<SUBMISSION>
<ACCESSION-NUMBER>0000012355-06-000100
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20060420
<ITEMS>1.01
<ITEMS>9.01
<FILING-DATE>20060421
<DATE-OF-FILING-DATE-CHANGE>20060421
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>BLACK & DECKER CORP
<CIK>0000012355
<ASSIGNED-SIC>3540
<IRS-NUMBER>520248090
<STATE-OF-INCORPORATION>MD
<FISCAL-YEAR-END>1205
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>333-03593
<FILM-NUMBER>06772979
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>701 E JOPPA RD
<CITY>TOWSON
<STATE>MD
<ZIP>21286
<PHONE>4107163900
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>701 EAST JOPPA ROAD
<STREET2>MAIL STOP TW 290
<CITY>TOWSON
<STATE>MD
<ZIP>21286
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>BLACK & DECKER MANUFACTURING CO
<DATE-CHANGED>19850206
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k04212006a.htm
<DESCRIPTION>FORM 8-K FILED APRIL 21, 2006
<TEXT>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>UNITED STATES<BR>SECURITIES AND
EXCHANGE COMMISSION<BR>Washington, D.C. 20549 </FONT></H1>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>FORM 8-K </FONT></H1>

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<A NAME=A005></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>CURRENT REPORT<BR>Pursuant to Section 13
or 15(d) of<BR>The Securities
Exchange Act of 1934 </FONT></H1>
<BR><BR>
<P ALIGN="Center"><FONT FACE="Times New Roman" SIZE="2"><B>Date of Report (Date of earliest event reported)&nbsp;&nbsp;&nbsp;April 20, 2006
<BR><BR><BR><BR>
THE BLACK &amp; DECKER CORPORATION<BR>(Exact name of registrant as specified in its charter)</B></FONT></P>
<BR><BR>


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     <TH ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE="2"></FONT></TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE="2"></FONT></TH></TR>
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     <TD ALIGN="CENTER" WIDTH="37%"><FONT FACE="Times New Roman" SIZE="2"><B>Maryland <BR>
(State or other jurisdiction<BR>
&nbsp;&nbsp;of incorporation)
</B></FONT></TD>
     <TD ALIGN="CENTER" WIDTH="26%"><FONT FACE="Times New Roman" SIZE="2"><B>1-1553       <BR>
(Commission File Number)</B>
</FONT></TD>
     <TD ALIGN="CENTER" WIDTH="37%"><FONT FACE="Times New Roman" SIZE="2"><B>52-0248090     <BR>
(IRS Employer<BR>
&nbsp;Identification No.)</B>
</FONT></TD></TR>
</TABLE>
<BR><BR>

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     <TH ALIGN="CENTER"></TH>
     <TH ALIGN="CENTER"></TH></TR>
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     <TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE="2"><B>701 East Joppa Road, Towson, Maryland   <BR>
(Address of principal executive offices)</B></FONT>
</TD>
     <TD WIDTH="50%" ALIGN="CENTER">&nbsp;&nbsp;<FONT FACE="Times New Roman" SIZE="2"><B>21286   <BR>
(Zip Code)</B></FONT>
</TD></TR>
</TABLE>

<BR><BR>
<P ALIGN="Center"><FONT FACE="Times New Roman" SIZE="2"><B>Registrant's telephone number, including area code&nbsp;&nbsp;&nbsp;410-716-3900</B></FONT></P>
<BR>
<P ALIGN="Center"><FONT FACE="Times New Roman" SIZE="2"><B>Not Applicable<BR>(Former name or former address, if changed since last report.)</B></FONT></P>



<P><FONT FACE="Times" SIZE="2">Check the appropriate box below if the Form 8-K filing is intended to  simultaneously  satisfy the filing  obligation
of the registrant under any of the following provisions:</FONT></P>

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     <TD WIDTH="3%"><FONT FACE="Times New Roman" SIZE="2">[ ]<BR>
[ ]<BR>
[ ]<BR>
[ ]
</FONT></TD>
     <TD WIDTH="97%"><FONT FACE="Times New Roman" SIZE="2">&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR>
&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR>
&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
&nbsp;(17 CFR 240.14d-2(b))<BR>
&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
&nbsp;&nbsp;(17 CFR 240.13e-4(c))
</FONT></TD></TR>
</TABLE>


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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>-2-</FONT></P>


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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>ITEM 1.01 ENTRY INTO A
MATERIAL DEFINITIVE AGREEMENT. </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On April 20, 2006, the
Corporation&#146;s Board of Directors approved modifications to the compensation of
non-employee directors by amending the Corporation&#146;s Corporate Governance Policies
and Procedures Statement, which is filed as Exhibit 10.1 and is
incorporated herein by reference. As a result of this increase, non-management directors
will receive an annual retainer of $195,000, consisting of shares of common stock with a
value of $97,500 under The Black &amp; Decker Non-Employee Directors Stock Plan (the
&#147;Directors Stock Plan&#148;) and $97,500 in cash. The chairmen of the Audit Committee
and the Compensation Committee will each receive an additional retainer of $20,000 in
cash, the chairmen of the Finance Committee and the Corporate Governance Committee will
each receive an additional retainer of $10,000 in cash, and each member of the Audit
Committee other than the chairman will receive an additional retainer of $10,000 in cash.
Directors have the option to receive all or any part of the cash portion of the annual
retainer in shares of common stock or to defer all or a portion of their cash and stock
fees in the form of &#147;phantom shares.&#148; A director who elects to defer all or any
part of the cash portion of the annual retainer in the form of phantom shares will be
credited with shares of common stock having a fair market value (as defined in the
Directors Stock Plan) equal to 120% of the amount of cash deferred. In connection with the
increase in the annual compensation of non-employee directors, the Board increased the
stock ownership requirement for non-employee directors to $195,000. </FONT></P>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>ITEM 9.01 FINANCIAL
STATEMENTS AND EXHIBITS. </FONT></H1>

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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 10.1 </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The Black &amp; Decker Corporation Corporate Governance Policies and Procedures
Statement, as amended. </FONT></TD>
</TR>
</TABLE>
<BR>



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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>-3-</FONT></P>




<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>THE BLACK &amp; DECKER
CORPORATION </FONT></H1>

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<A NAME=A013></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>S I G N A T U R E S </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized. </FONT></P>


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     <TD WIDTH="50%"><FONT FACE="Times New Roman" SIZE="2">THE BLACK &amp; DECKER CORPORATION<BR>
<BR>
<BR>
By:<U> /s/ CHRISTINA M. MCMULLEN&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</U><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Christina M. McMullen<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President and Controller<BR>

