<SUBMISSION>
<ACCESSION-NUMBER>0000950148-07-000113
<TYPE>DEF 14A
<PUBLIC-DOCUMENT-COUNT>4
<PERIOD>20070619
<FILING-DATE>20070430
<DATE-OF-FILING-DATE-CHANGE>20070430
<EFFECTIVENESS-DATE>20070430
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>BIG 5 SPORTING GOODS CORP
<CIK>0001156388
<ASSIGNED-SIC>5940
<IRS-NUMBER>954388794
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>DEF 14A
<ACT>34
<FILE-NUMBER>000-49850
<FILM-NUMBER>07801567
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2525 EAST EL SEGUNDO BOULEVARD
<CITY>EL SEGUNDO
<STATE>CA
<ZIP>90245-4632
<PHONE>3102977706
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2525 EAST EL SEGUNDO BOULEVARD
<CITY>EL SEGUNDO
<STATE>CA
<ZIP>90245-4632
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>BIG 5 HOLDINGS CORP
<DATE-CHANGED>20010802
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>v29611def14a.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>def14a</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 14pt; margin-top: 6pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>SCHEDULE 14A</B>
</DIV>
<DIV align="center" style="font-size: 12pt; margin-top: 0pt">(RULE 14a-101)
</DIV>



<DIV align="center" style="font-size: 12pt; margin-top: 12pt">Proxy Statement
Pursuant to Section&nbsp;14(a) of the Securities<BR>
Exchange Act of 1934 (Amendment No.&nbsp;&nbsp;)</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Filed by the
Registrant <FONT face="wingdings" size="2">&#254;</FONT><BR>
Filed by a Party other than the Registrant <FONT face="wingdings" size="2">&#111;</FONT>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box:

</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Preliminary Proxy Statement</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD><B>Confidential, for Use of the Commission Only (as permitted by
Rule&nbsp;14a-</B><B>6(e)(2)</B><B>)</B></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#254;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Definitive Proxy Statement</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Definitive Additional Materials</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Soliciting Material Pursuant to &#167;240.14a-12</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt">&nbsp;</DIV>

<DIV align="center">BIG 5 SPORTING GOODS CORPORATION</DIV>
<DIV align="center" style="font-size: 10pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
(Name of Registrant as Specified In Its Charter)</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">&nbsp;</DIV>

<DIV align="center">
</DIV>
<DIV align="center" style="font-size: 10pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Payment of Filing Fee
(Check the appropriate box):

</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#254;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>No fee required.</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(1) and
0-11.</TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(1)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Title of each class of securities to which transaction applies:</TD>
</TR>

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

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(2)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Aggregate number of securities to which transaction applies:</TD>
</TR>

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

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(3)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Per unit price or other underlying value of transaction computed pursuant to
Exchange Act
Rule&nbsp;0-11 (set forth the amount on which the filing fee is calculated and
state how it was
determined):</TD>
</TR>

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

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(4)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Proposed maximum aggregate value of transaction:</TD>
</TR>

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

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(5)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Total fee paid:</TD>
</TR>

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

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Fee paid previously with preliminary materials.</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>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>

</TABLE>
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(1)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Amount Previously Paid:</TD>
</TR>

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

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(2)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Form, Schedule or Registration Statement No.:</TD>
</TR>

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

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(3)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Filing Party:</TD>
</TR>

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

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(4)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Date Filed:</TD>
</TR>

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

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="v29611v2961100.gif" alt="BIG 5 LOGO" >
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">BIG 5
    SPORTING GOODS CORPORATION<BR>
    2525 EAST EL SEGUNDO BOULEVARD<BR>
    EL SEGUNDO, CALIFORNIA 90245<BR>
    <BR>
    May&#160;4, 2007</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dear Fellow Stockholder:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You are cordially invited to attend the Annual Meeting of
    Stockholders of Big 5 Sporting Goods Corporation (the
    &#147;Company&#148;), to be held at the Ayres Hotel, 14400
    Hindry Avenue, Hawthorne, California 90250 on June&#160;19, 2007
    at 10:00&#160;a.m. local time and at any adjournments or
    postponements thereof (the &#147;Annual Meeting&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the Annual Meeting, you will be asked to consider and vote
    upon the following matters:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    1.&#160;&#160;
</TD>
    <TD align="left">
    The election of two Class&#160;B directors to the Company&#146;s
    Board of Directors, each to hold office until the 2010 annual
    meeting of stockholders (and until each such director&#146;s
    successor shall have been duly elected and qualified);
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;&#160;The approval of the Company&#146;s 2007 Equity and
    Performance Incentive Plan;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;&#160;The transaction of such other business as may
    properly come before the Annual Meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Accompanying this letter is the formal Notice of Annual Meeting,
    Proxy Statement, Proxy Card relating to the meeting and the
    Company&#146;s 2006 Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Your vote is very important regardless of how many shares you
    own. We hope you can attend the annual meeting in person.
    However, whether or not you plan to attend the annual meeting,
    please complete, sign, date and return the Proxy Card in the
    enclosed envelope. If you attend the annual meeting, you may
    vote in person if you wish, even though you may have previously
    returned your Proxy Card.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sincerely,
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <IMG src="v29611v2961101.gif" alt="Steven G. Miller" >
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Steven G. Miller
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Chairman of the Board, President
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    and Chief Executive Officer
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<!-- TOC -->
<A name="toc"><DIV align="CENTER"><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">ANNUAL MEETING</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">PROPOSAL 1 ELECTION OF DIRECTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">PROPOSAL 2 APPROVAL OF 2007 EQUITY AND PERFORMANCE INCENTIVE PLAN</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">STOCKHOLDER PROPOSALS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">ANNUAL REPORT ON FORM 10-K</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">APPENDIX A</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">ARTICLE II Purpose</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">ARTICLE III Composition</A></TD></TR>
<TR><TD colspan="9"><A HREF="#008">ARTICLE IV Responsibilities</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">Appendix B</A></TD></TR>
<TR><TD colspan="9"><A HREF="#010">BIG 5 SPORTING GOODS CORPORATION 2007 EQUITY AND PERFORMANCE INCENTIVE PLAN</A></TD></TR>
<TR><TD colspan="9"><A HREF="#011">RECITALS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#012">ARTICLE I PURPOSE OF THE PLAN</A></TD></TR>
<TR><TD colspan="9"><A HREF="#013">ARTICLE II DEFINITIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#014">ARTICLE III SHARES SUBJECT TO THE PLAN</A></TD></TR>
<TR><TD colspan="9"><A HREF="#015">ARTICLE IV ELIGIBILITY AND ADMINISTRATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#016">ARTICLE V OPTIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#017">ARTICLE VI STOCK APPRECIATION RIGHTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#018">ARTICLE VII RESTRICTED STOCK AWARDS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#019">ARTICLE VIII OTHER STOCK UNIT AWARDS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#020">ARTICLE IX PERFORMANCE AWARDS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#021">ARTICLE X CODE SECTION 162(m) PROVISIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#022">ARTICLE XI CHANGE OF CONTROL PROVISIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#023">ARTICLE XII GENERALLY APPLICABLE PROVISIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#024">ARTICLE XIII MISCELLANEOUS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#025">PROXY</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">BIG 5
    SPORTING GOODS CORPORATION<BR>
    2525 EAST EL SEGUNDO BOULEVARD<BR>
    EL SEGUNDO, CALIFORNIA 90245</FONT></B>
</DIV>

<DIV style="margin-top: 11pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTICE OF
    ANNUAL MEETING OF STOCKHOLDERS<BR>
    TO BE HELD ON JUNE&#160;19, 2007</FONT></B>
</DIV>

<DIV style="margin-top: 11pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    TO THE STOCKHOLDERS OF BIG 5 SPORTING GOODS CORPORATION:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    NOTICE IS HEREBY GIVEN that an Annual Meeting of Stockholders of
    Big 5 Sporting Goods Corporation, a Delaware corporation (the
    &#147;Company&#148;), will be held on June&#160;19, 2007 at
    10:00&#160;a.m. local time, at the Ayres Hotel, 14400 Hindry
    Avenue, Hawthorne, California 90250 and at any adjournments or
    postponements thereof (the &#147;Annual Meeting&#148;). At the
    Annual Meeting, the Company&#146;s stockholders will be asked to
    consider and vote upon:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    1.&#160;&#160;
</TD>
    <TD align="left">
    The election of two Class&#160;B directors to the Company&#146;s
    Board of Directors, each to hold office until the 2010 annual
    meeting of stockholders (and until each such director&#146;s
    successor shall have been duly elected and qualified);
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    2.&#160;&#160;
</TD>
    <TD align="left">
    The approval of the Company&#146;s 2007 Equity and Performance
    Incentive Plan pursuant to which the Company may grant options,
    stock appreciation rights, restricted stock, performance awards,
    other stock unit awards and dividend equivalents with respect to
    a maximum of 2,399,250&#160;shares of the Company&#146;s common
    stock, plus certain shares subject to awards granted under
    specified existing plans, and pursuant to which the Company may
    settle or pay certain awards in cash or equity;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    3.&#160;&#160;
</TD>
    <TD align="left">
    The transaction of such other business as may properly come
    before the Annual Meeting or any adjournments or postponements
    thereof.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Only stockholders of record of the Company&#146;s common stock
    at the close of business on April&#160;24, 2007 are entitled to
    notice of and to vote at the Annual Meeting or any adjournments
    or postponements thereof. A list of stockholders entitled to
    vote at the Annual Meeting will be available for inspection at
    the principal executive offices of the Company, 2525 East El
    Segundo Boulevard, El Segundo, California 90245 for at least ten
    days prior to the meeting and will also be available for
    inspection at the meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    YOUR VOTE IS VERY IMPORTANT. TO ENSURE THAT YOUR SHARES&#160;ARE
    REPRESENTED AT THE ANNUAL MEETING, YOU ARE URGED TO COMPLETE,
    DATE AND SIGN THE ENCLOSED PROXY CARD AND MAIL IT PROMPTLY IN
    THE POSTAGE PAID ENVELOPE PROVIDED, WHETHER OR NOT YOU PLAN TO
    ATTEND THE ANNUAL MEETING IN PERSON.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>If you plan to attend:</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Please note that admission to the meeting will be on a
    first-come, first-served basis. Each stockholder may be asked to
    present valid picture identification, such as a driver&#146;s
    license or passport, and proof of ownership of the
    Company&#146;s common stock as of the record date, such as the
    enclosed Proxy or a brokerage statement reflecting stock
    ownership as of the record date.</I></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    BY ORDER OF THE BOARD OF DIRECTORS,
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;<IMG src="v29611v2961102.gif" alt="-s- Gary S. Meade" >
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Gary S. Meade
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Secretary
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    El Segundo, California
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    May&#160;4, 2007
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<!-- TOC -->
<!-- /TOC -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">BIG 5
    SPORTING GOODS CORPORATION<BR>
    2525 EAST EL SEGUNDO BOULEVARD<BR>
    EL SEGUNDO, CALIFORNIA 90245</FONT></B>
</DIV>

<DIV style="margin-top: 11pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->



<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>PROXY STATEMENT RELATING TO</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>ANNUAL MEETING OF STOCKHOLDERS</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">To Be Held On June&#160;19,
    2007</FONT></B>
</DIV>

<DIV style="margin-top: 11pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This Proxy Statement is being furnished to the stockholders of
    Big 5 Sporting Goods Corporation, a Delaware corporation (the
    &#147;Company&#148;), in connection with the solicitation of
    proxies by the Company&#146;s Board of Directors for use at the
    Annual Meeting of the Company&#146;s stockholders to be held on
    June&#160;19, 2007 at 10:00&#160;a.m. local time at the Ayres
    Hotel, 14400 Hindry Avenue, Hawthorne, California 90250, and at
    any adjournments or postponements thereof (the &#147;Annual
    Meeting&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the Annual Meeting, holders of the Company&#146;s common
    stock, $0.01&#160;par value per share, will be asked to vote
    upon: (i)&#160;the election of two Class&#160;B directors to the
    Company&#146;s Board of Directors, each to hold office until the
    2010 annual meeting of stockholders (and until each such
    director&#146;s successor shall have been duly elected and
    qualified); (ii)&#160;the approval of the Company&#146;s 2007
    Equity and Performance Incentive Plan (the &#147;2007 Equity and
    Performance Incentive Plan&#148;) and (iii)&#160;any other
    business that properly comes before the Annual Meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This Proxy Statement and the accompanying Proxy Card are first
    being mailed to the Company&#146;s stockholders on or about
    May&#160;4, 2007. The address of the principal executive offices
    of the Company is 2525 East El Segundo Boulevard, El Segundo,
    California 90245.
</DIV>


<!-- link1 "ANNUAL MEETING" -->
<DIV align="left"><A NAME="000"></A></DIV>


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ANNUAL
    MEETING</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Record
    Date; Outstanding Shares; Quorum</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Only holders of record of the Company&#146;s common stock at the
    close of business on April&#160;24, 2007 (the &#147;Record
    Date&#148;) will be entitled to notice of and to vote at the
    Annual Meeting. As of the close of business on the Record Date,
    there were 22,691,867&#160;shares of common stock outstanding
    and entitled to vote, held of record by 125 stockholders. A
    majority, or 11,345,934 of these shares, present in person or
    represented by proxy, will constitute a quorum for the
    transaction of business at the Annual Meeting. Each of the
    Company&#146;s stockholders is entitled to one vote, in person
    or by proxy, for each share of common stock standing in such
    stockholder&#146;s name on the books of the Company as of the
    Record Date on any matter submitted to the stockholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Voting of
    Proxies; Votes Required</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stockholders are requested to complete, date, sign and return
    the accompanying Proxy Card in the enclosed envelope. All
    properly executed, returned and unrevoked Proxy Cards will be
    voted in accordance with the instructions indicated thereon.
    Executed but unmarked Proxy Cards will be voted FOR the election
    of each director nominee listed on the Proxy Card and FOR the
    approval of the 2007 Equity and Performance Incentive Plan. The
    Company&#146;s Board of Directors does not presently intend to
    bring any business before the Annual Meeting other than that
    referred to in this Proxy Statement and specified in the Notice
    of the Annual Meeting. By signing the Proxy Cards, stockholders
    confer discretionary authority on the proxies (who are persons
    designated by the Board of Directors) to vote all shares covered
    by the Proxy Cards in their discretion on any other matter that
    may properly come before the Annual Meeting, including any
    motion made for adjournment of the Annual Meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any stockholder who has given a proxy may revoke it at any time
    before it is exercised at the Annual Meeting by
    (i)&#160;delivering a written revocation notice to the Secretary
    of Big 5 Sporting Goods Corporation, 2525 East El Segundo
    Boulevard, El Segundo, California 90245, (ii)&#160;submitting a
    subsequent valid Proxy Card or (iii)&#160;attending the Annual
    Meeting and voting in person (although attendance at the Annual
    Meeting will not, by itself, revoke a proxy). Any notice of
    revocation sent to the Company must include the
    stockholder&#146;s name.
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Elections of directors are determined by a plurality of shares
    of common stock represented in person or by proxy and voting at
    the Annual Meeting. Affirmative votes representing a majority of
    the votes cast &#147;FOR&#148;, &#147;AGAINST&#148; or
    &#147;ABSTAIN&#148; with respect to Proposal&#160;2 in person or
    by proxy and entitled to vote at the Annual Meeting will be
    required to approve the 2007 Equity and Performance Incentive
    Plan.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Abstentions;
    Broker Non-Votes; Withheld Votes</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A stockholder may vote to &#147;abstain&#148; on Proposal&#160;2
    or on any other proposals which may properly come before the
    Annual Meeting. If a stockholder votes to &#147;abstain,&#148;
    such stockholder&#146;s shares will be counted as present at the
    meeting for purposes of determining a quorum on all matters and
    for purposes of calculating the vote. If an executed proxy is
    returned by a broker holding shares in street name that
    indicates that the broker does not have discretionary authority
    as to certain shares to vote on one or more matters, such shares
    will be considered present at the meeting for purposes of
    determining a quorum on all matters, but will not be considered
    to be votes cast with respect to such matters. Therefore, broker
    non-votes will have no effect on the outcome of the election of
    directors or on the outcome of Proposal&#160;2. In addition, in
    the election of directors, a stockholder may withhold such
    stockholder&#146;s vote. Withheld votes will be excluded from
    the vote and will have no effect on the outcome of such
    election. However, abstentions will have the same effect as a
    vote &#147;AGAINST&#148; with respect to Proposal&#160;2.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Solicitation
    of Proxies and Expenses</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This proxy solicitation is made by the Company, and the Company
    will bear the cost of the solicitation of proxies from its
    stockholders. The directors, officers and employees of the
    Company may solicit proxies by mail, telephone, telegram,
    letter, facsimile, via the Internet or in person. Following the
    original mailing of the proxies and other soliciting materials,
    the Company will request that brokers, custodians, nominees and
    other record holders forward copies of the Proxy Statement and
    other soliciting materials to persons for whom they hold shares
    of common stock and request authority for the exercise of
    proxies. In such cases, the Company will reimburse such record
    holders for their reasonable expenses.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "PROPOSAL 1 ELECTION OF DIRECTORS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;1</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>ELECTION OF DIRECTORS</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>(Item&#160;No.&#160;1 on Proxy Card)</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors consists of three classes, consisting of
    Class&#160;A directors, Class&#160;B directors and Class&#160;C
    directors. The current terms of office of the Class&#160;A
    directors, Class&#160;B directors and Class&#160;C directors
    expire in the year 2007 (Class&#160;B), the year 2008
    (Class&#160;C)&#160;and the year 2009 (Class&#160;A). The terms
    of the Class&#160;B directors elected at the Annual Meeting will
    expire in 2010. Each director holds office until such
    director&#146;s successor is duly elected and qualified. At each
    annual meeting of stockholders, directors elected to succeed
    those directors whose terms then expire will be elected for a
    term of office expiring at the third succeeding annual meeting
    of stockholders of the Company after their election, with each
    director to hold office until his or her successor shall have
    been duly elected and qualified.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Only members of Class&#160;B, Ms.&#160;Sandra N. Bane and
    Dr.&#160;Michael D. Miller, are nominees for election to the
    Board of Directors at the Annual Meeting. Each Class&#160;B
    director elected will hold office until the 2010 annual meeting
    of stockholders (and until such director&#146;s successor shall
    have been duly elected and qualified). Both of the nominees
    currently serve on the Board of Directors of the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each proxy received will be voted for the election of the
    persons named below, unless the stockholder signing such proxy
    withholds authority to vote for one or more of these nominees in
    the manner described in the proxy. Although it is not
    contemplated that any nominee named below will decline or be
    unable to serve as a director, in the event any nominee declines
    or is unable to serve as a director, the proxies will be voted
    by the proxy holders as directed by the Board of Directors.
    Broker non-votes in the election of directors will not be
    counted as voting at the meeting and therefore will not have an
    effect on the election of the nominees listed below. Withheld
    votes will also have no effect on the election of the nominees.
    The two nominees receiving the highest number of votes from
    holders of shares of common stock represented and voting at the
    Annual Meeting will be elected to the Board of Directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>THE BOARD OF DIRECTORS RECOMMENDS A VOTE &#147;FOR&#148; THE
    ELECTION OF THE BOARD OF DIRECTORS&#146; NOMINEES.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as set forth below, there are no family relationships
    between any director, nominee or executive officer and any other
    director, nominee or executive officer of the Company. Except as
    disclosed under &#147;&#151;&#160;Executive
    Compensation&#160;&#151; Employment Agreements and Change in
    Control Provisions,&#148; there are no arrangements or
    understandings between any director, nominee or executive
    officer and any other person pursuant to which such person has
    been or will be selected as a director
    <FONT style="white-space: nowrap">and/or</FONT>
    executive officer of the Company (other than arrangements or
    understandings with any such director, nominee
    <FONT style="white-space: nowrap">and/or</FONT>
    executive officer acting in such person&#146;s capacity as such).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="62%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="21%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Age</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Class</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Expiration of Current Term</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Sandra N. Bane*(a)(b)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    B
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Michael D. Miller*
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    B
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Jennifer Holden Dunbar(a)(b)(c)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    C
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Steven G. Miller
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    C
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">G. Michael Brown(b)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">David R. Jessick(a)(c)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2009
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<TR>
    <TD align="right" valign="top">
    *&#160;</TD>
    <TD></TD>
    <TD valign="bottom">
    Nominee for Reelection at the Annual Meeting</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (a) </TD>
    <TD></TD>
    <TD valign="bottom">
    Member of the Audit Committee</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (b) </TD>
    <TD></TD>
    <TD valign="bottom">
    Member of the Compensation Committee</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (c) </TD>
    <TD></TD>
    <TD valign="bottom">
    Member of the Nominating Committee</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Directors
    Whose Terms Expire in 2007 and are Nominees for Reelection at
    the Annual Meeting (Class&#160;B Directors)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Sandra N. Bane </I>has served as a director since 2002. Since
    1999, Ms.&#160;Bane has been a principal of Bane Consulting, a
    business consulting firm. Ms.&#160;Bane retired from KPMG LLP as
    an audit partner in 1998 after 23&#160;years with the firm.
    While at KPMG LLP, Ms.&#160;Bane headed the Western
    region&#146;s Merchandising practice for the firm, helped
    establish the Employee Benefits audit specialist program and was
    partner in charge of the Western region&#146;s Human Resource
    department for two years. Ms.&#160;Bane is also a member of the
    board of directors of Transamerica Premier Investment Funds, a
    mutual fund company, and serves as a member of the board for
    several nonprofit institutions in her community. She is also a
    member of the AICPA and the California Society of Certified
    Public Accountants. Age:&#160;54.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Michael D. Miller,&#160;Ph.D.</I> has served as a director
    since 1997. Dr.&#160;Miller is a mathematical consultant at The
    RAND Corporation, an independent nonprofit research and analysis
    organization. He retired from The RAND Corporation as a senior
    mathematician in 2002 after 25&#160;years with the organization.
    Dr.&#160;Miller has also taught mathematics at the University of
    California, Los Angeles since 1973. Dr.&#160;Miller is Steven G.
    Miller&#146;s brother. Age:&#160;57.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Directors
    Whose Terms Will Expire in 2008 (Class&#160;C
    Directors)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Jennifer Holden Dunbar </I>has served as a director since
    February 2004. Since March 2005, Ms.&#160;Dunbar has served as
    Principal, Co-Founder and Managing Director of Dunbar Partners,
    LLC, an investment and advisory services company. From 1994 to
    1998, Ms.&#160;Dunbar was a partner of Leonard Green&#160;&#38;
    Partners, L.P., a private equity firm, which she joined in 1989.
    Ms.&#160;Dunbar began her career as a financial analyst in the
    Mergers and Acquisitions Department of Morgan Stanley in 1985.
    Ms.&#160;Dunbar is also a member of the board of directors of 99
    Cents Only Stores. Age:&#160;44.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Steven G. Miller </I>has served as Chairman of the Board,
    Chief Executive Officer and President since 2002, 2000 and 1992,
    respectively. Steven G. Miller has also served as a director
    since 1992. In addition, Steven G. Miller served as Chief
    Operating Officer from 1992 to 2000 and as Executive Vice
    President, Administration from 1988 to 1992. Steven G. Miller is
    Michael D. Miller&#146;s brother. Age: 55.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Directors
    Whose Terms Will Expire in 2009 (Class&#160;A
    Directors)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>G.&#160;Michael Brown </I>has served as a director since
    2002. Mr.&#160;Brown has been a senior litigation partner with
    the law firm Musick, Peeler&#160;&#38; Garrett LLP since 2001.
    Prior to that, Mr.&#160;Brown was a partner at the law firm
    Berger, Kahn, Shafton, Moss, Figler, Simon&#160;&#38; Gladstone
    from 1996 to 2001. Age:&#160;54.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>David R. Jessick </I>has served as a director since March
    2006. Mr.&#160;Jessick served as consultant to the chief
    executive and senior financial staff at Rite Aid Corporation
    from June 2002 to February 2005. Mr.&#160;Jessick served as Rite
    Aid&#146;s Senior Executive Vice President and Chief
    Administrative Officer from 1999 to 2002. Prior to joining Rite
    Aid, from 1997 to 1999, Mr.&#160;Jessick was the Chief Financial
    Officer for Fred Meyer, Inc., where he also served as Executive
    Vice President, Finance and Investor Relations. From 1979 to
    1996, he held various financial positions, including Senior
    Executive Vice President and Chief Financial Officer, with
    Thrifty Payless, Inc. and Payless Drugstores Northwest, Inc.
    Mr.&#160;Jessick began his career as a certified public
    accountant with Peat, Marwick, Mitchell&#160;&#38; Co.
    Mr.&#160;Jessick is also a director of Pathmark Stores Inc.,
    Dollar Financial Corp., Source Interlink Companies Inc., and
    World Kitchen, Inc. Age:&#160;53.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Board
    Meetings and Committees</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors of the Company held four meetings during
    the fiscal year ended December&#160;31, 2006 and acted by
    unanimous written consent on four occasions. During the fiscal
    year ended December&#160;31, 2006, each incumbent director of
    the Company attended at least 75% of the aggregate of
    (i)&#160;the total number of meetings of the Board of Directors,
    and (ii)&#160;the total number of meetings of the committees on
    which such director served (in each case, during the periods
    that such director served). It is the policy of the Board of
    Directors that directors who are nominees for election to the
    Board of Directors at the Corporation&#146;s annual meeting of
    stockholders should attend
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    such annual meeting, except in the case of extenuating or
    exceptional circumstances. G. Michael Brown, Jennifer Holden
    Dunbar and Steven G. Miller attended the Company&#146;s 2006
    annual meeting of stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors consists of three classes: Class&#160;A
    directors, Class&#160;B directors and Class&#160;C directors.
    The terms of office of the current Class&#160;A directors,
    Class&#160;B directors and Class&#160;C directors expire in the
    year 2009 (Class&#160;A), the year 2007 (Class&#160;B)&#160;and
    the year 2008 (Class&#160;C). Directors are elected to
    three-year terms. Each director holds office until such
    director&#146;s successor is duly elected and qualified. It is
    the policy of the Board of Directors that a majority of the
    Board of Directors shall be &#147;independent&#148; as that term
    is defined in Marketplace Rule&#160;4200(a)(15) of the Nasdaq
    Stock Market&#146;s listing standards. The Board of Directors
    has determined that Sandra N. Bane, G. Michael Brown, Jennifer
    Holden Dunbar and David R. Jessick, each of whom is a current
    member of the Board of Directors, are independent.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Executive
    Sessions of Independent Directors</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To promote open discussion among the independent directors, the
    independent directors meet in executive session at least two
    times per year, either before or after regularly-scheduled board
    meetings. The Chair of the Audit Committee presides at these
    executive sessions. Any independent director may request that an
    executive session of the independent members of the Board of
    Directors be scheduled. Following such meetings, the Chair of
    the Audit Committee (or another designated director) will
    discuss with the Chairman of the Board and Chief Executive
    Officer, to the extent appropriate, matters emanating from the
    executive sessions. The independent directors met twice during
    the fiscal year ended December&#160;31, 2006.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Audit
    Committee</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors has a standing Audit Committee, which is
    chaired by Sandra N. Bane and currently consists of
    Ms.&#160;Bane, Ms.&#160;Dunbar and Mr.&#160;Jessick. Each of the
    members of the Audit Committee is &#147;independent&#148; as
    that term is defined in Marketplace Rule&#160;4200(a)(15) of the
    Nasdaq Stock Market&#146;s listing standards and meets the
    additional audit committee independence requirements set forth
    in Marketplace Rule&#160;4350(d)(2) of the Nasdaq Stock
    Market&#146;s listing standards. The Board of Directors has
    determined that Ms.&#160;Bane qualifies as an &#147;audit
    committee financial expert&#148; as defined in the rules of the
    Securities and Exchange Commission.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On February&#160;10, 2004, the Board of Directors adopted an
    amended and restated written charter for the Audit Committee to
    comply with the requirements of the Sarbanes-Oxley Act of 2002,
    as well as the requirements of the Securities and Exchange
    Commission and the Nasdaq Stock Market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Among other things, the functions of the Audit Committee are to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    be directly responsible for the appointment, compensation,
    retention and oversight of the work of any registered public
    accounting firm engaged by the Company (including resolution of
    disagreements between management and the auditor regarding
    financial reporting) for the purpose of preparing or issuing an
    audit report or performing other audit, review or attest
    services for the Company;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    pre-approve all audit and permissible non-audit services to be
    performed for the Company by its registered public accounting
    firm in accordance with the provisions of &#167;&#160;10A(i) of
    the Securities Exchange Act of 1934, as amended;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    establish procedures for (a)&#160;the receipt, retention and
    treatment of complaints received by the Company regarding
    accounting, internal accounting controls or auditing matters and
    (b)&#160;the confidential, anonymous submission by employees of
    the Company of concerns regarding questionable accounting or
    auditing matters;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    review and discuss with the Company&#146;s management and
    independent auditors the Company&#146;s audited financial
    statements, including the adequacy and effectiveness of the
    Company&#146;s internal accounting controls;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    discuss with the Company&#146;s management and independent
    auditors any significant changes to the Company&#146;s
    accounting principles;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    review the independence and performance of the Company&#146;s
    independent auditors;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    review from time to time and make recommendations with respect
    to the Company&#146;s policies relating to management conduct
    and oversee procedures and practices to ensure compliance with
    such policies.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee&#146;s charter is attached as
    Appendix&#160;A hereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee held eight meetings during the fiscal year
    ended December&#160;31, 2006, and acted once by unanimous
    written consent.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Compensation
    Committee</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors has a standing Compensation Committee,
    which is chaired by G. Michael Brown and currently consists of
    Mr.&#160;Brown, Ms.&#160;Bane and Ms.&#160;Dunbar. Each of the
    members of the Compensation Committee is &#147;independent&#148;
    within the meaning of Marketplace Rule&#160;4200(a)(15) of the
    Nasdaq Stock Market&#146;s listing standards. Ms.&#160;Bane and
    Ms.&#160;Dunbar each is a &#147;non-employee director&#148;
    within the meaning of
    <FONT style="white-space: nowrap">Rule&#160;16b-3</FONT>
    of the Securities Exchange Act of 1934, as amended, and an
    &#147;outside director&#148; within the meaning of
    Section&#160;162(m) of the Internal Revenue Code. Mr.&#160;Brown
    is a partner at the law firm of Musick, Peeler&#160;&#38;
    Garrett LLP, which from time to time is retained by the Company
    to handle various litigation matters, and for this reason is not
    a &#147;non-employee director&#148; or an &#147;outside
    director&#148;. Among other things, the function of the
    Compensation Committee is to review and recommend to the Board
    of Directors the compensation and benefits of the Company&#146;s
    executive officers and to administer the Company&#146;s 2002
    Stock Incentive Plan. Grants of stock options under the
    Company&#146;s 2002 Stock Incentive Plan to, and compensation
    for, executive officers are approved by Ms.&#160;Bane and
    Ms.&#160;Dunbar, with Mr.&#160;Brown either recusing himself or
    abstaining. The Compensation Committee held four meetings during
    the fiscal year ended December&#160;31, 2006, and acted by
    unanimous written consent on six occasions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Nominating
    Committee</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors has a standing Nominating Committee,
    which is chaired by Jennifer Holden Dunbar and currently
    consists of Ms.&#160;Dunbar and Mr.&#160;Jessick. Each of the
    members of the Nominating Committee is &#147;independent&#148;
    within the meaning of Marketplace Rule&#160;4200(a)(15) of the
    Nasdaq Stock Market&#146;s listing standards. Among other
    things, the function of the Nominating Committee is to identify,
    screen, review and recommend to the Board of Directors
    individuals qualified to be nominated for election to the Board
    and to fill vacancies or newly created positions on the Board
    consistent with criteria approved by the Board, as well as to
    recommend to the Board directors to serve on each Board
    committee. The Nominating Committee held one meeting during the
    fiscal year ended December&#160;31, 2006, and acted once by
    unanimous written consent.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Director
    Qualifications and Nominations Process</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is the policy of the Board of Directors that, in addition to
    being approved by a majority of the Board of Directors, each
    nominee must first be recommended by the Nominating Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The policy of the Nominating Committee is to recommend and
    encourage the selection of directors who have achieved success
    in their personal fields and who demonstrate integrity and high
    personal and professional ethics, sound business judgment and
    willingness to devote the requisite time to their duties as
    director, and who will contribute to the overall corporate goals
    of the Company. Candidates are evaluated and selected based on
    their individual merit, as well as in the context of the needs
    of the Board of Directors as a whole. In evaluating the
    suitability of individual candidates for election or re-election
    to the Board of Directors, the Nominating Committee and the
    Board of Directors take into account many factors, including
    understanding of the retail sporting goods industry, sales and
    marketing, finance and other elements relevant to the
    Company&#146;s business, educational and professional
    background, age, and past performance as a director. The
    Nominating Committee and the Board of Directors evaluate each
    individual in the context of the composition and needs of the
    Board of Directors as a whole, including the independence
    requirements imposed by the Nasdaq Stock Market and the
    Securities and Exchange Commission, with the objective of
    recommending a group that can best perpetuate and build on the
    success of the business and represent stockholder interests. In
    determining whether to recommend a director for re-election, the
    Nominating Committee and the Board of Directors also consider
    the director&#146;s past attendance at, and participation
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    in, meetings of the Board of Directors and its committees and
    contributions to its activities. The Nominating Committee and
    the Board of Directors use the Board&#146;s network of contacts
    to compile a list of potential candidates, but may also engage,
    if they deem appropriate, a professional search firm.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The charter for the Nominating Committee can be found at our
    website at www.big5sportinggoods.com. To locate the charter, go
    the &#147;Investor Relations&#148; section of the website and
    click on &#147;Corporate Governance&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stockholders who have beneficially owned more than five percent
    of the Corporation&#146;s then-outstanding shares of common
    stock for a period of at least one year as of the date of making
    the proposal may propose candidates for consideration by the
    Nominating Committee and the Board of Directors by submitting
    the names and supporting information to: Big 5 Sporting Goods
    Corporation, Attention: Secretary, 2525 East El Segundo Blvd, El
    Segundo, CA
    <FONT style="white-space: nowrap">90245-4632.</FONT>
    A stockholder recommendation for nomination must be submitted in
    accordance with the Company&#146;s Amended and Restated Bylaws
    and must contain the following information about the proposed
    nominee, as well as documentary support that the stockholder
    satisfies the requisite stock ownership threshold and holding
    period: name, age, business and residence addresses, principal
    occupation or employment, the number of shares of the
    Company&#146;s common stock held by the nominee, a resume of his
    or her business and educational background, the information that
    would be required under the Securities and Exchange
    Commission&#146;s rules in a proxy statement soliciting proxies
    for the election of such nominee as a director, and a signed
    consent of the nominee to serve as a director, if nominated and
    elected. Neither the Nominating Committee nor the Board of
    Directors intends to alter the manner in which it evaluates
    candidates, including the criteria set forth above, based on
    whether the candidate was recommended by a stockholder.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stockholder
    Communications with the Board of Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stockholders may send communications about matters of general
    interest to the stockholders of the Company to the Board of
    Directors, the Chairman of the Board, the Chair of the Audit
    Committee, the Chair of the Compensation Committee or the Chair
    of the Nominating Committee at the following address: Big 5
    Sporting Goods Corporation, Attention: Secretary, 2525 East El
    Segundo Blvd, El Segundo, CA
    <FONT style="white-space: nowrap">90245-4632.</FONT>
    The Secretary will compile these communications and periodically
    deliver them to the Chairman of the Board, unless otherwise
    specifically addressed. Communications relating to accounting,
    internal controls over financial reporting or auditing matters
    will be referred to the Chair of the Audit Committee.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Code of
    Business Conduct and Ethics</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has adopted a Code of Business Conduct and Ethics
    that applies to all of the Company&#146;s employees, including
    the Company&#146;s senior financial and executive officers, as
    well as the Company&#146;s directors. The Company will disclose
    any waivers of, or amendments to, any provision of the Code of
    Business Conduct and Ethics that applies to the Company&#146;s
    directors and senior financial and executive officers on the
    Company&#146;s website, www.big5sportinggoods.com.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    Committee Interlocks and Insider Participation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the fiscal year ended December&#160;31, 2006, the
    Compensation Committee consisted of G. Michael Brown, as Chair,
    Sandra N. Bane and (effective March, 2006)&#160;Jennifer Holden
    Dunbar, none of whom is or has been an officer or employee of
    the Company or any of its subsidiaries. Ms.&#160;Bane and
    Ms.&#160;Dunbar do not have any relationship requiring
    disclosure under any paragraph of Item&#160;404 of
    <FONT style="white-space: nowrap">Regulation&#160;S-K.</FONT>
    Mr.&#160;Brown is a partner at the law firm of Musick,
    Peeler&#160;&#38; Garrett LLP. From time to time, the Company
    retains Musick, Peeler&#160;&#38; Garrett LLP to handle various
    litigation matters.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No interlocking relationship existed between the Board of
    Directors or the Compensation Committee of the Company and the
    board of directors or compensation committee of any other
    company.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    Committee Report</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee of the Board of Directors has
    reviewed and discussed the Compensation Discussion and Analysis
    with the Company&#146;s management and, based on our review and
    discussions, we recommended to the Board that the Compensation
    Discussion and Analysis be included in this Proxy Statement.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    COMPENSATION COMMITTEE OF
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE BOARD OF DIRECTORS
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    G. Michael Brown (Chair)
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sandra N. Bane
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Jennifer Holden Dunbar
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    April&#160;23, 2007
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>No portion of this Compensation Committee Report shall be
    deemed to be incorporated by reference into any filing under the
    Securities Act of 1933, as amended (the &#147;Securities
    Act&#148;) or the Securities Exchange Act of 1934, as amended
    (the &#147;Exchange Act&#148;), through any general statement
    incorporating by reference in its entirety the Proxy Statement
    in which this report appears, except to the extent that the
    Company specifically incorporates this report or a portion of it
    by reference. In addition, this report shall not be deemed to be
    filed under either the Securities Act or the Exchange Act.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Executive
    Officers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following section sets forth certain information with
    respect to the Company&#146;s current executive officers (other
    than Steven G. Miller, whose information is set forth above
    under &#147;Directors Whose Terms Will Expire in 2008
    (Class&#160;C Directors)&#148;). Executive officers serve at the
    discretion of the Board of Directors, subject to rights, if any,
    under contracts of employment. See
    &#145;&#145;&#151;&#160;Executive Compensation&#160;&#151;
    Employment Agreements and Change in Control Provisions.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="44%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="51%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Age</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Position with the Company</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Steven G. Miller
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">55
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Chairman of the Board of
    Directors, Chief Executive Officer and President
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Barry D. Emerson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">49
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Senior Vice President, Chief
    Financial Officer and Treasurer
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Gary S. Meade
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">60
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Senior Vice President, General
    Counsel and Secretary
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Richard A. Johnson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">61
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Executive Vice President
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Thomas J. Schlauch
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">62
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Senior Vice President, Buying
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Jeffrey L. Fraley
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">50
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Senior Vice President, Human
    Resources
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Shane O. Starr
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">49
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Senior Vice President, Operations
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Barry D. Emerson </I>has served as Chief Financial Officer
    and Treasurer since October 2005 and as Senior Vice President
    since September 2005. Prior to joining the Company,
    Mr.&#160;Emerson was employed by U.S.&#160;Auto Parts Network,
    Inc., an ecommerce distributor of aftermarket auto parts in the
    United States, where he served as Vice President, Treasurer and
    Chief Financial Officer during 2005. Prior to that,
    Mr.&#160;Emerson served as Vice President, Treasurer and Chief
    Financial Officer of Elite Information Group, Inc., a software
    product and services company, from 1999 through 2004. Age: 49.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Gary S. Meade </I>has served as Senior Vice President since
    July 2001 and General Counsel and Secretary since 1997.
    Mr.&#160;Meade also served as Vice President from 1997 to 2001.
    Prior to joining the Company, Mr.&#160;Meade was employed by
    Thrifty PayLess, Inc., a retail drug store company, where he
    served as Vice President, Legal Affairs and Secretary from 1994
    through 1996, and by Thrifty Corporation, a retail drug store
    company, where he served as
</DIV>

