MIDDLEBY CORP
EXHIBIT 10-3 - EMPLOYMENT AGREEMENT
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>4
<FILENAME>chi491523.txt
<DESCRIPTION>EXHIBIT 10-3 - EMPLOYMENT AGREEMENT
<TEXT>

                                                                  Exhibit 10.3
                                                                  ------------



                             EMPLOYMENT AGREEMENT


         THIS EMPLOYMENT AGREEMENT (this "Agreement") dated as of December 23,
2004 is entered into by and between The Middleby Corporation, a Delaware
corporation (the "Company"), Middleby Marshall Inc., a Delaware corporation
("MMI"), (collectively the "Employer"), and Selim A. Bassoul ("Employee").

                                R E C I T A L:


         The Employer is a party to an employment agreement with Employee
dated May 16, 2002, as amended July 3, 2003, December 15, 2003, and May 27,
2004 (the "Prior Agreement").

         The Employer desires to continue and extend the term of employment of
Employee as President and Chief Executive Officer of the Company and as
President and Chief Executive Officer of MMI and to have Employee serve as the
Chairman of the Board of Directors of the Company, and Employee desires to
serve the Employer in such capacities, all on the terms and conditions
hereinafter provided.

         NOW, THEREFORE, in consideration of the mutual covenants contained in
this Agreement, Employee's employment by the Employer, the compensation to be
paid Employee while employed by the Employer, and other good and valuable
consideration, the receipt and sufficiency of which is acknowledged, the
parties agree as follows:

1.       Employment. The Employer agrees to employ Employee and Employee
         agrees to be employed by the Employer subject to the terms and
         provisions of the Agreement.

2.       Term. The employment of Employee by Employer as provided in Section 1
         will be for a period commencing on the date of this Agreement (the
         "Effective Date") and ending on March 1, 2012, unless sooner
         terminated as hereinafter provided.

3.       Duties. Employee shall serve as President and Chief Executive Officer
         of the Company and as President and Chief Executive Officer of MMI,
         or in such other executive capacities as the Board of Directors of
         the Company or MMI, as applicable, may designate and shall have such
         powers and duties as may be from time to time prescribed by the Board
         of Directors of the Company or MMI, as applicable. Throughout the
         term of this Agreement, the Employer shall take all action necessary
         so that Employee shall serve as the Chairman of the Board of
         Directors of the Company. Employee shall devote substantially all of
         his time and effort as reasonably may be required for him to perform
         the duties and responsibilities to be performed by him under the
         terms of this Agreement.

4.       Compensation.

         (a)      Base Salary. The Employer shall pay to Employee a base
                  salary at a rate per annum of $770,000, payable in
                  accordance with the normal payroll practices of Employer.

         (b)      Incentive Compensation. Employee shall be eligible to
                  participate in the Management Incentive Plan previously
                  adopted by the Employer, subject to all terms and conditions
                  thereof. Under such plan, if the Employer attains certain
                  pre-established performance goals (attainment of such goals
                  to be determined after taking into account any incentive
                  compensation to be paid to Employee and any other
                  participating employees under the Plan), Employee shall be
                  entitled to receive (i) 100% of his Base Salary as in effect
                  at the beginning of the fiscal year to which the award
                  relates, and (ii) for each year, an additional $35,000 for
                  each $120,000 by which the Employer's actual EBITDA exceeds
                  the goal. The performance goals, which are based on the
                  Employer's EBITDA, are set forth on Exhibit A hereto. The
                  maximum bonus payable to Employee under the Management
                  Incentive Plan shall be $3,500,000 and the Employer will
                  modify the Management Incentive Plan accordingly, subject to
                  the approval of the shareholders of the Company.
                  Notwithstanding the foregoing, the Employee's participation
                  in the Management Incentive Plan with respect to fiscal year
                  2004 shall be governed by the terms of the Prior Agreement.

         (c)      Expense Reimbursement. Employer shall reimburse Employee for
                  those reasonable legal and consulting expenses incurred by
                  him for personal financial, tax and estate planning
                  purposes.

         (d)      Restricted Stock Grant. The Company shall cause Employee to
                  be granted an aggregate of 300,000 shares of restricted
                  stock of the Company pursuant to the 1998 Stock Incentive
                  Plan (the "Restricted Stock"), to be allocated as provided
                  below, provided that such shares are available for grant
                  under the 1998 Stock Incentive Plan. The Company shall cause
                  Employee to be granted (i) 100,000 shares of the Restricted
                  Stock in December of 2004 (or as many of such shares as are
                  available to grant under the 1998 Stock Incentive Plan at
                  such time), (ii) 100,000 shares of the Restricted stock in
                  January of 2005 and (iii) any deficiency in the number of
                  shares required to bring the total grant to 300,000 shares
                  of the Restricted Stock (or as many of such shares as are
                  available to grant under the 1998 Stock Incentive Plan) on
                  the earlier to occur of (1) the date following the next
                  meeting of the shareholders of the Company after the
                  Effective Date at which the shareholders approve an
                  amendment to the 1998 Stock Incentive Plan increasing the
                  annual grant limit under such plan or (2) January of 2006,
                  with any deficiency to be made up as soon as possible
                  pursuant to the terms of the 1998 Stock Incentive Plan. The
                  Employer shall take all action necessary to ensure that the
                  grant of Restricted Stock contemplated by clause (iii) above
                  is permitted under the 1998 Stock Incentive Plan on the date
                  immediately following the date of the next meeting of the
                  shareholders of the Company after the Effective Date,
                  subject to the approval of such shareholders. The Restricted
                  Stock shall be subject to such terms and conditions as are
                  set forth in this Agreement and the other terms and
                  conditions of the 1998 Stock Incentive Plan. Until it shall
                  become vested in accordance with the provisions of this
                  Agreement, the Restricted Stock shall be forfeitable and
                  non-transferable. The Restricted Stock shall vest as
                  follows: 60,000 shares of the Restricted Stock that are not
                  yet vested shall vest on December 31, 2005; 60,000 shares of
                  the Restricted Stock that are not yet vested shall vest on
                  December 31, 2006; 60,000 shares of the Restricted Stock
                  that are not yet vested shall vest on December 31, 2007;
                  60,000 shares of the Restricted Stock that are not yet
                  vested shall vest on December 31, 2008; 60,000 shares of the
                  Restricted Stock that are not yet vested shall vest on
                  December 31, 2009, in each case subject to the continued
                  employment of Employee on such date. Notwithstanding
                  anything contained to the contrary herein, if Employee's
                  employment is terminated by Employer for reasons other than
                  "Cause" (as defined in Section 5 below) or Employee
                  terminates his employment under this Agreement under the
                  circumstances described in Section 5(g) or Employee
                  terminates his employment under this Agreement within the
                  six-month period immediately following a "Change in Control"
                  (as defined below), by providing written notice of such
                  termination to the Employer, all Restricted Stock previously
                  granted to Employee shall immediately vest. Notwithstanding
                  anything contained to the contrary herein, in the event that
                  any portion of the Restricted Stock has not been granted to
                  Employee at the time that Employee's employment is
                  terminated by Employer for reasons other than Cause or
                  Employee terminates his employment under this Agreement
                  under the circumstances described in Section 5(g) or
                  Employee terminates his employment under this Agreement
                  within the six-month period immediately following a Change
                  in Control, Employee shall retain the right hereunder to
                  receive an economically equivalent arrangement, such
                  arrangement to be reasonably agreed upon between Employer
                  and Employee. Employee shall be entitled to vote all shares
                  granted to him pursuant to this Restricted Stock Grant,
                  irrespective of whether they are vested or not.
                  Notwithstanding anything contained to the contrary herein,
                  any options granted to Employee pursuant to any agreement
                  between the Employer and Employee shall immediately vest if
                  Employee terminates his employment under this Agreement
                  within the six-month period immediately following a "Change
                  in Control" (as defined below), by providing written notice
                  of such termination to the Employer.

         (e)      Automobile. Employer shall lease Employee an automobile of
                  his choice and Employer shall pay all applicable taxes,
                  insurance, fees and expenses associated therewith. Employee
                  shall be entitled to a new leased automobile every two (2)
                  years.