</FONT></TD></TR>
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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: April 21, 2006 </FONT></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>2
<FILENAME>form8k04212006b.htm
<DESCRIPTION>EXHIBIT 10.1 FILED APRIL 21, 2006
<TEXT>
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>EXHIBIT 10.1</B></FONT></P>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Black &amp; Decker
Corporation </FONT></H1>




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<A NAME=A002></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Corporate Governance<BR>Policies and Procedures<BR>Statement  </FONT></H1>





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<A NAME=A005></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A.&nbsp;&nbsp;&nbsp;&nbsp; Introductory Statement </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Statement is adopted by the Board of Directors of The Black &amp; Decker Corporation to
set out the policies and procedures by which the Board performs its duties to direct the
management of the Corporation as provided in the laws of Maryland, to assure compliance
with state and federal laws and regulations and applicable rules of the New York Stock
Exchange (NYSE), and to assure that the Corporation acts effectively and efficiently in
the best interests of its stockholders and other constituencies. </FONT></P>

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<A NAME=A006></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B.&nbsp;&nbsp;&nbsp;&nbsp; Board of Directors </FONT></H1>

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<A NAME=A007></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.
&nbsp;&nbsp;&nbsp;&nbsp;Membership</B> </FONT></P>

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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>a.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Number.</B> As provided in the Bylaws, there shall be not more that 14
          Directors and not less than 8 as the Board may provide by resolution from time
          to time. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>b.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Independent Directors.</B> Not less than three-quarters of the Directors
          shall be &#147;independent Directors&#148; as defined in this section. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           A Director is not independent unless the Board affirmatively determines that
          the Director has no material relationship with the Corporation, either directly
          or as a partner, shareholder, or officer of an organization that has a
          relationship with the Corporation. The Corporation will identify in its annual
          meeting proxy statement which Directors are independent and disclose the basis
          for the determination. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           A Director is not independent if the Director is, or within the last three
          years has been, an employee of the Corporation or an immediate family member is,
          or within the last three years has been, an &#147;executive officer&#148; (as
          defined in Rule 16a-1(f) under the Securities Exchange Act of 1934) of the
          Corporation. A Director who serves as an interim Chairman, Chief Executive
          Officer (CEO) or other executive officer, however, may be deemed independent
          immediately following that employment. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           A Director is not independent if the Director or an immediate family member has
          received from the Corporation, during any twelve-month period within the last
          three years, more than $100,000 in direct compensation other than Director and
          committee fees and pension or other forms of deferred compensation for prior
          service that is not contingent on </FONT></TD>
          </TR>
          </TABLE>
          <BR>



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<DIV STYLE="page-break-after:always"></DIV>



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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
continued service. Compensation received by
          the Director for former service as an interim Chairman, CEO, or other executive
          officer and compensation received by an immediate family member for service as
          an employee (other than an executive officer) is excluded when determining
          independence under this subsection. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           A Director is not independent if (a) the Director or an immediate family member
          is a current partner of the Corporation&#146;s internal or external auditor, (b)
          the Director is a current employee of the Corporation&#146;s internal or
          external auditor, (c) an immediate family member is a current employee of the
          internal or external auditor and participates in the auditor&#146;s audit,
          assurance, or tax compliance (but not tax planning) practice, or (d) the
          Director or an immediate family member was within the last three years (but is
          not currently) a partner or employee of the internal or external auditor and
          personally worked on the Corporation&#146;s audit within that time. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           A Director is not independent if the Director or an immediate family member is,
          or within the last three years has been, employed as an executive officer of
          another company where any of the Corporation&#146;s current executive officers
          at the same time serves or served on that company&#146;s compensation committee. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           A Director is not independent if the Director is a current employee, or an
          immediate family member is a current executive officer, of a company that has
          made payments to, or received payments from, the Corporation for property or
          services in an amount that, in any of the last three fiscal years, exceeds the
          greater of $1 million or 2% of the company&#146;s consolidated gross revenues. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The term &#147;immediate family member&#148; includes a Director&#146;s spouse,
          parents, children, siblings, mothers and fathers-in-law, brothers and
          sisters-in-law, sons and daughters-in-law, and anyone (other than domestic
          employees) who shares the Director&#146;s home. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>c.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Eligibility.</B></FONT></TD>
          </TR>
          </TABLE>
          <BR>


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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           A Director shall not stand for re-election as a Director after attaining the
          age of 72 years. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Unless requested by the Corporate Governance Committee to do so, a Director
          shall not stand for re-election if there is a change in the Director&#146;s
          employment or principal business association. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           A Director who is a full-time employee of the Corporation may not serve on the
          board of directors of more than two other publicly held for-profit corporations
          unless approved by the Board. </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>2</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>
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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>d.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Orientation.</B></FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Each newly elected Director who has not served previously on the board of
          directors of a for-profit corporation listed on the NYSE will be afforded an
          opportunity to attend, at the Corporation&#146;s expense, an orientation course
          provided by the NYSE when it becomes available. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Each newly elected Director shall be provided with a copy of the
          Corporation&#146;s Directors Handbook, which includes this Statement, financial
          information, and other written materials appropriate to inform the Director
          about the duties and responsibilities of being a Director and the nature of the
          Corporation&#146;s operations and businesses. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Each newly elected Director shall also be afforded an opportunity (a) to meet
          with the CEO, the Chief Financial Officer (CFO), and the president of each major
          business group to discuss the Corporation&#146;s structure and operations and
          (b) to visit the Corporation&#146;s major facilities. </FONT></TD>
          </TR>
          </TABLE>
          <BR>


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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>e.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Stock Ownership. </B>Within the later of three years of joining the Board or
          three years of the adoption of this Statement by the Board, a Director is
          expected to own shares of the Corporation&#146;s common stock having a market
          value of at least $195,000. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



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<A NAME=A010></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.
&nbsp;&nbsp;&nbsp;&nbsp;Selection of Directors.</B> </FONT></P>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>a.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Qualifications and Standards. </B>Although there are no specific minimum
          qualifications that must be met by a candidate to be recommended to the Board
          nor any specific qualities or skills that the candidate must possess, the
          following are desirable. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Integrity</U>. A Director candidate should have proven integrity and a
          record of substantial achievement. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Age</U>. A Director candidate should be old enough to exercise mature
          judgment, but young enough to serve for several years. Ordinarily, the candidate
          should be between 45 and 60 years of age. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Experience</U>. Preferably, a candidate should be the active or retired<B>
          </B>chief executive officer of a corporation that is publicly held and of
          comparable size. Presidents, chief operating officers, chief financial
          officers,<B> </B>and other qualified and prominent individuals who have business
          acumen and whose relevant background, training, and experience can be expected
          to benefit the Corporation should also be considered. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Judgment</U>. A candidate should have a reputation for sound business
          judgment. It is important that a candidate understands the role of the Board and
          the workings of the Corporation in the current business </FONT></TD>
          </TR>
          </TABLE>
          <BR>




