<SUBMISSION>
<ACCESSION-NUMBER>0000891554-01-502165
<TYPE>DEF 14A
<PUBLIC-DOCUMENT-COUNT>4
<PERIOD>20010524
<FILING-DATE>20010423
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CHEESECAKE FACTORY INCORPORATED
<CIK>0000887596
<ASSIGNED-SIC>5812
<IRS-NUMBER>510340466
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1229
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>DEF 14A
<ACT>34
<FILE-NUMBER>000-20574
<FILM-NUMBER>1608792
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>26950 AGOURA RD
<CITY>CALABASAS HILLS
<STATE>CA
<ZIP>91301
<PHONE>8188809323
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>26950 AGOURA RD
<STREET2>26950 AGOURA RD
<CITY>CALABASAS HILLS
<STATE>CA
<ZIP>91301
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>d70455_def14a.htm
<DESCRIPTION>DEFINITIVE PROXY
<TEXT>

<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 Final//EN">
<HTML>
<HEAD>
     <!-- Created by HTML Ease (HTML Ease Pro 1.0 (0.9md)) -->
     <!-- Project:        X:\JOBS\70455\a70455.hep                                         -->
     <!-- Control Number: 70455                                                            -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    The Cheesecake Factory                                           -->
     <!-- Project Name:   DEF 14A                                                          -->
     <!-- Firm Name:      ADP                                                              -->
     <TITLE>DEF 14A</TITLE>
</HEAD>
<BODY>



<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>


<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT SIZE=2>SCHEDULE 14A </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(Rule 14a-101) </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>INFORMATION REQUIRED IN
PROXY STATEMENT </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT SIZE=2>SCHEDULE 14A INFORMATION </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT SIZE=2>Proxy Statement Pursuant to Section 14(a) of the <BR>Securities
Exchange Act of 1934 (Amendment No.&nbsp;&nbsp;&nbsp;) </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT SIZE=2>Filed by the Registrant [X]<BR>Filed by a Party other than the Registrant [_] </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT SIZE=2>Check the appropriate box: </FONT></P>
<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Reg Cover Table 2 Col 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=50%><FONT SIZE=2>[_]&nbsp;&nbsp;Preliminary Proxy Statement </FONT></TD>
<TD ALIGN=LEFT WIDTH=50%><FONT SIZE=2>[_]&nbsp;&nbsp;Soliciting Material Under Rule 14a-12 </FONT></TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Reg Cover Table 2 Col 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=50%><FONT SIZE=2>[_]&nbsp;&nbsp;Confidential, For Use of the<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commission Only (as permitted by <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rule 14a-6(e)(2)) </FONT></TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Reg Cover Table 2 Col 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=50%><FONT SIZE=2>[X]&nbsp;&nbsp;Definitive Proxy Statement </FONT></TD>
<TD ALIGN=LEFT WIDTH=50%><FONT SIZE=2>&nbsp; </FONT></TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Reg Cover Table 2 Col 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD ALIGN=LEFT WIDTH=80%><FONT SIZE=2>[_]&nbsp;&nbsp;Definitive Additional Materials </FONT></TD>
<TD ALIGN=LEFT WIDTH=20%><FONT SIZE=2>&nbsp; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Start" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>


<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT SIZE="2"><B>The Cheesecake Factory Incorporated</B><BR>(Name of Registrant as Specified
In Its Charter) </FONT> </P>


<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT SIZE=2>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>(Name of Person(s) Filing Proxy
Statement, if other than the
Registrant) </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT SIZE=2>Payment of Filing Fee (Check the appropriate box): </FONT></P>
<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT SIZE=2>[X] </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=94%><FONT SIZE=2>No
fee required. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT SIZE=2>[_] </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=94%><FONT SIZE=2>Fee
computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2>(1) </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=91%><FONT SIZE=2>Title
of each class of securities to which transaction applies:<BR><BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151; </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2>(2) </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=91%><FONT SIZE=2>Aggregate
number of securities to which transaction applies:<BR><BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151; </FONT></TD>
</TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2>(3) </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=91%><FONT SIZE=2>Per
unit price or other underlying value of transaction computed pursuant to Exchange Act
Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it
was determined):<BR><BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151; </FONT></TD>
</TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2>(4) </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=91%><FONT SIZE=2>Proposed
maximum aggregate value of transaction:<BR><BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151; </FONT></TD>
</TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2>(5) </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=91%><FONT SIZE=2>Total
fee paid:<BR><BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151; </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT SIZE=2>[_] </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=94%><FONT SIZE=2>Fee
paid previously with preliminary materials: </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT SIZE=2>[_] </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=94%><FONT SIZE=2>Check
box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and
identify the filing for which the offsetting fee was paid previously. Identify the
previous filing by registration statement number, or the Form or Schedule and the date of
its filing. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2>(1) </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=91%><FONT SIZE=2>Amount
Previously Paid:<BR><BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151; </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2>(2) </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=91%><FONT SIZE=2>Form,
Schedule or Registration Statement No.:<BR><BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151; </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2>(3) </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=91%><FONT SIZE=2>Filing
Party:<BR><BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151; </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2>(4) </FONT></TD>
<TD WIDTH=3%><FONT SIZE=2> </FONT></TD>
<TD WIDTH=91%><FONT SIZE=2>Date
Filed:<BR><BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151; </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><IMG SRC="g70455_logo.gif"> </FONT></P>




<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>April 23, 2001 </FONT></P>

<BR><BR>


<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dear Stockholder: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
are cordially invited to attend The Cheesecake Factory Incorporated Annual Meeting of
Stockholders on Thursday, May 24, 2001 at 10:00 a.m. (Pacific Time). The meeting will be
held at The Cheesecake Factory&reg; restaurant located at 605 North Harbor Drive, Redondo
Beach, California. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
matters to be acted upon at the meeting are described in the attached Notice of Annual
Meeting and Proxy Statement. Our agenda for the Annual Meeting will also include an
overview of the Company&#146;s business operations and recent performance results. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
may bring guests to the Annual Meeting, but we reserve the right to limit the number of
your guests in order to ensure adequate seating for stockholders. If you plan to attend,
please bring the Admittance Slip on the back cover. Regardless of whether or not you will
attend, please vote by signing, dating and returning the enclosed proxy card. Or, you can
vote by telephone or Internet (see back cover). Voting by mail will not prevent you from
voting in person at the meeting. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Signature (Single)" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
     <TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Sincerely,<BR><BR>/s/ David Overton
          <BR><BR>David Overton<BR><I>Chairman, President and<BR>Chief Executive Officer</I> </FONT></FONT> </TD>
</TR>
</TABLE>
<BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 2; page: 2" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>


<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THE
CHEESECAKE FACTORY INCORPORATED</FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26950 Agoura
Road<BR>Calabasas Hills, California 91301</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Cutoff Rule" -->
<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=CENTER>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTICE OF
ANNUAL MEETING OF STOCKHOLDERS<BR>on<BR>May 24, 2001</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Cutoff Rule" -->
<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=CENTER>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
2001 Annual Meeting of Stockholders of THE CHEESECAKE FACTORY INCORPORATED (the
&#147;Company&#148;) will be held at The Cheesecake Factory&reg; restaurant located at 605 North
Harbor Drive, Redondo Beach, California, on Thursday, May 24, 2000, beginning at 10:00
a.m. Pacific Time, for the following purposes: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
elect one nominee to serve as a director of the Company for a three-year term and until a
respective successor shall be elected and qualified;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
approve the Company&#146;s 2001 Stock Option Plan; and</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
transact such other business as may properly come before the meeting or any adjournment
thereof.</FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors has fixed the close of business on April 12, 2001 as the record date
for the determination of stockholders entitled to notice of and to vote at the Annual
Meeting or any adjournment thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Signature (Single)" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">By Order of the Board of Directors,
<BR><BR>/s/ Linda J. Candioty<BR><BR>Linda J. Candioty<BR><I>Secretary</I> </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Calabasas Hills, California<BR>April 23,
2001 </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 3; page: 3" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>


<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THE
CHEESECAKE FACTORY INCORPORATED</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Cutoff Rule" -->
<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=CENTER>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROXY
STATEMENT<BR>FOR THE ANNUAL MEETING OF STOCKHOLDERS<BR>TO BE HELD ON MAY 24, 2001</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Cutoff Rule" -->
<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=CENTER>


<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Proxy Statement is furnished to the stockholders of THE CHEESECAKE FACTORY INCORPORATED
(the &#147;Company&#148;) in connection with the solicitation of proxies for use at the Annual
Meeting of Stockholders to be held at The Cheesecake Factory&reg; restaurant located at 605
North Harbor Drive, Redondo Beach, California, on May 24, 2001, beginning at 10:00 a.m.
Pacific Time, and at any adjournment thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proxies
delivered pursuant to this solicitation are revocable at the option of the persons
executing the same, prior to their exercise, by attendance and voting at the meeting or
by written notice delivered to the Corporate Secretary of the Company prior to the
meeting, and are solicited by and on behalf of the Board of Directors of the Company.
Unless previously revoked, all proxies representing shares entitled to vote which are
delivered pursuant to this solicitation will be voted at the meeting by the named
attorneys-in-fact and agents, to the extent authorized, in accordance with the directions
contained therein. If no such directions are given, the shares represented by such
proxies will be voted in favor of the election of the nominee for director and in favor
of the Company&#146;s 2001 Stock Option Plan. The named proxies may vote in their discretion
upon such other matters as may properly come before the meeting. Assuming a quorum is
present in person or by proxy at the meeting, with respect to the election of a director,
the nominee(s) receiving the greatest number of votes cast will be elected to the Board. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
required quorum for the transaction of business at the Annual Meeting is a majority of
the shares of the Company&#146;s common stock entitled to vote at the Annual Meeting. Shares
voted on a matter are treated as being present for purposes of establishing a quorum.
Abstentions and broker nonvotes will be counted for determining a quorum, but will not be
counted for purposes of determining the number of votes cast &#147;FOR&#148; or &#147;AGAINST&#148; any
matter. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company will pay for the cost of preparing, assembling and mailing the Notice of Annual
Meeting and Proxy Statement and the cost of this solicitation. Proxies may be solicited
by personal interview, telephone and telegraph, as well as by use of the mails. Banks,
brokerage houses and other custodians, nominees or fiduciaries will be requested to
forward soliciting material to their principals and to obtain authorization for the
execution of proxies, and will be reimbursed for their reasonable out-of-pocket expenses
incurred in that regard. Employees of the Company participating in the solicitation of
proxies will not receive any additional remuneration. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April 12, 2001, 31,536,294 shares of the Company&#146;s common stock were outstanding, and
there were no outstanding shares of any other class of stock. Each holder of common stock
is entitled to one vote for each share of such stock held. Only stockholders of record at
the close of business on April 12, 2001 will be entitled to vote at the Annual Meeting. A
majority of the outstanding shares, whether present in person or by proxy, is required to
constitute a quorum to transact business at the meeting. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company intends to cause this Proxy Statement to be mailed to stockholders on or about
April 23, 2001. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 4; page: 4" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>


<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROPOSAL 1</FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ELECTION OF
ONE DIRECTOR</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s Bylaws provide for a Board of Directors (the &#147;Board&#148;) consisting of no less
than five and no more than thirteen members, the exact number within this range being
determined by the Board. The Board has currently set the number of directors at five. The
Board is classified into three classes with each director serving a three-year term. Mr.
Gregory is serving a term that will expire at the Annual Meeting of Stockholders to be
held in 2001. Mr. Overton is serving a term that will expire at the Annual Meeting of
Stockholders to be held in 2002, and Messrs. Kransdorf and White are serving terms that
expire at the Annual Meeting of Stockholders to be held in 2003. The Board of Directors
currently has a vacancy for one position. At each Annual Meeting of Stockholders,
directors are elected for a full term of three years to succeed those directors whose
terms are expiring. Company officers are elected annually by the Board of Directors and
serve at the Board&#146;s discretion. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board has nominated Mr. Gregory for reelection to the Board for a three-year term that
will expire at the Annual Meeting of Stockholders to be held in the year 2004. The
nominee has indicated his willingness to serve and, unless otherwise instructed, proxies
will be voted for the election of Mr. Gregory unless instructions are given on the proxy
to withhold authority to vote for him. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nominations
for the election of directors, other than by the Board, must be made by a stockholder
entitled to vote for the election of directors by giving timely written notice to the
Secretary of the Company at the Company&#146;s principal offices. Such notice must be received
not less than 60 calendar days nor more than 90 calendar days prior to the Annual
Meeting; provided that, if in the event that notice or prior public disclosure of the
date of the Annual Meeting is given or made to the stockholders for a meeting date that
is not within 30 days before or after the anniversary of the immediately preceding Annual
Meeting of Stockholders, notice by the stockholder will be timely if received not later
than the close of business on the tenth calendar day following the day on which such
notice was mailed or such public disclosure was made. Such stockholder&#146;s notice must be
in writing and must set forth as to each proposed nominee all information relating to
such person that is required to be disclosed in solicitations of proxies pursuant to
Regulation 14A under the Securities Exchange Act of 1934 including, but not limited to,
such person&#146;s written consent to being named in the Proxy Statement as a nominee and to
serving as a director if elected. Such stockholder notice must also set forth the name
and address, as they appear on the Company&#146;s books, of the nominating stockholder and the
class and number of shares of common stock beneficially owned by such stockholder. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
with respect to the nominee for director and the other directors of the Company is set
forth below. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>THE BOARD OF
DIRECTORS</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>DAVID
OVERTON</B>, age 55, co-founded the Company&#146;s predecessor with his parents. He has served as
the Company&#146;s Chairman of the Board, President and Chief Executive Officer since its
incorporation in February 1992. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THOMAS
L. GREGORY</B>, age 65, became a director of the Company upon the consummation of its initial
public offering in September 1992. Mr. Gregory has over 40 years of experience in the
food service industry. He served as Vice Chairman of the Board of Directors of Sizzler
International, Inc., a restaurant chain, until August 1994. Mr. Gregory served as
President, Chief Executive Officer and a member of the board of directors of Sizzler from
1982 to 1991, and then served as President of its successor company until his retirement
in 1992. From 1974 to 1991, Mr. Gregory served as Vice President for Collins Foods
International, Inc., a food service company, and retained such position concurrently with
his positions at Sizzler. Mr. Gregory is a member of the board of directors of Regis
Corporation, the world&#146;s largest chain of retail haircare operations. He is also a member
of the board of directors of JJ North&#146;s Grand Buffets, a buffet restaurant chain. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>JEROME
I. KRANSDORF</B>, age 62, became a director of the Company in March 1997. Mr. Kransdorf has
over 40 years of investment management experience. From 1959 to 1997, he was employed in
investment and senior management positions at Wertheim &amp; Co. and its successor companies.
Mr. Kransdorf currently serves as Senior Vice President of J. &amp; W. Seligman &amp; Co.
Incorporated, an investment advisory firm. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>2 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 5; page: 5" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WAYNE
H. WHITE</B>, age 63, became a director of the Company upon the consummation of its initial
public offering in September 1992. Since January 1993, Mr. White has been an independent
investment banker and management consultant with a special emphasis on gaming and
restaurant companies. He is currently affiliated with Wells Fargo Van Kasper in San
Francisco. Mr. White has approximately ten years of senior management experience in the
restaurant industry, including Victoria Station (seven years) and Famous Restaurants (two
years). </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Committees of
the Board of Directors</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors has two standing committees, the Audit Committee and the Compensation
Committee. All of the members of the Audit and Compensation Committees are directors
independent of management who are not and have never been officers or employees of the
Company. The members of each committee and the functions performed thereby are described
below. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><I>Audit Committee</I></FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee is responsible for the oversight of the Company&#146;s internal control,
corporate governance and financial reporting processes, as well as the independent audit
of the Company&#146;s consolidated financial statements. The members of the Audit Committee
are Messrs. Gregory, Kransdorf and White. The Audit Committee operates pursuant to a
written charter (attached as Appendix A to this Proxy Statement). See &#147;Report of the
Audit Committee of the Board of Directors.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><I>Compensation Committee</I> </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Compensation Committee is responsible for setting the levels of compensation for the
Company&#146;s Named Executive Officers. The Compensation Committee also approves and
administrates the Company&#146;s incentive compensation programs, including the Company&#146;s
stock option plans and the Performance Incentive Plan. The members of the Compensation
Committee are Messrs. Gregory, Kransdorf and White. See &#147;Report of the Compensation
Committee of the Board of Directors on Executive Compensation.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Meetings,
Attendance and Fees</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
fiscal 2000, the Board of Directors held four meetings and the Audit Committee and
Compensation Committees each held two meetings. No member of the Board attended fewer
than 75% of the aggregate number of meetings of the Board and the committees on which he
served. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
independent director receives an annual fee of $10,000 plus $1,000 for each meeting of
the Board of Directors attended. Non-employee directors who serve on committees also
receive $1,000 for each meeting attended that takes place on a date other than the day of
a regularly scheduled Board of Directors meeting. Under the terms of the 1997
Non-Employee Director Stock Option Plan, Messrs. Gregory, Kransdorf and White each were
granted options to purchase 7,500 and 5,000 shares of the Company&#146;s common stock at
exercise prices of $19.08 and $36.69, respectively, during fiscal 2000. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Indemnification
of Officers and Directors</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
permitted by the Delaware General Corporation Law, the Company&#146;s Certificate of
Incorporation limits the personal liability of a director of the Company for monetary
damages for breach of fiduciary duty of care as a director. Liability is not eliminated
for (a) any breach of the director&#146;s duty of loyalty to the Company or its stockholders,
(b) acts or omissions not in good faith or which involve intentional misconduct or a
knowing violation of law, (c) unlawful payment of dividends or stock purchases or
redemptions pursuant to Section 174 of the Delaware General Corporation Law, or (d) any
transaction from which the director derived an improper personal benefit. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has also entered into indemnification agreements with its directors and Named
Executive Officers. The indemnification agreements provide that the directors and Named
Executive Officers will be indemnified to the full extent permitted by applicable law
against all expenses (including attorneys&#146; fees), judgments, fines and amounts reasonably
paid or incurred by them for settlement in any threatened, pending or completed action,
suit or proceeding, including any derivative action, on account of their services as a
director or officer of the Company or of any subsidiary of the Company or of any other
company or enterprise in which they are serving at the request of the Company. No
indemnification will be provided under the indemnification agreements, however, to any
director or executive officer in certain limited circumstances, including knowingly
fraudulent, deliberately dishonest or willful misconduct. To the extent the provisions of
the indemnification agreements exceed the indemnification permitted by applicable law,
such provisions may be unenforceable or may be limited to the extent they are found by a
court of competent jurisdiction to be contrary to public policy. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>3 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 6; page: 6" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Compliance with
Reporting Requirements of Section 16 of the Exchange Act</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
Section 16(a) of the Exchange Act, the Company&#146;s directors, Named Executive Officers and
any persons holding ten percent or more of the Company&#146;s common stock are required to
report their ownership of common stock and any changes in that ownership to the
Securities and Exchange Commission (the &#147;SEC&#148;) and to furnish the Company with copies of
such reports. Specific due dates for these reports have been established and the Company
is required to report in this Proxy Statement any failure to file on a timely basis by
such persons. Based solely upon a review of copies of reports filed with the SEC during
fiscal 2000, all persons subject to the reporting requirements of Section 16(a) filed all
required reports on a timely basis. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Compensation
Committee Interlocks and Insider Participation</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
directors, other than those identified above, served as members of the Compensation
Committee during the last completed fiscal year. No member of that committee was an
officer or employee of the Company or any of its subsidiaries during the year. None of
the Named Executive Officers of the Company have served on the board of directors or on
the compensation committee of any other entity, any of whose officers served either on
the Board of Directors or on the Compensation Committee of the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BENEFICIAL
OWNERSHIP<BR>OF PRINCIPAL STOCKHOLDERS AND MANAGEMENT</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth certain information regarding the beneficial ownership as of
April 12, 2001 of the Company&#146;s common stock by (a) each person known to the Company
owning beneficially more than five percent of the outstanding shares of the Company&#146;s
common stock, (b) each director of the Company, (c) each Named Executive Officer of the
Company, and (d) all executive officers and directors of the Company as a group. Unless
otherwise indicated, each of the stockholders has sole voting and investment power with
respect to the shares beneficially owned. Unless otherwise indicated, the address of each
of the stockholders named below is the Company&#146;s principal executive office. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Beneficial Ownership </FONT><HR WIDTH=85% SIZE=2 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Name </FONT><HR WIDTH=6% SIZE=2 NOSHADE ALIGN=LEFT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Shares </FONT><HR WIDTH=70% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Percentage </FONT><HR WIDTH=70% SIZE=2 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="66%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">American Express Financial Corporation</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3,747,870</FONT></TD>
        <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11.6</FONT></TD>
        <TD WIDTH="6%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">David Overton (1)(2)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,701,111</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8.4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Wellington Management Company, LLP</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,518,025</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7.8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Fidelity Management &amp; Research Company</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,154,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6.7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Delaware Management Business Trust</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,811,125</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5.6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">SMALLCAP World Fund, Inc.</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,808,250</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5.6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Florida Retirement System</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,700,474</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5.3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Thomas L. Gregory (3)(4)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">46,250</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">*</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Jerome I. Kransdorf (3)(5)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">26,250</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">*</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Wayne H. White (3)(6)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">60,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">*</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Linda J. Candioty (7)(11)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">189,575</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">*</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Gerald W. Deitchle (8)(11)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">180,595</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">*</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Debby R. Zurzolo (9)(11)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30,337</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">*</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">All executive officers and directors as a group (seven persons)(10)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3,234,118</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10.0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD></TR>
</TABLE>

