<SUBMISSION>
<ACCESSION-NUMBER>0000950149-04-001378
<TYPE>S-8
<PUBLIC-DOCUMENT-COUNT>4
<FILING-DATE>20040818
<EFFECTIVENESS-DATE>20040818
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>WILLIAMS SONOMA INC
<CIK>0000719955
<ASSIGNED-SIC>5700
<IRS-NUMBER>942203880
<STATE-OF-INCORPORATION>CA
<FISCAL-YEAR-END>0131
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>S-8
<ACT>33
<FILE-NUMBER>333-118351
<FILM-NUMBER>04984807
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>3250 VAN NESS AVENUE
<CITY>SAN FRANCISCO
<STATE>CA
<ZIP>94109
<PHONE>415-421-7900
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>3250 VAN NESS AVENUE
<CITY>SAN FRANCISCO
<STATE>CA
<ZIP>94109
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>S-8
<SEQUENCE>1
<FILENAME>f01071sv8.htm
<DESCRIPTION>FORM S-8
<TEXT>
<HTML>
<HEAD>
<TITLE>sv8</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<P align="right"><FONT size="2">As filed with the Securities and Exchange Commission on August 18, 2004<BR>
Registration No.&nbsp;333-_____<BR>
<HR size="1" noshade width="100%" align="left">
</FONT>

<P align="center"><FONT size="4"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B></FONT>

<DIV align="center"><FONT size="3"><B>WASHINGTON, D.C. 20549<BR>
<HR size="1" noshade width="25%" align="center"></B>
</FONT></DIV>

<P align="center"><FONT size="5"><B>FORM S-8</B></FONT>

<DIV align="center"><FONT size="3"><B>REGISTRATION STATEMENT<BR>
UNDER THE SECURITIES ACT OF 1933<BR>
<HR size="1" noshade width="25%" align="center"></B>
</FONT></DIV>

<P align="center"><FONT size="6"><B>WILLIAMS-SONOMA, INC.</B></FONT>

<DIV align="center"><FONT size="2">(Exact Name of Registrant as Specified in Its Charter)
</FONT>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="center" nowrap valign="top"><FONT size="2">California<BR>
(State or Other Jurisdiction<BR>
of Incorporation or Organization)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="CENTER" valign="top"><FONT size="2">
94-2203880<BR>
(I.R.S. Employer Identification No.)</FONT></TD>
</TR>
</TABLE>
</DIV>


<P align="center"><FONT size="2">3250 Van Ness Avenue, San Francisco, California 94109<BR>
(Address of Principal Executive Offices) (Zip Code)
</FONT>


<P align="center"><FONT size="2">Williams-Sonoma, Inc. 2001 Long-Term Incentive Plan<BR>
(Full Title of the Plan)<BR>
<HR size="1" noshade width="25%" align="center">
</FONT>


<P align="center"><FONT size="2">Edward A. Mueller, Chief Executive Officer<BR>
Williams-Sonoma, Inc.<BR>
3250 Van Ness Avenue<BR>
San Francisco, CA 94109<BR>
(Name and Address of Agent For Service)<BR>
<HR size="1" noshade width="25%" align="center">
</FONT>


<P align="center"><FONT size="2">(415)&nbsp;421-7900<BR>
(Telephone Number, Including Area Code, of Agent For Service)<BR>
<HR size="1" noshade width="25%" align="center">
</FONT>


<P align="center"><FONT size="2">Copy to:<BR>
Aaron J. Alter, Esq.<BR>
Wilson Sonsini Goodrich &#038; Rosati<BR>
Professional Corporation<BR>
650 Page Mill Road<BR>
Palo Alto, CA 94304-1050<BR>
(650)&nbsp;493-9300
</FONT>


<P align="center"><HR size="1" noshade width="100%" align="center">


<DIV align="center"><FONT size="2">CALCULATION OF REGISTRATION FEE<BR>
</FONT></DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="14%"></TD>
    <TD width="4%"></TD>
<TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="13%"></TD>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
<TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="15%"></TD>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
<TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="15%"></TD>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
<TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="15%"></TD>
    <TD width="4%"></TD>
</TR>

<TR valign="bottom">
    <TD nowrap align="left" style="border-top: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-top: 1px solid black">&nbsp;</TD>

<td nowrap align="left" style="border-left: 1px solid #000000; border-top: 1px solid black"><font size="1">&nbsp;</font></td>
    <TD nowrap align="left" style="border-top: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-top: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-top: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-top: 1px solid black">&nbsp;</TD>

<td nowrap align="left" style="border-left: 1px solid #000000; border-top: 1px solid black">&nbsp;</td>
    <TD nowrap align="left" style="border-top: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-top: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-top: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-top: 1px solid black">&nbsp;</TD>

<td nowrap align="left" style="border-left: 1px solid #000000; border-top: 1px solid black">&nbsp;</td>
    <TD nowrap align="left" style="border-top: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-top: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-top: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-top: 1px solid black">&nbsp;</TD>

<td nowrap align="left" style="border-left: 1px solid #000000; border-top: 1px solid black">&nbsp;</td>
    <TD nowrap align="left" style="border-top: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-top: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-top: 1px solid black">&nbsp;</TD>
</TR>

<TR  valign="bottom">
    <TD nowrap align="CENTER"><FONT size="1"><B>Title of Securities</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
<td style="border-left: 1px solid #000000"><font size="1">&nbsp;</font></td>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Amount To Be</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
<td style="border-left: 1px solid #000000"><font size="1">&nbsp;</font></td>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Proposed Maximum Offering</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
<td style="border-left: 1px solid #000000"><font size="1">&nbsp;</font></td>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Proposed Maximum</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
<td style="border-left: 1px solid #000000"><font size="1">&nbsp;</font></td>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Amount of</B></FONT></TD>
</TR>


<TR  valign="bottom">
    <TD nowrap align="CENTER"><FONT size="1"><B>To Be Registered</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
<td style="border-left: 1px solid #000000"><font size="1">&nbsp;</font></td>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Registered(1)</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
<td style="border-left: 1px solid #000000"><font size="1">&nbsp;</font></td>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Price Per Share(2)</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
<td style="border-left: 1px solid #000000"><font size="1">&nbsp;</font></td>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Aggregate Offering Price</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
<td style="border-left: 1px solid #000000"><font size="1">&nbsp;</font></td>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Registration Fee</B></FONT></TD>
</TR>








<TR valign="bottom" style="font-size: 4pt">
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <td nowrap align="left" style="border-left: 1px solid #000000; border-bottom: 1px solid black"><font size="1">&nbsp;</font></td>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <td nowrap align="left" style="border-left: 1px solid #000000; border-bottom: 1px solid black">&nbsp;</td>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <td nowrap align="left" style="border-left: 1px solid #000000; border-bottom: 1px solid black">&nbsp;</td>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <td nowrap align="left" style="border-left: 1px solid #000000; border-bottom: 1px solid black">&nbsp;</td>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 4pt">
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <td nowrap align="left" style="border-left: 1px solid #000000"><font size="1">&nbsp;</font></td>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <td nowrap align="left" style="border-left: 1px solid #000000">&nbsp;</td>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <td nowrap align="left" style="border-left: 1px solid #000000">&nbsp;</td>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <td nowrap align="left" style="border-left: 1px solid #000000">&nbsp;</td>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>

</TR>







<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Common Stock,
$.01 par value.....</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
<td style="border-left: 1px solid #000000"><font size="1">&nbsp;</font></td>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="center"><FONT size="2">3,500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
<td style="border-left: 1px solid #000000"><font size="1">&nbsp;</font></td>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center"><FONT size="2">$29.775</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
<td style="border-left: 1px solid #000000"><font size="1">&nbsp;</font></td>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center"><FONT size="2">$104,212,500.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
<td style="border-left: 1px solid #000000"><font size="1">&nbsp;</font></td>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center"><FONT size="2">$13,204.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <td nowrap align="left" style="border-left: 1px solid #000000; border-bottom: 1px solid black"><font size="1">&nbsp;</font></td>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <td nowrap align="left" style="border-left: 1px solid #000000; border-bottom: 1px solid black">&nbsp;</td>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <td nowrap align="left" style="border-left: 1px solid #000000; border-bottom: 1px solid black">&nbsp;</td>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <td nowrap align="left" style="border-left: 1px solid #000000; border-bottom: 1px solid black">&nbsp;</td>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid black">&nbsp;</TD>
</TR>


</TABLE>
</DIV>


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2">(1)</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">Pursuant to Rule 416(a) under the Securities Act of 1933, as amended,
this Registration Statement also covers such additional shares of Common
Stock as may be issued pursuant to the anti-dilution provisions set forth
in the Williams-Sonoma, Inc. 2001 Long-Term Incentive Plan.
</FONT></TD>
</TR>
</TABLE>

<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" nowrap align="right"><FONT size="2">(2)</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">Estimated in accordance with Rule 457(h) under the Securities Act of
1933, as amended, solely for the purpose of calculating the registration
fee based on the price of $29.775 per share, which was the average of the
high and low price per share of Registrant&#146;s common stock as reported on
The New York Stock Exchange on August 13, 2004. The indicated number of
shares to be registered represents additional shares issuable under the
2001 Long-Term Incentive Plan that are not covered by previous
registration statements.
</FONT></TD>
</TR>
</TABLE>


<P align="center"><FONT size="2">&nbsp;
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>




<P align="center"><FONT size="2"><B>INCORPORATION OF PREVIOUS REGISTRATION STATEMENT</B>
</FONT>

<P align="left"><FONT size="2">This Registration Statement on Form S-8 is being filed by Williams-Sonoma, Inc.
(the &#147;Registrant&#148;) to register an additional 3,500,000 shares of common stock
of the Registrant, $0.01 par value (the &#147;Common Stock&#148;), which may be acquired
upon the exercise of stock options granted to certain employees and directors
of the Company under the Registrant&#146;s 2001 Long-Term Incentive Plan (formerly
known as the Registrant&#146;s 2001 Stock Option Plan) (the &#147;Plan&#148;). Pursuant to
General Instruction E of Form S-8, the contents of the Registrant&#146;s
Registration Statement on Form S-8, Registration No.&nbsp;333-58026, filed with the
Securities and Exchange Commission (the &#147;Commission&#148;) on March&nbsp;30, 2001, are
hereby incorporated in this Registration Statement by reference to the extent
not replaced hereby.
</FONT>