<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>3</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>
<DIV STYLE="page-break-after:always"></DIV>



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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
environment. A candidate
          should be able objectively to appraise management&#146;s plans, programs,
          achievements, and shortcomings. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Character</U>. Candidates must inspire trust and confidence in other
          Directors so that the Board can discharge its duties smoothly and efficiently. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Prestige</U>. A candidate should add to the prestige of the Board. This will
          enhance the Corporation&#146;s reputation and make future recruiting easier. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Commitment</U>. A candidate should be able and willing to devote the
          required amount of time to the Corporation&#146;s affairs, including preparing
          for and attending meetings of the Board and its committees and attending annual
          meetings of stockholders. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(8) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>No Conflicts</U>. A candidate may not have a conflict of interest with the
          Corporation. For this purpose, a candidate has a conflict of interest if the
          candidate has a business relationship that would be required to be disclosed in
          the Corporation&#146;s proxy statement. In addition, it is preferable that the
          candidate qualify as an independent Director as defined in section B.1.b of this
          Statement. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Representation</U>. A candidate must be committed to representing the
          interests of stockholders generally and not the interests of a particular
          stockholder or group of stockholders nor the interests of a particular group
          whose interests are primarily non-economic or involve a social agenda. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>b.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Procedure.</B></FONT></TD>
          </TR>
          </TABLE>
          <BR>



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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           When a vacancy occurs on the Board or when the Board increases the number of
          Directors, the Corporate Governance Committee will identify potential candidates
          to fill the vacancy. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Background information on each candidate will be distributed to the members of
          the Corporate Governance Committee. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The Corporate Governance Committee will screen recommended candidates, and, if
          appropriate, make discreet inquiry to determine the candidate&#146;s interest
          and availability. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Unless eliminated by the screening, the candidate&#146;s name will be reported
          to the Board and the Board members will be asked for comments. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           One or more members of the Committee will meet with the candidate and determine
          the candidate&#146;s suitability for the Board. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>4</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>
<DIV STYLE="page-break-after:always"></DIV>







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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The approved candidate&#146;s name and biographical information will be
          distributed to the other Directors at or in advance of the meeting preceding the
          meeting at which the candidate will be proposed for election. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The full Board will act on the nomination. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(8) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The Committee will consider candidates proposed by one or more substantial,
          long-term stockholders. Generally, stockholders who individually or as a group
          have held 5% of the Corporation&#146;s common stock for over one year will be
          considered substantial, long-term stockholders. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           In considering candidates proposed by stockholders, the Committee will apply
          the qualifications and standards stated in section B.2.a. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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<A NAME=A012></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.
&nbsp;&nbsp;&nbsp;&nbsp;Duties and Responsibilities.</B> </FONT></P>




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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>a.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>General.</B></FONT></TD>
          </TR>
          </TABLE>
          <BR>



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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Within limits defined by statute and the charter and bylaws of the Corporation,
          the Board of Directors shall exercise general powers as the governing body of
          the Corporation. The Board is the final authority with respect to the overall
          policies of the Corporation and with respect to the approval of objectives and
          goals for the Corporation and the evaluation of management&#146;s performance in
          relation to those policies, objectives, and goals. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The day-to-day management of the business is delegated to the CEO of the
          Corporation. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           As trustees of the business, the Directors have a fiduciary responsibility to
          the Corporation&#146;s stockholders. The Directors may also consider the
          interests of the Corporation&#146;s other constituencies such as its employees,
          customers, and the communities in which the Corporation operates, provided there
          are rationally related benefits accruing to the Corporation&#146;s stockholders. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Management has the responsibility to provide to the Directors all information
          necessary or appropriate to enable the Directors to discharge their duties and
          responsibilities. Directors must be aware, at all times, that the information
          that is presented to them is confidential pending its release to the public. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>5</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>
<DIV STYLE="page-break-after:always"></DIV>



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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>b.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Statutory Duties.</B></FONT></TD>
          </TR>
          </TABLE>
          <BR>


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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           A Director shall perform his or her duties as a Director, including duties as a
          member of a committee of the Board, (a) in good faith, (b) in a manner that the
          Director reasonably believes to be in the best interests of the Corporation, and
          (c) with the care that an ordinarily prudent person in a like position would use
          under similar circumstances. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           In performing his or her duties, a Director is entitled to rely on any
          information, opinion, report, or statement, including any financial statement or
          other financial data, prepared or presented by (a) an officer or employee of the
          Corporation whom the Director reasonably believes to be reliable and competent
          in the matters presented, (b) a lawyer, certified public accountant, or other
          person, as to a matter that the Director reasonably believes to be within the
          person&#146;s professional or expert competence, or (c) a committee of the Board
          on which the Director does not serve, as to a matter within its designated
          authority, if the Director reasonably believes the committee merits confidence.
          A Director is not acting in good faith if the Director has any knowledge
          concerning the matter in question that would cause the reliance to be
          unwarranted. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>c.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Specific Duties.</B><BR><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Specific duties include:</FONT></TD>
          </TR>
          </TABLE>
          <BR>


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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Acquisitions and Mergers</U>. With the advice of the Finance Committee,
          authorize significant acquisitions and mergers, subject to approval by the
          stockholders when necessary. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Budgets</U>. With the advice of the Finance Committee, review and approve
          annual capital expenditure and charitable contributions budgets. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Bylaws</U>. With the advice of the Corporate Governance Committee, review
          and approve changes in the Corporation&#146;s Bylaws. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Committees</U>. With the advice of the Corporate Governance Committee, elect
          or appoint, define the powers of, and dissolve committees of the Board. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Dividends</U>. With the advice of the Finance Committee, determine dividend
          policy and authorize the payment of dividends. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Employee Benefits</U>. With the advice of the Compensation Committee,
          approve major compensation plans, including stock option plans and other
          equity-based plans, and any significant changes to any of these, and, in the
          case of equity-based plans, submit them to the stockholders for approval if
          required by the rules of the NYSE. </FONT></TD>
          </TR>
          </TABLE>
          <BR>




