<SUBMISSION>
<ACCESSION-NUMBER>0000891554-01-503344
<TYPE>S-8
<PUBLIC-DOCUMENT-COUNT>5
<FILING-DATE>20010703
<EFFECTIVENESS-DATE>20010703
<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>S-8
<ACT>33
<FILE-NUMBER>333-64464
<FILM-NUMBER>1674288
</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>S-8
<SEQUENCE>1
<FILENAME>d70517_forms-8.htm
<DESCRIPTION>REGISTRATION STATEMENT
<TEXT>

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     <!-- Project:        C:DTECH\70517.hep                                                -->
     <!-- Control Number: 70517                                                            -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Cheesecake factory                                               -->
     <!-- Project Name:   S-8                                                              -->
     <!-- Firm Name:      ADP                                                              -->
     <TITLE>Cheesecake Factory</TITLE>
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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2"><B>SECURITIES AND EXCHANGE
COMMISSION</B> <BR>Washington, D.C. 20549</FONT></FONT> </P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORM S-8<BR>REGISTRATION
STATEMENT<BR>UNDER<BR>THE SECURITIES ACT OF 1933</FONT></H1>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2"><B>THE CHEESECAKE FACTORY
INCORPORATED</B><BR>(Exact name of Registrant as specified in its charter)</FONT></FONT> </P>

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     <TD WIDTH="59%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Delaware</B></FONT></FONT></TD>
     <TD WIDTH="5%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="34%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>51-0340466</B>&nbsp;&nbsp;&nbsp; </FONT></FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(State or other jurisdiction</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">(I.R.S. Employer</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">of incorporation or organization)</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">Identification No.)</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>26950 Agoura Road,
Calabasas Hills, CA  91301 <BR>(818) 871-3000<BR>(Address, including zip
code, and telephone number, including <BR>area code, of registrant&#146;s principal executive
offices)</FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"><FONT SIZE="2"><B>THE CHEESECAKE FACTORY
INCORPORATED<BR>2001 Stock Option Plan</B> <BR>(Full title of the
plan)</FONT></FONT> </P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>GERALD W. DEITCHLE<BR>
Executive Vice President and Chief Financial
Officer <BR>26950 Agoura Road <BR>Calabasas Hills, CA
91301 <BR>(818) 871-3000 <BR>(Name, address and
telephone number of agent for service) </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Copy to: <BR>MARK A. BONENFANT, ESQ.<BR>
Buchalter, Nemer, Fields &amp; Younger <BR>a professional
corporation <BR>601 South Figueroa
Street, Suite 2400 <BR>Los Angeles, California
90017-5704 <BR>(213) 891-0700 </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>CALCULATION OF
REGISTRATION FEE </FONT></P>

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     <TH COLSPAN="2" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;Title of Securities<BR>&nbsp;&nbsp;&nbsp;to be Registered </FONT><HR WIDTH=100% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Amount to be<BR>Registered </FONT><HR WIDTH=100% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Proposed Maximum Offering<BR>Price Per Unit(1) </FONT><HR WIDTH=100% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Proposed Maximum Aggregate<BR>Offering Price </FONT><HR WIDTH=100% SIZE=1 NOSHADE></TH>
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     <TD WIDTH="24%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Common Stock,</FONT></TD>
     <TD WIDTH="5%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="27%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="5%" 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"></FONT></TD>
        <TD WIDTH="4%" 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"></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"></FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$.01 par value</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">1,492,873 shares&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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">$26.95</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">$40,232,928</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">$10,059.00</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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<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>Estimated solely for purpose of calculating the
registration fee pursuant to Rule 457(c) and is calculated based on the closing price of the Company&#146;s Common
Stock on the NASDAQ Stock Market on June 28, 2001. </FONT></TD>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART II</FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXPLANATORY
NOTE</FONT></H1>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Registration Statement relates to The Cheesecake Factory Incorporated 2001 Stock
Option Plan (the &#147;Plan&#148;) which (a) provides for 1,350,000 shares
(reflecting a 3 for 2 stock split on June 18, 2001) available for issuance upon
the exercise of stock options under the Plan, (b) provides that all nonqualified
stock options granted under the Plan must be issued with an exercise price equal
to the fair market value of the underlying shares on the date of grant, (c)
provides that, in the event the optionee is a 10% shareholder, the exercise
price of incentive stock options shall be at least 110% of the fair market value
on the pricing date, and (d) limits the number of options that may be granted to
an individual in any one fiscal year to 300,000 options. The Compensation
Committee of the Company&#146;s Board of Directors does not intend to grant any
new stock options under the 1992 Employee Performance Stock Option Plan,
therefore, the number of shares available for issuance upon the exercise of
stock options under the 2001 Stock Option Plan is increased by 142,873 shares
(reflecting a 3 for 2 stock split on June 18, 2001) which remain available for
grant under the 1992 Plan. </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Item 1. Incorporation of
Documents by Reference.</FONT></H2>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following documents heretofore filed or to be filed by the Registrant with the
Securities and Exchange Commission (the &#147;Commission&#148;) are incorporated
by reference herein: </FONT></P>