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    <BR>
    8
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Vice President, Legal Affairs and Secretary from1992 through
    1994 and Vice President, Legal Affairs from 1979 through 1992.
    Age: 60.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Richard A. Johnson </I>was named Executive Vice President in
    March 2007. Prior to that, he served as Senior Vice President,
    Store Operations since 1992. Prior to that, Mr.&#160;Johnson was
    Vice President, Store Operations since 1982. Age: 61.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Thomas J. Schlauch </I>has served as Senior Vice President,
    Buying since 1992. Prior to that, Mr.&#160;Schlauch served as
    Head of Buying from 1990 to 1992 and as Vice President, Buying
    from 1982 to 1990. Age: 62.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Jeffrey L. Fraley </I>has served as Senior Vice President,
    Human Resources since July 2001. Prior to that, Mr.&#160;Fraley
    served as Vice President, Human Resources from 1992 to 2001.
    Age: 50.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Shane O. Starr </I>was named Senior Vice President,
    Operations, in March 2007. Prior to that, he served as the
    Company&#146;s Vice President of Operations since 1999. Age: 49.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Executive
    Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    Discussion and Analysis</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Attracting, retaining, and motivating well-qualified executives
    are essential to the success of any company. In the retail
    sporting goods industry, the market for top executive talent is
    highly competitive. Accordingly, the goals of our compensation
    program are to provide significant rewards for successful
    performance, to encourage retention of top executives who may
    have attractive opportunities at other companies and to align
    executive officers&#146; interests with those of the
    stockholders. We believe these goals can be achieved by a
    program of executive compensation which is stable and consistent
    over time. Our executive compensation program therefore has
    varied very little over the past ten years. We believe that our
    executive compensation policy has been successful in encouraging
    retention, because our executive officers have an average tenure
    of 25&#160;years with us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our compensation decisions are made by the Compensation
    Committee, which is composed entirely of independent members of
    our Board of Directors. The Compensation Committee receives
    recommendations from our President and Chief Executive Officer,
    or our Principal Executive Officer, and considers
    publicly-available information on the executive compensation of
    a peer group of sporting goods retailers and of other specialty
    retailers who are similar in size to us. From time to time, the
    Compensation Committee also receives information about market
    rates of executive compensation from executive recruiters. The
    Compensation Committee has retained an independent compensation
    consultant, Frederic W. Cooke&#160;&#38; Co., Inc., in designing
    our 2007 Equity and Performance Incentive Plan, which is
    referred to as the 2007 Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Internal Revenue Code Section&#160;162(m) generally disallows a
    tax deduction to reporting companies for compensation over
    $1,000,000 paid to each of the company&#146;s chief executive
    officer and the four other most highly compensated officers,
    except for compensation that is &#147;performance based.&#148;
    Section&#160;162(m) has not been a factor in the design of our
    executive compensation program because the compensation of our
    executives other than our President and Chief Executive Officer
    has not approached $1,000,000, and the compensation of our
    President and Chief Executive Officer, except for stock options
    which are &#147;performance based&#148; compensation, has
    exceeded $1,000,000 only by a minor amount.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Elements
    of Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Salary</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Compensation Committee generally reviews the base salaries
    of our Named Executive Officers annually. The salaries of our
    Named Executive Officers are determined in the sole discretion
    of the Compensation Committee, after receiving recommendations
    from our Principal Executive Officer. The Compensation Committee
    considers individual and Company performance, as well as
    publicly-available information on compensation paid by companies
    in our peer group to their named executive officers. We believe
    that the salaries of our Named Executive Officers are at or
    below the median of salaries paid by other sporting goods
    retailers and similarly-sized specialty retailers.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Bonuses</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The bonuses of our Named Executive Officers are determined in
    the sole discretion of the Compensation Committee, after
    receiving recommendations from our Principal Executive Officer.
    The total amount of the annual bonuses paid to our salaried
    employees (except for store managers) has historically been
    correlated with the amount of our earnings before interest,
    taxes, depreciation and amortization, or EBITDA, and has
    historically represented approximately five percent of our
    EBITDA. In recent years, approximately one-third of this bonus
    expense has been for the Named Executive Officers. Bonus
    payments to individual Named Executive Officers are based on
    their individual performance, as well as on publicly available
    information on compensation paid by companies in our peer group
    to their named executive officers. These practices have been
    essentially uniform for the past ten years. We believe that the
    bonuses paid to our Named Executive Officers are at or below the
    median range of bonuses that companies in our peer group pay to
    their named executive officers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Long-Term
    Incentive Compensation (Equity Awards)</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We believe that awards of stock options to Named Executive
    Officers provide a valuable long-term incentive for them, and
    help align their interests with the stockholders&#146;
    interests. We believe that stock options are a vital component
    of our philosophy of compensating Named Executive Officers for
    successful results, as they can realize value on their stock
    options only if the stock price increases. In view of the
    relatively modest amount of bonuses that we pay to our Named
    Executive Officers, stock options are a particularly important
    component of rewarding them for successful results.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We also believe that unvested options are a major tool to
    encourage employee retention. Accordingly, our stock option
    grants to our Named Executive Officers generally vest over a
    four year period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We periodically grant stock options to some or all of our Named
    Executive Officers, typically in connection with their annual
    performance and compensation reviews. We do not necessarily
    grant stock options to our Named Executive Officers annually; we
    want our Named Executive Officers to understand that a grant of
    stock options is not an entitlement. Our Compensation Committee
    determines the size of each option grant, after receiving
    recommendations from our Principal Executive Officer. In
    determining the size of option grants to executive officers,
    consideration is given to the value of total direct
    compensation, Company and individual performance, the number and
    value of stock options previously granted to the executive
    officer and the relative proportion of long-term incentives
    within the total compensation mix. Our Compensation Committee
    generally considers option grants to Named Executive Officers
    and other existing employees at committee meetings which
    coincide with the employees&#146; annual performance and
    compensation reviews, and the exercise price of each stock
    option granted is the closing price of our stock on the day of
    the meeting. The Compensation Committee considers grants to
    select newly-hired executives at its regularly-scheduled
    quarterly committee meeting following the date of hire, and the
    exercise price of each stock option granted to a newly-hired
    executive is the closing price of our stock on the day of the
    meeting. We do not intend to grant options while in possession
    of material non-public information, except pursuant to a
    pre-existing policy under which options are granted on fixed
    dates of our annual stockholders meeting or Compensation
    Committee meetings or to select newly-hired or newly-promoted
    executives. We believe that the size of option grants to our
    Named Executive Officers is relatively modest when compared to
    the size of option grants to similar officers of the companies
    in our peer group.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We continue to believe in the importance of equity ownership for
    all executive officers as well as other members of management
    for the purposes of incentive, retention and alignment with
    stockholders&#146; interests. Therefore, we are asking our
    stockholders to approve our 2007 Plan, which will provide the
    Company with the flexibility to grant a variety of equity award
    vehicles, in addition to stock options, to achieve a balance
    between continuing our successful practice of providing
    equity-based compensation to our employees and maintaining
    long-term stockholder value.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Change
    in Control Payments</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Named Executive Officers generally do not have employment
    agreements that provide that they will receive payments if we
    undergo a change in control. The employment agreement of our
    Principal Executive Officer contains a change in control
    provision. This provision is essentially a &#147;single
    trigger&#148; provision, in that it permits
</DIV>