<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>6</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>
<DIV STYLE="page-break-after:always"></DIV>




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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Ethical and Professional Standards</U>. With the advice of the Corporate
          Governance Committee, adopt ethical and professional standards for the
          Corporation and assure, through continuing review, that Directors, officers, and
          employees act in accordance with established and accepted ethical and business
          standards, including compliance with the Corporation&#146;s Code of Ethics and
          Standards of Conduct, a copy of which as amended from time to time is attached
          to this Statement as Appendix 1, and, with the advice of the Audit Committee,
          the Code of Ethics for Senior Financial Officers, a copy of which as amended
          from time to time is attached to this Statement as Appendix 2. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(8) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Financial Transactions</U>. With the advice of the Finance Committee, review
          and approve financial transactions as provided in the Board&#146;s standing
          resolution on Approval of Financial Transactions and the Corporation&#146;s
          Short-Term Investment Policy and review and approve registration statements and
          other documents relating to the public sale of the Corporation&#146;s
          securities. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Officers</U>. With the advice of the Compensation Committee, elect and, when
          appropriate, remove the CEO and other principal officers of the Corporation,
          delegate management responsibility and authority to them, and, through the
          Compensation Committee, monitor their performance and establish their
          compensation. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(10) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Stockholders</U>. With the advice of the Corporate Governance Committee, fix
          the date, time and place of all meetings of stockholders, fix the record date
          for stockholders entitled to vote at each meeting of stockholders, appoint
          management proxies and proxy solicitors, and call special meetings as required. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(11) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <U>Audit Committee Funding</U>. Cause the Corporation to provide appropriate
          funding, as determined by the Audit Committee, for payment of compensation to
          the Corporation&#146;s independent auditor, compensation to any advisors
          employed by the Audit Committee, and the administrative expenses of the Audit
          Committee that are necessary or appropriate in carrying out its duties. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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<A NAME=A016></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.
&nbsp;&nbsp;&nbsp;&nbsp;Organization.</B> </FONT></P>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>a.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Chairman.</B> At the first Board meeting following a meeting of stockholders
          at which Directors were elected, the Board will elect a Chairman from among its
          members who shall preside at all meetings of the Board and the stockholders. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>b.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Secretary.</B> The Secretary or an assistant secretary of the Corporation
          will record the proceedings at all meetings of the Board except that, during
          executive sessions of the Board from which the Secretary is excluded, another
          person </FONT></TD>
          </TR>
          </TABLE>
          <BR>




<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>7</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>
<DIV STYLE="page-break-after:always"></DIV>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B></B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
present shall be designated by the Chairman or Presiding Director to act
          as secretary of the meeting. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>c.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Presiding Director. </B>Each chairman of a standing committee who is a
          non-management Director shall serve in rotation as Presiding Director for a
          period of one year beginning with the annual meeting of stockholders in the
          following order: Corporate Governance, Compensation, Audit, and Finance. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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<A NAME=A017></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.
&nbsp;&nbsp;&nbsp;&nbsp;Meetings.</B> </FONT></P>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>a.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Attendance. </B>Each Director has a duty to attend, whenever possible, all
          meetings of the Board and of each committee of which the Director is a member. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>b.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Regular Meetings.</B> The Board will meet, without notice, immediately after
          each annual meeting of stockholders, and, subject to the notice provisions of
          the Bylaws, in the months of February, July, October, and December on a day and
          at a time designated by the CEO. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>c.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Special Meetings.</B>Special meetings may be called, subject to the notice
          provisions of the Bylaws, at any time by the CEO or any two Directors. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>d.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Executive Sessions. </B>To allow full and candid discussion among
          non-management Board members of matters important to the Corporation, the
          non-management Directors (i.e., Directors who are not officers)<B> </B>shall
          meet in executive session without management following the regular Board
          meetings in February, July, and December. (If there are one or more
          non-management directors who are not also independent directors, the independent
          directors shall meet in executive session at least once each year.) The
          Presiding Director shall preside, and, in the absence of the Presiding Director,
          the non-management Directors present will choose a Presiding Director pro tem to
          preside over the executive session. Directions as to how interested parties may
          make their concerns known to the non-management Directors as a group will be
          included in the Corporation&#146;s annual meeting proxy statement. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>e.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Meeting Materials.</B> Agendas and meeting materials will be distributed in
          advance of Board and committee meetings, and each Director has a duty to review
          the materials prior to the meetings. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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<A NAME=A018></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.
&nbsp;&nbsp;&nbsp;&nbsp;Committees.</B> </FONT></P>



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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>a.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>General.</B></FONT></TD>
          </TR>
          </TABLE>
          <BR>


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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The Board, at its discretion, may appoint or elect from among its members
          committees of one or more Directors to deal with particular areas of the
          Corporation&#146;s activities and interests. All members of committees serve at
          the pleasure of the Board and may be removed by the Board at any time. </FONT></TD>
          </TR>
          </TABLE>
          <BR>




<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>8</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>
<DIV STYLE="page-break-after:always"></DIV>





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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           To the extent practicable, any matter requiring action by the Board shall first
          be presented to the appropriate committee for consideration and recommendation. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           To the extent practicable, the CEO shall attend each committee meeting unless
          the committee is meeting in executive session. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The CEO shall designate an officer, employee, or agent of the Corporation to
          provide staff support to each committee. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Charters of the standing committees will be published from time to time as
          required by rules of the Securities and Exchange Commission (SEC) or the NYSE. </FONT></TD>
          </TR>
          </TABLE>
          <BR>




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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>b.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Standing Committees.</B> There are five standing committees of the Board:</FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

            Executive Committee, </FONT></TD>
          </TR>
          </TABLE>
          <BR>


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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Audit Committee,</FONT></TD>
          </TR>
          </TABLE>
          <BR>


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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Compensation Committee, </FONT></TD>
          </TR>
          </TABLE>
          <BR>



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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Corporate Governance Committee, and </FONT></TD>
          </TR>
          </TABLE>
          <BR>



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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Finance Committee. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>c.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Special Committees.</B> Special committees may be appointed from time to
          time by the Board to act upon such matters as the Board may commit to them. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>d.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Membership.</B></FONT></TD>
          </TR>
          </TABLE>
          <BR>