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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
The Company&#146;s Annual Report on Form 10-K as filed with the Commission for the fiscal
year ended January 2, 2001;</FONT></TD>
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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
The Company&#146;s Quarterly Report on Form 10-Q as filed with the Commission for the
quarter ended April 3, 2001;</FONT></TD>
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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
The Company&#146;s Registration Statement on Form 8-A, declared effective by the
Commission on September 17, 1992.</FONT></TD>
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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
documents subsequently filed by the Company pursuant to Sections&nbsp;13(a),
13(c), 14 and 15(d) of the Securities Exchange Act of 1934, as amended, prior to
the filing of a post-effective amendment which indicates that all securities
offered have been sold or which deregisters all securities then remaining unsold
shall be deemed to be incorporated by reference into this Registration Statement
and to be a part hereof from the date of filing of such documents. Any statement
contained herein or in a document all or a portion of which is incorporated or
deemed to be incorporated by reference herein shall be deemed to be modified or
superseded for purposes of this Registration Statement to the extent that a
statement contained herein or in any other subsequently filed document which
also is or is deemed to be incorporated by reference herein modifies or
supersedes such statement. Any such statement so modified or superseded shall
not be deemed, except as so modified or amended, to constitute a part of this
Registration Statement. </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Item 2.&nbsp;Interests of
Named Experts and Counsel.</FONT></H2>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
Applicable </FONT></P>



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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Item 3. &nbsp;Indemnification
of Directors and Officers.</FONT></H2>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
145 of the General Corporation Law of Delaware provides, in summary, that the
directors and officers of the Company may, under certain circumstances, be
indemnified by the Company against all expenses incurred by or imposed upon them
as a result of actions, suits or proceedings brought against them as such
directors and officers, or as directors or officers of any other organization at
the request of the Company, if they act in good faith and in a manner they
reasonably believe to be in or not opposed to the best interests of the Company,
and with respect to any criminal action or proceeding, have no reasonable cause
to believe their conduct was unlawful, except that no indemnification shall be
made against expenses in respect to any claim, issue or matter as to which they
shall have been adjudged to be liable to the Company unless and only to the
extent that the court in which such action or suit was brought shall determine
upon application that, despite the adjudication of liability but in view of all
the circumstances of the case, they are fairly and reasonably entitled to
indemnity for such expenses which such court shall deem proper. Section 145 of
the Delaware General Corporation Law also provides that directors and officers
of the Company are entitled to such indemnification by the Company to the extent
that such persons are successful on the merits or otherwise in defending any
such action, suit or proceeding. The Company&#146;s Bylaws provide for the
indemnification by the Company of officers and directors to the fullest extent
permitted by Section 145 of the Delaware General Corporation Law. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
102 of the Delaware General Corporation Law provides that a corporation, in its
Certificate of Incorporation, may eliminate the personal liability of its
directors to the corporation or its stockholders for monetary damages for breach
of fiduciary duty as a director, other than liability for (1)&nbsp;any breach of
the director&#146;s duty of loyalty to the corporation or its stockholders,
(2)&nbsp;acts or omissions not in good faith or which involve intentional
misconduct or a knowing violation of law, (3)&nbsp;any transaction from which
the director derived an improper personal benefit and (4)&nbsp;unlawful payment
of dividends or unlawful stock purchases or redemptions. The Company&#146;s
Certificate of Incorporation provides for the elimination of personal liability
of its directors as permitted by Section 102 of the Delaware General Corporation
Law. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company maintains a directors and officer&#146;s insurance policy for the
benefit of its directors and officers. </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Item 4. &nbsp;Exhibits.</FONT></H2>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Exhibits filed herewith are listed on the Exhibit Index. </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Item 5.&nbsp; Undertakings.</FONT></H2>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp; The
undersigned registrant hereby undertakes: </FONT></P>