5.       Termination.

         (a)      Employee's employment hereunder may be terminated by
                  Employer or by Employee at any time, or by the death of
                  Employee. Such termination shall automatically terminate all
                  of the Employer's obligations not theretofore accrued under
                  this Agreement other than as specifically set forth in this
                  Agreement or in any employee benefit plan, program or
                  arrangement in which Employee participates. If the Employer
                  terminates Employee's employment under this Agreement (as
                  hereafter amended or extended) without "Cause," as defined
                  below, or if employment is terminated due to Employee's
                  death or disability, incentive compensation under the
                  Management Incentive Plan for any year shall be deemed to
                  have accrued as of the date of termination if and to the
                  extent that incentive compensation under the Management
                  Incentive Plan would have been payable to Employee if he had
                  been employed on the last day of such fiscal year and shall
                  be (i) pro rated based on the number of days that Employee
                  was employed during the fiscal year and (ii) payable in the
                  following fiscal year, on the earlier of April 1 or at the
                  same time as incentive compensation under the Management
                  Incentive Plan for such year is paid to those employees who
                  are still employed by the Employer.

         (b)      Notwithstanding anything to the contrary contained in this
                  Agreement, in the event that (i) the Employer terminates
                  Employee's employment under this Agreement (as hereafter
                  amended or extended) without "Cause," as defined below, (for
                  this purpose, not including termination due to Employee's
                  death or disability) or (ii) Employee terminates his
                  employment under this Agreement within the six-month period
                  immediately following a "Change in Control" (as defined
                  below), by providing written notice of such termination to
                  the Employer, Employee shall be entitled to an amount equal
                  to three (3) times the sum of (A) Employee's annual base
                  salary for the full calendar year immediately prior to the
                  date of the termination and (B) the greater of (x) the
                  amount of Employee's incentive compensation under the
                  Management Incentive Plan with respect to the full calendar
                  year immediately prior to the date of the termination and
                  (y) the average of Employee's incentive compensation under
                  the Management Incentive Plan for each of the three calendar
                  years immediately prior to the date of the termination,
                  payable in one lump sum within thirty (30) days of the date
                  of termination.

         (c)      Notwithstanding anything to the contrary contained in this
                  Agreement, in the event that Employee's employment with
                  Employer terminates for any reason other than a termination
                  for Cause, then, in any such event Employee shall be
                  entitled to continued participation by Employee and any
                  dependents who were participating immediately prior to
                  Employee's termination of employment, in all health and
                  medical plans and programs which the Employer maintains,
                  from time to time, for its senior executives and their
                  families, under the same terms and conditions, including
                  payment of any required employee contributions therefor, as
                  may generally apply (including any limitation or termination
                  of coverage of non-spouse dependents after a stated age),
                  until the later of the death of Employee or Employee's
                  surviving spouse to whom he was married at the time of
                  termination of employment, provided that such participation
                  in the Employer plans and programs is permitted under the
                  provisions of such Employer plans and programs, and
                  provided, further, that at such time as Employee, or any
                  covered dependent of Employee, becomes eligible for health
                  or medical benefits under Title XVIII of the Social Security
                  Act (Medicare) or any governmental program in replacement
                  thereof, such health or medical benefits shall automatically
                  become the primary coverage for such person(s) and the
                  coverage provided hereunder shall be secondary to such other
                  coverage, to the maximum extent permitted under applicable
                  law. If, while eligible for benefits under this Subsection
                  5(c), Employee becomes employed by any person and becomes
                  eligible for health and medical benefits under such
                  employer's health plan, the Employer shall be relieved,
                  during the period of such employment and to the extent of
                  the benefits for which Employee and his dependents are
                  eligible under such employer's plan, of the obligation to
                  provide the health and medical benefits described in this
                  Subsection 5(c). In the event that participation in any such
                  Employer plan or program is barred or otherwise not
                  permitted, the Employer shall provide substantially similar
                  health and medical benefits to Employee and any eligible
                  dependents, in which case the Employer may self-fund such
                  benefits or may purchase individual policies or plans to
                  provide such benefits, in its sole discretion.

         (d)      For purposes of this Section 5, the term "Cause" shall mean
                  gross negligence, willful misconduct, breach of fiduciary
                  duty involving personal profit, substance abuse, or
                  commission of a felony.

         (e)      For purposes of this Agreement, the term "Change in Control"
                  shall mean an increase, on or after the date of this
                  Agreement, in ownership to twenty percent (20%) or more of
                  the outstanding voting securities of the Company held by any
                  person or group of persons who are acting together for the
                  purpose of acquiring, holding, voting or disposing of such
                  voting securities; provided, however, that an increase in
                  ownership to twenty (20%) or more of the outstanding voting
                  securities of the Company held by Employee or group of
                  persons which includes Employee who are acting together for
                  the purpose of acquiring, holding, voting or disposing of
                  such voting securities shall not constitute a Change in
                  Control.

                  Example 1: On April 16, 2004 individual A owns 2.42% of the
                  total outstanding voting securities of Company. Thereafter,
                  individual A commences a series of open market and private
                  purchases, and on January 10, 2005 for the first time his
                  holdings exceed 20% of the outstanding voting securities of
                  the Company. A Change of Control occurs on January 10, 2005.

                  Example 2: On a date subsequent to this Agreement individual
                  B, who owned no voting securities of Company prior to the
                  date of this Agreement, commences a series of open market
                  and private purchases, and on January 11, 2005 for the first
                  time his holdings exceed 20% of the outstanding voting
                  securities of the Company. A Change of Control occurs on
                  January 11, 2005.

         (f)      Parachute Payments

                  (i)      To the extent that any amount payable to Employee
                           (hereunder or otherwise) alone or together with
                           other compensation constitutes a "parachute
                           payment" within the meaning of section 280G(b)(2)
                           of the Internal Revenue Code of 1986, as amended,
                           (the "Code") that would result in some or all of
                           the compensation owed being characterized as
                           "excess parachute payments" (as defined by section
                           280G(b)(1) of the Code), and would, therefore, be
                           subject to an excise tax under section 4999 of the
                           Code (the "Excise Tax"), the Employer shall pay to
                           Employee, at the time specified below, that
                           additional amount (the "Gross-Up Payment")
                           necessary to reimburse Employee for the amount of
                           any (i) Excise Tax, (ii) federal, state and local
                           income and employment taxes (including additional
                           Excise Tax) payable with respect to the Gross-Up
                           Payment, and (iii) interest, penalties or additions
                           to tax payable by Employee with respect to the
                           Excise Tax or the Gross-Up Payment. For purposes of
                           determining the amount of the Gross-Up Payment,
                           Employee shall be deemed to pay federal income
                           taxes at the highest marginal rates of taxation
                           applicable to individuals as are in effect in the
                           calendar year in which the Gross-Up Payment is to
                           be made and state and local income taxes at the
                           highest marginal rates of taxation applicable to
                           individuals as are in effect in the state and
                           locality of Employee's residence, and/or any other
                           state or locality that may be applicable, in the
                           calendar year in which the Gross-Up Payment is to
                           be made, net of the maximum reduction in federal
                           income taxes that can be obtained from deduction of
                           such state and local taxes, taking into account any
                           limitations applicable to individuals subject to
                           federal income tax at the highest marginal rates.

                  (ii)     The Gross-Up Payments provided for in Section
                           5(f)(i) above shall be made upon the earlier of (i)
                           the payment to Employee of compensation in the
                           nature of a parachute payment or (ii) the
                           imposition upon Employee or payment by Employee of
                           any Excise Tax.

                  (iii)    If it is established pursuant to a final
                           determination of a court or an Internal Revenue
                           Service proceeding that the Excise Tax is less than
                           the amount taken into account under Section 5(f)(i)
                           above, Employee shall repay to the Employer within
                           thirty (30) days of Employee's receipt of notice of
                           such final determination the portion of the
                           Gross-Up Payment attributable to such reduction
                           (plus the portion of the Gross-Up Payment
                           attributable to the Excise Tax and federal, state
                           and local income and employment taxes imposed on
                           the Gross-Up Payment being repaid by Employee, if
                           such repayment results in a reduction in Excise Tax
                           or a federal, state and local income tax
                           deduction). If it is established pursuant to a
                           final determination of a court or an Internal
                           Revenue Service proceeding that the Excise Tax
                           exceeds the amount taken into account under Section
                           5(f)(i) above (including by reason of any payment
                           the existence or amount of which cannot be
                           determined at the time of the Gross-Up Payment),
                           the Employer shall make any additional Gross-Up
                           Payment in respect of such excess within thirty
                           (30) days of the Employer's receipt of notice of
                           such final determination.

                  (iv)     Notwithstanding anything contained herein or in the
                           Management Incentive Plan to the contrary, the
                           amount of any payments made pursuant to this
                           Section 5(f) shall be excluded from the calculation
                           of EBITDA under the Management Incentive Plan for
                           purposes of determining bonuses thereunder.