<!-- link1 "PART I" -->

<P align="center"><FONT size="2"><B>PART I</B>
</FONT>


<P align="center"><FONT size="2"><B>INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS</B>
</FONT>

<!-- link2 "Item&nbsp;1. Plan Information.*" -->

<P align="left"><FONT size="2"><B>Item&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Plan Information.*</B>
</FONT>

<!-- link2 "Item&nbsp;2. Registrant Information and Employee Plan Annual Information.*" -->

<P align="left"><FONT size="2"><B>Item&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Registrant Information and Employee Plan Annual Information.*</B>
</FONT>

<P align="left"><FONT size="2"><B>*Information Required by Part&nbsp;I of Form S-8. </B>The document(s) setting forth the
information specified in Part&nbsp;I of this Form S-8 will be sent or given to
participants in the Plan as specified by Rule&nbsp;428(b)(1) of the Securities Act
of 1933, as amended (the &#147;Securities Act&#148;). These documents and the documents
incorporated by reference into this Form S-8 pursuant to Item&nbsp;3 of Part&nbsp;II of
this Registration Statement, taken together, constitute a prospectus that meets
the requirements of Section 10(a) of the Securities Act and are on file at
Registrant&#146;s principal executive offices and available, without charge, upon
written request to: Secretary, 3250 Van Ness Avenue, San Francisco, California
94109.
</FONT>

<!-- link1 "PART II" -->

<P align="center"><FONT size="2"><B>PART II</B>
</FONT>


<P align="center"><FONT size="2"><B>INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</B>
</FONT>

<!-- link2 "Item&nbsp;3. Incorporation of Documents by Reference." -->

<P align="left"><FONT size="2"><B>Item&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Incorporation of Documents by Reference.</B>
</FONT>

<P align="left"><FONT size="2">The following documents filed by the Registrant with the Commission are
incorporated by reference in this Registration Statement:
</FONT>


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="4%" nowrap align="right"><FONT size="2">(a)</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">The Registrant&#146;s Annual Report on Form 10-K for the year
ended February&nbsp;1, 2004;
</FONT></TD>
</TR>

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

<TR valign="top">
    <TD width="4%" nowrap align="right"><FONT size="2">(b)</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">The Registrant&#146;s Quarterly Report on Form 10-Q for the
quarter ended May&nbsp;2, 2004;
</FONT></TD>
</TR>

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

<TR valign="top">
    <TD width="4%" nowrap align="right"><FONT size="2">(c)</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">The Registrant&#146;s Definitive Proxy Statement on Schedule&nbsp;14A
filed with the Securities and Exchange Commission on April&nbsp;15, 2004;
</FONT></TD>
</TR>

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

<TR valign="top">
    <TD width="4%" nowrap align="right"><FONT size="2">(d)</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">All other reports filed by the Registrant pursuant to Section
13(a) or 15(d) of the Securities Exchange Act of 1934, as amended
(the &#147;Exchange Act&#148;), since the end of the fiscal year covered by
the annual report referred to in (a)&nbsp;above; and
</FONT></TD>
</TR>

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

<TR valign="top">
    <TD width="4%" nowrap align="right"><FONT size="2">(e)</FONT></TD>
 <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
 <TD><FONT size="2">The descriptions of the Registrant&#146;s Common Stock which are
contained in the Registrant&#146;s registration statements filed under
Section&nbsp;12 of the Exchange Act, including any amendments or reports
filed for the purpose of updating such descriptions.
</FONT></TD>
</TR>
</TABLE>

<P align="left"><FONT size="2">In addition, all documents subsequently filed by the Registrant pursuant to
Sections&nbsp;13(a), 13(c), 14 and 15(d) of the Exchange Act, prior to the filing of
a post-effective amendment which indicates that all securities offered have
been sold or which deregisters all securities then remaining unsold, shall be
deemed to be incorporated by reference in this Registration Statement and to be
part hereof from the date of filing of such documents. Any statement contained
herein
</FONT>

<P align="center"><FONT size="2">&nbsp;
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<P align="left"><FONT size="2">or in a document incorporated or deemed to be incorporated herein by reference
shall be deemed to be modified or superseded for purposes of this Registration
Statement to the extent that a statement contained herein or in any
subsequently filed document pursuant to Sections&nbsp;13(a), 13(c), 14 and 15(d) of
the Exchange Act which also is incorporated or is deemed to be incorporated
herein by reference modifies or supersedes such prior statement. Any statement
so modified or superseded shall not be deemed, except as so modified or
superseded, to constitute a part of this Registration Statement.
</FONT>

<!-- link2 "Item&nbsp;4. Description of Securities." -->

<P align="left"><FONT size="2"><B>Item&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;Description of Securities.</B>
</FONT>

<P align="left"><FONT size="2">Not applicable.
</FONT>

<!-- link2 "Item&nbsp;5. Interests of Named Experts and Counsel." -->

<P align="left"><FONT size="2"><B>Item&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;Interests of Named Experts and Counsel.</B>
</FONT>

<P align="left"><FONT size="2">Not applicable.
</FONT>

<!-- link2 "Item&nbsp;6. Indemnification of Directors and Officers." -->

<P align="left"><FONT size="2"><B>Item&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;Indemnification of Directors and Officers.</B>
</FONT>

<P align="left"><FONT size="2">Section&nbsp;309(c) of the California General Corporation Law (the &#147;CGCL&#148;) permits a
provision in the articles of incorporation eliminating or limiting, with
certain exceptions, the personal liability of a director to the corporation or
its shareholders for monetary damages for breach of fiduciary duty as a
director. On May&nbsp;28, 2003, the shareholders of the Registrant approved an
amendment to Article&nbsp;V of the Williams-Sonoma, Inc. Restated Articles of
Incorporation, as amended. The amendment authorizes the Registrant to
indemnify its agents (as defined in Section 317(a) of the CGCL) to the fullest
extent permissible under California law. The Registrant filed the amendment
with the California Secretary of State on July&nbsp;23, 2003.
</FONT>

<P align="left"><FONT size="2">Section&nbsp;317 of the CGCL provides for the indemnification of any agent of a
corporation (as defined in Section 317(a) of the CGCL) under certain
circumstances. Section&nbsp;204(a)(11) of the CGCL allows for the indemnification
of agents for breach of duty in excess of the indemnification provided for
agents in Section&nbsp;317 of the CGCL, but prohibits the Registrant from
indemnifying agents for acts, omissions or transactions that a director may not
be indemnified for as set forth in Section&nbsp;204(a)(10) of the CGCL or for
circumstances for which indemnity is expressly prohibited by Section&nbsp;317 of the
CGCL.
</FONT>

<P align="left"><FONT size="2">Consistent with California law, Section&nbsp;5.5(a) of the Registrant&#146;s Restated
Bylaws, as amended (the &#147;Bylaws&#148;), requires the Registrant to indemnify its
directors and officers, and grants the Registrant the authority to indemnify
its employees and other agents, in each case to the fullest extent permitted by
California law, against all expenses, liability and loss reasonably incurred or
suffered by such person in connection with any Proceeding (as defined in
Section&nbsp;5.5(a) of the Bylaws) arising by reason of the fact that he or she, or
a person of whom he or she is the legal representative, is or was a director or
officer of the Registrant or is or was serving (during such person&#146;s tenure as
director or officer) at the request of the Registrant, any other corporation,
partnership, joint venture, trust or other enterprise in any capacity, whether
the basis of a Proceeding is an alleged action in an official capacity as a
director or officer or in any other capacity while serving as director or
officer. Pursuant to California law and the Bylaws, the Registrant is required
to indemnify directors, officers, employees and other agents against expenses
actually and reasonably incurred by them if that person acted in good faith and
in a manner the person reasonably believed to be in the best interests of the
Registrant and, in the case of a criminal proceeding, had no reasonable cause
to believe the conduct of the person was unlawful.
</FONT>

<P align="left"><FONT size="2">Section&nbsp;317(i) of the CGCL also provides that a corporation shall have the
power to purchase and maintain insurance on behalf of any agent (as defined in
Section 317(a) of the CGCL) of the corporation against any liability asserted
against or incurred by the agent in such capacity or arising out of the agent&#146;s
status as such whether or not the corporation would have the power to indemnify
the agent against that liability under Section&nbsp;317 of the CGCL. The Registrant
maintains director&#146;s and officer&#146;s liability insurance insuring the
Registrant&#146;s directors and officers against certain liabilities and expenses
incurred by such person in their capacities as such, and insuring the
Registrant under certain circumstances in the event that indemnification
payments are made by the Registrant to such directors and officers.
</FONT>



<P align="center"><FONT size="2">&nbsp;
</FONT>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>



<!-- link2 "Item&nbsp;7. Exemption from Registration Claimed." -->

<P align="left"><FONT size="2"><B>Item&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;Exemption from Registration Claimed.</B>
</FONT>

<P align="left"><FONT size="2">Not applicable.
</FONT>

<!-- link2 "Item&nbsp;8. Exhibits." -->

<P align="left"><FONT size="2"><B>Item&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;Exhibits.</B>
</FONT>

<DIV align="left">
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%">
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<TR  valign="bottom">
    <TD nowrap><FONT size="1"><B><u>Exhibit No.</u></B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" colspan="3"><FONT size="1"><B><u>Description</u></B></FONT></TD>
</TR>

<TR valign="bottom">
    <TD align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD align="right"><FONT size="2">4.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left"><FONT size="2">Williams-Sonoma, Inc. 2001 Long-Term Incentive Plan</FONT></TD>
</TR>

<TR valign="bottom">
    <TD align="right"><FONT size="2">5.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left"><FONT size="2">Opinion of Wilson Sonsini Goodrich &#038; Rosati, Professional Corporation</FONT></TD>
</TR>

<TR valign="bottom">
    <TD align="right"><FONT size="2">23.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left"><FONT size="2">Consent of Deloitte &#038; Touche LLP</FONT></TD>
</TR>

<TR valign="bottom">
    <TD align="right"><FONT size="2">23.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left"><FONT size="2">Consent of Wilson Sonsini Goodrich &#038; Rosati, Professional Corporation (contained in Exhibit 5.1)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD align="right"><FONT size="2">24.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left"><FONT size="2">Power of Attorney (contained on signature page).</FONT></TD>
</TR>
</TABLE>
</DIV>

