-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 F2pYIyReJWSszmBOYkZCjoozi4KCkEWsPDDNtDps8bzTP/T9iBGpxd3dRSBMnSls
 Bo/WTM2yrg1d0QQH1Z3LRA==

<SEC-DOCUMENT>0001341004-08-003142.txt : 20081222
<SEC-HEADER>0001341004-08-003142.hdr.sgml : 20081222
<ACCEPTANCE-DATETIME>20081222161020
ACCESSION NUMBER:		0001341004-08-003142
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20081219
ITEM INFORMATION:		Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20081222
DATE AS OF CHANGE:		20081222

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHURCHILL DOWNS INC
		CENTRAL INDEX KEY:			0000020212
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-RACING, INCLUDING TRACK OPERATION [7948]
		IRS NUMBER:				610156015
		STATE OF INCORPORATION:			KY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33998
		FILM NUMBER:		081264040

	BUSINESS ADDRESS:	
		STREET 1:		700 CENTRAL AVE
		CITY:			LOUISVILLE
		STATE:			KY
		ZIP:			40208
		BUSINESS PHONE:		5026364400

	MAIL ADDRESS:	
		STREET 1:		700 CENTRAL AVENUE
		STREET 2:		700 CENTRAL AVENUE
		CITY:			LOUIVILLE
		STATE:			KY
		ZIP:			40208
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k.htm
<DESCRIPTION>FORM 8K
<TEXT>
<html>
  <head>
    <title>form8k.htm</title>
<!-- Licensed to: Skadden-->
<!-- Document Created using EDGARizer 4.0.6.3 -->
<!-- Copyright 1995 - 2008 EDGARfilings, Ltd., an IEC company. All rights reserved -->
</head>
    <body bgcolor="#ffffff" style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">UNITED
STATES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">SECURITIES
AND EXCHANGE COMMISSION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">WASHINGTON,
D.C. 20549</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman, serif">FORM
8-K</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">CURRENT
REPORT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Pursuant
to Section 13 or 15(d) of the</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Securities
Exchange Act of 1934</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Date of
Report (Date of earliest event reported): December 19, 2008</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><img src="cdlogo.jpg" alt=""></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Exact
name of registrant as specified in its charter)</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="24%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Kentucky</font></font></div>
            </td>
            <td valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">0-1469</font></font></div>
            </td>
            <td valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">61-0156015</font></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="24%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(State
      of Incorporation)</font></div>
            </td>
            <td valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(Commission
      File Number)</font></div>
            </td>
            <td valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(IRS
      Employer Identification No.)</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">700 Central Avenue,
Louisville, Kentucky 40208</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Address
of principal executive offices)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Zip
Code)</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">(502)
636-4400</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Registrant's
telephone number, including area code)</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Check the
appropriate box below if the Form 8-K is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following
provisions:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 40pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">[&#160;&#160;]</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></div>
              </td>
            </tr>
        </table>
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 40pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">[&#160;&#160;]</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 40pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">[&#160;&#160;]</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
          <tr valign="top">
            <td style="WIDTH: 40pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">[&#160;&#160;]</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Item
5.02.&#160;&#160;Departure of Directors or Certain Officers; Election of
Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Compensatory Arrangements of
Certain Officers</font>.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>On December 19, 2008, Churchill Downs
Incorporated (the &#8220;Company&#8221;) amended and restated its Terms and Conditions of
Performance Share Awards (the &#8220;Company LTIP&#8221;) that were previously issued
pursuant to the Company&#8217;s 2007 Omnibus Stock Incentive Plan to be exempt from or
otherwise comply with Section 409A of the Internal Revenue Code of 1986, as
amended (&#8220;Section 409A&#8221;).&#160;&#160;In addition to including technical changes
for purposes of complying with Section 409A, the amended Company LTIP (i)
clarifies the timing of payments under the Company LTIP, and (ii) adopts the
definition of &#8220;good reason&#8221; used under Section 409A.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 75pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
foregoing summary of the amendments to the Company LTIP does not purport to be
complete and is subject to, and qualified in its entirety by, the full text of
the amended and restated Company LTIP attached hereto as Exhibit 10.1, which is
incorporated herein by reference.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Item
9.01. Financial Statements and Exhibits.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 40pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Exhibits</font>.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td align="left" valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Exhibit
      No.</font></font></div>
            </td>
            <td align="left" valign="top" width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Description</font></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="17%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="83%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
          </tr>
          <tr>
            <td valign="top" width="17%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">Exhibit
      10.1</font></div>
            </td>
            <td align="left" valign="top" width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">Amended
      and Restated Terms and Conditions of Performance Share Awards Issued
      Pursuant to the Churchill Downs Incorporated 2007 Omnibus Stock Incentive
      Plan</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">SIGNATURE</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 75pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <div align="left">
        <div align="left">
          <div align="left">
            <table cellpadding="0" cellspacing="0" width="100%">
                <tr>
                  <td colspan="2" valign="top" width="44%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" colspan="2" valign="top" width="56%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">CHURCHILL
      DOWNS INCORPORATED</font></div>
                  </td>
                </tr>
                <tr>
                  <td colspan="2" valign="top" width="44%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td colspan="2" valign="top" width="56%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                </tr>
                <tr>
                  <td colspan="2" valign="top" width="44%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td colspan="2" valign="top" width="56%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                </tr>
                <tr>
                  <td colspan="2" valign="top" width="44%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td colspan="2" valign="top" width="56%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="13%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td align="left" valign="top" width="31%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">December
      19, 2008</font></div>
                  </td>
                  <td align="left" valign="top" width="24%" style="BORDER-BOTTOM: black 0.5pt solid">
                    <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">/s/
      Robert L. Evans</font></div>
                  </td>
                  <td align="left" valign="top" width="32%" style="BORDER-BOTTOM: 4px none">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
                  </td>
                </tr>
                <tr>
                  <td colspan="2" valign="top" width="44%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" colspan="2" valign="top" width="56%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">Robert
      L. Evans</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">President
      &amp; Chief Executive
Officer</font></div>
                  </td>
                </tr>
            </table>
          </div>
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Exhibit
Index</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td align="left" valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Exhibit
      No.</font></font></div>
            </td>
            <td align="left" valign="top" width="86%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Description</font></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="14%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="86%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
          </tr>
          <tr>
            <td valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">Exhibit
      10.1</font></div>
            </td>
            <td align="left" valign="top" width="86%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">Amended
      and Restated Terms and Conditions of Performance Share Awards Issued
      Pursuant to the Churchill Downs Incorporated 2007 Omnibus Stock Incentive
      Plan</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="14%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="86%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>&#160;</div>
    <div align="center">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td width="100%">
              <div style="TEXT-ALIGN: center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;4</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>&#160;</div>
  </body>
</html>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>cdlogo.jpg
<TEXT>
begin 644 cdlogo.jpg
M_]C_X``02D9)1@`!`0$`8`!@``#_X0!F17AI9@``24DJ``@````$`!H!!0`!
M````/@```!L!!0`!````1@```"@!`P`!`````@`!`3$!`@`0````3@``````
M``!@`````0```&`````!````4&%I;G0N3D54('8T+C`P`/_;`$,``@$!`0$!
M`@$!`0("`@("!`,"`@("!00$`P0&!08&!@4&!@8'"0@&!PD'!@8("P@)"@H*
M"@H&"`L,"PH,"0H*"O_;`$,!`@("`@("!0,#!0H'!@<*"@H*"@H*"@H*"@H*
M"@H*"@H*"@H*"@H*"@H*"@H*"@H*"@H*"@H*"@H*"@H*"@H*"O_``!$(`(4!
