dilution or enlargement of Participants&rsquo; rights under
the Plan.&nbsp; For purposes of the foregoing, conversion of any
convertible securities of the Company shall not be treated as
&ldquo;effected without receipt of consideration by the
Company.&rdquo;&nbsp; Any fractional share resulting from an
adjustment pursuant to this Section&nbsp;4.2 shall be rounded down
to the nearest whole number.&nbsp; The Committee in its sole
discretion, may also make such adjustments in the terms of any
Award to reflect, or related to, such changes in the capital
structure of the Company or distributions as it deems appropriate,
including modification of Performance Goals, Performance Award
Formulas and Performance Periods.&nbsp; The adjustments determined
by the Committee pursuant to this Section&nbsp;4.2 shall be final,
binding and conclusive.<br />
</p>

<p><a name="_Ref57608549"></a><a name=
"_Toc90274229">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;</a>
<b><u>Eligibility and Award Limitations</u>.</b><b><br />
</b></p>

<p><a name=
"_Toc90274230">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Persons Eligible for Awards.&nbsp;</b> Awards may be granted only
to Employees, Consultants and Directors.&nbsp; For purposes of the
foregoing sentence,</a> &ldquo;Employees,&rdquo;
&ldquo;Consultants&rdquo;and &ldquo;Directors&rdquo; shall include
prospective Employees, prospective Consultants and prospective
Directors to whom Awards are granted in connection with written
offers of an employment or other service relationship with the
Participating Company Group; provided, however, that no Stock
subject to any such Award shall vest, become exercisable or be
issued prior to the date on which such person commences
Service.&nbsp; A Nonemployee Director Award may be granted only to
a person who, at the time of grant, is a Nonemployee
Director.<br />
</p>

<p><a name=
"_Toc90274231">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Participation.&nbsp;</b> Awards</a> other than Nonemployee Director
Awards are granted solely at the discretion of the Committee.&nbsp;
Eligible persons may be granted more than one Award.&nbsp; However,
excepting Nonemployee Director Awards, eligibility in accordance
with this Section shall not entitle any person to be granted an
Award, or, having been granted an Award, to be granted an
additional Award.<br />
</p>

<p><a name=
"_Toc90274232">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Incentive Stock Option Limitations.</b></a><b><br />
</b></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Persons Eligible.</i>&nbsp;</b> An Incentive Stock Option may be
granted only to a person who, on the effective date of grant, is an
Employee of the Company, a Parent Corporation or a Subsidiary
Corporation (each being an <i>&ldquo;ISO-Qualifying
Corporation&rdquo;</i>).&nbsp; Any person who is not an Employee of
an ISO-Qualifying Corporation on the effective date of the grant of
an Option to such person may be granted only a Nonstatutory Stock
Option.&nbsp; An Incentive Stock Option granted to a prospective
Employee upon the condition that such person become an Employee of
an ISO-Qualifying Corporation shall be deemed granted effective on
the date such person commences Service with an ISO-Qualifying
Corporation, with an exercise price determined as of such date in
accordance with Section&nbsp;6.1.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Fair Market Value Limitation.</i>&nbsp;</b> To the extent that
options designated as Incentive Stock Options (granted under all
stock option plans of the Participating Company Group, including
the Plan) become exercisable by a Participant for the first time
during any calendar year for stock having a Fair Market Value
greater than One Hundred Thousand Dollars ($100,000), the portion
of such options which exceeds such amount shall be treated as
Nonstatutory Stock Options.&nbsp; For purposes of this Section,
options designated as Incentive Stock Options shall be taken into
account in the order in which they were granted, and the Fair
Market Value of stock shall be determined as of the time the option
with respect to such stock is granted.&nbsp; If the Code is amended
to provide for a limitation different from that set forth in this
Section, such different limitation shall be deemed incorporated
herein effective as of the date and with respect to such Options as
required or permitted by such amendment to the Code.&nbsp; If an
Option is treated as an Incentive Stock Option in part and as a
Nonstatutory Stock Option in part by reason of the limitation set
forth in this Section, the Participant may designate which portion
of such Option the Participant is exercising.&nbsp; In the absence
of such designation, the Participant shall be deemed to have
exercised the Incentive Stock Option portion of the Option
first.&nbsp; Upon exercise, shares issued pursuant to each such
portion shall be separately identified.<br />
</p>

<p><a name="_Ref63739700"></a><a name=
"_Toc90274233">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Award Limits</b>.</a><br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Maximum Number of Shares Issuable Pursuant to Incentive Stock
Options</i></b><i>.</i>&nbsp; Subject to adjustment as provided in
Section&nbsp;4.2, the maximum aggregate number of shares of Stock
that may be issued under the Plan pursuant to the exercise of
Incentive Stock Options shall not exceed twelve million
(12,000,000) shares.&nbsp; The maximum aggregate number of shares
of Stock that may be issued under the Plan pursuant to all Awards
other than Incentive Stock Options shall be the number of shares
determined in accordance with Section&nbsp;4.1, subject to
adjustment as provided in Section&nbsp;4.2 and further subject to
the limitation set forth in Section&nbsp;5.4(b) below.<a name=
"_Ref64886156"><br />
</a></p>

<p><a name=
"_Ref64950715">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Aggregate Limit on Full Value Awards.</i>&nbsp;</b> Subject to
adjustment as provided in Section&nbsp;4.2, in no event shall more
than twelve million (12,000,000) shares in the aggregate be issued
under the Plan pursuant to the exercise or settlement of Restricted
Stock Awards, Restricted Stock Unit Awards and Performance Awards
(&ldquo;Full Value Awards&rdquo;).&nbsp; Except with respect to a
maximum of five percent (5%) of the shares of Stock authorized in
this Section&nbsp;5.4(b), any Full Value Awards which vest on the
basis of the Participant&rsquo;s continued Service shall not
provide for vesting which is any more rapid than annual pro rata
vesting over a three (3) year period a</a>nd any Full Value Awards
which vest upon the attainment of Performance Goals shall provide
for a Performance Period of at least twelve (12) months.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Section 162(m) Award Limits.</i>&nbsp;</b> The following limits
shall apply to the grant of any Award if, at the time of grant, the
Company is a &ldquo;publicly held corporation&rdquo; within the
meaning of Section&nbsp;162(m).<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Options and SARs.&nbsp;</b> Subject to adjustment as provided in
Section&nbsp;4.2, no Employee shall be granted within any fiscal
year of the Company one or more Options or Freestanding SARs which
in the aggregate are for more than 400,000 shares of Stock reserved
for issuance under the Plan.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Restricted Stock and Restricted Stock Unit Awards.&nbsp;</b>
Subject to adjustment as provided in Section 4.2, no Employee shall
be granted within any fiscal year of the Company one or more
Restricted Stock Awards or Restricted Stock Unit Awards, subject to
Vesting Conditions based on the attainment of Performance Goals,
for more than 400,000 shares of Stock reserved for issuance under
the Plan.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Performance Awards.&nbsp;</b> Subject to adjustment as provided in
Section&nbsp;4.2, no Employee shall be granted (1)&nbsp;Performance
Shares which could result in such Employee receiving more than
400,000 shares of Stock reserved for issuance under the Plan for
each full fiscal year of the Company contained in the Performance
Period for such Award, or (2)&nbsp;Performance Units which could
result in such Employee receiving more than two million dollars ($2
million) for each full fiscal year of the Company contained in the
Performance Period for such Award.&nbsp; No Participant may be
granted more than one Performance Award for the same Performance
Period.<br />
</p>

<p><a name="_Ref57606572"></a><a name=
"_Toc90274234">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;</a>
<b><u>Terms and Conditions of Options</u>.</b><b><br />
</b></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options
shall be evidenced by Award Agreements specifying the number of
shares of Stock covered thereby, in such form as the Committee
shall from time to time establish.&nbsp; No Option or purported
Option shall be a valid and binding obligation of the Company
unless evidenced by a fully executed Award Agreement.&nbsp; Award
Agreements evidencing Options may incorporate all or any of the
terms of the Plan by reference and, except as otherwise set forth
in Section&nbsp;7 with respect to Nonemployee Director Options,
shall comply with and be subject to the following terms and
conditions:<br />
</p>

<p><a name="_Ref57607046"></a><a name=
"_Toc90274235">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Exercise Price</b><i>.</i>&nbsp; The exercise price for each Option
shall be established in the discretion of the Committee; provided,
however, that (a) the exercise price per share shall be not less
than the Fair Market Value of a share of Stock on the effective
date of grant of the Option and (b)&nbsp;no Incentive Stock Option
granted to a Ten Percent Owner shall have an exercise price per
share less than one hundred ten percent (110%) of the Fair Market
Value of a share of Stock on the effective date of grant of the
Option.&nbsp; Notwithstanding the foregoing, an Option (whether an
Incentive Stock Option or a Nonstatutory Stock Option) may be
granted with an exercise price lower than the minimum exercise
price set forth above if such Option is granted pursuant to an
assumption or substitution for another option in a manner
qualifying under the provisions of Section&nbsp;424(a) of the
Code.</a><br />
</p>