<!-- link2 "Item&nbsp;9. Undertakings." -->

<P align="left"><FONT size="2"><B>Item&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;Undertakings.</B>
</FONT>

<P align="left"><FONT size="2">(a)&nbsp;The Registrant hereby undertakes:
</FONT>

<P align="left"><FONT size="2">(1)&nbsp;To file, during any period in which offers or sales are being made, a
post-effective amendment to this Registration Statement (i)&nbsp;to include any
prospectus required by Section&nbsp;10(a)(3) of the Securities Act, (ii)&nbsp;to reflect
in the prospectus any facts or events arising after the effective date of the
Registration Statement (or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represent a fundamental change in the
information set forth in the Registration Statement, and (iii)&nbsp;to include any
material information with respect to the plan of distribution not previously
disclosed in the Registration Statement or any material change to such
information in the Registration Statement; provided, however, that (a)(1)(i)
and (a)(1)(ii) above do not apply if the information required to be included in
a post-effective amendment by those paragraphs is contained in the periodic
reports filed with or furnished to the Commission by the Registrant pursuant to
Section&nbsp;13 or Section 15(d) of the Exchange Act that are incorporated by
reference into this Registration Statement.
</FONT>

<P align="left"><FONT size="2">(2)&nbsp;That, for the purpose of determining any liability under the Securities
Act, each such post-effective amendment shall be deemed to be a new
Registration Statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.
</FONT>

<P align="left"><FONT size="2">(3)&nbsp;To remove from registration by means of a post-effective amendment any of
the securities being registered which remain unsold at the termination of the
offering.
</FONT>

<P align="left"><FONT size="2">(b)&nbsp;The Registrant hereby undertakes that, for purposes of determining any
liability under the Securities Act, each filing of the Registrant&#146;s annual
report pursuant to Section 13(a) or Section 15(d) of the Exchange Act (and,
where applicable, each filing of an employee benefit plan&#146;s annual report
pursuant to Section 15(d) of the Exchange Act) that is incorporated by
reference in the Registration Statement shall be deemed to be a new
Registration Statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.
</FONT>

<P align="left"><FONT size="2">(c)&nbsp;Insofar as indemnification for liabilities arising under the Securities Act
may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a director, officer or controlling
person of the Registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the Registrant will, unless in
the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the
Securities Act and will be governed by the final adjudication of such issue.
</FONT>



<P align="center"><FONT size="2">&nbsp;
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>



<!-- link1 "SIGNATURES" -->

<P align="center"><FONT size="2"><B>SIGNATURES</B>
</FONT>

<P align="left"><FONT size="2">Pursuant to the requirements of the Securities Act, the Registrant certifies
that it has reasonable grounds to believe that it meets all of the requirements
for filing on Form S-8 and has duly caused this Registration Statement to be
signed on its behalf by the undersigned, thereunto duly authorized, in the city
of San Francisco, State of California, on this 18th day of August, 2004.
</FONT>

<DIV align="right">
<TABLE cellspacing="0" border="0" cellpadding="0" width="45%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD colspan="3" align="left" valign="top"><FONT size="2">
WILLIAMS-SONOMA, INC.</FONT></TD>
</TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD align="left" nowrap valign="top"><FONT size="2">By:<BR>
Name:<BR>
Title:</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
/s/ Edward A. Mueller<BR>
</FONT><HR size="1" noshade><FONT size="2">
Edward A. Mueller<BR>
<HR size="1" noshade>
Chief Executive Officer<BR>
<HR size="1" noshade></FONT></TD>
</TR>
</TABLE>
</DIV>

<P align="left"><FONT size="2">KNOW ALL PERSONS BY THESE PRESENT that each individual whose signature appears
below constitutes and appoints Edward A. Mueller and Sharon L. McCollam, and
each of them, acting individually, as his or her true and lawful
attorneys-in-fact and agents with full power of substitution and
resubstitution, for him or her in any and all capacities, to sign any and all
amendments (including post-effective amendments) to this Registration
Statement, and to file the same, with all exhibits thereto, and all documents
in connection therewith, with the Securities and Exchange Commission, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or their
substitutes, may lawfully do or cause to be done by virtue hereof.
</FONT>

<P align="left"><FONT size="2">Pursuant to the requirements of the Securities Act this Registration Statement
has been signed by the following persons in the capacities indicated on August 18, 2004.
</FONT>

<DIV align="left">
<TABLE cellspacing="0" border="0" cellpadding="0" width="90%">
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="57%">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="center" nowrap valign="top"><FONT size="2"><u>Name</u></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">
<u>Title</u></font></TD>
</TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD align="center" nowrap valign="top"><FONT size="2">/s/ W. Howard Lester<BR>
</FONT><HR size="1" noshade><FONT size="2">
W. Howard Lester</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Chairman of the Board and Director</FONT></TD>
</TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD align="center" nowrap valign="top"><FONT size="2">/s/ Edward A. Mueller<BR>
</FONT><HR size="1" noshade><FONT size="2">
Edward A. Mueller</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Chief Executive Officer and Director<BR>
(principal executive officer)</FONT></TD>
</TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD align="center" nowrap valign="top"><FONT size="2">/s/ Sharon L. McCollam<BR>
</FONT><HR size="1" noshade><FONT size="2">
Sharon L. McCollam</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Executive Vice President, Chief Financial Officer<BR>
(principal financial officer and principal accounting officer)</FONT></TD>
</TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD align="center" nowrap valign="top"><FONT size="2">/s/ Sanjiv Ahuja<BR>
</FONT><HR size="1" noshade><FONT size="2">
Sanjiv Ahuja</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Director</FONT></TD>
</TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD align="center" nowrap valign="top"><FONT size="2">/s/ Adrian D.P. Bellamy<BR>
</FONT><HR size="1" noshade><FONT size="2">
Adrian D.P. Bellamy</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Director</FONT></TD>
</TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD align="center" nowrap valign="top"><FONT size="2">/s/ Patrick J. Connolly<BR>
</FONT><HR size="1" noshade><FONT size="2">
Patrick J. Connolly</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Director</FONT></TD>
</TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD align="center" nowrap valign="top"><FONT size="2">/s/ Jeanne P. Jackson<BR>
</FONT><HR size="1" noshade><FONT size="2">
Jeanne P. Jackson</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Director</FONT></TD>
</TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD align="center" nowrap valign="top"><FONT size="2">/s/ Michael R. Lynch<BR>
</FONT><HR size="1" noshade><FONT size="2">
Michael R. Lynch</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Director</FONT></TD>
</TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD align="center" nowrap valign="top"><FONT size="2">/s/ Richard T. Robertson<BR>
</FONT><HR size="1" noshade><FONT size="2">
Richard T. Robertson</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Director</FONT></TD>
</TR>
</TABLE>
</DIV>



<P align="center"><FONT size="2">&nbsp;
</FONT>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<!-- link1 "EXHIBIT INDEX" -->

<P align="center"><FONT size="2"><B>EXHIBIT INDEX</B>
</FONT>

<DIV align="left">
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%">
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<TR  valign="bottom">
    <TD nowrap><FONT size="1"><B><u>Exhibit No.</u></B></FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" colspan="3"><FONT size="1"><B><u>Description</u></B></FONT></TD>
</TR>

<TR valign="bottom">
    <TD align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD align="right"><FONT size="2">4.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left"><FONT size="2">Williams-Sonoma, Inc. 2001 Long-Term Incentive Plan</FONT></TD>
</TR>

<TR valign="bottom">
    <TD align="right"><FONT size="2">5.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left"><FONT size="2">Opinion of Wilson Sonsini Goodrich &#038; Rosati, Professional Corporation</FONT></TD>
</TR>

<TR valign="bottom">
    <TD align="right"><FONT size="2">23.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left"><FONT size="2">Consent of Deloitte &#038; Touche LLP</FONT></TD>
</TR>

<TR valign="bottom">
    <TD align="right"><FONT size="2">23.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left"><FONT size="2">Consent of Wilson Sonsini Goodrich &#038; Rosati, Professional Corporation (contained in Exhibit 5.1)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD align="right"><FONT size="2">24.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left"><FONT size="2">Power of Attorney (contained on signature page).</FONT></TD>
</TR>
</TABLE>
</DIV>




<P align="center"><FONT size="2">&nbsp;
</FONT>


</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.1
<SEQUENCE>2
<FILENAME>f01071exv4w1.htm
<DESCRIPTION>EXHIBIT 4.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv4w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="right">
<FONT size="2">EXHIBIT 4.1
</FONT>

<P align="center">
<B><FONT size="2">Williams-Sonoma, Inc.</FONT></B>

<P align="center">
<B><FONT size="2">2001 Long-Term Incentive Plan</FONT></B>

<P align="center">
<B><FONT size="2">amending and restating the 2001 Stock Option
Plan effective as of May&nbsp;19, 2004</FONT></B>

<P align="center">
<B><FONT size="2">SECTION 1.</FONT></B>

<P align="center">
<B><FONT size="2">PURPOSES AND DEFINITIONS</FONT></B>

<P align="left">
<FONT size="2">(a)&nbsp;<I>Purposes.</I> The purposes of the
Plan are (i)&nbsp;to attract, retain and incent talented
personnel with respect to positions of substantial
responsibility at the Company and any Subsidiary; and
(ii)&nbsp;to enable the officers, key employees and Non-employee
Directors, upon whose judgment, initiative and efforts the
Company largely depends for the successful conduct of its
business, to acquire a proprietary interest in the Company.
</FONT>

<P align="left">
<FONT size="2">(b)&nbsp;<I>Effect of Amendment and
Restatement.</I> The Plan, as hereby amended and restated,
applies to Awards made on or after the Effective Date. With
respect to Awards made prior to the Effective Date, the 2004
amendment and restatement of the Plan only applies to the extent
that it (i)&nbsp;does not impair the rights of an optionee,
unless otherwise agreed in writing by any such optionee and the
Company, and (ii)&nbsp;does not enlarge the rights of an
optionee to the extent such enlargement would disqualify an
outstanding Incentive Stock Option or give rise to a
compensation expense for financial accounting purposes.
</FONT>

<P align="left">
<FONT size="2">(c)&nbsp;<I>Definitions.</I> The following terms
are defined as set forth below:
</FONT>

