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<SEC-DOCUMENT>0000950137-05-010814.txt : 20050829
<SEC-HEADER>0000950137-05-010814.hdr.sgml : 20050829
<ACCEPTANCE-DATETIME>20050829154950
ACCESSION NUMBER:		0000950137-05-010814
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20050829
FILED AS OF DATE:		20050829
DATE AS OF CHANGE:		20050829
EFFECTIVENESS DATE:		20050829

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			STRATTEC SECURITY CORP
		CENTRAL INDEX KEY:			0000933034
		STANDARD INDUSTRIAL CLASSIFICATION:	MOTOR VEHICLE PARTS & ACCESSORIES [3714]
		IRS NUMBER:				391804239
		STATE OF INCORPORATION:			WI
		FISCAL YEAR END:			0627

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25150
		FILM NUMBER:		051055448

	BUSINESS ADDRESS:	
		STREET 1:		3333 WEST GOOD HOPE ROAD
		CITY:			MILWAUKEE
		STATE:			WI
		ZIP:			53209
		BUSINESS PHONE:		4142473333

	MAIL ADDRESS:	
		STREET 1:		3333 W GOOD HOPE ROAD
		CITY:			MILWAUKEE
		STATE:			WI
		ZIP:			53209
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>c98032ddef14a.htm
<DESCRIPTION>DEFINITIVE NOTICE AND PROXY
<TEXT>
<HTML>
<HEAD>
<TITLE>def14a</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>SCHEDULE 14A</B></DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 0pt"><B>(Rule&nbsp;14a-101)</B></DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 0pt"><B>INFORMATION REQUIRED IN PROXY STATEMENT<BR>
SCHEDULE 14A INFORMATION<BR>
Proxy Statement Pursuant to Section&nbsp;14(a) of the Securities<BR>
Exchange Act of 1934</B></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#254;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Filed by the Registrant</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Filed by a Party other than the Registrant</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Check the appropriate box:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preliminary Proxy Statement</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Confidential, for Use of the Commission Only (as permitted by Rule&nbsp;14a-6(e)(2))</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#254;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Definitive Proxy Statement</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Definitive Additional Materials</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT face="Wingdings">&#111;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Soliciting Material Pursuant to &#167;240.14a-12</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>STRATTEC SECURITY CORPORATION</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 0pt">(Name of Registrant as Specified in Its Charter, if Other Than the Registrant)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Registrant<BR>
(Name of Person(s) Filing Proxy Statement)</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="5" align="left">Payment of filing fee (Check the appropriate box):</TD>
</TR>
<TR valign="bottom">
    <TD><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">No fee required.</TD>
</TR>
<TR valign="bottom">
    <TD><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(1) and 0-11.</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(1)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title of each class of securities to which transaction applies:</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(2)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Aggregate number of securities to which transaction applies:</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(4)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Proposed maximum aggregate value of transaction:</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(5)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Total fee paid:</TD>
</TR>
<TR valign="bottom">
    <TD><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Fee paid previously with preliminary materials:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Check box if any part of the fee is offset as provided by Exchange Act Rule&nbsp;0-11(a)(2) and
identify the filing for which the offsetting fee was paid previously. Identify the previous
filing by registration statement number, or the Form or Schedule and the date of its filing.</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(1)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amount previously paid:</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(2)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form, Schedule or Registration Statement No.:</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(3)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Filing Party:</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(4)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date Filed:</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<IMG src="c98032dc9803200.gif" alt="(LOGO)">
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>STRATTEC SECURITY CORPORATION</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>3333 WEST GOOD HOPE ROAD</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>MILWAUKEE, WISCONSIN 53209</B>
</DIV>

<!-- link1 "Notice of Annual Meeting of Shareholders" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Notice of Annual Meeting of Shareholders</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Annual Meeting of Shareholders of STRATTEC SECURITY
CORPORATION, a Wisconsin corporation (the
&#147;Corporation&#148;), will be held at the Manchester East
Hotel, 7065&nbsp;North Port Washington Road, Milwaukee,
Wisconsin 53217, on Tuesday, October&nbsp;4, 2005, at
8:00&nbsp;a.m. local time, for the following purposes:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    1.&nbsp;To elect one director, to serve for a three-year term.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    2.&nbsp;To consider and act on a proposal to amend and restate
    the STRATTEC SECURITY CORPORATION Stock Incentive Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    3.&nbsp;To take action with respect to any other matters that
    may be properly brought before the meeting and that might be
    considered by the shareholders of a Wisconsin corporation at
    their Annual Meeting.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 15pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    By order of the Board of Directors</TD>
</TR>

<TR>
    <TD style="font-size: 30pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    PATRICK J. HANSEN,</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Secretary</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Milwaukee, Wisconsin <BR>
 August&nbsp;29, 2005
</DIV>
<DIV style="width: 100%; border: 1px solid black; padding: 12px;">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Shareholders of record at the close of business on
August&nbsp;19, 2005 are entitled to vote at the meeting. Your
vote is important to ensure that a majority of the stock is
represented. Please complete, sign and date the enclosed proxy
card and return it promptly in the enclosed envelope whether or
not you plan to attend the meeting in person. If you later find
that you may be present at the meeting or for any other reason
desire to revoke your proxy, you may do so at any time before it
is voted.</B>
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">Notice of Annual Meeting of Shareholders</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">Proxy Statement for the 2005 Annual Meeting of Shareholders To Be Held on October 4, 2005</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">PROPOSAL 1: ELECTION OF DIRECTOR</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">PROPOSAL 2: APPROVAL OF AMENDED AND RESTATED STOCK INCENTIVE PLAN</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">DIRECTORS&#146; MEETINGS AND COMMITTEES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">CORPORATE GOVERNANCE MATTERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">AUDIT COMMITTEE MATTERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">COMPENSATION OF DIRECTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#008">EXECUTIVE OFFICERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">SECURITY OWNERSHIP</A></TD></TR>
<TR><TD colspan="9"><A HREF="#010">SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#011">PERFORMANCE GRAPH</A></TD></TR>
<TR><TD colspan="9"><A HREF="#012">COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#013">EXECUTIVE COMPENSATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#014">ANNUAL REPORT TO THE SECURITIES AND EXCHANGE COMMISSION ON FORM 10-K</A></TD></TR>
<TR><TD colspan="9"><A HREF="#015">SHAREHOLDER PROPOSALS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#016">OTHER MATTERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#017">APPENDIX A</A></TD></TR>
<TR><TD colspan="9"><A HREF="#018">APPENDIX B</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<IMG src="c98032dc9803200.gif" alt="(LOGO)">
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>STRATTEC SECURITY CORPORATION</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>3333 WEST GOOD HOPE ROAD</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>MILWAUKEE, WISCONSIN 53209</B>
</DIV>

<!-- link1 "Proxy Statement for the 2005 Annual Meeting of Shareholders To Be Held on October 4, 2005" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Proxy Statement for the 2005 Annual Meeting of
Shareholders</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>To Be Held on October&nbsp;4, 2005</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This Proxy Statement is furnished in connection with the
solicitation by the Board of Directors of STRATTEC SECURITY
CORPORATION of proxies, in the accompanying form, to be used at
the Annual Meeting of Shareholders of the Corporation to be held
on October&nbsp;4, 2005 and any adjournments thereof. Only
shareholders of record at the close of business on
August&nbsp;19, 2005 will be entitled to notice of and to vote
at the meeting. There will be no presentation regarding the
Corporation&#146;s operations at the Annual Meeting of
Shareholders. The only matters to be discussed are matters set
forth in the Proxy Statement for the 2005 Annual Meeting of
Shareholders and such other matters as are properly raised at
the Annual Meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The shares represented by each valid proxy received in time will
be voted at the meeting and, if a choice is specified in the
proxy, it will be voted in accordance with that specification.
If no instructions are specified in a signed proxy returned to
the Corporation, the shares represented thereby will be voted in
<B>FAVOR </B>of the election of the director listed in the
enclosed proxy card and in <B>FAVOR </B>of the proposal to amend
and restate the STRATTEC SECURITY CORPORATION Stock Incentive
Plan (the &#147;Stock Incentive Plan&#148;). If any other
matters are properly presented at the Annual Meeting, including,
among other things, consideration of a motion to adjourn the
meeting to another time or place, the individuals named as
proxies and acting thereunder will have the authority to vote on
those matters according to their best judgment to the same
extent as the person delivering the proxy would be entitled to
vote. If the Annual Meeting is adjourned or postponed, a proxy
will remain valid and may be voted at the adjourned or postponed
meeting. As of the date of printing of this Proxy Statement, the
Corporation does not know of any other matters that are to be
presented at the Annual Meeting other than the election of one
director and the proposal to amend and restate the Stock
Incentive Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shareholders may revoke proxies at any time to the extent they
have not been exercised. The cost of solicitation of proxies
will be borne by the Corporation. Solicitation will be made
</DIV>

<P align="center" style="font-size: 10pt;">

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
primarily by use of the mails; however, some solicitation may be
made by employees of the Corporation, without additional
compensation therefor, by telephone, by facsimile or in person.
Only shareholders of record at the close of business on
August&nbsp;19, 2005 will be entitled to notice of and to vote
at the meeting. On the record date, the Corporation had
outstanding 3,745,276&nbsp;shares of Common Stock entitled to
one vote per share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A majority of the votes entitled to be cast with respect to each
matter submitted to the shareholders, represented either in
person or by proxy, shall constitute a quorum with respect to
such matter. Approval of each matter specified in the notice of
the meeting requires the affirmative vote of a majority, or in
the case of the election of the director a plurality, of the
shares represented at the meeting. Abstentions and broker
non-votes (<U>i.e.</U>, shares held by brokers in street name,
voting on certain matters due to discretionary authority or
instructions from the beneficial owners but not voting on other
matters due to lack of authority to vote on such matters without
instructions from the beneficial owner) will count toward the
quorum requirement but will not count toward the determination
of whether such director is elected or such matters in the
notice of meeting are approved. The Inspector of Election
appointed by the Board of Directors will count the votes and
ballots.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Corporation&#146;s principal executive offices are located
at 3333&nbsp;West Good Hope Road, Milwaukee, Wisconsin 53209. It
is expected that this Proxy Statement and the form of Proxy will
be mailed to shareholders on or about August&nbsp;29, 2005.
</DIV>

<!-- link1 "PROPOSAL 1: ELECTION OF DIRECTOR" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PROPOSAL&nbsp;1:</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>ELECTION OF DIRECTOR</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
It is intended that shares represented by proxies in the
enclosed form will be voted for the election of the nominee in
the following table to serve as a director. The Board of
Directors of the Corporation is divided into three classes, with
the term of office of each class ending in successive years. One
director is to be elected at the Annual Meeting, to serve for a
term of three years expiring in 2008, and three directors will
continue to serve for the terms designated in the following
schedule. As indicated below, the individual nominated by the
Board of Directors is an incumbent director. The Corporation
anticipates that the nominee listed in this Proxy Statement will
be a candidate when the election is held. However, if for any
reason the nominee is not a candidate at that time, proxies will
be voted for any substitute nominee designated by the
Corporation (except where a proxy withholds authority with
respect to the election of the director).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Board of Directors Recommendation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>The Board of Directors recommends that shareholders vote in
FAVOR of the election of Michael J. Koss as a director of the
Corporation.</B>
</DIV>

<P align="center" style="font-size: 10pt;">2

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="79%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Director</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name, Principal Occupation for Past Five Years and Directorships</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Age</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Since</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Nominee for election at the Annual Meeting (Class of
    2008):</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>MICHAEL J. KOSS</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1995</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    President and Chief Executive Officer of Koss Corporation
    (manufacturer and marketer of high fidelity stereophones for the
    international consumer electronics market) since 1989. Director
    of Koss Corporation.</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Incumbent Directors (Class of 2006):</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>HAROLD M. STRATTON&nbsp;II</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1994</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Chairman, President and Chief Executive Officer of the
    Corporation since October 2004. Chairman and Chief Executive
    Officer of the Corporation from February 1999 to October 2004.
    President and Chief Executive Officer of the Corporation from
    February 1995 to February 1999. Director and a member of the
    Compensation Committee of Smith Investment Company and a
    director of Twin Disc Inc.</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>ROBERT FEITLER</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1995</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Chairman of the Executive Committee of the Board of Directors of
    Weyco Group, Inc. (manufacturer, purchaser and distributor of
    men&#146;s footwear) since April 1996. Director of Weyco Group,
    Inc.</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><I>Incumbent Director (Class of 2007):</I></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>FRANK J. KREJCI</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1995</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    President of Wisconsin Furniture, LLC (a manufacturer of custom
    furniture) since June 1996.</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<!-- link1 "PROPOSAL 2: APPROVAL OF AMENDED AND RESTATED STOCK INCENTIVE PLAN" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PROPOSAL&nbsp;2:</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>APPROVAL OF AMENDED AND RESTATED STOCK INCENTIVE PLAN</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Purpose and Effect of Proposal</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Proposed Adoption.</I> Subject to shareholder approval, the
Board of Directors of the Corporation has approved amending and
restating the STRATTEC SECURITY CORPORATION Stock Incentive Plan
(the &#147;Stock Incentive Plan&#148;) to allow for grants of
restricted stock under the terms of the Stock Incentive Plan, to
reduce the number of leveraged stock options (LSOs) that may be
granted in any year from 80,000 to 40,000 and to increase the
number of shares of Common Stock authorized for issuance under
the Stock Incentive Plan from 1,600,000 to 1,700,000. If the
proposal is approved at the Annual Meeting by the shareholders,
then the Corporation will be able to grant stock options, stock
appreciation rights and shares of restricted stock under the
Stock Incentive Plan. The Stock Incentive Plan was last amended
in 2003.
</DIV>

<P align="center" style="font-size: 10pt;">3

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Purpose of the Amended and Restated Stock Incentive Plan.</I>
The Corporation recognizes the importance of attracting,
retaining and motivating those persons who make (or are expected
to make) important contributions to the Corporation by providing
such persons with performance-based incentive compensation in a
form which relates the financial reward to an increase in the
value of the Corporation to its shareholders. The Board of
Directors believes that the Stock Incentive Plan is critically
important to the furtherance of this objective. The Board of
Directors also believes that, through the Stock Incentive Plan,
the Corporation is able to enhance the prospects for its
business activities and objectives and more closely align the
interests of officers and other key employees with those of
shareholders by offering officers and other key employees the
opportunity to participate in the Corporation&#146;s future
through proprietary interests in the Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The proposed amended and restated Stock Incentive Plan reflects
changes that the Board of Directors plans to implement beginning
in fiscal 2006 in the Corporation&#146;s equity compensation
program. Under the amended and restated Stock Incentive Plan,
the number of LSOs authorized for issuance in any year will be
reduced from 80,000 to 40,000 and up to 10,000&nbsp;shares of
restricted stock may be issued each year. The number of LSOs
granted on August&nbsp;19, 2005 were reduced to 40,000, and the
Board plans to grant 10,000&nbsp;shares of restricted stock
following the Annual Meeting if the amended and restated Stock
Incentive Plan is approved by shareholders at the Annual
Meeting. A restricted stock award is a grant of shares of Common
Stock that vests over time or upon achievement of performance
criteria. As the restricted stock award vests, employees receive
shares of Common Stock that they own outright. In the light of
the current economic environment, the Corporation&#146;s Board
of Directors believes that restricted stock awards are a good
way to provide significant equity compensation to officers and
key employees that is less subject to market volatility. In
addition, the Corporation expects restricted stock awards to
result in less compensation expense under the Financial
Accounting Standard Board&#146;s statement, &#147;Share-Based
Payment&#148; (FAS&nbsp;123R), than stock options exercisable
for the same number of shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The proposed amended and restated Stock Incentive Plan also
increases the number of shares of Common Stock authorized for
issuance under the Stock Incentive Plan from 1,600,000 to
1,700,000. As of August&nbsp;19, 2005, including 40,000 LSOs
granted to 12 officers and key employees on August&nbsp;19,
2005, and absent shareholder approval of the proposed amended
and restated Stock Incentive Plan, there would be only
207,303&nbsp;shares of Common Stock remaining available for
issuance for future awards under the Stock Incentive Plan. The
Board of Directors believes that it is both necessary and
desirable to increase from 1,600,000 to 1,700,000 the aggregate
number of shares of Common Stock available for issuance or
transfer under the Stock Incentive Plan.
</DIV>

<P align="center" style="font-size: 10pt;">4

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Equity Compensation Plan Information</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table summarizes share information, as of
July&nbsp;3, 2005, for the Stock Incentive Plan.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="36%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of Common</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of Common</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares to be Issued</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Weighted-Average</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares Available for</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Upon Exercise of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercise Price of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Future Issuance</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Outstanding Options,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Outstanding Options,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Under Equity</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Plan Category</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Warrants, and Rights</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Warrants and Rights</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Compensation Plans</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity compensation plans approved by shareholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>281,860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>54.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>247,303</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity compensation plans not approved by shareholders</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>281,860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>54.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>247,303</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Description of the Stock Incentive Plan</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following description of the proposed amended and restated
Stock Incentive Plan is qualified in its entirety by reference
to the copy of the proposed amended and restated Stock Incentive
Plan, which is attached as Appendix&nbsp;A to this Proxy
Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>General.</I> The Stock Incentive Plan authorizes the
Compensation Committee (the &#147;Committee&#148;) to grant to
officers and other key employees of the Corporation, its
subsidiaries and affiliates (excluding members of the Committee
and any non-employee directors) stock incentive awards.
Approximately 50&nbsp;employees are participants in the Stock
Incentive Plan. The Committee administers the Stock Incentive
Plan and has complete discretion, subject to the terms of the
Stock Incentive Plan, to determine, among other things, which
officers and key employees will receive awards, the type, number
and frequency of and the number of shares subject to such
awards, and, to the extent not otherwise expressly provided in
the Stock Incentive Plan, the terms and conditions of the awards.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Awards.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1<I>.&nbsp;Stock Options.</I> Options granted under the Stock
Incentive Plan may be incentive stock options
(&#147;ISOs&#148;), as defined under and subject to
Section&nbsp;422 of the Internal Revenue Code (the
&#147;Code&#148;), or non-qualified stock options
(&#147;NSOs&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The options will be exercisable at such times and subject to
such terms and conditions as the Committee may determine. All
options will expire no later than ten years from the date of
grant in the case of ISOs and ten years and one day from the
date of grant in the case of NSOs. Generally, options will
expire upon an optionee&#146;s termination of employment for
cause, one year following the termination of employment due to
death, three years following termination due to retirement or
disability, or three months after the termination of employment
for any other
</DIV>