<p><a name=
"_Toc90274236">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Exercisability and Term of Options<i>.</i>&nbsp;</b> Options shall
be exercisable at such time or times, or upon such event or events,
and subject to such terms, conditions, performance criteria and
restrictions as shall be determined by the Committee and set forth
in the Award Agreement evidencing such Option; provided, however,
that (a)&nbsp;no Option shall be exercisable after the expiration
of ten (10) years after the effective date of grant of such Option,
(b)&nbsp;no Incentive Stock Option granted to a Ten Percent Owner
shall be exercisable after the expiration of five (5) years after
the effective date of grant of such Option, and (c)&nbsp;no Option
granted to a prospective Employee, prospective Consultant or
prospective Director may become exercisable prior to the date on
which such person commences Service.&nbsp; Subject to the
foregoing, unless otherwise specified by the Committee in the grant
of an Option, any Option granted hereunder shall terminate ten (10)
years after the effective date of grant of the Option, unless
earlier terminated in accordance with its provisions.</a><br />
</p>

<p><a name=
"_Toc90274237">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Payment of Exercise Price.</b></a><b><br />
</b></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Forms of Consideration Authorized.</i>&nbsp;</b> Except as
otherwise provided below, payment of the exercise price for the
number of shares of Stock being purchased pursuant to any Option
shall be made (i)&nbsp;in cash, by check or in cash equivalent,
(ii)&nbsp;by tender to the Company, or attestation to the
ownership, of shares of Stock owned by the Participant having a
Fair Market Value not less than the exercise price, (iii)&nbsp;by
delivery of a properly executed notice of exercise together with
irrevocable instructions to a broker providing for the assignment
to the Company of the proceeds of a sale or loan with respect to
some or all of the shares being acquired upon the exercise of the
Option (including, without limitation, through an exercise
complying with the provisions of Regulation&nbsp;T as promulgated
from time to time by the Board of Governors of the Federal Reserve
System) (a <i>&ldquo;Cashless Exercise&rdquo;</i>), (iv) by
delivery of a properly executed notice of exercise electing a
Net-Exercise, (v)&nbsp;by such other consideration as may be
approved by the Committee from time to time to the extent permitted
by applicable law, or (vi)&nbsp;by any combination thereof.&nbsp;
The Committee may at any time or from time to time grant Options
which do not permit all of the foregoing forms of consideration to
be used in payment of the exercise price or which otherwise
restrict one or more forms of consideration.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Limitations on Forms of Consideration.<br />
</i></b></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Tender of Stock.&nbsp;</b> Notwithstanding the foregoing, an Option
may not be exercised by tender to the Company, or attestation to
the ownership, of shares of Stock to the extent such tender or
attestation would constitute a violation of the provisions of any
law, regulation or agreement restricting the redemption of the
Company&rsquo;s stock.&nbsp;<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Cashless Exercise.&nbsp;</b> The Company reserves, at any and all
times, the right, in the Company&rsquo;s sole and absolute
discretion, to establish, decline to approve or terminate any
program or procedures for the exercise of Options by means of a
Cashless Exercise, including with respect to one or more
Participants specified by the Company notwithstanding that such
program or procedures may be available to other Participants.<br />
</p>

<p><a name="_Ref57607090"></a><a name=
"_Toc90274238">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Effect of Termination of Service.</b></a></p>

<p><a name=
"_Ref57607080">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Option Exercisability</i>.&nbsp;</b> Subject to earlier
termination of the Option as otherwise provided herein and unless
otherwise provided by the Committee, an Option shall be exercisable
after a Participant&rsquo;s termination of Service only during the
applicable time periods provided in the Award Agreement.</a><br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Extension if Exercise Prevented by Law</i>.&nbsp;</b>
Notwithstanding the foregoing, unless the Committee provides
otherwise in the Award Agreement, if the exercise of an Option
within the applicable time periods is prevented by the provisions
of Section&nbsp;15 below, the Option shall remain exercisable until
three (3) months (or such longer period of time as determined by
the Committee, in its discretion) after the date the Participant is
notified by the Company that the Option is exercisable, but in any
event no later than the Option Expiration Date.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Extension if Participant Subject to
Section&nbsp;16(b</i>).&nbsp;</b> Notwithstanding the foregoing, if
a sale within the applicable time periods of shares acquired upon
the exercise of the Option would subject the Participant to suit
under Section&nbsp;16(b) of the Exchange Act, the Option shall
remain exercisable until the earliest to occur of (i)&nbsp;the
tenth (10th) day following the date on which a sale of such shares
by the Participant would no longer be subject to such suit,
(ii)&nbsp;the one hundred and ninetieth (190th) day after the
Participant&rsquo;s termination of Service, or (iii)&nbsp;the
Option Expiration Date.<br />
</p>

<p><a name=
"_Toc90274239">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Transferability of Options.&nbsp;</b> During the lifetime of the
Participant, an Option shall be exercisable only by the Participant
or the Participant&rsquo;s guardian or legal representative.&nbsp;
Prior to the issuance of shares of Stock upon the exercise of an
Option, the Option shall not be subject in any manner to
anticipation, alienation, sale, exchange, transfer, assignment,
pledge, encumbrance, or garnishment by creditors of the Participant
or the Participant&rsquo;s beneficiary, except transfer by will or
by the laws of descent and distribution.&nbsp; Notwithstanding the
foregoing, to the extent permitted by the Committee, in its
discretion, and set forth in the Award Agreement evidencing such
Option, a Nonstatutory Stock Option shall be assignable or
transferable subject to the applicable limitations, if any,
described in the General Instructions to Form&nbsp;S&#8209;8
Registration Statement under the Securities Act.&nbsp;</a><br />
</p>

<p><a name="_Ref63748035"></a><a name=
"_Toc90274240">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</a>
<b><u>Terms and Conditions of Nonemployee Director
Awards</u>.</b></p>

<p><br />
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonemployee
Director Awards shall be evidenced by Award Agreements in such form
as the Board shall from time to time establish.&nbsp; Such Award
Agreements may incorporate all or any of the terms of the Plan by
reference, shall be automatic and non-discretionary and shall
comply with and be subject to the following terms and
conditions:<br />
</p>

<p><a name=
"_Toc90274241">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Automatic Grant of Restricted Stock.</b></a></p>

<p><br />
<a name=
"_Ref65644186">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Timing and Amount of Grant.</i>&nbsp;</b> On the first business
day of each calendar year beginning on January 1, 2006, and
continuing for the term of the Plan, each person who is a
Nonemployee Director on such date shall be granted a Restricted
Stock Award to purchase a number of shares of Stock determined by
dividing thirty thousand dollars ($30,000) by the Fair Market Value
of the Stock on the first business day of the applicable calendar
year, and rounding down to the nearest whole
number.</a>&nbsp;<br />
</p>

<p><a name="_Ref63748706"></a><a name=
"_Ref66272368">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Vesting&nbsp;</i></b> The shares subject to the Restricted Stock
Award granted pursuant to Section&nbsp;7.1(a) shall vest in</a>
equal annual installments of twenty percent (20%) on each
anniversary of the date of grant, with one hundred percent (100%)
of the shares vested on the fifth anniversary of the date of
grant.<br />
</p>

<p><a name=
"_Toc90274242">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Annual Election to Receive Nonstatutory Stock Option and Restricted
Stock Units.&nbsp;</b> On a date no later than December&nbsp;31 of
each calendar year during the term of the Plan, each person who is
then a Nonemployee Director shall deliver to the Board a written
election to receive either Nonstatutory Stock Options or Restricted
Stock Units, or both, with an aggregate value of $30,000, on the
first business day of the following calendar year, provided the
person continues to be a Nonemployee Director on the date of
grant.&nbsp; A Nonemployee Director may allocate between
Nonstatutory Stock Options and Restricted Stock Units in minimum
increments with a value equal to $5,000, as determined in
accordance with Sections 7.3 and 7.4.&nbsp; All awards of
Nonstatutory Stock Options and Restricted Stock Units made to
Nonemployee Directors shall comply with the provisions of Sections
7.3 and 7.4, respectively.&nbsp; A Nonemployee Director who fails
to make a timely election or who first becomes a Nonemployee
Director after December&nbsp;31 shall be awarded Nonstatutory Stock
Options and Restricted Stock Units each with a value of $30,000, as
determined in accordance with Sections 7.3 and 7.4, provided the
Nonemployee Director continues to be a Nonemployee Director on the
first business day of the following calendar year.</a><br />
</p>