<P align="left">
<FONT size="2">&#147;Administrator&#148; means the Committee
described in Section&nbsp;2.
</FONT>

<P align="left">
<FONT size="2">&#147;Annual Revenue&#148; means the
Company&#146;s or a business unit&#146;s net sales for the
Fiscal Year, determined in accordance with generally accepted
accounting principles; provided, however, that prior to the
Fiscal Year, the Administrator shall determine whether any
significant item(s) shall be excluded or included from the
calculation of Annual Revenue with respect to one or more
Participants.
</FONT>

<P align="left">
<FONT size="2">&#147;Applicable Laws&#148; means the
requirements relating to the administration of equity
compensation plans under U.S. state corporate laws, U.S. federal
and state securities laws, the Code, any stock exchange or
quotation system on which the Common Stock is listed or quoted
and the applicable laws of any foreign country or jurisdiction
where Awards are granted under the Plan.
</FONT>

<P align="left">
<FONT size="2">&#147;Award&#148; or &#147;Awards,&#148; except
where referring to a particular category of grant under the
Plan, shall include Incentive Stock Options, Non-Qualified Stock
Options, Restricted Stock Awards and Deferred Stock Awards.
</FONT>

<P align="left">
<FONT size="2">&#147;Award Agreement&#148; means a written
agreement between the Company and the recipient of an Award
specifying the terms and conditions of the Award. Each Award
Agreement is subject to the terms and conditions of this Plan.
</FONT>

<P align="left">
<FONT size="2">&#147;Awarded Stock&#148; means the Common Stock
subject to an Award.
</FONT>

<P align="left">
<FONT size="2">&#147;Board&#148; means the Board of Directors of
the Company.
</FONT>

<P align="left">
<FONT size="2">&#147;Cash Position&#148; means the
Company&#146;s level of cash and cash equivalents.
</FONT>

<P align="left">
<FONT size="2">&#147;Code&#148; means the Internal Revenue Code
of 1986, as amended, and any successor tax code, along with
related rules and regulations.
</FONT>

<P align="left">
<FONT size="2">&#147;Committee&#148; means the Committee of the
Board referred to in Section&nbsp;2.
</FONT>

<P align="left">
<FONT size="2">&#147;Company&#148; means Williams-Sonoma, Inc.,
a California corporation, and any successor thereto.
</FONT>

<P align="left">
<FONT size="2">&#147;Disability&#148; means total and permanent
disability as defined in Section&nbsp;22(e)(3) of the Code.
</FONT>

<P><HR size="5" noshade><P>

<DIV align="left">
<FONT size="2">[EXHIBITS TAG]
</FONT>
</DIV>

<P><HR size="5" noshade><P>

<P align="center"><FONT size="2">&nbsp;
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="left">
<FONT size="2">&#147;Deferred Stock Award&#148; means an Award
granted pursuant to Section&nbsp;7.
</FONT>

<P align="left">
<FONT size="2">&#147;Earnings Per Share&#148; means as to any
Fiscal Year, the Company&#146;s or a business unit&#146;s Net
Income, divided by a weighted average number of common shares
outstanding and dilutive common equivalent shares deemed
outstanding, determined in accordance with generally accepted
accounting principles.
</FONT>

<P align="left">
<FONT size="2">&#147;Effective Date&#148; means the date of the
Company&#146;s 2004 annual shareholders meeting.
</FONT>

<P align="left">
<FONT size="2">&#147;Exchange Act&#148; means the Securities
Exchange Act of 1934, as amended from time to time.
</FONT>

<P align="left">
<FONT size="2">&#147;Fair Market Value&#148; means, as of any
date, the closing sales price for a share of Stock (or the
closing bid, if no sales are reported) as quoted on the New York
Stock Exchange on the last market trading day prior to the day
of determination, as reported in the Wall Street Journal or any
other source the Administrator considers reliable, or, if the
shares of Stock cease to be traded on the New York Stock
Exchange, the value which the Administrator determines most
closely reflects the fair market value of the shares.
</FONT>

<P align="left">
<FONT size="2">&#147;Fiscal Year&#148; means a fiscal year of
the Company.
</FONT>

<P align="left">
<FONT size="2">&#147;Incentive Stock Option&#148; means any
Stock Option that is intended to qualify as, and is designated
in writing in the related Option Award agreement as intending to
constitute, an &#147;incentive stock option&#148; as defined in
Section 422 of the Code.
</FONT>

<P align="left">
<FONT size="2">&#147;Net Income&#148; means as to any Fiscal
Year, the income after taxes of the Company or a business unit
for the Fiscal Year determined in accordance with generally
accepted accounting principles, provided that prior to the
Fiscal Year, the Administrator shall determine whether any
significant item(s) shall be included or excluded from the
calculation of Net Income with respect to one or more
Participants.
</FONT>

<P align="left">
<FONT size="2">&#147;Non-employee Director&#148; means a member
of the Board who is not also an employee of the Company or any
Subsidiary.
</FONT>

<P align="left">
<FONT size="2">&#147;Non-Qualified Stock Option&#148; means any
Stock Option that is not an Incentive Stock Option.
</FONT>

<P align="left">
<FONT size="2">&#147;Operating Cash Flow&#148; means the
Company&#146;s or a business unit&#146;s sum of Net Income plus
depreciation and amortization less capital expenditures plus
changes in working capital comprised of accounts receivable,
inventories, other current assets, trade accounts payable,
accrued expenses, product warranty, advance payments from
customers and long-term accrued expenses, determined in
accordance with generally acceptable accounting principles.
</FONT>

<P align="left">
<FONT size="2">&#147;Operating Income&#148; means the
Company&#146;s or a business unit&#146;s income from operations
but excluding any unusual items, determined in accordance with
generally accepted accounting principles.
</FONT>

<P align="left">
<FONT size="2">&#147;Parent&#148; means a &#147;parent
corporation,&#148; whether now or hereafter existing, as defined
in Section&nbsp;424(e) of the Code.
</FONT>

<P align="left">
<FONT size="2">&#147;Participant&#148; means the holder of an
outstanding Award granted under the Plan.
</FONT>

<P align="left">
<FONT size="2">&#147;Performance Goals&#148; means the goal(s)
(or combined goal(s)) determined by the Administrator (in its
discretion) to be applicable to a Participant with respect to an
Award. As determined by the Administrator, the Performance Goals
applicable to an Award may provide for a targeted level or
levels of achievement using one or more of the following
measures: (a)&nbsp;Annual Revenue, (b)&nbsp;Cash Position,
(c)&nbsp;Earnings Per Share, (d)&nbsp;Net Income,
(e)&nbsp;Operating Cash Flow, (f)&nbsp;Operating Income,
(g)&nbsp;Return on Assets, (h)&nbsp;Return on Equity, (i) Return
on Sales, and (j)&nbsp;Total Shareholder Return. The Performance
Goals may differ from Participant to Participant and from award
to award.
</FONT>

<P align="left">
<FONT size="2">&#147;Plan&#148; means this 2001 Long-Term
Incentive Plan, as amended and restated on the Effective Date.
</FONT>

<P align="left">
<FONT size="2">&#147;Restricted Stock Award&#148; means an Award
granted pursuant to Section&nbsp;6.
</FONT>

<P align="left">
<FONT size="2">&#147;Return on Assets&#148; means the percentage
equal to the Company&#146;s or a business unit&#146;s Operating
Income before incentive compensation, divided by average net
Company or business unit, as applicable, assets, determined in
accordance with generally accepted accounting principles.
</FONT>

<P align="center"><FONT size="2">&nbsp;
</FONT>

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<P align="left">
<FONT size="2">&#147;Return on Equity&#148; means the percentage
equal to the Company&#146;s Net Income divided by average
shareholder&#146;s equity, determined in accordance with
generally accepted accounting principles.
</FONT>

<P align="left">
<FONT size="2">&#147;Return on Sales&#148; means the percentage
equal to the Company&#146;s or a business unit&#146;s Operating
Income before incentive compensation, divided by the
Company&#146;s or the business unit&#146;s, as applicable,
revenue, determined in accordance with generally accepted
accounting principles.
</FONT>

<P align="left">
<FONT size="2">&#147;Rule&nbsp;16b-3&#148; means Rule&nbsp;16b-3
promulgated under the Exchange Act, and any future regulation
amending, supplementing or superseding such regulation.
</FONT>

<P align="left">
<FONT size="2">&#147;Stock&#148; means the common stock, $.01
par value per share, of the Company, subject to adjustments
pursuant to Section&nbsp;3.
</FONT>

<P align="left">
<FONT size="2">&#147;Stock Option&#148; means any option to
purchase shares of Stock granted pursuant to Section&nbsp;5 or
previously granted under this Plan prior to its 2004 amendment
and restatement.
</FONT>

<P align="left">
<FONT size="2">&#147;Subsidiary&#148; means a &#147;subsidiary
corporation,&#148; whether now or hereafter existing, as defined
in Section&nbsp;424(f) of the Code.
</FONT>

<P align="left">
<FONT size="2">&#147;Total Shareholder Return&#148; means the
total return (change in share price plus reinvestment of any
dividends) of a share of Stock.
</FONT>

<P align="center">
<B><FONT size="2">SECTION 2.</FONT></B>

<P align="center">
<B><FONT size="2">ADMINISTRATION OF PLAN; ADMINISTRATOR
AUTHORITY TO SELECT</FONT></B>

<DIV align="center">
<B><FONT size="2">PARTICIPANTS AND DETERMINE AWARDS</FONT></B>
</DIV>

<P align="left">
<FONT size="2">(a)&nbsp;<I>Committee.</I> The Plan shall be
administered by a committee of not fewer than two
(2)&nbsp;Non-employee Directors (the &#147;Administrator&#148;).
To the extent desirable to qualify transactions hereunder as
exempt under Rule&nbsp;16b-3, each member of the Committee shall
be a &#147;non-employee director&#148; within the meaning of
Rule&nbsp;16b-3(b)(3)(i) promulgated under the Exchange Act, or
any successor definition. To the extent that the Administrator
determines it to be desirable to qualify Options granted
hereunder as &#147;performance-based compensation&#148; within
the meaning of Section&nbsp;162(m) of the Code, each member of
the Committee shall also be an &#147;outside director&#148;
within the meaning of Section&nbsp;162(m) of the Code and the
regulations (including temporary and proposed regulations)
promulgated thereunder. In addition, each member of the
Committee shall meet the then applicable requirements and
criteria of the New&nbsp;York Stock Exchange (or other market on
which the Stock then trades) for qualification as an
&#147;independent director.&#148;
</FONT>