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<DIV align="left" style="font-size: 10pt;">
reason; provided, however, that options will expire prior to
said times if and at such time that the original option exercise
term otherwise expires. Generally, options may be exercised only
to the extent exercisable on the date of termination, death,
disability or retirement. To the extent options are ISOs, they
will retain such status, in general, only if exercised within
three months following termination of employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The option price for any option will not be less than 100% of
the fair market value of the Common Stock as of the date of
grant and will be paid in cash, or, in certain circumstances,
shares of Common Stock (including restricted stock), at the time
of exercise. When using shares of Common Stock in payment of the
exercise price, an optionee may receive, in one transaction or a
series of essentially simultaneous transactions, without making
any out-of-pocket cash payment, shares equivalent in value to
the excess of the fair market value of the shares subject to
exercised option rights over the exercise price specified for
such shares in the option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon notice of exercise of a stock option, the Committee may, at
its sole discretion, elect to cash out all of any portion of
such option by paying a per share amount equal to the excess of
the fair market value of the Common Stock on the exercise date
over the option exercise price. Such payment may be in cash or
Common Stock, which stock may, in certain circumstances, take
the form of restricted stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stock options are not transferable except by will or the laws of
descent and distribution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shares of Common Stock available for distribution by the
Committee under the Stock Incentive Plan may also be issued
pursuant to the LSO program. LSOs granted under the Stock
Incentive Plan may be either ISOs or NSOs. The LSOs may be
exercisable no earlier than three nor more than five years from
the date of grant. The exercise price of LSOs shall be the
product of 90% of fair market value on the date of grant,
multiplied by the sum (taken to the 5th&nbsp;power) of
(a)&nbsp;1, plus (b)&nbsp;the Estimated Annual Growth Rate, but
in no event may the exercise price be less than fair market
value on the date of grant. The Estimated Annual Growth Rate is
intended to represent annual percentage stock appreciation at
least in the amount of the Corporation&#146;s cost of capital
(with due consideration for dividends paid, risk and
illiquidity) and equals the average daily closing 10&nbsp;year
U.S.&nbsp;Treasury note yield rate for the month of April
immediately preceding the relevant plan year, plus 2%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.&nbsp;<I>Stock Appreciation Rights.</I> The Committee may also
award stock appreciation rights (&#147;SARs&#148;) under the
plan. SARs may be granted in conjunction with all or part of any
stock option, will be exercisable only at such times as and to
the extent the underlying stock option is exercisable and upon
exercise is paid in cash, Common Stock or a combination thereof,
at the discretion of the Committee, in a per share amount equal
to the excess of the fair market value of the Common Stock on
the exercise date over the related option exercise price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3.&nbsp;<I>Restricted Stock.</I> Restricted stock may be granted
contingent upon the attainment of specified performance goals or
such other factors as the Committee may determine and, during
the period of restriction, the holder of restricted stock may
not sell, transfer, pledge or assign the restricted stock. In
general, except for an award of restricted stock in lieu of cash
compensation,
</DIV>

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<DIV align="left" style="font-size: 10pt;">
the period of restriction for any grant of restricted stock will
be based on the recipient&#146;s continued employment with the
Corporation and will not be less than three years. Restricted
stock may vest immediately or in installments over time
following the minimum period of restriction, as determined by
the Committee. The maximum number of shares of restricted stock
that may be granted to all recipients in any year is
10,000&nbsp;shares and the maximum number of shares of
restricted stock that may be granted to any one individual in
any year is 20% of the total number of shares of restricted
stock granted in that year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Change in Control Provisions.</I> Upon the occurrence of a
&#147;change in control&#148; of the Corporation, as defined in
the Stock Incentive Plan, any outstanding SARs and stock options
which are not then exercisable will become fully exercisable and
vested. Likewise, the restrictions applicable to restricted
stock will lapse and such shares and awards will be free of all
restrictions and deemed fully vested under the terms of the
original grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon a change in control, optionees may elect to surrender all
or any part of their stock options and receive a per share
amount in cash equal to the excess of the &#147;change in
control price&#148; over the exercise price of the stock option.
The &#147;change in control price&#148; will be the highest
price per share paid in any transaction reported on the NASDAQ
National Market System, or paid or offered to be paid in any
bona fide transaction relating to a potential or actual change
in control of the Corporation at any time during the 60-day
period immediately preceding the change in control as determined
by the Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If an optionee&#146;s employment is terminated at or following a
change in control (other than by death, disability or
retirement), the exercise periods of an optionee&#146;s stock
options will be extended to the earlier of six months and one
day from the date of employment termination or the options&#146;
respective expiration dates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Miscellaneous.</I> The Stock Incentive Plan may be amended or
discontinued by the Board of Directors, provided that the Board
may not, without the approval of the Corporation&#146;s
shareholders, (a)&nbsp;increase the number of shares reserved
for distribution or decrease the option price of a stock option
below 100% of the fair market value at grant or change the
pricing terms applicable to stock purchase rights, except as
expressly provided in the Stock Incentive Plan as described
below with respect to certain events such as a merger, stock
split, consolidation, recapitalization, stock dividend,
reorganization or other capital event, (b)&nbsp;change the class
of employees eligible to receive awards under the Stock
Incentive Plan, or (c)&nbsp;extend maximum exercise periods for
awards. No amendment or discontinuance may impair the rights of
an optionee or recipient under an outstanding stock option or
other award without the recipient&#146;s consent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the event of any merger, stock split, consolidation,
recapitalization, stock dividend, reorganization or other change
in corporate structure affecting the Common Stock, the Board of
Directors may, in its sole discretion, make substitutions or
adjustments in the aggregate number of shares reserved for
issuance under the Stock Incentive Plan, in the number and
option price of shares subject to outstanding options (and
related stock appreciation rights), and in the number of shares
subject to other awards granted under the Stock Incentive Plan.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Stock Incentive Plan Benefits</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Set forth in the table below are the number of stock options
granted in fiscal 2005 and the number of stock options the
Corporation granted in fiscal 2006 prior to the date of this
Proxy Statement to each of the named executive officers and
certain groups. LSOs and nonqualified stock options were the
only type of awards granted under the Stock Incentive Plan
during 2005. LSOs are the only type of awards the Corporation
has awarded in fiscal 2006 prior to the date of this Proxy
Statement.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="57%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fiscal 2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fiscal 2006</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name and Position or Group</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of Options(1)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of Options</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Harold M. Stratton&nbsp;II, Chairman, President and Chief
    Executive Officer</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,930</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Patrick J. Hansen, Vice President and Chief Financial Officer,
    Secretary and Treasurer</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,990</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,050</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Donald J. Harrod, Vice President-Engineering and Program
    Development</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,020</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kathryn E. Scherbarth, Vice President-Milwaukee Operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,930</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Rolando J. Guillot, Vice President-Mexican Operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,830</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All executive officers, as a group</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>87,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,770</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All directors who are not executive officers, as a group</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All employees, as a group</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>140,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40,000</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    All of the LSOs granted to the named executive officers during
    fiscal 2005 were subsequently cancelled by agreement with the
    recipients without consideration on June&nbsp;17, 2005.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The types of awards and amounts thereof that may be granted
under the Stock Incentive Plan to the above-named individuals
and groups in the future are not determinable at this time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Vote Required</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The affirmative vote of a majority of the shares of the Common
Stock present in person or by proxy at the Annual Meeting is
required for approval of the proposal to amend and restate the
Stock Incentive Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors recommends a vote in
<B>&#147;FAVOR&#148;</B> of amending and restating the Stock
Incentive Plan. Shares of Common Stock represented at the Annual
Meeting by executed but unmarked proxies will be voted in
<B>&#147;FAVOR&#148; </B>of the proposal to amend and restate
the Stock Incentive Plan, unless a vote against the proposal or
to abstain from voting is specifically indicated on the proxy.
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DIRECTORS&#146; MEETINGS AND COMMITTEES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors has an Audit Committee, a Compensation
Committee and a Nominating and Corporate Governance Committee.
The Board of Directors held four meetings in fiscal 2005, and
all of the directors attended 100% of the meetings of the Board
of Directors and the committees thereof on which they served.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board&#146;s Audit Committee is comprised of
Messrs.&nbsp;Koss (Chairman), Feitler and Krejci. The Audit
Committee is responsible for assisting the Board of Directors
with oversight of (1)&nbsp;the integrity of the
Corporation&#146;s financial statements, (2)&nbsp;the
Corporation&#146;s compliance with legal and regulatory
requirements, (3)&nbsp;the independent registered auditor&#146;s
qualifications and independence and (4)&nbsp;the performance of
the Corporation&#146;s internal accounting function and
independent auditors. The Audit Committee has the direct
authority and responsibility to select, evaluate and, where
appropriate, replace the independent auditors, and is an
&#147;audit committee&#148; for purposes of
Section&nbsp;3(a)(58)(A) of the Securities Exchange Act of 1934.
The Audit Committee held three meetings in fiscal 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board&#146;s Compensation Committee is comprised of
Messrs.&nbsp;Feitler (Chairman), Koss and Krejci. The
Compensation Committee, in addition to such other duties as may
be specified by the Board of Directors, reviews the compensation
and benefits of senior managers (including the
Corporation&#146;s Chief Executive Officer) and makes
appropriate recommendations to the Board of Directors,
administers the Corporation&#146;s Economic Value Added Plan for
Executive Officers and Senior Managers, administers the Stock
Incentive Plan and prepares on an annual basis a report on
executive compensation. The Compensation Committee met one time
during fiscal 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board&#146;s Nominating and Corporate Governance Committee
is comprised of Messrs.&nbsp;Krejci (Chairman), Koss and
Feitler. The Nominating and Corporate Governance Committee is
responsible for assisting the Board of Directors by identifying
individuals qualified to become members of the Board of
Directors and its committees, recommending to the Board of
Directors nominees for the annual meeting of shareholders,
developing and recommending to the Board of Directors a set of
corporate governance principles applicable to the Corporation
and assisting the Board of Directors in assessing director
performance and the effectiveness of the Board of Directors. The
Nominating and Corporate Governance Committee held four meetings
in fiscal 2005.
</DIV>

<!-- link1 "CORPORATE GOVERNANCE MATTERS" -->
<DIV align="left"><A NAME="005"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CORPORATE GOVERNANCE MATTERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Director Independence</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Corporation&#146;s Board of Directors has reviewed the
independence of its incumbent and nominee directors under the
applicable standards of the Nasdaq Stock Market. Based on this
review, the Board of Directors determined that each of Robert
Feitler, Frank J. Krejci and Michael J. Koss is independent
under those standards. These independent directors constitute a
majority of the directors of the Corporation.
</DIV>

<P align="center" style="font-size: 10pt;">9

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Director Nominations</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Corporation has a standing Nominating and Corporate
Governance Committee. The Corporation has placed a current copy
of the charter of the Nominating and Corporate Governance
Committee on its web site located at www.strattec.com. Based on
the review described under &#147;Director Independence,&#148;
the Board of Directors has determined that each member of the
Nominating and Corporate Governance Committee is independent
under the applicable standards of the Nasdaq Stock Market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Nominating and Corporate Governance Committee will consider
director nominees recommended by shareholders. A shareholder who
wishes to recommend a person or persons for consideration as a
nominee for election to the Board of Directors must send a
written notice by mail, c/o&nbsp;Secretary, STRATTEC SECURITY
CORPORATION, 3333&nbsp;West Good Hope Road, Milwaukee, Wisconsin
53209, that sets forth: (1)&nbsp;the name, address (business and
residence), date of birth and principal occupation or employment
(present and for the past five years) of each person whom the
shareholder proposes to be considered as a nominee; (2)&nbsp;the
number of shares of the Corporation&#146;s Common Stock
beneficially owned (as defined by section&nbsp;13(d) of the
Securities Exchange Act of 1934) by each such proposed nominee;
(3)&nbsp;any other information regarding such proposed nominee
that would be required to be disclosed in a definitive proxy
statement to shareholders prepared in connection with an
election of directors pursuant to section&nbsp;14(a) of the
Securities Exchange Act of 1934; and (4)&nbsp;the name and
address (business and residential) of the shareholder making the
recommendation and the number of shares of the Common Stock
beneficially owned (as defined by section&nbsp;13(d) of the
Securities Exchange Act of 1934) by the shareholder making the
recommendation. The Corporation may require any proposed nominee
to furnish additional information as may be reasonably required
to determine the qualifications of such proposed nominee to
serve as a director of the Corporation. Shareholder
recommendations will be considered only if received no less than
120&nbsp;days nor more than 150&nbsp;days before the date of the
proxy statement sent to shareholders in connection with the
previous fiscal year&#146;s annual meeting of shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Nominating and Corporate Governance Committee will consider
any nominee recommended by a shareholder in accordance with the
preceding paragraph under the same criteria as any other
potential nominee. The Nominating and Corporate Governance
Committee believes that a nominee recommended for a position on
the Corporation&#146;s Board of Directors must have an
appropriate mix of director characteristics, experience, diverse
perspectives and skills. Qualifications of a prospective nominee
that may be considered by the Nominating and Corporate
Governance Committee include:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    personal integrity and high ethical character;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    professional excellence;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    accountability and responsiveness;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    absence of conflicts of interest;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">10

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    fresh intellectual perspectives and ideas;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    relevant expertise and experience and the ability to offer
    advice and guidance to management based on that expertise and
    experience.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Communications between Shareholders and the Board of
Directors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shareholders of the Corporation may communicate with the Board
or any individual Director by directing such communication to
the Corporation&#146;s Secretary at the address of the
Corporation&#146;s headquarters, 3333&nbsp;West Good Hope Road,
Milwaukee, Wisconsin 53209. Each such communication should
indicate that the sender is a shareholder of the Corporation and
that the sender is directing the communication to one or more
individual Directors or to the Board as a whole.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All communications will be compiled by the Corporation&#146;s
Secretary and submitted to the Board of Directors or the
individual Directors on a monthly basis unless such
communications are considered, in the reasonable judgment of the
Secretary, to be improper for submission to the intended
recipient(s). Examples of shareholder communications that would
be considered improper for submission include, without
limitation, customer complaints, solicitations, communications
that do not relate directly or indirectly to the Corporation or
the Corporation&#146;s business or communications that relate to
improper or irrelevant topics. The Secretary may also attempt to
handle a communication directly where appropriate, such as where
the communication is a request for information about the
Corporation or where it is a stock-related matter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Attendance of Directors at Annual Meetings of Shareholders</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Corporation expects that all directors and nominees for
election as directors at an annual meeting of shareholders will
attend the annual meeting, absent a valid reason, such as a
schedule conflict. All of the directors attended the annual
meeting of shareholders held on October&nbsp;5, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Code of Business Ethics</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Corporation has adopted a Code of Business Ethics that
applies to all of the Corporation&#146;s employees, including
the Corporation&#146;s principal executive officer, principal
financial officer and principal accounting officer. A copy of
the Code of Business Ethics is available on the
Corporation&#146;s corporate web site which is located at
www.strattec.com. The Corporation also intends to disclose any
amendments to, or waivers from, the Code of Business Ethics on
its corporate web site.
</DIV>

<P align="center" style="font-size: 10pt;">11

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<DIV align="left"><A NAME="006"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AUDIT COMMITTEE MATTERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Report of the Audit Committee</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee is comprised of three members of the
Corporation&#146;s Board of Directors. Based upon the review
described above under &#147;Director Independence,&#148; the
Board of Directors has determined that each member of the Audit
Committee is independent as defined in the listing standards of
the Nasdaq Stock Market and the Securities and Exchange
Commission (the &#147;Commission&#148;). The duties and
responsibilities of the Audit Committee are set forth in the
Corporation&#146;s Audit Committee Charter, which was amended
and restated by the Board of Directors on August&nbsp;19, 2005.
The full text of the Audit Committee&#146;s amended and restated
Charter is attached as Appendix&nbsp;B to this Proxy Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee has:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    reviewed and discussed the Corporation&#146;s audited financial
    statements for the fiscal year ended July&nbsp;3, 2005 with the
    Corporation&#146;s management and with the Corporation&#146;s
    independent auditors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    discussed with the Corporation&#146;s independent auditors the
    matters required to be discussed by SAS 61 (Codification for
    Statements on Auditing Standards);&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    received and discussed the written disclosures and the letter
    from the Corporation&#146;s independent auditors required by
    Independence Standards Board Statement No.&nbsp;1 (Independence
    discussions with Audit Committees) and has discussed with its
    independent auditors its independence.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on such review and discussions with management and with
the independent auditors, the Audit Committee recommended to the
Board of Directors that the audited financial statements be
included in the Corporation&#146;s Annual Report on
Form&nbsp;10-K for the fiscal year ended July&nbsp;3, 2005, for
filing with the Commission.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    AUDIT COMMITTEE:</TD>
</TR>

<TR>
    <TD style="font-size: 12pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Michael J. Koss&nbsp;&#151;&nbsp;Chairman</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Robert Feitler</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Frank J. Krejci</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">12