<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Footnote Rule" -->
<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=LEFT>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>*&nbsp;&nbsp; Less than 1% of the issued and
outstanding shares.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>4 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>



<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 7; page: 7" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
188,250 shares which Mr. Overton has the right to acquire upon the exercise of options
granted under the Company&#146;s 1992 Performance Employee Stock Option Plan (the &#147;1992 Stock
Option Plan&#148;). Excludes an additional 98,000 shares subject to stock options granted to
Mr. Overton under the 1992 Stock Option Plan which are not currently exercisable.
Excludes 28,950 shares held by Mr. Overton&#146;s spouse; 61,200 shares that she has the right
to acquire upon the exercise of options granted under the 1992 Stock Option Plan; and an
additional 21,800 shares subject to stock options granted under the Company&#146;s stock
option plans that are not currently exercisable, all of which she has sole voting and
investment power. See &#147;Executive Compensation.&#148; </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Named
Executive Officer and director of the Company. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director
of the Company. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
46,250 shares that Mr. Gregory has the right to acquire upon the exercise of options
granted under the Company&#146;s 1997 Non-Employee Director Stock Option Plan (the &#147;1997
Director Plan&#148;). See &#147;Board of Directors - Meetings, Attendance and Fees.&#148; </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
26,250 shares that Mr. Kransdorf has the right to acquire upon the exercise of options
granted under the Company&#146;s 1997 Director Plan. See &#147;Board of Directors - Meetings,
Attendance and Fees.&#148; </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
13,750 shares that Mr. White has the right to acquire upon the exercise of options
granted under the Company&#146;s 1992 Non-Employee Director Stock Option Plan, and an
additional 46,250 shares that he has the right to acquire upon the exercise of options
granted under the Company&#146;s 1997 Director Plan. See &#147;Board of Directors - Meetings,
Attendance and Fees.&#148; </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
159,375 shares that Ms. Candioty has the right to acquire upon the exercise of options
granted under the Company&#146;s 1992 Stock Option Plan. Does not include an additional 65,000
shares subject to stock options granted under the 1992 Stock Option Plan that are not
currently exercisable. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(8) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
180,595 shares that Mr. Deitchle has the right to acquire upon the exercise of options
granted under the Company&#146;s 1992 Stock Option Plan. Does not include an additional 77,750
shares subject to stock options granted under the 1992 Stock Option Plan that are not
currently exercisable. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
30,000 shares that Ms. Zurzolo has the right to acquire upon the exercise of options
granted under the Company&#146;s 1992 Stock Option Plan. Does not include an additional
134,000 shares subject to stock options granted under the 1992 Stock Option Plan that are
not currently exercisable. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(10) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Includes
690,720 shares that the Company&#146;s executive officers and outside directors have the right
to acquire upon the exercise of options granted under the Company&#146;s stock option plans. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(11) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Named
Executive Officer of the Company. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Addresses for persons
owning more than five percent of the Company&#146;s common stock are as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Reg Cover Table 2 Col 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>American Express Financial Corporation
     <BR>Wellington Management Company, LLP<BR>Fidelity Management &amp; Research Company
     <BR>Delaware Management Business Trust<BR>SMALLCAP World Fund, Inc.<BR>Florida Retirement System </FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>200 AXP Financial Center, Minneapolis, MN 55474
     <BR>75 State Street, Boston, MA 02109<BR>82 Devonshire Street, Boston, MA 02109
     <BR>2005 Market Street, Philadelphia, PA 19103<BR>333 South Hope Street, Los Angeles, CA 90071
     <BR>1801 Hermitage Blvd., Ste. 100, Tallahassee, FL 32317 </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>5 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 8; page: 8" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXECUTIVE
COMPENSATION</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table shows the compensation paid during the last three fiscal years to the
Company&#146;s Named Executive Officers at January 2, 2001. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Summary
Compensation Table</FONT></H1>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="8"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Annual Compensation </FONT><HR WIDTH=95% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Long-Term<BR>Compensation<BR>Awards </FONT><HR WIDTH=85% SIZE=2 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Name and Principal Position </FONT><HR WIDTH=65% SIZE=2 NOSHADE ALIGN=LEFT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Year </FONT><HR WIDTH=65% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Salary($) </FONT><HR WIDTH=55% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Bonus($)(1) </FONT><HR WIDTH=95% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other Annual<BR>Compensation($)(2) </FONT><HR WIDTH=95% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Securities<BR>Underlying<BR>Options(#)(3) </FONT><HR WIDTH=85% SIZE=2 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="30%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">David Overton</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2000</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">420,000</FONT></TD>
        <TD WIDTH="5%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">168,000</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3,305</FONT></TD>
        <TD WIDTH="5%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">95,000</FONT></TD>
        <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chairman of the Board,</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1999</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">400,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">160,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3,170</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">President and</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1998</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">400,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,865</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chief Executive Officer</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Gerald W. Deitchle</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">295,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">103,250</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7,194</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">80,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Executive Vice President and</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1999</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">275,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">96,250</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6,196</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">37,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chief Financial Officer</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1998</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">240,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,802</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">33,750</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Linda J. Candioty</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">230,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">80,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9,057</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">65,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Executive Vice President and</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1999</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">220,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">77,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10,391</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Secretary</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1998</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">210,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10,800</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">33,750</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Debby R. Zurzolo</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">241,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">72,450</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">13,180</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">50,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Senior Vice President and</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1999</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">156,577</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(4)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">51,750</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8,172</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">150,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">General Counsel</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1998</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>

<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Footnote Rule" -->
<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=LEFT>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Bonuses
were awarded pursuant to the Company&#146;s Performance Incentive Plan, as amended, for fiscal
2000 and 1999. No bonuses were awarded under this plan for fiscal 1998. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other
annual compensation includes automobile allowances or the value of the personal use of
Company-provided automobiles, and also includes the Company&#146;s matching contribution
(which is subject to vesting requirements) for the Executive Savings Plan (a nonqualified
deferred compensation plan). </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Stock
options were granted under the Company&#146;s 1992 Performance Employee Stock Option Plan (the
&#147;1992 Stock Option Plan&#148;). </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ms.
Zurzolo joined the Company in April 1999. Annual compensation amounts presented for
fiscal 1999 reflect a partial year of employment. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>6 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 9; page: 9" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Option Grants
in Last Fiscal Year</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table shows all options to acquire shares of the Company&#146;s stock granted to
Named Executive Officers during fiscal 2000. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Number of<BR>Securities<BR>Underlying<BR>Options </FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Percent of<BR>Total Options<BR>Granted to<BR>Employees in </FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exercise Price </FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Expiration </FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Potential Realized<BR>Value at Assumed Annual<BR>Rates of Stock Appreciation<BR>for Option Term($)(3) </FONT><HR WIDTH=95% SIZE=2 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Name </FONT><HR WIDTH=95% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Granted(#)(1) </FONT><HR WIDTH=95% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Fiscal Year </FONT><HR WIDTH=95% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">($/Share)(2) </FONT><HR WIDTH=95% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Date </FONT><HR WIDTH=95% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5% </FONT><HR WIDTH=95% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10% </FONT><HR WIDTH=95% SIZE=2 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="22%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">David Overton</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">45,000</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3.8</FONT></TD>
        <TD WIDTH="5%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">19.08</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1/31/2010</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">540,000</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,368,450</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">45,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3.8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">24.46</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4/14/2010</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">692,100</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,754,100</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0.4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">36.69</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1/02/2011</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">115,350</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">292,350</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Gerald W. Deitchle</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">37,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3.2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">19.08</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1/31/2010</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">450,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,140,375</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">37,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3.2</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">24.46</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4/14/2010</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">576,750</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,461,750</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0.4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">36.69</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1/02/2011</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">115,350</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">292,350</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Linda J. Candioty</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2.5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">19.08</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1/31/2010</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">360,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">912,300</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2.5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">24.46</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4/14/2010</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">461,400</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,169,400</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0.4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">36.69</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1/02/2011</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">115,350</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">292,350</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Debby R. Zurzolo</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2.5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">19.08</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1/31/2010</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">360,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">912,300</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">20,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">36.69</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1/02/2011</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">461,400</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,169,400</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>

<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Footnote Rule" -->
<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=LEFT>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>These
options were granted pursuant to the 1992 Stock Option Plan. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Market
value on the date of grant. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Assumed
annual rates of stock price appreciation are set by the SEC and are not a forecast of
future appreciation. The amounts shown are pre-tax and also assume that the options will
be held throughout their entire term. Actual realized value, if any, will be dependent on
the future price of the Company&#146;s common stock, as well as the continued employment of
the option holder through the vesting period. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Aggregate
Option Exercises in the Last Fiscal Year and Fiscal Year End Option Values</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table shows all stock options exercised by the Named Executive Officers during
fiscal 2000, and the number and value of options they held at fiscal year end. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Shares<BR>Acquired </FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Value<BR>Realized </FONT></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Number of<BR>Securities Underlying
          <BR>Unexercised Options<BR>At Fiscal Year End (#)(1) </FONT><HR WIDTH=95% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Value of Unexercised<BR>In-the-Money Options
          <BR>At Fiscal Year End (#)(2) </FONT><HR WIDTH=90% SIZE=2 NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Name </FONT><HR WIDTH=25% SIZE=2 NOSHADE ALIGN=LEFT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">on Exercise </FONT><HR WIDTH=85% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">($) </FONT><HR WIDTH=75% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exercisable </FONT><HR WIDTH=90% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Unexercisable </FONT><HR WIDTH=95% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exercisable </FONT><HR WIDTH=90% SIZE=2 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Unexercisable </FONT><HR WIDTH=90% SIZE=2 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="19%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">David Overton</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">177,188</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6,000,847</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">134,250</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">152,000</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3,593,741</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,678,488</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Gerald W. Deitchle</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">137,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,533,444</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">136,345</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">122,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3,521,202</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,146,367</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Linda J. Candioty</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">124,125</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100,250</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3,394,397</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,729,643</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Debby R. Zurzolo</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">538,130</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">170,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&#151;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3,338,226</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>

<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Footnote Rule" -->
<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=LEFT>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>These
options were granted pursuant to the 1992 Stock Option Plan. The 152,000 unexercisable
options for Mr. Overton vest 20% to 50% per year with the final portion vesting on April
14, 2003. The unexercisable options for Mr. Deitchle and Ms. Candioty vest 20% to 50% per
year with the final portion vesting on April 14, 2005. The unexercisable options for Ms.
Zurzolo vest 20% over a five-year period with the final portion vesting on January 2,
2006. The options have a term of ten years. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Represents
the difference between the closing price ($36.69) of the Company&#146;s Common stock on
January 2, 2001, the last trading day of the Company&#146;s 2000 fiscal year, and the exercise
price of the options. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>7 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 10; page: 10" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Employment
Agreements</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
March 2001, the Company entered into a three-year employment agreement with David
Overton, the Company&#146;s Chief Executive Officer. The agreement provides Mr. Overton with
an annual base salary equal to $450,000 for the first twelve months commencing from the
date thereof; $475,000 for the next twelve months thereafter; and $500,000 for the next
twelve months thereafter, continuing through the term of the agreement. Mr. Overton is
entitled to participate equitably with other executive officers in any plan of the
Company relating to bonuses, stock options, health and life insurance, compensated
absences, retirement or other employee benefits. The agreement also provides Mr. Overton
with an automobile allowance, reimbursement of his business expenses, and certain
additional health and life insurance benefits. If Mr. Overton voluntarily resigns from
the Company or is terminated with cause (as defined in the agreement), he will be
entitled to receive any unpaid salary earned up through the termination date, plus any
unpaid pro rata portion of any incentive plan award for the current fiscal year when such
awards are paid to all other plan participants. If Mr. Overton&#146;s employment is terminated
without cause prior to a change in control of the Company (as defined in the agreement),
or if he dies or is permanently disabled, he or his estate will be entitled to receive a
lump sum payment equal to three times his then current annual base salary. If, during the
first 18 months after a change in control of the Company, Mr. Overton voluntarily
terminates his employment or is terminated by the Company without cause, he will be
entitled to receive a lump sum payment of $2 million, and the Company will also pay for
certain health and life insurance benefits for Mr. Overton and his dependents for an
additional 36 months. In the event that any payment or benefit paid or payable to Mr.
Overton under the agreement is subject to any excise tax in connection with the &#147;excess
parachute payment&#148; provisions of the Internal Revenue Code, Mr. Overton is entitled to
receive an additional &#147;gross-up&#148; payment from the Company such that the after-tax
proceeds of the payment to Mr. Overton will be sufficient to pay any such excise tax in
full. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
July 1995, the Company entered into an employment agreement with Gerald W. Deitchle, the
Company&#146;s Executive Vice President and Chief Financial Officer. Under this agreement, Mr.
Deitchle is provided with an annual base salary ($315,000 for fiscal 2001) which is
subject to increase from time to time by the Board of Directors. Mr. Deitchle is entitled
to other specified benefits such as participation in the Company&#146;s executive-level
incentive plan, an automobile allowance, reimbursement of business expenses and health
and life insurance benefits. The agreement may be terminated without cause by Mr.
Deitchle with 60 days written notice, and may be terminated by the Company at any time
without prior notice. If the Company terminates Mr. Deitchle&#146;s employment without cause
(as defined in the agreement), he will be entitled to receive an amount equal to two
times his annual base salary then in effect, plus any unpaid pro rata salary earned
through the termination date. During the first 90 days after a change in control of the
Company (as defined in the agreement), Mr. Deitchle may terminate the agreement and
receive a lump sum payment equal to two times his then annual base salary in effect plus
any unpaid pro rata salary earned through the termination date. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
April 1998, the Company entered into an employment agreement with Linda J. Candioty,
Executive Vice President and Secretary of the Company. Under this agreement, Ms. Candioty
is provided with an annual base salary ($245,000 for fiscal 2001) which is subject to
increase from time to time by the Board of Directors. Ms. Candioty is entitled to other
specified benefits such as participation in the Company&#146;s executive-level incentive
plans, an automobile allowance, reimbursement of business expenses and health and life
insurance benefits. The agreement may be terminated without cause by Ms. Candioty with 60
days written notice, and may be terminated by the Company at any time without prior
notice. If the Company terminates Ms. Candioty&#146;s employment without cause (as defined in
the agreement), she will be entitled to receive any unpaid pro rata salary earned through
the date of termination, plus any unpaid pro rata portion of any incentive plan awards
for the current fiscal year when awards are paid to all other plan participants, plus
immediate vesting of all stock options granted to her under the Company&#146;s stock option
plans. During the first 90 days after a change in control of the Company (as defined in
the agreement), Ms. Candioty may terminate the agreement and receive a lump sum payment
equal to two times her then annual base salary in effect plus any unpaid pro rata salary
earned through the termination date. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
April 1999, the Company entered into an employment agreement with Debby R. Zurzolo, the
Company&#146;s Senior Vice President and General Counsel. Under this agreement, Ms. Zurzolo is
provided with an annual base salary ($255,000 for fiscal 2001) which is subject to
increase from time to time by the Board of Directors. Ms. Zurzolo is entitled to other
specified benefits such as an automobile allowance, reimbursement of business expenses
and health and related insurance benefits. The agreement may be terminated without cause
by Ms. Zurzolo with 90 days written notice, and may be terminated by the Company at any
time without prior notice. If the Company terminates Ms. Zurzolo&#146;s employment without
cause (as defined in the agreement), she will be entitled to receive an amount equal to
two times her annual base salary then in effect, plus any unpaid pro rata salary earned
up to the date of termination, plus any unpaid pro rata portion of any incentive plan
awards for the current fiscal year when awards are paid to all other plan participants,
plus an accelerated vesting of stock options granted to her under the Company&#146;s stock
option plans according to a predetermined schedule in the agreement. </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>8 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 11; page: 11" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Performance
Incentive Plan</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors adopted the Company&#146;s Performance Incentive Plan, as amended (the
&#147;Incentive Plan&#148;) during fiscal 1998. All executive officers and other officer and
director-level staff employees are eligible for annual cash bonuses under the Incentive
Plan. Under the terms of the Incentive Plan, the Compensation Committee establishes
targeted financial goals based on income from operations, net income, net income per
share, return on assets, return on equity, growth in earnings or other financial
measures. Participants are assigned a target bonus equal to 10% to 50% of their annual
base salary. Actual bonuses are awarded by the Compensation Committee at the end of each
fiscal year based on the degree of achievement of the targeted financial goals.
Participants are assigned threshold target and maximum cash bonus levels as a percentage
of their respective base salaries, based upon their level of responsibilities with the
Company. No cash bonuses were awarded under the Incentive Plan for fiscal 1998, as the
threshold financial goals were not achieved. Targeted financial goals were achieved for
fiscal 1999 and 2000. Financial objectives have been set for fiscal 2001 that are linked
to the attainment of a predetermined income from operations goal established by the
Compensation Committee and approved by the Board. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Executive
Savings Plan</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
October 1999, the Company adopted the Executive Savings Plan (the &#147;ESP&#148;) in order to
provide a tax-advantaged savings vehicle to help it attract, retain and motivate
executives with the essential qualifications to successfully manage the Companycontinuing
growth. The ESP is a nonqualified deferred compensation plan for highly compensated
Company employees as defined in the ESP and who are otherwise ineligible for
participation in the Company&#146;s qualified defined contribution savings plan under section
401(k) of the Internal Revenue Code. The ESP allows participating executives to defer the
receipt of up to 15% of their salaries and 100% of their eligible bonuses. The Company
currently matches 1% of the first 4% of annual salaries deferred by participating
employees. The Company&#146;s matching contribution vests 25% annually beginning with the end
of the employee&#146;s second year of participation in the ESP. Employee deferrals and the
Company match are deposited into a &#147;rabbi&#148; trust established by the Company, and the
funds are generally invested in individual variable life insurance contracts owned by the
Company which are specifically designed to informally fund executive savings plans of
this nature. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Report of the
Compensation Committee of the Board of Directors on Executive Compensation</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
report of the Compensation Committee of the Board of Directors shall not be deemed
incorporated by reference to any general statement incorporating by reference this Proxy
Statement into any filing under the Securities Act of 1933 or under the Securities
Exchange Act of 1934, except to the extent that the Company specifically incorporates
this information by reference, and shall not otherwise be deemed filed under such Acts. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><I>Overview and Philosophy</I> </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Compensation Committee is composed entirely of independent directors and is responsible
for developing and making recommendations to the Board with respect to the Company&#146;s
executive compensation policies. In addition, the Compensation Committee, pursuant to
authority delegated by the Board, determines the compensation to be paid to the Chief
Executive Officer and each of the other Named Executive Officers of the Company. The
Compensation Committee is also responsible for setting and administering the policies
which govern the Company&#146;s 1992 Performance Employee Stock Option Plan, the Performance
Incentive Plan and the Executive Savings Plan. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>9 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 12; page: 12" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>