M!`,!(@`"$0$#$0'_Q``?```!!0$!`0$!`0```````````0(#!`4&!P@)"@O_
MQ`"U$``"`0,#`@0#!04$!````7T!`@,`!!$%$B$Q008346$'(G$4,H&1H0@C
M0K'!%5+1\"0S8G*""0H6%Q@9&B4F)R@I*C0U-C<X.3I#1$5&1TA)2E-45597
M6%E:8V1E9F=H:6IS='5V=WAY>H.$A8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJ
MLK.TM;:WN+FZPL/$Q<;'R,G*TM/4U=;7V-G:X>+CY.7FY^CIZO'R\_3U]O?X
M^?K_Q``?`0`#`0$!`0$!`0$!`````````0(#!`4&!P@)"@O_Q`"U$0`"`0($
M!`,$!P4$!``!`G<``0(#$00%(3$&$D%1!V%Q$R(R@0@40I&AL<$)(S-2\!5B
M<M$*%B0TX27Q%Q@9&B8G*"DJ-38W.#DZ0T1%1D=(24I35%565UA96F-D969G
M:&EJ<W1U=G=X>7J"@X2%AH>(B8J2DY25EI>8F9JBHZ2EIJ>HJ:JRL[2UMK>X
MN;K"P\3%QL?(R<K2T]35UM?8V=KBX^3EYN?HZ>KR\_3U]O?X^?K_V@`,`P$`
M`A$#$0`_`/W\HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`***KZKJEAH>
MEW.M:K=)!:V=N\]S-(V%CC12S,3V``)H`YSX4?%/2OBM;Z_>Z,@$.A^*[_0W
M8-G=+:2>5*?;$@<?A75U\1?\&^GQFOOVB_\`@G7%\>]1GDDE\8_%/QIK&^4Y
M;9<>(+V1`>3T1E'X?C7V[0`445SO@#XDZ#\1;KQ#;Z"^]?#OB*71[M\\&XBB
MB=Q^!EV_530!T5%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444
M`%%%%`!1110`4444`%%%%`!1110`5\J?\%O?VC!^RQ_P2D^.'Q:M]12VOO\`
MA"+C2-*D9L'[7J!6QBV\_>#7&X?[N>U?5=?B/_P>L_M40^#_`-E[X8?L?Z/J
M(%[XU\4S>(-7@0\BRT^/RXPW^R\]R&'J;<^E`'T]_P`&I1S_`,$3?AL,]-;U
M_O\`]16Y]_\`#^M?HU7YW_\`!JV`/^"(_P`*L#'_`!,=?SQ_U&+O_/\`CU/Z
M(4`([I&IDD<*H&22<`"OB_\`X(6?'!OVE?V3_&WQ[%QYL/BOX]>-;^S?=G_1
MFU600CKP!$J#'M7J?_!5+]H:+]E/_@G+\9_CY]J\FXT'X?ZA_9LF[;_IL\9M
MK4`]B9YH@/<U\H_\&ED:+_P1:\%RJ!ND\7>(&D.>6/\`:$@R>?0#\OQH`_2R
MBBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`**
M**`"BBB@`HHHH`*_CV_X.1/VX;;]N+_@JGXYUKPQK(O/"O@`KX/\+R1R[HY(
MK)W%Q,AZ%9+M[AE(X*E/K7]!/_!P_P#\%0O%_P#P3E_8CUJ/X-^!_$E_XZ\9
M6,FF:+XBL-#N'TWPTDO[M[ZYNU3RHI55CY,1;<TA5B-JG/\`(-+-+<2M//*T
MDDC%G=VR6)Y))/4TT!_73_P:N?\`*$?X5#TU#7__`$\7?^?\>I_1"OR$_P"#
M;S_@I#^P%^S[_P`$AOAK\*?CA^V3\./"?B73K_6VO]!\0>+;:UNK<2:K<R)O
MCD<,-R.C#CD,#SG)_3+X"?MA?LN?M30W%W^S=\>/#/CFWM#BYO/"VII>P1G^
MZ98LH#[9SS2`_,'_`(/-/VIH/A=_P3_\(_LQ:9J`34OBAXS2:[A28!FTW356
M>3*YR0;B2T]N#Z5Z[_P:7'/_``16\$<]/%?B#O\`]1&7W_PK\6/^#JO]M:V_
M:R_X*HZYX!\+ZJ+GPW\(=,C\*:>\;`QR7JDS7\@P>HN)#"3W%L*_:?\`X-+C
MG_@BMX(YZ>*_$'?_`*B,OO\`X4`?I51110`4444`%%%%`!1110`4444`%%%%
M`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`4_$/A[0/%NA7GA?Q
M5H=GJ>F:A;/;ZAIVH6R307,+@J\<D;@JZ,"05(((.#7\MW_!S3_P0VT'_@G/
M\2K']JS]E[P]);_!_P`<ZFUM<Z-$K,GA75F5I!;*Q)/V:95=XL_<*/&>!'G^
MIVO-OVM/V3_@M^VS\#=1_9V_:!\,+J_A;5KVQN;^Q)P9#:W<5R@#=5#-$%;'
M)5F'>@#^?[_@WH_X-G]/_:H\.:/^W%_P4#T"ZB^']X5NO`_P^=VAD\219RMY
M=LC!XK0D92,8:8?,2(R/-_5[_@L-_P`%)_@+_P`$5/V%)=,^%/AK2M(\6ZCI
M4FE?"7P5HFD+%:P7!&T7+QQJ(XK>#=YA!QYC*$&2Q(^YM/T^PTFP@TO2[*&V
MM;:%8K:VMX@D<4:@!451PJ@```<`"L;XG?"SX;?&KP+J7PP^+O@/2?$WAW6+
M9K?5-$URPCN;:YC88*O'("#^60>1S0!_!;KVNZSXHUR]\3>(]4GOM0U&[DNK
MZ\NI"\EQ-(Q=Y'8\LS,223U)-?U.?\&L'QZ^!7P[_P""-O@GP]X^^-W@_1=0
M7Q-K\DFGZMXFM;>>-3J,N"T<D@9<\$9`R"#T()_)'_@XZ_X(9P_\$N_BU8_'
M/]GFQN[CX+>.K^2'38)Y6E?PSJ."YT^21B6>)U#/#(Q+%4=')9`\F[_P0,_X
M-QO&/_!2C[-^U#^U'-J/ACX*VMX5T^"V_=7_`(NDC;$D<#'F"V4@JUQ@ECE(
M^0SHV!_3YX(^.GP2^)FI2Z-\-_C%X5\07D*;IK30_$-M=RQKZLL3L0/<BNJK
MS_\`9Q_93_9O_9"^'MM\*_V9?@KX>\$Z#:QA5L=!TY8C*1_'-)S)/(>IDD9G
M8G))->@4@"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BB
MB@`HHHH`****`"BBB@`HHHH`****`/'_`-N_]BOX2?\`!0?]F#Q!^RG\;8)#
MH'B&2TDGN+91Y]L]O<QSK)$Q^X_[LKN'0.W4$@^<_M2_L=_$C6[/P#X,_9HM
MK;1O"O@Z"RM=.T#3]6?3X+""W+J8E"$;4DC:)?-4/)%]F&Q3YC5]344`4O#E
MCJ>E^'K#3-:U0WUY;6445W?%-OVB54`:3&3C<03CWJ[110`4444`%%%%`!11
M10`4444`%%%%`!1110`4444`%%%%`!117R%_P7M_:+\??LI_\$AOC?\`&KX7
MZC-9:]:^&[;2]/O[9RLMHVI:A:Z:T\;#E7C6[9U8<AE![4`>AWO_``4/^#6O
M?$'6?A9^SYX2\5_%[6O#<BP^)A\-M.@NK'1YV0.MO<7]Q/!:+.58-Y*S-*H(
M+(,C.[^RE^V1X&_:S?QEI.@?#GQKX0UWP!XA71?%?AGQYH:V-[9W+V\=Q&P$
M<LL<L3Q2HZ21NRL&!!P03QW_``21^`?PP_9L_P""=7PK^&'PDL8(]*7PS'?R
MW$0!:\NKDF>>>1A]]V>0Y8D\`#.`*XG_`(+-?%?XN?L1_L)?$W]M[]E/Q+H_
MAOQCX<BL=1U@WOAJ"^B\0*)[>R2&YWE7&R.4[75@1M`P1Q0!]B45^;7_``4;
M_P""B'QG_9<_X)4:?^TQ\#OVX/`VN_%#0[+2;G5K:?2M+NH]=:_N+:%X_LD,
MH>`0B=F7RR3B,;]W)K<_;6_:$_;M_9Z^/_[)GP9\#?M66,UG\;O$<OA[QEJ&
MH?#ZP>>.2*W%T;RU"L$B9E8Q>6PD5<*WS'(8`_0FBOF3]J[Q=^U/X0_:W^`'
M@3X5?'6WTGPEX[UW4-+\9Z?<^%;6ZGD^QZ9<Z@LL$SX,32FW,3@A@%;*!6'/
MS/X-_:K_`&_?B!^T?^V3\)KG]M70?#.E?LWV>F7/AG5K[X<Z>UO<BYTR:_<Z
M@6D!\M/+"9C,9VY;(/!`/TSHK\W_``Q_P6E^.NJ?\$U?V=?C;J'P!TRV^._[
M27B.V\+^!_"6HR36VD_;)+EXCJTV6,R6(@5+G8"783(JL0PDKZ9/P._X*!:%
MJO@OQ)9?MOV>OO:>([5O'^@7_P`/M/L]/U'2V.VY2R,2-<VTR`[XS)-*#LVM
MG.:`/H>BOSR_8A_;=^/'B?\`;^_:5_9P_:K_`&TO"L'AWX,:QINE>%(+S0],
MTBZU;[?:27)N9G=OG-OA$`C558D,PYVU?_X)>?M+_M?_`+7GQG_:8\#?$']K
M+3-8T+X4^.9O"'@G5?#G@[3XOM.^'SH]3E<>8DSH&50B[8VVDD'.``??U%?G
M7_P3<_:E_;I_:V_8C^.GQG^)/[3&G1>*/!GCOQ)X9\*7FD^`[**VMAHY!%S+
M"S.9FGR0R[E"J?EP?F/L?_!%#]HK]H/]L/\`X)X>!OVM/VD_B#9:UX@\?07-
M[]CTO08;"UTR.*[GMEAC5"6DR(0Q9V)R<``"@#ZQHKX3\!_M(_MA:I_P7(\4
M_L*ZQ^T!93_#?0/A1;^/K:P7P;9I>RF>^%J-.>Y#9\E,EQ($$APH)ZLWW90!