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Fees of Independent Registered Public Accounting Firm</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table summarizes the fees the Corporation was
billed for audit and non-audit services rendered by the
Corporation&#146;s independent auditors, Grant Thornton LLP,
during fiscal 2005 and 2004:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="59%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fiscal Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fiscal Year</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ending July&nbsp;3,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ending June&nbsp;27,</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Service Type</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Audit Fees(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>110,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>96,500</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Audit-Related Fees(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Tax Fees(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All Other Fees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Fees Billed</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>130,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>111,500</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Includes fees for professional services rendered in connection
    with the audit of the Corporation&#146;s financial statements
    for the fiscal years ended July&nbsp;3, 2005 and June&nbsp;27,
    2004; and the reviews of the financial statements included in
    each of the Corporation&#146;s quarterly reports on
    Form&nbsp;10-Q during those fiscal years.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Consists of fees for ERISA employee benefit plan audits and
    consultations for financial accounting matters.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Consists of fees for the preparation of Form&nbsp;5500 statutory
    tax returns.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee of the Board of Directors of the Corporation
considered that the provision of the services and the payment of
the fees described above are compatible with maintaining the
independence of Grant Thornton LLP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee is responsible for reviewing and
pre-approving any non-audit services to be performed by the
Corporation&#146;s independent auditors. The Audit Committee has
delegated certain of its pre-approval authority to the Chairman
of the Audit Committee to act between meetings of the Audit
Committee. Any pre-approval given by the Chairman of the Audit
Committee pursuant to this delegation is presented to the full
Audit Committee at its next regularly scheduled meeting. The
Audit Committee or Chairman of the Audit Committee reviews and,
if appropriate, approves non-audit service engagements, taking
into account the proposed scope of the non-audit services, the
proposed fees for the non-audit services, whether the non-audit
services are permissible under applicable law or regulation and
the likely impact of the non-audit services on the independence
of the independent auditors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Since the effective date of the Commission rules requiring
pre-approval of non-audit services on May&nbsp;6, 2003, each new
engagement of the Corporation&#146;s independent auditors to
perform non-audit services has been approved in advance by the
Audit Committee or the Chairman of the Audit Committee pursuant
to the foregoing procedures.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Fiscal 2006 Independent Registered Public Accounting Firm</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee will select the Corporation&#146;s
independent registered public accounting firm for the 2006
fiscal year. It is expected that a representative of Grant
Thornton LLP will be present at the Annual Meeting and will have
the opportunity to make a statement if such representative
desires to do so and will be available to respond to appropriate
questions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Audit Committee Financial Expert</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Corporation&#146;s Board of Directors has determined that
one of the members of the Audit Committee, Michael J. Koss,
qualifies as an &#147;audit committee financial expert&#148; as
defined by the rules of the Commission based on his work
experience and duties as the Chief Financial Officer and Chief
Executive Officer of Koss Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Information Regarding Change of Auditors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On September&nbsp;15, 2003, the Corporation dismissed
Deloitte&nbsp;&#38; Touche LLP as its independent public
auditors and appointed Grant Thornton LLP as its new independent
auditors. The decision to dismiss Deloitte&nbsp;&#38; Touche LLP
and to retain Grant Thornton LLP was approved by the
Corporation&#146;s Audit Committee on September&nbsp;15, 2003.
Deloitte&nbsp;&#38; Touche LLP&#146;s reports on the
Corporation&#146;s consolidated financial statements for the
fiscal years ended June&nbsp;29, 2003 and June&nbsp;30, 2002 did
not contain an adverse opinion or disclaimer of opinion, nor
were the reports qualified or modified as to uncertainty, audit
scope or accounting principles. During the Corporation&#146;s
fiscal years ended June&nbsp;29, 2003 and June&nbsp;30, 2002 and
through September&nbsp;15, 2003, there were no disagreements
with Deloitte&nbsp;&#38; Touche LLP on any matter of accounting
principles or practices, financial statement disclosure, or
auditing scope or procedure which, if not resolved to
Deloitte&nbsp;&#38; Touche LLP&#146;s satisfaction, would have
caused them to make reference to the subject matter in
connection with their report on the Corporation&#146;s
consolidated financial statements for such years; and there were
no reportable events, as listed in Item&nbsp;304(a)(1)(v) of
Commission Regulation&nbsp;S-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the Corporation&#146;s fiscal years ended June&nbsp;29,
2003 and June&nbsp;30, 2002 and through September&nbsp;15, 2003,
the Corporation did not consult Grant Thornton LLP with respect
to the application of accounting principles to a specified
transaction, either completed or proposed, or the type of audit
opinion that might be rendered on the Corporation&#146;s
consolidated financial statements, or any other matters or
reportable events listed in Items&nbsp;304(a)(2)(i) and
(ii)&nbsp;of Commission Regulation&nbsp;S-K.
</DIV>

<P align="center" style="font-size: 10pt;">14

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "COMPENSATION OF DIRECTORS" -->
<DIV align="left"><A NAME="007"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>COMPENSATION OF DIRECTORS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each nonemployee director of the Corporation receives an annual
retainer fee of $9,000, a fee of $1,000 for each Board meeting
attended and a fee of $500 for each committee meeting attended.
The respective chairmen of the Board committees receive an
additional meeting fee of $1,000 for each Audit Committee
meeting and $500 for each Compensation Committee meeting and
Nominating and Corporate Governance Committee meeting. Effective
June&nbsp;30, 1997, the Corporation implemented an Economic
Value Added Plan for Non-Employee Members of the Board of
Directors (the &#147;Director EVA* Plan&#148;). The purpose of
the Director EVA Plan is to maximize long-term shareholder value
by providing incentive compensation to nonemployee directors in
a form which relates the financial reward to an increase in the
value of the Corporation to its shareholders and to enhance the
Corporation&#146;s ability to attract and retain outstanding
individuals to serve as nonemployee directors of the
Corporation. The Director EVA Plan provides for the payment of a
potential cash bonus to each nonemployee director equal to the
product of (a)&nbsp;40% of the director&#146;s retainer and
meeting fees for the fiscal year, multiplied by (b)&nbsp;a
Company Performance Factor. In general, the Company Performance
Factor is determined by reference to the financial performance
of the Corporation relative to a targeted cash-based return on
capital, which is intended to approximate the Corporation&#146;s
weighted cost of capital (which was 11% for fiscal 2005). For
fiscal 2005, Messrs.&nbsp;Feitler, Koss and Krejci received
bonuses of $5,530, $6,320 and $6,004, respectively, pursuant to
the Director EVA Plan.
</DIV>

<DIV align="left" style="font-size: 10pt;">

</DIV>
<p>
<DIV align="left" style="font-size: 3pt; margin-top: 0pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
*&nbsp;EVA is a registered trademark of Stern,
Stewart&nbsp;&#38; Co.
</DIV>

<P align="center" style="font-size: 10pt;">15
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "EXECUTIVE OFFICERS" -->
<DIV align="left"><A NAME="008"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EXECUTIVE OFFICERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth the name, age, current position
and principal occupation and employment during the past five
years of the executive officers of the Corporation who are not
directors:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="29%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Age</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Current Position</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Other Positions</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Patrick J. Hansen</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice President, Chief Financial Officer, Treasurer and Secretary
    of the Corporation since February 1999.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Corporate Controller of the Corporation from February 1995 to
    February 1999.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Milan R. Bundalo</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice President&nbsp;&#151; Materials of the Corporation since
    May 2003.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director of Materials of the Corporation from October 1995 to
    May 2003.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Donald J. Harrod</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice President&nbsp;&#151; Engineering and Program Development
    of the Corporation since April 2003.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice President&nbsp;&#151; Engineering of the Corporation from
    November 1998 to April 2003.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kathryn E. Scherbarth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice President&nbsp;&#151; Milwaukee Operations since May 2003.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Plant Manager of the Corporation from February 1996 to May 2003.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Rolando J. Guillot</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice President&nbsp;&#151; Mexican Operations of the Corporation
    since September 2004.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    General Manager&nbsp;&#151; Mexican Operations of the
    Corporation from January 2003 to August 2004. Plant Manager of
    STRATTEC de Mexico S.A. de C.V. from January 2002 to December
    2002. Mr.&nbsp;Guillot served in various management positions
    for STRATTEC de Mexico S.A. de C.V. from October 1996 to January
    2002.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dennis A. Kazmierski</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice President&nbsp;&#151; Marketing and Sales of the
    Corporation since March 2005</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Vice President&nbsp;&#151; Engineered Systems Group Business
    Unit for Metalforming Technologies Inc. from January 1999 to
    March 2005.</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">16

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "SECURITY OWNERSHIP" -->
<DIV align="left"><A NAME="009"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SECURITY OWNERSHIP</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth information regarding the
beneficial ownership of shares of the Corporation&#146;s Common
Stock as of August&nbsp;5, 2005 by (i)&nbsp;each director and
Named Executive Officer (as defined below), (ii)&nbsp;all
directors and executive officers as a group, and (iii)&nbsp;each
person or other entity known by the Corporation to beneficially
own more than 5% of the outstanding Common Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table is based on information supplied to the
Corporation by the directors, officers and shareholders
described above. The Corporation has determined beneficial
ownership in accordance with the rules of the Commission. Shares
of common stock subject to options that are either currently
exercisable or exercisable within 60&nbsp;days of August&nbsp;5,
2005 are treated as outstanding and beneficially owned by the
option holder for the purpose of computing the percentage
ownership of the option holder. However, these shares are not
treated as outstanding for the purpose of computing the
percentage ownership of any other person. The table lists
applicable percentage ownership based on 3,745,276&nbsp;shares
outstanding as of August&nbsp;5, 2005.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="34%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Nature of Beneficial Ownership</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total Number</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Sole</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Sole</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shared</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shared</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Sole</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>of Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Voting and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Voting or</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Voting and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Voting or</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Voting</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Beneficially</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percent of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Investment</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Investment</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Investment</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Investment</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Power</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD align="left" nowrap><B>Name and Address of Beneficial Owner(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Owned(2)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Class</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Power</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Power</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Power</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Power</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Only(3)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    FMR Corp.(4)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>519,745</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.9</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>519,745</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    PRIMECAP Management Company(5)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>420,037</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.2</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>194,937</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>225,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Royce&nbsp;&#38; Associates(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>495,336</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13.2</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>495,336</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    T. Rowe Price Associates, Inc.(7)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>578,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>543,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Vanguard Horizon Funds(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>220,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.9</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>220,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Robert Feitler</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Michael J. Koss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Frank J. Krejci</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Harold M. Stratton&nbsp;II(9)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>113,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.7</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>43,743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Patrick J. Hansen</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Donald J. Harrod</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kathryn E. Scherbarth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Rolando J. Guillot</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All directors and executive officers as a group (10&nbsp;persons)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>164,239</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.3</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>60,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">17

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>*</TD>
    <TD align="left">
    Less than 1%.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Unless otherwise indicated in the other footnotes, the address
    for each person listed is 3333&nbsp;West Good Hope Road,
    Milwaukee, Wisconsin 53209.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Includes the rights of the following persons to acquire shares
    pursuant to the exercise of currently vested stock options or
    pursuant to stock options exercisable within 60&nbsp;days of
    August&nbsp;5, 2005: Mr.&nbsp;Stratton&nbsp;&#151;
    58,475&nbsp;shares; Mr.&nbsp;Hansen&nbsp;&#151;
    5,190&nbsp;shares; Mr.&nbsp;Harrod&nbsp;&#151;
    5,320&nbsp;shares; Ms.&nbsp;Scherbarth&nbsp;&#151; 5,440;
    Mr.&nbsp;Guillot&nbsp;&#151; 1,210; and all directors and
    executive officers as a group&nbsp;&#151; 92,865&nbsp;shares.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    All shares are held in the Employee Savings and Investment Plan
    Trust.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    FMR Corp. (&#147;FMR&#148;), 82 Devonshire Street, Boston,
    Massachusetts 02109, filed a Schedule&nbsp;13G dated
    February&nbsp;12, 1999, as amended by a Schedule 13G/ A dated
    February&nbsp;14, 2000, a Schedule&nbsp;13G/ A dated
    March&nbsp;10, 2000, a Schedule&nbsp;13G/ A dated
    February&nbsp;14, 2001, a Schedule&nbsp;13G/ A dated
    February&nbsp;14, 2002, a Schedule&nbsp;13G/ A dated
    February&nbsp;14, 2003, a Schedule&nbsp;13G/ A dated
    February&nbsp;16, 2004, and a Schedule&nbsp;13G/ A dated
    February&nbsp;14, 2005, reporting that as of December&nbsp;31,
    2004, it was the beneficial owner of 519,745&nbsp;shares of
    Common Stock. The shares of Common Stock beneficially owned by
    FMR include 519,745&nbsp;shares as to which FMR has sole
    investment power. Fidelity Management&nbsp;&#38; Research
    Company (&#147;Fidelity&#148;), a wholly-owned subsidiary of
    FMR, is the beneficial owner of 519,745&nbsp;shares as a result
    of acting as an investment adviser to various investment
    companies registered under the Investment Company Act of 1940.
    Fidelity&#146;s ownership of an investment company, the Fidelity
    Low Priced Stock Fund, comprised the entire 519,745&nbsp;shares.
    Edward C. Johnson, the Chairman of FMR, by virtue of his
    position with FMR, has the sole power to direct the disposition
    of the shares deemed owned by Fidelity.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    PRIMECAP Management Company (&#147;PRIMECAP&#148;), 225 South
    Lake Avenue, Suite&nbsp;400, Pasadena, California 91101-3005,
    filed a Schedule&nbsp;13G dated June&nbsp;17, 1999, as amended
    by a Schedule&nbsp;13G/ A dated April&nbsp;7, 2000, a
    Schedule&nbsp;13G/ A dated March&nbsp;9, 2001, a
    Schedule&nbsp;13G/ A dated August&nbsp;31, 2002, a Schedule 13G/
    A dated March&nbsp;30, 2005 and a Schedule&nbsp;13G/ A dated
    August&nbsp;3, 2005, reporting that as of July&nbsp;31, 2005, it
    was the beneficial owner of 420,037&nbsp;shares of Common Stock.
    The shares of Common Stock beneficially owned by PRIMECAP
    include 194,937&nbsp;shares as to which PRIMECAP has sole voting
    power and 420,037&nbsp;shares as to which PRIMECAP has sole
    investment power.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(6)&nbsp;</TD>
    <TD align="left">
    Royce&nbsp;&#38; Associates, LLC, 1414 Avenue of the Americas,
    New York, New York 10019, filed a Schedule&nbsp;13G dated
    February&nbsp;5, 2003, as amended by a Schedule&nbsp;13G/ A
    dated March&nbsp;28, 2003, a Schedule&nbsp;13G/ A dated
    February&nbsp;6, 2004, a Schedule&nbsp;13G/ A dated
    March&nbsp;8, 2004, and a Schedule&nbsp;13G/ A dated
    February&nbsp;3, 2005, reporting that as of December&nbsp;31,
    2004, it was the beneficial owner of 495,336&nbsp;shares of
    Common Stock, with sole voting and investment power as to all of
    such shares.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">18

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(7)&nbsp;</TD>
    <TD align="left">
    T. Rowe Price Associates, Inc. and on behalf of T. Rowe Price
    Small-Cap Stock Fund, Inc. and T. Rowe Price Small-Cap Value
    Fund, Inc. (collectively, &#147;T. Rowe Price&#148;), 100 East
    Pratt Street, Baltimore, Maryland 21202, filed a
    Schedule&nbsp;13G/ A dated February&nbsp;9, 2000, as amended by
    a Schedule&nbsp;13G/ A dated April&nbsp;7, 2000, a
    Schedule&nbsp;13G/ A dated February&nbsp;12, 2001, a
    Schedule&nbsp;13G/ A dated February&nbsp;14, 2002, a
    Schedule&nbsp;13G/ A dated February&nbsp;14, 2003, a
    Schedule&nbsp;13G/ A dated February&nbsp;13, 2004, and a
    Schedule&nbsp;13G/ A dated February&nbsp;14, 2005, reporting
    that as of December&nbsp;31, 2004, T. Rowe Price was the
    beneficial owner of 578,100&nbsp;shares of Common Stock. The
    shares of Common Stock beneficially owned by T. Rowe Price
    include 543,100&nbsp;shares as to which T. Rowe Price has sole
    voting power and 578,100&nbsp;shares as to which T. Rowe Price
    has sole investment power.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(8)&nbsp;</TD>
    <TD align="left">
    Vanguard Horizon Funds, 100 Vanguard Boulevard, Malvern,
    Pennsylvania 19355, filed a Schedule&nbsp;13G dated
    February&nbsp;13, 2002, as amended by a Schedule&nbsp;13G/ A
    dated February&nbsp;11, 2003, a Schedule&nbsp;13G/ A dated
    February&nbsp;3, 2004, and a Schedule&nbsp;13G/ A dated
    February&nbsp;11, 2005, reporting that as of December&nbsp;31,
    2004, it was the beneficial owner of 220,000&nbsp;shares of
    Common Stock, with sole voting power as to all of such shares.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(9)&nbsp;</TD>
    <TD align="left">
    Includes 10,100&nbsp;shares held in trusts as to which
    Mr.&nbsp;Stratton is co-trustee and beneficiary, 169&nbsp;shares
    owned by Mr.&nbsp;Stratton&#146;s spouse, 1,479&nbsp;shares as
    to which Mr.&nbsp;Stratton is custodian on behalf of his
    children, 900&nbsp;shares as to which Mr.&nbsp;Stratton&#146;s
    brother is custodian on behalf of his children and
    22&nbsp;shares held in the Employee Savings and Investment Plan
    Trust.</TD>
</TR>