         (g)      If the duties assigned by Employer to Employee are
                  materially diminished, or become inconsistent with those
                  assigned to a Chairman of the Board, Chief Executive Officer
                  and President of a similarly situated company, or if
                  Employee's title is changed and such change in duties or
                  title is not cured by the Employer within ten (10) days
                  following receipt by the Board of written notice from the
                  Employee, such change in duties or title shall be deemed a
                  termination by Employer of Employee's employment without
                  Cause, pursuant to the terms of this Agreement, and Employee
                  shall be entitled to resign his employment hereunder and to
                  thereafter receive all rights, benefits and payments set
                  forth in Sections 5(a), (b) and (c) as well as the
                  accelerated vesting of the Restricted Stock set forth in
                  Section 4(d).

6.       Retirement. Employee shall be eligible to participate in the
         tax-qualified retirement plans maintained from time to time by
         Employer for the benefit of its employees, including executives and
         key management employees (the "Qualified Plans"). In addition,
         subject to the provisions hereof, Employer shall provide Employee
         with a supplemental retirement benefit as described below. Exhibit B
         hereto illustrates the monthly supplemental retirement benefit that
         would become payable to Employee in accordance with the provisions of
         Sections 6(a), (b) and (c) below based on the retirement of Employee
         on or after the attainment of age 55.

         (a)      Retirement Benefits. Upon Employee's retirement on or after
                  the date on which he attains the age of 55 (the "Early
                  Retirement Date"), but in no event prior thereto, Employee
                  shall be fully vested in a monthly retirement benefit equal
                  to one-twelfth of 50% of Employee's then current base
                  salary, payable for the remainder of his life. Such benefit
                  shall hereinafter be referred to as the "Age 55 Retirement
                  Benefit". Upon Employee's retirement on or after the date on
                  which he attains the age of 60 (the "Normal Retirement
                  Date"), Employee shall be fully vested in a monthly
                  retirement benefit equal to one-twelfth of 62.5% of
                  Employee's then current base salary, in lieu of the Age 55
                  Retirement Benefit, payable for the remainder of his life.
                  Such benefit shall hereinafter be referred to as the "Age 60
                  Retirement Benefit". Upon Employee's retirement on or after
                  the date on which he attains the age of 65 (the "Deferred
                  Retirement Date"), Employee shall be fully vested in a
                  monthly retirement benefit equal to one-twelfth of 75% of
                  Employee's then current base salary, in lieu of the Age 60
                  Retirement Benefit, payable for the remainder of his life.
                  Such benefit shall hereinafter be referred to as the "Age 65
                  Retirement Benefit".

         (b)      Retirement After the Early Retirement Date But Prior to the
                  Normal Retirement Date. Notwithstanding the foregoing, in
                  the event that Employee retires from employment after the
                  Early Retirement Date but prior to the Normal Retirement
                  Date, in addition to the Age 55 Retirement Benefit, Employee
                  shall become vested in an additional amount equal to the
                  difference between the Age 55 Retirement Benefit and the Age
                  60 Retirement Benefit multiplied by a fraction, the
                  denominator of which is the number of full months between
                  the date on which Employee would attain the age of 55 and
                  the date on which Employee would attain the age of 60, and
                  the numerator of which is the number of full months worked
                  by Employee on and after the date Employee attains age 55
                  through the date of termination.

         (c)      Retirement After the Normal Retirement Date But Prior to the
                  Deferred Retirement Date. Notwithstanding the foregoing, in
                  the event that Employee retires from employment after the
                  Normal Retirement Date but prior to the Deferred Retirement
                  Date, in addition to the Age 60 Retirement Benefit, Employee
                  shall become vested in an additional amount equal to the
                  difference between the Age 60 Retirement Benefit and the Age
                  65 Retirement Benefit multiplied by a fraction, the
                  denominator of which is the number of full months between
                  the date on which Employee would attain the age of 60 and
                  the date on which Employee would attain the age of 65, and
                  the numerator of which is the number of full months worked
                  by Employee on and after the date Employee attains age 60
                  through the date of termination.

         (d)      Time of Payment of Retirement Benefit; Offset for Certain
                  Qualified Plan Benefits. The amount of the supplemental
                  retirement benefit payable under this Section 6 shall be
                  offset by the amount of any accrued benefits or vested
                  account balance Employee may have under the Qualified Plans,
                  other than any portion thereof attributable to Employee's
                  elective deferrals (e.g., 401(k) contributions by Employee).
                  Upon Employee's retirement on or after the Early Retirement
                  Date, subject to the provisions of Section 6(g), Employer
                  shall commence payment of the monthly supplemental
                  retirement benefit, as applicable, as of the end of the
                  month in which such retirement occurs, and shall make each
                  monthly payment at the end of each month thereafter.
                  Notwithstanding the foregoing, in no event shall benefits be
                  payable hereunder while Employee is an active participant in
                  the Qualified Plans.

         (e)      Effect of Certain Terminations. Exhibit C hereto illustrates
                  the monthly supplemental retirement benefit that would
                  become payable to Employee in accordance with the provisions
                  of this Section 6(e) in the event that Employee's employment
                  with Employer terminates under any of the following
                  circumstances: (1) by reason of his death or disability; (2)
                  Employee's employment is terminated by Employer without
                  Cause; (3) Employee terminates employment under the
                  circumstances described in Section 5(g) hereof; or (4)
                  Employee terminates his employment under this Agreement
                  within the six-month period immediately following a Change
                  in Control by providing written notice of such termination
                  to Employer (any such event shall hereinafter be referred to
                  as a "Qualifying Termination").

                  (i)      If, prior to the Early Retirement Date, Employee's
                           employment with Employer terminates due to a
                           Qualifying Termination, Employee shall become
                           vested in a pro rata portion of the Age 55
                           Retirement Benefit, calculated by multiplying the
                           Age 55 Retirement Benefit by a fraction, the
                           denominator of which is the number of full months
                           from the Effective Date until the date on which
                           Employee would attain the age of 55 and the
                           numerator of which is the number of full months
                           worked on and after the Effective Date through the
                           date of termination. Except as provided by
                           subparagraph (vi) below, the payment of such pro
                           rata portion of the Age 55 Retirement Benefit shall
                           commence as of the end of the month in which
                           Employee's Early Retirement Date occurs (or would
                           have occurred, in the case of Employee's death).

                  (ii)     If, after the Early Retirement Date but prior to
                           the Normal Retirement Date, Employee's employment
                           with Employer terminates due to a Qualifying
                           Termination, Employee shall become vested in an
                           additional amount equal to the difference between
                           the Age 55 Retirement Benefit and the Age 60
                           Retirement Benefit multiplied by a fraction, the
                           denominator of which is the number of full months
                           between the date on which Employee would attain the
                           age of 55 and the date on which Employee would
                           attain the age of 60, and the numerator of which is
                           the number of full months worked by Employee on and
                           after the date Employee attains age 55 through the
                           date of termination. Except as provided by
                           subparagraph (vi) below and subject to Section
                           6(g), the payment of the supplemental retirement
                           benefit calculated pursuant to this Section
                           6(e)(ii) shall commence as of the end of the month
                           following the month in which the Qualifying
                           Termination occurs.

                  (iii)    If, after the Normal Retirement Date but prior to
                           the Deferred Retirement Date, Employee's employment
                           with Employer terminates due to a Qualifying
                           Termination, Employee shall become vested in an
                           additional amount equal to the difference between
                           the Age 60 Retirement Benefit and the Age 65
                           Retirement Benefit multiplied by a fraction, the
                           denominator of which is the number of full months
                           between the date on which Employee would attain the
                           age of 60 and the date on which Employee would
                           attain the age of 65, and the numerator of which is
                           the number of full months worked by Employee on and
                           after the date Employee attains age 60 through the
                           date of termination. Except as provided by
                           subparagraph (vi) below and subject to Section
                           6(g), the payment of the supplemental retirement
                           benefit calculated pursuant to this Section
                           6(e)(iii) shall commence as of the end of the month
                           following the month in which the Qualifying
                           Termination occurs.

                  (iv)     If, after the Deferred Retirement Date, Employee's
                           employment with Employer terminates due to a
                           Qualifying Termination, Employee shall become
                           vested in the Age 65 Retirement Benefit and no
                           additional supplemental retirement benefits shall
                           accrue hereunder. Except as provided by
                           subparagraph (vi) below and subject to Section
                           6(g), the payment of the Age 65 Retirement Benefit
                           shall commence as of the end of the month following
                           the month in which the Qualifying Termination
                           occurs.