M\Q>/_P#@J?\`"/X?_M=)^PW<?`GXJZE\1[K1I=8TS2-*\,6[Q:AID<K1->PW
M$ETD1AW(P^9E;C!4$@&[IO\`P5$_9ZTOXZ:'^SC\=?"?CCX2^*O%DQ@\'1?$
MOPW]BLO$$XP#!:7\,DUI)-R!Y)E60EE`4EAGYN^+)S_P=,?"D;@?^,5=6X[C
M_B9S_P"?Z=SW'_!R/\(O"?Q4_P"".WQ;U7Q!;HNH>"[&U\3>&M1#;9;#4+6Y
MC*2Q.""CF-I8\@@XE([XH`^Z:*_/CPS_`,%*/CIXT\)?L@_LD_"HV$?Q?^/O
MPHLO%7BOQ=XBLVN8/#>D0:9'-=W_`-G#H;FZGEW)"C.$#;F?<`%:_P#ME?M<
M_M9?\$KOBW\*?B!\;/C)!\4O@I\2?&]IX+\4S:CX8L].UGPEJ-V&-KJ$,MFJ
M17%KE)/,BDB+J$&V0EL4`??%%?`W[(7[9W[37AC_`(*-_M)_LF_MM?'72]0T
M#X1^#M/\5>#+NU\*6^GF_P!!N$>6XOKET)+/;D)`0@5"=[$9P!@_LT_\%8OC
M/^T3^P3^T?\`$#QYI(^'GQ?^#VKZJ++P_+I4<DT-K=1?;?#H>"1F60W$,L-N
M>079&(VEA0!^B]%?F7^WI^U)_P`%;_\`@G58?"#XLV'C/2?C593Z7<ZI\9_A
MW8>!K6QNQ96,$,NI3Z9<12;@L:SNRHRR,!"&9G&Y3ZY\??VNOBG^T9\&/@1^
MTY_P3D_:LTC3?!?Q.\?Z/H.KR7OA"WU,K9WKR++(H=@UO>P.GE&-RR!MP9<K
MR`?;%%?FU<?MQ_M>?'/]O[X[?L):!^U!H7P6\:^!-(LU^!OA;Q%X.MIS\0&:
MU::35)IKD'SH&D788;/RWCC8OEC&PK]&/#CZ[)X=L)/%,-O'J;641U&.T8F)
M9]@\P(3R5#9QGMB@"[1110`4444`%%%%`!1110`5YM^V#^S%X"_;0_9?\<_L
MK_$UY8]%\<^'I]+NKF!0TEJSC,5P@/!>*54E4'C<@S7I-%`'YO\`_!-WQM^W
M9_P2[^#EC^P?^V]^S!X\^)&E>$#+'X`^,7PBT@Z]9ZIIK.TBVU[;JZW=K/$S
M,@+QE63:-WRAGZ'_`(+#:Q^T#^V7_P`$H?BE\'/A-^QA\31XC\>1VFE^#]#N
M["U^VW`2[MKB2ZN8X[AEL80(I%'G.)&(_P!6,@'[_HH`_+?_`(*M?LO7_P`<
M/^"-UG\+/V;O^"?^LR?%#Q/I^B06VE6'@&SM-1TR6QN[62[-U*2JVX*0RA6#
MD2;OEW!N?0_^"DOPC_:*^+VB_LJ?MP_`#X"^)O$5W\#OB+%KOBOX975LEEK]
MQI<UO]ENC!#-($>YB";EAW_O`^59OXOT%K#\9_$GP+\/;G1K/QKXGMM-E\1:
MS'I.B)<L1]LO9%=D@3CEV5'('HI]*`/`/#6O>./VP_VG/AU\5+7X'>-/!?@O
MX8PZKJ4MYX_T,Z7>:GJ]W:&QAMX+61C*(XH)[IY)G55+&)4+C>1\#:G_`,$T
MM<_;<_;+_;3T[XT?LR?$#PC:_&F71)/@K\4=5T*2*WTZ]TRP9#+,(YBT41N8
MHCLE3;-&2."V#^NWC_XH?#SX5V6GZE\2/&5AHEMJVLVVDZ?<ZE<"*.:]N&V0
M0!VX#R/A%!(W,RJ,E@#/X2\>^#_'3ZK'X1U^"_;1-7ETO5EASFUO(@K/"V0/
MF`=#Z884`?E?\8O@M_P4R_;H_9B^#WQ6\7_LQW7@[]I_]DGXB6>MIHNLR00:
M!\0HH0J3G3KR)VB3[0D$;8;:(WW+@(ZM7W9\%/VY=;^,-SHVAWG[%'QN\*ZM
M?L%UFV\4^#8[2VT8@?O&DO'G$$Z*0=IMVE9^-JG->J77QG^%EEX\B^&,_CBP
M_MV:<0#3DD+,DQB,RQ.5!6.1H@75'(9EP0"",W?''Q%\$?#;38M6\<^)+;3H
M;FX$%KYS$O<2E6;RXT4%I'VJS;5!.U6/0$T`?G=_P3Z^!FM7_P#P4J_:W^,G
M[1O[#_B:#PS\4O$&BZK\.]>\:^!K>>.6WT^PEM[E""9)+=W?841E4R+C^+BK
MG_!(KPU\3?V=/C_^UIXE\=?L@?$3P;X9\>_$R?QAX!C?P@B1WFFQP>5Y$<5N
M[>5.2N4@8*S!AWR!^AWA/Q;X7\>>&K'QEX*\0V>K:3J5NL^GZEI]PLT%Q$PR
M'1U)#`^U8'PP_:`^"OQHN+NS^%?Q+TG7)[)2UW!8W(,D:":6`N5.#M\V&:/=
MC&^)USE2*`/SX_X)3^$_V@?V=O\`@GY^T3X'^+G[)7Q,TCQ#K/Q%\6^)O#N@
M3:"DESJ]GJQ46B0>7,ZM,#_K$9E,8RQX^8R?\$NOB[^U3^PY_P`$HOAS^R[K
M/_!.[XOWOQ5\*:?-ID>CS:%`NEO<7&I3R1W$M\EP42V1)UDD/^L558!"<9_0
M'XA?M!_!/X3>)=/\(?$SXF:3H>HZK`9["WU.Y\KS8A-%`9-Q^4*)9H4+$@!I
MHP>77/2^(_$OA_P?H5UXG\5:U;:?IUE$9+N]O)A''$@[LQX'I]3B@#\YY)_C
MI\,?^"^/C[]KN^_8Z^+.L?#F[^!UGX'L_$V@>&8YXY]3@U%;IW2(SB1[<H&4
M2A,%ATP0S?:_[+WQK^)GQZ\.^(?&?Q!^`?B#X=V=OXIGL/"^D^+(4BU*]T^*
M*$?;9HD=UA$DQGV)N)\M$)P6(KL/`'Q/^'_Q2T^[U/X?>*[35(K"]>SU!;=_
MWEI<*%9H94.&B?:R-M8`[75NC`G,M/V@?@I??%*Y^"5O\3-)/BRTE$4^@/<A
M;D2&`7`0*V-S^01+M&3LRV,`F@#\^OV@6^/^B_\`!?WP5^V+X>_8L^+7B/X;
M^%/@_?\`@C6O$NB>'(F5=0EO+B82PQ23+)<6X&P&1%P?,!4,!EO6_P!MOX6?
MM`?\%8?AK;?L@Z1\)O$OPP^$>O:K:3_%3Q?XT6&TU35--MYTG_LK3+**625'
MFDCC#W,_EK&BL%60MBOLWQ-XF\.^#/#M]XN\7:Y::9I6F6DEUJ.HW]PL4-M"
MBEGDD=B`JJH)))P`*FOM6TS3-*FUV_OXHK.WMVGGNG<!$B52Q<GI@`9SZ4`?
M"7[=W[%WQC^%7[9_P`_X*1?L>?#`^*H/@WX?NO!OC'X7Z5+'%>7OA:XB:-9-
M-\YTC>XMB[.(&=3*`JALC!H?\%`/A3\4O^"N^J?"']G#P;\#?&W@_P"'7AWX
MFZ9XV^*'C'Q_H#:0?LM@LABTJRMYCYT]S,\I#2!!#$J;B[$A3]F?"W]I/X%_
M&O5KO0?A7\2].UJ]L49[NVM2V^(*RJV0RCE2Z`CJN]<XR,V=9^/?P=\/?$VW
M^#6M>/["W\47-O!/#HTC-YQBG>2.%S@84.\4B*21N92!SQ0!\5_\%'O^">OQ
MG^.O_!3#X&_'SX,V[P>&/$GA?5/`/Q]NX4`$GA998]3CMW(8'$\D4UKG!QYX
M[5+^T]_P3S^,&O?\%@_A]^T?\(K18OAE\1?#]O:_M`6JH#%/<>'KJ/4M%F=<
MC+RS+%;YY'EP.I`W<_;WQ$^*?P^^$VFV6K_$7Q1;Z5;ZEJD.G6$EP&/VB[EW
M>7`@4$L[;2`.Y&.M6?`WC[P5\3/#D7B_X?\`BBRU?3)Y)(X[RPG$B>9&Y22,
MX^ZZ.K*RG#*RD$`@B@#YN_:U\4?$G2?V^/@%?>&OV?/'/B7POHL/B!?&7B30
M=%6>QTR._M$M[82$R!I/WL675$<HA#-@$5\S^,?^"87[1O[%W[?O@KQ#^P[I
M_P#:/[./Q,^+NF>(/B9\.E7(\#:Q;.TW]JV"E@(K6?;LE10=A*C:5V;/U`HH
M`_-/_@J)X3^(7[;G[.OQ5_9T^(O_``3Z\<7?QA\.>);J+]G[Q[X3T`+;EOM"
MR:5JL&L^;C3@BE1=I+)$2(Y0JMO1:^^/V;_#OQ6\'_L[^`O"7QX\4Q:YXXTO
MP7I=IXSUJ$Y34-5BM(DN[A3@9$DZR..!PW05VE%`!1110`4444`%%%%`!111
M0`4444`%%%%`!7F?[1?PI\<?%#5_AO?>#/[*\OPG\2+37M8_M._E@9K2*UNH
M7$/EPR>9+F=2$8HI"G+BO3**`/.OVH?@X?C[\+3\)[[PGHFMZ/J^K6D?B73=
M>OI;>*731*&G\MHHI&,X4`Q_<PX5O,0J#4'[*OPD^*'P5^'M]X,^+/Q'C\77
MZZ]<26'B)HV6ZO;`+'';->9X:[$4:K+(ORR.IDP"Y4>F44`>0?L__!WXK?`_
MQ_X[TZ<:#JWA7Q=X[OO$]IK#:K/%J=JUW'&7M)+;[.T<JQR1[4E$Z_NBBE`8
M\O;^.?P;\>^*_B_\.?CC\.+K2[F_\"S:K%/H.MWTMK;7UO?VRQ.XFCAF,4T3
M1QE3Y;!E>5,KOW#U2B@#SK]E?X)7W[/WP;M_AYJNJ075Y+K>K:O??8MPMH)]
M0U&YOY((`_(AC>Y,:9`)5`Q`)('D7[#_`.Q[\<?V:?B=K7BWX@ZEX8U6R\16
M5\LTD&LW-S=Z0[:WJ%]#!:&2UC!M98KX-)&Q5HYXF96E60>7]144`>&_M$_L
MG3_M%_'SPKKWC1+:?P#IW@O6=(\2Z6FM307&I/=WFEW,4+1)`1);?\2X^8/.