<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
are three key elements in the Company&#146;s executive compensation program, all determined by
individual and corporate performance: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Bullet 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Annual
base salaries;  </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Bullet 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Annual
incentive compensation; and  </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Bullet 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long-term
incentive compensation.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s executive compensation program is designed to enable it to attract, retain and
motivate the highest quality of management talent available. Furthermore, the
Compensation Committee believes that the value of the program should reflect, in large
part, the value created for stockholders. The key objectives of the program are as
follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Bullet 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
offer fair and competitive annual base salaries consistent with similarly situated
companies in the foodservice industry; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Bullet 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
reward executives for corporate and individual performance through annual incentive and
deferred compensation programs; and </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Bullet 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
encourage future performance through the use of long-term incentives such as stock
options that align the interests of employees and stockholders. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><I>Annual Base Salaries</I> </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annually,
the Compensation Committee establishes the base salaries to be paid to the Company&#146;s
executive officers during the coming year, subject to the approval of the Board. In
setting base salaries, the Compensation Committee takes into account several factors
including, but not limited to, the executive&#146;s experience, responsibilities, management
abilities and job performance as well as the performance of the Company as a whole and
current market conditions. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><I>Annual Incentive Compensation</I> </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s Performance Incentive Plan, as amended (the &#147;Incentive Plan&#148;) is the Company&#146;s
annual cash bonus program for executive officers and other officer and director-level
staff employees. Under the Incentive Plan, the Compensation Committee establishes
targeted financial goals based on net income, net income per share, return on assets,
return on equity, growth in earnings or other financial measures. Each participant is
assigned a target bonus award equal to 10% to 50% of the participant&#146;s annual base
salary. The actual bonuses shall be awarded by the Compensation Committee at the end of
each fiscal year based on the achievement of the targeted financial goals. Participants
are assigned threshold, target and maximum cash bonus levels as a percentage of their
respective base salaries based upon their levels of responsibilities with the Company.
Financial objectives have been set for fiscal 2001 that are linked to the attainment of a
predetermined income from operations goal established by the Compensation Committee and
approved by the Board. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><I>Long-term Incentive Compensation</I> </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Compensation Committee believes that employee stock ownership is a significant incentive
in building stockholder wealth and aligning the interests of employees and stockholders.
Stock options will only have value if the Company&#146;s stock price increases. Stock options
utilize vesting periods to encourage key employees to continue in the employ of the
Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors adopted the 1992 Performance Employee Stock Option Plan (the &#147;1992
Stock Option Plan&#148;) concurrent with the Company&#146;s initial public offering. The 1992 Stock
Option Plan was approved by stockholders at the 1993 Annual Meeting of Stockholders. The
1992 Stock Option Plan authorizes the Committee to award stock options to Named Executive
Officers and other key employees at exercise prices, vesting schedules and on other terms
established by the Compensation Committee. As of April 1, 2001, there were only 78,167
shares available for future grant under the 1992 Stock Option Plan. The Company maintains
two other stock option plans, the 1997 Non-Employee Director Stock Option Plan and the
2000 Performance Employee Stock Option Plan, a broad based plan which is principally
intended for the Company&#146;s restaurant general managers, executive kitchen managers and
middle management employees. Named Executive Officers do not participate in either of
these plans. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>10 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 13; page: 13" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><I>Compensation of the Chief Executive
Officer</I> </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
January 2000, the Compensation Committee reviewed Mr. Overton&#146;s individual performance
and continuing contributions to the Company&#146;s overall growth and set his annual base
salary at $420,000. During fiscal 2000, the Compensation Committee also granted Mr.
Overton options to purchase a total of 95,000 shares of the Company&#146;s common stock under
the 1992 Stock Option Plan. When Mr. Overton&#146;s employment agreement expired in January
2001, the Compensation Committee approved in March 2001 a new three-year agreement for
Mr. Overton. The principal terms of the new agreement are similar to the prior agreement,
except that Mr. Overton&#146;s base salary was increased to $450,000 for the first twelve
months of the agreement, $475,000 for the next twelve months thereafter and $500,000 for
the next twelve months thereafter until the end of the term. The terms of Mr. Overton&#146;s
agreement are disclosed under the caption &#147;Employment Agreements.&#148; In considering Mr.
Overton&#146;s new agreement, the Committee considered, among other things, Mr. Overton&#146;s
contribution to the success of the Company over the prior three years, his anticipated
contributions to the Company over the following three years, and employment arrangements
for chief executive officers of similar sized companies in the restaurant industry. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Compensation Committee believes that, given Mr. Overton&#146;s performance record, his status
in the restaurant industry and his experience and leadership, his employment agreement
and stock option awards significantly benefit the Company and its stockholders by
securing Mr. Overton&#146;s services for the future and thereby motivating him to continue his
focus on the long-term strategic growth and profitability of the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Reg Cover Table 2 Col 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Thomas L. Gregory<BR>Jerome I. Kransdorf<BR>Wayne H. White </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>11 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 14; page: 14" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Report of the
Audit Committee of the Board of Directors</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee is responsible for the oversight of the Company&#146;s financial reporting,
corporate governance and internal control processes, as well as the independent audit of
the Company&#146;s consolidated financial statements. The Audit Committee operates pursuant to
a written charter (attached as Appendix A to this Proxy Statement). The Audit Committee
is comprised of three directors who meet the independence and experience requirements of
the NASDAQ Stock Market. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following Audit Committee report does not constitute soliciting material and shall not be
deemed filed or incorporated by reference into any other Company filing under the
Securities Act of 1933, as amended or the Securities Exchange Act of 1934, as amended,
except to the extent the Company specifically incorporates this Audit Committee report by
reference therein. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
is responsible for the preparation and integrity of the Company&#146;s consolidated financial
statements. The Audit Committee reviewed the Company&#146;s audited consolidated financial
statements for the fiscal year ended January 2, 2001 and met with both management and the
Company&#146;s independent auditors to discuss those financial statements. Management and the
independent auditors have represented to the Audit Committee that the consolidated
financial statements were prepared in accordance with generally accepted accounting
principles. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee has received from and discussed with the independent auditors their
written disclosure and letter regarding their independence from the Company as required
by Independence Standards Board Standard No. 1 (&#147;Independence Discussions with Audit
Committees&#148;). The Committee also discussed with the independent auditors the matters
required to be discussed by Statement on Auditing Standards No. 61 (&#147;Communication with
Audit Committees&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
upon these reviews and discussions, the Audit Committee has approved the recommendation
of Company management that the audited consolidated financial statements for the fiscal
year ended January 2, 2001 be included in the Company&#146;s Annual Report on Form 10-K filed
with the Securities and Exchange Commission. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Reg Cover Table 2 Col 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Thomas L. Gregory<BR>Jerome I. Kransdorf
     <BR>Wayne H. White </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>12 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 15; page: 15" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Price
Performance Graph</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth below is a graph comparing the total return on an indexed basis of a $100
investment in the Company&#146;s common stock, the S&amp;P Midcap Restaurant Index, the Nasdaq
Composite&reg; (US) Index and the Nation&#146;s Restaurant News Stock Index. The measurement
points utilized in the graph consist of the last trading day in each calendar year, which
closely approximates the last day of the respective fiscal year of the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Comparison
of Five-Year Cumulative Total Return on $100 Investment<BR>Among The
Cheesecake Factory Incorporated, S&amp;P Midcap Restaurant Index,
<BR>Nasdaq Composite&reg; (US) Index and the Nation&#146;s Restaurant News Stock Index </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><IMG SRC="g70455_graph.gif"></FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12/29/95 </FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12/31/96 </FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12/31/97 </FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12/31/98 </FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12/31/99 </FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12/29/00 </FONT><HR WIDTH=75% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="38%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">The Cheesecake Factory Incorporated</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$100.00</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;84.40</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$141.99</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$207.02</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$244.29</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$401.88</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">S&amp;P Midcap Restaurant Index</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$100.00</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;95.56</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$104.47</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$127.83</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$107.50</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;93.09</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Nasdaq Composite&reg; (US) Index</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$100.00</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$123.04</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$150.70</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$212.51</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$394.93</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$237.62</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Nation&#146;s Restaurant News Stock Index</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$100.00</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$102.80</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$102.89</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$138.11</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$131.78</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$128.16</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>13 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 16; page: 16" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROPOSAL 2</FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>APPROVAL OF
THE 2001 STOCK OPTION PLAN</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors has reviewed the status of the Company&#146;s existing 1992 Performance
Employee Stock Option Plan (the 1992 Stock Option Plan), which expires on September 17,
2004 and which has only 78,167 shares remaining for future grant to employees of the
Company. Based on this review, the Board determined that the 1992 Stock Option Plan was
insufficient to meet the Company&#146;s present and future needs to recruit and retain highly
qualified employees and other personnel to successfully manage its growth into a larger
business enterprise. On April 10, 2001, the Board adopted the Company&#146;s 2001 Stock Option
Plan (the &#147;2001 Option Plan&#148;), subject to stockholder approval at the Annual Meeting. The
2001 Option Plan provides for the granting of stock options, both incentive and
nonqualified, to officers, employees, consultants and other persons providing key
services to the Company. The 2001 Option Plan does not permit the repricing of options or
the granting of discounted options unless approved by the Company&#146;s stockholders. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board believes that stock options are of critical importance in the building of long-term
enterprise value for all stockholders and effectively align the interests of Company
employees and stockholders. Stock options will only have value if the Company&#146;s stock
price increases. In order to successfully execute its growth plan and, at the same time,
maintain its reputation for operational excellence in the upscale, casual dining segment
of the restaurant industry, the Company must have the ability to recruit, motivate and
retain the highest quality executive, corporate support and restaurant management talent
available. While there are many important resources required for growth, the Company and
its Board of Directors believe the most critical resource is the availability of highly
qualified and experienced management personnel at all levels of its organization. The
Board believes the 2001 Option Plan provides an important competitive advantage to the
Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The
Board recommends that stockholders vote FOR the 2001 Option Plan.</B> </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Summary of the
2001 Option Plan</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following
is a brief description of the 2001 Option Plan. The full text of the 2001 Option Plan is
attached as Appendix B to this Proxy Statement. The following description is qualified in
its entirety by reference to this Appendix. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Purpose</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
primary purpose of the 2001 Option Plan is to align the interests of the Company&#146;s
employees and other personnel who provide key services to the Company with that of its
stockholders by providing an additional incentive, based on the value of the Company&#146;s
common stock, for superior levels of performance. The 2001 Option Plan is also intended
to enable the Company to compete effectively for, and retain the services of, employees
and other persons that provide important services to the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
options issued under the 2001 Option Plan shall, at the discretion of the Compensation
Committee of the Board of Directors, be either &#147;incentive stock options&#148; as that term is
used in Section 422 of the Internal Revenue Code, as amended (the &#147;Code&#148;) or any
successor thereto, or options which do not qualify as incentive stock options
(&#147;nonqualified stock options&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Administration</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors has delegated the administration of the 2001 Option Plan to its
Compensation Committee (the &#147;Committee&#148;). The Committee, composed solely of independent
directors, shall have full power and authority in its discretion to take any and all
actions required or permitted to be taken under the 2001 Option Plan, including the
authority to select stock option grantees, determine the number and type of options
granted, determine vesting requirements and establish the terms, conditions, restrictions
and deferral arrangements and other provisions of stock options. The Committee has the
authority and discretion to establish performance objectives for option holders. The
Committee has the authority to determine the extent to which options will be structured
to conform to the requirements applicable to performance-based compensation as described
by Section 162(m) of the Code, and to take such action and adopt such procedures as the
Committee determines necessary to conform to such requirements. Except in the case of an
option intended to qualify under Section 162(m), if the Committee determines that a
change in the business or operations of the Company or other events render the
performance objectives unsuitable, the Committee may modify such performance objectives,
in whole or part, as the Committee deems appropriate. However, the Committee may not,
without prior approval of the Company&#146;s stockholders, increase the maximum number of
shares of common stock which may be issued under the 2001 Option Plan; grant stock
options with an exercise price below the fair market value of the Company&#146;s common stock
on the date of grant; or reprice any stock options previously granted. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>14 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 17; page: 17" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Shares Reserved</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
2001 Option Plan currently provides for 900,000 shares of common stock to be reserved for
issuance upon exercise of options granted. Shares of common stock will be made available
from the authorized but unissued shares of the Company or from repurchased shares held in
the Company&#146;s treasury. If any option granted under the 2001 Option Plan shall for any
reason expire, terminate, be canceled or otherwise be annulled without having been
exercised in full, the shares not purchased under such option shall again become
available for the 2001 Option Plan. The Committee does not intend to grant any new stock
options under the 1992 Stock Option Plan. Accordingly, shares reserved for the 2001
Option Plan will be increased by the 78,167 remaining shares available under the 1992
Stock Option Plan and by any shares previously granted under that plan which are
subsequently forfeited, expire or cancelled without delivery of shares of stock or which
result in the forfeiture of shares of stock back to the Company. If the exercise price of
any stock option granted under the 2001 Option Plan or the 1992 Stock Option Plan is
satisfied by tendering shares of common stock to the Company, only the number of shares
issued net of the shares tendered will be considered delivered for purposes of the
maximum shares available under the 2001 Option Plan. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Eligibility</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eligible
individuals under the 2001 Option Plan will include Named Executive Officers, other key
employees, independent consultants and other persons who provide key services to the
Company, as determined by the Committee. The Company may issue incentive stock options
provided that the aggregate fair market value (determined at the time the incentive stock
option is granted) of the common stock with respect to which incentive stock options are
exercisable for the first time by the optionee during any calendar year (under all
incentive stock option plans of the Company) shall not exceed $100,000. Should it be
determined that any incentive stock option granted pursuant to the 2001 Option Plan
exceeds such maximum, such incentive stock option shall be considered to be a
nonqualified stock option and not to qualify for treatment as an incentive stock option
under Section 422 of the Code to the extent, but only to the extent, of such excess. Only
Company employees are eligible for grants of incentive stock options. The Committee may
not grant more than 300,000 options to any one individual during any consecutive
twelve-month period. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Option Price</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
exercise price of each nonqualified stock option shall be determined by the Committee and
shall not be less than 100% of the fair market value of the common stock subject to the
option on the date the option is granted. The exercise price of incentive stock options
may not be less than 100%; provided, however, that the purchase price of the common stock
subject to the incentive stock option may not be less than 110% of such fair market value
(without regard to any restriction other than a restriction which, by its terms, will
never lapse) where the optionee owns (or is deemed to own pursuant to Section 424(d) of
the Code) common stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company or any of its subsidiaries. </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>15 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 18; page: 18" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>