</TABLE>

<!-- link1 "SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE" -->
<DIV align="left"><A NAME="010"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SECTION&nbsp;16(a) BENEFICIAL OWNERSHIP REPORTING
COMPLIANCE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section&nbsp;16(a) of the Securities Exchange Act of 1934, as
amended (the &#147;Exchange Act&#148;), requires the
Corporation&#146;s directors and executive officers, and persons
who own more than 10% of a registered class of the
Corporation&#146;s equity securities, to file with the
Commission initial reports of beneficial ownership on
Form&nbsp;3 and reports of changes in beneficial ownership of
the Corporation&#146;s equity securities on Form&nbsp;4 or 5.
The rules promulgated by the Commission under section&nbsp;16(a)
of the Exchange Act require those persons to furnish the
Corporation with copies of all reports filed with the Commission
pursuant to section&nbsp;16(a). Based solely upon a review of
such forms actually furnished to the Corporation, and written
representations of certain of the Corporation&#146;s directors
and executive officers that no forms were required to be filed,
all directors, executive officers and 10% shareholders have
filed with the Commission on a timely basis all reports required
to be filed under section&nbsp;16(a) of the Exchange Act.
</DIV>

<P align="center" style="font-size: 10pt;">19

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "PERFORMANCE GRAPH" -->
<DIV align="left"><A NAME="011"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PERFORMANCE GRAPH</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The chart below shows a comparison of the cumulative return
since June&nbsp;30, 2000 had $100 been invested at the close of
business on June&nbsp;30, 2000 in each of the Common Stock, the
Nasdaq Composite Index (all issuers), and the Dow Jones
U.S.&nbsp;Auto Parts Index.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CUMULATIVE TOTAL RETURN COMPARISON*</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>The Corporation versus Published Indices (Nasdaq Composite
Index and the Dow Jones U.S.&nbsp;Auto Parts Index)</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<IMG src="c98032dc9803210.gif" alt="(PERFORMANCE GRAPH)">
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
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    <TD width="2%">&nbsp;</TD>
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    <TD width="2%">&nbsp;</TD>
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<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap style="border-left:1.5pt solid #000000;"><B>&nbsp;</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>6/30/00</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>6/29/01</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>6/28/02</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>6/27/03</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>6/25/04</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap><B>7/01/05</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top" style="border-left:1.5pt solid #000000;">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;The Corporation**</DIV>
    </TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>107</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>170</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>163</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>208</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>166</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top" style="border-left:1.5pt solid #000000;">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;Nasdaq Composite Index</DIV>
    </TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>54</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>51</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>52</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;border-left:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top" style="border-left:1.5pt solid #000000;">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;Dow Jones U.S.&nbsp;Auto Parts Index</DIV>
    </TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>124</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>134</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>118</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>156</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>137</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>*&nbsp;</TD>
    <TD align="left">
    Total return assumes reinvestment of dividends.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>**&nbsp;</TD>
    <TD align="left">
    The closing price of the Common Stock on June&nbsp;30, 2000 was
    $32.50, the closing price on June&nbsp;29, 2001 was $34.72, the
    closing price on June&nbsp;28, 2002 was $55.32, the closing
    price on June&nbsp;27, 2003 was $52.87, the closing price on
    June&nbsp;25, 2004 was $67.57 and the closing price on
    July&nbsp;1, 2005 was $53.82.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">20
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION" -->
<DIV align="left"><A NAME="012"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Corporation&#146;s Compensation Committee (the
&#147;Committee&#148;), which is comprised of three outside
directors of the Corporation, is responsible for considering and
approving compensation arrangements for senior management of the
Corporation, including the Corporation&#146;s executive officers
and the chief executive officer. Based on the review described
under &#147;Director Independence,&#148; the Board of Directors
has determined that each member of the Compensation Committee is
independent under the applicable standards of the Nasdaq Stock
Market. The objectives of the Committee in establishing
compensation arrangements for senior management are to:
(i)&nbsp;attract and retain key executives who are important to
the continued success of the Corporation; and (ii)&nbsp;provide
strong financial incentives, at reasonable cost to the
shareholders, for senior management to enhance the value of the
shareholders&#146; investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The primary components of the Corporation&#146;s executive
compensation program are (i)&nbsp;base salary,
(ii)&nbsp;incentive compensation bonuses and (iii)&nbsp;stock
options.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Committee believes that:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Corporation&#146;s incentive plans provide strong incentives
    for management to increase shareholder value;</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Corporation&#146;s pay levels are appropriately targeted to
    attract and retain key executives;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The Corporation&#146;s total compensation program is a
    cost-effective strategy to increase shareholder value.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Base Salaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Executive officers&#146; base salaries are reviewed annually by
the Committee, based on level of responsibility and individual
performance. It is the Corporation&#146;s objective that base
salary levels, in the aggregate, be at competitive salary
levels. In fixing competitive base salary levels, the Committee
reviewed a survey of a broad group of domestic industrial
organizations from all segments of industry. Each executive
officer&#146;s salary for fiscal 2005 was positioned near the
median derived from the survey for positions with similar
responsibilities at companies with a similar level of sales.
Because the survey was based on industry-wide studies, the
companies in the survey do not correspond to the companies that
make up the Dow Jones U.S.&nbsp;Auto Parts Index, which is used
by the Corporation as the published industry index for
comparison in the Performance Graph on page&nbsp;20.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Incentive Bonuses</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Corporation maintains an Economic Value Added
(&#147;EVA&#148;) Plan for Executive Officers and Senior
Managers (the &#147;EVA Plan&#148;), the purpose of which is to
provide incentive compensation to certain key employees,
including all executive officers, in a form which relates the
financial reward to an increase in the value of the Corporation
to its shareholders. In general, EVA is the net operating profit
after cash basis taxes, less a capital charge. The capital
charge is intended to represent the return expected by the
providers of the Corporation&#146;s capital.
</DIV>

<P align="center" style="font-size: 10pt;">21
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<DIV align="left" style="font-size: 10pt;">
The Corporation believes that EVA improvement is the financial
performance measure most closely correlated with increases in
shareholder value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For fiscal 2005, the amount of bonus which a participant was
entitled to earn was derived from a Company Performance Factor
and from an Individual Performance Factor. The Company
Performance Factor was determined by reference to the financial
performance of the Corporation relative to a targeted cash-based
return on capital established by the Committee, which is
intended to approximate the Corporation&#146;s weighted cost of
capital. The Individual Performance Factor was determined by
reference to the level of attainment of certain quantifiable and
non-quantifiable company or individual goals which contribute to
increasing the value of the Corporation to its shareholders.
Individual Target Incentive Awards under the EVA Plan range from
75% of base compensation for the Chairman, President and Chief
Executive Officer to 35% of base compensation for other officers
for fiscal 2005. The formula for calculating bonuses under the
EVA Plan is: Base Salary &#215; Target Incentive Award &#215;
(50% of the Company Performance Factor + 50% of the Individual
Performance Factor). A portion of this bonus amount is subject
to an at risk &#147;Bonus Bank&#148; described below.
Mr.&nbsp;Stratton&#146;s actual fiscal 2005 bonus payout equals
127% of his Target Incentive Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The EVA Plan provides the powerful incentive of an uncapped
bonus opportunity, but also uses a &#147;Bonus&nbsp;Bank&#148;
to ensure that significant EVA improvements are sustained before
significant bonus awards are paid out. The Bonus Bank feature
applies to those participants determined by the Committee to be
&#147;Executive Officers&#148; under the EVA Plan. All of the
named executive officers have been designated Executive Officers
for fiscal 2005. Each year, any accrued bonus in excess of 125%
of the target bonus award is added to the outstanding Bonus Bank
balance. The bonus paid is equal to the accrued bonus for the
year, up to a maximum of 125% of the target bonus, plus 33% of
the Bonus Bank balance at the end of the year. Thus, significant
EVA improvements must be sustained for several years to ensure
full payout of the accrued bonus. A Bonus Bank account is
considered &#147;at risk&#148; in the sense that in any year the
accrued bonus is negative, the negative bonus amount is
subtracted from the outstanding Bonus Bank balance. In the event
the outstanding Bonus Bank balance at the beginning of the year
is negative, the bonus paid is limited to the accrued bonus up
to a maximum of 75% of the target bonus. The executive is not
expected to repay negative balances. On termination of
employment due to death, disability or retirement or by the
Corporation without cause, any positive available balance in the
Bonus Bank will be paid to the terminating executive or his
designated beneficiary or estate. Executive officers who
voluntarily leave to accept employment elsewhere or who are
terminated for cause will forfeit any positive available
balance. The executive is not expected to repay negative
balances upon termination or retirement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Stock Incentive Plan</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 1994, the Corporation established the Stock Incentive Plan,
most recently amended as of May&nbsp;20, 2003. The Stock
Incentive Plan authorizes the Committee to grant to officers and
other key employees stock incentive awards in the form of stock
options and/or stock
</DIV>

<P align="center" style="font-size: 10pt;">22

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<DIV align="left" style="font-size: 10pt;">
appreciation rights. The proposed amendment and restatement of
the Stock Incentive Plan will authorize the Committee to grant
restricted stock to officers and other key employees. The
proposal and the amended and restated plan are described in more
detail in the section titled &#147;Proposal&nbsp;2: Approval of
Amended and Restated Stock Incentive Plan&#148;. During fiscal
2005, the Committee granted options to purchase Common Stock to
the executives as shown in the Summary Compensation Table.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On August&nbsp;19, 2005, after publication of financial results
for fiscal 2005, the Committee granted 40,000&nbsp;leveraged
stock options (LSOs) to 12 key employees, including options to
purchase&nbsp;17,930&nbsp;shares to Mr.&nbsp;Stratton, options
to purchase&nbsp;4,050&nbsp;shares to Mr.&nbsp;Hansen, options
to purchase&nbsp;4,020&nbsp;shares to Mr.&nbsp;Harrod, options
to purchase&nbsp;2,930&nbsp;shares to Ms.&nbsp;Scherbarth and
options to purchase&nbsp;2,830&nbsp;shares to Mr.&nbsp;Guillot,
based on the amount of incentive bonus under the EVA Plan earned
for fiscal 2005. The method of calculating the number of options
granted to each executive, and the method of determining their
exercise price, is set forth in the EVA Plan and Stock Incentive
Plan. These leveraged stock options have an exercise price of
$61.22&nbsp;per share and provide a form of option grant that
simulates a stock purchase with 10:1 leverage. The number of
leveraged options granted to Mr.&nbsp;Stratton for fiscal 2005
was determined in the manner described and was based on his
incentive bonus for fiscal 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The maximum aggregate number of LSOs to be granted each year is
80,000. If the Total Bonus Payout under EVA produces more than
80,000 LSOs in any year, LSOs granted for that year will be
reduced pro-rata based on proportionate Total Bonus Payouts
under the EVA Plan. The amount of any such reduction shall be
carried forward to subsequent years and invested in LSOs to the
extent the annual limitation is not exceeded in such years. As
part of the proposal to amend and restate the Stock Incentive
Plan, the Board of Directors is proposing to reduce the maximum
amount of LSOs to be awarded in each year from 80,000 to 40,000.
See &#147;Proposal&nbsp;2: Approval of Amended and Restated
Stock Incentive Plan&#148; for more information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Compensation of the Chief Executive Officer</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The compensation awarded to Mr.&nbsp;Stratton reflects the basic
philosophy generally discussed above that compensation be based
on Corporation and individual performance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Committee determined Mr.&nbsp;Stratton&#146;s base salary
for fiscal 2005 based on the compensation survey and annual
review described above. With respect to the EVA Plan and the
Stock Incentive Plan, Mr.&nbsp;Stratton&#146;s awards for fiscal
2005 were determined in the same manner as for all other
participants in these plans.
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    COMPENSATION COMMITTEE:</TD>
</TR>

<TR>
    <TD style="font-size: 12pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Robert Feitler&nbsp;&#151; Chairman</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Michael J. Koss</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Frank J. Krejci</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">23

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<!-- link1 "EXECUTIVE COMPENSATION" -->
<DIV align="left"><A NAME="013"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EXECUTIVE COMPENSATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Cash Compensation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The table which follows sets forth certain information for the
years indicated below concerning the compensation paid by the
Corporation to the Corporation&#146;s Chief Executive Officer
and the four other most highly compensated executive officers in
fiscal 2005 (collectively, the &#147;named executive
officers&#148;):
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Summary Compensation Table</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Long-Term Compensation</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Annual</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Awards</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Payouts</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Compensation(1)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fiscal</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Securities Underlying</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>LTIP</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>All Other</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2" align="left" nowrap><B>Name and Principal Position</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Salary ($)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Bonus ($)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Options/SARs (#)(2)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Payouts ($)(3)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Compensation ($)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Harold M. Stratton II,</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>329,523</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>250,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,930</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62,059</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,625</TD>
    <TD align="left" valign="bottom" nowrap>(4)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Chairman, President and</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>317,520</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>297,675</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>93,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,817</TD>
    <TD align="left" valign="bottom" nowrap>(4)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Chief Executive Officer</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>312,684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>293,141</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66,285</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,564</TD>
    <TD align="left" valign="bottom" nowrap>(4)</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Patrick J. Hansen,</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>176,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59,298</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,880</TD>
    <TD align="left" valign="bottom" nowrap>(5)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Vice President, Chief</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161,583</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>70,693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,990</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,413</TD>
    <TD align="left" valign="bottom" nowrap>(5)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Financial Officer and</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>149,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,935</TD>
    <TD align="left" valign="bottom" nowrap>(5)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Secretary</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Donald J. Harrod,</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57,985</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,171</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,588</TD>
    <TD align="left" valign="bottom" nowrap>(6)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Vice President-Engineering</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>156,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>68,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,256</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,241</TD>
    <TD align="left" valign="bottom" nowrap>(6)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    and Program Development</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>144,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63,219</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,031</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,285</TD>
    <TD align="left" valign="bottom" nowrap>(6)</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kathryn E. Scherbarth,</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>137,417</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44,705</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,930</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,434</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,317</TD>
    <TD align="left" valign="bottom" nowrap>(7)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Vice President-Milwaukee</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>131,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>57,382</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,651</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,059</TD>
    <TD align="left" valign="bottom" nowrap>(7)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>121,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,876</TD>
    <TD align="left" valign="bottom" nowrap>(7)</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Rolando J. Guillot,</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>132,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>49,366</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,830</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,920</TD>
    <TD align="left" valign="bottom" nowrap>(9)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Vice President-Mexican</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operations(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Represents amounts earned and paid with respect to each fiscal
    year.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    For fiscal 2003, all amounts are leveraged stock options granted
    on August&nbsp;19, 2003 based on executive performance for
    fiscal 2003. For fiscal 2004, all amounts are leveraged stock
    options granted on August&nbsp;17, 2004 based on executive
    performance for fiscal 2004. Effective June&nbsp;17, 2005, each
    of the named executive officers and the Corporation mutually
    agreed to cancel the named executive officers&#146; fiscal 2004
    leveraged stock options without consideration. For fiscal 2005,
    all amounts are leveraged stock options granted on
    August&nbsp;19, 2005 based on executive performance for fiscal
    2005.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Reflects the portion of EVA Plan bonus bank balance paid with
    respect to each fiscal year. See &#147;Compensation Committee
    Report on Executive Compensation.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    For fiscal 2003, includes $5,935 in matching contributions to
    the Plan for the executive officer and includes $629 of taxable
    employer paid group term life insurance. For fiscal 2004,
    includes $6,000 in matching contributions to the Plan for the
    executive officer and</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">24

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    includes $817 of taxable employer paid group term life
    insurance. For fiscal 2005, includes $6,335 in matching
    contributions to the Plan for the executive officer and includes
    $1,290 of taxable employer paid group term life insurance.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    For fiscal 2003, includes $5,740 in matching contributions to
    the Plan for the executive officer and includes $195 of taxable
    employer paid group term life insurance. For fiscal 2004,
    includes $6,173 in matching contributions to the Plan for the
    executive officer and includes $240 of taxable employer paid
    group term life insurance. For fiscal 2005, includes $6,430 in
    matching contributions to the Plan for the executive officer and
    includes $450 of taxable employer paid group term life insurance.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(6)&nbsp;</TD>
    <TD align="left">
    For fiscal 2003, includes $5,446 in matching contributions to
    the Plan for the executive officer and includes $839 of taxable
    employer paid group term life insurance. For fiscal 2004,
    includes $5,194 in matching contributions to the Plan for the
    executive officer and includes $1,047 of taxable employer paid
    group term life insurance. For fiscal 2005, includes $5,608 in
    matching contributions to the Plan for the executive officer and
    includes $1,980 of taxable employer paid group term life
    insurance.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(7)&nbsp;</TD>
    <TD align="left">
    For fiscal 2003, includes $2,583 in matching contributions to
    the Plan for the executive officer and includes $293 of taxable
    employer paid group term life insurance. For fiscal 2004,
    includes $2,780 in matching contributions to the Plan for the
    executive officer and includes $279 of taxable employer paid
    group term life insurance. For fiscal 2005, includes $2,911 in
    matching contributions to the Plan for the executive officer and
    includes $406 of taxable employer paid group term life insurance.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(8)&nbsp;</TD>
    <TD align="left">
    Mr.&nbsp;Guillot became an executive officer of the Corporation
    with his appointment as Vice President&nbsp;&#151; Mexican
    Operations of the Corporation in September 2004.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(9)&nbsp;</TD>
    <TD align="left">
    For fiscal 2005, includes $1,543 in matching contributions to
    the Plan for the executive officer and includes $377 of taxable
    employer paid group term life insurance.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Long-Term Incentive Plans&nbsp;&#151; Awards in Last Fiscal
Year</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As described in more detail in &#147;Compensation Committee
Report on Executive Compensation&#148; above, the EVA Plan
requires that any accrued bonus in excess of 125% of the target
bonus award be added to the outstanding Bonus Bank balance for
each executive officer and remain at risk. A negative bonus in
any year is subtracted from the outstanding Bonus Bank balance.
At the end of each year, 33% of the positive Bonus Bank balance
is paid out. The bonus amounts for fiscal 2005 were not in
excess of 125% of each target bonus award and, accordingly, no
amounts were added to the outstanding Bonus Bank balances for
the named executive officers during fiscal 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Stock Options</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Stock Incentive Plan approved by shareholders provides for
the granting of stock options with respect to Common Stock.
</DIV>