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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The members of each standing committee are appointed (or, in the case of the
          Executive Committee, elected) annually by the Board at its first meeting
          following the annual meeting of stockholders. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           A majority of each standing committee (and all of the members of the Audit
          Committee, the Compensation Committee, and the Corporate Governance Committee)
          shall be independent Directors as defined in section B.1.b of this Statement. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           The chairman of each committee is designated by the Board at the time the
          committee is elected or appointed. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Special committees may be created by resolution of the Board or appointed by
          the Chairman of the Board. They shall consist of the number of Directors that
          the resolution creating the committee or the Chairman of the Board in creating
          the committee shall provide. </FONT></TD>
          </TR>
          </TABLE>
          <BR>




<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>9</FONT></P>
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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Under normal circumstances, each Director shall serve on at least one standing
          committee, and no Director shall serve as Chairman of more than one standing
          committee. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Consideration should be given to rotating committee assignments at
          approximately five-year intervals, but the Board recognizes that there may be
          reasons to retain a particular Director on a particular committee for a longer
          period. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>e.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Committee Service Compensation.</B> In addition to the annual retainer for
                    serving as a Director, each Director who is not a full-time employee of the
                    Corporation receives: </FONT></TD>
          </TR>
          </TABLE>
          <BR>




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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           An annual retainer of $10,000 for service on the Audit Committee, $20,000 for
          service as chairman of the Compensation Committee or the Audit Committee, and
          $10,000 for service as chairman of the Finance Committee or the Corporate
          Governance Committee, prorated as of the date of appointment if the appointment
          is made at other than an annual meeting of the Board; and </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Reimbursement for reasonable expenses incurred in attending committee meetings. </FONT></TD>
          </TR>
          </TABLE>
          <BR>


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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>f.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Operation.</B> Each Committee:</FONT></TD>
          </TR>
          </TABLE>
          <BR>



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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Shall appoint a secretary who may, but need not, be a member of the Committee; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Shall keep minutes of its proceedings; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           May determine its own procedures; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           May call upon the Corporation&#146;s officers, employees, counsel, auditors,
          and consultants and may retain at the Corporation&#146;s expense other
          professional advisers and consultants as it may choose; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           May appoint subcommittees of its members to perform particular functions on
          behalf of the Committee; and </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           May meet by telephone conference call or similar communications equipment if
          all persons participating in the meeting can hear each other at the same time. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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<A NAME=A021></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.
&nbsp;&nbsp;&nbsp;&nbsp;Director Compensation.</B> </FONT></P>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>a.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>General. </B>Compensation of Directors is authorized from time to time by
          resolution of the Board with the advice of the Corporate Governance Committee.</FONT></TD>
          </TR>
          </TABLE>
          <BR>





<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>10</FONT></P>
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<DIV STYLE="page-break-after:always"></DIV>





<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B></B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Directors who are full-time employees serve without additional compensation.
          Compensation, including compensation for service on a committee, may be deferred
          as provided in The Black &amp; Decker Non-Employee Directors Stock Plan. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>b.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Annual Retainer. </B>Directors who are not full-time employees of the
          Corporation receive, as of the date of election or re-election to the Board, an
          annual retainer of $195,000 payable one-half in shares of stock under the
          Non-Employee Directors Stock Plan and the balance in cash. A Director may elect
          to receive all or any part of the cash portion in shares of stock. A Director
          who elects to receive all or any part of the cash portion in shares of stock and
          defer receiving the shares under The Black &amp; Decker Corporation Deferred
          Compensation Plan for Non-Employee Directors shall be credited with shares
          having a Fair Market Value (as defined in The Black &amp; Decker Non-Employee
          Directors Stock Plan) equal to 120% of the amount of cash deferred. If a person
          is elected a Director other than at an annual meeting of stockholders, the
          compensation will be prorated as of the date when the Director was elected. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>c.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Expenses. </B>The Corporation will reimburse Directors for travel on behalf
          of the Corporation, including travel to attend meetings of the Board or Board
          committees, and travel-related expenses. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>d.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Insurance. </B>The Corporation provides $100,000 of term life insurance for
          each non-employee Director. The Corporation also provides $200,000 of accident
          insurance coverage during each day that a non-employee Director is traveling in
          connection with Corporate business. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>8.</B> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=97%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <B>Access to Management and Independent Advisors. </B>The Board and each
                    Director shall have direct access at all times to members of management and,
                    preferably through the Audit Committee, to the Corporation&#146;s independent
                    auditor. The Board may retain at the Corporation&#146;s expense such independent
                    consultants and advisors as it may choose. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>9.</B> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=97%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <B>Annual Performance Assessment. </B>Under the oversight of the Corporate
                    Governance Committee, the Board shall conduct annually a self-evaluation to
                    determine whether it and its committees are functioning effectively and take any
                    action that it deems appropriate to improve its ability to oversee and guide the
                    Corporation. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>10.</B> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=97%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <B>Communications from Stockholders.</B> In addition to the procedures provided
                    for any interested party to communicate with the Presiding Director (section
                    B.4.c) and the non-management Directors as a group (section B.5.d), stockholders
                    also may communicate with individual Directors or the whole Board by sending
                    communications, marked to show that they are stockholder communications, in care
                    of the Corporate Secretary. If addressed to individual Directors, the
                    communications will be forwarded, unopened, to those Directors, and if addressed
                    to the whole Board, will be forwarded, unopened, to the Chairman of the
                    Corporate Governance Committee for review and appropriate dissemination. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>



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<A NAME=A022></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>C. &nbsp;&nbsp;&nbsp;&nbsp;Charters of Standing
Committees. </FONT></H1>