<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Option Exercise</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An
option may be exercised by written notice to the Company upon the terms and conditions of
the option agreement. The exercise price of any stock option may be paid by cash, Company
common stock, or by way of a &#147;cashless exercise.&#148; The Committee may grant &#147;reload&#148;
options under the conditions set forth in the 2001 Option Plan. The Committee may permit
an option holder to defer receipt of the payment of the delivery of shares of common
stock that would otherwise be due to such holder upon exercise of an option. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Adjustments
Upon Changes in Common Stock</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the
outstanding shares of the Company&#146;s common stock are increased, decreased, or changed
into, or exchanged for a different number or kind of shares or securities of the Company,
without receipt of consideration by the Company, through reorganization, merger,
recapitalization, reclassification, stock split, stock dividend, stock consolidation or
otherwise, an appropriate and proportionate adjustment shall be made in the number and
kind of shares available under the 2001 Option Plan as to which options may be granted,
and the Committee may make corresponding adjustments changing the number or kind of
shares and the exercise price per share allocated to unexercised options granted prior to
any such change. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Transferability</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options
granted under the 2001 Option Plan are not transferable, except by will or by the laws of
descent and distribution and may be exercisable during the holder&#146;s lifetime only by the
holder provided, however, that nonqualified options may be transferred to such family
members, trusts, charitable institutions, or affiliated entities of the holder as the
Committee may approve. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Expiration and
Termination</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
expiration date with respect to an option will be determined by the Committee, provided
that the expiration date with respect to any option may not be later than the earliest to
occur of: (i) the ten-year anniversary of the grant date, (ii) the one-year anniversary
of the date of death or disability, (iii) the three-year anniversary of the date of
retirement, or (iv) the 90-day anniversary of termination not resulting from death,
disability, retirement or &#147;cause&#148;. If termination of employment results from &#147;cause&#148; (as
defined in the 2001 Option Plan), neither the option holder nor such holder&#146;s estate will
be entitled to exercise options on or after the date of termination. The 2001 Option Plan
provides that upon a &#147;change in control&#148; (as defined in the 2001 Option Plan), all
options granted at such time and are not then exercisable shall become immediately
exercisable provided, however, the option agreement does not provide otherwise, or the
options are not otherwise assumed in the case of certain acquisitions or sales of assets. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Termination
and Amendment of the 2001 Option Plan</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
2001 Option Plan shall remain in effect as long as any options under it are outstanding,
subject to certain conditions. The 2001 Option Plan may be amended, suspended or
terminated by the Committee at any time, in whole or in part. However, the Committee may
not, without prior approval of a majority of the Company&#146;s stockholders, increase the
maximum number of shares of common stock which may be issued under the 2001 Option Plan;
grant stock options with an exercise price below the fair market value of the Company&#146;s
common stock on the date of grant; or reprice any stock options previously granted. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Federal Income
Tax Consequences</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following discussion is only a summary of the principal federal income tax consequences
of the options and rights to be granted under the 2001 Option Plan, and is based on
existing federal law (including administration, regulations and rulings) which is subject
to change, in some cases retroactively. This discussion is also qualified by the
particular circumstances of individual optionees, which may substantially alter or modify
the federal income tax consequences discussed herein. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>16 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 19; page: 19" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally,
under present law, when an option qualifies as an incentive stock option under Section
422 of the Code: (a) an optionee will not realize taxable income either upon the grant or
by the exercise of the option, (b) any gain or loss upon a qualifying disposition of the
shares acquired by the exercise of the option will be treated as capital gain or loss,
and (c) no deduction will be allowed to the Company for federal income tax purposes in
connection with the grant or exercise of an incentive stock option or a qualifying
disposition of the shares. A disposition by an optionee of common stock acquired upon
exercise of an incentive stock option will constitute a qualifying disposition if it
occurs more than two years after the grant of the option, and one year after the transfer
of the shares of the optionee. If such common stock is disposed of by the optionee before
the expiration of those time limits, the transfer would be a &#147;disqualifying disposition&#148;
and the optionee, in general, will recognize ordinary income equal to the lesser of (a)
the aggregate fair market value of the shares as of the date of exercise less the option
price, or (b) the amount realized on the disqualifying disposition less the option price.
Ordinary income from a disqualifying disposition will constitute ordinary compensation
income. Any gain in addition to the amount reportable as ordinary income on a
&#147;disqualifying disposition&#148; generally will be capital gain. Upon the exercise of an
incentive stock option, the difference between the fair market value of common stock on
the date of exercise and the option price generally is treated as an adjustment to
taxable income in that taxable year for alternative minimum tax purposes, as are a number
of other items specified by the Code. Such adjustments (along with tax preference items)
form the basis for the alternative minimum tax that may apply depending on the amount of
the computed &#147;regular tax&#148; of the employee for that year. Under certain circumstances,
the amount of alternative minimum tax is allowed as a carry forward credit against
regular tax liability in subsequent years. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the
case of nonqualified stock options, no income generally is recognized by the optionee at
the time of the grant of the option. Under present law, the optionee generally will
recognize ordinary income at the time the nonqualified stock option is exercised equal to
the aggregate fair market value of the shares acquired less the option price. Ordinary
income from a nonqualified stock option will constitute compensation income. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to special rules applicable when an optionee uses common stock of the Company to exercise
an option, shares acquired upon exercise of a nonqualified stock option will have a tax
basis equal to their fair market value on the exercise date or other relevant date on
which ordinary income is recognized and the holding period for the shares generally will
begin on the date of exercise or such other relevant date. Upon subsequent disposition of
the shares, the optionee generally will recognize capital gain or loss. Provided the
shares are held by the optionee for more than one year prior to disposition, such gain or
loss will be long-term capital gain or loss. The Company will generally be entitled to a
deduction equal to the ordinary income (i.e., compensation) portion of the gain
recognized by the optionee in the case of a &#147;disqualifying disposition&#148; of an incentive
stock option or in connection with the exercise of a nonqualified stock option. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal
income tax laws limit to $1,000,000 the annual amount publicly held corporations may
deduct for compensation paid to certain executive officers if such compensation does not
qualify as &#147;performance-based compensation&#148; or compensation paid on a &#147;commission basis&#148;
as those terms are defined under the federal income tax laws. The $1,000,000 limitation
is determined for each executive officer to which the deduction limitation applies. The
2001 Option Plan contains provisions as required under the current applicable federal
income tax regulations to allow compensation attributable to options granted under the
plan to qualify as performance-based compensation for purposes of the $1,000,000
deduction limitation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, as
a result of certain changes in control of the Company, certain employee options become
immediately exercisable, the additional economic value attributable to the acceleration
may be deemed an &#147;excess parachute payment&#148; to the extent the additional value (when
combined with the value of other change of control payments) equals or exceeds 300% of
the employee&#146;s average annual taxable compensation over the five calendar years
preceding the change of control. Any such excess over the employee&#146;s average annual
taxable compensation will be subject to a 20% non-deductible excise tax in addition to
any income tax payable. The Company will not be entitled to a deduction for that portion
of any excess parachute payment that is subject to the excise tax. To the extent that an
excess parachute payment is not deductible and is paid to an executive officer whose
compensation is subject to the $1,000,000 deduction limitation rules, the $1,000,000
deduction limitation is reduced by such amount, but not below zero. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>17 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 20; page: 20" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INDEPENDENT
AUDITORS</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors, upon the recommendation of the Audit Committee, appointed
PricewaterhouseCoopers LLC (&#147;PWC&#148;) as the Company&#146;s independent auditors to conduct the
audit of the Company&#146;s books and records for the fiscal year ended January 2, 2001. PWC
has also served as the Company&#146;s independent auditors since the Company&#146;s inception in
1992. Representatives of PWC are expected to be present at the Annual Meeting to respond
to questions and to make a statement should they so desire. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Audit Fees</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
aggregate fees billed by PWC for professional services rendered for the audit of the
Company&#146;s consolidated financial statements for the fiscal year ended January 2, 2001 and
for the reviews of the consolidated financial statements included in the Company&#146;s
Quarterly Reports on Form 10-Q for that fiscal year were $127,550. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Financial
Information Systems Design and Implementation Fees</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
were no fees billed by PWC for professional services rendered for information technology
services relating to financial information systems design and implementation for the
fiscal year ended January 2, 2001. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>All Other Fees</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
aggregate fees billed by PWC for services rendered to the Company, other than the
services described above under &#147;Audit Fees&#148; and &#147;Financial Information Systems Design and
Implementation Fees,&#148; for the fiscal year ended January 2, 2001 were $48,132. These fees
were for corporate tax consultation services. The Audit Committee has considered whether
the provision of non-audit services is compatible with maintaining the principal
accountant&#146;s independence. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OTHER MATTERS</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors knows of no business other than that described herein that will be
presented for consideration at the Annual Meeting of Stockholders. If, however, other
business shall properly come before the meeting, the persons named in the enclosed form
of proxy intend to vote the shares represented by said proxies on such matters in
accordance with their judgment in the best interests of the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>STOCKHOLDER
PROPOSALS FOR THE 2002 ANNUAL MEETING</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
stockholder proposal intended to be presented at the Company&#146;s 2002 Annual Meeting of
Stockholders must be received by the Company for inclusion in the Proxy Statement and
form of proxy for that meeting no later than December 24, 2001. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AVAILABILITY
OF FORM 10-K</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The
Company will provide to any stockholder without charge, upon the written request of that
stockholder, a copy of the Company&#146;s Annual Report on Form 10-K for the fiscal year ended
January 2, 2001 with the Securities and Exchange Commission. Such requests should be
addressed to: Jane Vallaire, Senior Manager, Investor Relations at The Cheesecake Factory
Incorporated, 26950 Agoura Road, Calabasas Hills, CA 91301.</B> </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Reg Cover Table 2 Col 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By Order of the Board of Directors,
          <BR><BR>/s/ Linda J. Candioty<BR><BR>Linda J. Candioty<BR>Secretary</FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>18 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 21; page: 21" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>[This page intentional
left blank.] </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 22; page: 22" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>APPENDIX A </FONT></H2>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THE
CHEESECAKE FACTORY INCORPORATED<BR>AUDIT COMMITTEE CHARTER </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Purpose</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
primary purpose of the Audit Committee (the &#147;Committee&#148;) is to assist the
Company&#146;s Board of Directors (the &#147;Board&#148;) in fulfilling its oversight
responsibilities with respect to (1) management&#146;s conduct of the external financial
reporting and disclosure process, including management&#146;s preparation and submittal
of external financial reports and related information to governmental or regulatory
authorities, the public or other users thereof; (2) the Company&#146;s internal legal
compliance and ethics programs, and (3) the quality and adequacy of the Company&#146;s
internal accounting and administrative controls. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
discharging its oversight role, the Committee is empowered to investigate any financial,
legal or internal control-related matter brought to its attention or as directed by the
Board with full, direct and unrestricted access to all books, records, facilities and
personnel of the Company. The Committee is also empowered to retain outside counsel,
auditors or other experts for this purpose. The Committee and the Board are in place to
represent the Company&#146;s stockholders. Accordingly, the Company&#146;s outside
auditors are ultimately accountable to the Board. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Membership</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Committee shall be comprised of not less than three independent members of the Board, and
the Committee&#146;s composition will meet the independence and experience requirements
of the Audit Committee Policy of the NASD. Accordingly, all Committee members will be
Board members whom: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Have
no relationship with the Company that may interfere with their independence from
management and the Company. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Are
financially literate or who become financially literate within a reasonable period of
time after appointment to the Committee. All Committee members must be able to read and
understand fundamental financial statements (i.e., balance sheets, income statements and
cash flow statements). </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
least one member of the Committee must have accounting or related financial management
expertise. This expertise will be evidenced by current or past employment in the
financial or accounting fields; professional certification in accounting; or other
comparable experience or background, including a current or past position as a chief
executive or financial officer or other senior corporate officer with financial oversight
responsibilities. The Board shall appoint the Committee&#146;s members and chairperson.
The Committee shall meet at least twice annually and as many additional times as the
Committee deems necessary. As necessary or desirable, the Committee may request that
members of management or the outside auditors be present at Committee meetings. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Key
Responsibilities</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Committee&#146;s primary purpose is one of oversight. The Committee recognizes that
management is responsible for preparing the Company&#146;s annual and quarterly financial
statements and that the outside auditors are responsible for auditing and reviewing those
financial statements. Additionally, the Committee recognizes that management, as well as
the outside auditors, devote more time and have considerably greater knowledge of and
access to detailed information with respect to the Company than do Committee members.
Consequently, in carrying out its oversight responsibilities, the Committee is not
providing any expert or special assurance as to the Company&#146;s financial statements
or any professional certification as to the quality of the outside auditor&#146;s work. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following
are the three principal categories of Committee responsibilities: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Financial
Reporting</I>: The Committee is responsible for overseeing the Company&#146;s external
financial reporting and disclosure process, including the making of reasonable inquiries
to ensure that all external financial reports and related disclosures fairly present the
Companyfinancial condition and results of operations in all material respects (see
Exhibit I). </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>A-1 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 23; page: 23" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Corporate
Governance</I>: The Committee shall make reasonable inquiries of management to ensure
that the Company is in reasonable compliance with all applicable laws and regulations; is
conducting its business ethically; and is maintaining reasonable controls with the
objective of preventing employee conflicts of interest and fraud (see Exhibit II). </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Internal
Control and Other Matters</I>: The Committee is responsible for overseeing the
effectiveness of the Company&#146;s internal accounting and administrative controls. It
will fulfill this responsibility without unnecessary or inappropriate intervention with
the prerogatives of management (see Exhibit III). </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit I</FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Financial
Reporting Responsibilities</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
accomplish its financial reporting oversight responsibilities, the Committee will: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Oversee
the annual audit of the Company&#146;s externally-reported financial statements,
including the following: </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a.  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Select
and (if appropriate in the judgment of the Committee and the Board) replace the Company&#146;s
outside auditor. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b.  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Approve
the outside auditor&#146;s engagement letter and fees. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c.  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ensure
that the outside auditor remains independent from the Company. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>d.  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Monitor
the scope and results of the annual audit and quarterly reviews. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>e.  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Evaluate
the performance of the outside auditor. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>f.  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Review
all nonaudit services performed for the Company by the outside auditor. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Review
with management and the outside auditors the audited financial statements to be included
in the Company&#146;s Form 10-K (or the annual report to stockholders if distributed
prior to the filing of Form&nbsp;10-K) and consider the matters required to be discussed by
Statement of Auditing Standards (SAS) No. 61. This review will occur prior to the filing
of Form 10-K with the SEC (or the distribution of the Company&#146;s annual report to
stockholders, if distributed prior to the filing of Form 10-K). </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As
a whole, or through the Committee chairperson, review with the outside auditors the
Company&#146;s quarterly financial results to be included in the Company&#146;s Form 10-Q
(or the quarterly press release to stockholders if distributed prior to the filing of
Form 10-Q) and consider the matters required to be discussed by SAS No. 61. This review
will occur prior to the filing of Form 10-Q with the SEC (or the release of quarterly
results to stockholders, if released prior to the filing of Form 10-Q). </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Review
proposed changes in significant accounting policies with management and the outside
auditors. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Review
the substance of any significant changes in accruals, reserves or estimates made by
management in the financial statements that could have a material impact on the Company&#146;s
results of operations or financial position. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Review
the Company&#146;s compliance with applicable federal and state securities laws as they
relate to financial reporting. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Arrange
to receive periodic reports from management and the outside auditors to assess the impact
of significant accounting, financial reporting or regulatory changes proposed by the
Financial Accounting Standards Board, the American Institute of CPAs, the SEC or the IRS
that may affect the Company. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Confirm
with the outside auditors that their ultimate accountability is to the Board. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2> A-2</FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 24; page: 24" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>



<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit II</FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Corporate Governance</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
accomplish its corporate governance oversight responsibilities, the Committee will: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Review
internal corporate policies with respect to compliance with laws and regulations, ethics,
conflicts of interest and the investigation of misconduct or fraud. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Review
significant cases of employee conflicts of interest, code of ethics violations,
misconduct or fraud. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Review
internal policies and procedures for the processing and approval of business expense
reimbursements for the Company&#146;s executive officers, as well as the personal use of
any Company assets by such officers. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Review
and approve the scope of internal audit activities conducted by management. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Review
current or pending litigation or regulatory proceedings of a significant nature to which
the Company is or may become a party. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Meet
periodically with the Company&#146;s outside legal counsel to discuss any legal or
regulatory matters that could have a significant impact on the Company. </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit III</FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Internal
Control and Other Matters</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
accomplish its internal control oversight responsibilities, the Committee will: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Determine
the extent to which the scope of the outside auditor&#146;s work can be relied upon to
detect fraud or weaknesses in the Company&#146;s internal accounting or administrative
controls, and review management&#146;s plan to monitor compliance with these internal
controls on an ongoing basis. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Discuss
with the outside auditors their review of the Company&#146;s electronic data processing
systems to determine the adequacy of procedures and controls to prevent security breaches
and computer-related fraud and misuse, both within and outside the Company. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Meet
privately with the outside auditors to discuss the overall quality of the Company&#146;s
financial accounting and internal controls as perceived by the outside auditors, and to
determine if any restrictions have been placed by management upon the scope of the
outside auditor&#146;s work or if there are any other matters that should be discussed
privately with the Committee. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Direct
special investigations into any significant matter brought to the attention of the
Committee within the scope of its responsibilities. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Review
and reassess the Committee&#146;s charter annually and propose any changes to the Board. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Report
the Committee&#146;s activity to the Board on a regular basis. </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>A-3 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 25; page: 25" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>[This page
intentionally left blank.] </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 26; page: 26" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>


<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=RIGHT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>APPENDIX B </FONT></H2>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THE CHEESECAKE
FACTORY INCORPORATED<BR>2001 STOCK OPTION PLAN </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 1<BR>General </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;
<I>Purpose</I>. The 2001 Stock Option Plan (the &#147;Plan&#148;) has been established by The
Cheesecake Factory Incorporated (the &#147;Company&#148;) to (i) attract and retain the
services of persons eligible to participate in the Plan; (ii) motivate Participants, by
means of appropriate equity-based incentives, to achieve long-range performance goals;
(iii) provide equity-based incentive compensation opportunities that are competitive with
those of other similar companies; and (iv) further align Participants&#146;interests with
those of the Company&#146;s other stockholders through compensation that is based on the
Company&#146;s common stock and thereby promote the long-term financial interest of the
Company and the Related Companies, including the growth in value of the Company&#146;s
equity and enhancement of long-term stockholder return. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;
<I>Participation</I>. Subject to the terms and conditions of the Plan, the Committee shall
determine and designate, from time to time, from among the Eligible Individuals, those
persons who will be granted one or more Options under the Plan, and thereby become &#147;Participants&#147;in
the Plan. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3&nbsp;&nbsp;&nbsp;
<I>Operation, Administration, and Definitions</I>. The operation and administration of the Plan,
including the Options made under the Plan, shall be subject to the provisions of Section
3 (relating to operation and administration). Capitalized terms in the Plan shall be
defined as set forth in the Plan (including the definition provisions of Section 8 of the
Plan). </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 2<BR>Stock Options </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;
<I>Definitions</I>. The grant of an &#147;Option&#148; entitles the Participant to purchase
shares of Stock at an Exercise Price established by the Committee. Options granted under
the Plan may be either Incentive Stock Options or Nonqualified Stock Options, as
determined in the discretion of the Committee. An &#147;Incentive Stock Option&#148; is an
Option that is intended to satisfy the requirements applicable to an &#147;incentive
stock option&#148; described in Section 422(b) of the Code. A &#147;Nonqualified Stock
Option&#148; is an Option that is not intended to be an &#147;incentive stock option&#148; as
that term is described in Section 422(b) of the Code. Only Eligible Individuals who are
employees of the Company or a Related Company may be granted Incentive Stock Options. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;
<I>Exercise Price</I>. The Exercise Price of each Option granted under this Section 2 shall be
established by the Committee at the time the Option is granted; except that the Exercise
Price shall not be less than 100% of the Fair Market Value of a share of Stock as of the
Pricing Date, and in the event the Participant is a Ten Percent Shareholder, the Exercise
Price for an Incentive Stock Option shall be at least 110% of Fair Market Value on the
Pricing Date. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3&nbsp;&nbsp;&nbsp;
<I>Exercise</I>. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;
An Option shall be exercisable in accordance with such terms and conditions and during
such periods as may be established by the Committee, except that no Option may be
exercised after the Expiration Date applicable to that Option.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;
To the extent that the aggregate Fair Market Value of Stock with respect to which
Incentive Stock Options are exercisable for the first time by the Participant during any
calendar year (under all plans of the Company and all Related Companies) exceeds
$100,000, such options shall be treated as Nonqualified Stock Options, to the extent
required by Section 422 of the Code.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>B-1 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 27; page: 27" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>