<P align="center" style="font-size: 10pt;">25

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following tables set forth further information relating to
stock options.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Option/ SAR Grants In Last Fiscal Year</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="32%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Potential Realizable</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Value at Assumed</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Annual Rates of</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>% of Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Stock Price</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Options/SARs</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Appreciation for</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of Securities</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Granted to</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Option Term ($)(1)</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Underlying Options/</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Employees in</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercise</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>SARs Granted (#)(1)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fiscal Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Price ($/Sh)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Expiration Date(1)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>5%</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>10%</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Harold M. Stratton&nbsp;II</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>26,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19.0</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>August&nbsp;17, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Patrick J. Hansen</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,990</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.3</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>August&nbsp;17, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Donald J. Harrod</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.2</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>August&nbsp;17, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kathryn E. Scherbarth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.3</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>August&nbsp;17, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Rolando J. Guillot</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.1</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>76.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>August&nbsp;17, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    The foregoing options originally were exercisable beginning on
    the third anniversary of the date of grant and terminated on the
    fifth anniversary of the date of grant. Effective June&nbsp;17,
    2005, each of the named executive officers and the Corporation
    mutually agreed to cancel these options without consideration.</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Aggregated Option/ SAR Exercises in Last Fiscal Year</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>and FY-End Option/ SAR Values*</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of Securities</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Value of Unexercised</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Underlying Unexercised</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>In-the-Money</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Options/SARs at</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Options/SARs at</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares Acquired</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Value Realized</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fiscal Year End (#)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fiscal Year End ($)</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>on Exercise (#)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>($)(1)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Exercisable/Unexercisable)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(Exercisable/Unexercisable)(2)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Harold M. Stratton&nbsp;II</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,312,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>58,475/25,490</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>330,157/0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Patrick J. Hansen</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,380</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>73,453</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,190/5,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0/0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Donald J. Harrod</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>96,127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,320/5,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0/0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kathryn E. Scherbarth</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>205,378</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,440/3,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24,972/0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Rolando J. Guillot</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,210/2,310</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0/0</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>*</TD>
    <TD align="left">
    No SARs are outstanding. Options at fiscal year end exclude
    leveraged stock options granted on August&nbsp;19, 2005, based
    on executive performance for fiscal 2005.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Value realized equals the market value of the common stock on
    the date of exercise, minus the exercise price, multiplied by
    the number of shares acquired on exercise.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    The value at fiscal year end is calculated based on a closing
    sale price of $53.82 on July&nbsp;1, 2005.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">26

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Retirement Plan and Supplemental Pension Plan</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Corporation maintains a defined benefit retirement plan (the
&#147;Retirement Plan&#148;) covering all executive officers and
substantially all other employees in the United States. Under
the Retirement Plan, nonbargaining unit employees receive an
annual pension payable on a monthly basis at retirement equal to
1.6% of the employee&#146;s average of the highest 5&nbsp;years
of compensation during the last 10 calendar years of service
prior to retirement multiplied by the number of years of
credited service, with an offset of 50% of Social Security
(prorated if years of credited service are less than 30).
Compensation under the Retirement Plan includes the compensation
as shown in the Summary Compensation Table under the heading
&#147;Salary and Bonus,&#148; subject to a maximum compensation
amount set by law ($210,000 in 2005).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Executive officers participate in a program which supplements
benefits under the Retirement Plan. Under the Supplemental
Executive Retirement Plan (the &#147;Supplemental Pension
Plan&#148;), executive officers are provided with additional
increments of (a)&nbsp;0.50% of compensation (as limited under
the Retirement Plan) per year of credited service over the
benefits payable under the Retirement Plan to nonbargaining unit
employees and (b)&nbsp;2.1% of the compensation exceeding the
Retirement Plan dollar compensation limit per year of credited
service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A Rabbi trust has been created for deposit of the aggregate
present value of the benefits described above for executive
officers.
</DIV>

<P align="center" style="font-size: 10pt;">27

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table shows total estimated annual benefits
payable from the Retirement Plan and the Supplemental Pension
Plan to executive officers upon normal retirement at age&nbsp;65
at specified compensation and years of service classifications
calculated on a single life basis and adjusted for the projected
Social Security offset:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="56%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Annual Pension Payable for Life</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>After Specified Years of Credited Service</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Average Annual Compensation in Highest 5 of Last 10 Calendar</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Years of Service</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>10&nbsp;Years</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>20&nbsp;Years</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>30&nbsp;Years</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>40&nbsp;Years</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    $100,000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>17,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>35,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>52,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>70,000*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;150,000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>84,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>105,000*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;200,000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>77,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>115,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>140,000*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;250,000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>49,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>98,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>147,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>175,000*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;300,000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>59,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>119,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>178,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>210,000*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;350,000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>70,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>140,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>210,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>245,000*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;400,000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>80,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>241,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>280,000*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;450,000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>91,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>182,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>273,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>315,000*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;500,000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>101,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>203,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>304,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>350,000*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;550,000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>112,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>224,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>336,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>385,000*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;600,000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>122,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>245,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>367,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>420,000*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;650,000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>133,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>266,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>399,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>455,000*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;700,000</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>143,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>287,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>430,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>490,000*</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    Figures reduced to reflect the maximum limitation under the
    plans of 70% of compensation.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The above table does not reflect limitations imposed by the
Internal Revenue Code of 1986, as amended, on pensions paid
under federal income tax qualified plans. However, an executive
officer covered by the Corporation&#146;s program will receive
the full pension to which he would be entitled in the absence of
such limitations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Employment Agreements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each named executive officer of the Corporation has signed an
employment agreement with the Corporation. The term of each
agreement automatically extends for one year each June&nbsp;30
unless either party gives 30&nbsp;days&#146; notice that the
agreement will not be further extended. Under the agreement, the
officer agrees to perform the duties currently being performed
in addition to other duties that may be assigned from time to
time. The Corporation agrees to pay the officer a salary of not
less than that of the previous year and to provide fringe
benefits that are provided to all other salaried employees of
the Corporation in comparable positions.
</DIV>

<P align="center" style="font-size: 10pt;">28

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Change of Control Employment Agreements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each executive officer of the Corporation has signed a change in
control employment agreement which guarantees the employee
continued employment following a &#147;change in control&#148;
on a basis equivalent to the employee&#146;s employment
immediately prior to such change in terms of position, duties,
compensation and benefits, as well as specified payments upon
termination following a change in control. The Corporation
currently has such agreements with the five named executive
officers. Such agreements become effective only upon a defined
change in control of the Corporation, or if the employee&#146;s
employment is terminated upon, or in anticipation of such a
change in control, and automatically supersede any existing
employment agreement. Under the agreements, if during the
employment term (three years from the change in control) the
employee is terminated other than for &#147;cause&#148; or if
the employee voluntarily terminates his employment for good
reason or during a 30-day window period one year after a change
in control, the employee is entitled to specified severance
benefits, including a lump sum payment of three times the sum of
the employee&#146;s annual salary and bonus and a
&#147;gross-up&#148; payment which will, in general, effectively
reimburse the employee for any amounts paid under federal excise
taxes.
</DIV>

<!-- link1 "ANNUAL REPORT TO THE SECURITIES AND EXCHANGE COMMISSION ON FORM 10-K" -->
<DIV align="left"><A NAME="014"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>ANNUAL REPORT TO THE SECURITIES AND</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>EXCHANGE COMMISSION ON FORM&nbsp;10-K</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Corporation is required to file an annual report, called a
Form&nbsp;10-K, with the Commission. A copy of Form&nbsp;10-K
for the fiscal year ended July&nbsp;3, 2005 will be made
available, without charge, to any person entitled to vote at the
Annual Meeting. Written request should be directed to Patrick J.
Hansen, Office of the Corporate Secretary, STRATTEC SECURITY
CORPORATION, 3333&nbsp;West Good Hope Road, Milwaukee, Wisconsin
53209.
</DIV>

<!-- link1 "SHAREHOLDER PROPOSALS" -->
<DIV align="left"><A NAME="015"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SHAREHOLDER PROPOSALS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Proposals which shareholders intend to present at the 2006
Annual Meeting of Shareholders pursuant to Rule&nbsp;14a-8 under
the Exchange Act must be received at the Corporation&#146;s
principal offices in Milwaukee, Wisconsin no later than
May&nbsp;1, 2006 for inclusion in the proxy material for that
meeting. Proposals submitted other than pursuant to
Rule&nbsp;14a-8 will be considered untimely if received after
July&nbsp;7, 2006 and the Corporation will not be required to
present any such proposal at the 2006 Annual Meeting of
Shareholders. If the Board of Directors decides to present a
proposal despite its untimeliness, the people named in the
proxies solicited by the Board of Directors for the 2006 Annual
Meeting of Shareholders will have the right to exercise
discretionary voting power with respect to such proposal.
</DIV>

<P align="center" style="font-size: 10pt;">29

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "OTHER MATTERS" -->
<DIV align="left"><A NAME="016"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>OTHER MATTERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The directors of the Corporation know of no other matters to be
brought before the meeting. If any other matters properly come
before the meeting, including any adjournment or adjournments
thereof, it is intended that proxies received in response to
this solicitation will be voted on such matters in the
discretion of the person or persons named in the accompanying
proxy form.
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="30%"></TD>
    <TD width="70%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    BY ORDER OF THE BOARD OF DIRECTORS</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    STRATTEC SECURITY CORPORATION</TD>
</TR>

<TR>
    <TD style="font-size: 48pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Patrick J. Hansen,</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Secretary</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Milwaukee, Wisconsin
</DIV>

<DIV align="left" style="font-size: 10pt;">
August&nbsp;29, 2005
</DIV>

<P align="center" style="font-size: 10pt;">30
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "APPENDIX A" -->
<DIV align="left"><A NAME="017"></A></DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>APPENDIX A</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AMENDED AND RESTATED</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>STRATTEC SECURITY CORPORATION</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>STOCK INCENTIVE PLAN</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(As amended and restated effective October&nbsp;4, 2005)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1.&nbsp;<I><U>Purpose; Definitions</U>.</I> The purpose of the
Plan is to enable key employees of the Company, its subsidiaries
and affiliates to participate in the Company&#146;s future by
offering them proprietary interests in the Company. The Plan
also provides a means through which the Company can attract and
retain key employees of merit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For purposes of the Plan, the following terms are defined as set
forth below:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;<I>&#147;Board&#148; </I>means the Board of Directors
    of the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;<I>&#147;Code&#148; </I>means the Internal Revenue Code
    of 1986, as amended from time to time, and any successor thereto.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;<I>&#147;Commission&#148; </I>means the Securities and
    Exchange Commission or any successor agency.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (d)&nbsp;<I>&#147;Committee&#148; </I>means the Committee
    referred to in Section&nbsp;2.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (e)&nbsp;<I>&#147;Company&#148; </I>means STRATTEC SECURITY
    CORPORATION, a corporation organized under the laws of the State
    of Wisconsin, or any successor corporation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (f)&nbsp;<I>&#147;Disability&#148; </I>means permanent and total
    disability as determined under procedures established by the
    Committee for purposes of the Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (g)&nbsp;<I>&#147;Early Retirement&#148; </I>means retirement,
    with the consent of and for purposes of the Company, from active
    employment with the Company, a subsidiary or affiliate pursuant
    to the early retirement provisions of the applicable pension
    plan of such employer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (h)&nbsp;<I>&#147;Exchange Act&#148; </I>means the Securities
    Exchange Act of 1934, as amended from time to time, and any
    successor thereto.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;<I>&#147;Fair Market Value&#148; </I>means, except as
    provided in Sections&nbsp;5(k) and 6(b)(ii): (i)&nbsp;with
    respect to Non-Qualified Stock Options granted in connection
    with the distribution of Stock made by Briggs&nbsp;&#38;
    Stratton Corporation to its shareholders, the average closing
    price of the Stock on the NASDAQ National Market System during
    the five trading days after the effective date of such
    distribution; and (ii)&nbsp;in all other instances, the mean, as
    of any given date, between the highest and lowest reported sales
    prices of the Stock on the NASDAQ National Market System or, if
    no such sale of Stock occurs on the NASDAQ National Market
    System on such date, the fair market value of the Stock as
    determined by the Committee in good faith.</TD>
</TR>

</TABLE>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (j)&nbsp;<I>&#147;Incentive Stock Option&#148; </I>means any
    Stock Option intended to be and designated as an &#147;incentive
    stock option&#148; within the meaning of Section&nbsp;422 of the
    Code.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (k)&nbsp;<I>&#147;Non-Employee Director&#148; </I>shall have the
    meaning set forth in Rule&nbsp;16b-3(b)(3)(i), as promulgated by
    the Commission under the Exchange Act, or any successor
    definition adopted by the Commission.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (l)&nbsp;<I>&#147;Non-Qualified Stock Option&#148; </I>means any
    Stock Option that is not an Incentive Stock Option.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (m)&nbsp;<I>&#147;Normal Retirement&#148; </I>means retirement
    from active employment with the Company, a subsidiary or
    affiliate at or after age&nbsp;65.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (n)&nbsp;<I>&#147;Plan&#148; </I>means the Amended and Restated
    STRATTEC SECURITY CORPORATION Stock Incentive Plan, as set forth
    herein and as hereinafter amended from time to time.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (o)&nbsp;<I>&#147;Restricted Stock&#148; </I>means an award
    under Section&nbsp;7.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (p)&nbsp;<I>&#147;Retirement&#148; </I>means Normal Retirement
    or Early Retirement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (q)&nbsp;<I>&#147;Rule&nbsp;16b-3&#148; </I>means
    Rule&nbsp;16b-3, as promulgated by the Commission under
    Section&nbsp;16(b) of the Exchange Act, as amended from time to
    time.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (r)&nbsp;<I>&#147;Stock&#148; </I>means the Common Stock,
    $.01&nbsp;par value per share, of the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (s)&nbsp;<I>&#147;Stock Appreciation Right&#148; </I>means a
    right granted under Section&nbsp;6.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (t)&nbsp;<I>&#147;Stock Option&#148; </I>or
    <I>&#147;Option&#148; </I>means an Option or Leveraged Stock
    Option granted under Section&nbsp;5.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the terms &#147;Change in Control&#148; and
&#147;Change in Control Price&#148; have the meanings set forth
in Sections&nbsp;8(b) and (c), respectively, and other
capitalized terms used herein shall have the meanings ascribed
to such terms in the relevant section of this Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.&nbsp;<I><U>Administration</U>.</I> The Plan shall be
administered by the Compensation Committee of the Board or such
other committee of the Board, composed solely of two or more
Non-Employee Directors, who shall be appointed by the Board and
who shall serve at the pleasure of the Board. If at any time no
Committee shall be in office, the functions of the Committee
specified in the Plan shall be exercised by the Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Committee shall have plenary authority to grant to eligible
employees, pursuant to the terms of the Plan, Stock Options,
Stock Appreciation Rights and Restricted Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In particular, the Committee shall have the authority, subject
to the terms of the Plan:
</DIV>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;to select the officers and other key employees to whom
    Stock Options, Stock Appreciation Rights and Restricted Stock
    may from time to time be granted;</TD>
</TR>

</TABLE>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;to determine whether and to what extent Incentive Stock
    Options, Non-Qualified Stock Options, Stock Appreciation Rights
    and Restricted Stock or any combination thereof are to be
    granted hereunder,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;to determine the number of shares to be covered by each
    award granted hereunder,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (d)&nbsp;to determine the terms and conditions of any award
    granted hereunder (including, but not limited to, the share
    price, any restriction or limitation and any vesting
    acceleration or forfeiture waiver regarding any Stock Option or
    other award and the shares of Stock relating thereto, based on
    such factors as the Committee shall determine);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (e)&nbsp;to adjust the performance goals and measurements
    applicable to performance-based awards pursuant to the terms of
    the Plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (f)&nbsp;to determine under what circumstances a Stock Option
    may be settled in cash or Restricted Stock under
    Section&nbsp;5(k);&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (g)&nbsp;to determine to what extent and under what
    circumstances Stock and other amounts payable with respect to an
    award shall be deferred.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The Committee shall have the authority to adopt, alter and
repeal such administrative rules, guidelines and practices
governing the Plan as it shall, from time to time, deem
advisable, to interpret the terms and provisions of the Plan and
any award issued under the Plan (and any agreement relating
thereto) and to otherwise supervise the administration of the
Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Committee may act only by a majority of its members then in
office, except that the members thereof may authorize any one or
more of their number or any officer of the Company to execute
and deliver documents on behalf of the Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any determination made by the Committee pursuant to the
provisions of the Plan with respect to any award shall be made
in its sole discretion at the time of the grant of the award or,
unless in contravention of any express term of the Plan, at any
time thereafter. All decisions made by the Committee pursuant to
the provisions of the Plan shall be final and binding on all
persons, including the Company and Plan participants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3.&nbsp;<I><U>Stock Subject to Plan</U>.</I> The total number of
shares of Stock reserved and available for distribution under
the Plan shall be 1,700,000&nbsp;shares. Such shares may
consist, in whole or in part, of authorized and unissued shares
or treasury shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to Section&nbsp;6(b)(iv), if any shares of Stock that
have been optioned cease to be subject to a Stock Option, if any
shares of Stock that are subject to a Restricted Stock award are
forfeited or if any Stock Option or other award otherwise
terminates without a payment being made to the participant in
the form of Stock, such shares shall again be available for
distribution in connection with awards under the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the event of any merger, reorganization, consolidation,
recapitalization, stock dividend, stock split or other change in
corporate structure affecting the Stock, such substitution or
</DIV>