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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;
To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:</FONT></TD>
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<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;
To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;</FONT></TD>
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<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;
To reflect in the prospectus any facts or events arising after the effective date of the
registration statement (or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represent a fundamental change in the information set
forth in the registration statement. </FONT></TD>
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<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;
To include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to such
information in the registration statement. </FONT></TD>
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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;
That, for the purpose of determining any liability under the Securities Act of 1933, each
such post-effective amendment shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof.</FONT></TD>
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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;
To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.</FONT></TD>
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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;
The undersigned registrant hereby undertakes that, for purposes of determining
any liability under the Securities Act of 1933, each filing of the
registrant&#146;s annual report pursuant to Section 13(a) or Section 15(d) of
the Securities Exchange Act of 1934 (and, where applicable, each filing of an
employee benefit plan&#146;s annual report pursuant to Section 15(d) of the
Securities Exchange Act of 1934) that is incorporated by reference in the
registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;
Insofar as indemnification for liabilities arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expense incurred
or paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question of whether such indemnification by it is against
public policy as expressed in the Act and will be governed by the final
adjudication of such issue. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES</FONT></H1>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act of 1933, the registrant certifies that
it has reasonable grounds to believe that it meets all of the requirements for
filing on Form S-8 and has duly caused this registration statement to be signed
on its behalf by the undersigned, thereunto duly authorized, in the City of
Calabasas Hills, State of California, on July 3, 2001. </FONT></P>


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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> THE CHEESECAKE FACTORY INCORPORATED,<BR>a Delaware Corporation<BR><BR>
<BR>By: /s/ David Overton<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
 David Overton<BR>Chairman of the Board, President<BR>and Chief Executive Officer</FONT></TD>
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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act of 1933, this registration statement
has been signed by the following persons in the capacities and on the date
indicated. </FONT></P>


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     <TH colspan=2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name</FONT>
     <HR WIDTH=30% SIZE=1 NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Title</FONT><HR WIDTH=50% SIZE=1 NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Date</FONT><HR WIDTH=50% SIZE=1 NOSHADE></TH>
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<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ </FONT></TD>
<TD WIDTH=42% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Overton
<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>David Overton </FONT></TD>
<TD WIDTH=30%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chairman of the Board,<BR>President and Chief Executive<BR>Officer</FONT></TD>
<TD WIDTH=25% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>July 3, 2001</FONT></TD>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ </FONT></TD>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gerald W. Deitchle
<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>Gerald W. Deitchle   </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Executive Vice President, and<BR>Chief Financial Officer</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>July 3, 2001</FONT></TD>
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<TD WIDTH=42% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Thomas L. Gregory
<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>Thomas L. Gregory</FONT></TD>
<TD WIDTH=30%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT></TD>
<TD WIDTH=25% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>July 3, 2001</FONT></TD>
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<TD WIDTH=42% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Jerome I. Kransdorf
<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>Jerome I. Kransdorf</FONT></TD>
<TD WIDTH=30%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT></TD>
<TD WIDTH=25% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>July 3, 2001</FONT></TD>
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<TD WIDTH=42% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Wayne H. White
<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>Wayne H. White</FONT></TD>
<TD WIDTH=30%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Director</FONT></TD>
<TD WIDTH=25% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>July 3, 2001</FONT></TD>
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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>4 </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT INDEX</FONT></H1>