MC9MX&"H8-U7[5WP8\1?'CX.2^"/"&O6VGZM::_H^MZ8^H!S:W$^G:E;7Z6UP
M$!;R93;B)RH)4.6"MC:?2**`/+O@=\%_%?@SXK_$7XV>.'TRUU+Q_>:8SZ-H
MUY)<V]I'968MD<S211-+*Y+%CY:@(D2_-M+'R^X_8^^-UK^WG??M7Z=J'AJ\
MT.;Q+9SP:%J.N70*VO\`8G]G37J1+:E(;^%@RQ$.Z2P74Z,8F(>OJ&B@#SW]
MI;X2ZW\=_AZGP@AEM(]`UZ_C@\9R37.R8Z6`SR10(T$J2O(ZQQLDFU?*>0YR
M`I;^RIX!^*OPQ_9X\+_"WXW:QIVJZ[X=TP:5-J>GWDEPE_;0$Q6T\C2Q1'SG
M@6)I1MP)"^&888^B44`>6?LP?!_QW\))/B#)X\_L=CXG^)FJZ_H[:5?2SE;*
MZ\K8DOF0Q^7*/+^95WJ./G;K7,>,/V?OC->?MS6W[2?AI](?P\OA#2-$FM9?
M&%Y:2L8+Z_FN));2.T>*Z`BO<Q*\JXE0$E1U]ZHH`\N_:F^%OQ(^*.C^#1\,
MK?19;OPY\0]*UZ\AUW5IK.*6VM79I$5X;><F0Y`"E0O<L,8,_P"S5\#]3^"^
MG>,+_7]1M9-2\;^.[_Q1J5IIS,UK8RW"PQB"%G52X"0(S.53?(\C[5W8KTJB
M@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`
K"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@#__V3\_
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<html>
  <head>
    <title>ex10-1.htm</title>
<!-- Licensed to: Skadden-->
<!-- Document Created using EDGARizer 4.0.6.3 -->
<!-- Copyright 1995 - 2008 EDGARfilings, Ltd., an IEC company. All rights reserved -->
</head>
    <body bgcolor="#ffffff" style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
    <div>&#160;</div>
    <div>&#160;</div>
    <div>
      <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">TERMS
AND CONDITIONS OF</font></div>
      <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">PERFORMANCE
SHARE AWARDS ISSUED PURSUANT TO</font></div>
      <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">THE
CHURCHILL DOWNS INCORPORATED</font></div>
      <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2007
OMNIBUS STOCK INCENTIVE PLAN</font></div>
      <div><br></div>
      <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">As
Amended and Restated as of December 19, 2008</font></div>
      <div><br></div>
      <div><br></div>
      <div>
        <div align="left">
          <div align="left">
            <div align="left">
              <div align="left">
                <div align="left">
                  <div align="left">
                    <div align="left">
                      <div align="left">
                        <table cellpadding="0" cellspacing="0" width="100%">
                            <tr>
                              <td align="left" colspan="4" valign="top" width="100%">
                                <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ESTABLISHMENT
      OF THE TERMS AND CONDITIONS OF PERFORMANCE SHARE AWARDS ISSUED PURSUANT TO
      THE CHURCHILL DOWNS INCORPORATED 2007 OMNIBUS STOCK INCENTIVE
      PLAN.</font></div>
                                <div align="left">&#160;</div>
                              </td>
                            </tr>
                            <tr>
                              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                              <td align="left" colspan="3" valign="top" width="95%">
                                <div style="TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB2" style="LETTER-SPACING: 5pt">&#160;&#160;&#160;</font>&#160;(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      The Compensation Committee (the &#8220;Committee&#8221;) of the Board of Directors
      (the &#8220;Board&#8221;) of the Company (as defined below) hereby establishes the
      following Performance Share Awards Terms and Conditions, as may be amended
      from time to time (the &#8220;Performance Share Awards Terms and Conditions&#8221;)
      applicable to Performance Share Awards granted pursuant to the Company's
      2007 Omnibus Stock Incentive Plan, as may be amended from time to time
      (the &#8220;Plan&#8221;).&#160;&#160;Any capitalized terms not defined herein shall
      have the meaning set forth in the Plan.&#160;&#160;In the event of a
      conflict between the provisions of the Plan and the Performance Share
      Awards Terms and Conditions, the provisions of the Plan shall
      prevail.</font></div>
                                <div align="left">&#160;</div>
                              </td>
                            </tr>
                            <tr>
                              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;</font></td>
                              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      (b)</font></td>
                              <td align="left" colspan="2" valign="top" width="87%">
                                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">For
      purposes of Performance Share Awards granted pursuant to the Plan, the
      terms listed below shall have the following meanings:</font></div>
                                <div>&#160;</div>
                              </td>
                            </tr>
                            <tr>
                              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;</font></td>
                              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;</font></td>
                              <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(1)</font></td>
                              <td align="left" valign="top" width="83%">
                                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Award Value</font> shall mean
      the maximum dollar award value a Participant may earn for any Performance
      Period</font></div>
                                <div>&#160;</div>
                              </td>
                            </tr>
                            <tr>
                              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;</font></td>
                              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;</font></td>
                              <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(2)</font></td>
                              <td align="left" valign="top" width="83%">
                                <div><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Cause</font> shall have the
      meaning set forth in an employment agreement or other agreement,
      including, but not limited to a severance agreement, between Participant
      and</font></div>
                              </td>
                            </tr>
                            <tr>
                              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;</font></td>
                              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;</font></td>
                              <td colspan="2" valign="top" width="4%">
                                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">and
      the Company or a Subsidiary that contains a definition of &#8220;Cause.&#8221; If no
      such agreement exists, &#8220;Cause&#8221; shall mean <font style="DISPLAY: inline">the occurrence of any one of the following acts by
      Participant</font>:</font></div>
                                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                              </td>
                            </tr>
                            <tr>
                              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                              <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                              <td align="left" valign="top" width="83%">
                                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(i)&#160;&#160;&#160;&#160;&#160;&#160;
      Participant shall have been convicted of, or shall have pleaded guilty or
      <font style="DISPLAY: inline; FONT-STYLE: italic">nolo contendere</font>
      to, any felony or any crime involving dishonesty or moral
      turpitude;</font></div>
                                <div align="left">&#160;</div>
                              </td>
                            </tr>
                            <tr>
                              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                              <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                              <td align="left" valign="top" width="83%">
                                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(ii)&#160;&#160;&#160;
      &#160; Participant shall have breached his or her Performance Share Award
      Agreement or any employment, non-competition or non-solicitation covenant
      or agreement with the Company or a Subsidiary, whether in an employment
      agreement or otherwise;</font></div>
                                <div align="left">&#160;</div>
                              </td>
                            </tr>
                            <tr>
                              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                              <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                              <td align="left" valign="top" width="83%">
                                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(iii)&#160;&#160;&#160;&#160;
      Participant shall have failed (x) to substantially comply with the rules
      or policies of general application of the Company or a Subsidiary, or (y)
      to devote substantial time and energy to the
  business</font></div>
                              </td>
                            </tr>
                        </table>
                      </div>
                    </div>
                  </div>
                </div>
              </div>
            </div>
          </div>
        </div>
      </div>
      <div><br>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div><br></div>
      <div>
        <div align="left">
          <div align="left">
            <table cellpadding="0" cellspacing="0" width="100%">
                <tr>
                  <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="top" width="83%">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">and
      affairs of the Company or a Subsidiary (other than due to death or
      Disability);</font></div>
                    <div align="left">&#160;</div>
                  </td>
                </tr>
                <tr>
                  <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="top" width="83%">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(iv)&#160;&#160;&#160;&#160;&#160;Participant
      shall have engaged in any fraud, embezzlement, theft or other dishonesty
      against the Company or a Subsidiary;</font></div>
                    <div align="left">&#160;</div>
                  </td>
                </tr>
                <tr>
                  <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="top" width="83%">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(v)&#160;&#160;&#160;&#160;&#160;&#160;Participant&#8217;s
      continued failure to substantially perform Participant&#8217;s
      duties;</font></div>
                    <div align="left">&#160;</div>
                  </td>
                </tr>
                <tr>
                  <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="top" width="83%">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(vi)&#160;&#160;&#160;&#160;&#160;Participant&#8217;s
      repeated acts of insubordination, or failure to execute Company or
      Subsidiary plans and/or strategies; or</font></div>
                    <div align="left">&#160;</div>
                  </td>
                </tr>
                <tr>
                  <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="top" width="83%">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(vii)&#160;&#160;&#160;&#160;Participant
      engages in any act that is intended or may reasonably be expected to harm
      the reputation, business, prospects or operations of the Company or a
      Subsidiary.</font></div>
                    <div align="left">&#160;</div>
                  </td>
                </tr>
                <tr>
                  <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;</font></td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(3)&#160;</font></td>
                  <td align="left" valign="top" width="83%">
                    <div><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Change in Control</font> shall
      mean the first to occur of the following events:</font></div>
                    <div>&#160;</div>
                  </td>
                </tr>
                <tr>
                  <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="top" width="83%">
                    <div style="TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
      acquisition, directly or indirectly, by any individual, entity or group
      (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act)
      (a &#8220;Person&#8221;) of beneficial ownership (within the meaning of Rule 13d-3
      promulgated under the Exchange Act) of more than 50% of either the
      then-outstanding voting securities of the Company (the &#8220;Outstanding
      Company Common Stock&#8221;) or the combined voting power of the
      then-outstanding voting securities of the Company entitled to vote
      generally in the election of directors (the &#8220;Outstanding Company Voting
      Securities&#8221;); provided, however that for purposes of this subsection (i),
      the following acquisitions shall not constitute a Change in Control: (w)
      any acquisition directly from the Company, (x) any acquisition by the
      Company or any of its Subsidiaries, (y) any acquisition by any employee
      benefit plan (or related trust) sponsored or maintained by the Company or
      any corporation controlled by the Company, or (z) any acquisition by any
      corporation pursuant to a transaction which complies with clauses (x), (y)
      and (z) of subsection (iii) of this definition;</font></div>
                    <div align="left">&#160;</div>
                  </td>
                </tr>
                <tr>