<P align="left">
<FONT size="2">(b)&nbsp;<I>Delegation by the Administrator.</I>
The Administrator, in its sole discretion and on such terms and
conditions as it may provide, may delegate all or any part of
its authority and powers under the Plan to two or more Directors
of the Company; provided, however, that the Administrator may
not delegate its authority and powers (a)&nbsp;with respect to
any person who, with respect to the Stock, is subject to
Section&nbsp;16 of the Exchange Act, or (b)&nbsp;in any way
which would jeopardize the Plan&#146;s qualification under
Applicable Laws.
</FONT>

<P align="left">
<FONT size="2">(c)&nbsp;<I>Powers of Administrator.</I> The
Administrator shall have the power and authority to grant Awards
consistent with the terms of the Plan, including the power and
authority:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(i)&nbsp;to select the individuals to whom Awards
    may from time to time be granted;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(ii)&nbsp;to determine the time or times of
    grant, and the extent, if any, of Incentive Stock Options,
    Non-Qualified Stock Options, Restricted Stock Awards and
    Deferred Stock Awards, or any combination of the foregoing,
    granted to any one or more Participants;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(iii)&nbsp;to determine the number of shares of
    Stock to be covered by any Award;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(iv)&nbsp;to determine and modify from time to
    time the terms and conditions, including restrictions,
    consistent with the terms of the Plan, of any Award, which terms
    and conditions may differ among
    </FONT></TD>
</TR>

</TABLE>

<P><HR size="5" noshade><P>

<DIV align="left">
<FONT size="2">[EXHIBITS TAG]
</FONT>
</DIV>

<P><HR size="5" noshade><P>

<P align="center"><FONT size="2">&nbsp;
</FONT>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">individual Awards and Participants, and to
    approve the form of written instruments evidencing
    the&nbsp;Awards;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(v)&nbsp;to accelerate at any time the
    exercisability or vesting of all or any portion of any Award;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(vi)&nbsp;subject to the provisions of
    Section&nbsp;5(a)(iii), to extend at any time the
    post-termination period in which Stock Options may be exercised;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(vii)&nbsp;to determine at any time whether, to
    what extent, and under what circumstances Stock and other
    amounts payable with respect to an Award shall be deferred
    either automatically or at the election of the Participant and
    whether and to what extent the Company shall pay or credit
    amounts constituting deemed interest (at rates determined by the
    Administrator) or dividends or deemed dividends on such
    deferrals;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(viii)&nbsp;to develop, approve and utilize forms
    of notices, Award Agreements and similar materials for
    administration and operation of the Plan; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(ix)&nbsp;at any time to adopt, alter and repeal
    such rules, guidelines and practices for administration of the
    Plan and for its own acts and proceedings as the Administrator
    shall deem advisable; to interpret the terms and provisions of
    the Plan and any Award (including related written instruments);
    to make all determinations it deems necessary or advisable for
    the administration of the Plan; to decide all disputes arising
    in connection with the Plan; and to otherwise supervise the
    administration of the Plan.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">All decisions and interpretations of the
Administrator shall be made in the Administrator&#146;s sole and
absolute discretion and shall be final and binding on all
persons, including the Company and Plan&nbsp;Participants.
</FONT>

<P align="center">
<B><FONT size="2">SECTION 3.</FONT></B>

<P align="center">
<B><FONT size="2">STOCK ISSUABLE UNDER THE PLAN; TERM OF
PLAN;</FONT></B>

<DIV align="center">
<B><FONT size="2">RECAPITALIZATIONS; MERGERS; SUBSTITUTE
AWARDS</FONT></B>
</DIV>

<P align="left">
<FONT size="2">(a)&nbsp;<I>Stock Issuable.</I> Subject to the
provisions of Section&nbsp;3(c), 8,500,000 shares of Stock are
reserved and available for issuance under the Plan provided,
however, that in no event shall more than&nbsp;30% of the Stock
remaining issuable under the Plan as of the date of obtaining
shareholder approval in 2004 be granted pursuant to Awards with
an exercise price or purchase price that is less than&nbsp;100%
of Fair Market Value on the date of grant. The shares available
for issuance under the Plan may be authorized but unissued
shares of Stock or shares of Stock reacquired by the Company. If
any portion of an Award is forfeited, cancelled, satisfied
without the issuance of Stock or otherwise terminated, the
shares of Stock underlying such portion of the Award shall be
added back to the shares of Stock available for issuance under
the&nbsp;Plan.
</FONT>

<P align="left">
<FONT size="2">(b)&nbsp;<I>Term of Plan.</I> No Awards shall be
made more than ten (10)&nbsp;years after the date upon which the
Board approved the amended and restated Plan in 2004.
Notwithstanding the foregoing, Stock Options granted hereunder
may, except as otherwise expressly provided herein, be
exercisable for up to ten (10)&nbsp;years after the date they
become exercisable.
</FONT>

<P align="left">
<FONT size="2">(c)&nbsp;<I>Impact of Transactions.</I> Subject
to the provisions of Section&nbsp;13, if, through or as a result
of any merger, consolidation, sale of all or substantially all
of the assets of the Company, reorganization, recapitalization,
reclassification, stock dividend, stock split, reverse stock
split or other similar transaction, the outstanding shares of
Stock are increased or decreased or are exchanged for a
different number or kind of shares or other securities of the
Company, or additional shares or new or different shares or
other securities of the Company or other non-cash assets are
distributed with respect to such shares of Stock or other
securities, the Administrator may make an appropriate or
proportionate adjustment in (i)&nbsp;the maximum number of
shares reserved for issuance under the Plan, (ii)&nbsp;the
number of Awards that can be granted to any one individual
Participant in any calendar year, (iii)&nbsp;the number and kind
of shares or other securities subject to any then outstanding
Awards under the Plan, and (iv)&nbsp;the price for each share
</FONT>

<P align="center"><FONT size="2">&nbsp;</FONT>

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<DIV align="left">
<FONT size="2">subject to any then outstanding Stock Options
under the Plan, without changing the aggregate exercise price.
The adjustment by the Administrator shall be final, binding and
conclusive. No fractional shares of Stock shall be issued under
the Plan resulting from any such adjustment, but the
Administrator in its discretion may make a cash payment in lieu
of fractional shares.
</FONT>
</DIV>

<P align="left">
<FONT size="2">(d)&nbsp;<I>Substitute Awards.</I> The
Administrator may grant Awards under the Plan in substitution
for stock and stock based awards held by employees of another
corporation who become employees of the Company or a Subsidiary
as the result of a merger or consolidation of the employing
corporation with the Company or a Subsidiary or the acquisition
by the Company or a Subsidiary of property or stock of the
employing corporation. The Administrator may direct that the
substitute Awards be granted with such terms and conditions as
the Administrator considers appropriate in the circumstances.
</FONT>

<P align="center">
<B><FONT size="2">SECTION 4.</FONT></B>

<P align="center">
<B><FONT size="2">ELIGIBILITY</FONT></B>

<P align="left">
<FONT size="2">Those persons eligible to participate in the Plan
shall be officers, employees and Non-employee Directors of the
Company, its Parent and any Subsidiaries. Selection of
Participants shall be made from time to time by the
Administrator, in its sole discretion.
</FONT>

<P align="center">
<B><FONT size="2">SECTION 5.</FONT></B>

<P align="center">
<B><FONT size="2">STOCK OPTIONS</FONT></B>

<P align="left">
<FONT size="2">Any Stock Option granted under the Plan shall be
in such form as the Administrator may from time to time approve.
Stock Options granted under the Plan may be either Incentive
Stock Options or Non-Qualified Stock Options. Incentive Stock
Options may be granted only to employees of the Company, its
Parent or any Subsidiary. To the extent that any Option does not
qualify as an Incentive Stock Option, it shall be a
Non-Qualified Stock Option.
</FONT>

<P align="left">
<FONT size="2">(a)&nbsp;<I>Stock Option Grants.</I> The
Administrator, in its discretion, may grant Stock Options to
eligible officers and key employees of the Company, its Parent
or any Subsidiary. Stock Options granted pursuant to this
Section&nbsp;5(a) shall be subject to the following terms and
conditions and each Stock Option Award Agreement shall contain
such additional terms and conditions, consistent with the terms
of the Plan, as the Administrator deems desirable.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(i)&nbsp;<I>Exercise Price.</I> The exercise
    price per share shall be determined by the Administrator at the
    time of grant and set forth in an Award Agreement, but it shall
    not be less than&nbsp;100% of the Fair Market Value on the date
    of grant. If an employee owns or is deemed to own (by reason of
    the attribution rules of Section&nbsp;424(d) of the Code) more
    than&nbsp;10% of the combined voting power of all classes of
    stock of the Company or any parent or subsidiary corporation and
    an Incentive Stock Option is granted to such employee, the
    option price of such Incentive Stock Option shall be not less
    than&nbsp;110% of the Fair Market Value on the grant date. The
    exercise price for the Stock to be issued pursuant to an already
    granted Stock Option may not be lowered without the prior
    consent of the Company&#146;s shareholders. This shall include,
    without limitation, a repricing of the Stock Option as well as a
    Stock Option exchange program whereby the Participant agrees to
    cancel an existing Stock Option in exchange for an Option or
    other Award.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(ii)&nbsp;<I>Option Term.</I> The term of each
    Stock Option shall be fixed by the Administrator in an Award
    Agreement, but no Incentive Stock Option shall be exercisable
    more than ten (10)&nbsp;years after the date the option is
    granted. If an employee owns or is deemed to own more
    than&nbsp;10% of the combined voting power of all classes of
    stock of the Company or any Parent or Subsidiary and an
    Incentive Stock Option is granted to such employee, the term of
    such option shall be no more than five (5)&nbsp;years from the
    date of grant.
    </FONT></TD>
</TR>