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    <BR>
    10
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    him to receive the change in control payments if he leaves for
    any reason within six months after the change in control. The
    reason for this provision is that being the principal executive
    officer of a publicly-traded company is a unique position, which
    he would likely need to relinquish on a change in control.
    Furthermore, if he remains with the company or an acquiring
    entity after a change in control, there would probably be
    negotiations at that time regarding his continued employment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Principal Executive Officer&#146;s employment agreement also
    contains provisions for payment on dismissal without
    &#147;cause&#148; or quitting for &#147;good reason,&#148; which
    could apply after as well as before a change in control.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have entered into a severance agreement with our Senior Vice
    President and Chief Financial Officer, or our Principal
    Financial Officer, which provides that he will receive certain
    payments if we terminate his employment other than for
    &#147;cause.&#148; These provisions can operate after as well as
    before a change in control. These provisions were the result of
    arm&#146;s length negotiations between us and our Principal
    Financial Officer when we hired him.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will not provide gross up payments to our Principal Executive
    Officer or Principal Financial Officer if they receive payments
    in connection with the change in control which would cause them
    to be subject to the excise tax of Internal Revenue Code
    Section&#160;4999, or the Golden Parachute Excise Tax. On the
    contrary, the employment agreement of our Principal Executive
    Officer provides that payments in connection with the change in
    control will be reduced to the extent necessary to prevent them
    from being subject to the Golden Parachute Excise Tax. We do not
    expect that any payments made to our Principal Financial Officer
    will be large enough to trigger the Golden Parachute Excise Tax.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">All
    Other Compensation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All other compensation to our Named Executive Officers includes,
    among other things, Company contributions and other allocations
    made on behalf of the individuals under the Company&#146;s
    defined contribution plan. We have also provided perquisites to
    our Named Executive Officers that have an annual incremental
    cost to us of $10,000 or more, which consist of the value
    attributable to personal use of Company-provided automobiles.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Compensation Table</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
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    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=08 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=08 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=09 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=09 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=10 type=gutter -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=10 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=10 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=10 type=quadright -->
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Change in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Pension<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Non-Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Value and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Incentive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Nonqualified<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>All<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Deferred<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Principal<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Salary<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Bonus<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Compen-<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Position</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>($)(1)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>($)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>($)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>($)(2)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>sation($)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Earnings ($)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>($)(3)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>($)</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 7pt">Steven G. Miller
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">2006
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">440,308
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">600,000
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">178,888
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">29,809
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">1,249,005
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 7pt">Chairman of the Board, President
    and Chief Executive Officer
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 7pt">Barry D. Emerson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">2006
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">293,269
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">185,000
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">179,394
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">20,139
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">677,802
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 7pt">Senior Vice President, Chief
    Financial Officer and Treasurer
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 7pt">Thomas J. Schlauch
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">2006
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">248,846
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">233,000
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">63,190
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">23,640
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">568,676
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 7pt">Senior Vice President, Buying
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 7pt">Richard A. Johnson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">2006
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">223,146
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">213,000
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">63,190
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">25,914
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">525,250
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 7pt">Executive Vice President
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 7pt">Gary S. Meade
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">2006
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">186,500
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">120,000
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">63,190
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">25,062
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">394,752
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -7pt; margin-left: 7pt">
    <FONT style="font-size: 7pt">Senior Vice President, General
    Counsel and Secretary
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Each of the Named Executive Officers received salary increases
    that were effective March&#160;27, 2006, resulting in the
    following annual salaries:<BR>
    Steven G. Miller: $443,000<BR>
    Barry D. Emerson: $300,000<BR>
    Thomas J. Schlauch: $251,000<BR>
    Richard A. Johnson: $225,000<BR>
    Gary S. Meade: $190,000</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    The amounts in this Salary column reflect amounts actually
    earned in 2006.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    The amounts in the Option Awards column reflect the compensation
    expense recognized by the Company for financial reporting
    statement reporting purposes for the fiscal year ended
    December&#160;31, 2006, in accordance with
    SFAS&#160;No.&#160;123(R), <I>Share-Based Payment</I>,
    (excluding the impact of estimated forfeitures related to
    service-based vesting conditions), for awards pursuant to the
    2002 Stock Incentive Plan, and includes amounts attributable to
    awards granted during and before 2006. Details on assumptions
    made in the calculation of these amounts are included in
    Note&#160;13 to the Consolidated Financial Statements in the
    Company&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    filed with the Securities and Exchange Commission on
    March&#160;9, 2007.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    The amounts in the All Other Compensation column include
    (a)&#160;the value attributable to personal use of a
    Company-provided automobile in the following amounts:
    Mr.&#160;Miller: $18,709, Mr.&#160;Emerson: $13,539,
    Mr.&#160;Schlauch: $10,440, Mr.&#160;Johnson: $13,428, and
    Mr.&#160;Meade: $11,862, and (b)&#160;Company contributions and
    other allocations made on behalf of the individual under the
    Company&#146;s defined contribution plan in the following
    amounts: Mr.&#160;Miller: $11,100, Mr.&#160;Emerson: $6,600,
    Mr.&#160;Schlauch: $13,200, Mr.&#160;Johnson: $12,486, and
    Mr.&#160;Meade: $13,200.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stock
    Options and Equity Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We adopted our 2002 Stock Incentive Plan, which we refer to as
    the 2002 Plan, and our shareholders approved it, in 2002 before
    our initial public offering. The 2002 Plan is administered by
    our Compensation Committee. The Compensation Committee has broad
    discretion and power in operating the 2002 Plan and in
    determining which of our employees, directors, and consultants
    shall participate, and the terms of individual awards. Awards
    under the 2002 Plan consist of stock options, some of which may
    be incentive stock options. The 2002 Plan provides for an
    aggregate of up to 3,645,000&#160;shares of our common stock to
    be available for awards. The aggregate number of shares
    available under the 2002 Plan and the number of shares subject
    to outstanding options will be increased or decreased to reflect
    any changes in the outstanding common stock of the Company by
    reason of any recapitalization, spin-off, reorganization,
    reclassification, stock dividend, stock split, reverse stock
    split, or similar transaction. If any shares subject to an award
    under the 2002 Plan are forfeited, expire, or are terminated
    with issuance of shares, the shares shall again be available for
    award under the 2002 Plan. As of April&#160;24, 2007,
    2,399,250&#160;shares remain available for awards under the 2002
    Plan. At April&#160;24, 2007, there were options to purchase
    1,150,000&#160;shares of common stock outstanding under the 2002
    Plan, with a weighted average exercise price of $19.42 and a
    weighted average remaining term of 7.67&#160;years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the 2002 Plan, no participant may be granted in any fiscal
    year of the Company or portion thereof options with respect to
    more than 546,750&#160;shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the 2002 Plan, the exercise price for an incentive stock
    option cannot be less than 100% of the fair market value of the
    underlying shares of the grant date. The 2002 Plan permits the
    exercise price of an option other than an incentive stock option
    to be less than 100% of the fair market value of the underlying
    shares on the grant date, but, in practice, the exercise price
    of all options that have been issued under the 2002 Plan has
    been 100% of the fair market value of the underlying shares on
    the grant date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As discussed more fully below in the description of
    Proposal&#160;2, our 2007 Equity and Performance Incentive Plan,
    which is referred to as the 2007 Plan, is being submitted to
    shareholders for approval. On approval of the 2007 Plan by our
    shareholders, the 2002 Plan will be terminated, and no new
    awards will be made under the 2002 Plan, although awards already
    granted will continue to be outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has a second stock plan currently outstanding:
    the1997 Management Equity Plan, or the 1997 Plan, which was
    adopted and approved by our stockholders in November 1997. The
    1997 Plan is scheduled to terminate in November 2007, but the
    Company will terminate the 1997 Plan immediately following the
    Annual Meeting if the 2007 Equity and Performance Incentive Plan
    is approved at the meeting. As of April&#160;24, 2007, there
    were no shares subject to awards granted under the 1997 Plan and
    the Company has no plans to make any further grants under that
    plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The aggregate amount of shares authorized for issuance under the
    2007 Plan will be 2,399,250, the same number of shares that
    remain available for grant under the 2002 Plan as of
    April&#160;24, 2007, plus any shares subject to awards granted
    under the 2002 Plan and our 1997 Plan, which together are
    referred to as the Prior Plans, that are forfeited, expire or
    are cancelled after the effective date of the 2007 Plan. Thus,
    although we are asking our
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    stockholders to approve the 2007 Plan, we are not asking them to
    authorize the issuance of more shares than remained available
    for issuance under the Prior Plans. We will not make any more
    grants under the Prior Plans from April&#160;24, 2007 until the
    date of the Annual Meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The 2007 Plan will be administered by our Compensation
    Committee. The Compensation Committee will have broad discretion
    and power in operating the 2007 Plan and in determining which of
    our employees, directors, and consultants shall participate, and
    the terms of individual awards. Awards under the 2007 Plan may
    consist of options, stock appreciation rights, restricted stock,
    other stock unit awards, performance awards, dividend
    equivalents or any combination of the foregoing. The 2007 Plan
    will provide for an aggregate of up to 2,399,250&#160;shares of
    our common stock to be available for awards, plus the number of
    shares subject to awards granted under the Prior Plans that are
    forfeited, expire or are cancelled after the effective date of
    the 2007 Plan. Any shares that are subject to awards of options
    or stock appreciation rights shall be counted against this limit
    as one share for every one share granted. Awards of restricted
    stock and other awards that are not awards of stock options or
    stock appreciation rights (including shares delivered in
    settlement of dividend rights) shall be counted against this
    limit as 2.5&#160;shares for every share granted. The aggregate
    number of shares available under the 2007 Plan and the number of
    shares subject to outstanding options and stock appreciation
    rights will be increased or decreased to reflect any changes in
    the outstanding common stock of the Company by reason of any
    recapitalization, spin-off, reorganization, reclassification,
    stock dividend, stock split, reverse stock split, or similar
    transaction. If any shares subject to an award under the 2007
    Plan are forfeited, expire, or are terminated without issuance
    of shares, the shares shall again be available for award under
    the 2007 Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the 2007 Plan, no participant may be granted in any fiscal
    year of the Company (a)&#160;options or stock appreciation
    rights with respect to more than 500,000&#160;shares,
    (b)&#160;restricted stock, performance awards or other stock
    unit awards that are denominated in shares with respect to more
    than 250,000&#160;shares, or (c)&#160;performance awards or
    stock unit awards that are valued by reference to cash having a
    maximum dollar value of more than $2,000,000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the 2007 Plan, the exercise price for an option or stock
    appreciation right cannot be less than 100% of the fair market
    value of the underlying shares on the grant date. The 2007 Plan
    will not permit the repricing of options or stock appreciation
    rights.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Grants of
    Plan-Based Awards</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="33%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="7%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=06 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=07 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=08 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=09 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=10 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=10 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=10 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=10 type=quadright -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=11 type=gutter -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=11 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=11 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=11 type=quadright -->
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>All<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>All Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards:<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Awards:<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exercise<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom">
    <B>Estimated Future Payouts<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>or Base<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom">
    <B>Estimated Future Payouts Under Non-Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom">
    <B>Under Equity Incentive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>of Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Price of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Incentive Plan Awards</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="5" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Plan Awards</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>of Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Underlying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Grant Date<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Threshold<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Target<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Maximum<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Threshold<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Target<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Maximum<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>or Units<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Options<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Awards<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>(1)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>($)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>($)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>($)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>(#)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>(#)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>(#)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>(#)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>(#)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>($/Sh)</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Steven G. Miller
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 7pt"><FONT style="white-space: nowrap">3/13/2006</FONT>
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">30,000
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">19.12
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Chairman of the Board, President
    and Chief Executive Officer
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Barry D. Emerson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 7pt"><FONT style="white-space: nowrap">3/13/2006</FONT>
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">20,000
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">19.12
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Senior Vice President and Chief
    Financial Officer
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Thomas J. Schlauch
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 7pt"><FONT style="white-space: nowrap">3/13/2006</FONT>
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">12,000
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">19.12
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Senior Vice President, Buying
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Richard A. Johnson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 7pt"><FONT style="white-space: nowrap">3/13/2006</FONT>
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">12,000
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">19.12
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Executive Vice President
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Gary S. Meade
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 7pt"><FONT style="white-space: nowrap">3/13/2006</FONT>
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">12,000
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 7pt">19.12
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Senior Vice President, General
    Counsel and Secretary
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    These options vest as follows: Mr.&#160;Miller&#146;s options
    vest in forty-eight equal monthly installments beginning on
    April&#160;1, 2006; the remaining options vest in four equal
    annual installments beginning on March&#160;13, 2007.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Outstanding
    Equity Awards at Fiscal Year-End</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 7pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="37%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=10 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=10 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=10 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=10 type=hang1 -->
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Incentive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Incentive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Awards:<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Market<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Awards:<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>or Payout<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Incentive<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Unearned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Awards:<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Unearned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Market Value<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Units or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Underlying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Underlying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Securities<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of Shares or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Units<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Unexercised<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Unexercised<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Underlying<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares or<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Units of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>or Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Rights<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Options<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Options<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Unexercised<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Units of Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Rights That<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>That<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(#)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(#)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Unearned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Exercise<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>That Have<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>That Have Not<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Have<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Have<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Exercisable<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Unexercisable<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Options<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Price<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Expiration<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Not Vested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Vested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Not<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Not Vested<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(#)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Date</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(#)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Vested (#)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Steven G. Miller
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">2/11/2013</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Chairman of the Board, President
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.61
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">2/13/2014</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">and Chief Executive Officer
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,625
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,375
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">3/13/2016</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Barry D. Emerson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">9/12/2015</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Senior Vice President and
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">3/13/2016</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Chief Financial Officer
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Thomas J. Schlauch
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">2/11/2013</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Senior Vice President, Buying
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.61
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">2/13/2014</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">3/13/2016</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Richard A. Johnson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">2/11/2013</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Executive Vice
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.61
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">2/13/2014</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">President
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">3/13/2016</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Gary S. Meade
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">2/11/2013</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Senior Vice President, General
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.61
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">2/13/2014</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -6pt; margin-left: 6pt">
    <FONT style="font-size: 7pt">Counsel and Secretary
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="white-space: nowrap">3/13/2016</FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    The vesting dates of the options reported in the second and
    third columns are as follows: Mr.&#160;Miller&#146;s options
    vest in forty-eight equal monthly installments, beginning on
    March&#160;1, 2003, March&#160;1, 2004 and April&#160;1, 2006,
    respectively; Mr.&#160;Emerson&#146;s options vest in four equal
    annual installments, beginning on September&#160;12, 2006 and
    March&#160;13, 2007, respectively; and Mr.&#160;Schlauch&#146;s
    options, Mr.&#160;Johnson&#146;s options and
    Mr.&#160;Meade&#146;s options vest in four equal annual
    installments, beginning on February&#160;11, 2004,
    February&#160;13, 2005 and March&#160;13, 2007, respectively.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Option
    Exercises and Stock Vested</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="54%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=03 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=03 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=04 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=04 type=quadright -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=05 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=05 type=quadright -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Option Awards</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Stock Awards</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Value<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Value<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Acquired on<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Realized on<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Acquired on<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Realized on<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Exercise(#)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Exercise($)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Vesting(#)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Vesting($)</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Steven G. Miller
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Chairman of the Board, President
    and Chief Executive Officer
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Barry D. Emerson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Senior Vice President and Chief
    Financial Officer
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Thomas J. Schlauch
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">7,500
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
    <FONT style="font-size: 10pt">71,000
    </FONT>
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Senior Vice President, Buying
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Richard A. Johnson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Executive Vice President
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Gary S. Meade
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Senior Vice President, General
    Counsel and&#160;Secretary
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Employment
    Agreements and Change in Control Provisions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has an employment agreement with Mr.&#160;Steven G.
    Miller, who currently serves as Chairman of the Board, President
    and Chief Executive Officer.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Steven G. Miller&#146;s employment agreement provides that he
    will serve as Chairman of the Board of Directors, Chief
    Executive Officer and President for a term of four years from
    any given date, such that there shall always be a minimum of at
    least four years remaining under his employment agreement. The
    employment agreement provides for Mr.&#160;Miller to receive an
    annual base salary of $375,000, subject to annual increase based
    on comparable compensation packages provided to executives in
    similarly situated companies, and to participate in a bonus plan
    to be established by the Compensation Committee. His annual base
    salary has since been increased to $443,000 in 2006 and $463,000
    in 2007. In practice, his bonuses have been determined in the
    discretion of the Compensation Committee. Mr.&#160;Miller is
    also entitled to use of a Company automobile. In addition, as
    long as Mr.&#160;Miller serves as an officer, the Company will
    use its best efforts to ensure that he continues to serve on the
    Company&#146;s Board of Directors and on the Board of Directors
    of the Company&#146;s wholly-owned subsidiary, Big 5 Corp.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If Steven G. Miller&#146;s employment is terminated due to his
    death, the employment agreement provides for accelerated vesting
    of options that would have been exercisable during the
    24&#160;months following the termination date and the
    continuation of family medical benefits for the four years
    following the termination date. The table below reflects the
    estimated amount of payments and other benefits payable under
    Mr.&#160;Miller&#146;s employment agreement on a termination due
    to death, assuming that the termination occurred on
    December&#160;31, 2006 and based upon our closing stock price as
    of that date of $24.42.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Table
    Showing Benefits on a Termination Due to Death</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="41%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value of Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value of Medical<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Cash Severance</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Acceleration</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Continuation</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Steven G. Miller
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    97,125
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40,332
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    137,457
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If Steven G. Miller&#146;s employment is terminated due to his
    disability, the employment agreement provides that the Company
    will pay Mr.&#160;Miller as a lump sum severance payment an
    amount equal to his base salary for two years and an additional
    amount equal to two times the greater of (i)&#160;his last
    annual cash bonus or (ii)&#160;the average annual cash bonus
    paid during the last three fiscal years. In addition, the
    employment agreement provides for accelerated vesting of options
    that would have been exercisable during the 24&#160;months
    following the termination date and the continuation of specified
    benefits for the four years following the termination date. The
    table below reflects the estimated amount of payments and other
    benefits payable under Mr.&#160;Miller&#146;s employment
    agreement on a termination due to disability, assuming that the
    termination occurred on December&#160;31, 2006 and based upon
    our closing stock price as of that date of $24.42.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Table
    Showing Benefits on a Termination Due to Disability</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="29%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value of Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Medical<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Cash Severance</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Acceleration</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Continuation</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Perquisites(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Steven G. Miller
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,982,667
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    97,125
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    53,652
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    74,836
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,208,280
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    The amount in the Value of Perquisites column includes the value
    attributable to personal use of a Company-provided automobile in
    the annual amount of $18,709 for four years.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If Steven G. Miller terminates the employment agreement for good
    reason at any time, or for any reason within six months of a
    change in control, or if the Company terminates the employment
    agreement without cause at any time, the employment agreement
    provides the Company will pay Mr.&#160;Miller as a lump sum
    severance payment an amount equal to his base salary for four
    years and an additional amount equal to four times the greater
    of (i)&#160;his last annual cash bonus or (ii)&#160;the average
    annual cash bonus paid during the last three fiscal years. In
    addition, the employment agreement provides for accelerated
    vesting of all of his options and the continuation of specified
    benefits for the four years following the termination date.
    However, the employment agreement provides that payments in
    connection with the change in control will be reduced to the
    extent necessary to prevent them from being subject to the
    Golden Parachute Excise Tax of Internal Revenue Code
    Section&#160;4999. The table below reflects the estimated amount
    of payments and other benefits payable under
    Mr.&#160;Miller&#146;s employment agreement on a termination by
    Mr.&#160;Miller for good reason or due to a change in control or
    a termination by the Company without
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    cause, assuming that the termination occurred on
    December&#160;31, 2006 and based upon our closing stock price as
    of that date of $24.42.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Table
    Showing Benefits on a Termination by the Employee for Good
    Reason or Due to a Change</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>in Control or a Termination by the Company Without Cause</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="29%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value of Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Medical<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Cash Severance</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Acceleration</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Continuation</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Perquisites(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Steven G. Miller(2)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,965,333
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    146,813
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    53,652
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    74,836
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,240,634
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    The amount in the Value of Perquisites column includes the value
    attributable to personal use of a Company-provided automobile in
    the annual amount of $18,709 for four years.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Payments in connection with a change in control may be less than
    those shown in this table, since Mr.&#160;Miller&#146;s
    employment agreement provides such payments will be reduced to
    the extent necessary to prevent them from being subject to the
    Golden Parachute Excise Tax of Internal Revenue Code
    Section&#160;4999.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If Steven G. Miller terminates the employment agreement without
    good reason or the Company terminates the employment agreement
    for cause, Mr.&#160;Miller is entitled to receive all accrued
    and unpaid salary and other compensation and all accrued and
    unused vacation pay.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The employment of our Principal Financial Officer,
    Mr.&#160;Barry D. Emerson, with us is governed by an employment
    offer letter dated August&#160;16, 2005, which is referred to as
    the Offer Letter. The Offer Letter provides for Mr.&#160;Emerson
    to receive a starting annual base salary of $275,000 and a
    minimum starting annual bonus of $125,000, to be paid in the
    first quarter of 2006 and prorated based upon the period of
    employment during the 2005 fiscal year. Mr.&#160;Emerson&#146;s
    annual base salary has since been increased to $300,000 in 2006
    and to $315,000 in 2007. He received a bonus of $100,000 for
    2005 and a bonus of $185,000 for 2006. Pursuant to the Offer
    Letter, on the first day of his employment Mr.&#160;Emerson
    received a stock option grant to acquire 50,000&#160;shares of
    the Company&#146;s common stock, which vests 25%&#160;per year
    over four years and has a term of ten years. Pursuant to the
    Offer Letter, the exercise price for the options was $25.05, the
    closing price of the Company&#146;s common stock on the day that
    Mr.&#160;Emerson started work with the Company. In addition,
    Mr.&#160;Emerson will receive use of a Company automobile, and
    be eligible for future stock option grants, comparable to those
    provided to other senior vice presidents of the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the Offer Letter, we and Mr.&#160;Emerson have
    entered into a severance agreement that provides that his
    employment is &#147;at will&#148; but that, if we terminate his
    employment other than for &#147;cause&#148; (as defined in the
    severance agreement), Mr.&#160;Emerson will receive a severance
    package which will include one year&#146;s base salary and one
    year&#146;s health coverage for him and his family. Payment of
    the severance benefit is conditioned upon the execution of a
    release by Mr.&#160;Emerson of all claims he may have against
    us. The table below reflects the estimated amount of payments
    and other benefits payable under Mr.&#160;Emerson&#146;s
    severance agreement, assuming that the termination occurred on
    December&#160;31, 2006.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Table
    Showing Benefits on a Termination Other than for Cause</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="57%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value of Medical<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Cash Severance</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Continuation</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Barry D. Emerson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    300,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,466
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    311,466
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    of Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Board of Directors sets directors&#146; compensation based
    on its review of publicly-available information about what
    companies in our peer group pay their directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Directors who are also employees of the Company are compensated
    as officers of the Company and receive no additional
    compensation for serving as directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    During the fiscal year ended December&#160;31, 2006,
    non-employee directors received an annual retainer of $20,000
    for service on the Board of Directors, plus $2,500 for
    attendance at each regularly scheduled meeting of the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Board of Directors or each committee meeting not otherwise held
    on the day of a board meeting, and $1,000 for attendance by
    telephone at any specially called board meeting or committee
    meeting. The Chairs of the Audit Committee, Compensation
    Committee and Nominating Committee received additional annual
    retainers of $10,000, $5,000 and $5,000, respectively. In
    addition, in 2004, the Company adopted a policy pursuant to
    which each non-employee director was initially granted options
    to purchase 10,000&#160;shares of the Company&#146;s common
    stock and is annually granted options to purchase
    5,000&#160;shares of such stock. The options are to have an
    exercise price equal to the fair market value of the
    Company&#146;s common stock on the date of grant and vest in
    four equal annual installments. Initial grants under the policy
    were made in August 2004 and annual grants thereafter have been
    and will be made on the date of the Company&#146;s annual
    meeting of stockholders. Directors are also reimbursed for all
    <FONT style="white-space: nowrap">out-of-pocket</FONT>
    expenses incurred in attending such meetings. Dr.&#160;Miller
    has waived his right to receive his director fees and stock
    options.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In March, 2007, the Compensation Committee and the Board of
    Directors reviewed the existing director compensation plan.
    Based on that review, the determination was made to leave in
    place all the components of director compensation referenced
    above, with the following adjustments effective April, 2007:
    (a)&#160;the annual retainer for non-employee directors is
    increased to $30,000, (b)&#160;the additional annual retainer
    for the Chair of the Compensation Committee is increased to
    $7,500, (c)&#160;non-employee directors receive $2,500 for
    attendance at each committee meeting not held on the day of a
    board meeting or other committee meeting, and $1,000 for
    attendance at each committee meeting held on the day of a board
    meeting or other committee meeting, and (d)&#160;the annual
    grant of options is increased to 6,000&#160;shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Director
    Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="47%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Change in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Pension<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Fees<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Value and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Earned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Non-Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Nonqualified<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>or Paid<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Stock<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Option<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Incentive Plan<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Deferred<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>All Other<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>in Cash<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Awards<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Awards<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)(2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Earnings</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>($)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Sandra N. Bane
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,112
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98,612
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">G. Michael Brown
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,112
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89,112
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Jennifer Holden Dunbar
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,112
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95,112
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">David R. Jessick
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,389
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,480
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57,869
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Michael D. Miller
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">John G. Danhakl(1)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,167
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,021
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,188
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Danhakl resigned from the Board on March&#160;7, 2006.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    The amounts in the Option Awards column reflect the compensation
    expense recognized by the Company for financial reporting
    statement reporting purposes for the fiscal year ended
    December&#160;31, 2006, in accordance with
    SFAS&#160;No.&#160;123(R), <I>Share-Based Payment</I>,
    (excluding the impact of estimated forfeitures related to
    service-based vesting conditions), for awards pursuant to the
    2002 Stock Incentive Plan, and includes amounts attributable to
    awards granted during and before 2006. Details on assumptions
    made in the calculation of these amounts are included in
    Note&#160;13 to the Consolidated Financial Statements in the
    Company&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    filed with the Securities and Exchange Commission on
    March&#160;9, 2007.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Audit
    Committee Pre-approval Policies and Procedures</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee is required under the Sarbanes-Oxley Act of
    2002 and the rules of the Securities and Exchange Commission
    promulgated thereunder to pre-approve the auditing and
    permissible non-audit services performed by the Company&#146;s
    independent auditor to provide assurance that the provision of
    those services does not impair the independence of the auditor.
    The Audit Committee has adopted a pre-approval policy to assist
    it in carrying out this responsibility.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the pre-approval policy, the annual audit services
    engagement terms and fees are subject to the specific
    pre-approval of the Audit Committee. The Audit Committee will
    approve, if necessary, any changes in terms,
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    conditions
    <FONT style="white-space: nowrap">and/or</FONT> fees
    resulting from changes in audit scope, the Company&#146;s
    organizational structure or other matters. In addition, if the
    Audit Committee, after reviewing documentation detailing the
    specific services to be provided by the independent auditors and
    having discussions with management, determines that the
    performance of such services would not impair the independence
    of the independent auditor, the Audit Committee may also approve
    (i)&#160;audit-related services that are reasonably related to
    the performance of the audit or review of the Company&#146;s
    financial statements and that are traditionally performed by the
    independent auditor, (ii)&#160;tax services such as tax
    compliance, tax planning and tax advice
    <FONT style="white-space: nowrap">and/or</FONT>
    (iii)&#160;permissible non-audit services that it believes are
    routine and recurring services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All audit and permissible non-audit services provided by KPMG
    LLP to the Company for the fiscal years 2006 and 2005 were
    pre-approved in accordance with the Company&#146;s pre-approval
    policies and procedures.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Fees
    Billed by KPMG LLP</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The aggregate fees billed for professional services provided by
    KPMG LLP in fiscal years 2006 and 2005 were:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="77%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Type of Fees</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Audit Fees
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,573,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,013,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Audit-related Fees
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Tax Fees
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">All Other Fees
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Total Fees
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,596,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,038,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the above table, in accordance with the definitions of the
    Securities and Exchange Commission, &#147;audit fees&#148; are
    fees paid by the Company to KPMG LLP for the audit of the
    Company&#146;s consolidated financial statements included in its
    annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    and review of the unaudited financial statements included in its
    quarterly reports on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    or for services that are normally provided by the accountant in
    connection with statutory and regulatory filings or engagements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Audit-related Fees&#148; are fees billed by KPMG LLP for
    assurance and related services that are reasonably related to
    the performance of the audit or review of the Company&#146;s
    financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;Tax Fees&#148; are fees for tax compliance, tax advice and
    tax planning.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#147;All Other Fees&#148; are fees billed by KPMG LLP to the
    Company for any services not included in the first three
    categories.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Appointment
    of Auditors for Fiscal 2007</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    KPMG LLP is the independent registered public accounting firm
    that audited the Company&#146;s financial statements for fiscal
    2006. The Audit Committee has not yet selected the independent
    registered public accounting firm to audit the Company&#146;s
    financial statements for fiscal 2007, as it is in the process of
    evaluating proposals for these services. Representatives of KPMG
    LLP are expected to be present at the Annual Meeting. They will
    be given the opportunity to make a statement if they desire to
    do so, and they will be available to respond to appropriate
    questions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Audit
    Committee Report</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company&#146;s management has primary responsibility for the
    Company&#146;s financial statements and overall reporting
    process, including the Company&#146;s system of internal control
    over financial reporting and assessing the effectiveness of
    internal control over financial reporting. The Company&#146;s
    independent registered public accounting firm audits the annual
    financial statements prepared by management, expresses an
    opinion as to whether those financial statements fairly present
    the financial position, results of operations and cash flows of
    the Company in conformity with accounting principles generally
    accepted in the United States and discusses with the Audit
    Committee any issues that the independent registered public
    accounting firm believes should be brought to its
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    attention. The Audit Committee oversees and monitors the
    Company&#146;s financial reporting process and the quality of
    its internal and external audit process.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee has reviewed the Company&#146;s audited
    financial statements for the fiscal year ended December&#160;31,
    2006 and the notes thereto and discussed such financial
    statements with management and KPMG LLP, the Company&#146;s
    independent registered public accounting firm. Management has
    represented to the Audit Committee that the financial statements
    were prepared in accordance with accounting principles generally
    accepted in the United States.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee has discussed with KPMG LLP the matters
    required to be discussed by Statement on Auditing Standards
    No.&#160;61 (as amended), which includes, among other items, the
    independent registered public accounting firm&#146;s
    responsibilities, any significant issues arising during the
    audit and any other matters related to the conduct of the audit
    of the Company&#146;s financial statements. The Audit Committee
    also discussed with KPMG LLP such other matters as are required
    to be discussed by other standards of the Public Company
    Accounting Oversight Board (United States), rules of the
    Securities and Exchange Commission and other applicable
    regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee has received the written disclosures and the
    letter from KPMG LLP regarding its independence as required by
    Independence Standards Board Standard No.&#160;1 and has
    discussed with KPMG LLP its independence from the Company. In
    addition, the Audit Committee concluded that KPMG LLP&#146;s
    provision of non-audit services to the Company and its
    subsidiaries, as described above, is compatible with maintaining
    KPMG LLP&#146;s independence.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee also reviewed management&#146;s report on
    its assessment of the effectiveness of the Company&#146;s
    internal control over financial reporting and the independent
    registered public accounting firm&#146;s report on
    management&#146;s assessment and the effectiveness of the
    Company&#146;s internal control over financial reporting. The
    Audit Committee discussed with management and the independent
    registered public accounting firm the prior material weaknesses
    and significant control deficiencies identified during the
    course of previous assessments and the audit and
    management&#146;s remediation of them.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Audit Committee discussed with the Company&#146;s
    independent registered public accounting firm the overall scope
    and plans for its audit. The Audit Committee meets with the
    independent registered public accounting firm, with and without
    management present, to discuss the results of its examination,
    its evaluation of the Company&#146;s internal control, including
    internal control over financial reporting, and the overall
    quality of the Company&#146;s financial reporting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Conclusion</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based on the review and discussions referred to above, the Audit
    Committee recommended to the Company&#146;s Board of Directors
    that the Company&#146;s audited financial statements and
    management&#146;s assessment of effectiveness of the
    Company&#146;s internal control over financial reporting be
    included in the Company&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the fiscal year ended December&#160;31, 2006 for filing with
    the Securities and Exchange Commission.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    SUBMITTED BY AUDIT COMMITTEE OF
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE BOARD OF DIRECTORS
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Sandra N. Bane (Chair)
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Jennifer Holden Dunbar
</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    David R. Jessick
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    April&#160;20, 2007
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>No portion of this Audit Committee Report shall be deemed to
    be incorporated by reference into any filing under the
    Securities Act or the Exchange Act, through any general
    statement incorporating by reference in its entirety the Proxy
    Statement in which this report appears, except to the extent
    that the Company specifically incorporates this </I>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    19
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>report or a portion of it by reference. In addition, this
    report shall not be deemed to be filed under either the
    Securities Act or the Exchange Act.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transactions
    with Related Persons, Promoters and Certain Control
    Persons</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our Audit Committee charter requires that the Audit Committee
    review on an ongoing basis and approve or disapprove all related
    party transactions that are required to be disclosed by
    Item&#160;404 of
    <FONT style="white-space: nowrap">Regulation&#160;S-K.</FONT>
    The items described below were approved by the Audit Committee,
    except to the extent that items arise out of periods prior to
    the establishment of that requirement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Prior to September 1992, the predecessor to what is now the
    Company&#146;s wholly owned operating subsidiary, Big 5 Corp.,
    was a wholly owned subsidiary of Thrifty Corporation
    (&#147;Thrifty&#148;), which was in turn a wholly owned
    subsidiary of Pacific Enterprises. In December 1996, Thrifty was
    acquired by Rite Aid Corp. (&#147;Rite Aid&#148;). The Company
    leases certain property from Rite Aid, which leases this
    property from an outside party. Charges related to these leases
    totaled $1.1&#160;million for fiscal 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    G.&#160;Michael Brown is a director of the Company and a partner
    of the law firm of Musick, Peeler&#160;&#38;Garrett LLP. From
    time to time, the Company retains Musick, Peeler&#160;&#38;
    Garrett LLP to handle various litigation matters. The Company
    received services from the law firm of Musick, Peeler&#160;&#38;
    Garrett LLP amounting to $0.5&#160;million in fiscal year 2006,
    and amounts due to Musick, Peeler&#160;&#38; Garrett LLP totaled
    $0.1&#160;million as of December&#160;31, 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has an employment agreement with Robert W. Miller
    which provides that he will serve as Chairman Emeritus of the
    Board of Directors for a term of three years from any given
    date, such that there will always be a minimum of at least three
    years remaining under his employment agreement. The employment
    agreement provides for Robert W. Miller to receive an annual
    base salary of $350,000, as well as specified perquisites. If
    Robert W. Miller&#146;s employment is terminated by either
    Robert W. Miller or the Company for any reason, the employment
    agreement provides that the Company will pay Robert W. Miller
    his annual base salary and provide specified benefits for the
    remainder of his life. The employment agreement also provides
    that in the event Robert W. Miller is survived by his wife, the
    Company will pay his wife his annual base salary and provide her
    specified benefits for the remainder of her life. Robert W.
    Miller is the co-founder of the Company and the father of Steven
    G. Miller, Chairman of the Board, Chief Executive Officer and a
    director of the Company, and Michael D. Miller, a director of
    the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company recognized expenses of $0.2&#160;million in fiscal
    2006 to provide for a liability for the future obligations under
    this agreement. Based upon actuarial valuation estimates related
    to this agreement, the Company recorded a liability of
    $2.3&#160;million as of December&#160;31, 2006. The actuarial
    assumptions used included a discount rate of 5.50% as well as
    the use of a mortality table as of December&#160;31, 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Bradley A. Johnson, the son of Richard A. Johnson, the
    Company&#146;s Executive Vice President, is employed by the
    Company as a Buyer. Bradley A. Johnson received a salary of
    $103,654 in fiscal 2006 and earned a bonus of $26,500. The
    salary and bonus received by Bradley A. Johnson is consistent
    with those paid to other Company employees with similar
    responsibilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the indemnification provisions contained in the
    Company&#146;s Amended and Restated Certificate of Incorporation
    and Bylaws, the Company has indemnification agreements with each
    of its directors and executive officers. These agreements, among
    other things, provide for indemnification of the Company&#146;s
    directors and executive officers for expenses, judgments, fines
    and settlement amounts (collectively, &#147;Liabilities&#148;)
    incurred by any such person in any action or proceeding arising
    out of such person&#146;s services as a director or executive
    officer or at the Company&#146;s request, if the applicable
    director or executive officer acted in good faith and in a
    manner he or she reasonably believed to be in or not opposed to
    the best interests of the Company. These agreements also require
    the Company to advance expenses incurred by any of its directors
    or executive officers in connection with any proceeding against
    such individual with respect to which such individual may be
    entitled to indemnification by the Company. Pursuant to these
    agreements, the Company may advance expenses and indemnify, and
    in certain cases is required to advance expenses and indemnify,
    the Company&#146;s directors and executive officers for certain
    Liabilities incurred in connection with or related to the
    previously-disclosed <I>Childers </I>action. In fiscal 2006, the
    Company advanced $210,755 to directors and officers for payment
    of attorneys&#146; fees and litigation costs in connection with
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    this matter. Additional information regarding the <I>Childers
    </I>lawsuit is contained in the Company&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for fiscal year 2006 which was mailed to stockholders with this
    Proxy Statement, under Item&#160;3, &#147;Legal
    Proceedings.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Section&#160;16(a)
    Beneficial Ownership Reporting Compliance</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Based solely upon review of copies of Section&#160;16(a) reports
    furnished to the Company during or with respect to the year
    ended December&#160;31, 2006, the Company believes that all
    Section&#160;16(a) reporting requirements were met during fiscal
    2006, except that (a)&#160;the reports of the grant of options
    for 5,000&#160;shares each of the Company&#146;s common stock to
    Sandra N. Bane, G. Michael Brown, Jennifer Holden Dunbar and
    David R. Jessick that occurred on June&#160;20, 2006 were not
    timely filed (the reports were due by June&#160;22, 2006 and
    were filed on July&#160;6, 2006, (b)&#160;the report of an
    exercise of an option by Thomas J. Schlauch to purchase
    2,500&#160;shares of the Company&#146;s common stock that
    occurred on August&#160;9, 2006 was not timely filed (the report
    was due by August&#160;11, 2006 and was filed on August&#160;16,
    2006), and (c)&#160;the report of a sale of 10,000&#160;shares
    of the Company&#146;s common stock by Michael D. Miller that
    occurred on August&#160;21, 2006 was not timely filed (the
    report was due by August&#160;23, 2006 and was filed on
    August&#160;25, 2006).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Security
    Ownership of Certain Beneficial Owners and Management</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth information regarding beneficial
    ownership of the Company&#146;s common stock as of
    April&#160;24, 2007 by:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each of the Named Executive Officers listed in the Summary
    Compensation Table on page&#160;11;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each of the Company&#146;s directors;
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    each person, or group or affiliated persons, who is known by the
    Company to beneficially own more than 5% the Company&#146;s
    common stock;&#160;and
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all current directors and executive officers as a group.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as otherwise indicated in the footnotes below, each
    beneficial owner has the sole power to vote and to dispose of
    all shares held by that holder. Percentage ownership is based on
    22,691,867&#160;shares of common stock outstanding as of
    April&#160;24, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="76%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B>Beneficial Ownership<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>of Common Stock</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name (1)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Shares</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percent (%)(2)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Steven G. Miller
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,323,607
</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Sandra N. Bane
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,500
</TD>
<TD nowrap align="left" valign="bottom">
    (4)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">G. Michael Brown
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,500
</TD>
<TD nowrap align="left" valign="bottom">
    (5)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Jennifer Holden Dunbar
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,893
</TD>
<TD nowrap align="left" valign="bottom">
    (6)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">David R. Jessick
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,250
</TD>
<TD nowrap align="left" valign="bottom">
    (7)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Michael D. Miller
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    265,000
</TD>
<TD nowrap align="left" valign="bottom">
    (8)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Thomas J. Schlauch
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,500
</TD>
<TD nowrap align="left" valign="bottom">
    (9)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Richard A. Johnson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    169,702
</TD>
<TD nowrap align="left" valign="bottom">
    (10)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Gary S. Meade
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,500
</TD>
<TD nowrap align="left" valign="bottom">
    (11)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Barry D. Emerson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,500
</TD>
<TD nowrap align="left" valign="bottom">
    (12)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">All directors and executive
    officers as a group (12&#160;persons)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,911,202
</TD>
<TD nowrap align="left" valign="bottom">
    (13)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">5% Stockholders</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Neuberger Berman, Inc.(14)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,697,449
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">FMR Corp.(15)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,033,257
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Wasatch Advisors, Inc.(16)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,537,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Indicates less than 1%.<BR>
    To the Company&#146;s knowledge, none of the shares held by
    directors and executive officers have been pledged as security
    for any obligation.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    The address for each stockholder is 2525 East El Segundo
    Boulevard, El Segundo, California 90245, except as otherwise
    indicated below.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Shares of common stock subject to options that are currently
    exercisable or exercisable within 60&#160;days of April&#160;24,
    2007 are deemed to be outstanding and beneficially owned by the
    person holding such options or who otherwise has beneficial
    ownership thereof for the purpose of computing the percentage
    ownership of such person, but are not deemed to be outstanding
    for the purpose of computing the percentage ownership of any
    other person.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 885,000&#160;shares of common stock held by Steven G.
    Miller and Jacquelyne G. Miller, as trustees of the Steven G.
    Miller and Jacquelyne G. Miller Trust dated September&#160;13,
    1990, 374,232&#160;shares of common stock held by Robert W. and
    Florence Miller Family Partners, L.P., of which Steven G. Miller
    is a limited partner and shares dispositive power with respect
    to the shares pursuant to a trading authorization dated
    November&#160;12, 2004 executed by Robert W. Miller and Florence
    H. Miller, as general partners, and 64,375&#160;shares which may
    be acquired upon the exercise of options exercisable within
    60&#160;days of April&#160;24, 2007. Mr.&#160;Miller disclaims
    beneficial ownership in the shares owned by Robert W. and
    Florence Miller Family Partners, L.P. except to the extent of
    his pecuniary interest therein. Jacquelyne G. Miller shares
    beneficial ownership of the 885,000&#160;shares of common stock
    held by the Steven G. Miller and Jacquelyne G. Miller Trust
    dated September&#160;13, 1990.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 7,500&#160;shares which may be acquired upon the
    exercise of options exercisable within 60&#160;days of
    April&#160;24, 2007.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 7,500&#160;shares which may be acquired upon the
    exercise of options exercisable within 60&#160;days of
    April&#160;24, 2007.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 2,393&#160;shares of common stock held by Jennifer
    Holden Dunbar, Trustee of the Lilac&#160;II Trust dated
    June&#160;28, 2000 and 7,500&#160;shares which may be acquired
    upon the exercise of options exercisable within 60&#160;days of
    April&#160;24, 2007.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 1,250&#160;shares which may be acquired upon the
    exercise of options exercisable within 60&#160;days of
    April&#160;24, 2007.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (8) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents 265,000&#160;shares of common stock held by Michael
    D. Miller, Trustee of the Miller Living Trust dated
    December&#160;11, 1997.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (9) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 10,500&#160;shares which may be acquired upon the
    exercise of options exercisable within 60&#160;days of
    April&#160;24, 2007.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (10) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 20,500&#160;shares which may be acquired upon the
    exercise of options exercisable within 60&#160;days of
    April&#160;24, 2007.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (11) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 20,500&#160;shares which may be acquired upon the
    exercise of options exercisable within 60&#160;days of
    April&#160;24, 2007.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (12) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 17,500&#160;shares which may be acquired upon the
    exercise of options exercisable within 60&#160;days of
    April&#160;24, 2007.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (13) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes 178,125&#160;shares which the directors and executive
    officers may be deemed to have beneficial ownership with respect
    to options to purchase the Company&#146;s common stock
    exercisable within 60&#160;days of April&#160;24, 2007.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (14) </TD>
    <TD></TD>
    <TD valign="bottom">
    The address for Neuberger Berman, Inc. is 605 Third Ave., New
    York, NY
    <FONT style="white-space: nowrap">10158-3698,</FONT>
    as reported in the Schedule&#160;13G/A filed with the Securities
    and Exchange Commission on February&#160;13, 2007. According to
    Items&#160;6 and 7 of the Schedule&#160;13G/A filed by the
    stockholder on February&#160;13, 2007, as a parent holding
    company of Neuberger Berman LLC and Neuberger Berman Management
    Inc. which manage certain accounts in which the reported shares
    are held, stockholder has been granted the shared authority to
    dispose of and vote those shares. Stockholder&#146;s holdings
    are based upon the holdings disclosed in the Schedule&#160;13G/A.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (15) </TD>
    <TD></TD>
    <TD valign="bottom">
    The address for FMR Corp. is 82 Devonshire Street, Boston,
    Massachusetts 02109, as reported in the Schedule&#160;13G/A
    filed with the Securities and Exchange Commission on
    February&#160;14, 2007. According to Items&#160;3 and 7 of the
    Schedule&#160;13G/A filed by the stockholder on
    February&#160;14, 2007, as a parent holding company of certain
    investment advisors and banks which manage accounts in which the
    reported shares are held, stockholder has been granted the
    authority to dispose of the shares. Stockholder&#146;s holdings
    are based upon the holdings disclosed in the Schedule&#160;13G/A.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (16) </TD>
    <TD></TD>
    <TD valign="bottom">
    The address for Wasatch Advisors, Inc. is 150 Social Hall
    Avenue, Suite&#160;400, Salt Lake City, UT 84111, as reported in
    the Schedule&#160;13G/A filed with the Securities and Exchange
    Commission on February&#160;15, 2007. According to Item&#160;3
    of the Schedule&#160;13G/A filed by the stockholder on
    February&#160;15, 2007, the stockholder is an investment advisor
    and has been granted the authority to dispose of and vote the
    shares reported. Stockholder&#146;s holdings are based upon the
    holdings disclosed in the Schedule&#160;13G/A.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "PROPOSAL 2 APPROVAL OF 2007 EQUITY AND PERFORMANCE INCENTIVE PLAN" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROPOSAL&#160;2</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>APPROVAL OF 2007 EQUITY AND PERFORMANCE INCENTIVE PLAN</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>(Item&#160;No.&#160;2 on Proxy Card)</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The stockholders of the Company are being asked to approve the
    adoption of the Company&#146;s 2007 Equity and Performance
    Incentive Plan (the &#147;Plan&#148;). The 2007 Equity and
    Performance Incentive Plan has been adopted by the
    Company&#146;s Board of Directors, but no options, stock
    appreciation rights, restricted stock, other stock unit awards,
    performance awards or dividend equivalents have yet been granted
    under the Plan. The Company has not granted any stock
    appreciation rights, restricted stock, other stock unit awards,
    or dividend equivalents.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Purpose
    of the Plan</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company has two stock plans currently outstanding: the 2002
    Stock Incentive Plan and the 1997 Management Equity Plan (the
    &#147;Prior Plans&#148;). The 1997 Management Equity Plan will
    terminate in November 2007. As of April&#160;24, 2007, there
    were no shares subject to awards granted under the 1997
    Management Equity Plan, and the Company has no plans to make any
    further grants under that plan. As of April&#160;24, 2007,
    2,399,250&#160;shares remain available for grant under the 2002
    Stock Incentive Plan, and there were outstanding under the 2002
    Plan options to purchase 1,150,000&#160;shares of common stock
    with a weighted average exercise price of $19.42 and a weighted
    average remaining term of 7.67&#160;years. However, the 2002
    Stock Incentive Plan permits only the grant of stock options,
    and does not provide for the grant of restricted stock, stock
    appreciation rights and some of the other equity incentives
    described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Accordingly, the Board of Directors believes that adoption of
    the Plan is necessary to ensure that the Company maintains the
    ability in the future to continue to attract and retain highly
    qualified officers and other employees by providing adequate
    incentives through the issuance of stock options, stock
    appreciation rights, restricted stock, other stock unit awards,
    and performance awards, so as to incentivize and retain key
    employees of the Company, which can assist in maximizing the
    full potential of shareholder value. The adoption of the Plan
    will also permit the award of other stock unit awards or
    performance awards payable in cash or shares, or the award of
    restricted stock with restrictions lapsing on the attainment of
    performance goals, to certain executive officers of the Company
    which will qualify as &#147;performance based&#148; compensation
    under Section&#160;162(m) of the Code, as discussed below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The aggregate amount of shares authorized for issuance under the
    Plan will be 2,399,250, the same number of shares that remain
    available for grant under the 2002 Stock Incentive Plan as of
    April&#160;24, 2007, plus any shares subject to awards granted
    under the Prior Plans which are forfeited, expire or are
    cancelled after the effective date of the Plan. Thus, although
    we are asking our stockholders to approve the Plan, we are not
    asking them to authorize the issuance of more shares than
    remained available for issuance under the Prior Plans. We will
    not make any grants under the Prior Plans from April&#160;24,
    2007 until the date of the Annual Meeting.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Required
    Vote</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Affirmative votes representing a majority of the votes cast
    &#147;FOR&#148;, &#147;AGAINST&#148; or &#147;ABSTAIN&#148; with
    respect to the proposal in person or by proxy and entitled to
    vote at the Annual Meeting will be required to approve this
    proposal. A vote to &#147;ABSTAIN&#148; on the proposal will be
    considered as a vote cast with respect to such matter, and will
    have the same effect as a vote &#147;AGAINST&#148; the proposal.
    Broker non-votes will have no effect on the proposal.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Effect of
    Vote on Prior Plans</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On the approval of the Plan at the Annual Meeting, as described
    above, the Company will cancel the Prior Plans, so that no
    further grants or awards will be made under the Prior Plans.
    However, grants and awards made under the Prior Plans before
    their cancellation will continue in effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>THE BOARD OF DIRECTORS RECOMMENDS A VOTE &#147;FOR&#148;
    APPROVAL OF THE 2007 EQUITY AND PERFORMANCE INCENTIVE PLAN.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    of the Plan</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The principal features of the Plan are summarized below. This
    summary, however, is not intended to be a complete discussion of
    all of the terms of the Plan. A copy of the Plan is attached
    hereto as Appendix&#160;B.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Shares&#160;Subject
    to the Plan</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Up to an aggregate of 2,399,250&#160;shares of common stock of
    the Company, plus any shares subject to awards granted under the
    Prior Plans which are forfeited, expire or are cancelled after
    April&#160;24, 2007 (the effective date of the Plan), are
    authorized for issuance under the Plan. The maximum aggregate
    number of shares which may be subject to ISOs (as defined below)
    will be 2,399,250&#160;shares. Any shares that are subject to
    awards of options or stock appreciation rights shall be counted
    against this limit as one share for every one share granted,
    regardless of the number of shares actually delivered pursuant
    to the awards. Any shares that are subject to awards other than
    options or stock appreciation rights (including shares delivered
    on the settlement of dividend equivalents) shall be counted
    against this limit as 2.5&#160;shares for every one share
    granted. The aggregate number of shares available under the Plan
    and the number of shares subject to outstanding options will be
    increased or decreased to reflect any changes in the outstanding
    common stock of the Company by reason of any recapitalization,
    spin-off, reorganization, reclassification, stock dividend,
    stock split, reverse stock split, or similar transaction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any shares subject to an award under the Plan or to an award
    under the Prior Plans are forfeited, expire or are cancelled
    without issuance of such shares, the shares shall again be
    available for awards under the Plan. Any shares that again
    become available for grant shall be added back as one share if
    such shares were subject to options or stock appreciation rights
    granted under the Plan or options or stock appreciation rights
    granted under the Prior Plans and as 2.5&#160;shares if such
    shares were subject to awards other than options or stock
    appreciation rights granted under the Plan. Shares which are
    received or withheld by the Company to satisfy tax liabilities
    arising from the grant or exercise of an option or award, or as
    a result of the use of shares to pay the option price, shall not
    again be available to awards under the Plan.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Eligibility
    and Participation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All employees (including officers), directors, and consultants
    of the Company or any subsidiary are eligible for selection to
    receive awards under the Plan, subject to the following
    restrictions: (1)&#160;no ISO may be granted to any person who,
    at the time of grant, is not an employee of the Company or any
    subsidiary, and (2)&#160;no participant may be granted options
    or stock appreciation rights during any fiscal year of the
    Company with respect to more than 500,000&#160;shares,
    (3)&#160;no participant may be granted restricted stock,
    performance awards
    <FONT style="white-space: nowrap">and/or</FONT> other
    stock unit awards that are denominated in shares in any fiscal
    year of the Company with respect to more than
    250,000&#160;shares, and (4)&#160;the maximum dollar value
    payable to any participant in any fiscal year of the Company
    with respect to performance awards
    <FONT style="white-space: nowrap">and/or</FONT> other
    stock unit awards that are valued with reference to cash or
    property other than shares is $2,000,000. The share limitations
    set forth above are subject to adjustment in the event of a
    reorganization, spin-off, recapitalization, reclassification,
    stock dividend, stock split, reverse stock split, or similar
    transaction during any fiscal year of the Company or portion
    thereof. If an option or stock appreciation right expires or
    terminates for any reason without having been exercised in full,
    or if any award is cancelled, the unpurchased shares subject to
    that expired or terminated option or stock appreciation right or
    cancelled award continue to be counted against the maximum
    number of shares for which options or stock appreciation rights
    or other awards may be granted to a participant during a fiscal
    year of the Company. Subject to such limitations, an individual
    who has been granted an option or stock appreciation right or
    other award may, if such individual is otherwise eligible, be
    granted additional options or stock appreciation rights or other
    awards as the Committee may determine.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Administration
    of the Plan</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Plan shall be administered by the Compensation Committee of
    the Board of Directors (the &#147;Committee&#148;), consisting
    of two or more directors of the Company who are
    (a)&#160;&#147;non-employee directors&#148; within the meaning
    of
    <FONT style="white-space: nowrap">Rule&#160;16b-3</FONT>
    of the Exchange Act, and (b)&#160;&#147;outside directors&#148;
    within the meaning of Section&#160;162(m) of the Code (as
    defined below) and (c)&#160;&#147;independent directors&#148;
    under Nasdaq or other applicable stock exchange rules; except
    that, so long as the Committee contains at least two such
    directors that meet the above requirements, the Committee may
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    also include one additional director who does not meet those
    criteria if he or she abstains or recuses himself or herself in
    connection with voting on grants and awards to all Covered
    Employees (as defined in the Plan) and to all officers of the
    Company who are subject to Section&#160;16 of the Exchange Act.
    The Committee has extremely broad discretion and power in
    interpreting and operating the Plan and in determining the
    employees, directors and consultants who shall be participants,
    and the terms of individual options, stock appreciation rights,
    restricted stock, other stock unit awards, performance awards,
    and dividend equivalents. To the extent permitted by applicable
    law, the Committee may delegate to one or more directors or
    officers the authority to grant awards to employees or officers
    who are not directors, &#147;covered employees&#148; whose
    compensation is subject to the limits of Section&#160;162(m) of
    the Code, or officers subject to the short-swing rules of
    Section&#160;16 of the Exchange Act. For a description of the
    limitation on deductibility under Section&#160;162(m) of the
    Code for compensation paid to certain executive officers, see
    &#147;&#151;&#160;Federal Income Tax Matters&#160;&#151;
    $1,000,000 Limit on Deductible Compensation.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Types of
    Awards</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Awards under the Plan may consist of options, stock appreciation
    rights, restricted stock, other stock unit awards, performance
    awards, or dividend equivalents. The nature of each of such
    types of awards is discussed below. Each award will be made by
    an award agreement whose form and content shall be determined by
    the Committee in its discretion, consistent with the provisions
    of the Plan. The terms of award agreements for a particular type
    of award need not be uniform.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Type of
    Options</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Two types of options may be granted under the Plan: options
    intended to qualify as incentive stock options
    (&#147;ISOs&#148;) under Section&#160;422 of the Internal
    Revenue Code of 1986, as amended (the &#147;Code&#148;), and
    options not so qualified for favorable federal income tax
    treatment (&#147;NSOs&#148;).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stock
    Appreciation Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee, in its discretion, may also issue stock
    appreciation rights to employees, consultants and directors of
    the Company. A stock appreciation right is a right to receive a
    payment based on the increase in the fair market value of a
    share after the date of grant. The Committee may determine, in
    its discretion, that a stock appreciation right will be paid out
    in cash or in shares on its exercise. The number of shares that
    may be issued on the exercise of a stock appreciation right
    shall be determined by dividing: (a)&#160;the total number of
    shares as to which the stock appreciation right is exercised,
    multiplied by the amount by which the fair market value of one
    share on the exercise date exceeds the fair market value of one
    share on the date of grant of the stock appreciation right, by
    (b)&#160;the fair market value of one share on the exercise
    date; provided, however, that fractional shares shall not be
    issued and in lieu thereof, a cash adjustment shall be paid. In
    lieu of issuing shares on the exercise of a stock appreciation
    right, the Committee may in its sole discretion elect to pay the
    cash value of such shares. The Committee will not, however, take
    any action regarding a stock appreciation right, or otherwise
    under the Plan, that could subject a participant to a penalty
    tax under Section&#160;409A of the Code.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Restricted
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee, in its discretion, may also grant awards of
    restricted stock to participants. Restricted stock shall be
    shares granted or sold to a participant that are subject to
    vesting restrictions based on continued employment or attainment
    of performance goals. Restricted stock that vests solely upon
    continued service of the grantee will not fully vest over a
    period of less than three years, but vesting may occur ratably
    over the vesting period.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Other
    Stock Unit Awards</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee, in its discretion, may grant other stock unit
    awards, which are awards valued in whole or part by reference
    to, or otherwise based on, shares. Other stock unit awards shall
    be subject to such conditions and restrictions as may be
    determined by the Committee, and may be payable in the form of
    cash or shares. Stock unit awards that vest solely upon
    continued service of the grantee will not fully vest over a
    period of less than three years, but vesting may occur ratably
    over the vesting period.
</DIV>