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<DIV align="left" style="font-size: 10pt;">
adjustments shall be made in the aggregate number of shares
reserved for issuance under the Plan, in the number and option
price of shares subject to outstanding Stock Options and in the
number of shares subject to other outstanding awards granted
under the Plan as may be determined to be appropriate by the
Board, in its sole discretion; provided, however, that the
number of shares subject to any award shall always be a whole
number. Such adjusted option price shall also be used to
determine the amount payable by the Company upon the exercise of
any Stock Appreciation Right associated with any Stock Option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4.&nbsp;<I><U>Eligibility</U>.</I> Officers and other key
employees of the Company, its subsidiaries and affiliates (but
excluding members of the Committee and any person who serves
only as a director) who are responsible for or contribute to the
management, growth and profitability of the business of the
Company, its subsidiaries or affiliates are eligible to be
granted awards under the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5.&nbsp;<I><U>Stock Options</U>.</I> Stock Options may be
granted alone or in addition to other awards granted under the
Plan and may be of two types: Incentive Stock Options and
Non-Qualified Stock Options. Any Stock Option granted under the
Plan shall be in such form as the Committee may from time to
time approve.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to the limitations contained herein, the Committee shall
have the authority to grant to any optionee Incentive Stock
Options, Non-Qualified Stock Options or both types of Stock
Options (in each case with or without Stock Appreciation Rights).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Incentive Stock Options may be granted only to employees of the
Company and its subsidiaries (within the meaning of
Section&nbsp;425(f) of the Code). To the extent that any Stock
Option does not qualify as an Incentive Stock Option, it shall
constitute a separate Non-Qualified Stock Option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stock Options shall be evidenced by option agreements, the terms
and provisions of which may differ. An option agreement shall
indicate on its face whether it is an agreement for Incentive
Stock Options or NonQualified Stock Options. The grant of a
Stock Option shall occur on the date the Committee by resolution
selects an employee as a participant in any grant of Stock
Options, determines the number of Stock Options to be granted to
such employee and specifies the terms and provisions of the
option agreement. The Company shall notify a participant of any
grant of Stock Options, and a written option agreement or
agreements shall be duly executed and delivered by the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Anything in the Plan to the contrary notwithstanding, no term of
the Plan relating to Incentive Stock Options shall be
interpreted, amended or altered nor shall any discretion or
authority granted under the Plan be exercised so as to
disqualify the Plan under Section&nbsp;422 of the Code or,
without the consent of the optionee affected, to disqualify any
Incentive Stock Option under such Section&nbsp;422.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Options granted under the Plan shall be subject to the following
terms and conditions and shall contain such additional terms and
conditions as the Committee shall deem desirable:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;<I><U>Option Price</U>.</I> The option price per share
    of Stock purchasable under a Stock Option shall be equal to the
    Fair Market Value of the Stock at time of grant or such higher
    price as shall be determined by the Committee at grant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;<I><U>Option Term</U>.</I> The term of each Stock
    Option shall be fixed by the Committee, but no Incentive Stock
    Option shall be exercisable more than 10&nbsp;years after the
    date the Option is granted, and no Non-Qualified Stock Option
    shall be exercisable more than 10&nbsp;years and one day after
    the date the Option is granted.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;<I><U>Exercisability</U>.</I> Stock Options shall be
    exercisable at such time or times and subject to such terms and
    conditions as shall be determined by the Committee. If the
    Committee provides that any Stock Option is exercisable only in
    installments, the Committee may at any time waive such
    installment exercise provisions, in whole or in part, based on
    such factors as the Committee may determine.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (d)&nbsp;<I><U>Method of Exercise</U>.</I> Subject to the
    provisions of this Section&nbsp;5, Stock Options may be
    exercised, in whole or in part, at any time during the option
    period by giving written notice of exercise to the Company
    specifying the number of shares to be purchased.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Such notice shall be accompanied by the payment in full of the
    purchase price for such shares or, to the extent authorized by
    the Committee, by irrevocable instructions to a broker to
    promptly pay to the Company in full the purchase price for such
    shares. Such payment shall be made in cash, outstanding shares
    of Stock, in combinations thereof, or any other method of
    payment approved by the Committee; provided, however, that the
    deposit of any withholding tax shall be made in accordance with
    applicable law. If shares of Stock are being used in part or
    full payment for the shares to be acquired upon exercise of the
    Stock Option, such shares shall be valued for the purpose of
    such exchange as of the date of exercise of the Stock Option at
    the Fair Market Value of the shares. Any certificates evidencing
    shares of Stock used to pay the purchase price shall be
    accompanied by stock powers duly endorsed in blank by the
    registered holder of the certificate (with signatures thereon
    guaranteed). In the event the certificates tendered by the
    holder in such payment cover more shares than are required for
    such payment, the certificate shall also be accompanied by
    instructions from the holder to the Company&#146;s transfer
    agent with regard to the disposition of the balance of the
    shares covered thereby.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    If payment of the option exercise price of a Non-Qualified Stock
    Option is made in whole or in part in the form of Restricted
    Stock, such Restricted Stock (and any replacement shares
    relating thereto) shall remain (or be) restricted in accordance
    with the original terms of the Restricted Stock award in
    question, and any additional Stock received upon the exercise
    shall be subject to the same forfeiture restrictions, unless
    otherwise determined by the Committee.</TD>
</TR>

</TABLE>

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    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    No shares of Stock shall be issued until full payment therefor
    has been made. Subject to any forfeiture restrictions that may
    apply if a Stock Option is exercised using Restricted Stock, an
    optionee shall have all of the rights of a stockholder of the
    Company, including the right to vote the shares and the right to
    receive dividends, with respect to shares subject to the Stock
    Option when the optionee has given written notice of exercise,
    has paid in full for such shares and, if requested, has given
    the representation described in Section&nbsp;12(a).</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (e)&nbsp;<I><U>Non-transferability of Options</U>.</I> No Stock
    Option shall be transferable by the optionee other than by will
    or by laws of descent and distribution, and all Stock Options
    shall be exercisable, during the optionee&#146;s lifetime, only
    by the optionee or by the guardian or legal representative of
    the optionee, it being understood that the terms
    &#147;holder&#148; and &#147;optionee&#148; include the guardian
    and legal representative of the optionee named in the option
    agreement and any person to whom an option is transferred by
    will or the laws of descent and distribution.</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (f)&nbsp;<I><U>Termination by Death</U>.</I> Subject to
    Section&nbsp;5(j), if an optionee&#146;s employment terminates
    by reason of death, any Stock Option held by such optionee may
    thereafter be exercised, to the extent then exercisable or on
    such accelerated basis as the Committee may determine, for a
    period of one year (or such other period as the Committee may
    specify) from the date of such death or until the expiration of
    the stated term of such Stock Option, whichever period is the
    shorter.</TD>
</TR>

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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (g)&nbsp;<I><U>Termination by Reason of Disability</U>.</I>
    Subject to Section&nbsp;5(j), if an optionee&#146;s employment
    terminates by reason of Disability, any Stock Option held by
    such optionee may thereafter be exercised by the optionee, to
    the extent it was exercisable at the time of termination or on
    such accelerated basis as the Committee may determine, for a
    period of three years (or such shorter period as the Committee
    may specify at grant) from the date of such termination of
    employment or until the expiration of the stated term of such
    Stock Option, whichever period is the shorter; provided,
    however, that, if the optionee dies within such three-year
    period (or such shorter period), any unexercised Stock Option
    held by such optionee shall, notwithstanding the expiration of
    such three-year (or such shorter) period, continue to be
    exercisable to the extent to which it was exercisable at the
    time of death for a period of 12&nbsp;months from the date of
    such death or until the expiration of the stated term of such
    Stock Option, whichever period is the shorter. In the event of
    termination of employment by reason of Disability, if an
    Incentive Stock Option is exercised after the expiration of the
    exercise periods that apply for purposes of Section&nbsp;422 of
    the Code, such Stock Option will thereafter be treated as a
    Non-Qualified Stock Option.</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (h)&nbsp;<I><U>Termination by Reason of Retirement</U>.</I>
    Subject to Section&nbsp;5(j), if an optionee&#146;s employment
    terminates by reason of Retirement, any Stock Option held by
    such optionee may thereafter be exercised by the optionee, to
    the extent it was exercisable at the time of such Retirement or
    on such accelerated basis as the Committee may determine, for a
    period of three years (or such shorter period as the Committee
    may specify at grant) from the date of such termination of
    employment or until the expiration of the stated term of</TD>
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    such Stock Option, whichever period is the shorter, provided,
    however, that, if the optionee dies within such three-year (or
    such shorter) period any unexercised Stock option held by such
    optionee shall, notwithstanding the expiration of such
    three-year (or such shorter) period, continue to be exercisable
    to the extent to which it was exercisable at the time of death
    for a period of 12&nbsp;months from the date of such death or
    until the expiration of the stated term of such Stock Option,
    whichever period is the shorter. In the event of termination of
    employment by reason of Retirement, if an Incentive Stock Option
    is exercised after the expiration of the exercise periods that
    apply for purposes of Section&nbsp;422 of the Code, such Stock
    Option will thereafter be treated as a Non-Qualified Stock
    Option.</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;<I><U>Other Termination</U>.</I> Unless otherwise
    determined by the Committee, if an optionee&#146;s employment
    terminates for any reason other than death, Disability or
    Retirement, the Stock Option shall thereupon terminate, except
    that such Stock Option, to the extent then exercisable, may be
    exercised for the lesser of three months or the balance of such
    Stock Option&#146;s term if the optionee is involuntarily
    terminated by the Company, a subsidiary or affiliate without
    cause. Notwithstanding the foregoing, if an optionee&#146;s
    employment terminates at or after a Change in Control (as
    defined in Section&nbsp;8(b)), other than by reason of death,
    Disability or Retirement, any Stock Option held by such optionee
    shall be exercisable for the lesser of (x)&nbsp;six months and
    one day, and (y)&nbsp;the balance of such Stock Option&#146;s
    term pursuant to Section&nbsp;5(b).</TD>
</TR>

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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (j)&nbsp;<I><U>Incentive Stock Option Limitations</U>.</I> To
    the extent required for &#147;incentive stock option&#148;
    status under Section&nbsp;422 of the Code, the aggregate Fair
    Market Value (determined as of the time of grant) of the Stock
    with respect to which Incentive Stock Options granted after 1986
    are exercisable for the first time by the optionee during any
    calendar year under the Plan and any other stock option plan of
    any subsidiary or parent corporation (within the meaning of
    Section&nbsp;425 of the Code) after 1986 shall not exceed
    $100,000.</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    The Committee is authorized to provide at grant that, to the
    extent permitted under Section&nbsp;422 of the Code, if a
    participant&#146;s employment with the Company and its
    subsidiaries is terminated by reason of death, Disability or
    Retirement and the portion of any Incentive Stock Option that is
    otherwise exercisable during the post-termination period
    specified under Sections&nbsp;5(f), (g), or (h), applied without
    regard to this Section&nbsp;5(j), is greater than the portion of
    such option that is exercisable as an &#147;incentive stock
    option&#148; during such post-termination period under
    Section&nbsp;422, such post-termination period shall
    automatically be extended (but not beyond the original option
    term) to the extent necessary to permit the optionee to exercise
    such Incentive Stock Option (either as an Incentive Stock Option
    or, if exercised after the expiration periods that apply for the
    purposes of Section&nbsp;422, as a Non-Qualified Stock Option).</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (k)&nbsp;<I><U>Cashing Out of Option; Settlement of Spread Value
    in Restricted Stock</U>.</I> On receipt of written notice of
    exercise, the Committee may elect to cash out all or part of the
    portion of any Stock Option to be exercised by paying the
    optionee an amount, in cash or</TD>
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    Stock, equal to the excess of the Fair Market Value of the Stock
    over the option price (the &#147;Spread Value&#148;) on the
    effective date of such cash out.</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Cash outs relating to options held by optionees who are actually
    or potentially subject to Section&nbsp;16(b) of the Exchange Act
    shall comply with the provisions of Rule&nbsp;16b-3, to the
    extent applicable, and, in the case of cash outs of
    Non-Qualified Stock Options held by such optionees, the
    Committee may determine Fair Market Value under the pricing rule
    set forth in Section&nbsp;6(b)(ii).</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    In addition, if the option agreement so provides at grant or is
    amended after grant and prior to exercise to so provide (with
    the optionee&#146;s consent), the Committee may require that all
    or part of the shares to be issued with respect to the Spread
    Value payable in the event of a cash out of an unexercised Stock
    Option or the Spread Value portion of an exercised Stock Option
    take the form of Restricted Stock, which shall be valued on the
    date of exercise on the basis of the Fair Market Value of such
    Restricted Stock, determined without regard to the forfeiture
    restrictions involved. Notwithstanding any other provision of
    this Plan, upon a Change in Control (as defined in
    Section&nbsp;8(b)) other than a Change in Control specified in
    clause&nbsp;(i) of Section&nbsp;8(b) arising as a result of
    beneficial ownership (as defined therein) by the Participant of
    Outstanding Company Common Stock or Outstanding Company Voting
    Securities (as such terms are defined below), in the case of
    Stock Options other than Stock Options held by an officer or
    director of the Company (within the meaning of Section&nbsp;16
    of the Exchange Act) which were granted less than six months
    prior to the Change in Control, during the 60-day period from
    and after a Change in Control (the &#147;Exercise Period&#148;),
    unless the Committee shall determine otherwise at the time of
    grant, an optionee shall have the right, in lieu of the payment
    of the exercise price of the shares of Stock being purchased
    under the Stock Option and by giving notice to the Company, to
    elect (within the Exercise Period) to surrender all or part of
    the Stock Option to the Company and to receive cash, within
    30&nbsp;days of such notice, in an amount equal to the amount by
    which the &#147;Change in Control Price&#148; (as defined in
    Section&nbsp;10(c)) per share of Stock on the date of such
    election shall exceed the exercise price per share of Stock
    under the Stock Option multiplied by the number of shares of
    Stock granted under the Stock Option as to which the right
    granted under this Section&nbsp;5(k) shall have been exercised.</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (l)&nbsp;<I><U>Leveraged Stock Options</U>.</I> Any of the
    shares of Stock reserved and available for distribution under
    the Plan may be used for grants of &#147;Leveraged Stock
    Options&#148; pursuant to the Company&#146;s Leveraged Stock
    Option Program described below (the &#147;LSO Program&#148;).</TD>
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    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;<I><U>Objectives</U>.</I> The LSO Program is designed
    to build upon the Company&#146;s Economic Value Added Incentive
    Compensation Plan (&#147;EVA Plan&#148;) by tying the interests
    of certain senior executives (&#147;Senior Executives&#148;) to
    the long term consolidated results of the Company. In this way,
    the objectives of Senior Executives will be more closely aligned
    with the Company&#146;s shareholders. Whereas the EVA Plan
    provides for near and intermediate term rewards, the LSO Program
    provides a longer</TD>
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    term focus by allowing Senior Executives to participate in the
    long-term appreciation in the equity value of the Company. In
    general, the LSO Program is structured such that each year an
    amount equivalent to the Total Bonus Payout under the EVA Plan
    is invested on behalf of Senior Executives in options on the
    Company&#146;s Stock (&#147;LSOs&#148;). These LSOs become
    exercisable after they have been held for three years, and they
    expire at the end of five years. The LSO Program is also
    structured so that a fair return must be provided to the
    Company&#146;s shareholders before the options become valuable.</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;<I><U>Leveraged Stock Option Grant</U>.</I> For fiscal
    1995 and subsequent years, the dollar amount to be invested in
    LSOs for each Senior Executive shall be equal to the amount of
    each Senior Executive&#146;s Total Bonus Payout determined under
    the EVA Plan effective for the applicable fiscal year. The
    number of LSOs awarded shall be determined by dividing
    (a)&nbsp;the dollar amount of such LSO award by (b)&nbsp;10% of
    the Fair Market Value of Company stock on the date of the grant,
    as determined by the Committee, rounded (up or down) to the
    nearest 10&nbsp;shares.</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iii)&nbsp;<I><U>Term</U>.</I> All LSOs shall be exercisable
    beginning on the third anniversary of the date of grant, and
    shall terminate on the fifth anniversary of the date of grant
    unless sooner exercised, unless the Committee determines other
    dates.</TD>
</TR>

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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iv)&nbsp;<I><U>Exercise Price</U>.</I> The exercise price for
    LSOs shall be the product of 90% of the Fair Market Value per
    share as determined above, times the sum taken to the fifth
    (5th) power of (a)&nbsp;1, plus (b)&nbsp;the Estimated Annual
    Growth Rate, but in no event may the exercise price be less than
    Fair Market Value on the date of grant. The Estimated Annual
    Growth Rate (intended to represent annual percentage stock
    appreciation at least in the amount of the Company&#146;s cost
    of capital, with due consideration for dividends paid, risk and
    illiquidity) is the average daily closing 10-year
    U.S.&nbsp;Treasury note yield rate for the month of April
    immediately preceding the relevant Plan year, plus 2%. So,</TD>
</TR>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Exercise Price = (.9 &#215; FMV) &#215; (1 + Estimated Annual
Growth
Rate)<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>
</DIV>

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    <TD>&nbsp;</TD>
    <TD>Example:&nbsp;</TD>
    <TD align="left">
    $15&nbsp;share price; 9.75% Estimated Annual Growth Rate (7.75%
    10-year U.S.&nbsp;Treasury note rate, plus 2%): $13.50 (90% FMV)
    &#215;
    (1.0975)<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>
    = $21.50</TD>
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    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (v)&nbsp;<I><U>Limitations on LSO Grants and Carryover</U>.</I>
    Notwithstanding subsection&nbsp;(l)(ii), the maximum number of
    LSOs that may be granted to all Senior Executives for any Plan
    year, shall be 40,000. In the event that the 40,000 limitation
    shall be in effect for any Plan year, the dollar amount to be
    invested for each Senior Executive shall be reduced by proration
    based on the aggregate Total Bonus Payouts of all Senior
    Executives so that the limitation is not exceeded. The amount of
    any such reduction shall be carried forward to subsequent years
    and invested in LSOs to the extent the annual limitation is not
    exceeded in such years.</TD>
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    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (vi)&nbsp;<I><U>The Plan</U>.</I> Except as modified herein,
    LSOs are Incentive Stock Options to the extent they are eligible
    for treatment as such under Section&nbsp;422 of the Internal
    Revenue Code. If not eligible for Incentive Stock Option
    treatment, the LSOs shall constitute Non-Qualified Stock
    Options. Except as specifically modified herein, LSOs shall be
    governed by the terms of the Plan.</TD>
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6.&nbsp;<I><U>Stock Appreciation Rights</U>.</I>
</DIV>