<p><a name=
"_Toc90274243">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Grant of Nonstatutory Stock Option.</b></a><b><br />
</b></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Timing and Amount of Grant</i>.&nbsp;</b> Unless a Nonemployee
Director made an election to decline the award of a Nonstatutory
Stock Option in accordance with Section 7.2 above, on the first
business day of each calendar year beginning on January 1, 2006,
and continuing for the term of the Plan, each person who is a
Nonemployee Director on such date shall receive a grant of a
Nonstatutory Stock Option with an aggregate value equal to $5,000,
$10,000, $15,000, $20,000, $25,000 or $30,000, as previously
elected by the Nonemployee Director (or $15,000 in the case of a
Nonemployee Director who failed to make a timely election or who
became a Nonemployee Director after December 31) (the
<i>&ldquo;Elected Option Value&rdquo;</i>).&nbsp; The number of
shares subject to the Nonstatutory Stock Option shall be determined
by dividing the Elected Option Value by the value of a Nonstatutory
Stock Option to purchase a single share of Stock as of the first
business day of the applicable calendar year.&nbsp; The per share
option value shall be calculated in accordance with the
Black-Scholes stock option valuation method using the average
preceding November closing price of Stock and reducing the per
option value by twenty percent (20%).&nbsp; The resulting number of
shares subject to the Nonstatutory Stock Option shall be rounded
down to the nearest whole share.&nbsp; No person shall receive more
than one grant of Nonstatutory Stock Options pursuant to this
Section&nbsp;7.3(a) during any calendar year.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Exercise Price and Payment</i>.&nbsp;</b> The exercise price of
each Nonstatutory Stock Option granted pursuant to
Section&nbsp;7.3(a) shall be the Fair Market Value of the Stock on
the date of grant.&nbsp; The payment of the exercise price for the
number of share of Stock being purchased pursuant to the
Nonstatutory Stock Option shall be made in accordance with the
provisions of Section 6.3.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Vesting and Exercisability</i>.&nbsp;</b> The Nonstatutory Stock
Option granted in accordance with this Section shall become vested
and exercisable as to one third (1/3) of the shares subject to the
Nonstatutory Stock Option on the second, third and fourth
anniversaries of the date of grant, respectively.&nbsp; The
Nonstatutory Stock Option shall terminate ten (10) years after the
date of grant, unless earlier terminated in accordance with its
provisions.&nbsp;<br />
</p>

<p><a name=
"_Toc90274244">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Grant of Restricted Stock Unit.</b></a><b><br />
</b></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Timing and Amount of Grant</i>.&nbsp;</b> Unless a Nonemployee
Director made an election to decline the award of a Restricted
Stock Unit in accordance with Section 7.2 above, on the first
business day of each calendar year beginning on January 1, 2006,
and continuing for the term of the Plan, each person who is a
Nonemployee Director on such date shall receive a grant of a
Restricted Stock Unit Award with an aggregate value (as determined
by the Fair Market Value of the Stock on the first business day of
the applicable calendar year) equal to $5,000, $10,000, $15,000,
$20,000, $25,000 or $30,000, as previously elected by the
Nonemployee Director (or $15,000 in the case of a Nonemployee
Director who failed to make a timely election or who became a
Nonemployee Director after December 31) (the <i>&ldquo;Elected
Stock Unit Value&rdquo;</i>).&nbsp; The number of shares subject to
the Restricted Stock Unit Award shall be determined by dividing the
Elected Stock Unit Value by the Fair Market Value of the Stock as
of the first business day of the applicable calendar year
(including fractions computed to three decimal places).&nbsp; The
Restricted Stock Units awarded to a Nonemployee Director shall be
credited to a newly established Restricted Stock Unit account.
&nbsp; Each Restricted Stock Unit awarded to a Nonemployee Director
in accordance with this Section&nbsp;7.4(a) shall be deemed to be
equal to one (1) (or fraction thereof) share of Stock on the date
of grant, and shall thereafter fluctuate in value in accordance
with the Fair Market Value of the Stock.&nbsp; No person shall
receive more than one grant of Restricted Stock Units pursuant to
this Section&nbsp;7.4(a) during any calendar year.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Dividend Rights</i>.&nbsp;</b> Each Nonemployee Director&rsquo;s
Restricted Stock Unit account shall be credited quarterly on each
dividend payment date with additional shares of Restricted Stock
Units (including fractions computed to three decimal places)
determined by dividing (1) the amount of cash dividends paid on
such date with respect to the number of shares of Stock represented
by the Restricted Stock Units previously credited to the account by
(2) the Fair Market Value per share of Stock on such date.&nbsp;
Such additional Restricted Stock Units shall be subject to the same
terms and conditions and shall be settled in the same manner and at
the same time as the Restricted Stock Units originally subject to
the Restricted Stock Unit Award.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Settlement of Restricted Stock Unit Award</i>.&nbsp;</b>
Settlement of the shares credited to a Nonemployee Director&rsquo;s
Restricted Stock Unit account shall only be made after the
Nonemployee Director&rsquo;s Retirement or Mandatory Retirement
from the Board or as provided in Section&nbsp;7.5 below.&nbsp;
Settlement shall be made only in the form of shares of Stock equal
to the number of Restricted Stock Units credited to the Nonemployee
Director&rsquo;s account on the date of distribution, rounded down
to the nearest whole share.&nbsp; The Nonemployee Director may
elect to receive the Stock in a lump sum distribution or in a
series of ten or less approximately equal annual installments,
provided that distribution shall commence no later than January of
the year following the year in which the Nonemployee
Director&rsquo;s Retirement or Mandatory Retirement occurred.<br />
</p>

<p><a name=
"_Toc90274245">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Effect of Termination of Service as a Nonemployee
Director.</b></a><b><br />
</b></p>

<p><a name=
"_Ref63748922">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Status of Award</i>.&nbsp;</b> Subject to earlier termination of
the Nonemployee Director Award as otherwise provided herein, the
status of a Nonemployee Director Award shall be determined as
follows:</a><br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Death or Disability.&nbsp;</b> If the Nonemployee Director&rsquo;s
Service terminates due to death or Disability (1) all shares
subject to the Restricted Stock Award shall become fully vested,
and the Participant (or the Participant&rsquo;s legal
representative or other person who acquired the rights to the
Restricted Stock by reason of the Participant&rsquo;s death) shall
have the right to resell or transfer such shares at any time; (2)
all Nonstatutory Stock Options held by the Participant shall become
fully vested and exercisable, and the Participant (or the
Participant&rsquo;s legal representative or other person who
acquired the rights to the Nonstatutory Stock Option by reason of
the Participant&rsquo;s death) shall have the right to exercise the
Nonstatutory Stock Options until the earlier of (a)&nbsp;the date
that is twelve (12) months after the date on which the
Participant&rsquo;s Service terminated, or (b)&nbsp;the Option
Expiration Date and (3) all Restricted Stock Units credited to the
Nonemployee Director&rsquo;s account shall immediately become
payable to the Participant (or the Participant&rsquo;s legal
representative or other person who acquired the rights to the
Restricted Stock Units by reason of the Participant&rsquo;s death)
in the form of a number of shares of Stock equal to the number of
Restricted Stock Units credited to the Restricted Stock Unit
account, rounded down to the nearest whole share.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Mandatory Retirement.&nbsp;</b> If the Participant&rsquo;s Service
terminates because of the Mandatory Retirement of the Participant
(1) all shares subject to the Restricted Stock Award shall become
fully vested, and the Participant shall have the right to resell or
transfer such shares at any time; (2) all Nonstatutory Stock
Options held by the Participant shall become fully vested and
exercisable and the Participant shall have the right to exercise
the Nonstatutory Stock Options until the earlier of (a)&nbsp;the
date that is five (5) years after the date on which the
Participant&rsquo;s Service terminated, or (b)&nbsp;the Option
Expiration Date and (3) all Restricted Stock Units credited to the
Nonemployee Director&rsquo;s account shall immediately become
payable to the Participant in accordance with Section 7.4(c)
above.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Other Termination of Service.&nbsp;</b> If the Participant&rsquo;s
Service terminates for any reason other than those enumerated in
Sections 7.5(a)(i) and 7.5(a)(ii), (1) any unvested shares of
Restricted Stock shall be forfeited to the Company and from and
after the date of such termination, the Participant shall cease to
be a shareholder with respect to such forfeited shares and shall
have no dividend, voting or other rights with respect thereto,
(2)&nbsp;the unvested portion of any Nonstatutory Stock Option
shall terminate, and any portion of the Nonstatutory Stock Option
exercisable by the Participant on the date on which the
Participant&rsquo;s Service terminated may be exercised until the
earlier of (a)&nbsp;the date that is three (3) months after the
date on which the Participant&rsquo;s Service terminated, or
(b)&nbsp;the Option Expiration Date and (3)&nbsp;except as provided
in Section&nbsp;7.4(c), all Restricted Stock Units credited to the
Participant&rsquo;s account shall be forfeited on the date of
termination.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the provisions of Section 7.5(i) through 7.5(iii) above, the Board,
in its sole discretion, may establish different terms and
conditions pertaining to Nonemployee Director Awards.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Extension if Exercise Prevented by Law</i>.&nbsp;</b>
Notwithstanding the foregoing, if the exercise of a Nonstatutory
Stock Option within the applicable time periods set forth in
Section&nbsp;7.5(a) is prevented by the provisions of
Section&nbsp;15 below, the Nonstatutory Stock Option shall remain
exercisable until three (3) months after the date the Participant
is notified by the Company that the Nonstatutory Stock Option is
exercisable, but in any event no later than the Option Expiration
Date.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Extension if Participant Subject to
Section&nbsp;16(b</i>).&nbsp;</b> Notwithstanding the foregoing, if
a sale within the applicable time periods set forth in
Section&nbsp;7.5(a) of shares acquired upon the exercise of the
Nonstatutory Stock Option would subject the Participant to suit
under Section&nbsp;16(b) of the Exchange Act, the Nonstatutory
Stock Option shall remain exercisable until the earliest to occur
of (i)&nbsp;the tenth (10th) day following the date on which a sale
of such shares by the Participant would no longer be subject to
such suit, (ii)&nbsp;the one hundred and ninetieth (190th) day
after the Participant&rsquo;s termination of Service, or
(iii)&nbsp;the Option Expiration Date.<br />
</p>