<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4&nbsp;&nbsp;&nbsp;
<I>Expiration Date</I>. The &#147;Expiration Date&#148; with respect to an Option means the date
established as the Expiration Date by the Committee at the time of the grant; provided,
however, that the Expiration Date with respect to any Option shall not be later than the
earliest to occur of: </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;
the ten-year anniversary of the date on which the Option is granted;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;
if the Participant&#146;s Date of Termination occurs by reason of death or Disability,
the one-year anniversary of such Date of Termination;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;
if the Participant&#146;s Date of Termination occurs by reason of Retirement, the
third-year anniversary of such Date of Termination (other than in the case of an
Incentive Stock Option); or</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;
if the Participant&#146;s Date of Termination occurs for reasons other than Retirement,
death or Disability, or Cause, the 90-day anniversary of such Date of Termination.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the other provisions of this section 2.4, if the Participant&#146;s Date of Termination
occurs by reason of Cause neither the Participant, the Participant&#146;s estate nor such
other person who may then hold such Participant&#146;s Option shall be entitled to
exercise such Option on or after such Date of Termination. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5&nbsp;&nbsp;&nbsp;
<I>Payment of Option Exercise Price</I>. The payment of the Exercise Price of an Option granted
under this Section 2 shall be subject to the following: </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;
Subject to the following provisions of this Section 2.5, the full Exercise Price for
shares of Stock purchased upon the exercise of any Option shall be paid at the time of
such exercise (except that, in the case of an exercise arrangement approved by the
Committee and described in Section 2.5(c), payment may be made as soon as practicable
after the exercise).</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;
The Exercise Price of an Option shall be payable by (i) cash payment, or (ii) delivery of
shares of Stock (by either actual delivery of shares or by attestation, with such shares
valued at Fair Market Value as of the day of exercise) provided, however, that such
shares of Stock have been held by the Participant for at least six months before
delivery, or in any combination of the foregoing, as the Committee shall determine.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;
The Committee may permit a Participant to elect to pay the Exercise Price upon the
exercise of an Option by authorizing a third party to sell shares of Stock (or a
sufficient portion of the shares) acquired upon exercise of the Option and remit to the
Company a sufficient portion of the sale proceeds to pay the entire Exercise Price and
any tax withholding resulting from such exercise.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Start" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6&nbsp;&nbsp;&nbsp;
<I>Distribution of Shares</I>. Distribution following exercise of an Option, and shares of Stock
distributed pursuant to such exercise, shall be subject to such conditions, restrictions
and contingencies as the Committee may establish. The Committee, in its discretion, may
impose such conditions, restrictions and contingencies with respect to shares of Stock
acquired pursuant to the exercise of an Option as the Committee shall determine. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7&nbsp;&nbsp;&nbsp;
<I>Grant of Reload Options</I>. The Committee may, in connection with the grant of an Option,
provide in the Option Agreement that a Participant who (i) is a Participant when he or
she exercises an Option (the &#147;Exercised Option&#148;), (ii) has not received a
Reload Option (as defined below) within the six (6) months prior to such exercise, and
(iii) satisfies the Exercise Price or any required tax withholding applicable thereto
with shares of Stock which have been held by the Participant for at least six (6) months,
shall automatically be granted an additional Option (&#147;Reload Option&#148;) in an
amount equal to the sum (&#147;Reload Number&#148;) of the number or shares of Stock
tendered to exercise the Exercised Option plus, if so provided by the Committee, the
number of shares of Stock, if any, retained by the Company in connection with the
exercise of the Exercised Option to satisfy any federal, state or local tax withholding
requirements; provided that no Reload Option shall be granted in connection with the
exercise of an Option that has been transferred by the initial Participant thereof. All
Reload Options shall be Nonqualified Stock Options. </FONT></FONT> </P>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>B-2 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 28; page: 28" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8&nbsp;&nbsp;&nbsp;
<I>Conditions on Reload Options</I>. Reload Options shall be subject to the following terms and
conditions: </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;
The grant date for each Reload Option shall be the date of exercise of the Exercised
Option to which it relates.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;
Unless otherwise determined by the Committee, the Reload Option shall be fully vested and
may be exercised at any time during the remaining term of the Exercised Option (subject
to earlier termination thereof as provided in the Plan or in the applicable Award
Agreement).</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;
Unless otherwise determined by the Committee, the terms of the Reload Option shall be the
same as the terms of the Exercised Option to which it relates, except that the Exercise
Price for the Reload Option shall, in every case, be 100% of the Fair Market Value of a
share of Stock on the Pricing Date of the Reload Option.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;
Each Option Agreement shall state whether the Committee has authorized Reload Options
with respect to the underlying Options. Upon the exercise of an underlying Option or
other Reload Option, the Reload Option will be evidenced by an amendment to the
underlying Option Agreement or a new Option Agreement.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;
No additional Reload Options shall be granted to Participants when Options and/or Reload
Options are exercised pursuant to the terms of this Plan following the Date of
Termination.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9&nbsp;&nbsp;&nbsp;
<I>Buyout Provisions</I>. The Committee may at any time offer to buy out, for a payment in cash
or Stock, an Option previously granted, dated on such terms and conditions as the
Committee shall establish, and com mu nicated to the Participant at the time that such
offer is made. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 3<BR>Operation
and Administration </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;
<I>Effective Date.</I> Subject to the approval of the stockholders of the Company at the Company&#146;s
2001 Annual Meeting of its stockholders, the Plan shall be effective as of May 24, 2001
(the &#147;Effective Date&#148;); provided, however, that to the extent that Options are
granted under the Plan prior to its approval by stockholders, they shall be contingent
upon approval of the Plan by the stockholders of the Company. The Plan shall be unlimited
in duration and, in the event of Plan termination, shall remain in effect as long as any
Options under it are outstanding; provided, however, that, to the extent required by the
Code, no Incentive Stock Options may be granted under the Plan on a date that is more
than ten years from the date the Plan is adopted or, if earlier, the date the Plan is
approved by stockholders. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;
<I>Shares Subject to Plan</I>. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) </FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i)&nbsp;&nbsp;&nbsp; Subject to the following provisions of this Section 3.2, the maximum number shares of
Stock that may be delivered to Participants and their beneficiaries under the Plan shall
be equal to the sum of: (1) 900,000 shares of Stock; (2) any shares of Stock available
for future awards under the Company&#146;s 1992 Performance Employee Sock Option Plan as
of the Effective Date (&#147;1992 Plan&#148;); and (3) any shares of Stock that are
represented by options granted under the 1992 Plan which are forfeited, expire or are
canceled without delivery of shares of Stock or which result in the forfeiture of shares
of Stock back to the Company.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;
Any shares of Stock granted under the Plan that are forfeited because of the failure to
meet a contingency or condition shall again be available for delivery pursuant to new
Options granted under the Plan. To the extent any shares of Stock covered by an Options
are not delivered to a Participant or beneficiary because the Option is forfeited or
canceled, or the shares of Stock are not delivered because the Option is settled in cash,
such shares shall not be deemed to have been delivered for purposes of determining the
maximum number of shares of Stock available for delivery under the Plan.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;If
the Exercise Price of any stock option granted under the Plan or the 1992 Plan is
satisfied by tendering shares of Stock to the Company (by either actual delivery or by
attestation), only the number of shares of Stock issued net of the shares of Stock
tendered shall be deemed delivered for purposes of determining the maximum number of
shares of Stock available for delivery under the Plan.</FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>B-3 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 29; page: 29" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;
Shares of Stock delivered under the Plan in settlement, assumption or substitution of
outstanding awards (or obligations to grant future awards) under the plans or
arrangements of another entity shall not reduce the maximum number of shares of Stock
available for delivery under the Plan, to the extent that such settlement, assumption or
substitution is a result of the Company or a Related Company acquiring another entity (or
an interest in another entity).</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;
Subject to Section 3.2(d), the following additional maximums are imposed under the Plan.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;
The maximum number of shares of Stock that may be issued as Options intended to be
Incentive Stock Options shall be 700,000 shares.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;
The maximum number of shares that may be covered by Options granted to any one individual
pursuant to Section 2 shall be 300,000 shares during any consecutive 12 months.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;
In the event of a corporate transaction involving the Company (including, without
limitation, any stock dividend, stock split, extraordinary cash dividend,
recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination
or exchange of shares), the Committee may adjust Options to preserve the benefits or
potential benefits of the Options. Action by the Committee may include adjustment of: (i)
the number and kind of shares which may be delivered under the Plan; (ii) the number and
kind of shares subject to outstanding Options; and (iii) the Exercise Price of
outstanding Options; as well as any other adjustments that the Committee determines to be
equitable.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;
In the event that the Stock of the Company is split or reverse-split, whether by stock
dividend, combination, reclassification or similar method not involving the payment of
consideration, the number of shares of Stock available for Options under this Plan, in
the aggregate and individually as set forth in Sections 3.2(a)(i), 3.2(a)(iv), and 3.2(b)
shall be automatically proportionately adjusted.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3&nbsp;&nbsp;&nbsp;
<I>Limit on Distribution</I>. Distribution of shares of Stock under the Plan shall be subject to
the following: </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;
Notwithstanding any other provision of the Plan, the Company shall have no liability to
deliver any shares of Stock under the Plan or make any other distribution of benefits
under the Plan unless such delivery or distribution would comply with all applicable laws
(including, without limitation, the requirements of the Securities Act of 1933), and the
applicable requirements of any securities exchange or similar entity.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;
To the extent that the Plan provides for issuance of stock certificates to reflect the
issuance of shares of Stock, the issuance may be effected on a noncertificated basis, to
the extent not prohibited by applicable law or the applicable rules of any stock exchange.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4&nbsp;&nbsp;&nbsp;
<I>Tax Withholding</I>. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;
Prior to the delivery of any shares of Stock pursuant to the exercise of an Option, the
Company shall have the power and the right to deduct or withhold from any amounts due to
the Participant from the Company, or require a Participant to remit to the Company, an
amount sufficient to satisfy federal, state and local taxes (including the Participant&#146;s
FICA obligation) required to be withheld with respect to such exercise.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;
The Committee pursuant to such procedures as it may specify from time to time, may permit
a Participant to satisfy such tax withholding obligation, in whole or in part, by (i)
electing to have the Company withhold otherwise deliverable shares of Stock, or (ii)
delivery to the Company shares of Stock then owned by the Participant having a Fair
Market Value equal to the amount required to be withheld. The amount of the withholding
requirement shall be deemed to include any amount that the Committee agrees may be
withheld at the time any such election is made, not to exceed the amount determined by
using the maximum federal, state or local marginal income tax rates applicable to the
Participant with respect to the exercise of an Option on the date that the amount of tax
to be withheld is to be determined. The Fair Market Value of the shares of Stock to be
withheld or delivered shall be determined as of the date that the taxes are required to
be withheld.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>B-4 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 30; page: 30" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;
If the Participant, in connection with the exercise of any Option, makes the election
permitted under section 83(b) of the Code to include in such Participant&#146;s gross
income in the year of transfer the amounts specified in Section 83(b) of the Code, then
such Participant shall notify the Company of such election within 10 days after filing
the notice of the election with the Internal Revenue Service, in addition to any filing
and notification required pursuant to regulations issued under Section 83(b) of the Code.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5&nbsp;&nbsp;&nbsp;
<I>Payment Shares</I>. Subject to the overall limitation on the number of shares of Stock that
may be delivered under the Plan, the Committee may use available shares of Stock as the
form of payment for compensation, grants or rights earned or due under any other
compensation plans or arrangements of the Company or a Related Company, including the
plans and arrangements of the Company or a Related Company acquiring another entity (or
an interest in another entity). </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6&nbsp;&nbsp;&nbsp;
<I>Dividends and Dividend Equivalents</I>. An Option Agreement may provide the Participant with
the right to receive dividends or dividend equivalent payments with respect to Stock
which may be either paid currently or credited to an account for the Participant, and may
be settled in cash or Stock as determined by the Committee. Any such settlements, and any
such crediting of dividends or dividend equivalents or reinvestment in shares of Stock,
may be subject to such conditions, restrictions and contingencies as the Committee shall
establish, including the reinvestment of such credited amounts in Stock equivalents. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7&nbsp;&nbsp;&nbsp;
<I>Deferrals</I>. The Committee may permit a Participant to defer receipt of the payment of the
delivery of shares of Stock that would otherwise be due to such Participant under an
Option. Any such deferral election shall be subject to such rules and procedures as shall
be determined by the Committee. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8&nbsp;&nbsp;&nbsp;
<I>Transferability</I>. Options granted under the Plan are not transferable or assignable by the
Participant and may not be subject to execution, attachment or similar process otherwise
than, by will or by the laws of descent and distribution and shall be exercisable during
the lifetime of the Participant only by the Participant; provided, however, that
Nonqualified Stock Options held by a Participant may be transferred to such family
members, a partnership or other entity in which all the beneficial owners are family
members, trusts, charitable institutions, or any other entity affiliated with the
Participant as the Committee shall approve. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9&nbsp;&nbsp;&nbsp;
<I>Form and Time of Elections</I>. Unless otherwise specified herein, each election required or
permitted to be made by any Participant or other person entitled to benefits under the
Plan, and any permitted modification, or revocation thereof, shall be in writing filed
with the Committee at such times, in such form, and subject to such restrictions and
limitations, not inconsistent with the terms of the Plan, as the Committee shall require. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10&nbsp;&nbsp;&nbsp;
<I>Agreement with Company</I>. At the time an Option is granted to a Participant under the Plan,
the Committee may require a Participant to enter into an agreement with the Company in a
form specified by the Committee, agreeing to the terms and conditions of the Plan and to
such additional terms and conditions, not inconsistent with the Plan, as the Committee
may prescribe. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11&nbsp;&nbsp;&nbsp;
<I>Limitation of Implied Rights</I>. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;
Neither a Participant nor any other person shall, by reason of the Plan, acquire any
right in or title to any assets, funds or property of the Company or any Related Company
whatsoever, including, without limitation, any specific funds, assets, or other property
which the Company or any Related Company, in their sole discretion, may set aside in
anticipation of a liability under the Plan. A Participant shall have only a contractual
right to the stock or amounts, if any, payable under the Plan, unsecured by any assets of
the Company or any Related Company. Nothing contained in the Plan shall constitute a
guarantee that the assets of such companies shall be sufficient to pay any benefits to
any person.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;
The Plan does not constitute a contract of employment, and selection as a Participant
will not give any employee the right to be retained in the employ of the Company or any
Related Company, nor any right or claim to any benefit under the Plan, unless such right
or claim has specifically accrued under the terms of the Plan. Except as otherwise
provided in the Plan, no Option granted under the Plan shall confer upon the holder
thereof any right as a shareholder of the Company prior to the date on which the
individual fulfills all conditions for receipt of such rights.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>B-5 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 31; page: 31" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;
Unless otherwise determined by the Committee, the grant or exercise of Options by
Participants under the Plan shall not be determined a part of the Participant&#146;s
regular, recurring compensation for purposes of calculating payments or benefits from any
Company benefit plan or severance program.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12&nbsp;&nbsp;&nbsp;
<I>Evidence</I>. Evidence required of anyone under the Plan may be by certificate, affidavit,
document or other information which the person acting on it considers pertinent and
reliable, and signed, made or presented by the proper party or parties. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13&nbsp;&nbsp;&nbsp;
<I>Action by Company or Related Company</I>. Any action required or permitted to be taken by the
Company or any Related Company shall be by resolution of its board of directors, or by
action of one or more members of the board (including a committee of the board) who are
duly authorized to act for the board, (except to the extent prohibited by applicable law
or applicable rules of any stock exchange or NASDAQ Stock Market) by a duly authorized
officer of the Company. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14&nbsp;&nbsp;&nbsp;
<I>Fractional Shares</I>. The Company shall not be required to issue any fractional shares of
Stock pursuant to this Plan. The Committee may provide for the elimination of fractions
or for the settlement thereof. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 4<BR>Committee </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;
<I>Administration and Powers of Committee</I>. The authority to control and manage the operation
and administration of the Plan shall be vested in a committee (the &#147;Committee&#148;)
in accordance with this Section 4. Without limiting the generality of the foregoing, the
general purposes, terms and conditions of the Plan, the Committee shall have full power
to implement and carry out the Plan including, but not limited to, the following: </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;
Subject to the provisions of the Plan, the Committee will have the authority and
discretion (i) to select from among the Eligible Individuals those persons who shall
receive Options, (ii) to determine the time or times of receipt of Options, (iii) to
determine the types of Options and the number of shares covered by the Options, (iv) to
establish the terms, conditions, restrictions, deferral arrangements and other provisions
of such Options, (v) to cancel or suspend Options, (vi) to permit a Participant to
relinquish (in full or part) an Option in order to maximize the Participant&#146;s
after-tax proceeds, (vii) to provide for &#147;gross-up&#148; for any taxes associated
with any Option, (viii) to grant Options in lieu of salary increases or other
compensation or benefit arrangements, (ix) to provide for such forfeitures of Options as
may be permitted under applicable law; and (x) to make such modifications or adjustments
to Options to Participants working outside the United States as are advisable to fulfill
the purposes of the Plan. In making such determinations, the Committee may take into
account the nature of services rendered by the individual, the individual&#146;s present
and potential contribution to the Company&#146;s success and such other factors as the
Committee deems relevant.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;
The Committee will have the authority and discretion to establish the performance
objectives for Participants who have received grants of Options. The Committee will have
the authority and discretion to determine the extent to which Options under the Plan will
be structured to conform to the requirements applicable to performance-based compensation
as described in Section 162(m) of the Code, and to take such action, establish such
procedures, and impose such restrictions at the time such Options are granted as the
Committee determines to be necessary or appropriate to conform to such requirements.
Performance objectives may be described in terms of Company-wide objectives or objectives
that are related to the performance of the individual Participant, the Company or a
subsidiary, division, department, restaurant or function within the Company or subsidiary
in which the Participant is employed (or to which services are rendered). Except in the
case of such an Option intended to qualify under Section 162(m) of the Code, if the
Committee determines that a change in the business, operations, corporate structure or
capital structure of the Company, or the manner in which it conducts its business, or
other events or circumstances render the performance objectives unsuitable, the Committee
may modify such performance objectives or the related minimum acceptable level of
achievement, in whole or in part, as the Committee deems appropriate and equitable.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>B-6 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 32; page: 32" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;
The Committee will have the authority and discretion to interpret the Plan, to establish,
amend, and rescind any rules and regulations relating to the Plan, to determine the terms
and provisions of any agreements made pursuant to the Plan, and to make all other
determinations that may be necessary or advisable for the administration of the Plan. Any
interpretation of the Plan by the Committee and any decision made by it under the Plan is
final and binding.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;
Notwithstanding any other provision of this Plan to the contrary, in the event of
termination of employment by reason of death, Disability, Retirement, early retirement
with the consent of the Company or leave of absence authorized by the Company, under
applicable law or otherwise approved by the Company, or in the event of hardship or other
special circumstances, of a Participant who holds an Option that is not immediately and
fully exercisable, or any shares of Stock that are subject to any transfer restriction,
the Committee may take any action that it deems to be equitable under the circumstances
or in the best interests of the Company, including, without limitation, waiving or
modifying any limitation or requirement with respect to any Option granted under this
Plan.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;
The Committee shall not approve any agreement, amendment or modification to an agreement
or the Plan that would reprice any Option issued under the Plan.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;
In controlling and managing the operation and administration of the Plan, the Committee
shall act by a majority of its then members, by meeting or by written consent without a
meeting. The Committee shall maintain and keep adequate records concerning the Plan and
concerning its proceedings and acts in such form and detail as the Committee may decide.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;
<I>Selection of Committee</I>. The Committee shall be selected by the Board, and shall consist
of two or more members of the Board, all of whom shall qualify as an &#147;outside
director&#148; pursuant to Section 162(m) of the Code and a &#147;non-employee director&#148; as
determined by Rule 16b-3 of the Exchange Act. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;
<I>Delegation by Committee</I>. Except to the extent prohibited by applicable law or the
applicable rules of a stock exchange or the NASDAQ Stock Market, the Committee may
allocate all or any portion of its responsibilities and powers to any one or more of its
members and may delegate all or any part of its responsibilities and powers to any person
or persons selected by it, provided however, that the Committee may not delegate its
authority and powers in any way which would jeopardize the Plan&#146;s or any Option&#146;s
qualification under Rule 16b-3 of the Exchange Act or Section 162(m) of the Code. Any
such allocation or delegation may be revoked by the Committee at any time. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4&nbsp;&nbsp;&nbsp;
<I>Information to be Furnished to Committee</I>. The Company and Related Companies shall furnish
the Committee with such data and information as may be required for it to discharge its
duties. The records of the Company and Related Companies as to an employee&#146;s or
Participant&#146;s employment (or other provision of services), termination of employment
(or cessation of the provisions of services), leave of absence, reemployment and
compensation shall be conclusive on all persons unless determined to be incorrect.
Participants and other persons entitled to benefits under the Plan must furnish the
Committee such evidence, data or information as the Committee considers desirable to
carry out the terms of the Plan. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5&nbsp;&nbsp;&nbsp;
<I>Indemnification</I>. In addition to such other rights of indemnification as they may have as
directors and officers of the Company, members of the Committee and those officers and
employees administering the Plan at the Committee&#146;s discretion shall be indemnified
by the Company against any reasonable expenses, including attorney&#146;s fees actually
and necessarily incurred, which they or any of them may incur by reason of any action
taken or failure to act under or in connection with the Plan or any Option granted
thereunder, and against all amounts paid by them in settlement or any claim related
thereto, (provided such settlement is approved by independent legal counsel selected by
the Company) or paid by them in satisfaction of a judgment in any such action, suit or
proceeding that such director is liable for negligence or misconduct in the performance
of his or her duties; provided that within 60 days after institution of any such action,
suit or proceeding a director shall in writing offer the Company the opportunity, at its
own expense, to handle the defense of the same. </FONT></FONT> </P>