                  <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="top" width="83%">
                    <div style="TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;individuals
      who, as of the Effective Date, constitute the Board of Directors of the
      Company (the &#8220;Incumbent Board&#8221;) cease for any reason to constitute at
      least a majority of the Board; provided, however, that any individual
      becoming a director subsequent to the Effective Date whose election, or
      nomination for election by the Company&#8217;s shareholders, was approved by a
      vote of at least a majority of the directors then comprising the Incumbent
      Board shall be considered as though such individual were a member of the
      Incumbent Board, but excluding, for this purpose, any such individual
      whose initial assumption of office occurs as a result of an actual or
      threatened election contest with respect to
the</font></div>
                  </td>
                </tr>
            </table>
          </div>
        </div>
      </div>
      <div><br></div>
      <div>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">- 2
- -</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div><br>&#160;</div>
      <div>
        <div align="left">
          <div align="left">
            <div align="left">
              <div align="left">
                <div align="left">
                  <table cellpadding="0" cellspacing="0" width="100%">
                      <tr>
                        <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td align="left" valign="top" width="83%">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">election
      or removal of directors or other actual or threatened solicitation of
      proxies or consents by or on behalf of a Person other than the
      Board;</font></div>
                          <div align="left">&#160;</div>
                        </td>
                      </tr>
                      <tr>
                        <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td align="left" valign="top" width="83%">
                          <div style="TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;consummation
      of a reorganization, merger or consolidation or sale or other disposition
      of all or substantially all of the assets of the Company or the
      acquisition of assets of another entity (a &#8220;Corporate Transaction&#8221;), in
      each case, unless, immediately following such Corporate Transaction, (x)
      all or substantially all of the individuals and entities who were the
      beneficial owners, respectively, of the Outstanding Company Common Stock
      and Outstanding Company Voting Securities immediately prior to such
      Corporate Transaction beneficially own, directly or indirectly, more than
      50% of, respectively, the then-outstanding shares of Common Stock and the
      combined voting power of the then-outstanding voting securities entitled
      to vote generally in the election of directors, as the case may be, of the
      Company resulting from such Corporate Transaction (including, without
      limitation, an entity which as a result of such transaction owns the
      Company or all or substantially all of the Company&#8217;s assets either
      directly or through one or more subsidiaries) in substantially the same
      proportions as their ownership, immediately prior to such Corporate
      Transaction, of the Outstanding Company Common Stock and Outstanding
      Company Voting Securities, as the case may be, (y) no Person (excluding
      any corporation resulting from such Corporate Transaction or any employee
      benefit plan (or related trust) of the Company or such corporation
      resulting from such Corporate Transaction) beneficially owns, directly or
      indirectly, 50% or more of, respectively, the then Outstanding Company
      Common Stock resulting from such Corporate Transaction or the Outstanding
      Company Voting Securities resulting from such Corporate Transaction,
      except to the extent that such ownership existed prior to the Corporate
      Transaction, and (z) at least a majority of the members of the Board
      resulting from the Corporate Transaction were members of the Incumbent
      Board at the time of the execution of the initial plan or action of the
      Board providing for such Corporate Transaction; or</font></div>
                          <div align="left">&#160;</div>
                        </td>
                      </tr>
                      <tr>
                        <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td align="left" valign="top" width="83%">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;approval
      by the shareholders of the Company of a complete liquidation or
      dissolution of the Company.</font></div>
                          <div align="left">&#160;</div>
                        </td>
                      </tr>
                      <tr>
                        <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;</font></td>
                        <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;</font></td>
                        <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(4)</font></td>
                        <td align="left" valign="top" width="83%">
                          <div><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Company</font> shall mean
      Churchill Downs Incorporated or any successor or succesors.</font></div>
                          <div>&#160;</div>
                        </td>
                      </tr>
                      <tr>
                        <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;</font></td>
                        <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;</font></td>
                        <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(5)</font></td>
                        <td align="left" valign="top" width="83%">
                          <div><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Company Performance Goal</font>
      shall have the meaning set forth in Section 5(a).</font></div>
                          <div>&#160;</div>
                        </td>
                      </tr>
                      <tr>
                        <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;</font></td>
                        <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;</font></td>
                        <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(6)</font></td>
                        <td align="left" valign="top" width="83%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Disability</font> shall mean
      the inability of Participant to perform his normal duties as a result of
      any physical or mental injury or ailment for (i) any consecutive ninety
      (90)-day </font></td>
                      </tr>
                      <tr>
                        <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                        <td align="left" colspan="2" valign="top" width="64%">
                          <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">period,
      or (ii) any one hundred eighty (180) days (whether or not consecutive)
      during any three hundred sixty-five (365) calendar day
      period.&#160;&#160;</font></div>
                          <div align="left">&#160;</div>
                        </td>
                      </tr>
                  </table>
                </div>
              </div>
            </div>
          </div>
        </div>
      </div>
      <div><br>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">- 3
- -</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" colspan="2" valign="top" width="64%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(7)&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">EBITDA</font> shall mean the
      Company's net income from continuing operations plus interest expense plus
      taxes plus depreciation and amortization (after giving effect to accruals
      for the cost of the Performance Share Awards).</font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" colspan="2" valign="top" width="64%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(8)&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Effective Date</font> shall
      mean the date the Committee approves the Performance Share Awards Terms
      and Conditions.</font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" colspan="2" valign="top" width="64%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(9)&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Good Reason</font> shall mean
      <font style="DISPLAY: inline">the occurrence (without Participant&#8217;s
      express consent) of any one of the following acts by the Company or a
      Subsidiary:</font></font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="83%">
                <div align="left"><font size="+0"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline"><font style="DISPLAY: inline">(i)</font></font></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline">the assignment to Participant of any duties
      inconsistent in any material respect with the position of Participant as
      of the effective date of any Change in Control, or any other diminution in
      any material respect in such position, authority, duties or
      responsibilities unless agreed to by
      Participant;</font></font></font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="83%">
                <div align="left"><font size="+0"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline"><font style="DISPLAY: inline">(ii)</font></font></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline">a material change in the geographic location at
      which Participant must perform services for the Company, as required by
      the Company;</font></font></font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="83%">
                <div align="left"><font size="+0"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline"><font style="DISPLAY: inline">(iii)</font></font></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline">a material reduction in Participant&#8217;s base salary
      unless other similarly situated employees are subject to a comparable
      reduction; or</font></font></font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="83%">
                <div align="left"><font size="+0"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline"><font style="DISPLAY: inline">(iv)</font></font></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline">a material breach of a material term of a written
      employment agreement by and between the Company or a Subsidiary and
      Participant.</font></font></font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" colspan="2" valign="top" width="64%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(10)&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Open Performance Period
      </font>shall mean a Performance Period for which the Company Performance
      Goal has not been achieved.</font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" colspan="2" valign="top" width="64%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(11)&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Participant</font> shall mean
      an eligible Employee that has been granted an Award Value pursuant to the
      Performance Share Awards Terms and Conditions.</font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" colspan="2" valign="top" width="64%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(12)&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Performance Period</font> shall
      mean each of the 2008-2012 calendar years, inclusive<font style="DISPLAY: inline; FONT-WEIGHT: bold">.</font></font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" colspan="2" valign="top" width="64%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(13)&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Performance Share</font> shall
      mean a bookkeeping entry that records the equivalent of one
      Share.</font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="8%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" colspan="2" valign="top" width="64%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(14)&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Performance Share Award
      </font>shall mean a<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font>grant of
      Performance Shares following Committee certification of the Company's
      Performance</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div><br></div>
      <div><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">- 4
- -</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="64%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">Goal
      and individual performance goals pursuant to the Performance Share Awards
      Terms and Conditions.</font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="64%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(15)&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Performance Share Award
      Agreement</font> shall mean a written agreement between the Company and a
      Participant with respect to any earned Performance Shares.</font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="64%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(16)&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Retirement</font> shall (i)
      have the meaning assigned to it in Company&#8217;s tax qualified retirement
      plan, or (ii) mean the attainment of such other retirement age as the
      Committee may designate from time to time.</font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="64%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(17)&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Section 162(m)</font> shall