                  (v)      If at any time Employee's employment hereunder is
                           terminated for Cause, Employee shall not be
                           entitled to any supplemental retirement benefit
                           under this Section 6, and any vested amount of the
                           Age 55 Retirement Benefit, the Age 60 Retirement
                           Benefit and the Age 65 Retirement Benefit, as the
                           case may be, shall be forfeited by Employee.

                  (vi)     In the event of Employee's death, either prior to
                           or after the commencement of payments pursuant to
                           this Section 6 (but prior to Employee attaining the
                           age of 75 years), the applicable supplemental
                           retirement benefits shall be paid (or shall
                           continue to be paid, if already in pay status) to
                           such beneficiary as Employee shall designate in
                           writing (or in the absence of such designation, to
                           his estate). Employee's designated beneficiary
                           shall be permitted to elect in writing to receive
                           either (1) a lump sum cash payment equal to the
                           present value of Employee's supplemental retirement
                           benefit determined under subparagraphs (a), (b) or
                           (c) or (e)(i), (ii), (iii) or (iv) above, as
                           applicable, as reasonably determined by the
                           Employer, payable on the first day of the month
                           following Employee's death, or (2) the monthly
                           supplemental retirement benefit determined under
                           subparagraphs (a), (b) or (c) or (e)(i), (ii),
                           (iii) or (iv) above, as applicable, (or the
                           continuation of the monthly supplemental retirement
                           benefit, as the case may be) commencing on the
                           first day of the month following Employee's death,
                           but in no event earlier than the end of the month
                           in which Employee's Early Retirement Date would
                           have occurred if Employee had lived, and continuing
                           until the date on which Employee would have
                           attained the age of 75.

         (f)      Title to and beneficial ownership of any assets, whether
                  cash or investments which Employer may set aside or earmark
                  to meet its obligations hereunder, shall at all times remain
                  with Employer and neither Employee nor any beneficiary shall
                  under any circumstances acquire any property interest in any
                  specific assets of Employer. Nothing contained in this
                  Agreement shall create or be construed to create a trust of
                  any kind, or a fiduciary relationship between Employer and
                  Employee or any other person. To the extent that Employee is
                  entitled to receive payments from Employer hereunder, such
                  right shall be no greater than that of an unsecured general
                  creditor of Employer.

         (g)      This Section 6 is intended to comply with the provisions of
                  Section 409A of the Code and shall be construed in
                  accordance therewith. Notwithstanding anything to the
                  contrary contained herein, if Employee is a Specified
                  Employee (as defined in Section 409A of the Code) at the
                  time he would otherwise be entitled to receive any payment
                  hereunder, no distributions shall be made hereunder until
                  the earliest date permitted by Section 409A(a)(2) of the
                  Code.

7.       Payment. Payment of all compensation and benefits to Employee
         hereunder shall be made in accordance with the relevant policies of
         the Employer in effect from time to time and shall be subject to all
         applicable employment and withholding taxes.

8.       Successors. This Agreement shall be binding upon, and inure to the
         benefit of and be enforceable by, Employer and its successors and
         assigns. This Agreement shall inure to the benefit of Employee's
         heirs, legatees, legal representatives and assigns, but neither this
         Agreement nor any right or interest hereunder shall be assignable by
         Employee without Employer's prior written consent.

9.       Notices. All notices, requests, demands and other communications made
         or given in connection with this Agreement shall be in writing and
         shall be deemed to have been duly given (a) if delivered, at the time
         delivered or (b) if mailed, at the time mailed at any general or
         branch United States Post Office enclosed in a certified post-paid
         envelope addressed to the address of the respective parties as
         follows:


To the Company:   1400 Toastmaster Drive
                  Elgin, Illinois 60120
                  Attention:  Chief Financial Officer

To MMI:           1400 Toastmaster Drive
                  Elgin, Illinois 60120
                  Attention: Chief Financial Officer

                  With a copy to (which shall not constitute notice to
                  Employer):

                  Skadden, Arps, Slate, Meagher & Flom LLP
                  4 Times Square
                  New York, NY 10036
                  Attn:  Blaine (Fin) V. Fogg, Esq.


To Employee:      Selim A. Bassoul
                  6 Hubbell Court
                  Barrington, Illinois 60010

                  With a copy to (which shall not constitute notice
                  to Employee):

                  Jason M. Cain, Esq.
                  Barnes & Thornburg LLP
                  1 N. Wacker Drive, Suite 4400
                  Chicago, Illinois 60606


         or to such other address as the party to whom notice is to be given
         may have previously furnished to the other party in writing in the
         manner set forth above, provided that notices of changes of address
         shall only be effective upon receipt.

10.      Modifications and Waivers. This Agreement may be modified or amended
         only by a written instrument executed by Employer and Employee. No
         term or condition of this Agreement shall be deemed to have been
         waived nor shall there be any estoppel to enforce any provision of
         this Agreement except by written instrument of the party charged with
         such waiver or estoppel.

11.      Entire Agreement. This Agreement supersedes all prior agreements
         between the parties hereto relating to the subject matter hereof,
         including but not limited to the Prior Agreement and constitutes the
         entire agreement of the parties hereto relating to the subject matter
         hereof. However, nothing in this Agreement is intended or shall be
         interpreted to reduce the rate or eliminate any portion of Employee's
         compensation or benefits in effect immediately prior to the date
         hereof.

12.      Law Governing. The validity, interpretation, construction,
         performance and enforcement of this Agreement shall be governed by
         the laws of the State of Illinois without regard to principles of
         conflicts of laws.

13.      Invalidity. The invalidity or unenforceability of any term or terms
         of this agreement shall not invalidate, make unenforceable or
         otherwise affect any other term of this Agreement which shall remain
         in full force and effect.

14.      Headings. The headings contained herein are for reference only and
         shall not affect the meaning or interpretation of this Agreement.

15.      Joint and Several. The liability hereunder of the Company and MMI
         shall be joint and several.

16.      Other Agreements. Employer agrees to modify any and all agreements,
         plans and contracts as may be necessary to effectuate the terms of
         this Agreement; provided, however, that to the extent shareholder
         approval is required by applicable law or regulation to effectuate
         any such modification, such modification shall be subject to
         shareholder approval.


<PAGE>


         IN WITNESS WHEREOF, the parties hereto have executed this Agreement
on the day and year set forth above.

EMPLOYEE                                    THE MIDDLEBY CORPORATION


/s/ Selim A. Bassoul                        By /s/ Robert L. Yohe
------------------------                       -----------------------------
Selim A. Bassoul                               Chairman of the Compensation
                                               Committee


                                            MIDDLEBY MARSHALL INC.


                                            By /s/ Robert L. Yohe
                                               -----------------------------
                                               Chairman of the Compensation
                                               Committee

<PAGE>


                                   EXHIBIT A

                                 EBITDA Goals


The following are the EBITDA goals to be used for purpose of determining
incentive compensation under the Management Incentive Plan as set forth in the
Agreement to which this Exhibit is attached:

<TABLE>
<CAPTION>

-------------- ------------- ------------ ------------- ------------- ------------ ------------- ------------
    Year           2005         2006          2007          2008         2009          2010         2011
-------------- ------------- ------------ ------------- ------------- ------------ ------------- ------------
<S>             <C>          <C>           <C>           <C>          <C>           <C>          <C>

EBITDA Goal*    48,985,685   54,863,967    61,447,643    68,821,360   77,079,923    86,329,515   96,689,057
-------------- ------------- ------------ ------------- ------------- ------------ ------------- ------------

</TABLE>

*Notes Regarding EBITDA Goals

Calculation of EBITDA. EBITDA shall be determined in the discretion of the
Committee administering the MICP in accordance with Generally Accepted
Accounting Principles. However, EBITDA shall exclude foreign exchange
gains/losses and non-cash equity compensation and shall take into account any
and all bonuses and incentive compensation payable to Company employees,
including incentive compensation payable to employees participating under the
MICP for the applicable year. The Committee administering the MICP shall have
the authority to make appropriate adjustments to EBITDA goals to reflect the
impact of extraordinary items not reflected in such goals. For purposes of the
MICP, extraordinary items shall include (1) any profit or loss attributable to
acquisitions or dispositions of stock or assets, (2) any changes in accounting
standards or treatments that may be required or permitted by the Financial
Accounting Standards Board or adopted by the Company or its subsidiaries after
the goal is established, (3) all items of gain, loss or expense for the year
related to restructuring charges for the Company or its subsidiaries, (4) all
items of gain, loss or expense for the year determined to be extraordinary or
unusual in nature or infrequent in occurrence or related to the disposal of a
segment of a business (including but not limited to any costs allocated to the
Company by any entity that acquires the Company), (5) all items of gain, loss
or expense for the year related to discontinued operations that do not qualify
as a segment of a business as defined in APB Opinion No. 30 (or successor
literature), (6) the impact of capital expenditures, (7) the impact of share
repurchases and other changes in the number of outstanding shares, (8) fees
and expenses associated with a business transaction such as investment banking
fees and/or legal, accounting or tax planning fees, and (9) such other items
as may be pre-scribed by Section 162(m) of the Code and the treasury
regulations thereunder as may be in effect from time to time, and any
amendments, revisions or successor provisions and any changes thereto.

