WALT DISNEY CO/
EXHIBIT 10(A)
<DOCUMENT>
<TYPE>EX-10.(A)
<SEQUENCE>2
<FILENAME>v04225exv10wxay.htm
<DESCRIPTION>EXHIBIT 10(A)
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10wxay</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><B>Form of Agreement</B>


<P align="center" style="font-size: 10pt"><B>THE WALT DISNEY COMPANY</B>



<P align="center" style="font-size: 10pt"><B>Performance-Based</B><BR>
<U><B>Stock Unit Award</B></U><BR>
<B>(Dual Performance Goals)</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AWARD AGREEMENT, dated as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, between The Walt Disney Company, a Delaware
corporation (&#147;Disney&#148;), and <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (the &#147;Participant&#148;). This Award is granted on
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 200<U>&nbsp;&nbsp;&nbsp;</U> (the &#147;Date of Grant&#148;) by the Compensation Committee of the Disney Board of
Directors (the &#147;Committee&#148;) pursuant to the terms of the 2002 Executive Performance Plan (the
&#147;Plan&#148;), and pursuant to the terms of the Amended and Restated 1995 Stock Incentive Plan (the
&#147;Stock Plan&#148;). The applicable terms of the Plan and the Stock Plan are incorporated herein by
reference, including the definitions of terms contained therein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Stock Unit Award</U>. Disney hereby grants to the Participant, on the terms
and conditions set forth herein, an Award of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#147;Stock Units.&#148; The Stock Units are notional
units of measurement denominated in Shares of Disney (<U>i</U>.<U>e</U>. one Stock Unit is
equivalent in value to one Share, subject to the terms hereof). The Stock Units represent an
unfunded, unsecured obligation of Disney. This Award is subdivided into &#147;Tranche A&#148; and &#147;Tranche
B,&#148; each of which constitute one half of the Award. Subject to the terms, conditions and
performance-based vesting requirements set forth herein, Tranche A of this Award will vest on the
second anniversary date of the Date of Grant and Tranche B on the fourth anniversary of the Date of
Grant.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Vesting Requirements</U>. The vesting of this Award (other than pursuant to
accelerated vesting in certain circumstances as provided in Section&nbsp;3 below) shall be subject to
the satisfaction of the conditions set forth in <U>each of</U> subsections A, B and C of this
Section&nbsp;2:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Total Stockholder Return Vesting Requirement</U>. The vesting of
fifty percent (50%) of both Tranche A and Tranche B shall be subject to
performance vesting under this Section&nbsp;2.A. This performance vesting
requirement, which is applicable on both the second and fourth anniversary
dates of the Date of Grant), shall be satisfied if Total Shareholder Return (as
defined below) of Disney, determined on the relevant anniversary date as
provided below, exceeds the Total Shareholder Return for the Standard &#038; Poor&#146;s
500 Composite Stock Index (the &#147;Reference TSR&#148;) over either (i)&nbsp;the period of
one year preceding the applicable anniversary date or (ii)&nbsp;the period of three
years preceding the applicable anniversary date. &#147;Total Shareholder Return&#148;
shall mean, for any given determination date, an amount equal to the average of
the total return figures, calculated on the basis of weekly periodicity, as
currently reported under &#147;Comparative Returns&#148; by Bloomberg L.P. (or any other
reporting service that the Committee may designate from time to time) (i)&nbsp;for
Disney and (ii)&nbsp;for the Reference TSR (which is designated by Bloomberg L.P. as
the &#147;S&#038;P 500 Index&#148;), as the case may be, for each of the four weeks
immediately preceding the determination date, it being</TD>
</TR>