<p><a name=
"_Toc90274246">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Effect of Change in Control on Nonemployee Director
Awards.&nbsp;</b> Upon the occurrence of a Change in Control,
(i)&nbsp;the vesting of all shares of Restricted Stock granted
pursuant to Section&nbsp;7.1(a) shall be accelerated so that all
such shares become fully vested, (ii)&nbsp;the vesting of
Nonstatutory Stock Options granted pursuant to Section&nbsp;7.3(a)
shall be accelerated and such Nonstatutory Stock Options shall
remain fully exercisable until the Option Expiration Date, and
(iii) all Restricted Stock Units shall be settled in accordance
with Section 7.4(c) as if the Change of Control constituted
Retirement.&nbsp;</a><br />
</p>

<p><a name=
"_Toc90274247">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Right to Decline Nonemployee Director Awards.&nbsp;</b>
Notwithstanding the foregoing, any person may elect not to receive
a Nonemployee Director Award by delivering written notice of such
election to the Board no later than the day prior to the date such
Nonemployee Director Award would otherwise be granted.&nbsp; A
person so declining a Nonemployee Director Award shall receive no
payment or other consideration in lieu of such declined Nonemployee
Director Award.&nbsp; A person who has declined a Nonemployee
Director Award may revoke such election by delivering written
notice of such revocation to the Board no later than the day prior
to the date such Nonemployee Director Award would be
granted.</a><br />
</p>

<p><a name="_Ref57606814"></a><a name=
"_Toc90274248">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;</a>
<b><u>Terms and Conditions of Stock Appreciation
Rights</u>.</b><b><br />
</b></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock
Appreciation Rights shall be evidenced by Award Agreements
specifying the number of shares of Stock subject to the Award, in
such form as the Committee shall from time to time establish.&nbsp;
No SAR or purported SAR shall be a valid and binding obligation of
the Company unless evidenced by a fully executed Award
Agreement.&nbsp; Award Agreements evidencing SARs may incorporate
all or any of the terms of the Plan by reference and shall comply
with and be subject to the following terms and conditions:<br />
</p>

<p><a name=
"_Toc90274249">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Types of SARs Authorized.&nbsp;</b> SARs may be granted in tandem
with all or any portion of a related Option (a <b><i>&ldquo;Tandem
SAR&rdquo;</i></b>) or may be granted independently of any Option
(a <b><i>&ldquo;Freestanding SAR&rdquo;</i></b>).&nbsp; A Tandem
SAR may be granted either concurrently with the grant of the
related Option or at any time thereafter prior to the complete
exercise, termination, expiration or cancellation of such related
Option.</a><br />
</p>

<p><a name=
"_Toc90274250">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Exercise Price.&nbsp;</b> The exercise price for each SAR shall be
established in the discretion of the Committee; provided, however,
that (a)&nbsp;the exercise price per share subject to a Tandem SAR
shall be the exercise price per share under the related Option and
(b)&nbsp;the exercise price per share subject to a Freestanding SAR
shall be not less than the Fair Market Value of a share of Stock on
the effective date of grant of the SAR.</a><br />
</p>

<p><a name=
"_Toc90274251">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Exercisability and Term of SARs.</b></a><b><br />
</b></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Tandem SARs.</i>&nbsp;</b> Tandem SARs shall be exercisable only
at the time and to the extent, and only to the extent, that the
related Option is exercisable, subject to such provisions as the
Committee may specify where the Tandem SAR is granted with respect
to less than the full number of shares of Stock subject to the
related Option.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Freestanding SARs</i></b><i>.</i>&nbsp; Freestanding SARs shall
be exercisable at such time or times, or upon such event or events,
and subject to such terms, conditions, performance criteria and
restrictions as shall be determined by the Committee and set forth
in the Award Agreement evidencing such SAR; provided, however, that
no Freestanding SAR shall be exercisable after the expiration of
ten (10) years after the effective date of grant of such SAR.<br />
</p>

<p><a name="_Ref57607419"></a><a name=
"_Toc90274252">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Deemed Exercise of SARs.&nbsp;</b> If, on the date on which an SAR
would otherwise terminate or expire, the SAR by its terms remains
exercisable immediately prior to such termination or expiration
and, if so exercised, would result in a payment to the holder of
such SAR, then any portion of such SAR which has not previously
been exercised shall automatically be deemed to be exercised as of
such date with respect to such portion.</a><br />
</p>

<p><a name=
"_Toc90274253">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Effect of Termination of Service.&nbsp;</b> Subject to earlier
termination of the SAR as otherwise provided herein and unless
otherwise provided by the Committee in the grant of an SAR and set
forth in the Award Agreement, an SAR shall be exercisable after a
Participant&rsquo;s termination of Service only as provided in the
Award Agreement.</a><br />
</p>

<p><a name=
"_Toc90274254">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Nontransferability of SARs.&nbsp;</b> During the lifetime of the
Participant, an SAR shall be exercisable only by the Participant or
the Participant&rsquo;s guardian or legal representative.&nbsp;
Prior to the exercise of an SAR, the SAR shall not be subject in
any manner to anticipation, alienation, sale, exchange, transfer,
assignment, pledge, encumbrance, or garnishment by creditors of the
Participant or the Participant&rsquo;s beneficiary, except transfer
by will or by the laws of descent and distribution.</a><br />
</p>

<p><a name="_Ref32362569"></a><a name=
"_Toc90274255">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;</a>
<b><u>Terms and Conditions of Restricted Stock
Awards</u>.</b><b><br />
</b></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted
Stock Awards shall be evidenced by Award Agreements specifying the
number of shares of Stock subject to the Award, in such form as the
Committee shall from time to time establish.&nbsp; No Restricted
Stock Award or purported Restricted Stock Award shall be a valid
and binding obligation of the Company unless evidenced by a fully
executed Award Agreement.&nbsp; Award Agreements evidencing
Restricted Stock Awards may incorporate all or any of the terms of
the Plan by reference and shall comply with and be subject to the
following terms and conditions:<br />
</p>

<p><a name=
"_Toc90274256">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Types of Restricted Stock Awards Authorized.&nbsp;</b> Restricted
Stock Awards may or may not require the payment of cash
compensation for the stock.&nbsp; Restricted Stock Awards may be
granted upon such conditions as the Committee shall determine,
including, without limitation, upon the attainment of one or more
Performance Goals described in Section&nbsp;10.4.&nbsp; If either
the grant of a Restricted Stock Award or the lapsing of the
Restriction Period is to be contingent upon the attainment of one
or more Performance Goals, the Committee shall follow procedures
substantially equivalent to those set forth in Sections&nbsp;10.3
through 10.5(a).</a><br />
</p>

<p><a name=
"_Toc90274257">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Purchase Price.&nbsp;</b> The purchase price, if any, for shares of
Stock issuable under each Restricted Stock Award and the means of
payment shall be established by the Committee in its
discretion.&nbsp;</a><br />
</p>

<p><a name=
"_Toc90274258">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Purchase Period.&nbsp;</b> A Restricted Stock Award requiring the
payment of cash consideration shall be exercisable within a period
established by the Committee; provided, however, that no Restricted
Stock Award granted to a prospective Employee, prospective
Consultant or prospective Director may become exercisable prior to
the date on which such person commences Service.</a><br />
</p>

<p><a name="_Ref32362367"></a><a name=
"_Toc90274259">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Vesting and Restrictions on Transfer.&nbsp;</b> Shares issued
pursuant to any Restricted Stock Award may or may not be made
subject to Vesting Conditions based upon the satisfaction of such
Service requirements, conditions, restrictions or performance
criteria, including, without limitation, Performance Goals as
described in Section&nbsp;10.4, as shall be established by the
Committee and set forth in the Award Agreement evidencing such
Award.&nbsp; During any Restriction Period in which shares acquired
pursuant to a Restricted Stock Award remain subject to Vesting
Conditions, such shares may not be sold, exchanged, transferred,
pledged, assigned or otherwise disposed of other than as provided
in the Award Agreement or as provided in Section&nbsp;9.7.&nbsp;
Upon request by the Company, each Participant shall execute any
agreement evidencing such transfer restrictions prior to the
receipt of shares of Stock hereunder and shall promptly present to
the Company any and all certificates representing shares of Stock
acquired hereunder for the placement on such certificates of
appropriate legends evidencing any such transfer
restrictions.</a></p>

<p><a name="_Toc90274260"><br />
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Voting Rights, Dividends and Distributions.&nbsp;</b> Except as
provided in this Section, Section&nbsp;9.4 and any Award Agreement,
during the Restriction Period applicable to shares subject to a
Restricted Stock Award, the Participant shall have all of the
rights of a shareholder of the Company holding shares of Stock,
including the right to vote such shares and to receive all
dividends and other distributions paid with respect to such
shares.&nbsp; However, in the event of a dividend or distribution
paid in shares of Stock or any other adjustment made upon a change
in the capital structure of the Company as described in
Section&nbsp;4.2, any and all new, substituted or additional
securities or other property (other than normal cash dividends) to
which the Participant is entitled by reason of the
Participant&rsquo;s Restricted Stock Award shall be immediately
subject to the same Vesting Conditions as the shares subject to the
Restricted Stock Award with respect to which such dividends or
distributions were paid or adjustments were made.</a><br />
</p>