If actual EBITDA for any particular full year exceeds the goal for that year
to the extent that it also exceeds the goal for the next following year, the
EBITDA goal for such next following year shall be automatically increased to
equal the actual EBITDA for such prior year. EBITDA goals for subsequent years
do not automatically change. For example, if the actual EBITDA for 2005 is
$60,000,000, then the EBITDA Goal for 2006 will automatically increase to
$60,000,000; however, the EBITDA goals for 2007 through 2011 shall not
automatically adjust at that time.

<PAGE>


                                   EXHIBIT B

           Illustration of Supplemental Retirement Benefit By Month

                    Based on Retirement on or After Age 55

<TABLE>
<CAPTION>

-------------------------------------------------------------------------------------------------------------
                                                           Payout Per Month           Aggregate Annual
                                       Age on                as Percentage          Payout as Percentage
  Retirement Date (1)               February 3 (2)          of Base Salary (3)         of Base Salary
-------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------
<S>                <C>                  <C>                    <C>                          <C>

          February 3, 2012              55                     4.167%                       50.000%
-------------------------------------------------------------------------------------------------------------
               February-12                                     4.167%                       50.000%
-------------------------------------------------------------------------------------------------------------
                  March-12                                     4.184%                       50.212%
-------------------------------------------------------------------------------------------------------------
                  April-12                                     4.202%                       50.424%
-------------------------------------------------------------------------------------------------------------
                    May-12                                     4.220%                       50.636%
-------------------------------------------------------------------------------------------------------------
                   June-12                                     4.237%                       50.847%
-------------------------------------------------------------------------------------------------------------
                   July-12                                     4.255%                       51.059%
-------------------------------------------------------------------------------------------------------------
                 August-12                                     4.273%                       51.271%
-------------------------------------------------------------------------------------------------------------
              September-12                                     4.290%                       51.483%
-------------------------------------------------------------------------------------------------------------
                October-12                                     4.308%                       51.695%
-------------------------------------------------------------------------------------------------------------
               November-12                                     4.326%                       51.907%
-------------------------------------------------------------------------------------------------------------
               December-12                                     4.343%                       52.119%
-------------------------------------------------------------------------------------------------------------
                January-13                                     4.361%                       52.331%
-------------------------------------------------------------------------------------------------------------
               February-13              56                     4.379%                       52.542%
-------------------------------------------------------------------------------------------------------------
                  March-13                                     4.396%                       52.754%
-------------------------------------------------------------------------------------------------------------
                  April-13                                     4.414%                       52.966%
-------------------------------------------------------------------------------------------------------------
                    May-13                                     4.431%                       53.178%
-------------------------------------------------------------------------------------------------------------
                   June-13                                     4.449%                       53.390%
-------------------------------------------------------------------------------------------------------------
                   July-13                                     4.467%                       53.602%
-------------------------------------------------------------------------------------------------------------
                 August-13                                     4.484%                       53.814%
-------------------------------------------------------------------------------------------------------------
              September-13                                     4.502%                       54.025%
-------------------------------------------------------------------------------------------------------------
                October-13                                     4.520%                       54.237%
-------------------------------------------------------------------------------------------------------------
               November-13                                     4.537%                       54.449%
-------------------------------------------------------------------------------------------------------------
               December-13                                     4.555%                       54.661%
-------------------------------------------------------------------------------------------------------------
                January-14                                     4.573%                       54.873%
-------------------------------------------------------------------------------------------------------------
               February-14              57                     4.590%                       55.085%
-------------------------------------------------------------------------------------------------------------
                  March-14                                     4.608%                       55.297%
-------------------------------------------------------------------------------------------------------------
                  April-14                                     4.626%                       55.508%
-------------------------------------------------------------------------------------------------------------
                    May-14                                     4.643%                       55.720%
-------------------------------------------------------------------------------------------------------------
                   June-14                                     4.661%                       55.932%
-------------------------------------------------------------------------------------------------------------
                   July-14                                     4.679%                       56.144%
-------------------------------------------------------------------------------------------------------------
                 August-14                                     4.696%                       56.356%
-------------------------------------------------------------------------------------------------------------
              September-14                                     4.714%                       56.568%
-------------------------------------------------------------------------------------------------------------
                October-14                                     4.732%                       56.780%
-------------------------------------------------------------------------------------------------------------
               November-14                                     4.749%                       56.992%
-------------------------------------------------------------------------------------------------------------
               December-14                                     4.767%                       57.203%
-------------------------------------------------------------------------------------------------------------
                January-15                                     4.785%                       57.415%
-------------------------------------------------------------------------------------------------------------
               February-15              58                     4.802%                       57.627%
-------------------------------------------------------------------------------------------------------------
                  March-15                                     4.820%                       57.839%
-------------------------------------------------------------------------------------------------------------
                  April-15                                     4.838%                       58.051%
-------------------------------------------------------------------------------------------------------------
                    May-15                                     4.855%                       58.263%
-------------------------------------------------------------------------------------------------------------
                   June-15                                     4.873%                       58.475%
-------------------------------------------------------------------------------------------------------------
                   July-15                                     4.891%                       58.686%
-------------------------------------------------------------------------------------------------------------
                 August-15                                     4.908%                       58.898%
-------------------------------------------------------------------------------------------------------------
              September-15                                     4.926%                       59.110%
-------------------------------------------------------------------------------------------------------------
                October-15                                     4.944%                       59.322%
-------------------------------------------------------------------------------------------------------------
               November-15                                     4.961%                       59.534%
-------------------------------------------------------------------------------------------------------------
               December-15                                     4.979%                       59.746%
-------------------------------------------------------------------------------------------------------------
                January-16                                     4.996%                       59.958%
-------------------------------------------------------------------------------------------------------------
               February-16              59                     5.014%                       60.169%
-------------------------------------------------------------------------------------------------------------
                  March-16                                     5.032%                       60.381%
-------------------------------------------------------------------------------------------------------------
                  April-16                                     5.049%                       60.593%
-------------------------------------------------------------------------------------------------------------
                    May-16                                     5.067%                       60.805%
-------------------------------------------------------------------------------------------------------------
                   June-16                                     5.085%                       61.017%
-------------------------------------------------------------------------------------------------------------
                   July-16                                     5.102%                       61.229%
-------------------------------------------------------------------------------------------------------------
                 August-16                                     5.120%                       61.441%
-------------------------------------------------------------------------------------------------------------
              September-16                                     5.138%                       61.653%
-------------------------------------------------------------------------------------------------------------
                October-16                                     5.155%                       61.864%
-------------------------------------------------------------------------------------------------------------
               November-16                                     5.173%                       62.076%