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    <BR>
    26
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<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Performance
    Awards and Code Section&#160;162(m) Provisions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee, in its discretion, may issue performance awards
    to participants, the payment of which will be determined by the
    achievement of performance goals over a performance period. Upon
    the grant of a performance award, the Committee shall determine
    the relevant performance goals and the performance period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The performance goals shall be based on the attainment of
    specified levels, or growth, of one or any combination of the
    following factors, or an objective formula determined at the
    time of the award that is based on modified or unmodified
    calculations of one or any combination of the following factors:
    net sales; pretax income before or after allocation of corporate
    overhead and bonus; earnings per share; net income; division,
    group or corporate financial goals; return on stockholders&#146;
    equity; return on assets; attainment of strategic and
    operational initiatives; appreciation in
    <FONT style="white-space: nowrap">and/or</FONT>
    maintenance of the price of the shares or any other
    publicly-traded securities of the Company; market share; gross
    profits; earnings before taxes; earnings before interest and
    taxes; earnings before interest, taxes, depreciation and
    amortization (&#147;EBITDA&#148;); an adjusted formula of EBITDA
    determined by the Committee; economic value-added models;
    comparisons with various stock market indices; reductions in
    costs,
    <FONT style="white-space: nowrap">and/or</FONT>
    return on invested capital of the Company or any affiliate,
    division or business unit of the Company for or within which the
    participant is primarily employed. Such performance goals also
    may be based solely by reference to the Company&#146;s
    performance or the performance of an affiliate, division or
    business unit of the Company, or based upon the relative
    performance of other companies or upon comparisons of any of the
    indicators of performance relative to other companies. Unless
    the Committee determines otherwise when it sets the performance
    goals for an award, objective adjustments shall be made to any
    of the foregoing measures for items that will not properly
    reflect the Company&#146;s financial performance for these
    purposes, such as the write-off of debt issuance costs,
    pre-opening and development costs, gain or loss from asset
    dispositions, asset or other impairment charges, litigation
    settlement costs, and other non-routine items that may occur
    during the performance period. Also, unless the Committee
    determines otherwise in setting the performance goals for an
    award, such performance goals shall be applied by excluding the
    impact of (a)&#160;restructurings, discontinued operations, and
    charges for extraordinary items, (b)&#160;an event either not
    directly related to the operations of the Company or not within
    the reasonable control of the Company&#146;s management, or
    (c)&#160;a change in accounting standards required or
    recommended by generally accepted accounting principles.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The performance period shall be determined by the Committee, but
    shall not be shorter than one year nor longer than five years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Performance awards will generally be paid only after the end of
    the relevant performance period, and may be paid in cash,
    shares, other property, or any combination thereof, in the sole
    discretion of the Committee at the time of payment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Compensation Committee may determine, in its discretion,
    that performance awards granted to executive officers of the
    Company whose compensation is subject to the deductibility limit
    of Section&#160;162(m) of the Code will qualify as
    &#147;performance based&#148; compensation. The Compensation
    Committee may likewise determine that the vesting of restricted
    stock, and the vesting or payment of any other stock unit award,
    granted to such an executive officer will be subject to the
    achievement of the objective performance goals over a
    performance period, and thus satisfy the requirements to be
    &#147;performance based&#148; compensation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the case of any performance award, restricted stock, or other
    stock unit award that is intended to constitute
    &#147;performance based&#148; compensation, the performance
    goals and other terms and conditions of the award will be set by
    the Committee within the time prescribed by Section&#160;162(m)
    and the regulations thereunder. If the performance period is
    12&#160;months or longer, such performance goals must be set by
    the Committee within the first 90&#160;days of the performance
    period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee may adjust downward, but not upward, the amount
    payable to any executive officer of the Company under any award
    that is intended to constitute &#147;performance based&#148;
    compensation. The Committee may not waive the achievement of the
    applicable performance goals, except in the case of death or
    disability of the participant, or the occurrence of a change in
    control of the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Before the vesting, payment, settlement or lapsing of any
    restrictions with respect to any award that is intended to
    constitute &#147;performance based&#148; compensation, the
    Committee shall certify in writing that the applicable
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    27
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    performance criteria have been achieved to the extent necessary
    for such award to qualify as &#147;performance based&#148;
    compensation within the meaning of Section&#160;162(m) of the
    Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee shall have the power to impose such other
    restrictions on awards intended to constitute &#147;performance
    based&#148; compensation as it may deem necessary or appropriate
    to ensure that such awards satisfy all requirements to
    constitute &#147;performance based&#148; compensation within the
    meaning of Section&#160;162(m), or which are not inconsistent
    with such requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unless affirmative votes representing a majority of the votes
    cast under applicable law or rules approve the continuation of
    the &#147;performance based&#148; compensation provisions of the
    Plan at the first duly constituted meeting of the stockholders
    of the Company that occurs in the fifth year following the
    effective date of the Plan, no awards other than stock options
    or stock appreciation rights, or restricted stock that is not
    intended to be &#147;performance based&#148; compensation, shall
    be made following the date of such meeting to executive officers
    of the Company whose compensation is subject to the deduction
    limit of Section&#160;162(m). Under currently applicable law or
    rules, to be duly constituted, a majority of the shares of
    capital stock outstanding and entitled to vote would have to be
    present in person or by proxy at the meeting at which
    stockholders vote to approve the continuation of the
    &#147;performance based&#148; compensation provisions of the
    Plan.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Dividend
    Equivalents</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee, in its sole discretion, may determine that a
    participant who receives an award will also be entitled to
    receive, currently or on a deferred basis, cash, stock or other
    property dividends, or cash payments in amounts equivalent to
    stock or other property dividends on shares (&#147;dividend
    equivalents&#148;) with respect to the number of shares covered
    by the award. The Committee may also provide that such amounts
    (if any) shall be deemed to have been reinvested in additional
    shares or otherwise reinvested. In the event of a
    recapitalization, reorganization, spin-off, reclassification,
    stock dividend, stock split, reverse stock split or similar
    transaction, the Committee may, in its discretion, make an
    appropriate adjustment to dividend equivalents.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Option
    and Other Award Price</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The purchase price for shares covered by each option shall not
    be less than 100% of the fair market value of such shares on the
    date of grant, but if an ISO is granted to a more than 10%
    shareholder of the Company or its subsidiaries (measured by
    ownership of voting power), the purchase price of an ISO shall
    not be less than 110% of the fair market value of such shares on
    the date of grant. The base price for a stock appreciation right
    shall not be less than 100% of the fair market value of shares
    as of the date of grant. The Committee, in its discretion, may
    determine the purchase price, if any, for restricted stock,
    other stock unit awards, and performance awards.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Exercisability
    of Options and Stock Appreciation Rights; Vesting of Restricted
    Stock and Other Awards</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee shall determine when and under what conditions any
    option or stock appreciation right shall become exercisable and
    when restricted stock, other stock unit awards, and performance
    awards shall become vested. However, the aggregate fair market
    value of shares of common stock of the Company (determined at
    the date of grant) for which ISOs (whenever granted) are
    exercisable for the first time by a participant during any
    calendar year shall not exceed $100,000; any options in excess
    of this limit shall be treated as NSOs. The purchase price of
    shares on the exercise of an option shall be paid in full at the
    time of exercise in cash or by check payable to the order of the
    Company, or, subject to the approval of the Committee and
    subject to applicable law, by the delivery of shares of common
    stock of the Company already owned by the participant, through a
    &#147;broker&#146;s&#148; exercise involving the immediate sale
    or pledge of shares with a value sufficient to pay the exercise
    price, or by any other method permitted by applicable law. The
    Committee shall determine, in its discretion, the form of any
    payment for restricted stock, other stock unit awards, and
    performance shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Duration
    of Options and Stock Appreciation Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each option or stock appreciation right shall expire on the date
    specified by the Committee, but all options and stock
    appreciation rights shall expire within 10&#160;years of the
    date of grant. ISOs granted to more than 10%
</DIV>