<p><a name=
"_Toc90274261">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Effect of Termination of Service.&nbsp;</b> Unless otherwise
provided by the Committee in the grant of a Restricted Stock Award
and set forth in the Award Agreement, if a Participant&rsquo;s
Service terminates for any reason, whether voluntary or involuntary
(including the Participant&rsquo;s death or disability), then the
Participant shall forfeit to the Company any shares acquired by the
Participant pursuant to a Restricted Stock Award which remain
subject to Vesting Conditions as of the date of the
Participant&rsquo;s termination of Service in exchange for the
payment of the purchase price, if any, paid by the
Participant.&nbsp; The Company shall have the right to assign at
any time any repurchase right it may have, whether or not such
right is then exercisable, to one or more persons as may be
selected by the Company.</a><br />
</p>

<p><a name="_Ref57607753"></a><a name=
"_Toc90274262">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Nontransferability of Restricted Stock Award Rights.&nbsp;</b>
Prior to the issuance of shares of Stock pursuant to a Restricted
Stock Award, rights to acquire such shares shall not be subject in
any manner to anticipation, alienation, sale, exchange, transfer,
assignment, pledge, encumbrance or garnishment by creditors of the
Participant or the Participant&rsquo;s beneficiary, except transfer
by will or the laws of descent and distribution.&nbsp; All rights
with respect to a Restricted Stock Award granted to a Participant
hereunder shall be exercisable during his or her lifetime only by
such Participant or the Participant&rsquo;s guardian or legal
representative.</a><br />
</p>

<p><a name="_Ref32362274"></a><a name=
"_Toc90274263">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;</a>
<b><u>Terms and Conditions of Performance Awards</u>.</b><b><br />
</b></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performance
Awards shall be evidenced by Award Agreements in such form as the
Committee shall from time to time establish.&nbsp; No Performance
Award or purported Performance Award shall be a valid and binding
obligation of the Company unless evidenced by a fully executed
Award Agreement.&nbsp; Award Agreements evidencing Performance
Awards may incorporate all or any of the terms of the Plan by
reference and shall comply with and be subject to the following
terms and conditions:<br />
</p>

<p><a name=
"_Toc90274264">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Types of Performance Awards Authorized.&nbsp;</b> Performance
Awards may be in the form of either Performance Shares or
Performance Units.&nbsp; Each Award Agreement evidencing a
Performance Award shall specify the number of Performance Shares or
Performance Units subject thereto, the Performance Award Formula,
the Performance Goal(s) and Performance Period applicable to the
Award, and the other terms, conditions and restrictions of the
Award.</a><br />
</p>

<p><a name=
"_Toc90274265">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Initial Value of Performance Shares and Performance
Units.&nbsp;</b> Unless otherwise provided by the Committee in
granting a Performance Award, each Performance Share shall have an
initial value equal to the Fair Market Value of one (1) share of
Stock, subject to adjustment as provided in Section&nbsp;4.2, on
the effective date of grant of the Performance Share.&nbsp; Each
Performance Unit shall have an initial value determined by the
Committee.&nbsp; The final value payable to the Participant in
settlement of a Performance Award determined on the basis of the
applicable Performance Award Formula will depend on the extent to
which Performance Goals established by the Committee are attained
within the applicable Performance Period established by the
Committee.</a><br />
</p>

<p><a name="_Ref32362220"></a><a name=
"_Toc90274266">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Establishment of Performance Period, Performance Goals and
Performance Award Formula.&nbsp;</b> In granting each Performance
Award, the Committee shall establish in writing the applicable
Performance Period, Performance Award Formula and one or more
Performance Goals which, when measured at the end of the
Performance Period, shall determine on the basis of the Performance
Award Formula the final value of the Performance Award to be paid
to the Participant.&nbsp; To the extent compliance with the
requirements under Section&nbsp;162(m) with respect to
&ldquo;performance-based compensation&rdquo; is desired, the
Committee shall establish the Performance Goal(s) and Performance
Award Formula applicable to each Performance Award no later than
the earlier of (a) the date ninety (90) days after the commencement
of the applicable Performance Period or (b) the date on which 25%
of the Performance Period has elapsed, and, in any event, at a time
when the outcome of the Performance Goals remains substantially
uncertain.&nbsp; Once established, the Performance Goals and
Performance Award Formula shall not be changed during the
Performance Period.&nbsp; The Company shall notify each Participant
granted a Performance Award of the terms of such Award, including
the Performance Period, Performance Goal(s) and Performance Award
Formula.</a><br />
</p>

<p><a name="_Ref57607569"></a><a name=
"_Toc90274267">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Measurement of Performance Goals.&nbsp;</b> Performance Goals shall
be established by the Committee on the basis of targets to be
attained (<i>&ldquo;<b>Performance Targets</b>&rdquo;</i>) with
respect to one or more measures of business or financial
performance (each, a <i>&ldquo;<b>Performance
Measure</b>&rdquo;</i>), subject to the following:</a><br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Performance Measures.</i>&nbsp;</b> Performance Measures shall
have the same meanings as used in the Company&rsquo;s financial
statements, or, if such terms are not used in the Company&rsquo;s
financial statements, they shall have the meaning applied pursuant
to generally accepted accounting principles, or as used generally
in the Company&rsquo;s industry.&nbsp; Performance Measures shall
be calculated with respect to the Company and each Subsidiary
Corporation consolidated therewith for financial reporting purposes
or such division or other business unit as may be selected by the
Committee.&nbsp; For purposes of the Plan, the Performance Measures
applicable to a Performance Award shall be calculated in accordance
with generally accepted accounting principles, but prior to the
accrual or payment of any Performance Award for the same
Performance Period and excluding the effect (whether positive or
negative) of any change in accounting standards or any
extraordinary, unusual or nonrecurring item, as determined by the
Committee, occurring after the establishment of the Performance
Goals applicable to the Performance Award.&nbsp; Each such
adjustment, if any, shall be made solely for the purpose of
providing a consistent basis from period to period for the
calculation of Performance Measures in order to prevent the
dilution or enlargement of the Participant&rsquo;s rights with
respect to a Performance Award.&nbsp; Performance Measures may be
one or more of the following, as determined by the Committee:&nbsp;
(i)&nbsp;sales revenue; (ii)&nbsp;gross margin;
(iii)&nbsp;operating margin; (iv)&nbsp;operating income;
(v)&nbsp;pre-tax profit; (vi)&nbsp;earnings before interest, taxes
and depreciation and amortization; (vii)&nbsp;net income;
(viii)&nbsp;expenses; (ix)&nbsp;the market price of the Stock;
(x)&nbsp;earnings per share; (xi)&nbsp;return on shareholder
equity; (xii)&nbsp;return on capital; (xiii)&nbsp;return on net
assets; (xiv)&nbsp;economic value added; and (xv)&nbsp;market
share; (xvi)&nbsp;customer service; (xvii)&nbsp;customer
satisfaction; (xviii)&nbsp;safety; (xix)&nbsp;total shareholder
return; or (xx)&nbsp;such other measures as determined by the
Committee consistent with this Section&nbsp;10.4(a).<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Performance Targets.</i>&nbsp;</b> Performance Targets may
include a minimum, maximum, target level and intermediate levels of
performance, with the final value of a Performance Award determined
under the applicable Performance Award Formula by the level
attained during the applicable Performance Period.&nbsp; A
Performance Target may be stated as an absolute value or as a value
determined relative to a standard selected by the Committee.<br />
</p>

<p><a name="_Ref57607610"></a><a name=
"_Toc90274268">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Settlement of Performance Awards.</b></a><b><br />
</b></p>

<p><a name=
"_Ref57607612">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Determination of Final Value.</i>&nbsp;</b> As soon as
practicable following the completion of the Performance Period
applicable to a Performance Award, the Committee shall certify in
writing the extent to which the applicable Performance Goals have
been attained and the resulting final value of the Award earned by
the Participant and to be paid upon its settlement in accordance
with the applicable Performance Award Formula.</a><br />
</p>

<p><a name=
"_Ref57607922">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Discretionary Adjustment of Award Formula.</i>&nbsp;</b> In its
discretion, the Committee may, either at the time it grants a
Performance Award or at any time thereafter, provide for the
positive or negative adjustment of the Performance Award Formula
applicable to a Performance Award that is not intended to
constitute &ldquo;qualified performance based compensation&rdquo;
to a &ldquo;covered employee&rdquo; within the meaning of
Section&nbsp;162(m) (a <i>&ldquo;Covered Employee&rdquo;</i>) to
reflect such Participant&rsquo;s individual performance in his or
her position with the Company or such other factors as the
Committee may determine.&nbsp; With respect to a Performance Award
intended to constitute qualified performance-based compensation to
a Covered Employee, the Committee shall have the discretion to
reduce some or all of the value of the Performance Award that would
otherwise be paid to the Covered Employee upon its settlement
notwithstanding the attainment of any Performance Goal and the
resulting value of the Performance Award determined in accordance
with the Performance Award Formula.&nbsp;</a><br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
<i>Payment in Settlement of Performance Awards.</i>&nbsp;</b> As
soon as practicable following the Committee&rsquo;s determination
and certification in accordance with Sections&nbsp;10.5(a) and (b),
payment shall be made to each eligible Participant (or such
Participant&rsquo;s legal representative or other person who
acquired the right to receive such payment by reason of the
Participant&rsquo;s death) of the final value of the
Participant&rsquo;s Performance Award.&nbsp; Payment of such amount
shall be made in cash, shares of Stock, or a combination thereof as
determined by the Committee.&nbsp;<br />
</p>