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<A NAME=A023></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.
&nbsp;&nbsp;&nbsp;&nbsp;Executive Committee Charter.</B> </FONT></P>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>a.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Members. </B>The Executive Committee is composed of not less than five
          members elected annually by the Board of whom the Chairman shall be one. A
          majority of the members shall be independent Directors as defined in section
          B.1.b of this Statement. Normally, the chairman of each of the other standing
          committees will be elected a member of the Executive Committee. The Bylaws
          provide that in the absence of any member of the Executive Committee, the
          members who are present at any meeting, whether or not they constitute a quorum,
          may appoint a Director who is present to act in the place of the absent member. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>b.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Functions. </B>During the intervals between the meetings of the Board, the
          Executive Committee may exercise all of the powers of the Board in the
          management and direction of the affairs of the Corporation subject to (1)
          specific directions of the Board and (2) the Maryland General Corporation Law,
          which provides that such a committee may not (a) declare dividends or other
          distributions on stock, (b) issue stock other than pursuant to general authority
          granted by resolution of the Board, (c) recommend to the stockholders any action
          requiring stockholders&#146; approval, (d) amend the Bylaws, or (e) approve any
          merger or share exchange that does not require stockholder approval. The
          Executive Committee will also act in a general and advisory capacity to
          management. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>c.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Staff Support.</B> General Counsel; Corporate Secretary. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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<A NAME=A024></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.
&nbsp;&nbsp;&nbsp;&nbsp;Audit Committee Charter.</B> </FONT></P>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>a.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Members. </B>The Audit Committee is composed of not less than three members,
          appointed annually by the Board, each of whom (1) is an independent Director as
          defined in section B.1.b of this Statement, (2) meets the requirements of
          Section 303A(2) of the NYSE Listed Company Manual and Rule 10A-3(b)(1) of the
          SEC, (3) except fees for service as a Director or as a member of a committee of
          the Board, accepts no other consulting, advisory, or other compensatory fee from
          the Corporation, and (4) is not an affiliated person of the Corporation or any
          subsidiary of the Corporation. All members shall be able to read and understand
          fundamental financial statements, including the Corporation&#146;s balance
          sheet, income statement, and cash flow statement. In addition, at least one
          member shall qualify as an &#147;audit committee financial expert&#148; as
          defined by the SEC.<B> </B>A member may not serve simultaneously on the audit
          committee of more than three public companies unless the Board determines that
          the additional service will not impair the member&#146;s ability to serve
          effectively on the Corporation&#146;s Audit Committee and discloses the
          determination in the Corporation&#146;s annual meeting proxy statement. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>12</FONT></P>
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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>b.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Purpose. </B>The Audit Committee, among other things, assists the Board in
          overseeing the integrity of the Corporation&#146;s financial statements, the
          Corporation&#146;s compliance with legal and regulatory requirements, the
          independent auditor&#146;s qualifications and independence, and the performance
          of the Corporation&#146;s internal auditors and independent auditor. The
          Committee is directly responsible for the appointment, compensation,
          retention,<B> </B>and oversight of the work of the independent auditor, who
          shall report directly to the Committee. The Committee also prepares a report to
          be included in the Corporation&#146;s annual meeting proxy statement as required
          by the rules of the SEC. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>c.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Functions.</B> The Audit Committee will: </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Retain and terminate, on its sole authority, the Corporation&#146;s independent
          auditor and approve all audit engagements and the scope, fees, and terms of each
          engagement. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Approve in advance any non-audit engagements of the independent auditor
          permitted by Section 201 of the Sarbanes-Oxley Act of 2002 and assure that the
          approval is disclosed in the Corporation&#146;s periodic reports as required by
          law. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           At least annually, obtain and review a report by the independent auditor
          describing the auditor&#146;s internal quality-control procedures, any material
          issues raised by the most recent internal quality-control review or peer review
          of the auditor or by any inquiry or investigation by governmental or
          professional authorities within the preceding five years with respect to one or
          more independent audits carried out by the auditor, and any steps taken to deal
          with any such issues, and (to assess the auditor&#146;s independence)<B> </B>all
          relationships between the independent auditor and the Corporation. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Require the independent auditor to provide a written statement of all
          relationships between the auditors and the Corporation consistent with
          Independence Standards Board Standard No. 1. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Evaluate the independent auditor&#146;s qualifications, performance, and
          independence, including review and evaluation of the lead partner of the
          independent auditor, taking into account the opinions of management and the
          Corporation&#146;s internal auditors, and assure the rotation of the lead audit
          partner, the reviewing audit partner, and other audit personnel as required by
          law. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Receive and review reports of the independent auditor regarding critical
          accounting policies and practices to be used, all material alternative
          treatments of financial information within GAAP that have </FONT></TD>
          </TR>
          </TABLE>
          <BR>



<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>13</FONT></P>
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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>

been discussed with
          management, the ramifications of using the alternative disclosures and
          treatments and the treatment preferred by the independent auditor, and other
          material written communications between the independent auditor and management,
          including any management representation letter, report on observations and
          recommendations on internal controls, schedule of unadjusted differences, and a
          listing of adjustments and reclassifications not recorded. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Present to the Board the Audit Committee&#146;s conclusions with respect to the
          independent auditor. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(8) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Meet to review and discuss the Corporation&#146;s annual audited financial
          statements and quarterly financial statements, including reviewing the
          Corporation&#146;s specific disclosures under &#147;Management&#146;s Discussion
          and Analysis of Financial Condition and Results of Operations,&#148; with
          management and the independent auditor. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review and discuss with management the financial statements in the
          Corporation&#146;s Annual Report on Form 10-K, discuss with the independent
          auditor the matters required to be discussed by Statement on Auditing Standards
          No. 61, and based on the review and discussion, recommend to the Board that the
          audited financial statements be included in the Annual Report on Form 10-K. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(10) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Discuss earnings press releases and the general types of information to be
          provided to securities analysts and rating agencies. The discussion of earnings
          press releases may be conducted without a meeting of the Committee by the
          Chairman or the Chairman&#146;s designee and any available members. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(11) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Discuss policies with respect to risk assessment and risk management, including
          guidelines and policies that govern the process by which risk assessment and
          risk management is undertaken and the steps management has taken to monitor and
          control the exposures. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Periodically, meet separately with the CFO, the General Counsel, the
          Controller, the General Auditor, and the independent auditor. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(13) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review regularly with the independent auditor any audit problems or
          difficulties, including any restrictions on the scope of the independent
          auditor&#146;s activities or access to requested information, any significant
          disagreements with management and management&#146;s response. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(14) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Set clear hiring policies for employees and former employees of the independent
          auditor. </FONT></TD>
          </TR>
          </TABLE>
          <BR>