</TABLE>

<P><HR size="5" noshade><P>

<DIV align="left">
<FONT size="2">[EXHIBITS TAG]
</FONT>
</DIV>

<P><HR size="5" noshade><P>

<P align="center"><FONT size="2">&nbsp;
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(iii)&nbsp;<I>Exercisability; Rights of a
    Shareholder.</I> Stock Options shall become exercisable at such
    time or times, whether or not in installments, as shall be
    determined by the Administrator in an Award Agreement;
    <I>provided</I>, however, that all Stock Options must be
    exercised within ten (10)&nbsp;years of the date they become
    exercisable or they shall automatically expire. The
    Administrator may, at any time, accelerate the exercisability of
    all or any portion of any Stock Option. An optionee shall have
    the rights of a shareholder only as to shares acquired upon the
    exercise of a Stock Option and not as to unexercised Stock
    Options.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(iv)&nbsp;<I>Method of Exercise.</I> Stock
    Options may be exercised in whole or in part, by giving written
    notice of exercise to the Company, specifying the number of
    shares to be purchased. To the extent permitted by Applicable
    Law, payment of the purchase price may be made by one or more of
    the following methods to the extent provided in the Award
    Agreement:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(A)&nbsp;In cash, by certified or bank check or
    other instrument acceptable to the Administrator;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(B)&nbsp;In the form of shares of Stock that are
    not then subject to restrictions under any Company plan and that
    have been beneficially owned by the optionee for at least six
    months, if permitted by the Administrator in its discretion.
    Such surrendered shares shall be valued at Fair Market Value on
    the exercise date;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(C)&nbsp;By the optionee delivering to the
    Company a properly executed exercise notice together with
    irrevocable instructions to a broker to promptly deliver to the
    Company cash or a check payable and acceptable to the Company to
    pay the purchase price; <I>provided</I> that the payment method
    described in this Section&nbsp;5(a)(iv)(C) shall not be
    available to an optionee who is subject to the reporting and
    other provisions of Section&nbsp;16 of the Exchange Act unless
    the optionee and the broker comply with such procedures and
    enter into such agreements as the Administrator shall prescribe
    as a condition of such payment procedure; or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(D)&nbsp;By a net exercise procedure.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">The actual or constructive delivery of
certificates (as described in Section 14(b)) representing the
shares of Stock to be purchased pursuant to the exercise of a
Stock Option will be contingent upon receipt from the optionee
(or a purchaser acting in his or her stead in accordance with
the provisions of the Stock Option) by the Company of the full
purchase price for such shares and the fulfillment of any other
requirements contained in the Stock Option or Applicable Laws.
</FONT>

<P align="left">
<FONT size="2">(b)&nbsp;<I>Annual Limit on Incentive Stock
Options.</I> To the extent that the aggregate Fair Market Value
(determined as of the time of grant) of the shares of Stock with
respect to which Incentive Stock Options granted under this Plan
and any other plan of the Company or its parent and subsidiary
corporations become exercisable for the first time by an
optionee during any calendar year in excess of $100,000, it
shall constitute a Non-Qualified Stock Option.
</FONT>

<P align="left">
<FONT size="2">(c)&nbsp;<I>Non-Transferability of Options.</I>
Except as otherwise set forth in the following sentence, no
Stock Option shall be transferable by the optionee other than by
will or by the laws of descent and distribution and all Stock
Options shall be exercisable, during the optionee&#146;s
lifetime, only by the optionee. Notwithstanding the foregoing,
an optionee may transfer his or her Non-Qualified Stock Options,
without consideration for the transfer, to members of his or her
family or to trusts for the benefit of such family members,
<I>provided</I> that the transferee agrees in writing with the
Company to be bound by all of the terms and conditions of this
Plan and the applicable Award Agreement.
</FONT>

<P align="left">
<FONT size="2">(d)&nbsp;<I>Termination.</I> Except as may
otherwise be provided by the Administrator either in the Award
Agreement or, subject to Section&nbsp;11 below, in writing after
the Award Agreement is issued, an optionee&#146;s rights in all
Stock Options shall automatically terminate ninety
(90)&nbsp;days following optionee&#146;s termination of
employment (or cessation of business relationship) with the
Company and its Subsidiaries for any reason. Notwithstanding the
foregoing, if an optionee ceases to be employed by the Company
and the Company&#146;s Subsidiaries by reason of his or her
death, or if the employee dies within the thirty (30)&nbsp;day
period after the employee ceases to be employed by the Company
and the Company&#146;s Subsidiaries, any
</FONT>

<P align="center"><FONT size="2">&nbsp;
</FONT>

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<DIV align="left">
<FONT size="2">Stock Options of such optionee may be exercised,
to the extent of the number of shares with respect to which he
or she could have exercised it on the date of his or her death,
by his or her estate, personal representative or beneficiary who
has acquired the Stock Options by will or by the laws of descent
and distribution, at any time prior to the earlier of the
specified expiration date of the Options or one hundred eighty
(180)&nbsp;days from the date of such optionee&#146;s death.
Additionally, if an optionee ceases to be employed by the
Company and the Company&#146;s Subsidiaries by reason of his or
her Disability, he or she shall have the right to exercise any
Stock Options held by the optionee on the date of termination of
employment, to the extent of the number of shares with respect
to which he or she could have exercised it on that date, at any
time prior to the earlier of the specified expiration date of
the Stock Options or one hundred eighty (180)&nbsp;days from the
date of the termination of the optionee&#146;s employment.
</FONT>
</DIV>

<P align="left">
<FONT size="2">(e)&nbsp;<I>162(m) Limits.</I> A Participant can
receive no more than one&nbsp;million shares of Stock covered by
Stock Options during any one calendar year, subject to
adjustment under Section&nbsp;3(c).
</FONT>

<P align="left">
<FONT size="2">(f)&nbsp;<I>Notice to Company of Disqualifying
Disposition.</I> Each employee who receives an Incentive Stock
Option must agree to notify the Company in writing immediately
after the employee makes a Disqualifying Disposition of any
Stock acquired pursuant to the exercise of an Incentive Stock
Option. A &#147;Disqualifying Disposition&#148; is any
disposition (including any sale) of such Stock before the later
of:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(i)&nbsp;two years after the date the employee
    was granted the Incentive Stock Option, or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(ii)&nbsp;one year after the date the employee
    acquired Stock by exercising the Incentive Stock Option. If the
    employee has died before such stock is sold, these holding
    period requirements do not apply and no Disqualifying
    Disposition can occur thereafter.
    </FONT></TD>
</TR>

</TABLE>

<P align="center">
<B><FONT size="2">SECTION 6.</FONT></B>

<P align="center">
<B><FONT size="2">RESTRICTED STOCK AWARDS</FONT></B>

<P align="left">
<FONT size="2">(a)&nbsp;<I>Nature of Restricted Stock
Awards.</I> A Restricted Stock Award is an Award entitling the
recipient to acquire shares of Stock subject to such
restrictions and conditions as the Administrator may determine
at the time of grant (&#147;Restricted Stock&#148;). A
Restricted Stock Award can be made without any required payment,
upon payment of par value or upon any other such payment, all as
determined by the Administrator in its discretion and in
compliance with Applicable Law. Conditions may be based on
continuing employment (or service as a Non-employee Director)
and/or achievement of pre-established performance goals and
objectives. The grant of a Restricted Stock Award is contingent
on the Participant executing the Restricted Stock Award
Agreement. The terms and conditions of each such Award Agreement
shall be determined by the Administrator, and such terms and
conditions may differ among individual Awards and Participants.
</FONT>

<P align="left">
<FONT size="2">(b)&nbsp;<I>Rights as a Shareholder.</I> Upon
execution of the Restricted Stock Award Agreement and paying any
applicable purchase price, a Participant shall have the rights
of a shareholder with respect to the voting of the Restricted
Stock, subject to such terms and conditions as may be contained
in the Restricted Stock Award Agreement. Unless the
Administrator shall otherwise determine, certificates (as
described in Section&nbsp;14(b)) evidencing the Restricted Stock
shall remain in the possession of the Company until such
Restricted Stock is vested as provided in Section&nbsp;6(d)
below, and the Participant may be required, as a condition of
the grant, to deliver to the Company a stock power endorsed in
blank.
</FONT>

<P align="left">
<FONT size="2">(c)&nbsp;<I>Restrictions.</I> Restricted Stock
may not be sold, assigned, transferred, pledged or otherwise
encumbered or disposed of except as specifically provided herein
or in the Restricted Stock Award Agreement. Except as may
otherwise be provided by the Administrator either in the Award
Agreement or, subject to Section&nbsp;13 below, in writing after
the Award Agreement is issued, if a Participant&#146;s
employment (or service as a Non-employee Director) with the
Company and its Subsidiaries terminates for any reason, the
Company shall have the right to repurchase Restricted Stock that
has not vested at the time of termination at its original
purchase price (which may be zero), from the Participant or the
Participant&#146;s legal representative.
</FONT>

<P><HR size="5" noshade><P>

<DIV align="left">
<FONT size="2">[EXHIBITS TAG]
</FONT>
</DIV>

<P><HR size="5" noshade><P>

<P align="center"><FONT size="2">&nbsp;
</FONT>

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<P align="left">
<FONT size="2">(d)&nbsp;<I>Vesting of Restricted Stock.</I> The
Administrator at the time of grant shall specify the date or
dates and/or the attainment of pre-established performance
goals, objectives and other conditions on which the
non-transferability of the Restricted Stock and the
Company&#146;s right of repurchase or forfeiture shall lapse,
<I>provided</I>, however, that any Awards of Restricted Stock
that vest solely on the basis of continuing employment (or
service as a Non-employee Director) shall be subject to a period
of vesting determined by the Administrator, <I>subject</I>,
however, at the Administrator&#146;s discretion, to accelerated
vesting upon the achievement of specified performance goals.
Except as may otherwise be provided by the Administrator either
in the Award Agreement or, subject to Section&nbsp;13 below, in
writing after the Award Agreement is issued, a
Participant&#146;s rights in any shares of Restricted Stock that
have not vested shall automatically terminate upon the
Participant&#146;s termination of employment (or service as a
Non-employee Director) with the Company and its Subsidiaries and
such shares shall be subject to the Company&#146;s right of
repurchase as provided in Section&nbsp;6(c) above.
</FONT>

<P align="left">
<FONT size="2">(e)&nbsp;<I>Waiver, Deferral and Reinvestment of
Dividends.</I> The Restricted Stock Award Agreement may require
or permit the immediate payment, waiver, deferral or
reinvestment (in the form of additional Restricted Stock) of
dividends paid on the Restricted Stock.
</FONT>