<p><a name=
"_Toc90274269">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Voting Rights, Dividend Equivalent Rights and
Distributions.&nbsp;</b> Participants shall have no voting rights
with respect to shares of Stock represented by Performance Share
Awards until the date of the issuance of such shares, if any (as
evidenced by the appropriate entry on the books of the Company or
of a duly authorized transfer agent of the Company).&nbsp; However,
the Committee, in its discretion, may provide in the Award
Agreement evidencing any Performance Share Award that the
Participant shall be entitled to receive Dividend Equivalents with
respect to the payment of cash dividends on Stock having a record
date prior to the date on which the Performance Shares are settled
or forfeited.&nbsp; Such Dividend Equivalents, if any, shall be
credited to the Participant in the form of additional whole
Performance Shares as of the date of payment of such cash dividends
on Stock.&nbsp; The number of additional Performance Shares
(rounded to the nearest whole number) to be so credited shall be
determined by dividing (a)&nbsp;the amount of cash dividends paid
on such date with respect to the number of shares of Stock
represented by the Performance Shares previously credited to the
Participant by (b)&nbsp;the Fair Market Value per share of Stock on
such date.&nbsp; Dividend Equivalents may be paid currently or may
be accumulated and paid to the extent that Performance Shares
become nonforfeitable, as determined by the Committee.&nbsp;
Settlement of Dividend Equivalents may be made in cash, shares of
Stock, or a combination thereof as determined by the Committee, and
may be paid on the same basis as settlement of the related
Performance Share as provided in Section&nbsp;10.5.&nbsp; Dividend
Equivalents shall not be paid with respect to Performance
Units.&nbsp; In the event of a dividend or distribution paid in
shares of Stock or any other adjustment made upon a change in the
capital structure of the Company as described in Section&nbsp;4.2,
appropriate adjustments shall be made in the Participant&rsquo;s
Performance Share Award so that it represents the right to receive
upon settlement any and all new, substituted or additional
securities or other property (other than normal cash dividends) to
which the Participant would be entitled by reason of the shares of
Stock issuable upon settlement of the Performance Share Award, and
all such new, substituted or additional securities or other
property shall be immediately subject to the same Performance Goals
as are applicable to the Award.</a><br />
</p>

<p><a name=
"_Toc90274270">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Effect of Termination of Service.&nbsp;</b> Unless otherwise
provided by the Committee in the grant of a Performance Award and
set forth in the Award Agreement, the effect of a
Participant&rsquo;s termination of Service on the Performance Award
shall be as follows:</a><br />
</p>

<p>
<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</i>
(a)<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Death or
Disability.</u></i><u>&nbsp;</u> If the Participant&rsquo;s Service
terminates because of the death or Disability of the Participant
before the completion of the Performance Period applicable to the
Performance Award, the final value of the Participant&rsquo;s
Performance Award shall be determined by the extent to which the
applicable Performance Goals have been attained with respect to the
entire Performance Period and shall be prorated based on the number
of months of the Participant&rsquo;s Service during the Performance
Period.&nbsp; Payment shall be made following the end of the
Performance Period in any manner permitted by
Section&nbsp;10.5.<br />
</p>

<p>
<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</i>
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><i>Other Termination of
Service.</i>&nbsp;</b> If the Participant&rsquo;s Service
terminates for any reason except death or Disability before the
completion of the Performance Period applicable to the Performance
Award, such Award shall be forfeited in its entirety; provided,
however, that in the event of an involuntary termination of the
Participant&rsquo;s Service, the Committee, in its sole discretion,
may waive the automatic forfeiture of all or any portion of any
such Award.<br />
</p>

<p><a name=
"_Toc90274271">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Nontransferability of Performance Awards.&nbsp;</b> Prior to
settlement in accordance with the provisions of the Plan, no
Performance Award shall be subject in any manner to anticipation,
alienation, sale, exchange, transfer, assignment, pledge,
encumbrance, or garnishment by creditors of the Participant or the
Participant&rsquo;s beneficiary, except transfer by will or by the
laws of descent and distribution.&nbsp; All rights with respect to
a Performance Award granted to a Participant hereunder shall be
exercisable during his or her lifetime only by such Participant or
the Participant&rsquo;s guardian or legal representative.</a><br />
</p>

<p><a name="_Ref57606706"></a><a name=
"_Toc90274272">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;</a>
<b><u>Terms and Conditions of Restricted Stock Unit
Awards</u>.</b><b><br />
</b></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted
Stock Unit Awards shall be evidenced by Award Agreements specifying
the number of Restricted Stock Units subject to the Award, in such
form as the Committee shall from time to time establish.&nbsp; No
Restricted Stock Unit Award or purported Restricted Stock Unit
Award shall be a valid and binding obligation of the Company unless
evidenced by a fully executed Award Agreement.&nbsp; Award
Agreements evidencing Restricted Stock Units may incorporate all or
any of the terms of the Plan by reference and shall comply with and
be subject to the following terms and conditions:<br />
</p>

<p><a name=
"_Toc90274273">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Grant of Restricted Stock Unit Awards.&nbsp;</b> Restricted Stock
Unit Awards may be granted upon such conditions as the Committee
shall determine, including, without limitation, upon the attainment
of one or more Performance Goals described in
Section&nbsp;10.4.&nbsp; If either the grant of a Restricted Stock
Unit Award or the Vesting Conditions with respect to such Award is
to be contingent upon the attainment of one or more Performance
Goals, the Committee shall follow procedures substantially
equivalent to those set forth in Sections&nbsp;10.3
through&nbsp;10.5(a).</a><br />
</p>

<p><a name="_Ref57606887"></a><a name=
"_Toc90274274">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Vesting.&nbsp;</b> Restricted Stock Units may or may not be made
subject to Vesting Conditions based upon the satisfaction of such
Service requirements, conditions, restrictions or performance
criteria, including, without limitation, Performance Goals as
described in Section&nbsp;10.4, as shall be established by the
Committee and set forth in the Award Agreement evidencing such
Award.</a><br />
</p>

<p><a name="_Ref57608346"></a><a name=
"_Toc90274275">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Voting Rights, Dividend Equivalent Rights and
Distributions.&nbsp;</b> Participants shall have no voting rights
with respect to shares of Stock represented by Restricted Stock
Units until the date of the issuance of such shares (as evidenced
by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company).&nbsp; However, the
Committee, in its discretion, may provide in the Award Agreement
evidencing any Restricted Stock Unit Award that the Participant
shall be entitled to receive Dividend Equivalents with respect to
the payment of cash dividends on Stock having a record date prior
to the date on which Restricted Stock Units held by such
Participant are settled.&nbsp; Such Dividend Equivalents, if any,
shall be paid by crediting the Participant with additional whole
Restricted Stock Units as of the date of payment of such cash
dividends on Stock.&nbsp; The number of additional Restricted Stock
Units (rounded to the nearest whole number) to be so credited shall
be determined by dividing (a) the amount of cash dividends paid on
such date with respect to the number of shares of Stock represented
by the Restricted Stock Units previously credited to the
Participant by (b) the Fair Market Value per share of Stock on such
date.&nbsp; Such additional Restricted Stock Units shall be subject
to the same terms and conditions and shall be settled in the same
manner and at the same time (or as soon thereafter as practicable)
as the Restricted Stock Units originally subject to the Restricted
Stock Unit Award.&nbsp; In the event of a dividend or distribution
paid in shares of Stock or any other adjustment made upon a change
in the capital structure of the Company as described in
Section&nbsp;4.2, appropriate adjustments shall be made in the
Participant&rsquo;s Restricted Stock Unit Award so that it
represents the right to receive upon settlement any and all new,
substituted or additional securities or other property (other than
normal cash dividends) to which the Participant would be entitled
by reason of the shares of Stock issuable upon settlement of the
Award, and all such new, substituted or additional securities or
other property shall be immediately subject to the same Vesting
Conditions as are applicable to the Award.</a><br />
</p>

<p><a name=
"_Toc90274276">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Effect of Termination of Service.&nbsp;</b> Unless otherwise
provided by the Committee in the grant of a Restricted Stock Unit
Award and set forth in the Award Agreement, if a
Participant&rsquo;s Service terminates for any reason, whether
voluntary or involuntary (including the Participant&rsquo;s death
or disability), then the Participant shall forfeit to the Company
any Restricted Stock Units pursuant to the Award which remain
subject to Vesting Conditions as of the date of the
Participant&rsquo;s termination of Service.</a><br />
</p>

<p><a name="_Ref63760272"></a><a name=
"_Toc90274277">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Settlement of Restricted Stock Unit Awards.&nbsp;</b> The Company
shall issue to a Participant on the date on which Restricted Stock
Units subject to the Participant&rsquo;s Restricted Stock Unit
Award vest or on such other date determined by the Committee, in
its discretion, and set forth in the Award Agreement one (1) share
of Stock (and/or any other new, substituted or additional
securities or other property pursuant to an adjustment described in
Section&nbsp;11.3) for each Restricted Stock Unit then becoming
vested or otherwise to be settled on such date, subject to the
withholding of applicable taxes.&nbsp; Notwithstanding the
foregoing, if permitted by the Committee and set forth in the Award
Agreement, the Participant may elect in accordance with terms
specified in the Award Agreement to defer receipt of all or any
portion of the shares of Stock or other property otherwise issuable
to the Participant pursuant to this Section.</a><br />
</p>