      mean Section 162(m) of the Internal Revenue Code of 1986, as amended, and
      the guidance and regulations promulgated thereunder.</font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="64%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(18)&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Section 409A</font> shall mean
      Section 409A of the Internal Revenue Code of 1986, as amended, and the
      guidance and regulations promulgated thereunder.</font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="64%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(19)&#160;&#160;&#160;
      <font style="DISPLAY: inline; FONT-WEIGHT: bold">Share</font> shall mean
      one share of the Company&#8217;s common stock, no par value, or any security
      into which a Share may be converted by reason of a merger, acquisition or
      any other transaction or event that affects the stock of the
      Company.</font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="6%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="64%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">(20)&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Termination Date</font> shall
      mean the date set forth in Section 12(a).</font></div>
              </td>
            </tr>
            <tr>
              <td colspan="3" valign="top" width="74%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" colspan="3" valign="top" width="74%">
                <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ADMINISTRATION
      OF THE PERFORMANCE SHARE AWARDS TERMS AND CONDITIONS.</font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" colspan="3" valign="top" width="74%">
                <div style="TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Performance Share Awards
      Terms and Conditions shall be administered by the
      Committee.&#160;&#160;The Committee shall have the sole authority, in its
      absolute discretion, to adopt, amend and rescind any and all rules and
      regulations as, in its opinion, may be advisable in the administration,
      construction and interpretation of the Performance Share Awards Terms and
      Conditions, its rules and regulations, and the instruments evidencing
      awards granted under these terms and conditions, and to make all other
      determinations deemed necessary or advisable for the administration of
      these terms and conditions.&#160;&#160;All decisions, determinations and
      interpretations of the Committee shall be binding on all
      Participants.</font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" colspan="3" valign="top" width="74%">
                <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;ELIGIBILITY.</font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" colspan="3" valign="top" width="74%">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Committee shall determine the
      Employees that will be eligible for grant of Performance Share Awards
      under the Performance Share Awards Terms and Conditions, as well as his or
      her Award Value for each of the Performance Periods.</font></div>
                <div align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" colspan="3" valign="top" width="74%">
                <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;AVAILABILITY
      OF PERFORMANCE SHARE AWARDS.</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div>&#160;</div>
      <div>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">- 5
- -</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div>&#160;</div>
      <div>&#160;</div>
      <div>
        <div align="left">
          <table cellpadding="0" cellspacing="0" width="100%">
              <tr>
                <td align="left" valign="top" width="74%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Pursuant to the terms of the
      Plan, up to 300,000 Performance Share Awards may be granted under the
      Performance Share Awards Terms and Conditions to any Participant in any
      calendar year.&#160;&#160;Performance Shares that are forfeited shall
      again be available for grant under the Plan and the Performance Share
      Awards Terms and Conditions.</font></div>
                  <div align="left">&#160;</div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="74%">
                  <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;PERFORMANCE
      MEASURES.</font></div>
                  <div align="left">&#160;</div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="74%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Thirty
      percent (30%) of each Performance Share Award shall be based upon the
      Company's achievement of minimum EBITDA performance goal for a particular
      Performance Period.&#160;&#160;The minimum EBITDA goal for each
      Performance Period is as follows (each, a &#8220;Company Performance
      Goal&#8221;):</font></div>
                </td>
              </tr>
          </table>
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2008
      - $70 million,</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2009
      - $85 million,</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2010
      - $100 million,</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2011
      - $115 million,</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 90pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2012
      - $130 million.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The determination of whether such
      Company Performance Goal has been achieved shall be made by the Company's
      outside auditors and certified by the Committee, as described
      below.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Seventy
      percent (70%) of each Performance Share Award shall be based upon the
      Participant's achievement of his or her individual performance objectives,
      which shall be recommended each year by the Company's CEO and approved by
      the Committee.&#160;&#160;The determination of whether such individual
      performance goals have been achieved shall be made by the Committee upon
      advice of the Company's CEO.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;To
      the extent necessary to avoid the limitation under Section 162(m) with
      respect to the deductibility of the payment of any Performance Share Award
      payable to a &#8220;covered employee&#8221; (as defined under Section 162(m)), the
      Performance Share Award shall be treated as two separate grants, the terms
      of which are respectively set forth in Sections 5(a) and
      5(b).&#160;&#160;The grant set forth in Section 5(a) is intended to
      satisfy the &#8220;qualified performance-based compensation&#8221; exception under
      Treasury Regulation Section 1.162-27, as may be amended or
      replaced.&#160;&#160;Consistent with that intent, with respect to any
      &#8220;covered employee,&#8221; the Performance Share Awards Terms and Conditions and
      applicable Performance Share Award Agreements shall be interpreted in a
      manner consistent with this exception, and in the event that any provision
      that is necessary for the Performance Share Award payable to such &#8220;covered
      employee&#8221; to comply with such exception is determined by the Committee, in
      its sole discretion, to have been omitted, such omitted provision shall be
      deemed included herein and is hereby incorporated as part of such terms
      and conditions.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;GRANT
      OF PERFORMANCE SHARE AWARDS.</font></div>
              </td>
            </tr>
        </table>
      </div>
    </div>
    <div align="justify">&#160;</div>
    <div align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">- 6
- -</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div align="justify">&#160;</div>
    <div align="justify">&#160;</div>
    <div align="justify">
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
      Committee shall certify the Company's EBITDA results and the results of
      each Participant's individual performance goals in the first quarter of
      each calendar year for the years 2009 through 2013, inclusive, following
      the Company's completion of its year end financial reports, as
      audited.&#160;&#160;Except as otherwise provided in the Performance Share
      Awards Terms and Conditions, following such certification, each
      Participant shall be granted a Performance Share Award in respect of
      applicable Performance Periods; provided that no Performance Share Award
      for a particular Performance Period shall be granted unless and until the
      Company's Performance Goal for such Performance Period has been achieved;
      and provided further, that no Performance Share Award may be granted in
      respect of a future Performance Period.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
      value of the Performance Share Award shall be based upon Participant's
      applicable Award Value and the Committee's certification of the Company's
      Performance Goal and Participant's individual performance
      objectives.&#160;&#160;Except as otherwise provided, if the Performance
      Share Award is settled in Shares, the number of Shares subject to such
      Award shall be determined by dividing the dollar value of the Performance
      Share Award for the particular Performance Period by the closing price of
      a Share on the last business day of the calendar year immediately
      preceding the date of grant.&#160;&#160;Except as otherwise set forth
      herein, the Performance Share Award shall vest and be payable in
      accordance with Section 7 below.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In
      the event the Company does not achieve its Company Performance Goal in the
      scheduled year, the Participant's Award Value attributable to such Company
      Performance Goal may be achieved in a future year, in which case, the
      Performance Share Award shall be granted in the first quarter following
      the year such Company Performance Goal is achieved.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
      individual performance portion of Participant's Performance Share Award
      for the scheduled year shall be based on the Company's CEO recommendation
      and Committee's assessment of the Participant's attainment of performance
      objectives for the year in which the Company Performance Goal is met (and
      not attainment of individual performance objectives for the originally
      scheduled year).</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;If
      the Performance Share Award is settled in Shares, the number of Shares
      subject to such Performance Share Award shall be determined by dividing
      the dollar value of the Performance Share Award for the particular
      Performance Period by the closing price of a Share on the last business
      day of the calendar year immediately preceding the date of grant of the
      Performance Share Award.&#160;&#160;Such Performance Share Award shall
      vest and be payable in accordance with the vesting schedule attributable
      to the underlying Performance Period as set forth in Section 7
      below.</font></div>
                <div style="DISPLAY: block; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Example:</font></div>
                <div style="DISPLAY: block; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 108pt"></font>(x)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Facts:&#160;&#160;Participant
      was granted an Award Value of $100,000 for 2008, $125,000 for 2009 and
      $150,000 for 2010.&#160;&#160;The Company did not achieve either of the
      2008 or 2009 Company Performance Goal, but achieved the 2010</font></div>
                <div style="DISPLAY: block; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25">&#160;</div>
              </td>
            </tr>
        </table>
      </div>
    </div>
    <div align="justify">&#160;</div>
    <div align="justify">&#160;</div>
    <div align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">- 7
- -</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div align="justify">&#160;</div>
    <div align="justify">
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td align="left" colspan="2" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">Company
      Performance Goal.&#160;&#160;For the 2010 Performance Period, the
      Committee determined that Participant met 50% of his individual
      performance objectives.&#160;&#160;The closing price of the Company's
      Common Stock on December 31, 2010 was $100.00 per share.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td colspan="2" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 108pt"></font>(y)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Awards:&#160;&#160;In
      the first quarter of 2011, Participant would be granted three separate
      Performance Share Awards.</font></div>
                <div style="DISPLAY: block; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="7%">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"><font style="FONT-SIZE: 8pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 6pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 6pt; FONT-FAMILY: times new roman"><font style="FONT-SIZE: 6pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman"><font style="FONT-SIZE: 7pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman"><font style="FONT-SIZE: 7pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: sy
mbol"><font style="FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font size="3" style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol">&#183;</font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></div>
              </td>