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    <BR>
    28
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    shareholders of the Company (measured by ownership of voting
    power) shall expire within five years from the date of grant.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">No
    Repricing</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee has no authority to reprice any option, to reduce
    the base price of any stock appreciation right, or cancel any
    option in exchange for cash or another award when the fair
    market value of shares is less than the option&#146;s exercise
    price per share.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Termination
    of Employment</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a participant ceases to be employed by the Company or any of
    its subsidiaries for any reason (including death or permanent
    disability) other than termination for cause, the
    participant&#146;s options that were vested and exercisable
    shall remain exercisable until the end of the original term or
    for the period determined by the Committee in the individual
    option agreement or otherwise, whichever expires earlier. After
    a participant&#146;s death, options may be exercised by the
    person or persons to whom the participant&#146;s rights pass by
    will or the laws of descent and distribution. Unless the
    Committee determines otherwise in its discretion, similar rules
    shall apply to stock appreciation rights. The treatment of each
    award of restricted stock, other stock unit award, or
    performance award on the termination of employment, death, or
    disability of the participant shall be determined by the
    Committee in its discretion. If a participant&#146;s employment
    is terminated for cause, all of his awards may be immediately
    terminated and canceled, in the Committee&#146;s discretion.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Certain
    Corporate Transactions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the happening of a merger, reorganization or sale of
    substantially all of the assets of the Company or other change
    of control events specified in the Plan, the Committee, may, in
    its sole discretion, do one or more of the following:
    (i)&#160;shorten the period during which options and stock
    appreciation rights are exercisable (provided they remain
    exercisable for at least 30&#160;days after the date notice of
    such shortening is given to the participants);
    (ii)&#160;accelerate in whole or in part any vesting schedule to
    which an option, stock appreciation right, restricted stock,
    other stock unit award or performance award is subject;
    (iii)&#160;arrange to have the surviving or successor entity or
    any parent entity thereof assume the restricted stock, other
    stock unit awards, stock appreciation rights or options or grant
    replacement options or stock appreciation rights with
    appropriate adjustments in the option prices and adjustments in
    the number and kind of securities issuable upon exercise;
    (iv)&#160;cancel options upon payment to the participants in
    cash of an amount that is the equivalent of the excess of the
    fair market value of the common stock of the Company (at the
    effective time of the merger, reorganization, sale or other
    event) over the exercise price of the option to the extent the
    options are vested and exercisable, and cancel stock
    appreciation rights by paying the value thereof; or
    (v)&#160;make any other modification or adjustment that the
    Committee deems appropriate in its discretion. The Committee may
    also provide for one or more of the foregoing alternatives in
    any particular award agreement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Rights as
    a Stockholder</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The recipient of an option or stock appreciation right will have
    no rights as a stockholder with respect to shares of Company
    common stock covered by an option or stock appreciation right
    until the date such recipient becomes a holder of record of such
    shares, unless the Committee, in its discretion, elects to grant
    the participant dividend equivalent rights in connection with
    such option or stock appreciation right. The recipient of
    restricted stock or of an other stock unit award will generally
    have all the rights of a shareholder with respect to the shares
    of common stock of the Company issued pursuant to such award,
    including the right to vote such shares, but the Committee may
    determine that any dividends and distributions with respect to
    such shares will be subject to the same vesting restrictions, if
    any, as the underlying shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Assignability
    of Options, Stock Appreciation Rights and Other Awards</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An ISO granted under the Plan shall, by its terms, be
    non-transferable by the participant, either voluntarily or by
    operation of law, other than by will or the laws of descent and
    distribution, and shall be exercisable during the
    participant&#146;s lifetime only by him or her. Any award issued
    under the Plan other than an ISO shall be nontransferable
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    29
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    by the participant, either voluntarily or by operation of law,
    other than by will or the laws of descent and distribution, or,
    with the consent of the Committee, during the participant&#146;s
    lifetime by gift to one or more members of the
    participant&#146;s immediate family or to a trust for their
    benefit.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Duration,
    Termination and Amendment of the Plan</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Plan shall be effective on the date of its adoption by the
    Board, subject to the approval of the Plan, within
    12&#160;months thereafter, by affirmative votes representing a
    majority of the votes cast under applicable law or rules at a
    duly constituted meeting of the stockholders of the Company.
    Under currently applicable law or rules, to be duly constituted,
    a majority of the shares of Company&#146;s common stock
    outstanding and entitled to vote would have to be present in
    person or by proxy at the meeting at which stockholders vote to
    approve the Plan. After the adoption of the Plan by the Board,
    awards may be made, but all such awards shall be subject to such
    stockholder approval of this Plan within 12&#160;months of its
    adoption by the Board, and no options or stock appreciation
    rights may be exercised before such stockholder approval of the
    Plan. If the stockholders do not approve the Plan within
    12&#160;months after its adoption by the Board, the Plan, and
    all awards granted thereunder, shall be null and void and of no
    effect. Once adopted, the Plan shall continue in effect for
    10&#160;years thereafter. The Board of Directors, however, may
    suspend or terminate the Plan at any time. However, unless
    affirmative votes representing a majority of the votes cast
    under applicable law or rules approve the continuation of the
    &#147;performance based&#148; compensation provisions of the
    Plan at the first duly constituted meeting of the stockholders
    of the Company that occurs in the fifth year following the
    effective date of the Plan, no awards other than options or
    stock appreciation rights, or restricted stock that is not
    intended to constitute &#147;performance based&#148;
    compensation, shall be made following the date of such meeting
    to executive officers of the Company whose compensation is
    subject to the deduction limit of Section&#160;162(m). Under
    currently applicable rules, to be duly constituted, a majority
    of the shares of capital stock outstanding and entitled to vote
    would have to be present in person or by proxy at the meeting at
    which stockholders vote to approve the continuation of the
    &#147;performance based&#148; compensation provisions of the
    Plan. The suspension or termination of the Plan will generally
    not affect the validity of any option, stock appreciation right,
    restricted stock, other stock unit award, performance award or
    dividend equivalent outstanding on the date of termination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors may also amend the Plan at any time,
    except that the Board will not amend the Plan in a way which
    violates
    <FONT style="white-space: nowrap">Rule&#160;16b-3</FONT>
    of the Exchange Act. The Board will not amend the Plan without
    obtaining stockholder approval to (a)&#160;increase the number
    of shares that may be the subject of awards under the Plan,
    (b)&#160;expand the types of awards available under the Plan,
    (c)&#160;materially expand the class of persons eligible to
    participate in the Plan, (d)&#160;amend any provision
    prohibiting the Committee from repricing options or taking
    similar action, (e)&#160;increase the maximum permissible term
    of any option, (f)&#160;amend the limits on grants of awards to
    any participant during a
    <FONT style="white-space: nowrap">12-month</FONT>
    period, or (g)&#160;make any modification that requires
    stockholder approval under applicable law. Furthermore, no
    amendment of the Plan shall amend or impair any rights or
    obligations under any award theretofore granted under the Plan
    without the written consent of the holder of the affected award.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">New Plan
    Benefits</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Awards to be received by participants in the Plan are not
    determinable at this time because the Committee, in its
    discretion, will determine the nature and performance criteria
    for any award provided under the Plan at the time of grants.
    Performance awards in particular are dependent upon a
    combination of performance criteria, including net sales,
    EBITDA, earnings per share, return on stockholders&#146; equity,
    division, group or corporate financial goals, and other factors.
    As a result, the grants that may be awarded under the Plan are
    not determinable until the Committee assesses the criteria
    relevant to each individual participant for the particular
    performance period of the award. For similar reasons, the
    Company cannot determine the awards that would have been granted
    during the Company&#146;s 2006 fiscal year under the Plan if it
    had been in place during that year.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Federal
    Income Tax Matters</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following discussion of federal income tax consequences does
    not purport to be a complete analysis of all of the potential
    tax effects of the Plan. It is based upon laws, regulations,
    rulings and decisions now in effect, all of which are subject to
    change. No information is provided with respect to persons who
    are not citizens or residents of the United States, or foreign,
    state or local tax laws, or estate and gift tax considerations.
    In addition, the tax
</DIV>

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    <BR>
    30
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    consequences to a particular participant may be affected by
    matters not discussed above. ACCORDINGLY, EACH PARTICIPANT IS
    URGED TO CONSULT HIS TAX ADVISOR CONCERNING THE TAX CONSEQUENCES
    TO HIM OF THE PLAN, INCLUDING THE EFFECTS OF STATE, LOCAL,
    FOREIGN AND OTHER TAX LAWS AND OF CHANGES IN THE TAX LAWS.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Plan is not subject to any of the provisions of the Employee
    Retirement Income Security Act of 1974 (&#147;ERISA&#148;) and
    is not qualified under Section&#160;401(a) of the Code.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Non-Qualified
    Stock Options</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under current federal income tax law, the grant of an NSO has no
    tax effect on the Company or the participant. If the shares of
    common stock of the Company received on the exercise of an NSO
    are not subject to restrictions on transfer or risk of
    forfeiture, the exercise of the NSO will result in ordinary
    income to the participant equal to the excess of the fair market
    value of the shares at the time of exercise over the option
    price. The participant&#146;s tax basis in the shares will be
    equal to the option price plus the amount of ordinary income
    recognized upon the exercise of the option. Upon any subsequent
    disposition of the shares, any gain or loss recognized by the
    participant will be treated as capital gain or loss and will be
    long-term capital gain or loss if the shares are held for more
    than one year after exercise. At the time of recognition of
    ordinary income by the participant upon exercise, the Company
    will normally be allowed to take a deduction for federal income
    tax purposes in an amount equal to such recognized ordinary
    income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the shares received on the exercise of an NSO are subject to
    restrictions on transfer or risk of forfeiture (e.g., a vesting
    condition), different rules will apply, and the tax consequences
    will depend on whether the participant makes an election under
    Section&#160;83(b) of the Code within 30&#160;days after
    exercise of the option. If the participant does not make a
    Section&#160;83(b) election, the participant will recognize
    ordinary income when the shares vest in an amount equal to the
    excess of the fair market value on the date of vesting over the
    exercise price. In that case, the participant&#146;s basis in
    the shares will be the fair market value of the shares on the
    date of vesting, and participant&#146;s holding period will
    begin on the date of vesting. Upon any later disposition of the
    shares, any gain or loss that the participant recognizes will be
    capital gain or loss, and will be long-term capital gain or loss
    if the participant holds the shares more than one year after
    vesting. The Company will be allowed a deduction for federal
    income tax purposes when the shares vest equal to the amount of
    ordinary income the participant recognizes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On the other hand, if the participant makes a Section&#160;83(b)
    election, the participant will recognize ordinary income at the
    time of exercise equal to the excess of the fair market value on
    the date of exercise over the exercise price. The Company will
    be allowed a deduction for federal income tax purposes on the
    date of exercise equal to the amount of ordinary income he or
    she recognizes. The participant&#146;s basis in the shares will
    generally begin on the date of exercise, and the
    participant&#146;s basis in the shares will generally be the
    option price increased by the amount of ordinary income the
    participant recognized at the time of exercise. Upon any later
    disposition of the shares, any gain or loss that the participant
    recognizes will be capital gain or loss, and will be long-term
    capital gain or loss if the participant holds the shares more
    than one year after exercise. However, if the participant later
    forfeits the shares, the participant will recognize a capital
    loss equal to excess (if any) of the option price over any
    amount the participant receives from the Company on the
    forfeiture. In other words, if a participant makes the
    Section&#160;83(b) election and thereby recognizes ordinary
    income on the date of exercise, the participant will receive no
    corresponding deduction or loss if the participant later
    forfeits the shares for the amount of ordinary income the
    participant recognized.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Incentive
    Stock Options</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The federal income tax consequences associated with ISOs are
    generally more favorable to the participant and less favorable
    to the Company than those associated with NSOs. Under current
    federal income tax law, the grant of an ISO does not result in
    income to the participant or in a deduction for the Company at
    the time of the grant. Generally, the exercise of an ISO will
    not result in income for the participant if the participant does
    not dispose of the shares within two years after the date of
    grant or within one year after the date of exercise. If these
    requirements are met, the basis of the shares of common stock of
    the Company upon a later disposition will be the option price,
    any gain on the later disposition will be taxed to the
    participant as long-term capital gain, and the Company will not
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    31
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    be entitled to a deduction. The excess of the market value on
    the exercise date over the option price is an adjustment to
    regular taxable income in determining alternative minimum
    taxable income, which could cause the participant to be subject
    to the alternative minimum tax, thereby in effect depriving the
    participant of the tax benefits of ISO treatment. If the
    participant disposes of the shares before the expiration of
    either of the holding periods described above (a
    &#147;Disqualifying Disposition&#148;), the participant will
    have compensation taxable as ordinary income, and the Company
    will normally be entitled to a deduction, equal to the lesser of
    (a)&#160;the fair market value of the shares on the exercise
    date minus the option price, or (b)&#160;the amount realized on
    the disposition minus the option price. If the price realized in
    any such Disqualifying Disposition of the shares exceeds the
    fair market value of the shares on the exercise date, the excess
    will be treated as long-term or short-term capital gain,
    depending on the participant&#146;s holding period for the
    shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Stock
    Appreciation Rights</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A participant holding a stock appreciation right will recognize
    ordinary income on the exercise of the stock appreciation right
    equal to the amount of cash or the fair market value of the
    shares he receives on the exercise. The Company will receive a
    tax deduction in the same amount. Upon disposition of the shares
    acquired, the participant will recognize the appreciation or
    depreciation on the shares after the date of grant as either
    short-term or long-term capital gain or loss, depending on how
    long the shares have been held.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    Awards</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The taxation of an award other than an option or a stock
    appreciation right depends on whether or not it consists of
    restricted stock (i.e., stock subject to a vesting restriction
    based on continued employment or attainment of performance
    goals). If an other stock unit award or a performance award does
    not consist of restricted stock, and is not settled in
    restricted stock, the participant will recognize ordinary income
    on the receipt of cash or shares equal to the amount of cash, or
    the excess of the fair market value of the shares over the
    amount (if any) that the participant pays for the shares. The
    Company will receive a tax deduction in the same amount. Upon
    disposition of the shares acquired, the participant will
    recognize the appreciation or depreciation on the shares after
    the date of grant as either short-term or long-term capital gain
    or loss, depending on how long the shares have been held.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In general, no taxable income will be recognized by a
    participant at the time restricted stock is granted. Generally,
    on the date the restricted stock becomes vested, the participant
    will recognize ordinary income in an amount equal to the
    difference between the fair market value of the shares on the
    date the shares vest and the purchase price, and the Company
    will receive a tax deduction for the same amount. Upon
    disposition of the shares acquired, the participant will
    recognize the appreciation or depreciation on the shares after
    the date of vesting as either short-term or long-term capital
    gain or loss, depending on how long the shares have been held.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Alternatively, a participant may elect to make an election under
    Section&#160;83(b) of the Code with respect to unvested shares.
    If a participant makes a Section&#160;83(b) election with the
    Internal Revenue Service within 30&#160;days from the date of
    grant, the participant will recognize ordinary income in an
    amount equal to the difference between the fair market value of
    the shares on the date of grant and the purchase price, and the
    Company will receive a tax deduction for the same amount. If the
    participant makes a timely Section&#160;83(b) election, the
    participant will not recognize ordinary income when the shares
    vest. Upon disposition of the shares acquired, the participant
    will recognize the appreciation or depreciation on the shares
    after the date of grant as either short-term or long-term
    capital gain or loss, depending on how long the shares have been
    held. If the participant forfeits unvested shares, the
    participant will recognize a capital loss equal to the excess
    (if any) of the purchase price over any amount the participant
    receives from the Company on the forfeiture. Generally, if the
    participant makes a Section&#160;83(b) election, and thereby
    recognizes ordinary income on the date of grant, the participant
    will receive no corresponding deduction or loss for the amount
    of ordinary income the participant recognized if the participant
    later forfeits any unvested shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">$1,000,000
    Limit on Deductible Compensation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;162(m) of the Code provides that any
    publicly-traded corporation will be denied a deduction for
    compensation paid to certain executive officers to the extent
    that the compensation exceeds $1,000,000&#160;per officer
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    32
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    per year. However, the deduction limit does not apply to
    &#147;performance based&#148; compensation, as defined in
    Section&#160;162(m). Compensation is performance based
    compensation if (i)&#160;the compensation is payable on account
    of the attainment of one or more performance goals;
    (ii)&#160;the performance goals are established by a
    compensation committee of the Board of Directors of directors
    consisting of &#147;outside directors&#148;; (iii)&#160;the
    material terms of the compensation and the performance goals are
    disclosed to and approved by the stockholders in a separate
    vote; and (iv)&#160;the compensation committee certifies that
    the performance goals have been satisfied. The Company believes
    that, if the stockholders approve the Plan, the stock options
    and stock appreciation rights granted thereunder will satisfy
    the requirements to be treated as performance based
    compensation, and accordingly will not be subject to the
    deduction limit of Section&#160;162(m) of the Code. As discussed
    above, the Committee may determine that restricted stock, other
    stock unit awards, and performance awards granted to executive
    officers whose compensation is subject to the deduction limit of
    Section&#160;162(m) will also qualify as performance based
    compensation. Restricted stock whose vesting is based solely on
    the completion by the recipient of a stated period of service
    with the Company will not qualify as performance based
    compensation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Excess
    Parachute Payments</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Section&#160;4999 of the Code, certain officers,
    stockholders, or highly- compensated individuals
    (&#147;Disqualified Individuals&#148;) will be subject to an
    excise tax (in addition to federal income taxes) of 20% of the
    amount of certain &#147;excess parachute payments&#148; which
    they receive as a result of a change in control of the Company.
    Furthermore, Section&#160;280G of the Code prevents the Company
    from taking a deduction for any &#147;excess parachute
    payments.&#148; The cash out or acceleration of the vesting of
    stock options, stock appreciation rights, restricted stock,
    other stock unit awards or performance awards upon a change of
    control may cause the holders of such stock options, stock
    appreciation rights, restricted stock, other stock unit awards
    and performance awards who are Disqualified Individuals to
    recognize certain amounts as &#147;excess parachute
    payments&#148; on which they must pay the 20% excise tax, and
    for which the Company will be denied a tax deduction.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Special
    Rules; Withholding of Taxes</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Special tax rules may apply to a participant who is subject to
    Section&#160;16 of the Exchange Act. Other special tax rules
    will apply if a participant exercises a stock option by
    delivering shares of Company common stock which he or she
    already owns, or through a &#147;broker&#146;s exercise.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company may take whatever steps the Committee deems
    appropriate to comply with any applicable withholding tax
    obligation in connection with the exercise of an option or stock
    appreciation right or the grant or vesting of restricted stock,
    other stock unit awards, or performance awards, including
    requiring any participant to pay the amount of any applicable
    withholding tax to the Company in cash. The Committee may, in
    its discretion, authorize &#147;cashless withholding.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Other
    Matters</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Management knows of no business which will be presented for
    consideration at the Annual Meeting other than as stated in the
    Notice of Annual Meeting. If, however, other matters are
    properly brought before the Annual Meeting, it is the intention
    of the proxyholders to vote the shares represented by the
    proxies on such matters in accordance with the recommendation of
    the Board of Directors and authority to do so is included in the
    proxy.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    33
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "STOCKHOLDER PROPOSALS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">STOCKHOLDER
    PROPOSALS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to be eligible for inclusion in the Company&#146;s
    proxy statement and proxy card for the next annual meeting of
    the Company&#146;s stockholders pursuant to
    <FONT style="white-space: nowrap">Rule&#160;14a-8</FONT>
    under the Exchange Act, stockholder proposals must be received
    by the Secretary of the Company at its principal executive
    offices no later than January&#160;5, 2008 if the next annual
    meeting were held within 30&#160;days of June&#160;19, 2008. In
    the event that the Company elects to hold its next annual
    meeting more than 30&#160;days before or after the anniversary
    of this Annual Meeting, such stockholder proposals would have to
    be received by the Company a reasonable time before the
    Company&#146;s solicitation is made. Further, in order for the
    stockholder proposals to be eligible to be brought before the
    Company&#146;s stockholders at the next annual meeting, the
    stockholder submitting such proposals must also comply with the
    procedures, including the deadlines, required by the
    Company&#146;s Amended and Restated Bylaws. Stockholder
    nominations of directors are not stockholder proposals within
    the meaning of
    <FONT style="white-space: nowrap">Rule&#160;14a-8</FONT>
    and are not eligible for inclusion in the Company&#146;s proxy
    statement. The Company will provide a copy of its Amended and
    Restated Bylaws to any stockholder of record upon written
    request.
</DIV>


<!-- link1 "ANNUAL REPORT ON FORM 10-K" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ANNUAL
    REPORT ON
    <FONT style="white-space: nowrap">FORM&#160;10-K</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Company&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K,</FONT>
    as amended and exclusive of exhibits, including financial
    statements for fiscal year 2006, was mailed to stockholders with
    this Proxy Statement and contains financial and other
    information about the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The information set forth under &#147;Compensation Committee
    Report&#148; and &#147;Audit Committee Report&#148; and the
    Company-operated website referenced in this Proxy Statement
    shall not be deemed filed with the Securities and Exchange
    Commission or subject to Regulations 14A or 14C or to the
    liabilities of Section&#160;18 of the Exchange Act and shall not
    be incorporated by reference in any filing of the Company under
    the Securities Act of 1933, as amended, or the Exchange Act,
    whether made before or after the date hereof and irrespective of
    any general incorporation language in any such filing.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE COMPANY WILL PROVIDE WITHOUT CHARGE A COPY OF ITS ANNUAL
    REPORT ON
    <FONT style="white-space: nowrap">FORM&#160;10-K,</FONT>
    INCLUDING THE FINANCIAL STATEMENTS AND THE FINANCIAL STATEMENT
    SCHEDULES, FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR
    FISCAL YEAR 2006 TO ANY BENEFICIAL OWNER OF THE COMPANY&#146;S
    COMMON STOCK AS OF THE RECORD DATE UPON WRITTEN REQUEST TO BIG 5
    SPORTING GOODS CORPORATION, 2525 EAST EL SEGUNDO BOULEVARD, EL
    SEGUNDO CALIFORNIA, 90245, ATTENTION: SECRETARY.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    34
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "APPENDIX A" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">APPENDIX&#160;A</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Big 5
    Sporting Goods Corporation<BR>
    Charter for Audit Committee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (amended and restated February&#160;10, 2004)
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;I<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Formation
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors (the &#147;<U>Board</U>&#148;) of Big 5
    Sporting Goods Corporation (the &#147;<U>Corporation</U>&#148;)
    has established the Audit Committee (the
    &#147;<U>Committee</U>&#148;) pursuant to Section&#160;141(c)(2)
    of the Delaware General Corporation Law and Article&#160;IV,
    Section&#160;1 of the Corporation&#146;s Bylaws.
</DIV>


<!-- link1 "ARTICLE II Purpose" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;II<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Purpose
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;&#160;The purpose of the Committee is to oversee the
    accounting and financial reporting processes of the Corporation
    and the audits of the Corporation&#146;s financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;&#160;Management is responsible for preparing the
    Corporation&#146;s financial statements and for their accuracy
    and the Corporation&#146;s independent auditors are responsible
    for auditing those financial statements. While the Committee has
    certain authority and oversight responsibilities under this
    Charter, it is not the responsibility of the Committee to plan
    or conduct audits. In the absence of their possession of reason
    to believe that such reliance is unwarranted, the members of the
    Committee may rely without independent verification on the
    information provided to them and on the representations made by
    the Corporation&#146;s management and the Corporation&#146;s
    independent auditors. Accordingly, the Committee&#146;s
    oversight does not provide an independent basis to determine
    that management has maintained appropriate accounting and
    financial reporting principles or appropriate internal controls
    and procedures designed to assure compliance with accounting
    standards and applicable laws and regulations. Furthermore, the
    Committee&#146;s authority and oversight responsibilities do not
    assure that the audits of the Corporation&#146;s financial
    statements have been carried out in accordance with generally
    accepted auditing standards, that the financial statements are
    presented in accordance with generally accepted accounting
    principles or that the Corporation&#146;s independent auditors
    are in fact &#147;independent.&#148;
</DIV>


<!-- link1 "ARTICLE III Composition" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;III<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Composition
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee shall consist of at least three directors, each of
    whom shall meet the independence requirements of the Nasdaq
    National Market, the Securities and Exchange Commission and any
    other applicable law (except as may be allowed by those
    requirements in exceptional circumstances). In addition, no
    person may be a member of the Audit Committee who has
    participated in the preparation of the financial statements of
    the Corporation or any of its current subsidiaries at any time
    during the past three years. Subject to the foregoing, the exact
    number of members of the Committee shall be fixed and may be
    changed from time to time by resolution duly adopted by the
    Board.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each member shall be able to read and understand fundamental
    financial statements, including a company&#146;s balance sheet,
    income statement, and cash flow statement. At least one member
    of the Committee must have past employment experience in finance
    or accounting, requisite professional certification in
    accounting, or any other comparable experience or background
    that results in such individual&#146;s financial sophistication,
    including being or having been a chief executive officer, chief
    financial officer or other senior officer with financial
    oversight responsibilities.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-1
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The members of the Committee shall be appointed by the Board and
    continue to be members until their successors are elected and
    qualified as directors and appointed to the Committee or until
    their earlier resignation or removal. Any member of the
    Committee may be removed, with or without cause, by the Board at
    any time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board may appoint one member to serve as Chair of the
    Committee. The Chair shall set the agenda for the
    Committee&#146;s meetings, convene and chair the
    Committee&#146;s regular and special meetings and act as the
    Committee&#146;s representative to the Board in communicating
    with the Board and management. If the Board fails to appoint a
    Chair of the Committee, the members of the Committee shall elect
    a Chair by majority vote of the full Committee to serve at the
    pleasure of the majority of the full Committee.
</DIV>


<!-- link1 "ARTICLE IV Responsibilities" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;IV<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Responsibilities
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The principal responsibilities and functions of the Committee
    are set forth below. The Committee is authorized to carry out
    these responsibilities and other responsibilities assigned to it
    by the Board from time to time, and to take any action
    reasonably related to the mandate of this Charter. Subject to
    any restrictions set forth in the Corporation&#146;s Certificate
    of Incorporation and Bylaws and applicable law, the Committee
    shall have all power and authority necessary or appropriate to
    carry out its purposes and responsibilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee&#146;s role in performing its responsibilities and
    functions is one of oversight. The Corporation&#146;s management
    is responsible for preparing the Corporation&#146;s financial
    statements and the Corporation&#146;s independent auditors are
    responsible for auditing those financial statements.
    Additionally, the Committee recognizes that financial
    management, as well as the Corporation&#146;s independent
    auditors, have more time, knowledge and more detailed
    information concerning the Corporation than do Committee
    members; consequently, in carrying out its oversight
    responsibilities, the Committee is not providing any expert or
    special assurance as to the Corporation&#146;s financial
    statements or any professional certification as to work of the
    Corporation&#146;s independent auditors. Further, auditing
    literature, particularly Statement of Auditing Standards
    (&#147;<U>SAS</U>&#148;) No.&#160;71, defines the term
    &#147;review&#148; to include a particular set of required
    procedures to be undertaken by independent auditors. The members
    of the Committee are not independent auditors, and the term
    &#147;review&#148; as applied to the Committee in this Charter
    is not intended to have that meaning and should not be
    interpreted to suggest that the Committee members can or should
    follow the procedures required of auditors performing reviews of
    financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A.&#160;&#160;<U>Independent Auditors</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="8%"></TD>
    <TD width="4%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    1.&#160;&#160;
</TD>
    <TD align="left">
    Be directly responsible for the appointment, compensation,
    retention and oversight of the work of any registered public
    accounting firm engaged by the Corporation (including resolution
    of disagreements between management and the auditor regarding
    financial reporting) for the purpose of preparing or issuing an
    audit report or performing other audit, review or attest
    services for the Corporation. The independent auditors shall
    report directly to the Committee.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    2.&#160;&#160;
</TD>
    <TD align="left">
    Pre-approve all audit and permissible non-audit services to be
    performed for the Corporation by a registered public accounting
    firm in accordance with the provisions of &#167;&#160;10A(i) of
    the Securities Exchange Act of 1934, as amended.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    3.&#160;&#160;
</TD>
    <TD align="left">
    Review and discuss with the independent auditors their audit
    procedures, including the scope, fees and timing of the audit,
    and the results of the annual audit examination and any
    accompanying management letters, and any reports of the
    independent auditors with respect to interim periods.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    4.&#160;&#160;
</TD>
    <TD align="left">
    Discuss with the Corporation&#146;s independent auditors the
    matters required to be discussed by SAS No.&#160;61
    (Codification of Statements on Auditing Standards, AU
    &#167;&#160;380), as may be modified or supplemented.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    5.&#160;&#160;
</TD>
    <TD align="left">
    At least annually, discuss with the independent auditors their
    independence and receive each of the following in writing:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="13%"></TD>
    <TD width="4%"></TD>
    <TD width="83%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (a)&#160;&#160;
</TD>
    <TD align="left">
    Disclosure of all relationships between the auditors and their
    related entities and the Corporation and its related entities or
    services provided by the auditors and their related entities to
    the
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-2
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