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(a)&nbsp;<I><U>Grant and Exercise</U>.</I> Stock Appreciation
Rights may be granted in conjunction with all or part of any
Stock Option granted under the Plan. In the case of a
Non-Qualified Stock Option, such rights may be granted either at
or after the time of grant of such Stock Option. In the case of
an Incentive Stock Option, such rights may be granted only at
the time of grant of such Stock Option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A Stock Appreciation Right or applicable portion thereof granted
with respect to a given Stock Option shall terminate and no
longer be exercisable upon the termination or exercise of the
related Stock Option, except that, unless otherwise determined
by the Committee at the time of grant, a Stock Appreciation
Right granted with respect to less than the full number of
shares covered by a related Stock Option shall not be reduced
until the number of shares covered by an exercise or termination
of the related Stock Option exceeds the number of shares not
covered by the Stock Appreciation Right.
</DIV>

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A Stock Appreciation Right may be exercised by an optionee in
accordance with Section&nbsp;6(b) by surrendering the applicable
portion of the related Stock Option in accordance with
procedures established by the Committee. Upon such exercise and
surrender, the optionee shall be entitled to receive an amount
determined in the manner prescribed in Section&nbsp;6(b). Stock
Options which have been so surrendered shall no longer be
exercisable to the extent the related Stock Appreciation Rights
have been exercised.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;<I><U>Terms and Conditions</U>.</I> Stock Appreciation
Rights shall be subject to such terms and conditions as shall be
determined by the Committee, including the following:
</DIV>

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    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;Stock Appreciation Rights shall be exercisable only at
    such time or times and to the extent that the Stock Options to
    which they relate are exercisable in accordance with the
    provisions of Section&nbsp;5 and this Section&nbsp;6.</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;Upon the exercise of a Stock Appreciation Right, an
    optionee shall be entitled to receive an amount in cash, shares
    of Stock or both equal in value to the excess of the Fair Market
    Value of one share of Stock over the option price per share
    specified in the related Stock Option multiplied by the number
    of shares in respect of which the Stock Appreciation Right shall
    have been exercised, with the Committee having the right to
    determine the form of payment.</TD>
</TR>

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    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    In the case of Stock Appreciation Rights relating to Stock
    Options held by optionees who are actually or potentially
    subject to Section&nbsp;16(b) of the Exchange Act, the Committee
    may require that such Stock Appreciation Rights be exercised
    only in accordance with the applicable provisions of
    Rule&nbsp;16b-3.</TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iii)&nbsp;Stock Appreciation Rights shall be transferable only
    when and to the extent that the underlying Stock Option would be
    transferable under Section&nbsp;5(e).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iv)&nbsp;Upon the exercise of a Stock Appreciation Right, the
    Stock Option or part thereof to which such Stock Appreciation
    Right is related shall be deemed to have been exercised for the
    purpose of the limitation set forth in Section&nbsp;3 on the
    number of shares of Stock to be issued under the Plan, but only
    to the extent of the number of shares issued under the Stock
    Appreciation Right at the time of exercise based on the value of
    the Stock Appreciation Right at such time.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7.&nbsp;<I><U>Restricted Stock</U>.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;<I><U>Administration</U>.</I> Shares of Restricted
Stock may be issued either alone or in addition to other awards
granted under the Plan. The Committee shall determine the
officers and key employees to whom and the time or times at
which grants of Restricted Stock will be made, the number of
shares to be awarded, the time or times within which such awards
may be subject to forfeiture and any other terms and conditions
of the awards, in addition to those contained in
Section&nbsp;7(c).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Committee may condition the grant of Restricted Stock upon
the attainment of specified performance goals or such other
factors or criteria as the Committee shall determine. The
provisions of Restricted Stock awards need not be the same with
respect to each recipient.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;<I><U>Awards and Certificates</U>.</I> Each participant
receiving a Restricted Stock award shall be issued a certificate
in respect of such shares of Restricted Stock. Such certificate
shall be registered in the name of such participant and shall
bear an appropriate legend referring to the terms, conditions,
and restrictions applicable to such award, substantially in the
following form:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    &#147;The transferability of this certificate and the shares of
    stock represented hereby are subject to the terms and conditions
    (including forfeiture) of the STRATTEC SECURITY CORPORATION
    Stock Incentive Plan. Copies of such Plan and Agreement are on
    file at the offices of STRATTEC SECURITY CORPORATION,
    3333&nbsp;West Good Hope Road, Glendale, Wisconsin
    53209-2043.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    The Committee may require that the certificates evidencing such
    shares be held in custody by the Company until the restrictions
    thereon shall have lapsed and that, as a condition of any
    Restricted Stock award, the participant shall have delivered a
    stock power, endorsed in blank, relating to the Stock covered by
    such award.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;<I><U>Terms and Conditions</U>.</I> Shares of
Restricted Stock shall be subject to the following terms and,
conditions:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;Subject to the provisions of the Plan and the
    Restricted Stock Agreement referred to in Section&nbsp;7(c)(vi),
    during a period set by the Committee, commencing with the date
    of such award (the &#147;Restriction Period&#148;), the
    participant shall not be permitted to sell, assign, transfer,
    pledge or otherwise encumber shares of Restricted Stock. Within
    these limits and subject to Section&nbsp;7(c)(iv), the Committee
    may provide for the lapse of</TD>
</TR>

</TABLE>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    such restrictions in installments and may accelerate or waive
    such restrictions, in whole or in part, based on service,
    performance and such other factors or criteria as the Committee
    may determine.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;Except as provided in this paragraph&nbsp;(ii), and
    Section&nbsp;7(c)(i), the participant shall have, with respect
    to the shares of Restricted Stock, all of the rights of a
    stockholder of the Company, including the right to vote the
    shares and the right to receive any cash dividends. Unless
    otherwise determined by the Committee, cash dividends shall be
    automatically deferred and reinvested in additional Restricted
    Stock and dividends payable in Stock shall be paid in the form
    of Restricted Stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iii)&nbsp;Except to the extent otherwise provided in the
    applicable Restricted Stock Agreement and Sections&nbsp;7(c)(i)
    and (iv), upon termination of a participant&#146;s employment
    for any reason during the Restriction Period, all shares still
    subject to restriction shall be forfeited by the participant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iv)&nbsp;Except to the extent that an award of Restricted Stock
    is issued in lieu of cash compensation or in settlement of the
    spread value of Stock Options pursuant to Section&nbsp;5(k), the
    Restriction Period for any grant of shares of Restricted Stock
    under this Plan shall comply with the following: (A)&nbsp;with
    respect to shares of Restricted Stock that vest or otherwise
    become unrestricted based upon the participant&#146;s continued
    employment with the Company, the minimum Restriction Period
    shall be three years from the date of grant and after the end of
    such three year period the restrictions may lapse as to shares
    of Restricted Stock either immediately or in installments as
    determined by the Committee; and (B)&nbsp;at the discretion of
    the Committee, the remaining restrictions may be waived or lapse
    prior to the end of the Restriction Period in the event of the
    participant&#146;s death, Disability or Retirement or in
    connection with certain transactions that may involve a Change
    in Control as provided in Section&nbsp;8 of this Plan. Shares of
    Restricted Stock that are awarded in lieu of cash compensation
    or pursuant to Section&nbsp;5(k) may have any Restriction Period
    as may be determined by the Committee. For purposes of this
    Section&nbsp;7(c)(iv), shares of Restricted Stock shall be
    deemed to have been awarded in lieu of cash compensation to the
    extent that the aggregate Fair Market Value of the shares of
    Restricted Stock on the date of grant is not greater than the
    amount of any cash compensation that the participant agrees to
    forego as a condition to the grant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (v)&nbsp;In the event of hardship or other special circumstances
    of a participant whose employment is involuntarily terminated
    (other than for cause), the Committee may waive in whole or in
    part any or all remaining restrictions with respect to such
    participant&#146;s shares of Restricted Stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (vi)&nbsp;If and when the Restriction Period expires without a
    prior forfeiture of the Restricted Stock subject to such
    Restriction Period, unlegended certificates for such shares
    shall be delivered to the participant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (vii)&nbsp;Each award shall be confirmed by, and be subject to
    the terms of, a Restricted Stock Agreement.</TD>
</TR>

</TABLE>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (viii)&nbsp;Notwithstanding the terms of Section&nbsp;7(a), the
    maximum number of shares of Restricted Stock that may be granted
    to all participants for any Plan year, shall be 10,000.
    Moreover, the maximum number of shares of Restricted Stock that
    may be granted to any one individual for any Plan year is 20% of
    the total number of shares of Restricted Stock awarded in that
    Plan year.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
8.&nbsp;<I><U>Change In Control Provisions</U>.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;<I><U>Impact of Event</U>.</I> Notwithstanding any
other provision of the Plan to the contrary, in the event of a
Change in Control (as defined in Section&nbsp;8(b)):
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;Any Stock Appreciation Rights and Stock Options
    outstanding as of the date such Change in Control is determined
    to have occurred and not then exercisable and vested shall
    become fully exercisable and vested to the full extent of the
    original grant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;The restrictions applicable to any Restricted Stock
    shall lapse and such Restricted Stock shall become free of all
    restrictions and fully vested to the full extent of the original
    grant.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;<I><U>Definition of Change in Control</U>.</I> For
purposes of the Plan, a &#147;Change in Control&#148; shall mean
the happening of any of the following events:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;The acquisition by any individual, entity or group
    (within the meaning of Section&nbsp;13(d) (3)&nbsp;or 14(d)(2)
    of the Securities Exchange Act of 1934, as amended (the
    &#147;Exchange Act&#148;)) (a &#147;Person&#148;) of beneficial
    ownership (within the meaning of Rule&nbsp;13d-3 promulgated
    under the Exchange Act) of 20% or more of either (i)&nbsp;the
    then outstanding shares of Stock of the Company (the
    &#147;outstanding Company Common Stock&#148;) or (ii)&nbsp;the
    combined voting power of the then outstanding voting securities
    of the Company entitled to vote generally in the election of
    directors (the &#147;Outstanding Company Voting
    Securities&#148;); provided, however, that the following
    acquisitions shall not constitute a Change in Control:
    (i)&nbsp;any acquisition directly from the Company,
    (ii)&nbsp;any acquisition by the Company, (iii)&nbsp;any
    acquisition by any employee benefit plan (or related trust)
    sponsored or maintained by the Company or any corporation
    controlled by the Company or (iv)&nbsp;any acquisition by any
    corporation pursuant to a transaction described in
    clauses&nbsp;(i), (ii)&nbsp;and (iii)&nbsp;of
    paragraph&nbsp;(3)&nbsp;of this subsection&nbsp;(b)&nbsp;of this
    Section&nbsp;8;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;Individuals who, as of February&nbsp;27, 1995,
    constitute the Board (the &#147;Incumbent Board&#148;) cease for
    any reason to constitute at least a majority of the Board;
    provided, however, that any individual becoming a director
    subsequent to February&nbsp;27, 1995 whose election, or
    nomination for election by the Company&#146;s shareholders, was
    approved by a vote of at least a majority of the directors then
    comprising the Incumbent Board shall be considered as though
    such individual were a member of the Incumbent Board, but
    excluding, for this purpose, any such individual whose initial
    assumption of office occurs as a result of an actual or
    threatened election contest with respect to the election or
    removal of directors or other actual or threatened solicitation
    of proxies or consents by or on behalf of a Person other than
    the Board;&nbsp;or</TD>
</TR>

</TABLE>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iii)&nbsp;Approval by the shareholders of the Company of a
    reorganization, merger or consolidation (a &#147;Business
    Combination&#148;), in each case, unless, following such
    Business Combination, (i)&nbsp;all or substantially all of the
    individuals and entities who were the beneficial owners,
    respectively, of the Outstanding Company Common Stock and
    Outstanding Company Voting Securities immediately prior to such
    Business Combination beneficially own, directly or indirectly,
    more than 60% of, respectively, the then outstanding shares of
    common stock and the combined voting power of the then
    outstanding voting securities entitled to vote generally in the
    election of directors, as the case may be, of the corporation
    resulting from such Business Combination (including, without
    limitation, a corporation which as a result of such transaction
    owns the Company through one or more subsidiaries) in
    substantially the same proportions as their ownership,
    immediately prior to such Business Combination of the
    Outstanding Company Common Stock and Outstanding Company Voting
    Securities, as the case may be, (ii)&nbsp;no Person (excluding
    any employee benefit plan (or related trust) of the Company or
    such corporation resulting from such Business Combination)
    beneficially owns, directly or indirectly, 20% or more of,
    respectively, the then outstanding shares of common stock of the
    corporation resulting from such Business Combination or the
    combined voting power of the then outstanding voting securities
    of such corporation except to the extent that such ownership
    existed prior to the Business Combination and (iii)&nbsp;at
    least a majority of the members of the board of directors of the
    corporation resulting from such Business Combination were
    members of the Incumbent Board at the time of the execution of
    the initial agreement, or of the action of the Board, providing
    for such Business Combination;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iv)&nbsp;Approval by the shareholders of the Company of
    (i)&nbsp;a complete liquidation or dissolution of the Company or
    (ii)&nbsp;the sale or other disposition of all or substantially
    all of the assets of the Company, other than to a corporation,
    with respect to which following such sale or other disposition,
    (A)&nbsp;more than 60% of, respectively, the then outstanding
    shares of common stock of such corporation and the combined
    voting power of the then outstanding voting securities of such
    corporation entitled to vote generally in the election of
    directors is then beneficially owned, directly or indirectly, by
    all or substantially all of the individuals and entities who
    were the beneficial owners, respectively, of the Outstanding
    Company Common Stock and Outstanding Company Voting Securities
    immediately prior to such sale or other disposition in
    substantially the same proportion as their ownership,
    immediately prior to such sale or other disposition, of the
    Outstanding Company Common Stock and Outstanding Company Voting
    Securities, as the case may be, (B)&nbsp;less than 20% of,
    respectively, the then outstanding shares of common stock of
    such corporation and the combined voting power of the then
    outstanding voting securities of such corporation entitled to
    vote generally in the election of directors is then beneficially
    owned, directly or indirectly, by any Person (excluding any
    employee benefit plan (or related trust) of the Company or such
    corporation), except to the extent that such Person owned 20% or
    more of the Outstanding Company Common Stock or Outstanding
    Company Voting Securities prior to the sale or disposition and
    (C)&nbsp;at least a majority of the members of the board of
    directors of such corporation were members of the Incumbent
    Board at the time of the</TD>
</TR>

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
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    <TD>&nbsp;</TD>
    <TD align="left">
    execution of the initial agreement, or of the action of the
    Board, providing for such sale or other disposition of assets of
    the Company or were elected, appointed or nominated by the Board.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;<I><U>Change in Control Price</U>.</I> For purposes of
the Plan, &#147;Change in Control Price&#148; means the highest
price per share paid in any transaction reported on the NASDAQ
National Market System or paid or offered in any bona fide
transaction related to a potential or actual change in control
of the Company at any time during the preceding 60&nbsp;day
period as determined by the Committee, except that, in the case
of Incentive Stock Options and Stock Appreciation Rights
relating to Incentive Stock Options, such price shall be based
only on transactions reported for the date on which the
Committee decides to cash out such options.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
9.&nbsp;<I><U>Amendments and Termination</U>.</I> The Board may
amend, alter or discontinue the Plan but no amendment,
alteration or discontinuation shall be made (i)&nbsp;which would
impair the rights of an optionee under a Stock Option or a
recipient of a Stock Appreciation Right or Restricted Stock
award theretofore granted without the optionee&#146;s or
recipient&#146;s consent or (ii)&nbsp;which, without the
approval of the Company&#146;s stockholders, would:
</DIV>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;except as expressly provided in the Plan, increase the
    total number of shares reserved for the purpose of the Plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;except as expressly provided in the Plan, decrease the
    option price of any Stock Option to less than the Fair Market
    Value on the date of grant;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;change the class of employees eligible to participate
    in the Plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (d)&nbsp;extend the maximum option period under
    Section&nbsp;5(b);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (e)&nbsp;otherwise materially increase the benefits to
    participants in the Plan;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (f)&nbsp;amend Section&nbsp;10 or this Section&nbsp;9.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Committee may amend the terms of any Stock Option or other
award theretofore granted, prospectively or retroactively, but
no such amendment shall impair the rights of any holder without
the holder&#146;s consent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to the above provisions, the Board shall have authority
to amend the Plan to take into account changes in law and tax
and accounting rules, as well as other developments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
10.&nbsp;<I><U>Repricing</U>.</I> Except for adjustments
pursuant to Section&nbsp;3, neither the per share option price
for any Stock Option granted pursuant to Section&nbsp;5 or the
per share grant price for any Stock Appreciation Right granted
pursuant to Section&nbsp;6 may be decreased after the date of
grant nor may an outstanding Stock Option or an outstanding
Stock Appreciation Right be surrendered to the Company as
consideration for the grant of a new Stock Option or new Stock
Appreciation Right with a lower exercise or grant price without
the approval of the Company&#146;s stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
11.&nbsp;<I><U>Unfunded Status of Plan</U>.</I> It is presently
intended that the Plan constitute an &#147;unfunded&#148; plan
for incentive and deferred compensation. The Committee may
authorize the
</DIV>