-------------------------------------------------------------------------------------------------------------
               December-16                                     5.191%                       62.288%
-------------------------------------------------------------------------------------------------------------
                January-17                                     5.208%                       62.500%
-------------------------------------------------------------------------------------------------------------
          February 3, 2017              60                     5.208%                       62.500%
-------------------------------------------------------------------------------------------------------------
               February-17                                     5.208%                       62.500%
-------------------------------------------------------------------------------------------------------------
                  March-17                                     5.226%                       62.712%
-------------------------------------------------------------------------------------------------------------
                  April-17                                     5.244%                       62.924%
-------------------------------------------------------------------------------------------------------------
                    May-17                                     5.261%                       63.136%
-------------------------------------------------------------------------------------------------------------
                   June-17                                     5.279%                       63.347%
-------------------------------------------------------------------------------------------------------------
                   July-17                                     5.297%                       63.559%
-------------------------------------------------------------------------------------------------------------
                 August-17                                     5.314%                       63.771%
-------------------------------------------------------------------------------------------------------------
              September-17                                     5.332%                       63.983%
-------------------------------------------------------------------------------------------------------------
                October-17                                     5.350%                       64.195%
-------------------------------------------------------------------------------------------------------------
               November-17                                     5.367%                       64.407%
-------------------------------------------------------------------------------------------------------------
               December-17                                     5.385%                       64.619%
-------------------------------------------------------------------------------------------------------------
                January-18                                     5.403%                       64.831%
-------------------------------------------------------------------------------------------------------------
               February-18              61                     5.420%                       65.042%
-------------------------------------------------------------------------------------------------------------
                  March-18                                     5.438%                       65.254%
-------------------------------------------------------------------------------------------------------------
                  April-18                                     5.456%                       65.466%
-------------------------------------------------------------------------------------------------------------
                    May-18                                     5.473%                       65.678%
-------------------------------------------------------------------------------------------------------------
                   June-18                                     5.491%                       65.890%
-------------------------------------------------------------------------------------------------------------
                   July-18                                     5.508%                       66.102%
-------------------------------------------------------------------------------------------------------------
                 August-18                                     5.526%                       66.314%
-------------------------------------------------------------------------------------------------------------
              September-18                                     5.544%                       66.525%
-------------------------------------------------------------------------------------------------------------
                October-18                                     5.561%                       66.737%
-------------------------------------------------------------------------------------------------------------
               November-18                                     5.579%                       66.949%
-------------------------------------------------------------------------------------------------------------
               December-18                                     5.597%                       67.161%
-------------------------------------------------------------------------------------------------------------
                January-19                                     5.614%                       67.373%
-------------------------------------------------------------------------------------------------------------
               February-19              62                     5.632%                       67.585%
-------------------------------------------------------------------------------------------------------------
                  March-19                                     5.650%                       67.797%
-------------------------------------------------------------------------------------------------------------
                  April-19                                     5.667%                       68.008%
-------------------------------------------------------------------------------------------------------------
                    May-19                                     5.685%                       68.220%
-------------------------------------------------------------------------------------------------------------
                   June-19                                     5.703%                       68.432%
-------------------------------------------------------------------------------------------------------------
                   July-19                                     5.720%                       68.644%
-------------------------------------------------------------------------------------------------------------
                 August-19                                     5.738%                       68.856%
-------------------------------------------------------------------------------------------------------------
              September-19                                     5.756%                       69.068%
-------------------------------------------------------------------------------------------------------------
                October-19                                     5.773%                       69.280%
-------------------------------------------------------------------------------------------------------------
               November-19                                     5.791%                       69.492%
-------------------------------------------------------------------------------------------------------------
               December-19                                     5.809%                       69.703%
-------------------------------------------------------------------------------------------------------------
                January-20                                     5.826%                       69.915%
-------------------------------------------------------------------------------------------------------------
               February-20              63                     5.844%                       70.127%
-------------------------------------------------------------------------------------------------------------
                  March-20                                     5.862%                       70.339%
-------------------------------------------------------------------------------------------------------------
                  April-20                                     5.879%                       70.551%
-------------------------------------------------------------------------------------------------------------
                    May-20                                     5.897%                       70.763%
-------------------------------------------------------------------------------------------------------------
                   June-20                                     5.915%                       70.975%
-------------------------------------------------------------------------------------------------------------
                   July-20                                     5.932%                       71.186%
-------------------------------------------------------------------------------------------------------------
                 August-20                                     5.950%                       71.398%
-------------------------------------------------------------------------------------------------------------
              September-20                                     5.968%                       71.610%
-------------------------------------------------------------------------------------------------------------
                October-20                                     5.985%                       71.822%
-------------------------------------------------------------------------------------------------------------
               November-20                                     6.003%                       72.034%
-------------------------------------------------------------------------------------------------------------
               December-20                                     6.020%                       72.246%
-------------------------------------------------------------------------------------------------------------
                January-21                                     6.038%                       72.458%
-------------------------------------------------------------------------------------------------------------
               February-21              64                     6.056%                       72.669%
-------------------------------------------------------------------------------------------------------------
                  March-21                                     6.073%                       72.881%
-------------------------------------------------------------------------------------------------------------
                  April-21                                     6.091%                       73.093%
-------------------------------------------------------------------------------------------------------------
                    May-21                                     6.109%                       73.305%
-------------------------------------------------------------------------------------------------------------
                   June-21                                     6.126%                       73.517%
-------------------------------------------------------------------------------------------------------------
                   July-21                                     6.144%                       73.729%
-------------------------------------------------------------------------------------------------------------
                 August-21                                     6.162%                       73.941%
-------------------------------------------------------------------------------------------------------------
              September-21                                     6.179%                       74.153%
-------------------------------------------------------------------------------------------------------------
                October-21                                     6.197%                       74.364%
-------------------------------------------------------------------------------------------------------------
               November-21                                     6.215%                       74.576%
-------------------------------------------------------------------------------------------------------------
               December-21                                     6.232%                       74.788%
-------------------------------------------------------------------------------------------------------------
                January-22                                     6.250%                       75.000%
-------------------------------------------------------------------------------------------------------------
          February 3, 2021              65                     6.250%                       75.000%
-------------------------------------------------------------------------------------------------------------