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          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Establish procedures for (a) receiving, retaining, and handling complaints
          received by the Corporation regarding accounting, internal accounting controls,
          or auditing matters, and (b) the confidential, anonymous submission by employees
          of the Corporation of concerns regarding questionable accounting or auditing
          matters. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(16) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Serve as a channel of communication between the Board and the independent
          auditor. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(17) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           At least annually, meet with the General Auditor to review the internal audit
          organization, the adequacy of resources committed to the function, the adequacy
          of the system of internal controls, procedures, and programs, the results of
          activities, and the responsibilities, budget, and staffing of the
          Corporation&#146;s internal audit function. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(18) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review significant accounting principles and financial statement presentations,
          including any material changes in the Corporation&#146;s selection or
          application of accounting principles. Review significant judgments made in
          connection with the preparation of the financial statements, including any
          material exposures and related reserves and any off-balance sheet structures. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(19) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Assess compliance of the Corporation&#146;s CEO, CFO and Controller with the
          Code of Ethics for Senior Financial Officers set out in Appendix 2 to this
          Statement, report material violations to the Board, and recommend to the Board
          appropriate action. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(20) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review the expenses of the executive officers. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(21) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Report the Audit Committee&#146;s charter, charter amendments, and activities
          in the Corporation&#146;s annual meeting proxy statement as required by the
          rules of the SEC. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(22) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review the certificates of the CEO and the CFO relating to the annual and
          quarterly reports and monitor the establishment, maintenance, and evaluation by
          the CEO and the CFO of the disclosure controls and procedures and internal
          control over financial reporting<B> </B>required by the SEC. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(23) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Quarterly, receive a report from the General Auditor regarding any transactions
          that are out of the ordinary course of business between Directors or executive
          officers and the Corporation. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(24) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Annually, adopt a schedule for discharge of the Committee&#146;s duties and
          responsibilities. </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>15</FONT></P>
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          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review compliance with the provisions of the Corporation&#146;s Code of Ethics
          and Standards of Conduct (Appendix 1) dealing with conflicts of interest,
          improper payments, and secret accounts. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(26) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           As appropriate and at the expense of the Corporation, retain and obtain advice
          and assistance from outside legal, accounting, or other advisors without seeking
          Board approval. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(27) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Annually, review and reassess the adequacy of the charter of the Audit
          Committee. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(28) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Annually, conduct an evaluation of the Audit Committee&#146;s performance. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(29) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Report regularly to the Board. </FONT></TD>
          </TR>
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          <BR>


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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>d.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Staff Support.</B> CFO; Controller; General Counsel; General Auditor. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



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<A NAME=A025></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.
&nbsp;&nbsp;&nbsp;&nbsp;Compensation Committee Charter</B> </FONT></P>

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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>a.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
          <TD WIDTH=88%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Members. </B>The Compensation Committee is composed of not less than three
          members appointed annually by the Board. All members shall be independent
          directors as defined in section B.1.b of this Statement. </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>b.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
          <TD WIDTH=88%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <B>Purpose.</B> The Compensation Committee, among other things, assists the
          Board in matters relating to executive compensation, establishes goals for the
          award of incentive or performance-based compensation, administers the
          Corporation&#146;s stock option and similar plans, and monitors the performance
          of the executive officers. </FONT></P></TD>
          </TR>
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          <BR>



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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>c.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Functions.</B></FONT></TD>
          </TR>
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          <BR>





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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Annually, review and approve goals and objectives relevant to compensation of
          the CEO, evaluate the CEO&#146;s performance in light of those goals and
          objectives, and recommend to the independent members of the Board the CEO&#146;s
          compensation level based on that evaluation. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           On a continuing basis, review the Corporation&#146;s organizational structure. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           On a continuing basis, maintain plans for succession in the officer ranks to
          cover losses both by normal attrition and by premature death, incapacity, or
          retirement. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review and recommend to the Board the election and removal of elected corporate
          officers. </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>16</FONT></P>
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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review annually the job objectives and job performance of the executive
          officers. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           In addition to (1) above,<B> </B>review and recommend to the Board salaries and
          benefits for the executive officers. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review and make recommendations to the Board with respect to incentive
          compensation plans and equity-based compensation plans. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(8) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Administer all short-term and long-term incentive compensation plans and all
          equity-based plans, including acting as the stock option committee under all of
          the Corporation&#146;s stock option plans. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Monitor compliance with the Corporation&#146;s policy regarding stock ownership
          by executives. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(10) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           If a compensation consultant is to assist in the evaluation of CEO or other
          senior executive compensation, retain and terminate the consulting firm and
          approve the firm&#146;s fees and other retention terms, all on the Compensation
          Committee&#146;s sole authority. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(11) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Produce a report on executive officer<B> </B>compensation for inclusion in the
          Corporation&#146;s annual meeting proxy statement in accordance with applicable
          rules and regulations. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(12) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Annually, conduct an evaluation of the Compensation Committee&#146;s
          performance. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(13) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Report all significant actions to the Board at the next regular Board meeting. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>d.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Staff Support.</B> Senior Vice President &#151; Human Resources; General Counsel. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



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<A NAME=A027></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.
&nbsp;&nbsp;&nbsp;&nbsp;Corporate Governance Committee Charter.</B> </FONT></P>

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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>a.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Members. </B>The Corporate Governance Committee is composed of not less than
          three members appointed annually by the Board. All members shall be independent
          directors as defined in section B.1.b of this Statement. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>b.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Purpose.</B> The Corporate Governance Committee, among other things,
          identifies individuals qualified to become Directors, recommends to the Board a
          slate of Director-nominees for the next annual meeting of stockholders,
          recommends members of the standing committees, and develops and recommends to
          the Board corporate governance principles. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>17</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>
<DIV STYLE="page-break-after:always"></DIV>


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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>c.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Functions.</B> </FONT></TD>
          </TR>
          </TABLE>
          <BR>


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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Develop and recommend to the Board a set of corporate governance principles to
          be set forth in this Statement, review this Statement on a continuing basis, and
          recommend to the Board appropriate changes in this Statement. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Propose to the Board at its December meeting a slate of Directors for
          submission to the stockholders at their annual meeting. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Monitor Directors for independence as defined in section B.1.b. of this
          Statement and report to the Board at its February meeting any relationships that
          require a determination by the Board of materiality for reporting purposes. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Handle problems regarding Directors who because of physical or mental condition
          or for other reasons become unfit to serve. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review and recommend to the Board any appropriate changes in the
          Corporation&#146;s criteria for selecting new directors. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Consistent with the Qualifications and Standards stated in section B.2.a,
          recommend candidates for election to the Board to fill vacancies and participate
          in interviewing prospective candidates. The Committee shall have sole authority
          to retain, terminate, and approve the compensation of search firms to assist it
          in performing this function. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review for compliance with Section 3 of Article II of the Bylaws the
          nominations of director candidates made by stockholders and determine the
          eligibility of each proposed nominee. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(8) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Nominate annually members of the standing committees for presentation to the
          Board at its annual meeting and, on a continuing basis, recommend changes as
          appropriate. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Annually, review the Corporation&#146;s Code of Ethics and Standards of Conduct
          and compliance with the Code. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(10) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review and recommend changes in compensation and benefits for service on the
          Board and committees of the Board. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(11) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Monitor compliance with the Corporation&#146;s policy regarding stock ownership
          by Directors. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(12) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Oversee the annual self-evaluation of the Board and the evaluation of
          management. </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>18</FONT></P>
<HR SIZE=5 COLOR=GRAY NOSHADE>
<DIV STYLE="page-break-after:always"></DIV>