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     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exhibit<BR>Number</FONT><HR WIDTH=50% SIZE=1 NOSHADE></TH>
     <TH COLSPAN="1"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exhibit</FONT><HR WIDTH=10% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4</FONT></TD>
        <TD WIDTH="5%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="70%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">The Cheesecake Factory Incorporated 2001 Stock Option Plan</FONT></TD>
     <TD WIDTH="12%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5</FONT></TD>
        <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">Opinion of Buchalter, Nemer, Fields &amp; Younger, a Professional Corporation</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">23.1</FONT></TD>
        <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">Auditor&#146;s Consent of Independent Accountant</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">23.2</FONT></TD>
        <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">Legal Counsel Consent is contained in Exhibit 5</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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<DOCUMENT>
<TYPE>EX-4
<SEQUENCE>2
<FILENAME>d70517_ex-4.htm
<DESCRIPTION>STOCK OPTION PLAN
<TEXT>

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     <!-- Control Number: 70517                                                            -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Cheesecake factory                                               -->
     <!-- Project Name:   S-8                                                              -->
     <!-- Firm Name:      ADP                                                              -->
     <TITLE>Exhibit 4</TITLE>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 4</FONT></H1>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THE CHEESECAKE
FACTORY INCORPORATED<BR>2001 STOCK OPTION PLAN </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 1<BR>General </FONT></H1>

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<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>

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<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>

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<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>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 2<BR>Stock Options </FONT></H1>

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<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>

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<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>

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<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>

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<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>
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<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>
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<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>

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<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>
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<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>
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<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>
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<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>
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<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>

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<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>

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<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>
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<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>
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<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>
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<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>

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<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>
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<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>

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<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>
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<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>
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<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>
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<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>
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<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>
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<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 communicated to the Participant at the time that such
offer is made. </FONT></FONT> </P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 3<BR>Operation
and Administration </FONT></H1>

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<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>

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<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>

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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>

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<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>
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<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>
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<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>

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<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>
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<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>
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<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>
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<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>

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<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>

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<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>

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<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>

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<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>

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<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>

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<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>

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<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>
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<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>
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<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>
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<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>

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<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>

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<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>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 4<BR>Committee </FONT></H1>

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<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>

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<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>
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<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>
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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>6 </FONT></P>

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<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>
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<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>
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<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>
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<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>
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<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>

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<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>

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<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>

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<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>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 5
<BR>Amendment and Termination </FONT></H1>

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<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>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 6<BR>Change in
Control </FONT></H1>

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<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>

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<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>

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<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>

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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 7<BR>Governing Law </FONT></H1>

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<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>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 8<BR>Defined Terms </FONT></H1>

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<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>

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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;
<I>1992 Plan</I>. The term &#147;1992 Plan&#148; has the meaning set forth in Section 3.2(a).</FONT></TD>
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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;
<I>Board</I>. The term &#147;Board&#148; shall mean the Board of Directors of the Company.</FONT></TD>
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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;
<I>Cause</I>. 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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>9 </FONT></P>

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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<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>
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<DOCUMENT>
<TYPE>EX-5
<SEQUENCE>3
<FILENAME>d70517_ex-5.htm
<DESCRIPTION>OPINION
<TEXT>