              <td align="left" valign="top" width="67%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">The
      Performance Share Award in respect of the 2008 Performance Period would
      have a dollar value of $65,000 (30% x $100,000) + (70% x $100,000 x 50%)
      and if settled in Shares, would cover 650 Shares ($65,000 &#247; 100.00 per
      share).&#160;&#160;This Performance Share Award would vest in quarterly
      installments over a period of thirty-six months, beginning on March 31,
      2011.</font></div>
                <div style="DISPLAY: block; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="7%">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12px; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12px; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12px; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12px; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12px; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12px; FONT-FAMILY
: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12px; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12px; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: s
ymbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font size="3" style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol">&#183;</font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></font></div>
              </td>
              <td align="left" valign="top" width="67%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">The
      Performance Share Award in respect of the 2009 Performance Period would
      have a dollar value of $81,250 (30% x $125,000) + (70% x $125,000 x 50%)
      and if settled in Shares, would cover 812 Shares ($81,250 &#247; 100.00 per
      share), plus a cash payment in respect of the remaining half
      share.&#160;&#160;This Performance Share Award would vest in quarterly
      installments over a period of thirty-six months, beginning on March 31,
      2011.</font></div>
                <div style="DISPLAY: block; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25">&#160;</div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="7%">
                <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol"><font size="3" style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: symbol">&#183;</font></font></font></font></font></font></font></font></font></div>
              </td>
              <td align="left" valign="top" width="67%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">The
      Performance Share Award in respect of the 2010 Performance Period would
      have a dollar value of $97,500 (30% x $150,000) + (70% x $150,000 x 50%)
      and if settled in Shares, would cover 975 Shares ($97,500 &#247; 100.00 per
      share).&#160;&#160;This Performance Share Award would vest in quarterly
      installments over a period of twenty-four months, beginning on March 31,
      2011.</font></div>
                <div style="DISPLAY: block; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25">&#160;</div>
              </td>
            </tr>
            <tr>
              <td colspan="2" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Once
      a Performance Share Award has been granted for a particular Performance
      Period, such Performance Period shall be closed.&#160;&#160;Only one
      Performance Share Award grant may be awarded with respect to any single
      Performance Period.</font></div>
                <div style="DISPLAY: block; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25">&#160;</div>
              </td>
            </tr>
            <tr>
              <td colspan="2" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;VESTING
      AND PAYMENT OF PERFORMANCE SHARE AWARDS.</font></div>
                <div style="DISPLAY: block; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25">&#160;</div>
              </td>
            </tr>
            <tr>
              <td colspan="2" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt; TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Subject
      to Participant's continued employment with the Company or a Subsidiary on
      any applicable vesting date, Performance Share Awards granted in respect
      of the 2008 and 2009 Performance Periods shall vest over a period of
      thirty-six (36) months in equal quarterly installments on the last day of
      each quarter, at which time one-twelfth (1/12th) of the award shall be
      payable as soon as administratively practicable following each applicable
      vesting date, but in no event later than sixty (60) days following each
      applicable vesting date.&#160;&#160;The first vesting date shall begin on
      March 31 of the year of grant.</font></div>
                <div style="DISPLAY: block; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25">&#160;</div>
              </td>
            </tr>
            <tr>
              <td colspan="2" valign="top" width="74%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Subject
      to Participant's continued employment with the Company or a Subsidiary on
      any applicable vesting date, Performance Share Awards granted in respect
      of the 2010 and 2011 Performance Periods shall vest over a period of
      twenty-four (24)</font></div>
                <div style="DISPLAY: block; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25">&#160;</div>
              </td>
            </tr>
        </table>
      </div>
    </div>
    <div align="justify">&#160;</div>
    <div align="justify">&#160;</div>
    <div align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">- 8
- -</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div align="justify">&#160;</div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">months in
equal quarterly installments on the last day of each quarter, at which time
one-eighth (1/8th) of the award shall be payable as soon as administratively
practicable following each applicable vesting date, but in no event later than
sixty (60) days following each applicable vesting date.&#160;&#160;The first
vesting date shall begin on March 31 of the year of grant.</font></div>
    <div align="justify">&#160;</div>
    <div style="TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Subject
to Participant's continued employment with the Company or a Subsidiary on any
applicable vesting date, Performance Share Awards granted in respect of the 2012
Performance Period shall vest over a period of twelve (12) months in equal
quarterly installments on the last day of each quarter, at which time one-fourth
(1/4th) of the award shall be payable as soon as administratively practicable
following each applicable vesting date, but in no event later than sixty (60)
days following each applicable vesting date.&#160;&#160;The first vesting date
shall begin on March 31 of the year of grant.</font></div>
    <div><br></div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;At
or before each vesting date, the Committee shall determine, in its sole
discretion, whether the Performance Share Award shall be settled in cash, Shares
or a combination of both.</font></div>
    <div><br></div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;DIVIDEND
EQUIVALENTS.</font></div>
    <div><br></div>
    <div style="TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Participants shall be entitled to
accrue dividend equivalents with respect to the Performance Shares that are
subject to the unvested portion of any Performance Share Award, which dividend
equivalents shall be payable as soon as administratively practicable, but in no
event later than sixty (60) days, following the vesting of the Performance Share
Award related to such dividend equivalent amounts, but in no event later than
March 15<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">th</font> of the
year following the year of vesting.&#160;&#160;Dividend equivalents will be
recorded as a dollar value and shall not be credited with interest or accrue
additional dividend equivalents, but, upon vesting of the Performance Share
Award related to such dividend equivalent amounts, may be settled in cash,
Shares or a combination of both, as determined by the Committee.</font></div>
    <div><br></div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;EXTRAORDINARY
EVENTS.</font></div>
    <div><br></div>
    <div style="TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>If the Committee determines that one or
more extraordinary events has occurred during a Performance Period that alter
the basis upon which the performance measures set forth in Section 5 are to be
calculated, the Committee may adjust these performance measures as may be
necessary to exclude the effect of these events.&#160;&#160;Events warranting
such action may include, but are not limited to, major acquisitions or
divestitures, significant changes in accounting practices, or a recapitalization
of the Company.&#160;&#160;Notwithstanding the foregoing, the Committee shall
not have the discretion to increase the Award Value payable that would otherwise
be due upon certification of the Company's Performance Goal and individual
performance goals.</font></div>
    <div align="justify">&#160;</div>
    <div align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">- 9
- -</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div align="justify">&#160;</div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;TERMINATION
OF EMPLOYMENT.</font></div>
    <div><br></div>
    <div style="TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Except
as set forth in Sections 10(b) and 11(a) below, termination of a Participant's
employment with the Company or a Subsidiary prior to full vesting of the
Performance Share Award for any reason (whether voluntary or involuntary) shall
result in forfeiture (i) of any then unvested Performance Share Awards and any
accrued but unpaid dividend equivalents thereon and (ii) of all opportunity to
receive a Performance Share Award for any Open Performance Period.</font></div>
    <div><br></div>
    <div style="TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Termination
of a Participant's employment with the Company by reason of Participant's death,
Disability, or Retirement shall result in (i) full acceleration of vesting of
any earned but unvested Performance Share Awards and accrued dividend
equivalents thereon and payout as soon as administratively practicable, but in
no event later than sixty (60) days, following such termination date, in a lump
sum to the Participant (or the Participant's beneficiary or estate in the event
of death) and (ii) forfeiture of all opportunity to receive a Performance Share
Award for any Open Performance Period.</font></div>
    <div><br></div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;CHANGE
IN CONTROL.</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Termination
of Participant's employment with the Company or a Subsidiary by the Company
without Cause (but not by reason of Participant's death or Disability) or by
Participant for Good Reason as set forth in Section 11(a)(4) below, each within
24 months following a Change in Control, shall result in the
following:</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Full
acceleration of vesting and payout of Participant&#8217;s earned but unvested
Performance Share Awards as soon as administratively practicable, but in no
event later than sixty (60) days, following such termination date, in a lump sum
of such accelerated Performance Share Awards and accrued dividend equivalents
thereon to the Participant;</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Automatic
grant of a Performance Share Award equal to fifty percent (50%) of any of
Participant's unearned Award Values (without regard to the satisfaction of the
Company Performance Goal or Participant's individual performance objectives) for
any Open Performance Periods.&#160;&#160;Such Performance Share Award shall be
fully vested and payable as soon as administratively practicable, but in no
event later than sixty (60) days, following such termination date, in a lump
sum.&#160;&#160;To the extent the Performance Share Award is settled in Shares,
the number of Shares subject to such Award shall be determined by dividing fifty
percent (50%) of any of Participant's unearned Award Values for any Open
Performance Period by the closing price of a Share on the last business day
immediately prior to Participant&#8217;s termination of employment; and</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(3)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Immediate
termination and forfeiture of the remaining (50%) of any of Participant's
unearned Award Values for any Open Performance Period.</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(4)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Notwithstanding
any provision to the contrary, a Participant&#8217;s employment with the Company by
Participant shall be for Good Reason only if Participant terminates employment
with the Company or a Subsidiary within two years</font></div>
    <div align="justify">&#160;</div>
    <div align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">- 10
- -</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div align="justify">&#160;</div>
    <div style="TEXT-ALIGN: justify" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">following
the initial existence of one or more Good Reason conditions and prior to such
termination, Participant gives the Company written notice of the existence of
Good Reason within sixty (60) days of the initial existence of Good Reason with
a description of the conditions, events or actions constituting Good Reason and
upon receipt of such notice by the Company, the Company shall have sixty (60)
days following such receipt to cure and remedy the Good Reason
condition.&#160;&#160;If the Company does cure and remedy such condition, there