<P align="left">
<FONT size="2">(f)&nbsp;<I>162(m) Limit on Restricted Stock
Awards.</I> A Participant can receive grants covering no more
than two hundred thousand shares of Restricted Stock during any
one calendar year, subject to adjustment under Section&nbsp;3(c).
</FONT>

<P align="left">
<FONT size="2">(g)&nbsp;<I>Section&nbsp;162(m) Performance
Restrictions.</I> For purposes of qualifying grants of
Restricted Stock as &#147;performance-based compensation&#148;
under Section 162(m) of the Code, the Administrator, in its
discretion, may set restrictions based upon the achievement of
Performance Goals. The Performance Goals shall be set by the
Administrator on or before the latest date permissible to enable
the Restricted Stock to qualify as &#147;performance-based
compensation&#148; under Section&nbsp;162(m) of the Code. In
granting Restricted Stock which is intended to qualify under
Section&nbsp;162(m) of the Code, the Administrator shall follow
any procedures determined by it from time to time to be
necessary or appropriate to ensure qualification of the
Restricted Stock under Section&nbsp;162(m) of the Code
(e.g.,&nbsp;in determining the Performance Goals).
</FONT>

<P align="center">
<B><FONT size="2">SECTION&nbsp;7.</FONT></B>

<P align="center">
<B><FONT size="2">DEFERRED STOCK AWARDS</FONT></B>

<P align="left">
<FONT size="2">(a)&nbsp;<I>Nature of Deferred Stock Awards.</I>
A Deferred Stock Award is an Award of a right to receive shares
of Stock at the end of a specified deferral period. The
Administrator in its sole discretion shall determine the persons
to whom and the time or times at which Deferred Stock Awards
will be made, the number of shares of Stock covered by any
Deferred Stock Award, the duration of the period (the
&#147;Deferral Period&#148;) prior to which the Stock will be
delivered, and the restrictions and other conditions under which
receipt of the Stock will be deferred and any other terms and
conditions of the Deferred Stock Awards. The Administrator may
condition a Deferred Stock Award upon the attainment of
specified performance goals by the Participant or by the Company
or a Subsidiary, including a division or department of the
Company or a Subsidiary for or within which the Participant is
primarily employed, or upon such other factors or criteria as
the Administrator shall determine. The provisions of Deferred
Stock Awards need not be the same with respect to any
Participant. The Administrator may make Deferred Stock Awards
independent of or in connection with the granting of any other
Award under the Plan.
</FONT>

<P align="left">
<FONT size="2">(b)&nbsp;<I>Terms and Conditions.</I> Deferred
Stock Awards shall be subject to the following terms
and&nbsp;conditions:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(1)&nbsp;<I>Limitations on Transferability.</I>
    Except as otherwise provided in an agreement with a Participant,
    Deferred Stock Awards, or any interest therein, may not be sold,
    assigned, transferred, pledged or otherwise encumbered during
    the Deferral Period. At the expiration of the Deferral Period
    (or Elective Deferral Period as defined in Section&nbsp;7(b)(4),
    where applicable), the Administrator shall deliver Stock to the
    Participant for the shares of Stock covered by the Deferred
    Stock Award.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">&nbsp;
</FONT>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(2)&nbsp;<I>Rights.</I> Unless otherwise
    determined by the Administrator and the applicable Award
    Agreement with a Participant, cash dividends on the Stock that
    is the subject of the Deferred Stock Award shall be
    automatically deferred and reinvested in an additional Deferred
    Stock Award with respect to the same class as the Stock on which
    such dividend was payable, and dividends on the Stock that is
    the subject of the Deferred Stock Award payable in Stock shall
    be awarded in the form of a Deferred Stock Award with respect to
    the same class as the Stock on which such dividend was payable.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(3)&nbsp;<I>Acceleration and Waiver.</I> Based on
    such factors or criteria as the Administrator may determine, the
    Administrator may provide in the Award Agreement for the lapse
    of restrictions, conditions or deferral limitations in
    installments and may accelerate the vesting of all or any part
    of any Deferred Stock Award and waive such remaining
    restrictions, conditions or deferral limitations for all or any
    part of such Deferred Stock Award.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">(4)&nbsp;<I>Election.</I> A Participant may elect
    further to defer receipt of the shares of Stock payable under a
    Deferred Stock Award (or an installment thereof) for a specified
    period or until a specified event (an &#147;Elective Deferral
    Period&#148;), subject in each case to the Administrator&#146;s
    approval and to such terms as are determined by the
    Administrator. Subject to any exceptions adopted by the
    Administrator, such election must be made at least one
    (1)&nbsp;year prior to completion of the Deferral Period for the
    Deferred Stock Award (or of the applicable installment thereof),
    and any such deferral that is effective after the vesting date
    of a Deferred Stock Award shall result in the Deferred Stock
    Award remaining subject to the claims of the Company&#146;s
    general creditors until the distribution date.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">(c)&nbsp;<I>Rights as a Shareholder.</I> A
Participant receiving a Deferred Stock Award shall have the
rights of a shareholder only as to shares actually received by
the Participant under the Plan and not with respect to shares
subject to the Award but not actually received by the
Participant. A Participant shall be entitled to receive a stock
certificate (as described in Section&nbsp;14(b)) evidencing the
acquisition of shares of Stock under a Deferred Stock Award only
upon satisfaction of all conditions specified in the Deferred
Stock Award Agreement.
</FONT>

<P align="left">
<FONT size="2">(d)&nbsp;<I>Termination.</I> Except as may
otherwise be provided by the Administrator either in the
Deferred Stock Award Agreement or, subject to Section&nbsp;11
below, in writing after the Deferred Stock Award Agreement is
issued, a Participant&#146;s rights in all Deferred Stock Awards
shall automatically terminate upon the Participant&#146;s
termination of employment (or service as a Non-employee
Director) with the Company and its Subsidiaries for any reason.
</FONT>

<P align="left">
<FONT size="2">(e)&nbsp;<I>162(m) Limit on Deferred Stock
Awards.</I> A Participant can receive grants covering no more
than two hundred thousand shares of Deferred Stock Awards during
any one calendar year, subject to adjustment under
Section&nbsp;3(c).
</FONT>

<P align="left">
<FONT size="2">(f)&nbsp;<I>Section&nbsp;162(m) Performance
Restrictions.</I> For purposes of qualifying grants of Deferred
Stock Awards as &#147;performance-based compensation&#148; under
Section&nbsp;162(m) of the Code, the Administrator, in its
discretion, may set restrictions based upon the achievement of
Performance Goals. The Performance Goals shall be set by the
Administrator on or before the latest date permissible to enable
the Restricted Stock to qualify as &#147;performance-based
compensation&#148; under Section&nbsp;162(m) of the Code. In
granting Deferred Stock Awards which are intended to qualify
under Section&nbsp;162(m) of the Code, the Administrator shall
follow any procedures determined by it from time to time to be
necessary or appropriate to ensure qualification of the Deferred
Stock Awards under Section&nbsp;162(m) of the Code (e.g., in
determining the Performance Goals).
</FONT>

<P align="center">
<B><FONT size="2">SECTION&nbsp;8.</FONT></B>

<P align="center">
<B><FONT size="2">NON-EMPLOYEE DIRECTOR STOCK OPTION
PROGRAM</FONT></B>

<P align="left">
<FONT size="2">Each person who is elected as a Non-employee
Director shall be granted, on the date of his or her initial
election and annually thereafter on the date of the annual
shareholders meeting (so long as the Non-Employee Director has
then been serving as such for at least three months), a
Non-Qualified Stock
</FONT>

<P><HR size="5" noshade><P>

<DIV align="left">
<FONT size="2">[EXHIBITS TAG]
</FONT>
</DIV>

<P><HR size="5" noshade><P>

<P align="center"><FONT size="2">&nbsp;
</FONT>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left">
<FONT size="2">Option to acquire such number of shares of Stock
as may be determined by the Administrator with an exercise price
per share for the Stock covered by such Stock Option at least
equal to the Fair Market Value on the date as of which the Stock
Option is granted. Such Stock Options shall become exercisable
as may be determined by the Administrator. Stock Options granted
under this Section&nbsp;8 may be exercised only by written
notice to the Company specifying the number of shares to be
purchased. Payment of the full purchase price of the shares to
be purchased may be made by one or more of the methods specified
in Section&nbsp;5(a)(iv). An optionee shall have the rights of a
shareholder only as to shares acquired upon the exercise of a
Stock Option and not as to unexercised Stock Options.
</FONT>
</DIV>

<P align="center">
<B><FONT size="2">SECTION&nbsp;9.</FONT></B>

<P align="center">
<B><FONT size="2">TAX WITHHOLDING</FONT></B>

<P align="left">
<FONT size="2">(a)&nbsp;<I>Payment by Participant.</I> Each
Participant shall, no later than the date as of which the value
of an Award or of any Stock or other amounts received thereunder
first becomes includable in the gross income of the Participant
for Federal income tax purposes, pay to the Company, or make
arrangements satisfactory to the Administrator regarding payment
of, any Federal, state, or local taxes of any kind required by
law to be withheld with respect to such income. The Company and
its Subsidiaries shall, to the extent permitted by Applicable
Law, have the right to deduct any such taxes from any payment of
any kind otherwise due to the Participant. The Company&#146;s
obligation to deliver stock certificates to any Participant is
subject to and conditioned on tax obligations being satisfied by
the Participant.
</FONT>

<P align="left">
<FONT size="2">(b)&nbsp;<I>Payment in Stock.</I> Subject to
approval by the Administrator, a Participant may elect to have
such tax withholding obligation satisfied, in whole or in part,
by (i)&nbsp;authorizing the Company to withhold from shares of
Stock to be issued pursuant to any Award a number of shares with
an aggregate Fair Market Value (as of the date the withholding
is effected) that would satisfy the required statutory minimum
(but no more than such required minimum) with respect to the
Company&#146;s withholding obligation, or (ii)&nbsp;transferring
to the Company shares of Stock owned by the Participant with an
aggregate Fair Market Value (as of the date the withholding is
effected) that would satisfy the required statutory minimum (but
no more than such required minimum) with respect to the
Company&#146;s withholding obligation.
</FONT>