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<DIV align="left" style="font-size: 10pt;">
creation of trusts or other arrangements to meet the obligations
created under the Plan to deliver Stock or make payments;
provided, however, that, unless the Committee otherwise
determines, the existence of such trusts or other arrangements
is consistent with the &#147;unfunded&#148; status of the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
12.&nbsp;<I><U>General Provisions</U>.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;The Committee may require each person purchasing shares
pursuant to a Stock Option to represent to and agree with the
Company in writing that the optionee or participant is acquiring
the shares without a view to the distribution thereof. The
certificates for such shares may include any legend which the
Committee deems appropriate to reflect any restrictions on
transfer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All certificates for shares of Stock or other securities
delivered under the Plan shall be subject to such stock transfer
orders and other restrictions as the Committee may deem
advisable under the rules, regulations and other requirements of
the Commission, any stock exchange upon which the Stock is then
listed and any applicable federal or state securities law, and
the Committee may cause a legend or legends to be put on any
such certificates to make appropriate reference to such
restrictions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;Nothing contained in this Plan shall prevent the
Company, a subsidiary or affiliate from adopting other or
additional compensation arrangements for its employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;The adoption of the Plan shall not confer upon any
employee any right to continued employment nor shall it
interfere in any way with the right of the Company, a subsidiary
or affiliate to terminate the employment of any employee at any
time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;No later than the dates as of which an amount first
becomes includable in the gross income of the participant for
federal income tax purposes with respect to any award under the
Plan, the participant shall pay to the Company, or make
arrangements satisfactory to the Company regarding the payment
of, any federal, state, local or foreign taxes of any kind
required by law to be withheld with respect to such amount.
Unless otherwise determined by the Company, withholding
obligations may be settled with Stock, including Stock that is
part of the award that gives rise to the withholding
requirement. The obligations of the Company under the Plan shall
be conditional on such payment or arrangements, and the Company,
its subsidiaries and affiliates shall, to the extent permitted
by law, have the right to deduct any such taxes from any payment
otherwise due to the participant.
</DIV>

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(e)&nbsp;At the time of grant, the Committee may provide in
connection with any grant made under this Plan that the shares
of Stock received as a result of such grant shall be subject to
a right of first refusal pursuant to which the participant shall
be required to offer to the Company any shares that the
participant wishes to sell at the then Fair Market Value of the
Stock, subject to such other terms and conditions as the
Committee may specify at the time of grant.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(f)&nbsp;The Committee shall establish such procedures as it
deems appropriate for a participant to designate a beneficiary
to whom any amounts payable in the event of the
participant&#146;s death are to be paid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(g)&nbsp;The Plan and all awards made and actions taken
thereunder shall be governed by and construed in accordance with
the laws of the State of Wisconsin.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(h)&nbsp;The reinvestment of dividends in additional Restricted
Stock at the time of any dividend payment shall only be
permissible if sufficient shares of Stock are available under
Section&nbsp;3 for such reinvestment (taking into account then
outstanding Stock Options and other Plan awards).
</DIV>

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<DIV align="left"><A NAME="018"></A></DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>APPENDIX B</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Charter of the</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Audit Committee</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>of the</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Board of Directors</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>of</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>STRATTEC SECURITY CORPORATION</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>(as amended and restated as of August&nbsp;19, 2005)</B>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>A.</B></TD>
    <TD>
    <B><U>Purpose</U>.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee is established by the Board of Directors to
monitor the corporate financial reporting and the internal and
external audits of STRATTEC SECURITY CORPORATION (the
&#147;Company&#148;). The Audit Committee is directly
responsible for the appointment, compensation and oversight of
the work of the Company&#146;s independent auditors, including
the resolution of disagreements between management and the
auditor regarding financial reporting. The Audit Committee shall
assist the Board of Directors with oversight of (i)&nbsp;the
integrity of the Company&#146;s financial statements, the
accounting and financial reporting process of the Company and
the audits of the financial statements of the Company;
(ii)&nbsp;the Company&#146;s compliance with legal and
regulatory requirements; (iii)&nbsp;the independent
auditor&#146;s qualifications and independence and (iv)&nbsp;the
performance of the Company&#146;s internal accounting function
and the performance of the independent auditors. In addition,
the Audit Committee will undertake those specific duties and
responsibilities listed below and such other duties as the Board
of Directors from time to time prescribe.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The function of the Audit Committee is oversight. The management
of the Company is responsible for the preparation, presentation
and integrity of the Company&#146;s financial statements.
Management is responsible for maintaining appropriate accounting
and financial reporting principles and policies and internal
controls and procedures designed to assure compliance with
accounting standards and applicable laws and regulations. The
independent auditors are responsible for planning and carrying
out a proper audit and reviews, including reviews of the
Company&#146;s quarterly financial statements prior to the
filing of each quarterly report on Form&nbsp;10-Q, and other
procedures. In fulfilling their responsibilities under this
charter, it is recognized that members of the Audit Committee
are not full-time employees of the Company and are not, and do
not represent themselves to be, accountants or auditors by
profession. As such, it is not the duty or responsibility of the
Audit Committee or its members to conduct auditing or accounting
reviews or procedures, and each member of the Audit Committee
shall be entitled to rely on (a)&nbsp;the integrity of those
persons and organizations within and outside the Company from
whom it receives information and (b)&nbsp;the accuracy of the
financial and other information provided to the Audit Committee
by such persons or organizations.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The independent auditors for the Company are ultimately
accountable to the Audit Committee and the Board of Directors.
The Audit Committee has the direct authority and responsibility
to select, evaluate and, where appropriate, replace the
independent auditors (or to nominate the independent auditors to
be proposed for stockholder approval in the proxy statement).
The Company shall provide the Audit Committee with appropriate
funding for payment of compensation, fees and expenses to the
independent auditors and to counsel or other advisors that the
Audit Committee may deem appropriate to engage.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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</TR>

<TR valign="top">
    <TD><B>B.</B></TD>
    <TD>
    <B><U>Membership</U>.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee will consist of at least three members of
the Board who are &#147;independent directors&#148; within the
meaning of the rules of the Securities and Exchange Commission
and the rules of the Nasdaq Stock Market, each of whom shall not
be an officer or employee of the Company or its subsidiaries,
shall not have any relationship which, in the opinion of the
Board of Directors, would interfere with the exercise of
independent judgment in carrying out the responsibilities of a
director and shall otherwise satisfy the applicable membership
requirements under the rules of the Nasdaq Stock Market. In
fulfilling their responsibilities under this charter, it is
recognized that members of the Audit Committee are not and do
not represent themselves to be, accountants or auditors by
profession, but who are deemed by the Board of Directors to be
&#147;financially literate.&#148; A &#147;financially
literate&#148; director is one who is able to read and
understand fundamental financial statements, including the
Company&#146;s balance sheet, income statement and cash flow
statement. At least one member of the Audit Committee shall be
an &#147;audit committee financial expert&#148; as may be
defined by the rules of the Securities and Exchange Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The members of the Audit Committee shall be elected by the Board
of Directors to hold such office until their successors have
been duly elected and qualified. Unless a chairperson is elected
by the Board, the members of the Committee may designate a
chairperson by majority vote of the full Committee membership.
</DIV>

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    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>C.</B></TD>
    <TD>
    <B><U>Responsibilities</U>.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The responsibilities of the Audit Committee shall include:
</DIV>

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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    1.&nbsp;Reviewing on a continuing basis the adequacy of the
    Company&#146;s system of internal control over financial
    reporting and the Company&#146;s disclosure controls and
    procedures;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    2.&nbsp;Reviewing on a continuing basis the activities,
    organizational structure and qualifications of the
    Company&#146;s internal accounting function;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    3.&nbsp;Reviewing the independent auditors&#146; proposed audit
    scope and approach, including, when applicable, audit procedures
    with respect to the Company&#146;s internal control over
    financial reporting;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    4.&nbsp;Reviewing with management and the independent auditors
    the audited financial statements and audit findings, including
    any significant suggestions for improvements</TD>
</TR>

</TABLE>

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    <TD>&nbsp;</TD>
    <TD align="left">
    provided to management by the independent auditors and any
    serious difficulties or disputes with management encountered
    during the course of the audit, and reviewing the other
    financial disclosures in the Company&#146;s Form&nbsp;10-K
    report, including Management&#146;s Discussion and Analysis of
    Financial Condition and Results of Operations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    5.&nbsp;Having a predetermined arrangement with the independent
    auditors that they will advise the Audit Committee through its
    Chair and management of the Company of any significant or
    material issues identified through procedures followed for
    interim quarterly financial statements, and that such
    notification as required under standards for communication with
    Audit Committees is to be made prior to the related press
    release or, if not practicable, prior to filing the
    Company&#146;s Form&nbsp;10-Q for that quarter, and receiving
    either an oral or written communication provided by the
    independent auditors at the end of each of the first three
    quarters of the year that they have nothing to report or
    enumerate as to the required reporting issues to the Audit
    Committee Chair;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    6.&nbsp;Approving the appointment of the independent auditors,
    subject, if applicable, to stockholder ratification;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    7 Approving fee arrangements with the independent auditors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    8.&nbsp;Reviewing the performance and qualifications of the
    independent auditors and reviewing the experience and
    qualifications of the senior members of the independent auditor
    team, compliance by the independent auditors with audit partner
    rotation requirements and the quality control procedures of the
    independent auditors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    9.&nbsp;Approving in advance the retention of the independent
    auditor firm for any non-audit service that such firm is not
    prohibited from performing for the Company in accordance with
    any policies and procedures that may be adopted by the Audit
    Committee and approving the fees for any such service;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    10.&nbsp;Ensuring that the independent auditors prepare and
    deliver annually a Statement as to Independence (it being
    understood that the independent auditors are responsible for the
    accuracy and completeness of this Statement), and discussing
    with the independent auditors any relationships or services
    disclosed in this Statement that may impact the objectivity and
    independence of the Company&#146;s independent auditors and to
    recommend that the Board of Directors take appropriate action in
    response to this Statement to satisfy itself of the independent
    auditors&#146; independence;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    11.&nbsp;Reviewing reports from the independent auditors
    regarding (a)&nbsp;critical accounting policies used by the
    Company in its financial statements, (b)&nbsp;all alternative
    treatments of financial information within generally accepted
    accounting principles that the independent auditors have
    discussed with management, ramifications of the use of such
    alternative treatments and the treatment preferred by the
    independent auditors, and (c)&nbsp;other material written
    communications between the independent auditors and management;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    12.&nbsp;Recommending to the Board of Directors guidelines for
    hiring of employees of the independent auditor who have been
    engaged on the Company&#146;s account;</TD>
</TR>

</TABLE>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    13.&nbsp;Advising the Board of Directors with respect to the
    Company&#146;s policies and procedures regarding compliance with
    applicable laws and regulations and with the Company&#146;s Code
    of Business Ethics and Insider Trading Compliance Program;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    14.&nbsp;Reviewing with management and the independent auditors
    the effect of any significant regulatory and accounting
    initiatives;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    15.&nbsp;Obtaining from the independent auditors assurance that
    Section&nbsp;10A of the Securities Exchange Act of 1934 has not
    been implicated;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    16.&nbsp;Meeting periodically with management and the
    independent auditors in separate executive sessions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    17.&nbsp;Reviewing, in conjunction with counsel, any legal
    matters that could have a significant impact on the
    Company&#146;s financial statements;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    18.&nbsp;Providing oversight and review of the Company&#146;s
    asset management policies, including an annual review of the
    Company&#146;s investment policies and performance for cash and
    short-term investments, and the Company&#146;s risk assessment
    and risk management policies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    19.&nbsp;If necessary, instituting special investigations and,
    if appropriate, hiring special counsel or experts to assist;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    20.&nbsp;Reviewing related party transactions (as defined in the
    Nasdaq rules) for potential conflicts of interest and approving
    related party transactions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    21.&nbsp;Establishing procedures for the receipt, retention and
    treatment of complaints received by the Company regarding
    accounting, internal accounting controls or auditing matters for
    the confidential, anonymous submission by employees of the
    Company or its subsidiaries of concerns regarding questionable
    accounting or auditing matters;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    22.&nbsp;Performing other oversight functions as requested by
    the full Board of Directors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    23.&nbsp;Reviewing and updating the Audit Committee&#146;s
    charter annually and recommending any proposed changes to the
    Board of Directors for approval;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    24.&nbsp;Instructing the independent accountants that the
    independent accountants are ultimately responsible to the Board
    of Directors and the Audit Committee;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    25.&nbsp;Preparing any report, including any report of the Audit
    Committee required by the rules of the Securities and Exchange
    Commission to be included in the proxy statement for the
    Company&#146;s annual meeting.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In performing the foregoing functions, the Audit Committee
should review in particular any areas where the Company&#146;s
management and its independent accountants disagree and the
manner in which such disagreements were resolved. The Audit
Committee should determine whether the independent accountants
were generally satisfied with the audit and bring to the
</DIV>

<P align="center" style="font-size: 10pt;">B-4

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
attention of the Company&#146;s Board of Directors any problems
identified during the course of the audit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors shall review annually the scope of
responsibilities of the Audit Committee and the effectiveness
with which the Audit Committee has carried out its
responsibilities during the foregoing year. The Audit Committee
shall report to the Board of Directors and shall have such power
and authority as is necessary for it to fulfill its
responsibilities. The Audit Committee shall perform such
functions and retain such authority until otherwise provided by
the Board of Directors or unless any such matter is specifically
approved by the Board of Directors. The Chief Financial Officer
of the Company shall be responsible for providing all
information requested by the Audit Committee to perform its
duties as set forth herein.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>D.</B></TD>
    <TD>
    <B><U>Meetings</U>.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee will meet at least twice each year. The
Audit Committee may establish its own schedule which it will
provide to the Board of Directors in advance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee will meet with the independent auditors of
the Company, at such times as it deems appropriate, to review
the independent auditor&#146;s examination and management report.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>E.</B></TD>
    <TD>
    <B><U>Reports</U>.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee will record its summaries of recommendations
to the Board in written form which will be incorporated as a
part of the minutes of the Board of Directors at which those
recommendations are presented.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>F.</B></TD>
    <TD>
    <B><U>Minutes</U>.</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee will maintain written minutes of its
meetings, which minutes will be filed with the minutes of the
meetings of the Board of Directors.
</DIV>

<P align="center" style="font-size: 10pt;">B-5
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top"><B>STRATTEC SECURITY CORPORATION<BR>
3333 West Good Hope Road<BR>
Milwaukee, WI 53209</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom"><B>proxy</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center"><DIV style="font-size: 3pt; margin-top: 1pt; width: 100%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>STRATTEC SECURITY CORPORATION<BR>
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby appoints Harold M. Stratton II and Patrick J. Hansen, or either one of
them, with full power of substitution and resubstitution, as proxy or proxies of the undersigned to
attend the Annual Meeting of Shareholders of STRATTEC SECURITY CORPORATION to be held on Tuesday,
October&nbsp;4, 2005 at 8:00 a.m., local time, at the Manchester East Hotel, 7065 North Port Washington
Road, Milwaukee, WI 53217, and at any adjournment thereof, there to vote all shares of Common Stock
which the undersigned would be entitled to vote if personally present as specified upon the
following matters and in their discretion upon such other matters as may properly come before the
meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby acknowledges receipt of the Notice of Annual Meeting of Shareholders
and accompanying Proxy Statement, ratifies all that said proxies or their substitutes may lawfully
do by virtue hereof, and revokes all former proxies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please sign exactly as your name appears hereon, date and return this Proxy. <B>UNLESS OTHERWISE SPECIFIED, THIS PROXY WILL BE VOTED TO GRANT AUTHORITY TO ELECT
THE NOMINATED DIRECTOR AND TO APPROVE THE AMENDED AND RESTATED STRATTEC SECURITY CORPORATION STOCK INCENTIVE PLAN. IF OTHER MATTERS COME BEFORE THE MEETING,
THIS PROXY WILL BE VOTED IN ACCORDANCE WITH THE BEST JUDGMENT OF THE PROXIES APPOINTED.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><I>See reverse for voting instructions.</I><BR><br>
<FONT style="font-variant: SMALL-CAPS"><B>Please detach here </B></FONT></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="border-bottom: 1px dashed #000000; font-size: 1px">&nbsp;</DIV></DIV>

<DIV align="center">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="14" align="center"><DIV style="margin-left:0px; text-indent:-0px"><b>STRATTEC SECURITY CORPORATION 2005 ANNUAL MEETING&nbsp;</b></div></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ELECTION OF DIRECTOR:<I>(term<br>expiring at the 2008 Annual Meeting)</I>
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top" align="left"><B>01 &nbsp; Michael J. Koss</B>
</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD nowrap align="left" valign="top">Vote FOR<br>
the nominee
</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD nowrap align="left" valign="top">Vote WITHHELD<br>
from the nominee</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">APPROVAL OF THE PROPOSAL TO AMEND
AND RESTATE THE STRATTEC SECURITY CORPORATION STOCK INCENTIVE PLAN
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings">&#111;</FONT></TD>

    <TD nowrap align="left" valign="top">Vote FOR<br>
the proposal
</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD nowrap align="left" valign="top">Vote AGAINST<br>
the proposal
</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD align="left" valign="top">Abstain</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" valign="top" align="left">In their discretion, the Proxies are authorized to vote such other matters as may properly come before the meeting.</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 9pt; margin-top: 12pt"><B>THIS
PROXY WHEN PROPERLY EXECUTED WILL BE VOTED AS DIRECTED OR, IF NO
DIRECTION IS GIVEN, WILL BE VOTED <u>FOR</u> PROPOSAL 1 AND <u>FOR</u> PROPOSAL 2.</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Address change? Mark box&nbsp;<FONT face="Wingdings">&#111;</FONT><br>
Indicate changes below:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"  style="border-left: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</td>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature(s) in Box<br>
If signing as attorney, executor, administrator, trustee or
guardian, please add your full title as such. If shares
are held by two or more persons, all holders must sign the
Proxy.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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