<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>B-7 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 33; page: 33" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 5
<BR>Amendment and Termination </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;
The Board may, at any time, amend, suspend or terminate the Plan, in whole or part. No
amendment shall be effective unless such amendment is approved by the stockholders of the
Company where the failure to obtain such approval would adversely affect the compliance
of the Plan with Section 162(m) and Section 422 of the Code and with other applicable law
or regulation. No amendment suspension or termination may, in the absence of written
consent to the change by the affected Participant (or, if the Participant is not then
living, the affected beneficiary), adversely affect the rights of any Participant or
beneficiary under any Option granted under the Plan prior to the date such amendment is
adopted by the Board. This Section 5 is subject to the restrictions of Section 4.1(e). </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION6<BR>Change in
Control </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;
<I>Change in Control</I>. Unless specifically provided to the contrary in any Option Agreement,
in the event of a Change in Control of the Company, unless outstanding Options are
effectively assumed by the surviving entity or acquiring entity, all Options granted
under this Plan that then are outstanding and not then exercisable or are subject to
restrictions, shall, except as provided in Section 6.2, or unless otherwise provided for
in the Option Agreements applicable thereto, become immediately exercisable, and all
restrictions shall be removed, as of the first date that the Change in Control has been
deemed to have occurred, and shall remain as such for the remaining life of the Option as
provided herein and within the provisions of the related Option Agreements. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;
<I>Adjustments upon Merger or Asset Sale</I>. In the event of a Change in Control under Section
6.3(b) or (c) (ii) (a &#147;Section 6.2 Event&#148;) and the successor corporation does
not either (i) assume each outstanding Option or (ii) substitute an equivalent option by
the successor entity or a parent or subsidiary of the successor entity, then the Option
shall fully vest and become immediately exercisable. For the purpose of this subsection,
the Option shall be considered assumed if, following the Section 6.2 Event, the holder of
the Option has the right to purchase or receive, for each share of Stock subject to the
Option immediately prior to the Section 6.2 Event, equal consideration (whether stock,
cash, or other securities or property) as received in the Section 6.2 Event by holders of
each share of Stock held on the effective date of the transaction (and if holders of
shares of Stock were offered a choice of consideration, the type of consideration chosen
by the holders of a majority of the outstanding shares of Stock); provided, however, that
if such consideration received in the Section 6.2 Event was not solely common stock of
the successor entity or its parent, the Committee may, with the consent of the successor
corporation, provide for the consideration to be received upon the exercise of the
Option, for each share of Stock subject to the Option, to be cash and/or other securities
equal in Fair Market Value to the per share consideration received by holders of Stock in
the merger or sale of assets. </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;
<I>Definition</I>. For purposes of this Section 6, a Change in Control of the Company shall be
deemed to have occurred if the conditions set forth in any one or more of the following
shall have been satisfied: </FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;
any &#147;person&#148; as such term is used in Sections 13(d) and 14(d) of the Exchange
Act is or becomes the &#147;beneficial owner&#148; (as defined in Rule 13(d)(3) under the
Exchange Act, directly or indirectly, of securities of the Company representing 20% of
more of the combined voting power of the Company&#146;s then outstanding voting
securities (&#147;Voting Securities&#148;);or</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;
the stockholders of the Company approve a merger or consolidation of the Company with any
other corporation (or other entity), other than:</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;
a merger or consolidation which would result in the Voting Securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity) more
than 80% of the combined voting power of the Voting Securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;
a merger or consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no person acquires more than 20% of the combined voting
power of the Company&#146;s then outstanding Voting Securities; or</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>B-8 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 34; page: 34" -->
<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;a
merger or consolidation which would result in the directors of the Company (who were
directors immediately prior thereto) continuing to constitute at least 50% of all
directors of the surviving entity after such merger or consolidation. The term, &#147;surviving
entity&#148; shall mean only an entity in which all the Company&#146;s stockholders
immediately before such merger or consolidation (determined without taking into account
any stockholders properly exercising appraisal or similar rights) become stockholders by
the terms of such merger or consolidation, and the phrase &#147;directors of the Company
(who were directors immediately prior thereto)&#148; shall include only individuals who
were directors of the Company at the beginning of the 24 consecutive month period
preceding the date of such merger or consolidation.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;
(i) the stockholders of the Company approve a plan of complete liquidation or (ii) an
agreement for the sale or disposition of all or substantially all of the Company&#146;s
assets; or</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;
during any period of 24 consecutive months, individuals, who at the beginning of such
period constitute the Board of Directors of the Company, and any new director whose
election by the Board of Directors, or whose nomination for election by the Company&#146;s
stockholders, was approved by a vote of at least one-half (1/2) of the directors then in
office (other than in connection with a contested election), cease for any reason to
constitute at least a majority of the Board of Directors.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 7<BR>Governing Law </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1&nbsp;&nbsp;&nbsp;
This Plan and all Option Agreements, shall be construed in accordance with and governed
the laws of Delaware (excluding its conflicts of laws provisions). </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 8<BR>Defined Terms </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1&nbsp;&nbsp;&nbsp;
For purposes of the Plan, the terms listed below shall be defined as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;
1992 Plan. The term &#147;1992 Plan&#148; has the meaning set forth in Section 3.2(a).</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;
Board. The term &#147;Board&#148; shall mean the Board of Directors of the Company.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;
Cause. The term &#147;Cause&#148; shall mean unless otherwise defined in any employment
agreement with the Participant or Option Agreement any one or more of the following:</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;
Dishonesty, incompetence or gross negligence in the discharge of the Participant&#146;s
duties.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;
Theft, embezzlement, fraud, breach of confidentiality, or unauthorized disclosure or use
of inside information, recipes, processes, customer and employee lists, trade secrets, or
other Company proprietary information.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;Willful
material violation of any law, rule, or regulation of any governing authority or of the
Company&#146;s policies and procedures, including the Company&#146;s Code of Ethics and
Code of Conduct.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;
Material breach of any agreement with the Company.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;
Intentional conduct which is injurious to the reputation, business or assets of the
Company.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;
Solicitation of the Company&#146;s agents or staff members to work for any other business
entity.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;
<I>Change of Control</I>. The term &#147;Change of Control&#148; has the meaning set forth in
Section 6.3. </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;
<I>Code</I>. The term &#147;Code&#148; means the Internal Revenue Code of 1986, as amended. A
reference to any provision of the Code shall include reference to any successor provision
of the Code. </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;
<I>Committee</I>. The term &#147;Committee&#148; has the meaning set forth in Section 4.1. </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;
<I>Date of Termination</I>. The Participant&#146;s &#147;Date of Termination&#148; shall be the
first day on which the Participant&#146;s employment with the Company and all Related
Companies terminates for any reason (except as provided below for Cause); provided that a
termination of employment shall not be deemed to occur by reason of a transfer of the
Participant between the Company and a Related Company or between two Related Companies;
and further provided, that the Participant&#146;s employment shall not be considered
terminated while the Participant is on a leave of absence from the Company or a Related
Company approved by the Participant&#146;s employer or as otherwise required under law.
If, as a result of a sale or other transaction, the Participant&#146;s employer ceases to
be a Related Company (and the Participant&#146;s employer is or becomes an entity that is
separate from the Company), the occurrence of such transaction shall be treated as the
Participant&#146;s Date of Termination caused by the Participant being discharged by the
employer. If a Participant&#146;s employment with the Company and all Related Companies
terminates for Cause, the Date of Termination shall be deemed to occur on the date the
Company sends or delivers notice to the Participant that such Participant is terminated
for Cause. </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>B-9 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 35; page: 35" -->
<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;
<I>Disability</I>. Except as otherwise provided by the Committee, the Participant shall be
considered to have a &#147;Disability&#148; during the period in which the Participant is
unable, by reason of a medically determinable physical or mental impairment, to engage in
any substantial gainful activity, which condition, in the opinion of a physician selected
by the Committee, is expected to have a duration of not less than 120 days. In the case
of an Incentive Stock Option, &#147;Disability&#148; shall have the meaning set forth in
Section 22(e)(3) of the Code. </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;
<I>Effective Date</I>. The term &#147;Effective Date&#148; has the meaning set forth in Section
3.2. </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;
<I>Eligible Individual</I>. The term &#147;Eligible Individual&#148; shall mean any employee of
the Company or a Related Company, and any consultant or other person providing key
services to the Company or a Related Company. </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;
<I>Exchange Act</I>. The term &#147;Exchange Act&#148; means the Securities Exchange Act of 1934,
as amended and the rules and regulations promulgated thereunder. A reference to any
provision of the Exchange Act shall include reference to any successor provision of the
Exchange Act. </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;
<I>Exercise Price</I>. The term &#147;Exercise Price&#148; shall mean the per share price at
which an holder of an Option may purchase shares issued upon exercise of such Option as
determined by the Committee. </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;
<I>Fair Market Value</I>. For purposes of determining the &#147;Fair Market Value&#148; of a
share of Stock, the following rules shall apply: </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;
if the Stock is listed or admitted to trade on a national securities exchange, the
closing price of the Stock on the Composite Tape, as published in The Wall Street
Journal, of the principal national securities exchange on which the Stock is so listed or
admitted to trade, on such date, or, if there is no trading of the Stock on such date,
then the closing price of the Stock as quoted on such Composite Tape on the next
preceding date on which there was trading in such shares;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;
if the Stock is not listed or admitted to trade on a national securities exchange but is
listed and quoted on The Nasdaq Stock Market (&#147;Nasdaq&#148;), the last sale price
for the Stock on such date as reported by Nasdaq, or, if there is no reported trading of
the Stock on the next preceding date on which there was trading in the Stock;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;if
the Stock is not listed or admitted to trade on a national securities exchange and is not
listed and quoted on Nasdaq, the mean between the closing bid and asked price for the
Stock on such date, as furnished by the National Association of Securities Dealers, Inc. (&#147;NASD&#148;);</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;
if the Stock is not listed or admitted to trade on a national securities exchange, not
listed and quoted on Nasdaq and closing bid and asked prices are not furnished by the
NASD, the mean between the closing bid and asked price for the Stock on such date, as
furnished by the National Quotation Bureau (&#147;NQB&#148;) or similar organization;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 2" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;
if the Stock is not listed or admitted to trade on a national securities exchange, not
listed and quoted on Nasdaq and if bid and asked prices for the Stock are not furnished
by the NASD, NQB or a similar organization, the value established in good faith by the
Committee.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;
<I>Incentive Stock Option</I>. The term &#147;Incentive Stock Option&#148; has the meaning set
forth in &nbsp;Section &nbsp;2.1(a). </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>B-10 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 36; page: 36" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;
<I>Nonqualified Stock Option</I>. The term &#147;Nonqualified Stock Option&#148; has the meaning
set forth in Section 2.1(a). </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;
<I>Option</I>. The term &#147;Option&#148; has the meaning set forth in Section 2.1. </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;
<I>Option Agreement</I>. The term &#147;Option Agreement&#148; means with respect to each Option,
the signed written agreement between the Company and the Participant setting forth the
terms and conditions of the Option. </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;
<I>Participant</I>. The term &#147;Participant&#148; has the meaning set forth in Section 1.2. </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;
<I>Pricing Date</I>. The term &#147;Pricing Date&#148; means the date on which an Option is
granted, except that the Committee may determine that for purposes of a Nonqualified
Stock Option the Pricing Date is the date on which a written offer is made to the
recipient or the recipient is hired or promoted (or similar event), if the grant of the
Option occurs not more than 90 days after the date of such offer, hiring, promotion or
other event. </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;
<I>Related Company</I>. The term &#147;Related Company&#148; means (i) any corporation,
partnership, joint venture, limited liability company or other entity during any period
in which it owns, directly or indirectly, at least twenty-five percent (25%) of the
voting power of all classes stock of the Company (or successor to the Company) entitled
to vote; and (ii) any corporation, partnership, joint venture, limited liability company
or other entity during any period in which at least a fifty percent voting or profits
interest is owned, directly or indirectly, by the Company, or by any entity that is a
successor to the Company. Notwithstanding the foregoing, in the case of an Incentive
Stock Option the term &#147;Related Company&#148; shall be defined consistent with the
provisions of Section 424(e) and (f) of the Code. </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;&nbsp;&nbsp;
<I>Retirement</I>. The term &#147;Retirement&#148; shall mean for an employee of the Company or
Related Company the occurrence of the Participant&#146;s Date of Termination after age 60. </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;
<I>Stock</I>. The term &#147;Stock&#148; shall mean shares of common stock of the Company. </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10 in 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)&nbsp;&nbsp;&nbsp;
<I>Ten Percent Stockholder</I>. The term &#147;Ten Percent Stockholder&#148; means a person who
directly or by attribution owns more than 10% of the total combined voting power of all
classes of capital stock of the Company or any Related Company. </FONT></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>B-11 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 37; page: 37" -->
<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major 12" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>YOUR VOTE IS IMPORTANT
TO US.</FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major 12" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>YOU CAN VOTE BY MAIL,<BR>OR
<BR>YOU CAN VOTE BY TELEPHONE OR THE INTERNET<BR>BY FOLLOWING THE FOUR EASY STEPS BELOW. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Reg Cover Table 2 Col 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
     <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>VOTE BY TELEPHONE</B> </FONT></FONT> <HR WIDTH=50% SIZE=1 NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
     <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>VOTE BY INTERNET</B> </FONT></FONT> <HR WIDTH=45% SIZE=1 NOSHADE></TD>
</TR>
<TR VALIGN=TOP>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
</TR>
<TR VALIGN=TOP>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
     <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>It&#146;s fast, convenient and your vote is
          <BR>immediately confirmed and posted. Using a<BR>touch-tone telephone, call the toll-free
          <BR>telephone number and follow these<BR>four easy steps: </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
     <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>It&#146;s fast, convenient and your vote is
          <BR>immediately confirmed and posted. You will<BR>also have the option to register to receive
          <BR>future materials via the Internet,<BR>when available. </FONT></TD>
</TR>
<TR VALIGN=TOP>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
     <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.<BR><BR>2.<BR>3.<BR><BR><BR>4.</FONT></TD>
     <TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Read the accompanying Proxy Statement
          <BR>and voting instruction form.<BR>Call the toll-free number 1-800-690-6903.
          <BR>Enter your 12-digit Control Number<BR>located in the gray shaded box of your<BR>voting instruction form.
          <BR>Follow the simple recorded instructions.</FONT></TD>
     <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
     <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.<BR><BR>2.<BR>3.<BR><BR><BR>4.</FONT></TD>
     <TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Read the accompanying Proxy Statement
          <BR>and voting instruction form.<BR>Go to website: www.proxyvote.com.<BR>Enter your 12-digit Control Number
          <BR>located in the gray shaded box on the<BR>right side of your voting instruction form.<BR>Follow the simple instructions.</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please do not return
your Voting Form if you voted by telephone or Internet.</FONT></H1>


<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>






<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 3; page: 3" -->
<!-- MARKER FORMAT-SHEET="Page Width Start" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 COLOR=GRAY NOSHADE>



<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>ADMITTANCE SLIP<BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>THE CHEESECAKE FACTORY INCORPORATED<BR>
ANNUAL MEETING OF STOCKHOLDERS</FONT></FONT></H1>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<DIV ALIGN="CENTER">

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TD WIDTH="17%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>Place:</B></FONT></FONT></TD>
     <TD WIDTH="83%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>The Cheesecake Factory&reg;</B></FONT></FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>605 North Harbor Drive</B></FONT></FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>Redondo Beach, California</B></FONT></FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>Time:</B></FONT></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>May 24, 2001, 10:00 a.m. PDT</B></FONT></FONT></TD></TR>
</TABLE>
<BR>

</DIV>

<!-- MARKER FORMAT-SHEET="Page Width Start" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Please present this
coupon at the entrance to the meeting room. You may bring guests, but we reserve the
rights to limit the number of your guests in order to ensure adequate seating for
stockholders. Camcorders or photograghy equipment of any kind are expressly prohibited at
the Annual Meeting.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Cheesecake Factory Incorporated<BR>
26950 Agoura Road &#149; Calabasas Hills, CA 91301<BR>
Telephone (818) 871-3000<BR>
www.thecheesecakefactory.com</FONT></H1>

<BR>
<BR>
<BR>
<BR>
<BR>

<HR SIZE="1" NOSHADE>


<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TD WIDTH="27%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>PROXY</B></FONT></FONT></TD>
     <TD WIDTH="73%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>THE CHEESECAKE FACTORY INCORPORATED</B></FONT></FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Start" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Bold 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Solicited
on behalf of the Board of Directors of THE CHEESECAKE FACTORY INCORPORATED (the &#147;Company&#148;)
for use at the Annual Meeting of Stockholders (the &#147;Meeting&#148;) to be held on May
24, 2001, at 10:00 A.M. at The Cheesecake Factory&reg;restaurant, 605 North Harbor Drive,
Redondo Beach, California. </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned hereby appoints Linda J. Candioty and Gerald W. Deitchle, or either one of
them, as Proxies, with the full power of substitution, to vote all shares of common stock
of the Company held of record by the undersigned on April 12, 2001 at the Meeting or at
any adjournments thereof, on the proposals set forth on the reverse side and in their
discretion upon such other business as may properly come before the Meeting.</FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Bold 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>This
proxy, when properly executed, will be voted in the manner directed by the undersigned
stockholder. If no direction is given, this proxy will be voted for Proposals 1 and 2.
All proxies heretofore given by the undersigned are hereby revoked. Receipt of the Proxy
Statement dated April 23, 2001 is acknowledged.  </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="1"><B>(Continued and to be
signed on the reverse side)</B></FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>


<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<!-- MARKER FORMAT-SHEET="Page Width Start" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 COLOR=GRAY NOSHADE>



<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><IMG SRC="g70455_small-logo.gif" ALT="Small Logo"><BR>
<FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2"><I>THE CHEESECAKE FACTORY INCORPORATED<BR>
PROXY SERVICES<BR>
P.O. BOX 9141<BR>
FARMINGDALE, NY 11735</I></FONT></FONT></H2>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THREE WAYS TO VOTE</FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>VOTE BY PHONE:
1-800-690-6903</FONT></H2>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Read
the accompanying Proxy Statement and this proxy card. </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Call
toll free 1-800-690-6903. </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Enter
your 12-digit Control Number, shown below. </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Follow
the simple recorded instructions. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Start" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>VOTE BY INTERNET:
WWW.PROXYVOTE.COM</FONT></H2>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Read
the accompanying Proxy Statement and this proxy card. </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Go
to website WWW.PROXYVOTE.COM. </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Enter
your 12-digit Control Number, shown below. </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Follow
the simple instructions. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Start" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>VOTE BY MAIL </FONT></H2>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark,
sign and date your proxy card. </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Return
it in the enclosed postage paid envelope. </FONT></TD>
</TR>
</TABLE>
<BR>

<BR><BR>

<!-- MARKER FORMAT-SHEET="Reg Cover Table 3 Col 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=BOTTOM>
     <TD ALIGN=LEFT WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>TO VOTE, MARK BLOCKS<BR>BELOW IN BLUE
          OR BLACK INK AS FOLLOWS:</FONT></TD>
     <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>CHEPRX</FONT></TD>
     <TD ALIGN=RIGHT WIDTH=45%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>KEEP THIS PORTION FOR YOUR RECORDS</FONT></TD>
</TR>
<TR VALIGN=TOP>
     <TD COLSPAN=3><HR SIZE=1 NOSHADE></TD>
</TR>
<TR VALIGN=TOP>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>DETACH AND RETURN THIS PORTION ONLY</FONT></TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Center 8" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>THIS PROXY CARD IS
VALID ONLY WHEN SIGNED AND DATED. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>THE CHEESECAKE FACTORY
INCORPORATED</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board of Directors
recommends a vote in favor of Proposals 1 and 2. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">For</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Against</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Abstain</FONT></TH></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="4">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="70%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>1. ELECTION OF THOMAS L. GREGORY AS DIRECTOR</B></FONT></FONT></TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD></TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">For</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Against</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Abstain</FONT></TH></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="4">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="70%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>2. APPROVAL OF THE COMPANY'S 2001 STOCK OPTION PLAN.</B></FONT></FONT></TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Start" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please sign exactly as name
appears hereon. If signing as an attorney, executor, administrator, trustee or
guardian, please give full title as such, and if signing for a corporation, give
your title. When shares are in the names of more than one person, each should
sign. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please mark, sign, date and
return this Proxy in the accompanying prepaid envelope. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TD WIDTH="44%" ALIGN="LEFT"><HR SIZE="1" NOSHADE><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Signature [PLEASE SIGN WITHIN BOX]</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><HR SIZE="1" NOSHADE><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="5%" ALIGN="LEFT"><HR SIZE="1" NOSHADE><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Date</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="32%" ALIGN="LEFT"><HR SIZE="1" NOSHADE><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Signature (Joint Owners)</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><HR SIZE="1" NOSHADE><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="5%" ALIGN="LEFT"><HR SIZE="1" NOSHADE><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Date</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>