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

<TR>
    <TD width="13%"></TD>
    <TD width="4%"></TD>
    <TD width="83%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    Corporation and its related entities that in the auditors&#146;
    professional judgment may reasonably be thought to bear on
    independence, consistent with Independence Standards Board
    Standard No.&#160;1, as may be modified or supplemented, or
    impact the objectivity of the independent auditors;&#160;and
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="13%"></TD>
    <TD width="5%"></TD>
    <TD width="82%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    (b)&#160;&#160;
</TD>
    <TD align="left">
    Confirmation that, in the auditors&#146; professional judgment,
    the independent auditors are independent of the Corporation
    within the meaning of the federal securities laws.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="8%"></TD>
    <TD width="4%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    6.&#160;&#160;
</TD>
    <TD align="left">
    Review and concur with the Corporation&#146;s hiring as an
    employee or engaging as a contractor or consultant of any
    employees of the Corporation&#146;s independent auditors who
    were engaged on the account of the Corporation or any of its
    subsidiaries in the most recent twelve months.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    7.&#160;&#160;
</TD>
    <TD align="left">
    At least annually, evaluate the independent auditors&#146;
    qualifications, performance and independence, including a review
    and evaluation of the lead partner of the independent auditors,
    and present its conclusions to the Board. In making its
    evaluation, the Committee should take into account the opinions
    of management and should consider whether, in order to assure
    continuing auditor independence, there should be regular
    rotation of the audit firm itself.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    8.&#160;&#160;
</TD>
    <TD align="left">
    Prepare an audit committee report for inclusion in the
    Corporation&#146;s annual proxy statement in accordance with the
    rules promulgated by the SEC.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    B.&#160;<U>Financial Statements</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="8%"></TD>
    <TD width="4%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    1.&#160;&#160;
</TD>
    <TD align="left">
    Review and discuss with the Corporation&#146;s independent
    auditors and management the Corporation&#146;s audited financial
    statements and quarterly financial statements, including the
    Corporation&#146;s disclosures under &#147;Management&#146;s
    Discussion and Analysis of Financial Condition and Results of
    Operations&#148; in the Corporation&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    and Quarterly Reports on
    <FONT style="white-space: nowrap">Form&#160;10-Q.</FONT>
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    2.&#160;&#160;
</TD>
    <TD align="left">
    Review and discuss with management and the independent auditors
    any transactions or courses of dealing with parties related to
    the Corporation which transactions are significant in size or
    involve terms or other aspects that differ from those that would
    likely be negotiated with independent parties, and which
    arrangements or transactions are relevant to an understanding of
    the Corporation&#146;s financial statements.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    3.&#160;&#160;
</TD>
    <TD align="left">
    Review and discuss with management and the independent auditors
    the accounting policies that may be viewed as critical, any
    significant changes in the Corporation&#146;s accounting
    policies and any accounting or financial reporting proposals
    that may have a significant impact on the Corporation&#146;s
    financial reports. Inquire about the Corporation&#146;s
    independent auditors&#146; views about management&#146;s choices
    among alternative accounting principles and the quality of the
    Corporation&#146;s accounting principles as applied in its
    financial reporting.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    4.&#160;&#160;
</TD>
    <TD align="left">
    Review and discuss with management and the independent auditors
    any material off-balance sheet transactions, arrangements,
    obligations (including contingent obligations) and other
    relationships of the Corporation with entities of which the
    Committee is made aware whose accounts are not consolidated in
    the financial statements of the Corporation and that may have a
    material current or future effect on the Corporation&#146;s
    financial condition, results of operations, liquidity, capital
    expenditures, capital resources or significant components of
    revenues or expenses.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    5.&#160;&#160;
</TD>
    <TD align="left">
    Review and recommend action with respect to the results of each
    independent audit of the Corporation&#146;s financial
    statements, including problems encountered in connection with
    such audit and recommendations of the independent auditors
    arising as a result of such audit.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    6.&#160;&#160;
</TD>
    <TD align="left">
    Based on (a)&#160;its review and discussions with management of
    the Corporation&#146;s audited financial statements,
    (b)&#160;its discussion with the independent auditors of the
    matters to be communicated pursuant to SAS 61 and (c)&#160;the
    written disclosures from the Corporation&#146;s independent
    auditors regarding independence, recommend to the Board whether
    the Corporation&#146;s audited financial statements should be
    included in the Corporation&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the last fiscal year for filing with the Securities and
    Exchange Commission.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-3
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    C.&#160;<U>Internal Accounting</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="8%"></TD>
    <TD width="4%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    1.&#160;&#160;
</TD>
    <TD align="left">
    Review with the Corporation&#146;s independent auditors and
    financial management (a)&#160;the adequacy and effectiveness of
    the Corporation&#146;s system of disclosure controls and
    procedures and internal controls over financial reporting;
    (b)&#160;all significant deficiencies in the design or operation
    of the Corporation&#146;s internal controls over financial
    reporting that could adversely affect the Corporation&#146;s
    ability to record, process, summarize and report financial data;
    (c)&#160;any fraud, whether or not material, that involves
    management or other employees who have a significant role in the
    Corporation&#146;s internal controls over financial reporting;
    (d)&#160;the adequacy and effectiveness of those portions of the
    Corporation&#146;s code of business conduct and ethics that
    relate to the integrity of the Corporation&#146;s financial
    reporting; and (e)&#160;the related findings and recommendations
    of the Corporation&#146;s independent auditors together with
    management&#146;s responses.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    D.&#160;<U>Management and Employee Conduct Policies</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="8%"></TD>
    <TD width="4%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    1.&#160;&#160;
</TD>
    <TD align="left">
    Review from time to time and make recommendations with respect
    to the Corporation&#146;s policies relating to management
    conduct and oversee procedures and practices to ensure
    compliance therewith. Such policies shall include, without
    limitation, those relating to (a)&#160;transactions between the
    Corporation and members of its management, (b)&#160;political
    contributions and other sensitive payments, (c)&#160;compliance
    with the Foreign Corrupt Practices Act and (d)&#160;corporate or
    competitive opportunities offered to or enjoyed by members of
    such management.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    2.&#160;&#160;
</TD>
    <TD align="left">
    Make interpretations from time to time as to the scope and
    application of the Corporation&#146;s management conduct
    policies.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    3.&#160;&#160;
</TD>
    <TD align="left">
    Review periodically with senior management the provisions of the
    Corporation&#146;s code of business conduct and ethics
    (including the Corporation&#146;s policies and procedures with
    regard to trading by Corporation personnel in securities of the
    Corporation and use in trading of proprietary or confidential
    information) bearing on the integrity of financial reporting
    including any waivers provided under such code since the last
    review.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    4.&#160;&#160;
</TD>
    <TD align="left">
    Review on an ongoing basis and approve or disapprove all related
    party transactions that are required to be disclosed by
    Item&#160;404 of
    <FONT style="white-space: nowrap">Regulation&#160;S-K</FONT>
    promulgated by the SEC.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    5.&#160;&#160;
</TD>
    <TD align="left">
    Establish procedures for (a)&#160;the receipt, retention and
    treatment of complaints received by the Corporation regarding
    accounting, internal accounting controls or auditing matters and
    (b)&#160;the confidential, anonymous submission by employees of
    the Corporation of concerns regarding questionable accounting or
    auditing matters.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    E.&#160;<U>Annual Self-Evaluation</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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

<TR>
    <TD width="8%"></TD>
    <TD width="4%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    1.&#160;&#160;
</TD>
    <TD align="left">
    At least annually, conduct a self-evaluation of the performance
    of the Committee, including its overall effectiveness and
    compliance with this Charter.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    2.&#160;&#160;
</TD>
    <TD align="left">
    At least annually, review this Charter and reassess its adequacy.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The foregoing functions and responsibilities are set forth with
    the understanding that the Committee may, to the extent
    permitted by applicable laws or regulations, diverge therefrom
    as appropriate given the circumstances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In discharging its role, the Committee encourages free and open
    communication among the Committee, the Corporation&#146;s
    independent auditors and management. The Committee shall have
    the resources and authority necessary to discharge its duties
    and responsibilities, including the resources and authority to
    retain outside separate counsel or other experts or consultants,
    as it deems appropriate. The Committee is empowered to
    investigate any matter brought to its attention that is within
    the scope of or otherwise relevant to its responsibilities, with
    all requisite access to all books, records, facilities and
    personnel of the Corporation and with access to the
    Corporation&#146;s outside legal counsel and other advisors.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-4
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;V<BR>
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Procedures
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee shall meet at least once each fiscal quarter.
    Additional meetings shall occur as the Committee or its Chair
    deems advisable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee shall keep regular minutes of its meetings, and
    shall report its actions to the next meeting of the Board.
    Meetings and actions of the Committee shall be governed by, and
    held and taken in accordance with, the provisions of the
    Corporation&#146;s Bylaws, with such changes in the context of
    those Bylaws as are necessary to substitute the Committee, the
    Chair of the Committee and its members for the Board, the
    Chairman of the Board and its members. Regular meetings of the
    Committee may be held at such time and such place as the
    Committee determines from time to time. In the absence of the
    Chair, a member designated by the Chair or designated by a
    majority of the members in attendance shall preside at a meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Committee may, to the extent permitted by applicable laws
    and regulations, form and delegate any of its responsibilities
    to, a subcommittee so long as such subcommittee consists of at
    least two members of the Committee. The requirements for action
    by a subcommittee shall, except as otherwise provided by act of
    the Committee, be the same as applicable to the Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All non-management directors who are not members of the
    Committee may attend and observe meetings of the Committee, but
    shall not participate in any discussion or deliberation unless
    invited to do so by the Committee, and in any event shall not be
    entitled to vote. To perform its oversight functions
    effectively, the Committee should meet separately, periodically,
    with management, with the internal auditors (or other personnel
    responsible for the internal audit function) and with the
    independent auditors. The Committee may, at its discretion and
    at the invitation of the Chair, include in its meetings members
    of the Corporation&#146;s management, representatives of the
    Corporation&#146;s outside advisors, any other personnel
    employed or retained by the Corporation or any other persons
    whose presence the Committee believes to be necessary or
    appropriate. Notwithstanding the foregoing, the Committee may
    also exclude from its meetings any persons it deems appropriate,
    including, but not limited to, any non-management director who
    is not a member of the Committee.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    A-5
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "Appendix B" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Appendix&#160;B</FONT></B>
</DIV>


<!-- link1 "BIG 5 SPORTING GOODS CORPORATION 2007 EQUITY AND PERFORMANCE INCENTIVE PLAN" -->


<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">BIG 5
    SPORTING GOODS CORPORATION<BR>
    2007 EQUITY AND PERFORMANCE INCENTIVE PLAN</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    BIG 5 SPORTING GOODS CORPORATION, a corporation existing under
    the laws of the State of Delaware (the
    &#147;<B>Company</B>&#148;), hereby establishes and adopts the
    following 2007 Equity and Performance Incentive Plan (the
    &#147;<B>Plan</B>&#148;). Certain capitalized terms used in the
    Plan are defined in Article&#160;2.
</DIV>


<!-- link1 "RECITALS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RECITALS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    WHEREAS, the Company desires to encourage high levels of
    performance by those individuals who are key to the success of
    the Company, to attract new individuals who are highly motivated
    and who are expected to contribute to the success of the Company
    and to encourage such individuals to remain as directors,
    employees, consultants
    <FONT style="white-space: nowrap">and/or</FONT>
    advisors of the Company and its Affiliates by increasing their
    proprietary interest in the Company&#146;s growth and
    success;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    WHEREAS, to attain these ends, the Company has formulated the
    Plan embodied herein to authorize the granting of Awards to
    Participants whose judgment, initiative and efforts are or have
    been or are expected to be responsible for the success of the
    Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    NOW, THEREFORE, the Company hereby constitutes, establishes and
    adopts the following Plan and agrees to the following provisions:
</DIV>


<!-- link1 "ARTICLE I PURPOSE OF THE PLAN" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;I<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PURPOSE
    OF THE PLAN</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.1&#160;&#160;<U>Purpose.</U>&#160;&#160;The purpose of the
    Plan is to assist the Company and its Affiliates in attracting
    and retaining selected individuals to serve as directors,
    employees, consultants
    <FONT style="white-space: nowrap">and/or</FONT>
    advisors of the Company who are expected to contribute to the
    Company&#146;s success and to achieve long-term objectives which
    will inure to the benefit of all stockholders of the Company
    through the additional incentives inherent in the Awards
    hereunder.
</DIV>


<!-- link1 "ARTICLE II DEFINITIONS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;II<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DEFINITIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.1&#160;&#160;&#147;<B>Affiliate</B>&#148; shall mean
    (i)&#160;any person or entity that directly, or through one or
    more intermediaries, controls, or is controlled by, or is under
    common control with, the Company (including any Parent or
    Subsidiary) or (ii)&#160;any entity in which the Company has a
    significant equity interest, as determined by the Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.2&#160;&#160;&#147;<B>Applicable Laws</B>&#148; means the
    legal requirements relating to the administration of and
    issuance of securities under stock incentive plans, including,
    without limitation, the requirements of state corporations law,
    federal and state securities law, federal and state tax law, and
    the requirements of any stock exchange or quotation system upon
    which the Shares may then be listed or quoted. For all purposes
    of this Plan, references to statutes and regulations shall be
    deemed to include any successor statutes and regulations, to the
    extent reasonably appropriate as determined by the Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.3&#160;&#160;&#147;<B>Award</B>&#148; shall mean any Option,
    Stock Appreciation Right, Restricted Stock Award, Performance
    Award, Dividend Equivalent, Other Stock Unit Award or any other
    right, interest or option relating to Shares or other property
    (including cash) granted pursuant to the provisions of the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.4&#160;&#160;&#147;<B>Award Agreement</B>&#148; shall mean any
    written agreement, contract or other instrument or document
    evidencing any Award granted by the Committee hereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.5&#160;&#160;&#147;<B>Board</B>&#148; shall mean the board of
    directors of the Company.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-1
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.6&#160;&#160;&#147;<B>Cause</B>&#148; shall have the meaning
    set forth in a Participant&#146;s employment or consulting
    agreement with the Company (if any), or if not defined therein,
    shall mean (i)&#160;acts or omissions by the Participant which
    constitute intentional material misconduct or a knowing
    violation of a material policy of the Company or any of its
    subsidiaries, (ii)&#160;the Participant personally receiving a
    benefit in money, property or services from the Company or any
    of its subsidiaries or from another person dealing with the
    Company or any of its subsidiaries, in material violation of
    applicable law or Company policy, (iii)&#160;an act of fraud,
    conversion, misappropriation, or embezzlement by the Participant
    or his conviction of, or entering a guilty plea or plea of no
    contest with respect to, a felony, or the equivalent thereof
    (other than DUI), or (iv)&#160;any deliberate and material
    misuse or improper disclosure of confidential or proprietary
    information of the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.7&#160;&#160;&#147;<B>Change of Control&#148; </B>shall mean
    the occurrence of any of the following events:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;The direct or indirect acquisition by an unrelated
    &#147;Person&#148; or &#147;Group&#148; of &#147;Beneficial
    Ownership&#148; (as such terms are defined below) of more than
    50% of the voting power of the Company&#146;s issued and
    outstanding voting securities in a single transaction or a
    series of related transactions;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;The direct or indirect sale or transfer by the Company
    of substantially all of its assets to one or more unrelated
    Persons or Groups in a single transaction or a series of related
    transactions;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;The merger, consolidation or reorganization of the
    Company with or into another corporation or other entity in
    which the Beneficial Owners of more than 50% of the voting power
    of the Company&#146;s issued and outstanding voting securities
    immediately before such merger or consolidation do not own more
    than 50% of the voting power of the issued and outstanding
    voting securities of the surviving corporation or other entity
    immediately after such merger, consolidation or
    reorganization;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iv)&#160;During any consecutive two-year period, individuals
    who at the beginning of such period constituted the Board of the
    Company (together with any new Directors whose election to such
    Board or whose nomination for election by the stockholders of
    the Company was approved by a vote of a majority of the
    Directors of the Company then still in office who were either
    Directors at the beginning of such period or whose election or
    nomination for election was previously so approved) cease for
    any reason to constitute a majority of the Board of the Company
    then in office.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    None of the foregoing events, however, shall constitute a Change
    of Control if such event is not a &#147;Change in Control
    Event&#148; under Treasury Regulations
    <FONT style="white-space: nowrap">Section&#160;1.409A-3(i)(5).</FONT>
    For purposes of determining whether a Change of Control has
    occurred, the following Persons and Groups shall not be deemed
    to be &#147;unrelated&#148;: (A)&#160;such Person or Group
    directly or indirectly has Beneficial Ownership of more than 50%
    of the issued and outstanding voting power of the Company&#146;s
    voting securities immediately before the transaction in
    question, (B)&#160;the Company has Beneficial Ownership of more
    than 50% of the voting power of the issued and outstanding
    voting securities of such Person or Group, or (C)&#160;more than
    50% of the voting power of the issued and outstanding voting
    securities of such Person or Group are owned, directly or
    indirectly, by Beneficial Owners of more than 50% of the issued
    and outstanding voting power of the Company&#146;s voting
    securities immediately before the transaction in question. The
    terms &#147;Person,&#148; &#147;Group,&#148; &#147;Beneficial
    Owner,&#148; and &#147;Beneficial Ownership&#148; shall have the
    meanings used in the Exchange Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.8&#160;&#160;&#147;<B>Code</B>&#148; shall mean the Internal
    Revenue Code of 1986, as amended from time to time, and any
    successor thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.9&#160;&#160;&#147;<B>Committee</B>&#148; shall mean the
    Committee constituted under Section&#160;4.2 to administer this
    Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.10&#160;&#160;&#147;<B>Company</B>&#148; has the meaning set
    forth in introductory paragraph of the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.11&#160;&#160;&#147;<B>Consultant</B>&#148; means any person,
    including an advisor, who (i)&#160;is a natural person,
    (ii)&#160;provides bona fide services to the Company or a Parent
    or Subsidiary, and (iii)&#160;provides services that are not in
    connection with the offer or sale of securities in a
    capital-raising transaction, and that do not directly or
    indirectly promote or maintain a market for the securities of
    the Company; provided that the term &#146;Consultant&#146; does
    not include (i)&#160;Employees or (ii)&#160;Directors who are
    paid only a director&#146;s fee by the Company or who are not
    compensated by the Company for their services as Directors.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-2
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.12&#160;&#160;&#147;<B>Continuous Status as an Employee,
    Director or Consultant</B>&#148; means that the employment,
    director or consulting relationship is not interrupted or
    terminated by the Company, any Parent or Subsidiary, or by the
    Employee, Director or Consultant. Continuous Status as an
    Employee, Director or Consultant will not be considered
    interrupted in the case of: (i)&#160;any leave of absence
    approved by the Board, including sick leave, military leave, or
    any other personal leave, provided, that for purposes of
    Incentive Stock Options, any such leave may not exceed
    90&#160;days, unless reemployment upon the expiration of such
    leave is guaranteed by contract (including certain Company
    policies) or statute; (ii)&#160;transfers between locations of
    the Company or between the Company, its Parent, its Subsidiaries
    or its successor; or (iii)&#160;in the case of an Award other
    than an Incentive Stock Option, the ceasing of a person to be an
    Employee while such person remains a Director or Consultant, the
    ceasing of a person to be a Director while such person remains
    an Employee or Consultant or the ceasing of a person to be a
    Consultant while such person remains an Employee or Director.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.13&#160;&#160;&#147;<B>Covered Employee</B>&#148; shall mean a
    &#147;<B>covered employee</B>&#148; within the meaning of
    Section&#160;162(m)(3) of the Code, or any successor provision
    thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.14&#160;&#160;&#147;<B>Director</B>&#148; shall mean a
    non-employee member of the Board or a non-employee member of the
    board of directors of a Parent or Subsidiary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.15&#160;&#160;&#147;<B>Disability</B>&#148; shall mean total
    and permanent disability as defined in Section&#160;22(e)(3) of
    the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.16&#160;&#160;&#147;<B>Dividend Equivalents</B>&#148; shall
    have the meaning set forth in Section&#160;12.5.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.17&#160;&#160;&#147;<B>Employee</B>&#148; shall mean any
    employee of the Company or any Parent or Subsidiary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.18&#160;&#160;&#147;<B>Exchange Act</B>&#148; shall mean the
    Securities Exchange Act of 1934 and the rules promulgated
    thereunder, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.19&#160;&#160;&#147;<B>Fair Market Value</B>&#148; shall mean,
    with respect to any property other than Shares, the market value
    of such property determined by such methods or procedures as
    shall be established from time to time by the Committee. The
    Fair Market Value of Shares as of any date shall be determined
    as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;If the Shares are listed on any established stock
    exchange or a national market system, including without
    limitation, the National Market System of NASDAQ, the Fair
    Market Value of a Share will be (i)&#160;the closing sales price
    for such Shares (or the closing bid, if no sales are reported)
    as quoted on that system or exchange (or the system or exchange
    with the greatest volume of trading in Shares) on the last
    market trading day prior to the day of determination or
    (ii)&#160;any sales price for such Shares (or the closing bid,
    if no sales are reported) as quoted on that system or exchange
    (or the system or exchange with the greatest volume of trading
    in Shares) on the day of determination, as the Committee may
    select, in each case as reported in the Wall Street Journal or
    any other source the Committee considers reliable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;If the Shares are quoted on the NASDAQ System (but not
    on the NASDAQ National Market System) or are regularly quoted by
    recognized securities dealers but selling prices are not
    reported, the Fair Market Value of a Share will be the mean
    between the high bid and low asked prices for the Shares on
    (i)&#160;the last market trading day prior to the day of
    determination or (ii)&#160;the day of determination, as the
    Committee may select, in each case as reported in the Wall
    Street Journal or any other source the Committee considers
    reliable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;If the Shares are not traded as set forth above, the
    Fair Market Value will be determined in good faith by the
    Committee with reference to the earnings history, book value and
    prospects of the Company in light of market conditions
    generally, and any other factors the Committee considers
    appropriate, such determination by the Committee to be final,
    conclusive and binding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.20&#160;&#160;&#147;<B>Family Member</B>&#148; means any
    child, stepchild, grandchild, parent, stepparent, grandparent,
    spouse, former spouse, sibling, niece, nephew,
    <FONT style="white-space: nowrap">mother-in-law,</FONT>
    <FONT style="white-space: nowrap">father-in-law,</FONT>
    <FONT style="white-space: nowrap">son-in-law,</FONT>
    <FONT style="white-space: nowrap">daughter-in-law,</FONT>
    <FONT style="white-space: nowrap">brother-in-law,</FONT>
    or
    <FONT style="white-space: nowrap">sister-in-law,</FONT>
    including adoptive relationships, any person sharing the
    Participant&#146;s household (other than a tenant or employee),
    a trust in which these persons (or the Participant) control the
    management of assets, and any other entity in which these
    persons (or the Participant) own more than 50&#160;percent of
    the voting interests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.21&#160;&#160;&#147;<B>Incentive Stock Option</B>&#148; means
    an Option intended to qualify as an incentive stock option
    within the meaning of Section&#160;422 of the Code and the
    regulations promulgated thereunder.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-3
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.22&#160;&#160;&#147;<B>Limitations</B>&#148; shall have the
    meaning set forth in Section&#160;3.2.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.23&#160;&#160;&#147;<B>Option</B>&#148; shall mean any right
    granted to a Participant under the Plan allowing such
    Participant to purchase Shares at such price or prices and
    during such period or periods as the Committee shall determine.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.24&#160;&#160;&#147;<B>Other Stock Unit Award</B>&#148; shall
    have the meaning set forth in Section&#160;8.1.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.25&#160;&#160;&#147;<B>Parent</B>&#148; means a &#147;parent
    corporation&#148; with respect to the Company, whether now or
    later existing, as defined in Section&#160;424(e) of the Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.26 &#147;<B>Participant</B>&#148; shall mean an Employee,
    Director or Consultant who is selected by the Committee to
    receive an Award under the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.27 &#147;<B>Payee</B>&#148; shall have the meaning set forth
    in Section&#160;13.1.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.28 &#147;<B>Performance Award</B>&#148; shall mean any Award
    of Performance Shares or Performance Units granted pursuant to
    Article&#160;9.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.29 &#147;<B>Performance Period</B>&#148; shall mean that
    period established by the Committee at the time any Performance
    Award is granted or at any time thereafter during which any
    performance goals specified by the Committee with respect to
    such Award are to be measured.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.30 &#147;<B>Performance Share</B>&#148; shall mean any grant
    pursuant to Article&#160;9 of a unit valued by reference to a
    designated number of Shares, which value may be paid to the
    Participant by delivery of such property as the Committee shall
    determine, including cash, Shares, other property, or any
    combination thereof, upon achievement of such performance goals
    during the Performance Period as the Committee shall establish
    at the time of such grant or thereafter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.31 &#147;<B>Performance Unit</B>&#148; shall mean any grant
    pursuant to Article&#160;9 of a unit valued by reference to a
    designated amount of property (including cash) other than
    Shares, which value may be paid to the Participant by delivery
    of such property as the Committee shall determine, including
    cash, Shares, other property, or any combination thereof, upon
    achievement of such performance goals during the Performance
    Period as the Committee shall establish at the time of such
    grant or thereafter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.32 &#147;<B>Prior Plans</B>&#148; shall mean, collectively,
    the Company&#146;s 1997 Management Equity Plan and 2002 Stock
    Incentive Plan, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.33 &#147;<B>Restricted Stock</B>&#148; shall mean any Share
    issued with the restriction that the holder may not sell,
    transfer, pledge or assign such Share and with such other
    restrictions as the Committee, in its sole discretion, may
    impose (including any restriction on the right to vote such
    Share and the right to receive any dividends), which
    restrictions may lapse separately or in combination at such time
    or times, in installments or otherwise, as the Committee may
    deem appropriate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.34 &#147;<B>Restricted Period</B>&#148; shall have the meaning
    set forth in Section&#160;7.1.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.35 &#147;<B>Restricted Stock Award</B>&#148; shall have the
    meaning set forth in Section&#160;7.1.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.36 &#147;<B>Shares</B>&#148; shall mean the shares of common
    stock of the Company, par value $0.10&#160;per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.37 &#147;<B>Stock Appreciation Right</B>&#148; shall mean the
    right granted to a Participant pursuant to Article&#160;6.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.38 &#147;<B>Subsidiary</B>&#148; shall mean any corporation
    (other than the Company) in an unbroken chain of corporations
    beginning with the Company if, at the time of the granting of
    the Award, each of the corporations other than the last
    corporation in the unbroken chain owns stock possessing 50% or
    more of the total combined voting power of all classes of stock
    in one of the other corporations in the chain.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.39 &#147;<B>Substitute Awards</B>&#148; shall mean Awards
    granted or Shares issued by the Company in assumption of, or in
    substitution or exchange for, awards previously granted, or the
    right or obligation to make future awards, by a company acquired
    by the Company or any Subsidiary or with which the Company or
    any Subsidiary combines.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-4
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "ARTICLE III SHARES SUBJECT TO THE PLAN" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;III<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SHARES&#160;SUBJECT
    TO THE PLAN</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.1&#160;&#160;<U>Number of Shares.</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Subject to adjustment as provided in Section&#160;12.2,
    a total of 2,399,250&#160;Shares shall be authorized for grant
    under the Plan, plus any Shares subject to awards granted under
    the Prior Plans, which such awards are forfeited, expire or
    otherwise terminate without issuance of Shares, or are settled
    for cash or otherwise do not result in the issuance of Shares,
    on or after the effective date of this Plan. Any Shares that are
    subject to Awards of Options or Stock Appreciation Rights shall
    be counted against this limit as one Share for every one Share
    granted, regardless of the number of shares actually delivered
    pursuant to such Awards. Any Shares that are subject to Awards
    other than Options or Stock Appreciation Rights (including, but
    not limited to, Shares delivered in satisfaction of Dividend
    Equivalents) shall be counted against this limit as
    2.5&#160;Shares for every one Share granted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;If any Shares subject to an Award or to an award under
    the Prior Plans are forfeited, expire or otherwise terminate
    without issuance of such Shares, or any Award or award under the
    Prior Plans is settled for cash or otherwise does not result in
    the issuance of all or a portion of the Shares subject to such
    Award, the Shares shall, to the extent of such forfeiture,
    expiration, termination, cash settlement or non-issuance, again
    be available for Awards under the Plan, subject to
    Section&#160;3.1(e) below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;In the event that (i)&#160;any Option or other Award
    granted under this Plan or any option or award granted under the
    Prior Plans is exercised through the tendering of Shares (either
    actually, by attestation, or by the giving of instructions to a
    broker to remit to the Company that portion of the sales price
    required to pay the exercise price) or by the withholding of
    Shares by the Company, or (ii)&#160;withholding tax liabilities
    arising from such Options or Awards under this Plan or options
    or awards under a Prior Plan are satisfied by the tendering of
    Shares (either actually, by attestation, or by the giving of
    instructions to a broker to remit to the Company that portion of
    the sales price required to pay the exercise price) or by the
    withholding of Shares by the Company, then the Shares so
    tendered or withheld shall not again be available for Awards
    under the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;Substitute Awards shall not reduce the Shares
    authorized for issuance under the Plan or authorized for grant
    to a Participant in any calendar year. Additionally, in the
    event that a company acquired by the Company or any Subsidiary,
    or with which the Company or any Subsidiary combines, has shares
    available under a pre-existing plan approved by shareholders and
    not adopted in contemplation of such acquisition or combination,
    the shares available for grant pursuant to the terms of such
    pre-existing plan (as adjusted, to the extent appropriate, using
    the exchange ratio or other adjustment or valuation ratio or
    formula used in such acquisition or combination to determine the
    consideration payable to the holders of common stock of the
    entities party to such acquisition or combination) may be used
    for Awards under the Plan and shall not reduce the Shares
    authorized for issuance under the Plan; provided that Awards
    using such available shares shall not be made after the date
    awards or grants could have been made under the terms of the
    pre-existing plan, absent the acquisition or combination, and
    shall only be made to individuals who were employees, directors
    or consultants of such acquired or combined company before such
    acquisition or combination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (e)&#160;Any Shares that again become available for grant
    pursuant to this Article&#160;3 shall be added back as one Share
    if such Shares were subject to Options or Stock Appreciation
    Rights granted under the Plan or options or stock appreciation
    rights granted under the Prior Plans, and as 2.5&#160;Shares if
    such Shares were subject to Awards other than Options or Stock
    Appreciation Rights granted under the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.2&#160;&#160;<U>Limitations on Grants to Individual
    Participant.</U>&#160;&#160;Subject to adjustment as provided in
    Section&#160;12.2, no Participant may be granted
    (i)&#160;Options or Stock Appreciation Rights during any fiscal
    year of the Company with respect to more than
    500,000&#160;Shares, or (ii)&#160;Restricted Stock, Performance
    Awards
    <FONT style="white-space: nowrap">and/or</FONT> Other
    Stock Unit Awards that are denominated in Shares in any fiscal
    year of the Company with respect to more than
    250,000&#160;Shares (the &#147;<B>Limitations</B>&#148;). In
    addition to the foregoing, the maximum dollar value payable to
    any Participant in any fiscal year of the Company with respect
    to Performance Awards
    <FONT style="white-space: nowrap">and/or</FONT> Other
    Stock Unit Awards that are valued with reference to cash or
    property other than Shares is $2,000,000. If an Award is
    cancelled, the cancelled Award shall continue to be counted
    toward the applicable Limitations.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-5
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.3&#160;&#160;<U>Character of Shares.</U>&#160;&#160;Any Shares
    issued hereunder may consist, in whole or in part, of authorized
    and unissued shares, treasury shares or shares purchased in the
    open market or otherwise.
</DIV>