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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(13) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Conduct an annual evaluation of the Corporate Governance Committee&#146;s
          performance. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(14) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Report all significant actions to the Board at the next regular Board meeting. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>d.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Staff Support.</B> General Counsel; Corporate Secretary. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



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<A NAME=A029></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.
&nbsp;&nbsp;&nbsp;&nbsp;Finance Committee Charter.</B> </FONT></P>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>a.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Members. </B>The Finance Committee is composed of not less than three
          members, appointed annually by the Board. A majority of the members shall be
          independent Directors as defined in section B.1.b of this Statement. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>b.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Purpose.</B> The Finance Committee, among other things, monitors generally
          the financial performance of the Corporation, recommends dividends, reviews and
          recommends offerings of the Corporation&#146;s securities, and reviews the
          Corporation&#146;s investments. </FONT></TD>
          </TR>
          </TABLE>
          <BR>


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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>c.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Functions.</B></FONT></TD>
          </TR>
          </TABLE>
          <BR>




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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review the Corporation&#146;s financial policies and procedures. </FONT></TD>
          </TR>
          </TABLE>
          <BR>





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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review operating and financial results. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Give financial advice to management. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Consider and make recommendations to the Board regarding corporate financing
          and the issuance and sale of the Corporation&#146;s securities. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review annual operating budgets and review and recommend to the Board annual
          capital expenditure budgets and charitable contributions budgets. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review purchases of fixed assets (including capital leases) and sales of fixed
          assets (including land and buildings) and act upon them in accordance with the
          Board&#146;s standing resolution on Approval of Financial Transactions. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Consider and make recommendations to the Board on dividends. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(8) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review and act upon borrowings and prepayment of borrowings in accordance with
          the Board&#146;s standing resolution on Approval of Financial Transactions. </FONT></TD>
          </TR>
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          <BR>


<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>19</FONT></P>
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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Review mergers, acquisitions, divestitures, and similar transactions in
          accordance with the Board&#146;s standing resolution on Approval of Financial
          Transactions. </FONT></TD>
          </TR>
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          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(10) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Annually review and ratify all investments (defined as total assets less
          inter-company accounts receivable and non-guaranteed third party accounts
          payable) in &#147;high risk&#148; countries, and review and recommend to the
          Board investments in &#147;high risk&#148; countries in accordance with the
          Board&#146;s standing resolution on Approval of Financial Transactions. </FONT></TD>
          </TR>
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          <BR>

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          <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(11) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Oversee generally the provisions of and operations of the various pension plans
          and similar benefit programs and operating pension committees of the Corporation
          and its subsidiaries. Specifically: </FONT></TD>
          </TR>
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          <BR>

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          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Periodically review the investment policies and management of major pension
          funds. </FONT></TD>
          </TR>
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          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Annually, review funding levels of non-insured defined benefit plans. </FONT></TD>
          </TR>
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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>d.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Staff Support. </B>CFO; Treasurer.</FONT></TD>
          </TR>
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          <BR>



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<A NAME=A031></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>D. &nbsp;&nbsp;&nbsp;&nbsp;Officers. </FONT></H1>

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                    <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>1.</B> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=97%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <B>Evaluation of the CEO. </B>With the advice of the Compensation Committee,
                    the Board will conduct annually, in executive session, a formal evaluation of
                    the CEO. The review will be based on the accomplishment of goals and objectives
                    established by the Compensation Committee. The evaluation will be communicated
                    to the CEO by the Chairman of the Compensation Committee. </FONT></TD>
                    </TR>
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                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>2.</B> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=97%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <B>Management Development and Succession Planning.</B> With the advice of the
                    Compensation Committee, the Board will review annually the Corporation&#146;s
                    plans for management development and succession planning for key executive
                    positions. </FONT></TD>
                    </TR>
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                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>3.</B> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=97%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <B>Communications with Media and Others.</B> The CEO is responsible for all
                    communications with the media, the financial community, and similar external
                    entities pertaining to the affairs of the Corporation. Directors should refer
                    all inquiries from such entities to the CEO. </FONT></TD>
                    </TR>
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                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>4.</B> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=97%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <B>Stock Ownership by Executives.</B> </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>a.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Policy. </B>The Corporation encourages stock ownership by its principal
          elected corporate officers to more closely align their interests with those of
          the Corporation&#146;s stockholders. </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>20</FONT></P>
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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>b.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Goal.</B> Each of the following officers is expected to own stock of the
          Corporation having a market value equal to the multiple of his or her annual
          salary as follows: </FONT></TD>
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               <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=85%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               CEO: 5</FONT></P></TD>
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               <BR>




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               <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=85%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Executive, Senior, and Group Vice Presidents: 3 </FONT></P></TD>
               </TR>
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               <BR>

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               <TD ALIGN=RIGHT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=85%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Vice Presidents: 2 </FONT></P></TD>
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               <BR>

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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>c.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           <B>Intermediate Goal.</B> Until the applicable goal is achieved, each officer
          is expected to retain 50% of the &#147;net shares&#148; received under the
          Corporation&#146;s stock-based compensation plans. &#147;Net shares&#148; are
          the shares remaining after deducting shares for the payment of taxes and the
          exercise price of stock options. </FONT></TD>
          </TR>
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          <BR>



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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>d.</B> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=91%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
         <B>Exception.</B> This policy does not apply to officers who have attained 60
          years of age.</FONT></TD>
          </TR>
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          <BR>



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<A NAME=A032></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>E.&nbsp;&nbsp;&nbsp;&nbsp; Business Practices. </FONT></H1>

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                    <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>1.</B> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=97%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <B>Code of Ethics and Standards of Conduct.</B> The Board has adopted a Code of
                    Ethics and Standards of Conduct, a copy of which, as amended from time to time,
                    is attached as Appendix 1. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>2.</B> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=97%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

                     <B>Code of Ethics for Senior Financial Officers.</B> The Board has adopted a
                    Code of Ethics for Senior Financial Officers, a copy of which, as amended from
                    time to time, is attached as Appendix 2. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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<A NAME=A033></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Adopted by the Board of
Directors February 13, 2003<BR>Amended February 12, 2004. <BR>Amended October 21, 2004.<BR>Amended December 9, 2004.<BR>Amended February 10, 2005.<BR>Amended April 20, 2006. </FONT></H1>


<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN" SIZE=2>21</FONT></P>
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