<p><a name=
"_Toc90274279">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Nontransferability of Restricted Stock Unit Awards.&nbsp;</b> Prior
to the issuance of shares of Stock in settlement of a Restricted
Stock Unit Award, the Award shall not be subject in any manner to
anticipation, alienation, sale, exchange, transfer, assignment,
pledge, encumbrance, or garnishment by creditors of the Participant
or the Participant&rsquo;s beneficiary, except transfer by will or
by the laws of descent and distribution.&nbsp; All rights with
respect to a Restricted Stock Unit Award granted to a Participant
hereunder shall be exercisable during his or her lifetime only by
such Participant or the Participant&rsquo;s guardian or legal
representative.</a><br />
</p>

<p><a name="_Ref57606527"></a><a name=
"_Toc90274280">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;</a>
<b><u>Deferred Compensation Awards</u>.</b><b><br />
</b></p>

<p><a name=
"_Toc90274281">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Establishment of Deferred Compensation Award Programs.&nbsp;</b>
This Section&nbsp;12 shall not be effective unless and until the
Committee determines to establish a program pursuant to this
Section.&nbsp; The Committee, in its discretion and upon such terms
and conditions as it may determine, may establish one or more
programs pursuant to the Plan under which:</a><br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participants
designated by the Committee who are Insiders or otherwise among a
select group of highly compensated Employees may irrevocably elect,
prior to a date specified by the Committee, to reduce such
Participant&rsquo;s compensation otherwise payable in cash (subject
to any minimum or maximum reductions imposed by the Committee) and
to be granted automatically at such time or times as specified by
the Committee one or more Awards of Stock Units with respect to
such numbers of shares of Stock as determined in accordance with
the rules of the program established by the Committee and having
such other terms and conditions as established by the
Committee.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participants
designated by the Committee who are Insiders or otherwise among a
select group of highly compensated Employees may irrevocably elect,
prior to a date specified by the Committee, to be granted
automatically an Award of Stock Units with respect to such number
of shares of Stock and upon such other terms and conditions as
established by the Committee in lieu of:<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of Stock otherwise issuable to such Participant upon the exercise
of an Option;<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cash
or shares of Stock otherwise issuable to such Participant upon the
exercise of an SAR; or<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cash
or shares of Stock otherwise issuable to such Participant upon the
settlement of a Performance Award or Performance Unit.<br />
</p>

<p><a name=
"_Toc90274282">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Terms and Conditions of Deferred Compensation Awards.&nbsp;</b>
Deferred Compensation Awards granted pursuant to this
Section&nbsp;12 shall be evidenced by Award Agreements in such form
as the Committee shall from time to time establish.&nbsp; No such
Deferred Compensation Award or purported Deferred Compensation
Award shall be a valid and binding obligation of the Company unless
evidenced by a fully executed Award Agreement.&nbsp; Award
Agreements evidencing Deferred Compensation Awards may incorporate
all or any of the terms of the Plan by reference and shall comply
with and be subject to the following terms and
conditions:</a><br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>
Vesting Conditions</i>.&nbsp; Deferred Compensation Awards shall
not be subject to any vesting conditions.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>
Terms and Conditions of Stock Units</i>.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voting
Rights, Dividend Equivalent Rights and Distributions.&nbsp;
Participants shall have no voting rights with respect to shares of
Stock represented by Stock Units until the date of the issuance of
such shares (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the
Company).&nbsp; However, a Participant shall be entitled to receive
Dividend Equivalents with respect to the payment of cash dividends
on Stock having a record date prior to the date on which Stock
Units held by such Participant are settled.&nbsp; Such Dividend
Equivalents shall be paid by crediting the Participant with
additional whole and/or fractional Stock Units as of the date of
payment of such cash dividends on Stock.&nbsp; The method of
determining the number of additional Stock Units to be so credited
shall be specified by the Committee and set forth in the Award
Agreement.&nbsp; Such additional Stock Units shall be subject to
the same terms and conditions and shall be settled in the same
manner and at the same time (or as soon thereafter as practicable)
as the Stock Units originally subject to the Stock Unit
Award.&nbsp; In the event of a dividend or distribution paid in
shares of Stock or any other adjustment made upon a change in the
capital structure of the Company as described in Section&nbsp;4.2,
appropriate adjustments shall be made in the Participant&rsquo;s
Stock Unit Award so that it represents the right to receive upon
settlement any and all new, substituted or additional securities or
other property (other than normal cash dividends) to which the
Participant would be entitled by reason of the shares of Stock
issuable upon settlement of the Award.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Settlement of Stock Unit Awards.&nbsp;</b> A Participant electing
to receive an Award of Stock Units pursuant to this
Section&nbsp;12, shall specify at the time of such election a
settlement date with respect to such Award.&nbsp; The Company shall
issue to the Participant as soon as practicable following the
earlier of the settlement date elected by the Participant or the
date of termination of the Participant&rsquo;s Service, a number of
whole shares of Stock equal to the number of whole Stock Units
subject to the Stock Unit Award.&nbsp; Such shares of Stock shall
be fully vested, and the Participant shall not be required to pay
any additional consideration (other than applicable tax
withholding) to acquire such shares.&nbsp; Any fractional Stock
Unit subject to the Stock Unit Award shall be settled by the
Company by payment in cash of an amount equal to the Fair Market
Value as of the payment date of such fractional share.<br />
</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Nontransferability of Stock Unit Awards.&nbsp;</b> Prior to their
settlement in accordance with the provision of the Plan, no Stock
Unit Award shall be subject in any manner to anticipation,
alienation, sale, exchange, transfer, assignment, pledge,
encumbrance, or garnishment by creditors of the Participant or the
Participant&rsquo;s beneficiary, except transfer by will or by the
laws of descent and distribution.&nbsp; All rights with respect to
a Stock Unit Award granted to a Participant hereunder shall be
exercisable during his or her lifetime only by such Participant or
the Participant&rsquo;s guardian or legal representative.<br />
</p>

<p><a name=
"_Toc90274283">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;</a>
<b><u>Other Stock-Based Awards</u>.</b><b><br />
</b></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition to the Awards set forth in Sections 6 through 12 above,
the Committee, in its sole discretion, may carry out the purpose of
this Plan by awarding Stock-Based Awards as it determines to be in
the best interests of the Company and subject to such other terms
and conditions as it deems necessary and appropriate.<br />
</p>

<p><a name=
"_Toc90274284">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;</a>
<b>Change in Control.</b><b><br />
</b></p>

<p><a name=
"_Toc90274285">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Effect of Change in Control on Options and
SARs<i>.</i>&nbsp;</b></a> <a name="_Ref65583377">Unless otherwise
provided in a fully executed written Award Agreement with the
Participant, upon the occurrence of a Change in Control all
outstanding Options and SARs shall immediately vest and become
exerciseable in full and any shares acquired upon the exercise of
such Options and SARs shall not be subject to any further Vesting
Condition or other conditions.</a><br />
</p>

<p><a name="_Ref57608504"></a><a name="_Ref88382118"></a><a name=
"_Toc90274286">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Effect of Change in Control on Restricted Stock and Other
Awards.&nbsp;</b> Unless otherwise provided in a fully executed
written Award Agreement with the Participant, upon the occurrence
of a Change in Control, the Vesting Condition, Restriction Period
or Performance Goal applicable to the shares subject to a
Restricted Stock Award or other Award held by a Participant whose
Service has not terminated prior to the Change in Control shall be
accelerated and/or waived and the Award shall become payable to the
extent specified in the Award Agreement.&nbsp; Any acceleration,
waiver, payment or the lapsing of any restriction that was
permissible solely by reason of this Section&nbsp;14.2 and the
provisions of the applicable Award Agreement shall be conditioned
upon the Change in Control.</a><br />
</p>

<p><a name="_Ref57607126"></a><a name=
"_Toc90274287">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;</a>
<b><u>Compliance with Securities Law</u>.</b><b><br />
</b></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
grant of Awards and the issuance of shares of Stock pursuant to any
Award shall be subject to compliance with all applicable
requirements of federal, state and foreign law with respect to such
securities and the requirements of any stock exchange or market
system upon which the Stock may then be listed.&nbsp; In addition,
no Award may be exercised or shares issued pursuant to an Award
unless (a)&nbsp;a registration statement under the Securities Act
shall at the time of such exercise or issuance be in effect with
respect to the shares issuable pursuant to the Award or (b)&nbsp;in
the opinion of legal counsel to the Company, the shares issuable
pursuant to the Award may be issued in accordance with the terms of
an applicable exemption from the registration requirements of the
Securities Act.&nbsp; The inability of the Company to obtain from
any regulatory body having jurisdiction the authority, if any,
deemed by the Company&rsquo;s legal counsel to be necessary to the
lawful issuance and sale of any shares hereunder shall relieve the
Company of any liability in respect of the failure to issue or sell
such shares as to which such requisite authority shall not have
been obtained.&nbsp; As a condition to issuance of any Stock, the
Company may require the Participant to satisfy any qualifications
that may be necessary or appropriate, to evidence compliance with
any applicable law or regulation and to make any representation or
warranty with respect thereto as may be requested by the
Company.<br />
</p>

<p><a name=
"_Toc90274288">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;&nbsp;</a>
<b><u>Tax Withholding</u>.</b><b><br />
</b></p>