</TABLE>

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

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

<DIV style="font-family: 'Times New Roman',Times,serif">


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"><TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>understood that if any such determination is made on the last trading day of
any week, then that week shall be treated as a preceding week.</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the performance vesting requirements of this Section&nbsp;2.A are not
satisfied for Tranche A on the second anniversary date of the Date of Grant,
then 50% of Tranche A shall not vest on that date. However, such 50%
portion of Tranche A shall not be forfeited at that time and shall vest if
and when the performance vesting requirements set forth in this Section&nbsp;2.A
applicable on the fourth anniversary date hereof are achieved. If the
performance vesting requirements applicable on the fourth anniversary of the
Date of Grant are not met, then the 50% portions of Tranche A and Tranche B
subject to vesting under this Section&nbsp;2.A that are not then vested shall be
immediately forfeited and the Participant&#146;s rights with respect thereto
shall cease.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Section&nbsp;162(m) Vesting Requirement</U>. This Award shall also be
subject to additional performance vesting requirements under this Section&nbsp;2.B
with respect to 100% of both Tranche A and Tranche B, based upon the
achievement of the Performance Targets applicable to the Performance Periods
specified below, subject to certification of achievement of such Performance
Targets by the Committee pursuant to Section&nbsp;4.8 of the Plan. The respective
Performance Targets (and the Business Criteria to which they relate) shall be
established by the Committee not later than 90&nbsp;days following the beginning of
each Performance Period. If the Performance Target for a Performance Period is
not satisfied, the applicable portion of the Award (<U>i</U>.<U>e</U>.,
Tranche A or Tranche B) shall be immediately forfeited in its entirety. The
Performance Periods for the Stock Units granted hereunder shall be as follows:</TD>
</TR>

</TABLE>

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

<!-- Begin Table Head --><TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="43%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="42%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Performance Period<HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Stock Units<HR size="1" noshade></TD>
</TR>


<!-- End Table Head -->

<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fiscal 200<U>&nbsp;&nbsp;&nbsp;</U> and 200<U>&nbsp;&nbsp;&nbsp;</U><BR>
(October&nbsp;1, 200<U>&nbsp;&nbsp;&nbsp;</U>  - September
30, 200<U>&nbsp;&nbsp;&nbsp;</U> )
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tranche A (<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Stock Units)</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fiscal 200<U>&nbsp;&nbsp;&nbsp;</U> and 200<U>&nbsp;&nbsp;&nbsp;</U><BR>
(October&nbsp;1, 200<U>&nbsp;&nbsp;&nbsp;</U> - September
30, 200<U>&nbsp;&nbsp;&nbsp;</U> )
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tranche B (<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Stock Units)</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>



<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">C.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Service Vesting Requirement</U>. In addition to the performance
vesting requirements of subsections A and B of this Section&nbsp;2, the right of the
Participant to receive payment of this Award shall become vested only if he or
she remains continuously employed by Disney or an Affiliate from the date
hereof until the later of (i)&nbsp;the last day of the Performance Period specified
above in Section&nbsp;2.B with respect to Tranche A or Tranche B, as applicable, and
(ii)&nbsp;the date that the relevant portion of this Award (<U>i</U>.<U>e</U>.,
Tranche A or Tranche B) satisfies the applicable performance vesting</TD>
</TR>

</TABLE>

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

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

<DIV style="font-family: 'Times New Roman',Times,serif">


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>requirement as provided in Section&nbsp;2.A hereof; <U>provided</U>,
<U>however</U>, that, nothing set forth herein shall be deemed to modify,
qualify, or otherwise derogate from, the requirement of Section&nbsp;4.8 of the
Plan that the Committee certify in writing that the applicable Performance
Targets of Section&nbsp;2.B above have been satisfied prior to the payment of
any amount to the Participant under this Award.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the service vesting requirements of this Section&nbsp;2.C are not satisfied
for Tranche A or Tranche B, respectively, the applicable number of Stock
Units shall be immediately forfeited and the Participant&#146;s rights with
respect thereto shall cease.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">All Stock Units for which all of the requirements of this Section&nbsp;2 have been satisfied shall
become vested and shall thereafter be payable in accordance with Section&nbsp;5 hereof.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Accelerated Vesting</U>. Notwithstanding the terms and conditions of
Section&nbsp;2 hereof, upon the Participant&#146;s death or disability (within the meaning of Section&nbsp;409A
of the Internal Revenue Code), or upon the occurrence of a Triggering Event within the 12-month
period following a Change in Control (in accordance with Section&nbsp;11 of the Stock Plan as in effect
on the date hereof), this Award shall become fully vested and shall be payable in accordance with
Section&nbsp;5 hereof to the extent that it has not previously been forfeited. In addition, if the
Participant is employed pursuant to an employment agreement with Disney, any provisions thereof
relating to the effect of a termination of the Participant&#146;s employment upon his or her rights
with respect to this Award, including, without limitation, any provisions regarding acceleration
of vesting and/or payment of this Award in the event of termination of employment, shall be fully
applicable and supersede any provisions hereof with respect to the same subject matter.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Dividend Equivalents</U>. Any dividends paid in cash on Shares of
Disney will be credited to the Participant as additional Stock Units as if the Stock Units
previously held by the Participant were outstanding Shares, as follows: such credit shall be made
in whole and/or fractional Stock Units and shall be based on the fair market value (as defined in
the Stock Plan) of the Shares on the date of payment of such dividend. All such additional Stock
Units shall be subject to the same vesting requirements applicable to the Stock Units in respect of
which they were credited and shall be payable in accordance with Section&nbsp;5 hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Payment of Award</U>. Payment of vested Stock Units shall be made
within 30&nbsp;days following the later of:


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the applicable date under Section&nbsp;2.C hereof as of which all of the applicable
vesting requirements under Section&nbsp;2 hereof shall have been satisfied for Tranche A or
Tranche B, as applicable, or</TD>
</TR>

</TABLE>


<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the date of certification of achievement of the applicable Performance Targets
by the Committee as required under Section&nbsp;2.B hereof,</TD>
</TR>

</TABLE>

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

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

<DIV style="font-family: 'Times New Roman',Times,serif">


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


</TABLE>

<P align="left" style="font-size: 10pt">(or within 30&nbsp;days following acceleration of vesting under Section&nbsp;3 hereof, if applicable). The
Stock Units shall be paid in cash or in Shares (or some combination thereof), as determined by the
Committee in its discretion at the time of payment, and in either case shall be paid to the
Participant after deduction of applicable withholding taxes in the amount determined by the
Committee, provided that such amount shall not exceed the Participant&#146;s estimated Federal, state
and local tax obligation with respect to payment of the Award.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>Restrictions on Transfer</U>. Neither this Stock Unit Award nor any
Stock Units covered hereby may be sold, assigned, transferred, encumbered, hypothecated or pledged
by the Participant, other than to Disney as a result of forfeiture of the units as provided herein
and as provided in Section&nbsp;6 of the Plan. The Stock Units constitute Restricted Units as defined
in Section&nbsp;2.2 of the Plan.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <U>No Voting Rights</U>. The Stock Units granted pursuant to this Award,
whether or not vested, will not confer any voting rights upon the Participant, unless and until the
Award is paid in Shares.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8. <U>Award Subject to Plans</U>. This Stock Unit Award is subject to the
terms of the Plan and the Stock Plan, the terms and provisions of which are hereby incorporated by
reference. In the event of a conflict or ambiguity between any term or provision contained herein
and a term or provision of the Plan or the Stock Plan, the Plan or the Stock Plan (as applicable)
will govern and prevail.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9. <U>Changes in Capitalization</U>. The Stock Units under this Award shall
be subject to the provisions of the Stock Plan relating to adjustments for changes in corporate
capitalization.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10. <U>No Right of Employment</U>. Nothing in this Award Agreement shall
confer upon the Participant any right to continue as an employee of Disney or an Affiliate nor
interfere in any way with the right of Disney or an Affiliate to terminate the Participant&#146;s
employment at any time or to change the terms and conditions of such employment.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11. <U>Governing Law</U>. This Award Agreement shall be construed and
enforced in accordance with the laws of the State of Delaware, without giving effect to the choice
of law principles thereof.


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

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

<DIV style="font-family: 'Times New Roman',Times,serif">

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top">&nbsp;</TD>
    <TD colspan="3">THE WALT DISNEY COMPANY<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000">PARTICIPANT<BR>
<BR>
<BR>
</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">5
</DIV>


</BODY>
</HTML>

</TEXT>
</DOCUMENT>