(1) Assumes retirement on the last day of the month.
(2) Assumes 2/3/1957 date of birth.
(3) Assumes Agreement is entered into on or before 1/1/05.


</TABLE>

<PAGE>


                                   EXHIBIT C

       Illustration of Pro Rata Supplemental Retirement Benefit By Month

                        Based on Qualifying Termination

<TABLE>
<CAPTION>

-------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------

            Qualifying                                    Payout Per Month as        Aggregate Annual Payout
            Termination               Age on                 Percentage of             as Percentage of
              Date(1)               February 3 (2)          Base Salary (3)              Base Salary
-------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------
<S>                     <C>                                    <C>                          <C>

               January-05                                     0.049%                       0.588%
-------------------------------------------------------------------------------------------------------------
               February-05              48                     0.098%                       1.176%
-------------------------------------------------------------------------------------------------------------
                  March-05                                     0.147%                       1.765%
-------------------------------------------------------------------------------------------------------------
                  April-05                                     0.196%                       2.353%
-------------------------------------------------------------------------------------------------------------
                    May-05                                     0.245%                       2.941%
-------------------------------------------------------------------------------------------------------------
                   June-05                                     0.294%                       3.529%
-------------------------------------------------------------------------------------------------------------
                   July-05                                     0.343%                       4.118%
-------------------------------------------------------------------------------------------------------------
                 August-05                                     0.392%                       4.706%
-------------------------------------------------------------------------------------------------------------
              September-05                                     0.441%                       5.294%
-------------------------------------------------------------------------------------------------------------
                October-05                                     0.490%                       5.882%
-------------------------------------------------------------------------------------------------------------
               November-05                                     0.539%                       6.471%
-------------------------------------------------------------------------------------------------------------
               December-05                                     0.588%                       7.059%
-------------------------------------------------------------------------------------------------------------
                January-06                                     0.637%                       7.647%
-------------------------------------------------------------------------------------------------------------
               February-06              49                     0.686%                       8.235%
-------------------------------------------------------------------------------------------------------------
                  March-06                                     0.735%                       8.824%
-------------------------------------------------------------------------------------------------------------
                  April-06                                     0.784%                       9.412%
-------------------------------------------------------------------------------------------------------------
                    May-06                                     0.833%                       10.000%
-------------------------------------------------------------------------------------------------------------
                   June-06                                     0.882%                       10.588%
-------------------------------------------------------------------------------------------------------------
                   July-06                                     0.931%                       11.176%
-------------------------------------------------------------------------------------------------------------
                 August-06                                     0.980%                       11.765%
-------------------------------------------------------------------------------------------------------------
              September-06                                     1.029%                       12.353%
-------------------------------------------------------------------------------------------------------------
                October-06                                     1.078%                       12.941%
-------------------------------------------------------------------------------------------------------------
               November-06                                     1.127%                       13.529%
-------------------------------------------------------------------------------------------------------------
               December-06                                     1.176%                       14.118%
-------------------------------------------------------------------------------------------------------------
                January-07                                     1.225%                       14.706%
-------------------------------------------------------------------------------------------------------------
               February-07              50                     1.275%                       15.294%
-------------------------------------------------------------------------------------------------------------
                  March-07                                     1.324%                       15.882%
-------------------------------------------------------------------------------------------------------------
                  April-07                                     1.373%                       16.471%
-------------------------------------------------------------------------------------------------------------
                    May-07                                     1.422%                       17.059%
-------------------------------------------------------------------------------------------------------------
                   June-07                                     1.471%                       17.647%
-------------------------------------------------------------------------------------------------------------
                   July-07                                     1.520%                       18.235%
-------------------------------------------------------------------------------------------------------------
                 August-07                                     1.569%                       18.824%
-------------------------------------------------------------------------------------------------------------
              September-07                                     1.618%                       19.412%
-------------------------------------------------------------------------------------------------------------
                October-07                                     1.667%                       20.000%
-------------------------------------------------------------------------------------------------------------
               November-07                                     1.716%                       20.588%
-------------------------------------------------------------------------------------------------------------
               December-07                                     1.765%                       21.176%
-------------------------------------------------------------------------------------------------------------
                January-08                                     1.814%                       21.765%
-------------------------------------------------------------------------------------------------------------
               February-08              51                     1.863%                       22.353%
-------------------------------------------------------------------------------------------------------------
                  March-08                                     1.912%                       22.941%
-------------------------------------------------------------------------------------------------------------
                  April-08                                     1.961%                       23.529%
-------------------------------------------------------------------------------------------------------------
                    May-08                                     2.010%                       24.118%
-------------------------------------------------------------------------------------------------------------
                   June-08                                     2.059%                       24.706%
-------------------------------------------------------------------------------------------------------------
                   July-08                                     2.108%                       25.294%
-------------------------------------------------------------------------------------------------------------
                 August-08                                     2.157%                       25.882%
-------------------------------------------------------------------------------------------------------------
              September-08                                     2.206%                       26.471%
-------------------------------------------------------------------------------------------------------------
                October-08                                     2.255%                       27.059%
-------------------------------------------------------------------------------------------------------------
               November-08                                     2.304%                       27.647%
-------------------------------------------------------------------------------------------------------------
               December-08                                     2.353%                       28.235%
-------------------------------------------------------------------------------------------------------------
                January-09                                     2.402%                       28.824%
-------------------------------------------------------------------------------------------------------------
               February-09              52                     2.451%                       29.412%
-------------------------------------------------------------------------------------------------------------
                  March-09                                     2.500%                       30.000%
-------------------------------------------------------------------------------------------------------------
                  April-09                                     2.549%                       30.588%
-------------------------------------------------------------------------------------------------------------
                    May-09                                     2.598%                       31.176%
-------------------------------------------------------------------------------------------------------------
                   June-09                                     2.647%                       31.765%
-------------------------------------------------------------------------------------------------------------
                   July-09                                     2.696%                       32.353%
-------------------------------------------------------------------------------------------------------------
                 August-09                                     2.745%                       32.941%
-------------------------------------------------------------------------------------------------------------
              September-09                                     2.794%                       33.529%
-------------------------------------------------------------------------------------------------------------
                October-09                                     2.843%                       34.118%
-------------------------------------------------------------------------------------------------------------
               November-09                                     2.892%                       34.706%
-------------------------------------------------------------------------------------------------------------
               December-09                                     2.941%                       35.294%
-------------------------------------------------------------------------------------------------------------
                January-10                                     2.990%                       35.882%
-------------------------------------------------------------------------------------------------------------
               February-10              53                     3.039%                       36.471%
-------------------------------------------------------------------------------------------------------------
                  March-10                                     3.088%                       37.059%
-------------------------------------------------------------------------------------------------------------
                  April-10                                     3.137%                       37.647%
-------------------------------------------------------------------------------------------------------------
                    May-10                                     3.186%                       38.235%
-------------------------------------------------------------------------------------------------------------
                   June-10                                     3.235%                       38.824%
-------------------------------------------------------------------------------------------------------------
                   July-10                                     3.284%                       39.412%
-------------------------------------------------------------------------------------------------------------
                 August-10                                     3.333%                       40.000%
-------------------------------------------------------------------------------------------------------------
              September-10                                     3.382%                       40.588%
-------------------------------------------------------------------------------------------------------------
                October-10                                     3.431%                       41.176%
-------------------------------------------------------------------------------------------------------------
               November-10                                     3.480%                       41.765%
-------------------------------------------------------------------------------------------------------------
               December-10                                     3.529%                       42.353%
-------------------------------------------------------------------------------------------------------------
                January-11                                     3.578%                       42.941%
-------------------------------------------------------------------------------------------------------------
               February-11              54                     3.627%                       43.529%
-------------------------------------------------------------------------------------------------------------
                  March-11                                     3.676%                       44.118%
-------------------------------------------------------------------------------------------------------------
                  April-11                                     3.725%                       44.706%
-------------------------------------------------------------------------------------------------------------
                    May-11                                     3.775%                       45.294%
-------------------------------------------------------------------------------------------------------------
                   June-11                                     3.824%                       45.882%
-------------------------------------------------------------------------------------------------------------
                   July-11                                     3.873%                       46.471%
-------------------------------------------------------------------------------------------------------------
                 August-11                                     3.922%                       47.059%
-------------------------------------------------------------------------------------------------------------
              September-11                                     3.971%                       47.647%
-------------------------------------------------------------------------------------------------------------
                October-11                                     4.020%                       48.235%
-------------------------------------------------------------------------------------------------------------
               November-11                                     4.069%                       48.824%
-------------------------------------------------------------------------------------------------------------
               December-11                                     4.118%                       49.412%
-------------------------------------------------------------------------------------------------------------
                January-12                                     4.167%                       50.000%
-------------------------------------------------------------------------------------------------------------
          February 3, 2012              55                     4.167%                       50.000%
-------------------------------------------------------------------------------------------------------------
               February-12                                     4.167%                       50.000%
-------------------------------------------------------------------------------------------------------------
                  March-12                                     4.184%                       50.212%
-------------------------------------------------------------------------------------------------------------
                  April-12                                     4.202%                       50.424%
-------------------------------------------------------------------------------------------------------------
                    May-12                                     4.220%                       50.636%
-------------------------------------------------------------------------------------------------------------
                   June-12                                     4.237%                       50.847%
-------------------------------------------------------------------------------------------------------------
                   July-12                                     4.255%                       51.059%
-------------------------------------------------------------------------------------------------------------
                 August-12                                     4.273%                       51.271%
-------------------------------------------------------------------------------------------------------------
              September-12                                     4.290%                       51.483%
-------------------------------------------------------------------------------------------------------------
                October-12                                     4.308%                       51.695%
-------------------------------------------------------------------------------------------------------------
               November-12                                     4.326%                       51.907%
-------------------------------------------------------------------------------------------------------------
               December-12                                     4.343%                       52.119%
-------------------------------------------------------------------------------------------------------------
                January-13                                     4.361%                       52.331%
-------------------------------------------------------------------------------------------------------------
               February-13              56                     4.379%                       52.542%
-------------------------------------------------------------------------------------------------------------
                  March-13                                     4.396%                       52.754%
-------------------------------------------------------------------------------------------------------------
                  April-13                                     4.414%                       52.966%
-------------------------------------------------------------------------------------------------------------
                    May-13                                     4.431%                       53.178%
-------------------------------------------------------------------------------------------------------------
                   June-13                                     4.449%                       53.390%