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     <!-- Control Number: 70517                                                            -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Cheesecake factory                                               -->
     <!-- Project Name:   S-8                                                              -->
     <!-- Firm Name:      ADP                                                              -->
     <TITLE>Exhibit 5</TITLE>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 5</FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>June 28, 2001 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Securities and Exchange
Commission<BR>Division of Corporate Finance<BR>450 Fifth Street, N.W. <BR>Washington, D.C. 20549 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Attn: Office of Applications and
Reports Services </FONT></P>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></P>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Re: The Cheesecake Factory
Incorporated <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration Statement on Form S-8 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gentlemen: </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have acted as counsel to The Cheesecake Factory Incorporated, a Delaware
corporation (the &#147;Company&#148;), in connection with the registration of
1,492,873 shares of common stock, $.01 par value (the &#147;Shares&#148;) with
the Securities and Exchange Commission (the &#147;Commission&#148;) under the
Securities Act of 1933, as amended, (the &#147;1933 Act&#148;), pursuant to a
registration statement on Form S-8 (the &#147;Registration Statement&#148;). The
Shares are registered on behalf of the Company and will be issued pursuant to
the 2001 Stock Option Plan (the &#147;Plan&#148;). </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
opinion is being delivered in accordance with the requirements of Item 601(b)
(5) (i) of Regulation S-K under the 1933 Act. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
our capacity as counsel to the Company, we have reviewed such documents and made
such inquiries as we have reasonably deemed necessary to enable us to render the
opinion expressed below. In all such reviews, we have made certain customary
assumptions such as the genuineness of all signatures, the authenticity of all
documents submitted to us as originals, the lack of any undisclosed
modifications, waivers, or amendments to any documents reviewed by us and the
conformity to authentic original documents of all documents submitted to us as
conformed or photostatic copies. For purposes of rendering this opinion, we have
investigated such questions of law as we have deemed necessary. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
the basis of the foregoing, and in reliance thereon and subject to the
assumptions, qualifications, exceptions and limitations expressed herein, we are
of the opinion that when the Shares are issued in accordance with the terms of
the Plan, the Shares will be duly authorized, legally issued, fully paid and
non-assessable. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
opinion is limited to the present laws of the State of California and of the
United States of America, and the corporate law of the State of Delaware. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
opinion is solely for your information in connection with the offer and sale of
the shares by the Company, and is not, without the prior written consent of this
firm, to be quoted in full or in part or otherwise referred to in any documents
nor to be filed with any governmental agency or other persons, other than with
the Commission and various state securities administrators in connection with
the qualification of the Shares, to which reference and filings we hereby
consent. </FONT></P>

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     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="44%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Very truly yours,</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD><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"></FONT></TD><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">BUCHALTER, NEMER, FIELDS &amp; YOUNGER</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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<TYPE>EX-23.1
<SEQUENCE>4
<FILENAME>d70517_ex23-1.htm
<DESCRIPTION>AUDITOR'S CONSENT
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     <!-- Control Number: 70517                                                            -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Cheesecake factory                                               -->
     <!-- Project Name:   S-8                                                              -->
     <!-- Firm Name:      ADP                                                              -->
     <TITLE>Exhibit 23.1</TITLE>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 23.1</FONT></H1>


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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>CONSENT OF INDEPENDENT
ACCOUNTANTS </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
hereby consent to the incorporation by reference in this Registration Statement on Form
S-8 of our report dated February 2, 2001 relating to the consolidated financial
statements of The Cheesecake Factory Incorporated, which appears in The Cheesecake
Factory Incorporated&#146;s Annual Report on Form 10-K for the fiscal year ended January 2,
2001. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PricewaterhouseCoopers LLP </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Los Angeles, California <BR>June 29, 2001 </FONT></P>


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<TYPE>EX-23.2
<SEQUENCE>5
<FILENAME>d70517_ex23-2.htm
<DESCRIPTION>LEGAL COUNSEL CONSENT
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     <!-- Control Number: 70517                                                            -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Cheesecake factory                                               -->
     <!-- Project Name:   S-8                                                              -->
     <!-- Firm Name:      ADP                                                              -->
     <TITLE>Exhibit 23.2</TITLE>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 23.2</FONT></H1>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consent
of Legal Counsel is contained in Exhibit 5. </FONT></P>
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