</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>g70455_graph.gif
<DESCRIPTION>GRAPHIC
<TEXT>

begin 644 g70455_graph.gif
M1TE&.#EAB`'$`/<``````!`0$!@8&"$A(2DI*3$Q,3DY.4)"0E)24F-C8VMK
M:W-S<WM[>X2$A(R,C)R<G*VMK;6UM;V]O<;&QL[.SM[>WN_O[___________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M_____________________RP`````B`'$```(_@`O"!Q(L*#!@P@3*ES(L*'#
MAQ`C2IQ(L:+%BQ@S:MS(L:/'CR!#BAQ)LJ3)DRA3JES)LJ7+ES!CRIQ)LZ;-
MFSASZMS)LZ?/GT"#"AU*M*C1HTB3*EW*M*G3IU"C2IU*M:K5JUBSHJ1`8:$%
M"6#!5I#P@"$%"10J6'!0@:.%!VT1C@W;5>-9"19:5BBKM2_+!P$"\$4HH4`#
M``D4)#AP0*$%`P@D)````8`$CA(&7):+8$`#!8T30H!((<""O"-''USLMS5*
MP%P%)ZS0UO(%"0T,6(A;H:Y`U@(17+#L.ZW`KP)IH\:;O.Y8@0<V"S0^,/<%
MY+T'&G\0.OMU[P:C_E]0*YTZ\NE=U1;GO?N"\=+'RW-W37\CA08,\.M7``!!
M?@0`+)#?@`VH)I!M%S00P`$![(7``<()%(`#`]4VP``)7.!?`!!`@``"!%10
M@`(-6$#``@TV`.("$!3PX04&2/`A!8G))E`#!4B@P`4M(K!C8@,X<,``#SSP
M(0$47`A``,+Y-U!TE5V8(9`04'"``@%8&=@!`!00P(XC%O"``P`,<(`!"0P`
MP60-2``A`1<D@$`!!M1GYT7W$9@??_ZI&*">!1*$(`.-Y3@``PO4>:"!!X(5
M70$,(+#`B`M$%P!:#1P0*9GN/0#!`XE>P%B&23*0V$`,>);AIY5:R2-N_G4V
M>`&1ISXPP`4%$"2>96ZZ^2H"HR60``.Y#F=!9?-5-EQ;;4(J`0`:#GN`K;>%
M=N>U&L%6VF`)(6A==`"T%=>L"PQD@06\/II<EN,E&,"PY?(([7@0')`IC`,(
MEUERU=69%W>$%I;<O>&*.J!`&.[XY&7I"CS>`:.I2.B!!UHWW,5Q"LO`LZ*.
M=FRNOF(K,D:`V;B0MXW%>("8$5X`V&46(("NHQ4`T(`#*A)0+UD2""98`A"\
MN^8!PQ9@)02'HIL`J*A:>R6.E=V,7P%(,S`K!0(*]$#!`ZDY',T`.("SG'$^
M,+&Q.X=;[[)??[CU`PGH##%E#Q0P[LAX2\15_D-")M"6G-PE0`$"!OC&XZA?
M';!``C$&?NZ#7!%=5J966RDS!`;DUC>A#M0KLT`RBN?R`4)2X'@%$`\.;`4?
MMF6!M1<(B4#?C)-%]+D:QQGC<,)V9:3@?5^@@'\9^F?!8J-QAX#@>3?OO$0.
M`*W1O,]7;SU)5VH$&K?7=^_]]^"'+_[XY)=O_ODES4572H;?;93AZ,?O4`-F
M,D:G0G4?0,!F#1!0`&JYR8V!A#3`Z%"`>IR""'>&I[#98&1<,E(`:@HR&?E9
MT"'Y&4C($)*CV&W&,I$!';3(-,$N'6=!!Z'>0RQ3,^X1A'5X@IVF"*/""UKP
M*V$)B[#"XH`<Y1`L_JB9DP1H@S#)M8ECE1G7`&P#MSI99W`5I!$"'@!%3WTH
M<X(:(@#*(IG(T&AI0RK2`A!``04L@'4/R(U_!(2`"LBI=04@TI,VYJ,9#@U:
MH"I<[0[@/AM^KUZ,">20!F``^RU(D(RAT'6X]#E;!<`"&7R6@AHH*L;ARE<<
MTTS-+O!(4.6G7NAJP-;&U:4`-$!":SK4`BB0GSH9;5B^RL^ST!*`6>%F`!78
MG\6@<TI((<T"CTRB9EJW(!?ZT7P9!!WL#'(9P``-ETP*#<?"<T`!83)<\[(,
M]5A'N*]Q4CJ4"8#5O@F6T@S@/HVI5^9BV:9YJ4@S$XO.O0:"Q>C,LI:S_O1A
M5PXSP6.B#S\:7"8%!4(H8LFK7!"89D$:PZ#$W08`,S/6%BTPQHT=(*)<^]HL
MA_.`XW7T081"5P4$A+0+6!-:^]+9O6*4FW'-T)X`..!88FH9BC[F1?Z,'P,`
MP%.>"I0@(*(?!2I3`$CQ=$T!*H@"-",9U&WQ,!)`$9?2N"0(2)4R`(#0.$W:
M'W?A[*@JFF)I^C>`.)JSJ`!B2P#BR!@B,2EHIW396@&S/,LD8*T<FDR6"N"`
MK2DRIX!E2%S.-1($!?:PYI,D8A?+V,8Z]K&0C:QD)TO9G)#%4WVLK&0;D"&%
MN$EAW/GK05"W58702#&=U<C^$A*!Q7QF`NZ#_B*::-,Z(Q$M3KYQHP'B59#"
ME%:S>*N981%")K[\5*EQ54@%.'0=N]DG+ZDE2)L$L+R$$L0"__/F;1JPW',)
MX#H#F*!"P_-;X(J,<<!)B(QB*BKW"$LMPBH+(!EPO!"Z,0%_)1OHTM*["C``
M;D4B(XT\U!49^>T"IF+`2`=')(J&T(,!V!]8"+(`A2$(-S4[)5^R)D(>X2<!
M>1'2H6(',=P4*;GFG<K6>LKB%KN8IYT%RUU1!R,(D,@!"JA`@1BZ)U!F:6T"
MP2)!SMDS"A1@:6&3DR1G'%YBN2EF%6!J8^!5RP31CU#<)0C5&@4Z#9=)-2W2
MX`@Y%"0C6>!0T2,3_HU<!+\49\62NO/L98H*)\DX:T&#LQI^1GHF3#J-DM/4
MS*X.=S%T">DZX0J`9D3E*$X>[$9B4W!!$'1A"EG`2K91*,?8^=),#8N[9XZN
MF[-2L\V46KTP"P"TU(0?M#QH>0CFK`)Z]<@-I@HUIBM8C@;M*VBABUHBI5$M
M8^2K(,6N(8OFI&H<<)EX$>"4^^JPK_"C.!B%]39GX5*;1UV5-.400@B!Y&G<
M4\M\76AYD7K6`BYD@`(PJ(=EM=;K"("S'QE`2%'>F&4F%<K$8%=8LX:8W3Q3
MFF%E5=0(&=:-!%.IO(C35LSJ+"0I(]0/509%!B!J='"YLLQR6RJ)$N1N_L,-
MQ.F,!R]IF?#)U?(5Y'P%R-I!BP8O,Y>SW&5FF_E*5W"XFPDSYRP.<=5T5'[R
M":`&2?')X5W<@Y:\C*7G./3XQ^4'&*F;A;TB@5M#EC;UKH-NB!6Q.4FL7B&O
MF_WL:$^[VM?.]K53=+;*!3O3MWV\A8@VZ24WR5CB(G:)I)'HLVD`_&Y^D#2V
M?2C8C0P"'IF0X[$+N_T\M@50G,+"@[!8<C$F1*ITG+ON/+L148QO7:;<#KXP
M;`C9Y>%_,I_@W+VW%\I+8W#XT,MLYBQ.WSLG3^Z;3=M&Y]<!XI%IT_0AXKXW
MMO_YTY?K@.7$OKU,[_G-C2]SZ.Q(QZ6A>?5U_F]`N7LSY7GYRJ%U'G7FK-XE
M>=)/?LZDG\X`B@&JD4"+4J:A36WM,]!:G`/(C"%\BLA#8B8CN?(Z@&$D+9(9
MT\(A#>(?!U0W:R4GD5(9C!$9B!$7\N=N,)(@BH$D6Y0`_R-P,+<UXG%_1H8T
M53(MX1(=FD)*9-$E+G(!]/8@!#@A=Q4]D7=^[*-^^E%(.V@8@!)_M,0:16(8
MA08M$(4K0F(U\W)`@2)"BY<7OB4IA40AFK(69((;2HB%MV%;,-)HAE5.[](8
MXE0I&M)7$"4X-L,HA;%%%Z-P?2-?K\-7D\8PCA)FO0(I"%`B%X*#-Y$9X2<F
M<O90M90869--P]$5_IIB+QAS+'O884=V&\624)/A)MRE&98!4)=H-=PQ'_;4
M&%]H>TOB39>!-(Q!`!UE*YBG2*P!+3Y2+2-'&RM#`/UD&^G20]7B,*,!(-O&
MAR^1)JF">0CQ*5ICA+EQ``VX2;?#<?1UA)*!,?)R:1-2,SYB@Z1#-$LE@IL2
M-A4F*CZB)DR5*S83%\(8.ZQX*,5B2H!Q&Z=!/:03.\(1-OLW>0RP?_V#.BT2
M793Q-2UR0#ACB<OC`"RB`*#'BS,!`:*T$#HF:<=FD!!`(9WS=^(V1.I7%CHF
M/>.A'QX&%@M`(:!"(:RD8V(#`10%8'MV'VD$`?G1:@TY,`II:9]1%\UW_FPZ
MI@`#Y`!Y&&(<B5\"`9!@@1]IQ!=I]%^BI)("PEU1Q19M\I,$N91,V91.^910
M&952.9546956>958F95:N95<V95>^95@&99B.99D699F>99QXG'F=QN11QWN
M079H"5Q1EB\<R5-E,2+AA5W],T%CI#,F!2+2$9<?5Q@7935;-CHFI0`V68;'
M`5%(LTEU(YA=MUP%XU2-L8V9,D,JTF$U8X<U))EN%F7L,AY$XB2$,D-GPS&&
MUACC-1>J]F*P&9NR.9NT69NV>9NXF9NZN9N\V9N^^9O`&9S"*9NO=UVO`V<)
M,C8(!G").1TH91FW$FV3!IJ'!5#J)20V:3I6_D(;X>5#MZ(9IF-+G#4K%4`B
ME4>=@&6=<G%7(&8E!W8X8`8Q'N8>RY,7>880GXF>%Z2>";&+')&?^BD__-D2
M`!J@_U1>*U&@!FH^`\H2"KJ@Y-.@"0JA-B2A*O&@%!H^%IH2&)JAW[.A*-&A
M'MH]('H2(CJBUE.B)G&B*/H\*EH2+-JBS?.B)!&C,KH4X'$1)9H9;%$=T[$Q
M71:85G@<!WF>-XH5I6$R%@&B1L97<;53I)DD0W1.S@4=`&F8'H*@-GJD#[&8
M-+$MVX(1()H9(',;%71HIF)&<3).!W0;EX)2MV(06\JE#`%,;"@384INFO<0
M)<HE'G-1T*)PF6DU_JGI:UO$FOG)*S^TJ(S:J([ZJ)`:J9(ZJ91:J99ZJ9B:
MJ9JZJ8Z*(DO%J:`:%D&3`+@!%F3";)JJ<`M1`%MT4C1"J.R7(!'",0V(J"\$
M%EF%2+JZJ[S:J[[ZJ\`:K,(ZK,1:K,9ZK,B:K,K:JZS:4_6SK-#*(#Y52%NB
MK",V&ZBSB?BQ18=68>,Y.\D!I_`19G)*IQGQ%J#!4V9"`.JJ*1``EQ\!&#:C
M-:-9$<E$&'&CJH6F)G839;^D=<,R1:)"0$9JKA-A)%D%?W<Z*U1DD`PR``K@
MGQU1&.`I&+`AI@A*$)FAALD!%\DADB<G$)QW'52$GP8K$9,W5P`4IUK#_K(B
M>U=!<H,;X7A;E:02^Q#WZA)S>J0INSOFHJ0,>Q#U(DXRJZ/O4K090:.%=;(-
MD;+,TUNPB7#:P9Y(&Q&9L5HBD;,$RK0+@8"!F1&L(TX7$;;%Z1%**Q([ZZ$4
M-2$AX29>,Q$*`F(FH;4.RK4'@8#P>A%TE;>@8R8WVQ%T.Z%V*UUL:Q)KF[$%
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M/(A@TI1-AS9>`V$S[Z>#)YS"*+S"*MS"+/S"+AS#,#S#,ES#-'S#-IS#+TP`
MIJ'#/HS#GZ%JGW;"[#K$0/S#[S=#"\$@"A-E4:5GL6HJ'79`:].:N(K$1YS%
M6+S%6MS%7/S%7GS$`&+$8(S%7`(I.,RJ?5+&.*R(_7DTUA(9\X%?BPFNB/8Q
MD-DR@B*C;S,3^^N\_@>A((#\$6,:1V+20XHA$"-R4=A%+&O1&)$BG\-CC`T,
MH2@BN25!41,\$9GAOW.+P17RGMYW&QI[''PW0110M,#KE7&(R2,!2>_"MP<1
M,^=T$LEKHA[:OQ"<R;E+R1EQJB;ANQZQREL)&*!\$K`L.O:1+[N,$;>\HA2J
M(..+$CJV(-)[KHLWS1LAS!U!S%=Y/+5<$DG*+9*!&-?,$4'CR1[QS#`*N>[6
MS!D!IH+Q%EZ298:;S001*1K!S?\9H,9\$GFZ-<7$$G@['DNRIQ#!SLM+G8YW
MSAZQ7%2T;A`+M"EQN.CFLA7!SQOAS5'9R?!\KELC):.1I^C')?1%T1*A_M!+
M*YAKJ\UN`2M=0BQ\0=*]R!@(AM%PB[@A2I9>*K+,W+8&V1E9I0`==1QB0M,N
M43.#A=()?<RX+)9V2I%#XM(1,19IQ#BJ9B;_M8O8Q=0K(2SYC-,1H:((/3UC
MF2:^:!K-K#X&.2",,R0\=4CS.,I`H=37Y=4-D;P5+"9GUB70!2*RUTT#D3^^
M,R3;QM&K-QFFPE/.T9.M5(H]=4B,02"HZLH^<1@O-KP8=,R$"4F"=V9DD2OX
M922BPA?`5`$M4C-OH<<E'):3L21F4B:L>D@D`G]A84$@6C.,MS#C22A.,IX/
ME<`"0\(4XY5NQ&(NLD3'Y4>W7!I5ZBI8=)JP_MIAH50G5OPLC%%(9Y+=W+W=
MWJW=X-W=X?W=XEW>Y'W>XYW>YJW>Z+W>[MW>\,W>\OW>\XW>KQG7V;U$[E;?
M_$W?_AW?_]W?`#[@`C[>UZH0$"(<CY$7O8UNS1G<^<3`<AJJ%%[A%G[A&(ZI
M*G+?_?$`\M<?84.Y$)OA)%[B)KZH^GJW]>(AV,5L;7(KTQ*9.8+:Y&EF*2*U
MB&U>>S$I+(8AC)*0"\!3:%S6N*W382LXIRG)IV)2"K<F[B6W<*/.K<V4N+%X
M+08I-VN0'RV@.JTU"WU^7Y$;+J8I:\EM*HVVAW<L"\"NR(U?#NUF&FW6CX4;
M6WX<-M:L2W(E'GYX_F?NN)"U1$[-=#AC`$MT<!M3YQ\7YQF1X]8CT+L-.@;)
M.(6>YX<^$FKQ6'U^NH]55F2R/`:@:E[RFDSB`)9M$48"D!+46(J.$8R.-_+W
M&<VZ5@F[&&6R-*5.,J1JJA<E$Y*A&%0=P65N$9G^NS;T%6E$.*!^):HF>-&C
MKC0IRQW!5&&QZA?1C%HSR"?Q&4^<M%T.S5-Q&$2N-Z;Z&8SQFEK%;(-%)NHZ
M.X>QW"4!%E/4`/J1)@7^-'KBX3D$[1I2$.,&$Q&K'8'.$,,^S%,!3'%4U6#1
MUL4HK64R*K)$U^X1/<K-4\G%)B2!0]3&\.Z6+P0B>I6ZP@\B2!S>\.%-_L:D
MDT-B\ZB(/A$4I508&Q.M+A/T`TS<<A<X<YJ?CM^,4=OX#J\28).!,3L%EE5_
M`B!%U1%C@3.$(^1/DU#C8F1D@1^1?NL1<1<HKX-*@MR^RIL!GMWN]FC6)>P!
M_^5-<1<+DBH+\IKU\VD]7Q%A;@"U[K$%@1\`PB4+\.8-$?5+OR##XBD)A84+
MK_9!GQ]Q)`"3;B:%-"#X'NP<84]AP6$S>ZE7>C,BB_<+4:+'DUOBA1HM5Q!N
MZ9;3J:.^#1GS.';C'LDYW_"*EA]+=$9(#RKL6@`L4K7PMS0VV.W,E$:$[JQF
M0C@KTU/N9N]_/R[Z018R4UJBVGZ!%-G9790;_B,6$R$KQ^$D+U%W!$%)%)&\
M<PFN6P,S?)67FC*0DQPL`BF]J,LYKXDS#P060?G6A7Y(?=+V`H$B?;)48CT1
MII,F"6OYP9%:QP,0#"X,)%CP@@0(#10<&`#`X<,`!PX@8-"`@02,!C4:%%A!
M`H6!#3:.).@1HT6%$@\$>%C@@`&*%B%@E&!P`0((%R@<H""2Y$^@00U:,#`3
M(P0$%H3^M/A3@DL+#P86J/G@P`4%"QP@N(#`P4`+`"Q(&%`!P`4(!3:>74KR
MP`.6#QPF`&HR844#$EDZE!C3`4:02QD6-"NUK4$)#1`$".`U\.$+`902?)!`
MP@.+"_(6:/ER0<4'_A@K0`9JF>9)TFUI8JZHDK/#`0P--!R@H#+-T:EU%Y3@
M8$&!!@44_-T]L.)/"RQS7SA0<X&""PWR"E0\4,)9LVD/LC7(???B`'17!H#`
M6K/$A^DE&OC<(/1I^*Q15J0_WV+$^@P`#+"?W^)[C!Y8@`#8$@`0OI/\6^@E
MO0QX+3T`(CJ@(HPF*TXUC":@R<(+=Z-`@@3NL@B!V/*"T*6\#E!@/J,J[#"C
ML93*J+BFD!L@@,":ZXHZB01BX*KM+@C+@:NN(PPC")-4<DDFFW3R22BCE')*
M*JNT\DHLL]1R2RZ[!,"GD2RPX(`$#!A(QP;H8B"!!*!+0""=SI(@`+(._AI@
MK0X1`("N@PH(P`&44H10PA7],W2^,M=3E$$&&7,HH@@5?9.A]`:@"+[E.KS@
M3M[`U/134#6%LR!/+QR+)A$9..^EAB`J`$6N#JJ)QE$WZNV`K::JJ8(!+*"J
MS@$HH$`JJM+<E((5\;SP@`A!DDLRD@*T2*)6(X*)/J,>:XM9PRI8J:(R67*)
M@=!"_6E"@BR@R%QVVSW,M--*=?>G"ASX:\89=SN.I`H6"$`!I1+Z"JT#<B(X
MI\1T>E,I"M95MCB&%`B@`0`&E%<HD^13J578&&6OO@59XG@\!O[*=-Z-$D`@
M10,,1/EEF&6%C\.8;9V5H'QUJ_$G;=WU3K?]_B`:#^4/X\UO)F;OO0"NGFO>
M:*RFG99Z:J=SEO7"?:GN3NN:!02`(C\-XWILLLM^&<3\++MP9[)_-IM=N!K`
M\6VZZ[:;[JS;OKM=JZ+>^V_``^^0[;'=%OQPQ!-7'.6\"U_\<<@CE[PMPKDV
M?'+,,]?\[\8MW_QST$,GNW*M+Q?]=-13+Z[STE5W_778ER*=:M-CM_UVT5FG
M'7?>>Q=]=J&L<D#&!FX6LF2P&AA8H]I]=_[YP'4/Z@&*%I"`5^P)PE6A"PI`
MJE:"FH=^?/++!AXH!PI8H((*LL+*)PKDI%-.3K<N_W[\S98>*%_I9(XZ,P7I
M`@"PB@"[@R`$)E"!_@MD8`,=^$`(1E""$Z1@!2UX00QF4(,;/,V;(`8`"!Q`
M)`R(E9$*4R3OF`0!*F%A"UWX0AC&4(8SI&$-;7A#'.90ASOD80]]^$,@!G&'
M!B--311B$;IX92!F&4NPSJ*=_$51BIA32`*\QZL'](IZ[T.`5";DO2F&48R)
M&PL"`N,1I5@@,!_!F=_&^$8XQE&.<Z1C'>UX1SSF48][Y&,?_?A'0`92D(,D
M9/XJ0#.-N!%EAP2*(N?ER`N<K&:.M(`D8T9)2\(,DZ_;"9R859:!)(`"+*$+
M!0K0LB7:AB&&:4BL/(0NYNPG-Z)LR`*,$X"2+,`J`S!,",%'&@@,H":^_@)`
M`2;#DX9\Q0)E(@@$`(4``N2D6A<*YJX:`J0+&(@E.5EF`)<&`94%JRL+@210
MJAG):Q)$FR`4$C,'\@!PD@@D;")`.9F"2YV0<HEOBI!4J%<`PRR``C\Z@%(2
MA<C)>;`\8Q+(,A50@?A)`">;DHH#1EE)7-XFD^\2R$+1M4P(6``"^`P+02PJ
MF0K@,I@()8V.+&J!`7R%`KI<&I`D@$W+J%28,N53<81Y@9?ZKSQ2N<E`0JA.
M4]:4`G?"3(=^&M2:#/4"12484M5BE:.2L$-L68`:`0`2!R`E.@4]RRC/E-(+
MK*E.R?H<V[0"5"(&P%M>%`A7Q#)`B1:3I8=Q_NM7PCH0>X6/('95"@#(0A%[
MGLMX!9MJ8&AZ$&PV!Y_<60`1=Z,C@A1@GI,QHW6`M,RG!&D`94JL6XRGV6QR
M=HV?M8Q:KB,=R&ZU.TK!ID2--$!A::5(`_@14+&IN9WYBK;-M*4"O,>?]FW*
M0``8304*T%-]@<D"!!BNG:`UP"7:<K1RN4Y"\%D<`]S,N0.)51;5$ENT#&]B
M"N#.>9=U,XFV$[`1\>P[(6`6W^"2`0$P9H<P>Q"N+'.^-@42//'KK_A5YK=`
M*XB`(ME3!-1DM`X0BT![^UHS';6MH^IL!?BTD\DXD[D"%9)OZE<!;^YF9QWN
M*4QGQ5606,`!"G#B_D`,^UZP'&`T%%A>2=&;@.9N)584@.YNP@N6I"Q-;/&K
M;U>62"0@%\"Y14[-D864Y`<LF2TW)>^3R:03!_!6M@,!,5!G]8"!U6N%%S`3
MD=`"G*OT=L.A_(OR<K)4")2'O-#!YE)!4A-`=6A?":CS7P\I7!N?B2!^WI0$
MDN/?81:@S@_5B9@XQ>5L+EJ<6+'L92,]DZTP3"<$?C!E))/4^.+85Z!.,DAV
M4E\/FWHR#^COA=B"Y_*4ERH.V'&P9AK)"C-@J=E<7N8D"N002B1774G19;JH
M$UMB191G@F5QCEV!$.9EV214&U;>\FMI!Z9AW=[-L=.JDBUB!0'3]G9H5`(*
MY,QJRBK0D8Y$4KUN>'LXPH9>0`(FDQ5V[V;>T6EVK/#=7)7U)B?]\G<DU[37
GM@Q\A7F!@"V]U9=PIS4W`FJX@*!32)"'7.0C)WG)37[R@@0$```[
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>g70455_logo.gif
<DESCRIPTION>GRAPHIC
<TEXT>