<P align="center">
<B><FONT size="2">SECTION&nbsp;10.</FONT></B>

<P align="center">
<B><FONT size="2">TRANSFER, LEAVE OF ABSENCE, ETC.</FONT></B>

<P align="left">
<FONT size="2">For purposes of the Plan, the following events
shall not be deemed a termination of employment:
</FONT>

<P align="left">
<FONT size="2">(a)&nbsp;a transfer to the employment of the
Company from a Subsidiary or from the Company to a Subsidiary,
or from one Subsidiary to another;&nbsp;or
</FONT>

<P align="left">
<FONT size="2">(b)&nbsp;an approved leave of absence for
military service or sickness, or for any other purpose approved
by the Company, if the employee&#146;s right to re-employment is
guaranteed either by a statute or by contract or under the
written policy pursuant to which the leave of absence was
granted or if the Administrator otherwise so provides in writing.
</FONT>

<P align="center">
<B><FONT size="2">SECTION&nbsp;11.</FONT></B>

<P align="center">
<B><FONT size="2">AMENDMENTS AND TERMINATION</FONT></B>

<P align="left">
<FONT size="2">The Board may, at any time, amend or discontinue
the Plan, and the Administrator may, at any time, amend or
cancel any outstanding Award for the purpose of satisfying
changes in law or for any other lawful purpose, but no such
action shall adversely affect rights under any outstanding Award
without the holder&#146;s written consent. If and to the extent
determined by the Administrator to be required by (a)&nbsp;the
Code to ensure that Incentive Stock Options granted under the
Plan are qualified under Section&nbsp;422 of the Code or ensure
that compensation earned under Awards granted under the Plan
qualify as performance-based compensation under
Section&nbsp;162(m) of the Code, if and to the extent intended
to so qualify, or
</FONT>

<P align="center"><FONT size="2">&nbsp;
</FONT>

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<DIV align="left">
<FONT size="2">(b)&nbsp;the rules of the New&nbsp;York Stock
Exchange, Plan amendments shall be subject to approval by the
Company&#146;s shareholders entitled to vote at a meeting of
shareholders. Nothing in this Section&nbsp;11 shall limit the
Board&#146;s authority to take any action permitted pursuant to
Section&nbsp;3(c) or 3(d).
</FONT>
</DIV>

<P align="center">
<B><FONT size="2">SECTION&nbsp;12.</FONT></B>

<P align="center">
<B><FONT size="2">STATUS OF PLAN</FONT></B>

<P align="left">
<FONT size="2">Unless the Administrator shall otherwise
expressly determine in writing, with respect to the portion of
any Award which has not been exercised and any payments in cash,
Stock or other consideration not received by a Participant, a
Participant shall have no rights greater than those of a general
creditor of the Company. In its sole discretion, the
Administrator may authorize the creation of trusts or other
arrangements to meet the Company&#146;s obligations to deliver
Stock or make payments with respect to Awards hereunder,
provided that the existence of such trusts or other arrangements
is consistent with the foregoing sentence.
</FONT>

<P align="center">
<B><FONT size="2">SECTION&nbsp;13.</FONT></B>

<P align="center">
<B><FONT size="2">MERGER&nbsp;&#38; SIMILAR TRANSACTION
PROVISIONS</FONT></B>

<P align="left">
<FONT size="2">In contemplation of and subject to the
consummation of a consolidation or merger or sale of all or
substantially all of the assets of the Company in which
outstanding shares of Stock are exchanged for securities, cash
or other property of an unrelated corporation or business entity
or in the event of a liquidation or dissolution of the Company
or in the case of a corporate reorganization of the Company (in
each case, a &#147;Transaction&#148;), the Board, or the board
of directors of any corporation or other entity assuming the
obligations of the Company, may, in its discretion, take any one
or more of the following actions, as to outstanding Awards:
(i)&nbsp;provide that such Awards shall be assumed or equivalent
awards shall be substituted, by the acquiring or succeeding
corporation or other entity (or an affiliate thereof), and/or
(ii)&nbsp;upon written notice to the Participants, provide that
all Awards will terminate immediately prior to the consummation
of the Transaction. In the event that, pursuant to
clause&nbsp;(ii) above, Awards will terminate immediately prior
to the consummation of the Transaction, all outstanding Awards
shall vest 100% immediately prior to their termination.
Moreover, in such event, all Awards, other than Options, shall
be fully settled in cash, in kind or in some combination
thereof, at such appropriate consideration as determined by the
Administrator in its sole discretion after taking into account
any and all consideration payable per share of Stock pursuant to
the Transaction (the &#147;Transaction Price&#148;) and all
Stock Options shall be fully settled, in cash, in kind or in
some combination thereof, in an amount equal to the difference
between (A)&nbsp;the Transaction Price times the number of
shares of Stock subject to such outstanding Stock Options (to
the extent then exercisable at prices not in excess of the
Transaction Price) and (B)&nbsp;the aggregate exercise price of
all such outstanding Stock Options.
</FONT>

<P align="center">
<B><FONT size="2">SECTION&nbsp;14.</FONT></B>

<P align="center">
<B><FONT size="2">GENERAL PROVISIONS</FONT></B>

<P align="left">
<FONT size="2">(a)&nbsp;<I>No Distribution; Compliance with
Legal Requirements.</I> The Administrator may require each
person acquiring Stock pursuant to an Award to represent to and
agree with the Company in writing that such person is acquiring
the shares without a view to distribution thereof. No shares of
Stock shall be issued pursuant to an Award until all Applicable
Laws have been satisfied. The Administrator may require the
placing of such stop-orders and restrictive legends on
certificates for Stock (as described in Section&nbsp;14(b)
below) as it deems appropriate.
</FONT>

<P align="left">
<FONT size="2">(b)&nbsp;<I>Stock Certificates.</I> To the extent
the Company uses certificates to represent shares of Stock,
certificates to be delivered to Participants under this Plan
shall be deemed delivered for all purposes when the Company or a
stock transfer agent of the Company shall have mailed such
certificates in the United States mail, addressed to the
Participant, at the Participant&#146;s last known address on
file with the Company.
</FONT>

<P><HR size="5" noshade><P>

<DIV align="left">
<FONT size="2">[EXHIBITS TAG]
</FONT>
</DIV>

<P><HR size="5" noshade><P>

<P align="center"><FONT size="2">&nbsp;
</FONT>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="left">
<FONT size="2">Any reference in this Section&nbsp;14(b) or
elsewhere in the Plan to actual stock certificates and/or the
delivery of actual stock certificates shall be deemed satisfied
by the electronic record-keeping and electronic delivery of
shares of Stock or other mechanism then utilized by the Company
and its agents for reflecting ownership of such shares.
</FONT>
</DIV>

<P align="left">
<FONT size="2">(c)&nbsp;<I>Other Compensation Arrangements; No
Employment Rights.</I> Nothing contained in this Plan shall
prevent the Board from adopting other or additional compensation
arrangements, including trusts, and such arrangements may be
either generally applicable or applicable only in specific
cases. The adoption of this Plan and the grant of Awards shall
not confer upon any individual any right to continued employment
or service as a director with the Company or any Subsidiary and
shall not interfere in any way with the right of the Company or
any Subsidiary to terminate the employment of any of its
employees at any time, with or without cause or notice.
</FONT>

<P align="left">
<FONT size="2">(d)&nbsp;<I>Trading Policy Restrictions.</I>
Awards and related transactions under the Plan shall be subject
to such Company insider-trading-policy-related restrictions,
terms and conditions as may be established by the Administrator,
or in accordance with policies set by the Administrator, from
time to time.
</FONT>

<P align="center">
<B><FONT size="2">SECTION&nbsp;15.</FONT></B>

<P align="center">
<B><FONT size="2">GOVERNING LAW</FONT></B>

<P align="left">
<FONT size="2">This Plan and all Awards and actions taken
thereunder shall be governed by, and construed in accordance
with, the laws of the State of California, applied without
regard to conflict of law principles.
</FONT>

<P align="center"><FONT size="2">&nbsp;
</FONT>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>3
<FILENAME>f01071exv5w1.txt
<DESCRIPTION>EXHIBIT 5.1
<TEXT>
<PAGE>
                                                                     EXHIBIT 5.1

                [LETTERHEAD OF WILSON SONSINI GOODRICH & ROSATI]

                                August 18, 2004

Williams-Sonoma, Inc.
3250 Van Ness Avenue
San Francisco, CA 94109

         Re:      Registration Statement on Form S-8

Ladies and Gentlemen:

     We have examined the Registration Statement on Form S-8 to be filed by you
with the Securities and Exchange Commission on or about August 18, 2004 (the
"Registration Statement") in connection with the registration under the
Securities Act of 1933, as amended (the "Securities Act"), of an increase of
3,500,000 shares of your Common Stock, par value $0.01, reserved for issuance
under your 2001 Long-Term Incentive Plan (formerly known as your 2001 Stock
Option Plan, the "Plan").  As your legal counsel, we have examined the
proceedings taken and are familiar with the proceedings proposed to be taken by
you in connection with the sale and issuance of such Common Stock under the
Plan.

     It is our opinion that when issued and sold in the manner referred to in
the Plan and pursuant to the agreements which accompany the Plan, the Common
Stock issued and sold under the Plan will be legally and validly issued, fully
paid and non assessable.

     We consent to the use of this opinion as an exhibit to the Registration
Statement, and further consent to the use of our name wherever appearing in the
Registration Statement, including any Prospectuses constituting a part thereof,
and any amendments thereto.  This opinion may be incorporated by reference in
any abbreviated Registration Statement filed pursuant to Item E under the
General Instructions to Form S-8 under the Securities Act with respect to the
Registration Statement.

                                            Very truly yours,

                                            WILSON SONSINI GOODRICH & ROSATI
                                            Professional Corporation

                                            /s/ WILSON SONSINI GOODRICH & ROSATI

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>4
<FILENAME>f01071exv23w1.txt
<DESCRIPTION>EXHIBIT 23.1
<TEXT>
<PAGE>
                                                                    EXHIBIT 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

     We consent to the incorporation by reference in this Registration Statement
of Williams-Sonoma, Inc. on Form S-8 of our report dated March 25, 2004,
appearing in the Annual Report on Form 10-K of Williams-Sonoma, Inc. for the
fiscal year ended February 1, 2004.


DELOITTE & TOUCHE LLP

San Francisco, California
August 18, 2004

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