<!-- link1 "ARTICLE IV ELIGIBILITY AND ADMINISTRATION" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;IV<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ELIGIBILITY
    AND ADMINISTRATION</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.1&#160;&#160;<U>Eligibility.</U>&#160;&#160;Any Employee,
    Director or Consultant shall be eligible to be selected as a
    Participant. Only Employees may receive awards of Incentive
    Stock Options.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.2&#160;&#160;<U>Administration.</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;The Plan shall be administered by the Committee,
    constituted as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;The Committee will consist of the Board, or a committee
    designated by the Board, which Committee will be constituted to
    satisfy Applicable Laws. Once appointed, a Committee will serve
    in its designated capacity until otherwise directed by the
    Board. The Board may increase the size of the Committee and
    appoint additional members, remove members (with or without
    cause) and substitute new members, fill vacancies (however
    caused), and remove all members of the Committee and thereafter
    directly administer the Plan. Notwithstanding the foregoing,
    unless the Board expressly resolves to the contrary, while the
    Company is registered pursuant to Section&#160;12 of the
    Exchange Act, the Plan will be administered only by the
    Compensation Committee of the Board (or such other committee
    designated by the Compensation Committee of the Board),
    consisting of no fewer than two Directors, each of whom is
    (A)&#160;a &#147;non-employee director&#148; within the meaning
    of
    <FONT style="white-space: nowrap">Rule&#160;16b-3</FONT>
    (or any successor rule) of the Exchange Act, (B)&#160;an
    &#147;outside director&#148; within the meaning of
    Section&#160;162(m)(4)(C)(i) of the Code, and (C)&#160;an
    &#147;independent director&#148; for purpose of the rules and
    regulations of the NASDAQ National Market System or other
    exchange or quotation system on which the Shares are principally
    traded; provided, however, (X)&#160;so long as the Committee has
    at least two directors that meet the above requirements, the
    Committee may contain one additional director who is not a
    &#147;non-employee director&#148;, &#147;outside director&#148;
    or &#147;independent director&#148;, but only if such director
    abstains from voting on all grants or awards to Covered
    Employees and to those Participants who have been designated by
    the Board of Directors as being &#147;officers&#148; for
    purposes of Section&#160;16 of the Exchange Act and the rules
    promulgated thereunder and (Y)&#160;the failure of the Committee
    to be composed solely of individuals who are &#147;non-employee
    directors,&#148; &#147;outside directors,&#148; and
    &#147;independent directors&#148;, whether pursuant to
    clause&#160;(X)&#160;above or otherwise, shall not render
    ineffective or void any awards or grants made by, or other
    actions taken by, such Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;The Plan may be administered by different bodies with
    respect to Directors, officers who are not Directors, and
    Employees and Consultants who are neither Directors nor
    officers, and Covered Employees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;The Committee shall have full discretion, power and
    authority, subject to the provisions of the Plan and subject to
    such orders or resolutions not inconsistent with the provisions
    of the Plan as may from time to time be adopted by the Board,
    to: (i)&#160;select the Employees, Consultants and Directors to
    whom Awards may from time to time be granted hereunder;
    (ii)&#160;determine the type or types of Awards, not
    inconsistent with the provisions of the Plan, to be granted to
    each Participant hereunder; (iii)&#160;determine the number of
    Shares to be covered by each Award granted hereunder;
    (iv)&#160;determine the terms and conditions, not inconsistent
    with the provisions of the Plan, of any Award granted hereunder
    and the form and content of any Award Agreement;
    (v)&#160;determine whether, to what extent and under what
    circumstances Awards may be settled in cash, Shares or other
    property, subject to the provisions of the Plan;
    (vi)&#160;determine whether, to what extent and under what
    circumstances any Award shall be modified, amended, canceled or
    suspended; (vii)&#160;interpret and administer the Plan and any
    instrument or agreement entered into under or in connection with
    the Plan, including any Award Agreement; (viii)&#160;correct any
    defect, supply any omission or reconcile any inconsistency in
    the Plan or any Award in the manner and to the extent that the
    Committee shall deem desirable to carry it into effect;
    (ix)&#160;establish such rules and regulations and appoint such
    agents as it shall deem appropriate for the proper
    administration of the Plan; (x)&#160;determine whether any Award
    will have Dividend Equivalents; (xi)&#160;determine whether, to
    what extent, and under what circumstances cash, Shares, or other
    property payable with respect to an Award shall be deferred
    either automatically or at the election of the Participant;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-6
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    provided that the Committee shall take no action that would
    subject the Participant to a penalty tax under Section&#160;409A
    of the Code; and (xii)&#160;make any other determination and
    take any other action that the Committee deems necessary or
    desirable for administration of the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Decisions of the Committee shall be final, conclusive
    and binding on all persons or entities, including the Company,
    any Participant, any stockholder and any Employee or any
    Affiliate. A majority of the members of the Committee may
    determine its actions and fix the time and place of its meetings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;The Committee may delegate to a committee of one or
    more Directors of the Company or, to the extent permitted by
    Applicable Law, to one or more officers or a committee of
    officers, the authority to grant Awards to Employees and
    officers of the Company who are not Directors, Covered
    Employees, or &#147;officers,&#148; as such term is defined by
    <FONT style="white-space: nowrap">Rule&#160;16a-1(f)</FONT>
    of the Exchange Act, and to cancel or suspend Awards to
    Employees and officers of the Company who are not Directors,
    Covered Employees, or &#147;officers,&#148; as such term is
    defined by
    <FONT style="white-space: nowrap">Rule&#160;16a-1(f)</FONT>
    of the Exchange Act.
</DIV>


<!-- link1 "ARTICLE V OPTIONS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;V<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OPTIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.1&#160;&#160;<U>Grant of Options.</U>&#160;&#160;Options may
    be granted hereunder to Participants either alone or in addition
    to other Awards granted under the Plan. Any Option shall be
    subject to the terms and conditions of this Article&#160;5 and
    to such additional terms and conditions, not inconsistent with
    the provisions of the Plan, as the Committee shall deem
    desirable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.2&#160;&#160;<U>Award Agreements.</U>&#160;&#160;All Options
    granted pursuant to this Article&#160;5 shall be evidenced by a
    written Award Agreement in such form and containing such terms
    and conditions as the Committee shall determine which are not
    inconsistent with the provisions of the Plan. Granting of an
    Option pursuant to the Plan shall impose no obligation on the
    recipient to exercise such Option. Any individual who is granted
    an Option pursuant to this Article&#160;5 may hold more than one
    Option granted pursuant to the Plan at the same time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.3&#160;&#160;<U>Option Price.</U>&#160;&#160;Other than in
    connection with Substitute Awards, the option price per each
    Share purchasable under any Option granted pursuant to this
    Article&#160;5 shall not be less than 100% of the Fair Market
    Value of such Share on the date of grant of such Option. Other
    than pursuant to Section&#160;12.2, the Committee shall not be
    permitted to (a)&#160;lower the option price per Share of an
    Option after it is granted, (b)&#160;cancel an Option when the
    option price per Share exceeds the Fair Market Value of the
    underlying Shares in exchange for cash or for another Award
    (other than in connection with Substitute Awards), and
    (c)&#160;take any other action with respect to an Option that
    may be treated as a repricing under the rules and regulations of
    the NASDAQ National Market System or other exchange or quotation
    system on which the Shares are principally traded.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.4&#160;&#160;<U>Option Period.</U>&#160;&#160;The term of each
    Option shall be fixed by the Committee in its sole discretion;
    provided that no Option shall be exercisable after the
    expiration of ten years from the date the Option is granted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.5&#160;&#160;<U>Exercise of Options.</U>&#160;&#160;Vested
    Options granted under the Plan shall be exercised by the
    Participant or by a Permitted Assignee thereof (or by the
    Participant&#146;s executors, administrators, guardian,
    beneficiary, or legal representative, or Family Members, as may
    be provided in an Award Agreement) as to all or part of the
    Shares covered thereby, by the giving of written notice of
    exercise to the Company or its designated agent, specifying the
    number of Shares to be purchased, accompanied by payment of the
    full purchase price for the Shares being purchased. Unless
    otherwise provided in an Award Agreement, full payment of such
    purchase price shall be made at the time of exercise and shall
    be made (a)&#160;in cash or by certified check or bank check or
    wire transfer of immediately available funds, (b)&#160;with the
    consent of the Committee, by tendering previously acquired
    Shares (either actually or by attestation, valued at their then
    Fair Market Value) that have been owned for a period of at least
    six months (or such other period to avoid accounting charges
    against the Company&#146;s earnings), (c)&#160;with the consent
    of the Committee, by delivery of other consideration (including,
    where permitted by law and the Committee, other Awards) having a
    Fair Market Value on the exercise date equal to the total
    purchase price, (d)&#160;with the consent of the Committee, by
    withholding Shares otherwise issuable in connection with the
    exercise of the Option, (e)&#160;with the consent of the
    Committee, by delivery of a properly executed exercise notice
    together with any other documentation
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-7
</DIV><!-- END LOGICAL PAGE -->
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    as the Committee and the Participant&#146;s broker, if
    applicable, require to effect an exercise of the Option and
    delivery to the Company of the sale or other proceeds (as
    permitted by Applicable Law) required to pay the exercise price,
    , (f)&#160;through any other method specified in an Award
    Agreement, or (g)&#160;any combination of any of the foregoing.
    In connection with a tender of previously acquired Shares
    pursuant to clause&#160;(b) above, the Committee, in its sole
    discretion, may permit the Participant to constructively
    exchange Shares already owned by the Participant in lieu of
    actually tendering such Shares to the Company, provided that
    adequate documentation concerning the ownership of the Shares to
    be constructively tendered is furnished in form satisfactory to
    the Committee. The notice of exercise, accompanied by such
    payment, shall be delivered to the Company at its principal
    business office or such other office as the Committee may from
    time to time direct, and shall be in such form, containing such
    further provisions consistent with the provisions of the Plan,
    as the Committee may from time to time prescribe. In no event
    may any Option granted hereunder be exercised for a fraction of
    a Share. No adjustment shall be made for cash dividends or other
    rights for which the record date is prior to the date of such
    issuance.
</DIV>

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    5.6&#160;&#160;<U>Form of Settlement.</U>&#160;&#160;In its sole
    discretion, the Committee may provide, at the time of grant,
    that the Shares to be issued upon an Option&#146;s exercise
    shall be in the form of Restricted Stock or other similar
    securities, or may reserve the right so to provide after the
    time of grant.
</DIV>

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    5.7&#160;&#160;<U>Incentive Stock Options.</U>&#160;&#160;With
    respect to the Options that may be granted by the Committee
    under the Plan, the Committee may grant Options intended to
    qualify as Incentive Stock Options to any Employee of the
    Company or any Parent or Subsidiary, subject to the requirements
    of Section&#160;422 of the Code. The Award Agreement of an
    Option intended to qualify as an Incentive Stock Option shall
    designate the Option as an Incentive Stock Option.
    Notwithstanding anything in Section&#160;3.1 to the contrary and
    solely for the purposes of determining whether Shares are
    available for the grant of Incentive Stock Options under the
    Plan, the maximum aggregate number of Shares with respect to
    which Incentive Stock Options may be granted under the Plan
    shall be 2,399,250&#160;Shares. Notwithstanding the provisions
    of Section&#160;5.3, in the case of an Incentive Stock Option
    granted to an Employee who, at the time the Incentive Stock
    Option is granted, owns stock representing more than ten percent
    of the voting power of all classes of capital stock of the
    Company or any Parent or Subsidiary, the per Share exercise
    price will be no less than 110% of the Fair Market Value per
    Share on the date of grant. Notwithstanding the provisions of
    Section&#160;5.4, in the case of an Incentive Stock Option
    granted to an Employee who, at the time the Incentive Stock
    Option is granted, owns stock representing more than ten percent
    of the voting power of all classes of capital stock of the
    Company or any Parent or Subsidiary, the term of the Incentive
    Stock Option will be five years from the date of grant or any
    shorter term specified in the Award Agreement. Notwithstanding
    the foregoing, if the Shares subject to an Employee&#146;s
    Incentive Stock Options (granted under all plans of the Company
    or any Parent or Subsidiary), which become exercisable for the
    first time during any calendar year, have a Fair Market Value in
    excess of $100,000, the Options accounting for this excess will
    be not be treated as Incentive Stock Options. For purposes of
    the preceding sentence, Incentive Stock Options will be taken
    into account in the order in which they were granted, and the
    Fair Market Value of the Shares will be determined as of the
    time of grant.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.8&#160;&#160;<U>Termination of Employment or Consulting
    Relationship or Directorship.</U>&#160;&#160;If a Participant
    holds exercisable Options on the date his or her Continuous
    Status as an Employee, Director or Consultant terminates (other
    than because of termination due to Cause, but including death or
    Disability), the Participant may exercise the Options that were
    vested and exercisable as of the date of termination until the
    end of the original term or for the period set forth in the
    Award Agreement or determined by the Committee, whichever is
    earlier. If the Participant is not entitled to exercise his or
    her entire Option at the date of such termination, the Shares
    covered by the unexercisable portion of the Option will revert
    to the Plan, unless otherwise set forth in the Award Agreement
    or determined by the Committee. The Committee may determine in
    its sole discretion that such unexercisable portion of the
    Option will become exercisable at such times and on such terms
    as the Committee may determine in its sole discretion. If the
    Participant does not exercise an Option within the time
    specified after termination, that Option will expire, and the
    Shares covered by it will revert to the Plan, except as
    otherwise determined by the Committee.
</DIV>

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    <BR>
    B-8
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "ARTICLE VI STOCK APPRECIATION RIGHTS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;VI<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">STOCK
    APPRECIATION RIGHTS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.1&#160;&#160;<U>Grant and Exercise.</U>&#160;&#160;The
    Committee may provide Stock Appreciation Rights either alone or
    in addition to other Awards upon such terms and conditions as
    the Committee may establish in its sole discretion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.2&#160;&#160;<U>Terms and Conditions.</U>&#160;&#160;Stock
    Appreciation Rights shall be subject to such terms and
    conditions, not inconsistent with the provisions of the Plan, as
    shall be determined from time to time by the Committee,
    including the following:
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Upon the exercise of a Stock Appreciation Right, the
    holder shall have the right to receive the excess of
    (i)&#160;the Fair Market Value of one Share on the date of
    exercise or such other amount as the Committee shall so
    determine at any time during a specified period before the date
    of exercise over (ii)&#160;the grant price of the right on the
    date of grant, which, except in the case of Substitute Awards or
    in connection with an adjustment provided in Section&#160;12.2,
    shall not be less than the Fair Market Value of one Share on
    such date of grant of the right.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Upon the exercise of a Stock Appreciation Right,
    payment shall be made in whole Shares or cash as determined by
    the Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;The provisions of Stock Appreciation Rights need not be
    the same with respect to each recipient.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (d)&#160;The Committee may impose such other conditions or
    restrictions on the terms of exercise and the exercise price of
    any Stock Appreciation Right, as it shall deem appropriate. In
    connection with the foregoing, the Committee shall consider the
    applicability and effect of Section&#160;162(m) of the Code.
    Notwithstanding the foregoing provisions of this
    Section&#160;6.2, but subject to Section&#160;12.2, a Stock
    Appreciation Right shall not have (i)&#160;an exercise price
    less than Fair Market Value on the date of grant, or (ii)&#160;a
    term of greater than ten years. In addition to the foregoing,
    but subject to Section&#160;12.2, the base amount of any Stock
    Appreciation Right shall not be reduced after the date of grant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.3&#160;&#160;<U>Termination of Employment or Consulting
    Relationship or Directorship.</U>&#160;&#160;If a Participant
    holds exercisable Stock Appreciation Rights on the date his or
    her Continuous Status as an Employee, Director or Consultant
    terminates (other than because of termination due to Cause, but
    including death or Disability), the Participant may exercise the
    Stock Appreciation Rights that were vested and exercisable as of
    the date of termination until the end of the original term or
    for the period set forth in the Award Agreement or determined by
    the Committee, whichever is earlier. If the Participant is not
    entitled to exercise his or her entire Stock Appreciation Right
    at the date of such termination, the Shares covered by the
    unexercisable portion of the Stock Appreciation Right will
    revert to the Plan, unless otherwise set forth in the Award
    Agreement or determined by the Committee. The Committee may
    determine in its sole discretion that such unexercisable portion
    of the Stock Appreciation Right will become exercisable at such
    times and on such terms as the Committee may determine in its
    sole discretion. If the Participant does not exercise a Stock
    Appreciation Right within the time specified after termination,
    that Stock Appreciation Right will expire, and the Shares
    covered by it will revert to the Plan, except as otherwise
    determined by the Committee.
</DIV>


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    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;VII<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RESTRICTED
    STOCK AWARDS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.1&#160;&#160;<U>Grants.</U>&#160;&#160;Awards of Restricted
    Stock may be issued hereunder to Participants either alone or in
    addition to other Awards granted under the Plan (a
    &#147;<B>Restricted Stock Award</B>&#148;). A Restricted Stock
    Award shall be subject to restrictions imposed by the Committee
    covering a period of time specified by the Committee (the
    &#147;<B>Restricted Period</B>&#148;); provided, however, that,
    in the case of Restricted Stock as to which restrictions lapse
    based solely on the recipient&#146;s Continuous Status as an
    Employee, Director, or Consultant, the Restricted Period over
    which the restrictions may fully lapse shall not be less than
    three years, but the restrictions may lapse ratably over such
    Restricted Period. The provisions of Restricted Stock Awards
    need not be the same with respect to each recipient. The
    Committee has absolute discretion to determine whether any
    consideration (other than services) is to be received by the
    Company or any Affiliate as a condition precedent to the
    issuance of Restricted Stock.
</DIV>

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    <BR>
    B-9
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    7.2&#160;&#160;<U>Award Agreements.</U>&#160;&#160;The terms of
    any Restricted Stock Award granted under the Plan shall be set
    forth in a written Award Agreement which shall contain
    provisions determined by the Committee and not inconsistent with
    the Plan.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.3&#160;&#160;<U>Rights of Holders of Restricted
    Stock.</U>&#160;&#160;Except as otherwise provided in the Award
    Agreement, beginning on the date of grant of the Restricted
    Stock Award and subject to execution of the Award Agreement, the
    Participant shall become a shareholder of the Company with
    respect to all Shares subject to the Award Agreement and shall
    have all of the rights of a shareholder, including the right to
    vote such Shares and the right to receive distributions made
    with respect to such Shares; provided, however that the Award
    Agreement may provide that any Shares or any other property
    (including cash) distributed as a dividend or otherwise with
    respect to any Restricted Shares as to which the restrictions
    have not yet lapsed shall be subject to the same restrictions as
    such Restricted Shares.
</DIV>


<!-- link1 "ARTICLE VIII OTHER STOCK UNIT AWARDS" -->


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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;VIII<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OTHER
    STOCK UNIT AWARDS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.1&#160;&#160;<U>Other Stock Unit Awards.</U>&#160;&#160;Other
    Awards of Shares and other Awards that are valued in whole or in
    part by reference to, or are otherwise based on, Shares or other
    property (&#147;<B>Other Stock Unit Awards</B>&#148;) may be
    granted hereunder to Participants, either alone or in addition
    to other Awards granted under the Plan, and such Other Stock
    Unit Awards shall also be available as a form of payment in the
    settlement of other Awards granted under the Plan. Other Stock
    Unit Awards shall be paid in Shares or cash. Subject to the
    provisions of the Plan, the Committee shall have sole and
    complete authority to determine the Employees, Consultants and
    Directors to whom and the time or times at which such Other
    Stock Unit Awards shall be made, the number of Shares to be
    granted pursuant to such Awards, and all other conditions of the
    Awards; provided, however, that if the vesting of an Other Stock
    Unit Award is based solely on the recipient&#146;s Continuous
    Status as an Employee, Director or Consultant, the period over
    which such Other Stock Unit Award fully vests shall not be less
    than three years, but vesting may occur ratably over such
    vesting period. The provisions of Other Stock Unit Awards need
    not be the same with respect to each recipient.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.2&#160;&#160;<U>Terms and Conditions.</U>&#160;&#160;Shares
    (including securities convertible into Shares) subject to Awards
    granted under this Article&#160;8 may be issued for no
    consideration or for such minimum consideration as may be
    required by Applicable Law. Shares (including securities
    convertible into Shares) purchased pursuant to a purchase right
    awarded under this Article&#160;8 shall be purchased for such
    consideration as the Committee shall determine in its sole
    discretion.
</DIV>


<!-- link1 "ARTICLE IX PERFORMANCE AWARDS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;IX<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PERFORMANCE
    AWARDS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.1&#160;&#160;<U>Terms of Performance
    Awards.</U>&#160;&#160;Performance Awards may be issued
    hereunder to Participants, for no consideration or for such
    minimum consideration as may be required by Applicable Law,
    either alone or in addition to other Awards granted under the
    Plan. The performance criteria to be achieved during any
    Performance Period and the length of the Performance Period
    shall be determined by the Committee upon the grant of each
    Performance Award; provided, however, that a Performance Period
    shall not be shorter than one year nor longer than five years.
    Except as provided in Article&#160;11 or as may be provided in
    an Award Agreement, Performance Awards will be distributed only
    after the end of the relevant Performance Period. Performance
    Awards may be paid in cash, Shares, other property, or any
    combination thereof, in the sole discretion of the Committee at
    the time of payment. The performance goals to be achieved for
    each Performance Period shall be conclusively determined by the
    Committee and may be based upon the criteria set forth in
    Section&#160;10.2. The amount of the Award to be distributed
    shall be conclusively determined by the Committee. The terms of
    a Performance Award may provide that it will be paid in a lump
    sum or in installments following the close of the Performance
    Period.
</DIV>

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    <BR>
    B-10
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "ARTICLE X CODE SECTION 162(m) PROVISIONS" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;X<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CODE
    SECTION&#160;162(m) PROVISIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    10.1&#160;&#160;<U>Covered
    Employees.</U>&#160;&#160;Notwithstanding any other provision of
    the Plan, if the Committee determines at the time Restricted
    Stock, a Performance Award or an Other Stock Unit Award is
    granted to a Participant who is, or is likely to be, as of the
    end of the tax year in which the Company would claim a tax
    deduction in connection with such Award, a Covered Employee, and
    that the deduction limit of Section&#160;162(m) of the Code
    might apply to such Award, then the Committee may provide that
    this Article&#160;10 is applicable to such Award.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    10.2&#160;&#160;<U>Performance Criteria.</U>&#160;&#160;If
    Restricted Stock, a Performance Award or an Other Stock Unit
    Award is subject to this Article&#160;10, then the lapsing of
    restrictions thereon and the distribution of cash, Shares or
    other property pursuant thereto, as applicable, shall be subject
    to the achievement of one or more objective performance goals
    established by the Committee, which shall be based on the
    attainment of specified levels, or growth, of one or any
    combination of the following factors, or an objective formula
    that is determined at the time of the Award that is based on
    modified or unmodified calculations of one or any combination of
    the following factors: net sales; pretax income before or after
    allocation of corporate overhead and bonus; earnings per share;
    net income; division, group or corporate financial goals; return
    on stockholders&#146; equity; return on assets; attainment of
    strategic and operational initiatives; appreciation in
    <FONT style="white-space: nowrap">and/or</FONT>
    maintenance of the price of the Shares or any other
    publicly-traded securities of the Company; market share; gross
    profits; earnings before taxes; earnings before interest and
    taxes; earnings before interest, taxes, depreciation and
    amortization (&#147;<B>EBITDA</B>&#148;); an adjusted formula of
    EBITDA determined by the Committee; economic value-added models;
    comparisons with various stock market indices; reductions in
    costs,
    <FONT style="white-space: nowrap">and/or</FONT>
    return on invested capital of the Company or any Affiliate,
    division or business unit of the Company for or within which the
    Participant is primarily employed. Such performance goals also
    may be based solely by reference to the Company&#146;s
    performance or the performance of an Affiliate, division or
    business unit of the Company, or based upon the relative
    performance of other companies or upon comparisons of any of the
    indicators of performance relative to other companies. Unless
    the Committee specifies otherwise when it sets the performance
    goals for an award, objective adjustments shall be made to any
    of the foregoing measures for items that will not properly
    reflect the Company&#146;s financial performance for these
    purposes, such as the write-off of debt issuance costs,
    pre-opening and development costs, gain or loss from asset
    dispositions, asset or other impairment charges, litigation
    settlement costs, and other non-routine items that the Committee
    foresees may occur during the Performance Period. Also, unless
    the Committee determines otherwise in setting the performance
    goals for an Award, such performance goals shall be applied by
    excluding the impact of (a)&#160;restructurings, discontinued
    operations and charges for extraordinary items, (b)&#160;an
    event either not directly related to the operations of the
    Company or not within the reasonable control of the
    Company&#146;s management, or (c)&#160;a change in accounting
    standards required by generally accepted accounting principles.
    Such performance goals shall be set by the Committee within the
    time period prescribed by, and shall otherwise comply with the
    requirements of, Section&#160;162(m) of the Code, or any
    successor provision thereto, and the regulations thereunder.
</DIV>