begin 644 g70455_logo.gif
M1TE&.#EA"`%^`/<```````@("!`0$!@8&"$A(2DI*3$Q,3DY.4)"0DI*2E)2
M4EI:6F-C8VMK:W-S<WM[>X2$A(R,C)24E)R<G*6EI:VMK;6UM;V]O<;&QL[.
MSM;6UM[>WN?GY^_O[_?W]_______________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M_____________________RP`````"`%^```(_@`_"!Q(L*#!@P@3*ES(L*'#
MAQ`C2IQ(L:+%BQ@S:MS(L:/'CR!#BAQ)LJ3)DRA3JES)LJ7+ES!CRIQ)LZ;-
MFSASZMS)LZ?/GT"#"AU*M*C1HTB3*EW*M*G3IU"C2IU*M:K5C!PV7-UJE0(`
M``\B>M#*M6S+#1DB/(#PX$$$#1DX$/3Z=<!!!E_SZ@400"N&L&8#B\1P(,#>
MPP$*/%"PMT+!"GP+&/X:X,$`L!\,?!7,F:.'!Y,/BQYMH."`!!X^9,BKX0.'
M`*DG=YYM\7/HT;@/9R"(@2!K@1T$.MA,NSC$"K?U'JC06N`&"@X$Y"Z-\#?!
M!U\Q5'C0>Z"'[0<B_LAMFN$`6>,/%XBNG#HA!@*XQQNT/A#[7@H"-0Q`\$!S
MWZ4::`9`!.@YY`%\AQ%PWD(3)/>5`M5]U5Q]7W%'V0<>&#;>978AQ0%C>0%6
MH$('BK9`1!P@N)=\ODE8D'T"008`!A%\A18$7QV`%(Y[B3CB024F2)%Z/1Y$
MGT#8%3#096OI1<`#+!:%5Y$_(I3`>NT)5%YZNLWGXG4`*"D08VS5%252#>I%
M8)4&V=>EE@)"1&1>U`VD05[=#70`<1]@AP$&=3W5@%X3LBD0!Z,!YL&47SHD
M8%XLNEFG0)<!X-@'C&E%I`%O47!B4FX"4*BAC^K589!Y9=G0:GKYF,!D_@H2
M5,"L#0A$0(<?8.#`K`5$H*I1H8Y:I8R'75KC7K\R!.)7!$SD`0`.4!6LH0.I
MJ!=L`GVVUX(-O:;71!40D*Q3TU++ZF'1$K0L`!/1!4"S$C4P+KF$4OO!GJ+M
M!F9>%''@UKP=>3`!2!S`I0&W!VGP%W,-E0M1!AIH<.93SZ[7IE[C%:QO0M\I
M4$"8RTU,T`8/\.K`Q@7YBR`!BD$`'P,)9:"`M0J@;!`'T>T5@`((?U9I7@-<
MFM"Q+FKP\5[P#O3A;0,\`'!2Q.XEYKXN7EG7!0@AMQX$63OX;I1:YS:QU:(1
M,#&/N!D@'P<_%ZO0G;]YT/:#!*&-F,A)#2=:_KI4`X"`M7S9_(&[81X&,T$>
MS%GV>1F:VL`##J@XJ4!S#M#`NN_^RB@!^J:H9K8()G9T7@'@'>K`KNEE`,KN
M*H`!Y@,\;=3H>^5)86Y?L9[7`NTQ^A7J&*K(^P<;6"NN0$1G3E!Y7PG]`:,)
M#+0!T@3-63KB/^L[`0"K>T<V]PF%VMWV-CZ6%]\;W':\4[@)&VIDR>$*-U^J
M8J[OL@9DV7A>$&+JY$$<2,#4S@4`%F'N4E'CVT!8I:-L"0Y1>D%8?EKU`6(E
M+5NA61#Y0N24^1TF6:&*W0<TD)SN/&IJV=J+CB!8H1>MZ`.T>U<%DB6?4A7$
M@^^B5+T,`A_!&01?_E]1(&_T<K+08&L@R2L(JOCBE.3MY2#B&XC>Z$0\O:`0
M0X?YP!0Q0Y"H8>9]>5&,!)](D`WRRXM9.]Q!T**6M@4`(8#*C8^LA3C0Z`4!
M]!H-%/42G$,=9@/K>J-S[!A&Q]".;QEP@!'-$[S<[$P^T\,8AC!0JD?Z[UL/
M85YN)&@!W`%@8[5S#2'?Y:NG@)%?%SL2$"L40P/DC#*NRY(;':"`T%B.6P+S
MFEX.Y\0!6$LQA8JA@;[W+LGL18A:VHL!+*.Z@>S%EWD)#]Y`A9L]'HEP88HA
MT%QGI-'<DD3,Q`W,3@F`Y8Q+F`WYWG\PI#A<$<2#\"+@)P7B(,M-<RGD_F17
M*AM5Q6NM\BL)F";@`,`SB'`@`@/]R@5P"(#A)01SPC*(/%FTO_(5A(`BLA9U
M8AB]J^3S3*O\57*<"`#9Q?""$=G`H/:B@(KM,"%>]!%"UN5.@="N?^_42Y[B
MF)?=O*^!5LFGL&CW0V25<"$DO><`*#`O;$*H5`!0(T)<6I=YD;`#Z"2(M8YH
M)PI6ZW\L["E"-H#,HY`T+\ZSJ5Y^%:HWOF^=!<'```@TM_4]1DE[&H#MO+,7
M":CF,/@QB%=@AKE/%<0KI<&<V@9B1H`69%T^\N*)WFHS;>%4*9$4S64Q=)NT
MADI,4(76A#9PI>ME-B^<XXUFFG6N!"R(M*8:_HC='M0<#E2`,=>3VUX"ZKW<
M_55G"NC/:`C0TC[I#&72T0OO%/<5Q4S@`?BRZU)T>47F7J]%0<P6<\,XF0`(
M+7V(H5W^!`+5`LRM>7/QI`'.LX'D.FE6>0GL![:;EP1`X)]?^<YH-N;%<CXO
M-TV#"GY1*9#&7F@@%]"+\\+E37FE#'.J0QG;<!<`^2JMEJ(I0%HQ%('S?J5[
MUYE;`-28@4=5>(0'X!6O&#D0"J285UP3)>T"<``+YU$T>8(`KX`&5.-"ZF:+
MF95;)*BT"C2`5PJ(@`0A4V$-M`7),WQ;6R!``2(3A`-_<8`#_I40M$1L8AN(
MP%[ME3+<;'8A4ZQI_DDJ<$\R%V7`]'N(BLKJYCK'%3<RY9@DVU2``XS9(AJ@
M0)`3"K0"-""B=L:)A^/,$&*=>;[*K<AS=J5+3P(@:(GF27_S@D>&X.NZB$-,
M<#4`,`_`Y;[NM;0GU9QIFQ`:`,!#R+EL/$'<#4#%BU:UKGW8ZIG(<UL*09!4
M<ZKK8AO[,'GN-4VVJ+-YV8?7`CFVJEDVJP0\@`$3L$#)C(EG9>=$MZ1)UI1H
M_9A*ZWJI$HN(DP$';6_#!+S>M%V-]-J0[_QS5@=82ULTD%"N]BL""JB9NW5"
M`7,S0'9*!`T!UL204_YYX%`Y[7H4T&:<A69RX1,-HB'^E`R8N[G<69!M_AL`
M.(<RA*&BPHD&+,#QCGA.VB:"",HW[I+77+'E&$D<S".L;HW;I$0WQSE&2/;Q
MT1R@W0F9>4T\D-R@"STC%=#F>GJ%\*2+9L,"H0#61X(JIS]=(T[>-I*'G!&4
M$\!@!HN`@!A>DB6R^NL_03GNKOB=*6.@ZOD).P3>HL2!+I,M4$)<!(`X@!H_
MC0-8&T@%4@R8J*NX``Z8D,?@>^L")![NQ#9V>SP`X1$SA`*AS9&^7IV7&/MX
M/4Z[&8A2TUY"26`T#/<:TELN=]PYAM^X02GB2A5<1>Y2XJ,ARYPF`!?,Q>I0
M$`A-H'46H^08EG@EQ[Q!:I\;"$W&=92D4M_K_MM'XH4F6A`C)NHVT)XY77YP
M.I,+-M]U&)R^K_NU=JST;SAQR*E81:6C>M_\3=X]*UZL\9=#YL,L!M%8S9)K
M.D40;2-343-[.(=R#U<!<8(0;<-VOY4C!W$9DV-%/!1&!P%53C-0O*-S-<53
MEU80A#=_T^=S2<=R"+%%*-4V6!<!`3`J'#@R-WA1S/<!M]%1`L$`IC<0I2(T
M5+5UF*=T#_$7LW)>YX%#$3467M)<]`<T")%J`*`5M$-S,1);64<Z>$=[++@0
MMH$[?.-%6HA=8>)":W40S-8:6=@0J78I[@4A&X```6>$8'@89[A$81(YU(,D
M>W&&SN2!?<-%4_@;_K339A^0/*41*EHQ,T8S`5;&<4@8;,J5)8U%%DZ$AZ&&
M6@5!4LGBA!]`1_5V&[Y3&G!1`$;3)_-7B7#T0F@(+<ZA0@Z!0P4!?,,V0F1$
MB@W!;$`C%[95`!;``+;5BF&($"N5%]S2;#KD?P;!,(N(+`416C9C@AT2*@\1
M5@HV$`P@`)YR`%_8:ZYX$#%D.\"W)LS68V#2'.\S(1R`98BA*JNT)M8RB06A
M32AU`8JA@KJHAPOQ/F:C7?'(67MQ<`6A'KC";`D0:)H!(<0D0UD1*N+B`0BP
M6P_17YPH?>-H$,`G.KB1&!4`;T##'7]Q&7!E@EWB`0]9-JD1>L^W$&VC_GO\
MV%7^N!"^<Q@'X(M7J!JD-P"C4G"(L6!P5DZ7`GR4H8A:1#KV:(PUN1`R(S51
MAF*3,0"QIE)SXV==-F5\!R1ZYQ;"`C%P40$0$Q<.(9(.J)''R!!@61&FAI0Q
MH2*Y.).9]U(C,B<R*9=\U90%LD'\AY<%D992<5`/,'ON,@!N.7]4A596X3O_
MJ)1^J1`H6555<1L)P0$FMI1XJ9-15172J$0,<''AR(_4Q9F7V$6I%I>/.8"'
M06]4\4\TMA@QB9F/F5`F-Q5\F"`9F9K]="VYV1058(67U@"RJ9N8@QJ"$6A>
M>9BZR8.HY8++F6GS8Y#/V6L*<'33>9W8F9W:.;F=W-F=WOF=X!F>XCF>Y%F>
JYGF>Z)F>ZKF>[-F>[OF>\!F?\CF?]%F?]GF?^)F?^KF?_-F?"A$0```[
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>4
<FILENAME>g70455_small-logo.gif
<DESCRIPTION>GRAPHIC
<TEXT>

begin 644 g70455_small-logo.gif
M1TE&.#EA9``P`/<```````@("!`0$!@8&"$A(2DI*3$Q,3DY.4)"0DI*2E)2
M4EI:6F-C8VMK:W-S<WM[>X2$A(R,C)24E)R<G*6EI:VMK;6UM;V]O<;&QL[.
MSM;6UM[>WN?GY^_O[_?W]_______________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M____________________________________________________________
M_____________________RP`````9``P```(_@`_"!Q(L*#!@P@3*ES(L*'#
MAQ`C2IQ(L:+%BQ@S:MS(L:/'CQ\!@!R9T0.`DRA1&O@PP*0&#A]$DIRIL`+*
M"A\V"$@Y$(`&@0!P?J@0P>,&F@=1'B1P$F;,GS%C1M@`X,#&DP^0%D29X</*
M@@M.`L4`-":&`1Y]:B6H]*0'@V(_!"`@L`#+#PX*O+T*=2U*!Q\4R(2[%FA?
MI#;C/O`9=RA*"#V;`N4Y&0#=R@!6<KC)5H-)``H^0$#IE&,!I1\64P:P(*9(
MDPNH`O`0P?*'##(!)'!--^X`D;D'FXWJ.&?CJZ@7DQ4;-Z7,Q*H!''4M<,+)
MQ`<S_`X0N?GK`,(U_E)>_/,``-4&``18#L#!R>G@VP+XK?9T^`0GXT=>O/(D
MTZ)IH6;>7LZQ95M2!0Z$W4""H47=6*[A5M5(E($G%`!VG038!@'(UA4&`.!V
M%'YHG12:3:[M9I*$`:3GUF+<N?99`=;MM9%YWN6&4V+S";3925\E*-=)=GW@
M`7TRJ<:`5R(=4$`!1SD)V6DQ!J@>885E>1"/!1T0XV<*].4!!#LYEY*#6EI$
M65D":6#FFW"F>9%L/=Y%T(P//,#4E0@IT)6<:J94V@<_%J3:88!Z]-F;?Q+D
MIEH3$5!DH@QI\*0"TQWT*`$:9&``@`TQA2:E&#U:H&``+#D0!5RY=A)DSBEE
M1:AT9KI*ZD"/!I`74QR\M1B!SXGDYF4'^N<<6;]E95.CI#Z*Z`<%T/?!HW#9
MY2::S(67[:VXGG389^Z)I%JUJ36VK8&N*0#EK<ZBZQIWQVE06W#!/3C0CR(Q
ML("-B;8;&4SRJ2I2N!0H@%]0BQ&`P'&3"<7MM-YNA>$'YDU@W(0";?!`7QI`
M`%6GSX+W\$"?/4MA>-Q^YG!'#`BW6*8CQX>R>+,Y-O.MLJWL49D-C&P0>!;X
:+/301!=M]-%()ZWTTDPW[?334$>]44```#L_
`
end
</TEXT>
</DOCUMENT>
</SUBMISSION>