<p><a name=
"_Toc90274289">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Tax Withholding in General.&nbsp;</b> The Company shall have the
right to deduct from any and all payments made under the Plan, or
to require the Participant, through payroll withholding, cash
payment or otherwise, including by means of a Cashless Exercise or
Net Exercise of an Option, to make adequate provision for, the
federal, state, local and foreign taxes, if any, required by law to
be withheld by the Participating Company Group with respect to an
Award or the shares acquired pursuant thereto.&nbsp; The Company
shall have no obligation to deliver shares of Stock, to release
shares of Stock from an escrow established pursuant to an Award
Agreement, or to make any payment in cash under the Plan until the
Participating Company Group&rsquo;s tax withholding obligations
have been satisfied by the Participant.</a><br />
</p>

<p><a name="_Ref57606983"></a><a name=
"_Toc90274290">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Withholding in Shares.&nbsp;</b> The Company shall have the right,
but not the obligation, to deduct from the shares of Stock issuable
to a Participant upon the exercise or settlement of an Award, or to
accept from the Participant the tender of, a number of whole shares
of Stock having a Fair Market Value, as determined by the Company,
equal to all or any part of the tax withholding obligations of the
Participating Company Group.&nbsp; The Fair Market Value of any
shares of Stock withheld or tendered to satisfy any such tax
withholding obligations shall not exceed the amount determined by
the applicable minimum statutory withholding rates.</a><br />
</p>

<p><a name=
"_Toc90274291">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;&nbsp;</a>
<b><u>Amendment or Termination of Plan</u>.</b><b><br />
</b></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board or the Committee may amend, suspend or terminate the Plan at
any time.&nbsp; However, without the approval of the
Company&rsquo;s shareholders, there shall be (a)&nbsp;no increase
in the maximum aggregate number of shares of Stock that may be
issued under the Plan (except by operation of the provisions of
Section 4.2), (b)&nbsp;no change in the class of persons eligible
to receive Incentive Stock Options, and (c)&nbsp; no other
amendment of the Plan that would require approval of the
Company&rsquo;s shareholders under any applicable law, regulation
or rule.&nbsp; Notwithstanding the foregoing, only the Board may
amend Section&nbsp;7.&nbsp; No amendment, suspension or termination
of the Plan shall affect any then outstanding Award unless
expressly provided by the Board or the Committee.&nbsp; In any
event, no amendment, suspension or termination of the Plan may
adversely affect any then outstanding Award without the consent of
the Participant unless necessary to comply with any applicable law,
regulation or rule.<br />
</p>

<p><a name=
"_Toc90274292">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;&nbsp;</a>
<b><u>Miscellaneous Provisions</u>.</b><b><br />
</b></p>

<p><a name=
"_Toc90274293">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Repurchase Rights<i>.</i>&nbsp;</b> Shares issued under the Plan
may be subject to one or more repurchase options, or other
conditions and restrictions as determined by the Committee in its
discretion at the time the Award is granted.&nbsp; The Company
shall have the right to assign at any time any repurchase right it
may have, whether or not such right is then exercisable, to one or
more persons as may be selected by the Company.&nbsp; Upon request
by the Company, each Participant shall execute any agreement
evidencing such transfer restrictions prior to the receipt of
shares of Stock hereunder and shall promptly present to the Company
any and all certificates representing shares of Stock acquired
hereunder for the placement on such certificates of appropriate
legends evidencing any such transfer restrictions.</a><br />
</p>

<p><a name=
"_Toc90274294">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Provision of Information.&nbsp;</b> Each Participant shall be given
access to information concerning the Company equivalent to that
information generally made available to the Company&rsquo;s common
shareholders.</a><br />
</p>

<p><a name=
"_Toc90274295">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Rights as Employee, Consultant or Director.&nbsp;</b> No person,
even though eligible pursuant to Section&nbsp;5, shall have a right
to be selected as a Participant, or, having been so selected, to be
selected again as a Participant.&nbsp; Nothing in the Plan or any
Award granted under the Plan shall confer on any Participant a
right to remain an Employee, Consultant or Director or interfere
with or limit in any way any right of a Participating Company to
terminate the Participant&rsquo;s Service at any time.&nbsp; To the
extent that an Employee of a Participating Company other than the
Company receives an Award under the Plan, that Award shall in no
event be understood or interpreted to mean that the Company is the
Employee&rsquo;s employer or that the Employee has an employment
relationship with the Company.</a><br />
</p>

<p><a name=
"_Toc90274296">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Rights as a Shareholder.&nbsp;</b> A Participant shall have no
rights as a shareholder with respect to any shares covered by an
Award until the date of the issuance of such shares (as evidenced
by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company).&nbsp; No adjustment
shall be made for dividends, distributions or other rights for
which the record date is prior to the date such shares are issued,
except as provided in Section&nbsp;4.2 or another provision of the
Plan.</a><br />
</p>

<p><a name=
"_Toc90274297">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Fractional Shares.&nbsp;</b> The Company shall not be required to
issue fractional shares upon the exercise or settlement of any
Award.</a><br />
</p>

<p><a name=
"_Toc90274298">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Severability.&nbsp;</b> If any one or more of the provisions (or
any part thereof) of this Plan shall be held invalid, illegal or
unenforceable in any respect, such provision shall be modified so
as to make it valid, legal and enforceable, and the validity,
legality and enforceability of the remaining provisions (or any
part thereof) of the Plan shall not in any way be affected or
impaired thereby.</a><br />
</p>

<p><a name=
"_Toc90274299">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Beneficiary Designation.&nbsp;</b> Subject to local laws and
procedures, each Participant may file with the Company a written
designation of a beneficiary who is to receive any benefit under
the Plan to which the Participant is entitled in the event of such
Participant&rsquo;s death before he or she receives any or all of
such benefit.&nbsp; Each designation will revoke all prior
designations by the same Participant, shall be in a form prescribed
by the Company, and will be effective only when filed by the
Participant in writing with the Company during the
Participant&rsquo;s lifetime.&nbsp; If a married Participant
designates a beneficiary other than the Participant&rsquo;s spouse,
the effectiveness of such designation may be subject to the consent
of the Participant&rsquo;s spouse.&nbsp; If a Participant dies
without an effective designation of a beneficiary who is living at
the time of the Participant&rsquo;s death, the Company will pay any
remaining unpaid benefits to the Participant&rsquo;s legal
representative.</a><br />
</p>

<p><a name=
"_Toc90274300">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Unfunded Obligation.&nbsp;</b> Participants shall have the status
of general unsecured creditors of the Company.&nbsp; Any amounts
payable to Participants pursuant to the Plan shall be unfunded and
unsecured obligations for all purposes, including, without
limitation, Title&nbsp;I of the Employee Retirement Income Security
Act of 1974.&nbsp; No Participating Company shall be required to
segregate any monies from its general funds, or to create any
trusts, or establish any special accounts with respect to such
obligations.&nbsp; The Company shall retain at all times beneficial
ownership of any investments, including trust investments, which
the Company may make to fulfill its payment obligations
hereunder.&nbsp; Any investments or the creation or maintenance of
any trust or any Participant account shall not create or constitute
a trust or fiduciary relationship between the Committee or any
Participating Company and a Participant, or otherwise create any
vested or beneficial interest in any Participant or the
Participant&rsquo;s creditors in any assets of any Participating
Company.&nbsp; The Participants shall have no claim against any
Participating Company for any changes in the value of any assets
which may be invested or reinvested by the Company with respect to
the Plan.&nbsp; Each Participating Company shall be responsible for
making benefit payments pursuant to the Plan on behalf of its
Participants or for reimbursing the Company for the cost of such
payments, as determined by the Company in its sole
discretion.&nbsp; In the event the respective Participating Company
fails to make such payment or reimbursement, a Participant&rsquo;s
(or other individual&rsquo;s) sole recourse shall be against the
respective Participating Company, and not against the
Company.&nbsp; A Participant&rsquo;s acceptance of an Award
pursuant to the Plan shall constitute agreement with this
provision.</a><br />
</p>

<p><a name=
"_Toc90274301">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
Choice of Law.&nbsp;</b> Except to the extent governed by
applicable federal law, the validity, interpretation, construction
and performance of the Plan and each Award Agreement shall be
governed by the laws of the State of California, without regard to
its conflict of law rules.</a></p>

<p></p>

</div>

<br clear="all" />


<hr>


<div>
<p align="center"><u>PLAN HISTORY AND NOTES TO COMPANY</u></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p>December&nbsp;__, 2004</p>
</td>
<td valign="top">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</td>
<td valign="top">
<p>Board adopts Plan with a reserve of ____________________..</p>
</td>
</tr>

<tr>
<td valign="top">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</td>
<td valign="top">
</td>
<td valign="top">
</td>
</tr>

<tr>
<td valign="top">
<p>___________, 2005</p>
</td>
<td valign="top">
</td>
<td valign="top">
<p>Shareholders approve Plan.</p>
</td>
</tr>

<tr>
<td valign="top">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</td>
<td valign="top">
</td>
<td valign="top">
</td>
</tr>

<tr>
<td valign="top">
<p>January 1, 2006</p>
</td>
<td valign="top">
</td>
<td valign="top">
<p>Plan Effective Date</p>
</td>
</tr>
</table>
</div>
</body>
</html>

</TEXT>
</DOCUMENT>
</SUBMISSION>