-------------------------------------------------------------------------------------------------------------
                   July-13                                     4.467%                       53.602%
-------------------------------------------------------------------------------------------------------------
                 August-13                                     4.484%                       53.814%
-------------------------------------------------------------------------------------------------------------
              September-13                                     4.502%                       54.025%
-------------------------------------------------------------------------------------------------------------
                October-13                                     4.520%                       54.237%
-------------------------------------------------------------------------------------------------------------
               November-13                                     4.537%                       54.449%
-------------------------------------------------------------------------------------------------------------
               December-13                                     4.555%                       54.661%
-------------------------------------------------------------------------------------------------------------
                January-14                                     4.573%                       54.873%
-------------------------------------------------------------------------------------------------------------
               February-14              57                     4.590%                       55.085%
-------------------------------------------------------------------------------------------------------------
                  March-14                                     4.608%                       55.297%
-------------------------------------------------------------------------------------------------------------
                  April-14                                     4.626%                       55.508%
-------------------------------------------------------------------------------------------------------------
                    May-14                                     4.643%                       55.720%
-------------------------------------------------------------------------------------------------------------
                   June-14                                     4.661%                       55.932%
-------------------------------------------------------------------------------------------------------------
                   July-14                                     4.679%                       56.144%
-------------------------------------------------------------------------------------------------------------
                 August-14                                     4.696%                       56.356%
-------------------------------------------------------------------------------------------------------------
              September-14                                     4.714%                       56.568%
-------------------------------------------------------------------------------------------------------------
                October-14                                     4.732%                       56.780%
-------------------------------------------------------------------------------------------------------------
               November-14                                     4.749%                       56.992%
-------------------------------------------------------------------------------------------------------------
               December-14                                     4.767%                       57.203%
-------------------------------------------------------------------------------------------------------------
                January-15                                     4.785%                       57.415%
-------------------------------------------------------------------------------------------------------------
               February-15              58                     4.802%                       57.627%
-------------------------------------------------------------------------------------------------------------
                  March-15                                     4.820%                       57.839%
-------------------------------------------------------------------------------------------------------------
                  April-15                                     4.838%                       58.051%
-------------------------------------------------------------------------------------------------------------
                    May-15                                     4.855%                       58.263%
-------------------------------------------------------------------------------------------------------------
                   June-15                                     4.873%                       58.475%
-------------------------------------------------------------------------------------------------------------
                   July-15                                     4.891%                       58.686%
-------------------------------------------------------------------------------------------------------------
                 August-15                                     4.908%                       58.898%
-------------------------------------------------------------------------------------------------------------
              September-15                                     4.926%                       59.110%
-------------------------------------------------------------------------------------------------------------
                October-15                                     4.944%                       59.322%
-------------------------------------------------------------------------------------------------------------
               November-15                                     4.961%                       59.534%
-------------------------------------------------------------------------------------------------------------
               December-15                                     4.979%                       59.746%
-------------------------------------------------------------------------------------------------------------
                January-16                                     4.996%                       59.958%
-------------------------------------------------------------------------------------------------------------
               February-16              59                     5.014%                       60.169%
-------------------------------------------------------------------------------------------------------------
                  March-16                                     5.032%                       60.381%
-------------------------------------------------------------------------------------------------------------
                  April-16                                     5.049%                       60.593%
-------------------------------------------------------------------------------------------------------------
                    May-16                                     5.067%                       60.805%
-------------------------------------------------------------------------------------------------------------
                   June-16                                     5.085%                       61.017%
-------------------------------------------------------------------------------------------------------------
                   July-16                                     5.102%                       61.229%
-------------------------------------------------------------------------------------------------------------
                 August-16                                     5.120%                       61.441%
-------------------------------------------------------------------------------------------------------------
              September-16                                     5.138%                       61.653%
-------------------------------------------------------------------------------------------------------------
                October-16                                     5.155%                       61.864%
-------------------------------------------------------------------------------------------------------------
               November-16                                     5.173%                       62.076%
-------------------------------------------------------------------------------------------------------------
               December-16                                     5.191%                       62.288%
-------------------------------------------------------------------------------------------------------------
                January-17                                     5.208%                       62.500%
-------------------------------------------------------------------------------------------------------------
          February 3, 2017              60                     5.208%                       62.500%
-------------------------------------------------------------------------------------------------------------
               February-17                                     5.208%                       62.500%
-------------------------------------------------------------------------------------------------------------
                  March-17                                     5.226%                       62.712%
-------------------------------------------------------------------------------------------------------------
                  April-17                                     5.244%                       62.924%
-------------------------------------------------------------------------------------------------------------
                    May-17                                     5.261%                       63.136%
-------------------------------------------------------------------------------------------------------------
                   June-17                                     5.279%                       63.347%
-------------------------------------------------------------------------------------------------------------
                   July-17                                     5.297%                       63.559%
-------------------------------------------------------------------------------------------------------------
                 August-17                                     5.314%                       63.771%
-------------------------------------------------------------------------------------------------------------
              September-17                                     5.332%                       63.983%
-------------------------------------------------------------------------------------------------------------
                October-17                                     5.350%                       64.195%
-------------------------------------------------------------------------------------------------------------
               November-17                                     5.367%                       64.407%
-------------------------------------------------------------------------------------------------------------
               December-17                                     5.385%                       64.619%
-------------------------------------------------------------------------------------------------------------
                January-18                                     5.403%                       64.831%
-------------------------------------------------------------------------------------------------------------
               February-18              61                     5.420%                       65.042%
-------------------------------------------------------------------------------------------------------------
                  March-18                                     5.438%                       65.254%
-------------------------------------------------------------------------------------------------------------
                  April-18                                     5.456%                       65.466%
-------------------------------------------------------------------------------------------------------------
                    May-18                                     5.473%                       65.678%
-------------------------------------------------------------------------------------------------------------
                   June-18                                     5.491%                       65.890%
-------------------------------------------------------------------------------------------------------------
                   July-18                                     5.508%                       66.102%
-------------------------------------------------------------------------------------------------------------
                 August-18                                     5.526%                       66.314%
-------------------------------------------------------------------------------------------------------------
              September-18                                     5.544%                       66.525%
-------------------------------------------------------------------------------------------------------------
                October-18                                     5.561%                       66.737%
-------------------------------------------------------------------------------------------------------------
               November-18                                     5.579%                       66.949%
-------------------------------------------------------------------------------------------------------------
               December-18                                     5.597%                       67.161%
-------------------------------------------------------------------------------------------------------------
                January-19                                     5.614%                       67.373%
-------------------------------------------------------------------------------------------------------------
               February-19              62                     5.632%                       67.585%
-------------------------------------------------------------------------------------------------------------
                  March-19                                     5.650%                       67.797%
-------------------------------------------------------------------------------------------------------------
                  April-19                                     5.667%                       68.008%
-------------------------------------------------------------------------------------------------------------
                    May-19                                     5.685%                       68.220%
-------------------------------------------------------------------------------------------------------------
                   June-19                                     5.703%                       68.432%
-------------------------------------------------------------------------------------------------------------
                   July-19                                     5.720%                       68.644%
-------------------------------------------------------------------------------------------------------------
                 August-19                                     5.738%                       68.856%
-------------------------------------------------------------------------------------------------------------
              September-19                                     5.756%                       69.068%
-------------------------------------------------------------------------------------------------------------
                October-19                                     5.773%                       69.280%
-------------------------------------------------------------------------------------------------------------
               November-19                                     5.791%                       69.492%
-------------------------------------------------------------------------------------------------------------
               December-19                                     5.809%                       69.703%
-------------------------------------------------------------------------------------------------------------
                January-20                                     5.826%                       69.915%
-------------------------------------------------------------------------------------------------------------
               February-20              63                     5.844%                       70.127%
-------------------------------------------------------------------------------------------------------------
                  March-20                                     5.862%                       70.339%
-------------------------------------------------------------------------------------------------------------
                  April-20                                     5.879%                       70.551%
-------------------------------------------------------------------------------------------------------------
                    May-20                                     5.897%                       70.763%
-------------------------------------------------------------------------------------------------------------
                   June-20                                     5.915%                       70.975%
-------------------------------------------------------------------------------------------------------------
                   July-20                                     5.932%                       71.186%
-------------------------------------------------------------------------------------------------------------
                 August-20                                     5.950%                       71.398%
-------------------------------------------------------------------------------------------------------------
              September-20                                     5.968%                       71.610%
-------------------------------------------------------------------------------------------------------------
                October-20                                     5.985%                       71.822%
-------------------------------------------------------------------------------------------------------------
               November-20                                     6.003%                       72.034%
-------------------------------------------------------------------------------------------------------------
               December-20                                     6.020%                       72.246%
-------------------------------------------------------------------------------------------------------------
                January-21                                     6.038%                       72.458%
-------------------------------------------------------------------------------------------------------------
               February-21              64                     6.056%                       72.669%
-------------------------------------------------------------------------------------------------------------
                  March-21                                     6.073%                       72.881%
-------------------------------------------------------------------------------------------------------------
                  April-21                                     6.091%                       73.093%
-------------------------------------------------------------------------------------------------------------
                    May-21                                     6.109%                       73.305%
-------------------------------------------------------------------------------------------------------------
                   June-21                                     6.126%                       73.517%
-------------------------------------------------------------------------------------------------------------
                   July-21                                     6.144%                       73.729%
-------------------------------------------------------------------------------------------------------------
                 August-21                                     6.162%                       73.941%
-------------------------------------------------------------------------------------------------------------
              September-21                                     6.179%                       74.153%
-------------------------------------------------------------------------------------------------------------
                October-21                                     6.197%                       74.364%
-------------------------------------------------------------------------------------------------------------
               November-21                                     6.215%                       74.576%
-------------------------------------------------------------------------------------------------------------
               December-21                                     6.232%                       74.788%
-------------------------------------------------------------------------------------------------------------
                January-22                                     6.250%                       75.000%
-------------------------------------------------------------------------------------------------------------
          February 3, 2021              65                     6.250%                       75.000%
-------------------------------------------------------------------------------------------------------------


(1) Assumes termination on the last day of each month.
(2) Assumes 2/3/1957 date of birth.
(3) Assumes Agreement is entered into on or before 1/1/05.

</TABLE>




</TEXT>
</DOCUMENT>