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    10.3&#160;&#160;<U>Adjustments.</U>&#160;&#160;Notwithstanding
    any provision of the Plan (other than Article&#160;11), with
    respect to any Restricted Stock, Performance Award or Other
    Stock Unit Award that is subject to this Article&#160;10, the
    Committee may adjust downward, but not upward, the amount
    payable pursuant to such Award, and the Committee may not waive
    the achievement of the applicable performance goals, except in
    the case of the death or Disability of the Participant or the
    occurrence of a Change of Control.
</DIV>

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    10.4&#160;&#160;<U>Determination of
    Performance.</U>&#160;&#160;Prior to the vesting, payment,
    settlement or lapsing of any restrictions with respect to any
    Restricted Stock, Performance Award or Other Stock Unit Award
    that is subject to this Article&#160;10, the Committee shall
    certify in writing that the applicable performance goals have
    been achieved to the extent necessary for such Award to qualify
    as &#147;performance based compensation&#148; within the meaning
    of Section&#160;162(m)(4)(C) of the Code.
</DIV>

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    10.5&#160;&#160;<U>Restrictions.</U>&#160;&#160;The Committee
    shall have the power to impose such other restrictions on Awards
    subject to this Article&#160;10 as it may deem necessary or
    appropriate to ensure that such Awards satisfy all requirements
    for &#147;performance-based compensation&#148; within the
    meaning of Section&#160;162(m)(4)(C) of the Code, or which are
    not inconsistent with such requirements.
</DIV>

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    <BR>
    B-11
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    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;XI<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CHANGE OF
    CONTROL PROVISIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11.1&#160;&#160;<U>Impact of Change of
    Control.</U>&#160;&#160;The terms of any Award may provide in
    the Award Agreement evidencing the Award, or the Committee may
    determine in its discretion, that, upon a Change of Control of
    the Company, (a)&#160;Options and Stock Appreciation Rights
    outstanding as of the date of the Change of Control immediately
    vest and become exercisable in full or in part,
    (b)&#160;restrictions and deferral limitations on Restricted
    Stock lapse and the Restricted Stock becomes free of some or all
    restrictions and limitations and becomes partially or fully
    vested, (c)&#160;Performance Awards shall be considered to be
    earned and payable (either in full or pro-rata based on the
    portion of Performance Period completed as of the date of the
    Change of Control), and any deferral or other restriction shall
    lapse and such Performance Awards shall be immediately settled
    or distributed, (d)&#160;the restrictions and deferral
    limitations and other conditions applicable to any Other Stock
    Unit Awards or any other Awards shall lapse in full or in part,
    and such Other Stock Unit Awards or such other Awards shall
    become free of some or all restrictions, limitations or
    conditions and become partially or fully vested and
    transferable, and (e)&#160;such other additional benefits,
    changes or adjustments as the Committee deems appropriate shall
    apply, subject in each case to any terms and conditions
    contained in the Award Agreement evidencing such Award.
    Notwithstanding any other provision of the Plan, the Committee,
    in its discretion, may determine that, upon the occurrence of a
    Change of Control of the Company, (a)&#160;each Option and Stock
    Appreciation Right shall remain exercisable for only a limited
    period of time determined by the Committee (provided that they
    remain exercisable for at least 30&#160;days after notice of
    such action is given to the Participants), or (b)&#160;each
    Option and Stock Appreciation Right outstanding shall terminate
    within a specified number of days after notice to the
    Participant, and such Participant shall receive, with respect to
    each Share subject to such Option or Stock Appreciation Right,
    an amount equal to the excess of the Fair Market Value of such
    Share immediately prior to the occurrence of such Change of
    Control over the exercise price per share of such Option
    <FONT style="white-space: nowrap">and/or</FONT> Stock
    Appreciation Right; such amount to be payable in cash, in one or
    more kinds of stock or property (including the stock or
    property, if any, payable in the transaction) or in a
    combination thereof, as the Committee, in its discretion, shall
    determine. Notwithstanding the foregoing and the provisions of
    Section&#160;11.2, the Committee will take no action that would
    subject any Participant to a penalty tax under Section&#160;409A
    of the Code.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11.2&#160;&#160;<U>Assumption Upon Change of
    Control.</U>&#160;&#160;The terms of any Award Agreement may
    also provide that, if in the event of a Change of Control the
    successor company assumes or substitutes for an Option, Stock
    Appreciation Right, Share of Restricted Stock or Other Stock
    Unit Award, then each outstanding Option, Stock Appreciation
    Right, Share of Restricted Stock or Other Stock Unit Award shall
    not be accelerated as described in Sections&#160;11.1(a),
    (b)&#160;and (d). For the purposes of this Section&#160;11.2, an
    Option, Stock Appreciation Right, Share of Restricted Stock or
    Other Stock Unit Award shall be considered assumed or
    substituted for if following the Change of Control the award
    confers the right to purchase or receive, for each Share subject
    to the Option, Stock Appreciation Right, Restricted Stock Award
    or Other Stock Unit Award immediately prior to the Change of
    Control, the consideration (whether stock, cash or other
    securities or property) received in the transaction constituting
    a Change of Control by holders of Shares for each Share held on
    the effective date of such transaction (and if holders were
    offered a choice of consideration, the type of consideration
    chosen by the holders of a majority of the outstanding shares);
    provided, however, that if such consideration received in the
    transaction constituting a Change of Control is not solely
    common stock of the successor company, the Committee may, with
    the consent of the successor company, provide that the
    consideration to be received upon the exercise or vesting of an
    Option, Stock Appreciation Right, Restricted Stock Award or
    Other Stock Unit Award, for each Share subject thereto, will be
    solely common stock of the successor company substantially equal
    in fair market value to the per share consideration received by
    holders of Shares in the transaction constituting a Change of
    Control. The determination of such substantial equality of value
    of consideration shall be made by the Committee in its sole
    discretion and its determination shall be conclusive and
    binding. Any assumption or substitution of an Incentive Stock
    Option will be made in a manner that will not be considered a
    &#147;modification&#148; under the provisions of
    Section&#160;424(h)(3) of the Code. Notwithstanding the
    foregoing, an Award Agreement may provide that, in the event of
    a termination of a Participant&#146;s employment in such
    successor company within a specified time period following such
    Change of Control, all or part of any such Award held by such
    Participant at the time of the Change of Control shall be
    accelerated as described in Sections&#160;11.1(a), (b)&#160;and
    (d)&#160;above.
</DIV>

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    <BR>
    B-12
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<!-- link1 "ARTICLE XII GENERALLY APPLICABLE PROVISIONS" -->


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    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;XII<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">GENERALLY
    APPLICABLE PROVISIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.1&#160;&#160;<U>Amendment and Modification of the
    Plan.</U>&#160;&#160;The Board may, from time to time, alter,
    amend, suspend or terminate the Plan as it shall deem advisable,
    subject to any requirement for stockholder approval imposed by
    Applicable Law; provided that the Board may not amend the Plan
    in any manner that would result in noncompliance with
    <FONT style="white-space: nowrap">Rule&#160;16b-3</FONT>
    of the Exchange Act; and further provided that the Board may
    not, without the approval of the Company&#146;s stockholders,
    amend the Plan to (a)&#160;increase the number of Shares that
    may be the subject of Awards under the Plan (except for
    adjustments pursuant to Section&#160;12.2), (b)&#160;expand the
    types of awards available under the Plan, (c)&#160;materially
    expand the class of persons eligible to participate in the Plan,
    (d)&#160;amend any provision of Section&#160;5.3,
    (e)&#160;increase the maximum permissible term of any Option
    specified by Section&#160;5.4, or (f)&#160;amend any provision
    of Section&#160;3.2. In addition, no amendments to, or
    termination of, the Plan (other than by reason of the failure of
    stockholders to approve the Plan in the manner set forth in
    Section&#160;13.12) shall in any way impair the rights of a
    Participant under any Award previously granted without such
    Participant&#146;s consent.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.2&#160;&#160;<U>Adjustments.</U>&#160;&#160;In the event of
    any merger, reorganization, consolidation, recapitalization,
    dividend or distribution (whether in cash, shares or other
    property), stock split, reverse stock split, spin-off or similar
    transaction or other change in corporate structure affecting the
    Shares or the value thereof, such adjustments and other
    substitutions shall be made to the Plan and to Awards as the
    Committee, in its sole discretion, deems equitable or
    appropriate, including such adjustments in the aggregate number,
    class and kind of securities that may be delivered under the
    Plan and, in the aggregate or to any one Participant, in the
    number, class, kind and option or exercise price of securities
    subject to outstanding Awards granted under the Plan (including,
    if the Committee deems appropriate, the substitution of similar
    options to purchase the shares of, or other awards denominated
    in the shares of, another company) as the Committee may
    determine to be appropriate in its sole discretion; provided,
    however, that the number of Shares subject to any Award shall
    always be a whole number. Where an adjustment under this
    Section&#160;12.2 is made to an Incentive Stock Option, the
    adjustment will be made in a manner which will not be considered
    a &#147;modification&#148; under the provisions of
    Sections&#160;409A or 424(h)(3) of the Code.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.3&#160;&#160;<U>Transferability of
    Awards.</U>&#160;&#160;Except as provided below, no Award, and
    no Shares subject to Awards that have not been issued or as to
    which any applicable restriction, performance or deferral period
    has not lapsed, may be sold, assigned, transferred, pledged or
    otherwise encumbered, other than by will or the laws of descent
    and distribution, and such Award may be exercised during the
    life of the Participant only by the Participant or the
    Participant&#146;s guardian or legal representative.
    Notwithstanding the foregoing, to the extent that the Committee
    so authorizes in the Award Agreement or otherwise, an Award
    other than an Incentive Stock Option may be assigned, in whole
    or in part, during the Participant&#146;s lifetime to one or
    more Family Members of the Participant. Rights under the
    assigned portion may be exercised by the Family Member(s) who
    acquire a proprietary interest in such Award pursuant to the
    assignment. The terms applicable to the assigned portion shall
    be the same as those in effect for the Award immediately before
    such assignment and shall be set forth in such documents issued
    to the assignee as the Committee deems appropriate.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;<U>Designation of Beneficiary.</U>&#160;&#160;A
    Participant may file a written designation of a beneficiary who
    is to receive any Awards that remain unexercised in the event of
    the Participant&#146;s death. If a Participant is married and
    the designated beneficiary is not the spouse, spousal consent
    will be required for the designation to be effective. The
    Participant may change such designation of beneficiary at any
    time by written notice to the Committee, subject to the above
    spousal consent requirement.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;<U>Effect of No Designation.</U>&#160;&#160;If a
    Participant dies and there is no beneficiary validly designated
    and living at the time of the Participant&#146;s death, the
    Company will deliver such Participant&#146;s Awards to the
    executor or administrator of his or her estate, or if no such
    executor or administrator has been appointed (to the knowledge
    of the Company), the Company, in its discretion, may deliver
    such Awards to the spouse or to any one or more dependents or
    relatives of the Participant, or if no spouse, dependent or
    relative is known to the Company, then to such other person as
    the Company may designate.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;<U>Death of Spouse or Dissolution of
    Marriage.</U>&#160;&#160;If a Participant designates his or her
    spouse as beneficiary, that designation will be deemed
    automatically revoked if the Participant&#146;s marriage is
    later dissolved. Similarly, any
</DIV>

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    <BR>
    B-13
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    designation of a beneficiary will be deemed automatically
    revoked upon the death of the beneficiary if the beneficiary
    predeceases the Participant. Without limiting the generality of
    the preceding sentence, the interest in Awards of a spouse of a
    Participant who has predeceased the Participant or whose
    marriage has been dissolved will automatically pass to the
    Participant, and will not be transferable by such spouse in any
    manner, including but not limited to such spouse&#146;s will,
    nor will any such interest pass under the laws of intestate
    succession.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.4&#160;&#160;<U>Termination of Employment.</U>&#160;&#160;The
    Committee shall determine and set forth in each Award Agreement
    whether any Awards granted in such Award Agreement will continue
    to be exercisable, and the terms of such exercise, on and after
    the date that a Participant&#146;s Continuous Status as an
    Employee, Director, or Consultant ceases, whether by reason of
    death, disability, voluntary or involuntary termination of
    employment or services, or otherwise. The date of termination of
    a Participant&#146;s Continuous Status as an Employee, Director
    or Consultant will be determined by the Committee, which
    determination will be final.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.5&#160;&#160;<U>Dividend Equivalents.</U>&#160;&#160;Subject
    to the provisions of the Plan and any Award Agreement, the
    recipient of an Award (including any deferred Award) may, if so
    determined by the Committee, be entitled to receive, currently
    or on a deferred basis, cash, stock or other property dividends,
    or cash payments in amounts equivalent to stock or other
    property dividends on Shares (&#147;<B>Dividend
    Equivalents</B>&#148;) with respect to the number of Shares
    covered by the Award, as determined by the Committee, in its
    sole discretion, and the Committee may provide that such amounts
    (if any) shall be deemed to have been reinvested in additional
    Shares or otherwise reinvested.
</DIV>


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    <B><FONT style="font-family: 'Times New Roman', Times">ARTICLE&#160;XIII<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MISCELLANEOUS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.1&#160;&#160;<U>Tax Withholding.</U>&#160;&#160;The Company
    shall have the right to make all payments or distributions
    pursuant to the Plan to a Participant (or to the
    Participant&#146;s executors, administrators, guardian,
    beneficiary, or legal representative, or Family Members) (any
    such person, a &#147;<B>Payee</B>&#148;) net of any applicable
    Federal, State and local taxes required to be paid or withheld
    as a result of (a)&#160;the grant of any Award, (b)&#160;the
    exercise of an Option or Stock Appreciation Rights, (c)&#160;the
    delivery of Shares or cash, (d)&#160;the lapse of any
    restrictions in connection with any Award, or (e)&#160;any other
    event occurring pursuant to the Plan. The Company or any
    Affiliate shall have the right to withhold from wages or other
    amounts otherwise payable to such Payee such withholding taxes
    as may be required by law, or to otherwise require the Payee to
    pay such withholding taxes. If the Payee shall fail to make such
    tax payments as are required, the Company or its Affiliates
    shall, to the extent permitted by law, have the right to deduct
    any such taxes from any payment of any kind otherwise due to
    such Payee or to take such other action as may be necessary to
    satisfy such withholding obligations. The Committee shall be
    authorized to establish procedures for election by Participants
    to satisfy such obligation for the payment of such taxes by
    tendering previously acquired Shares (either actually or by
    attestation, valued at their then Fair Market Value) that have
    been owned for a period of at least six months (or such other
    period to avoid accounting charges against the Company&#146;s
    earnings), or by directing the Company to retain Shares (up to
    the employee&#146;s minimum required tax withholding rate)
    otherwise deliverable in connection with the Award. If Shares
    acquired upon exercise of any Incentive Stock Option are
    disposed of in a disposition that, under Section&#160;422 of the
    Code, disqualifies the holder from the application of
    Section&#160;421(a) of the Code, the holder of the Shares
    immediately before the disposition will comply with any
    requirements imposed by the Company in order to enable the
    Company to secure the related income tax deduction to which it
    is entitled in such event.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.2&#160;&#160;<U>Right of Discharge Reserved; Claims to
    Awards.</U>&#160;&#160;Nothing in the Plan nor the grant of an
    Award hereunder shall confer upon any Employee, Consultant or
    Director the right to continue in the employment or service of
    the Company or any Affiliate or affect any right that the
    Company or any Affiliate may have to terminate the employment or
    service of (or to demote or to exclude from future Awards under
    the Plan) any such Employee, Consultant or Director at any time
    for any reason. The Company shall not be liable for the loss of
    existing or potential profit from an Award granted in the event
    of termination of an employment or other relationship. No
    Employee or Participant shall have any claim to be granted any
    Award under the Plan, and there is no obligation for uniformity
    of treatment of Employees or Participants under the Plan.
</DIV>

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    <BR>
    B-14
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    13.3&#160;&#160;<U>Prospective Recipient.</U>&#160;&#160;The
    prospective recipient of any Award under the Plan shall not,
    with respect to such Award, be deemed to have become a
    Participant, or to have any rights with respect to such Award,
    until and unless such recipient shall have executed an agreement
    or other instrument evidencing the Award and delivered a copy
    thereof to the Company, and otherwise complied with the then
    applicable terms and conditions.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.4&#160;&#160;<U>Cancellation of
    Award.</U>&#160;&#160;Notwithstanding anything to the contrary
    contained herein, all outstanding Awards granted to any
    Participant may be canceled in the discretion of the Committee
    if the Participant&#146;s Continuous Status as an Employee,
    Director or Consultant is terminated for Cause, or if, after the
    termination of the Participant&#146;s Continuous Status as an
    Employee, Director, or Consultant, the Committee determines that
    Cause existed before such termination.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.5&#160;&#160;<U>Stop Transfer Orders.</U>&#160;&#160;All
    certificates for Shares delivered under the Plan pursuant to any
    Award shall be subject to such stop-transfer orders and other
    restrictions as the Committee may deem advisable under the
    provisions of this Plan, the rules, regulations and other
    requirements of the Securities and Exchange Commission, any
    stock exchange upon which the Shares are 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 style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.6&#160;&#160;<U>Nature of Payments.</U>&#160;&#160;All Awards
    made pursuant to the Plan are in consideration of services
    performed or to be performed for the Company or any Affiliate,
    division or business unit of the Company. Any income or gain
    realized pursuant to Awards under the Plan and any Stock
    Appreciation Rights constitute a special incentive payment to
    the Participant and shall not be taken into account, to the
    extent permissible under Applicable Law, as compensation for
    purposes of any of the employee benefit plans of the Company or
    any Affiliate except as may be determined by the Committee or by
    the Board or board of directors of the applicable Affiliate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.7&#160;&#160;<U>Other Plans.</U>&#160;&#160;Nothing contained
    in the Plan shall prevent the Board from adopting other or
    additional compensation arrangements, subject to stockholder
    approval if such approval is required; and such arrangements may
    be either generally applicable or applicable only in specific
    cases.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.8&#160;&#160;<U>Severability.</U>&#160;&#160;If any provision
    of the Plan shall be held unlawful or otherwise invalid or
    unenforceable in whole or in part by a court of competent
    jurisdiction, such provision shall (a)&#160;be deemed limited to
    the extent that such court of competent jurisdiction deems it
    lawful, valid
    <FONT style="white-space: nowrap">and/or</FONT>
    enforceable and as so limited shall remain in full force and
    effect, and (b)&#160;not affect any other provision of the Plan
    or part thereof, each of which shall remain in full force and
    effect. If the making of any payment or the provision of any
    other benefit required under the Plan shall be held unlawful or
    otherwise invalid or unenforceable by a court of competent
    jurisdiction, such unlawfulness, invalidity or unenforceability
    shall not prevent any other payment or benefit from being made
    or provided under the Plan, and if the making of any payment in
    full or the provision of any other benefit required under the
    Plan in full would be unlawful or otherwise invalid or
    unenforceable, then such unlawfulness, invalidity or
    unenforceability shall not prevent such payment or benefit from
    being made or provided in part, to the extent that it would not
    be unlawful, invalid or unenforceable, and the maximum payment
    or benefit that would not be unlawful, invalid or unenforceable
    shall be made or provided under the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.9&#160;&#160;<U>Construction.</U>&#160;&#160;All references
    in the Plan to &#147;<B>Section,</B>&#148;
    &#147;<B>Sections,</B>&#148; or &#147;<B>Article</B>&#148; are
    intended to refer to the Section, Sections or Article, as the
    case may be, of the Plan. As used in the Plan, the words
    &#147;<B>include</B>&#148; and &#147;<B>including,</B>&#148; and
    variations thereof, shall not be deemed to be terms of
    limitation, but rather shall be deemed to be followed by the
    words &#147;<B>without limitation.</B>&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.10&#160;&#160;<U>Unfunded Status of the
    Plan.</U>&#160;&#160;The Plan is intended to constitute an
    &#147;<B>unfunded</B>&#148; plan for incentive and deferred
    compensation. With respect to any payments not yet made to a
    Participant by the Company, nothing contained herein shall give
    any such Participant any rights that are greater than those of a
    general creditor of the Company. In its sole discretion, the
    Committee may authorize the creation of trusts or other
    arrangements to meet the obligations created under the Plan to
    deliver the Shares or payments in lieu of or with respect to
    Awards hereunder; provided, however, that the existence of such
    trusts or other arrangements is consistent with the unfunded
    status of the Plan.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-15
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.11&#160;&#160;<U>Governing Law.</U>&#160;&#160;The Plan and
    all determinations made and actions taken thereunder, to the
    extent not otherwise governed by the Code or the laws of the
    United States, shall be governed by the laws of the State of
    Delaware and construed accordingly.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.12&#160;&#160;<U>Effective Date of Plan; Termination of
    Plan.</U>&#160;&#160;The Plan shall be effective on
    April&#160;24, 2007, subject to the approval of the Plan, within
    12&#160;months thereafter, by affirmative votes representing a
    majority of the votes cast under Applicable Laws at a duly
    constituted meeting of the stockholders of the Company. After
    the adoption of this Plan by the Board, Awards may be made, but
    all such Awards shall be subject to stockholder approval of this
    Plan in accordance with the first sentence of this
    Section&#160;13.12, and no Options or Stock Appreciation Rights
    may be exercised prior to such stockholder approval of the Plan.
    If the stockholders do not approve this Plan in the manner set
    forth in the first sentence of this Section&#160;13.12, this
    Plan, and all Awards granted hereunder, shall be null and void
    and of no effect. Awards may be granted under the Plan at any
    time and from time to time on or prior to the tenth anniversary
    of the effective date of the Plan (unless the Board sooner
    suspends or terminates the Plan under Section&#160;12.1), on
    which date the Plan will expire except as to Awards then
    outstanding under the Plan. Notwithstanding the foregoing,
    unless affirmative votes representing a majority of the votes
    cast under Applicable Laws approve the continuation of
    Article&#160;10 at the first duly constituted meeting of the
    stockholders of the Company that occurs in the fifth year
    following the effective date of this Plan, no Awards other than
    Options or Stock Appreciation Rights, or Restricted Stock that
    is not intended to satisfy the requirements of Article&#160;10,
    shall be made to Covered Employees following the date of such
    meeting. Except as set forth in the third sentence of this
    Section&#160;13.12, outstanding Awards shall remain in effect
    until they have been exercised or terminated, or have expired.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.13&#160;&#160;<U>Foreign Employees.</U>&#160;&#160;Awards may
    be granted to Participants who are foreign nationals or employed
    outside the United States, or both, on such terms and conditions
    different from those applicable to Awards to Employees employed
    in the United States as may, in the judgment of the Committee,
    be necessary or desirable in order to recognize differences in
    local law or tax policy. The Committee also may impose
    conditions on the exercise or vesting of Awards in order to
    minimize the Company&#146;s obligation with respect to tax
    equalization for Employees on assignments outside their home
    country.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.14&#160;&#160;<U>Effect on Prior Plans.</U>&#160;&#160;On the
    approval of this Plan by the stockholders of the Company in the
    manner set forth in Section&#160;13.12, the Prior Plans shall be
    cancelled and no further grants or awards shall be made under
    the Prior Plans. Grants and awards made under the Prior Plans
    before the date of such cancellation, however, shall continue in
    effect in accordance with their terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.15&#160;&#160;<U>Other Company Compensation
    Plans.</U>&#160;&#160;Shares available for Awards under the Plan
    may be used by the Company as a form of payment of compensation
    under other Company compensation plans, whether or not existing
    on the date hereof. To the extent any Shares are used as such by
    the Company, such Shares will reduce the then number of Shares
    available under Article&#160;3 of the Plan for future Awards.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    13.16&#160;&#160;<U>Captions.</U>&#160;&#160;The captions in the
    Plan are for convenience of reference only, and are not intended
    to narrow, limit or affect the substance or interpretation of
    the provisions contained herein.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    B-16
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->


<!-- link1 "PROXY" -->


<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROXY</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">BIG 5
    SPORTING GOODS CORPORATION<BR>
    PROXY FOR 2007 ANNUAL MEETING OF STOCKHOLDERS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The undersigned hereby acknowledges receipt of the Notice of
    Annual Meeting of Stockholders of Big 5 Sporting Goods
    Corporation (the &#147;Company&#148;) and the accompanying Proxy
    Statement relating to the above-referenced Annual Meeting, and
    hereby appoints Steven G. Miller, Gary S. Meade and Barry D.
    Emerson, or any of them, with full power of substitution and
    resubstitution in each, as attorneys and proxies of the
    undersigned.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Said proxies are hereby given authority to vote all shares of
    common stock of the Company which the undersigned may be
    entitled to vote at the 2007 Annual Meeting of Stockholders of
    the Company and at any and all adjournments or postponements
    thereof on behalf of the undersigned on the matters set forth on
    the reverse side hereof and in the manner designated thereon.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS OF THE
    COMPANY, AND WHEN PROPERLY EXECUTED, THE SHARES&#160;REPRESENTED
    HEREBY WILL BE VOTED IN ACCORDANCE WITH THE INSTRUCTIONS&#160;ON
    THIS PROXY. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED
    &#147;FOR&#148; THE ELECTION OF ALL NOMINEES NAMED AS DIRECTORS
    OF THE COMPANY AND &#147;FOR&#148; APPROVAL OF THE 2007 EQUITY
    AND PERFORMANCE INCENTIVE PLAN.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    PLEASE DATE, SIGN AND RETURN THIS PROXY CARD PROMPTLY IN THE
    ENCLOSED ENVELOPE.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (See reverse side)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    FOLD AND DETACH HERE
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Please mark votes as in this
    example:&#160;&#160;<FONT face="wingdings">&#254;
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="9%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="45%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="26%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">1.
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Election of Two Class&#160;B
    Directors:
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Nominees:
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    <FONT style="font-size: 10pt">Sandra N. Bane<BR>
    Michael D. Miller
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">FOR<BR>
    ALL
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt">WITHHOLD<BR>
    AUTHORITY<BR>
    FOR ALL
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt"><FONT face="wingdings">o</FONT>
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <FONT style="font-size: 10pt"><FONT face="wingdings">o</FONT>
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (INSTRUCTION: TO WITHHOLD AUTHORITY TO VOTE FOR ANY INDIVIDUAL
    NOMINEE, WRITE THAT NOMINEE&#146;S NAME IN THE SPACE PROVIDED
    BELOW.)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="4%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="11%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="9%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="9%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="31%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">2.
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" valign="top">
    <FONT style="font-size: 10pt">Approval of 2007 Equity and
    Performance Incentive Plan
    </FONT>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">&#160;&#160;FOR&#160;&#160;<BR>
    <FONT face="wingdings">o</FONT>
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">AGAINST<BR>
    <FONT face="wingdings">o</FONT>
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">ABSTAIN<BR>
    <FONT face="wingdings">o</FONT>
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

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

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="font-size: 0pt; margin-left: 0%; width: 100%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THIS PROXY WILL BE VOTED AS DIRECTED OR, IF NO DIRECTION IS
    INDICATED, THE PROXIES ARE AUTHORIZED TO VOTE &#147;FOR&#148;
    THE ELECTION OF THE ABOVE-LISTED NOMINEES OR SUCH SUBSTITUTE
    NOMINEE(S) FOR DIRECTORS AS THE BOARD OF DIRECTORS OF THE
    COMPANY SHALL SELECT AND &#147;FOR&#148; APPROVAL OF THE 2007
    EQUITY AND PERFORMANCE INCENTIVE PLAN. THIS PROXY ALSO CONFERS
    DISCRETIONARY AUTHORITY ON THE PROXIES TO VOTE AS TO ANY OTHER
    MATTER THAT IS PROPERLY BROUGHT BEFORE THE ANNUAL MEETING THAT
    THE BOARD OF DIRECTORS DID NOT HAVE NOTICE OF PRIOR TO
    MARCH&#160;24, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Signature
    <FONT style="word-spacing: 100pt; white-space: nowrap; font-size: 1pt"><U>_
    _</U></FONT><!-- callerid=128 iwidth=455 length=96 -->&#160;&#160;Dated
    <FONT style="word-spacing: 100pt; white-space: nowrap; font-size: 1pt"><U>_
    _</U></FONT><!-- callerid=128 iwidth=455 length=96 -->,
    2007
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Note: Please date and sign exactly as your name(s) appear on
    this proxy card. If shares are registered in more than one name,
    all such persons should sign. A corporation should sign in its
    full corporate name by a duly authorized officer, stating his
    title. When signing as attorney, executor, administrator,
    trustee or guardian, please sign in your official capacity and
    give your full title as such. If a partnership, please sign in
    the partnership name by an authorized person.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For address changes, please mark the box to the right and write
    them on the label below.&#160;&#160;<FONT face="wingdings">o
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    - FOLD AND DETACH HERE -
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
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