shall not be a termination by Participant for Good Reason.</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;In
the event the Performance Share Awards Terms and Conditions are terminated
following a Change in Control but prior to the Termination Date, the following
shall apply:</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Subject
to Sections 10(b) and 11(a)(1), any earned but unvested Performance Share Awards
and accrued dividend equivalents thereon shall continue to vest in accordance
with its existing vesting schedule;</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Participant
shall be automatically granted a Performance Share Award, effective immediately
prior to the termination of the Performance Share Awards Terms and Conditions,
equal to fifty percent (50%) of any of Participant's unearned Award Values
(without regard to the Company Performance Goal or Participant's individual
performance objectives) for any Open Performance Period.&#160;&#160;To the
extent the Performance Share Award is settled in Shares, the number of Shares
subject to such Award shall be determined by dividing fifty percent (50%) of any
of Participant's unearned Award Values for any Open Performance Period by the
closing price of a Share on the last business day immediately prior to the
termination of the Performance Share Awards Terms and
Conditions.&#160;&#160;Subject to Sections 10(b) and 11(a)(1), such Performance
Share Award shall vest in accordance with the vesting schedule attributable to
the underlying Open Performance Period of each such Performance Share Award,
with the first vesting date beginning on the last day of the calendar quarter in
which such Performance Share Award was granted.</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>(3)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
remaining (50%) of any of Participant's unearned Award Values for any Open
Performance Period shall terminate in full and Participant shall not be entitled
to any Performance Share Award in respect of such Award Values.</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 54pt"></font>&#160;&#160;&#160;&#160;&#160;&#160;(4)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Example:</font></div>
    <div align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 75pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 5pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 5pt">&#160;&#160;&#160;</font>&#160;(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Facts:&#160;&#160;Participant
was granted an Award Value of $100,000 for 2008, $125,000 for 2009, $150,000 for
2010, $200,000 for 2011 and $250,000 for 2012.&#160;&#160;The Company achieved
the 2008 Company Performance Goal, but did not achieve the 2009 Company
Performance Goal.&#160;&#160;In 2010, the Company was acquired in a transaction
that constituted a Change in Control and on June 15, 2010, the successor
corporation terminated the Performance Share Awards Terms and
Conditions.&#160;&#160;The closing price of the Company's Common Stock on the
business day prior to the termination of the Performance Share Awards Terms and
Conditions was $100.00 per share.</font></div>
    <div align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 75pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 5pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 5pt">&#160;&#160;&#160;</font>&#160;(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Awards:&#160;&#160;The
Performance Share Award granted in respect of the 2008 Performance Period would
continue to vest according to its existing schedule.&#160;&#160;As a result of
the termination of the Performance Share Awards Terms and</font></div>
    <div style="MARGIN-LEFT: 75pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">- 11
- -</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Conditions,
each Participant would be granted four separate Performance Share
Awards.</font></div>
    <div align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 55pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif"><font size="+0">&#183;</font>&#160;&#160;</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      Performance Share Award in respect of the 2009 Performance Period would
      have a dollar value of $62,500 (50% x $125,000) and if settled in Shares,
      would cover 625 Shares ($62,500 &#247; 100.00 per share).&#160;&#160;This
      Performance Share Award would vest in quarterly installments over a period
      of thirty-six months, beginning on June 30,
  2010.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 55pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      Performance Share Award in respect of the 2010 Performance Period would
      have a dollar value of $75,000 (50% x $150,000) and if settled in Shares,
      would cover 750 Shares ($75,000 &#247; 100.00 per share).&#160;&#160;This
      Performance Share Award would vest in quarterly installments over a period
      of twenty-four months, beginning on June 30,
  2010.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 55pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      Performance Share Award in respect of the 2011 Performance Period would
      have a dollar value of $100,000 (50% x $200,000) and if settled in Shares,
      would cover 1,000 Shares ($100,000 &#247; 100.00 per share).&#160;&#160;This
      Performance Share Award would vest in quarterly installments over a period
      of twenty-four months, beginning on June 30,
  2010.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">
          <tr valign="top">
            <td align="right" style="WIDTH: 55pt">
              <div><font style="DISPLAY: inline; FONT-SIZE: 12pt;" face="Symbol, serif">&#183;&#160;&#160;</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      Performance Share Award in respect of the 2012 Performance Period would
      have a dollar value of $125,000 (50% x $250,000) and if settled in Shares,
      would cover 1,250 Shares ($125,000 &#247; 100.00 per share).&#160;&#160;This
      Performance Share Award would vest in quarterly installments over a period
      of twelve months, beginning on June 30,
2010.</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;EXPIRATION
OF THE PERFORMANCE SHARE AWARDS TERMS AND CONDITIONS; TERMINATION OF THE
PERFORMANCE SHARE AWARDS TERMS AND CONDITIONS.</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
Performance Share Awards Terms and Conditions shall automatically terminate on
the date the Committee determines the grants of Performance Share Awards, if
any, in respect of 2012 Performance Period (the "Termination Date"), which date
shall not be later than March 31, 2013.&#160;&#160;Any Open Performance Periods
as of such date shall be immediately terminated and Participant shall not be
entitled to any Performance Share Award for any remaining Open Performance
Period.</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Except as set
forth in Section 11(b), in the event the Performance Share Awards Terms and
Conditions are terminated prior to the Termination Date, the following shall
apply:</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 54pt"></font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;
(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Subject to
Section 10(b), any earned but unvested Performance Share Awards and accrued
dividend equivalents thereon shall continue to vest in accordance with its
existing vesting schedule; and</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>&#160;
(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Participant
shall be automatically granted a Performance Share Award, effective immediately
prior to the termination of the Performance Share Awards Terms and Conditions,
equal to fifty percent (50%) of any of Participant's unearned</font></div>
    <div align="justify">&#160;</div>
    <div align="justify">&#160;</div>
    <div align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">- 12
- -</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Award
Values (without regard to the Company Performance Goal or Participant's
individual performance objectives) for any Open Performance
Period.&#160;&#160;To the extent the Performance Share Award is settled in
Shares, the number of Shares subject to such Award shall be determined by
dividing fifty percent (50%) of any of Participant's unearned Award Values for
any Open Performance Period by the closing price of a Share on the last business
day immediately prior to the termination of the Performance Share Awards Terms
and Conditions.&#160;&#160;Subject to Section 10(b), such Performance Share
Award shall vest in accordance with the vesting schedule attributable to the
underlying Open Performance Period of each such Performance Share Award, with
the first vesting date beginning on the last day of the calendar quarter in
which such Performance Share Award was granted.</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font>&#160;
(3)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
remaining (50%) of any of Participant's unearned Award Values shall terminate in
full and Participant shall not be entitled to any Performance Share Award in
respect of such unearned Award Values.</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;UNFUNDED
STATUS OF THE PERFORMANCE SHARE AWARDS TERMS AND CONDITIONS.</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>The Performance Share Awards Terms and
Conditions are intended to constitute an "unfunded" plan for incentive
compensation.&#160;&#160;With respect to any payments not yet made to a
Participant by the Company, nothing contained herein shall give any such
Participant any rights that are greater than those of a general creditor of the
Company.</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;SECTION
409A OF THE CODE.</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 5pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;
The Performance Share Awards Terms and Conditions and applicable Performance
Share Award Agreements are intended to comply with the requirements of Section
409A.&#160;&#160;Consistent with that intent, the Performance Share Awards Terms
and Conditions and applicable Performance Share Award Agreements shall be
interpreted in a manner consistent with Section 409A and in the event that any
provision that is necessary for the Performance Share Awards Terms and
Conditions to comply with Section 409A is determined by the Committee, in its
sole discretion, to have been omitted, such omitted provision shall be deemed
included herein and is hereby incorporated as part of such terms and
conditions.&#160;&#160;Further, all payments hereunder shall be made in no event
later than the last day of the &#8220;applicable 2 &#189; month period&#8221;, as such term is
defined under Section 409A in order that such amounts be treated as a short-term
deferral for purposes of Section 409A.</font></div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 5pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;
Notwithstanding any provision to the contrary, the provisions in this Section 14
shall apply to the extent required in order to avoid accelerated taxation and/or
tax penalties under Section 409A.&#160;&#160;If Participant is a &#8220;specified
employee&#8221; (as defined under Section 409A) as of the date of his or her
&#8220;separation from service&#8221; (as defined under Section 409A) from the Company or
Subsidiary, then any payment of the Performance Share Award (and related
dividend equivalents) scheduled to be paid to such Participant during the first
six (6) month period following such separation date shall not be paid until the
earlier of (a) the expiration of the six (6) month period measured from the date
of Participant&#8217;s &#8220;separation from service&#8221; (b) the date of Participant&#8217;s
death.&#160;&#160;All payments</font></div>
    <div align="justify">&#160;</div>
    <div align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">- 13
- -</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div align="justify">&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">and
benefits that are delayed pursuant to the immediately preceding sentence shall
be paid to Participant in a lump sum as soon as practicable following the
expiration of such period (or if earlier, upon Participant&#8217;s death) but in no
event later than thirty (30) days following such period.&#160;&#160;No
Performance Share Award (and related dividend equivalents) that is payable upon
a termination of Participant&#8217;s employment or services from the Company shall be
payable unless such termination also meets the requirements of a &#8220;separation
from service&#8221; under Section 409A.&#160;&#160;For purposes of Section 409A of the
Code, to the extent that any payment payable under the Performance Share Awards
Terms and Conditions is to be paid in installments, each such payment shall be
treated as a separate identified payment for purposes of Section 409A of the
Code.</font></div>
    <div align="justify">&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 5pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 5pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 5pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 5pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 5pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 5pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 5pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 5pt">&#160;&#160;&#160;</font>&#160;</font></div>
    <div align="justify">&#160;</div>
    <div align="left">&#160;</div>
    <div align="justify">
    </div>
    <div>&#160;</div>
    <div align="center">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td width="100%">
              <div style="TEXT-ALIGN: center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;- 14
      -</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div>&#160;</div>
  </body>
</html>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
