USG CORP
2005 ANNUAL MANAGEMENT INCENTIVE PROGRAM
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>c89891exv10w1.htm
<DESCRIPTION>2005 ANNUAL MANAGEMENT INCENTIVE PROGRAM
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<P align="right" style="font-size: 10pt"><B>Exhibit&nbsp;10.1</B>



<P align="center" style="font-size: 10pt"><B>Year 2005</B>



<P align="center" style="font-size: 10pt"><B>Annual<BR>
Management Incentive<BR>
Program</B>



<P align="center" style="font-size: 10pt"><B>USG Corporation</B>



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


<P align="left" style="font-size: 10pt">To enhance USG Corporation&#146;s ability to attract, motivate, reward and retain
key employees of the Corporation and its operating subsidiaries and to align
management&#146;s interests with those of the Corporation&#146;s stockholders by
providing incentive award opportunities to managers who make a measurable
contribution to the Corporation&#146;s business objectives.


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


<P align="left" style="font-size: 10pt">This Annual Management Incentive Program (the &#147;Program&#148;) is in effect from
January&nbsp;1, 2005 through December&nbsp;31, 2005.


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


<P align="left" style="font-size: 10pt">Individuals eligible for participation in this Program are those officers and
other key employees occupying management positions in Broadband 11 or higher.
Employees who participate in any other annual incentive program of the
Corporation or any of its subsidiaries are not eligible to participate in this
Program but could be considered for special awards.


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


<P align="left" style="font-size: 10pt">For the 2005 Annual Management Incentive Program, Consolidated Net Earnings and
consolidated, subsidiary and profit center Strategic Focus Targets will be
determined by the Compensation and Organization Committee of the USG Board of
Directors (the &#147;Committee&#148;) after considering recommendations submitted from
management of USG Corporation and the Operating Subsidiaries.


<P align="center" style="font-size: 10pt">1
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<P align="center" style="font-size: 10pt"><B>AWARD VALUES</B>


<P align="left" style="font-size: 10pt">For the Annual Management Incentive Program, position target incentive values
are based on level of accountability and are expressed as a percent of approved
annualized salary. Resulting award opportunities represent a fully competitive
incentive opportunity for 100% (target)&nbsp;achievement of goals:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="80%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Position Title or</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Position Target</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Salary Reference Point</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Incentive</B><HR size="1" noshade></TD>
</TR>

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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Chairman &#038; CEO, USG Corporation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">90</TD>
    <TD nowrap valign="bottom">%</TD>
</TR>

<TR valign="bottom">
    <TD colspan="5" valign="top" align="left"><HR size="1" noshade></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Executive Vice President &#038; Chief Financial Officer, USG Corporation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">60</TD>
    <TD nowrap valign="bottom">%</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Executive Vice President, USG Corporation &#038; President Building Systems</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Executive Vice President Marketing &#038; Corporate Strategy, USG
Corporation and President International</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Executive Vice President &#038; General Counsel, USG Corporation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD colspan="5" valign="top" align="left"><HR size="1" noshade></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Vice President Human Resources, USG Corporation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">45</TD>
    <TD nowrap valign="bottom">%</TD>
</TR>


<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Vice President Communications, USG Corporation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD colspan="5" valign="top" align="left"><HR size="1" noshade></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Vice President, USG Corporation &#038; President &#038; COO, L &#038; W Supply Corp.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">40</TD>
    <TD nowrap valign="bottom">%</TD>
</TR>


<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Vice President &#038; Chief Technology Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Vice President &#038; Controller, USG Corporation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Vice President &#038; Treasurer, USG Corporation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Vice President Research &#038; Technology, USG Corporation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Vice President Compensation, Benefits &#038; Administration, USG Corporation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Corporate Secretary &#038; Associate General Counsel, USG Corporation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD colspan="5" valign="top" align="left"><HR size="1" noshade></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Position Reference Point: $177,660 and over
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">35</TD>
    <TD nowrap valign="bottom">%</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Position Reference Point: $163,200 &#151; $177,659
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">30</TD>
    <TD nowrap valign="bottom">%</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Position Reference Point: $148,800 &#151; $163,199
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">25</TD>
    <TD nowrap valign="bottom">%</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Position Reference Point: $133,620 &#151; $148,799
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">20</TD>
    <TD nowrap valign="bottom">%</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Position Reference Point: $119,040 &#151; $133,619
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">15</TD>
    <TD nowrap valign="bottom">%</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#149; Position Reference Point: $104,820 &#151; $119,039
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom">10</TD>
    <TD nowrap valign="bottom">%</TD>
</TR>

<TR valign="bottom">
    <TD colspan="5" valign="top" align="left"><HR size="1" noshade></TD>
</TR>

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




<P align="left" style="margin-left:4%; font-size: 10pt">Incentive awards for all participants in the 2005 Annual Management Incentive
Program will be reviewed and approved by the Committee. For all participants,
the annual incentive award par opportunity is the annualized salary in effect
on April&nbsp;1, 2005 multiplied by the applicable position target incentive value
percent.



<P align="left" style="margin-left:4%; font-size: 10pt">Incentive awards for 2005 will be based on a combination of the following
elements:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>I.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>CONSOLIDATED NET EARNINGS</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>50% OF INCENTIVE</B></TD>
</TR>

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<P align="left" style="margin-left:4%; font-size: 10pt">Consolidated Net Earnings will be as reported on the Corporation&#146;s year-end
financial statements with adjustments for significant non-operational charges.
Such adjustments have in the past been for Fresh Start Accounting, asbestos,
restructuring charges, bankruptcy expenses and the cumulative impact of new
accounting pronouncements (goodwill impairment). For 2005, likely adjustments
would include bankruptcy expenses. For all participants, this portion of the
award represents 50% of the incentive par. This portion of the award will be
paid from a pool funded by Consolidated Net Earnings results according to the
following schedule:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">$0 to $50 Million Net Earnings
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.50% of this tier will fund the pool</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">$51 to $150 Million Net Earnings
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.25% of this tier will fund the pool</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">$151 to $400 Million Net Earnings
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.75% of this tier will fund the pool</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">$401 Million and above
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.00% of this tier will fund the pool</TD>
</TR>

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</DIV>




<P align="left" style="margin-left:4%; font-size: 10pt">Each tier of earnings is calculated separately and added together to determine
the total pool. This amount is then divided by the total plan par (sum of each
individual participant&#146;s Net Earnings par, which is 50% of each participant&#146;s
total par). The factor derived from this method is then applied to each
participant&#146;s Net Earnings par to determine the individual award for this
segment. There is no maximum award in this segment.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>II.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>STRATEGIC FOCUS TARGETS:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>50% OF INCENTIVE</B></TD>
</TR>

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</DIV>




<P align="left" style="margin-left:4%; font-size: 10pt">Strategic Focus Targets will be measurable, verifiable and derived from the
formal strategic planning process. For 2005, Strategic Focus Targets will
generally include Overhead Reduction, Working Capital Reduction, Cost
Reduction, and Business Unit Operating Profit. The award adjustment factor for
this segment will range from 0.5 (after achieving a minimum threshold
performance level) to 2.0 for maximum attainment. The weighting on any
individual Strategic Focus Target will be in 5% increments and not be less than
10%. The weighting of all assigned Strategic Focus Targets will equal 50% of
the individual&#146;s total par.


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

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<P align="center" style="font-size: 10pt"><B>WEIGHTINGS OF PROGRAM ELEMENTS</B>


<P align="left" style="font-size: 10pt">All participants in this Program, including the fourteen most senior
executives, will have the same overall weightings, 50% on Consolidated Net
Earnings and 50% on Strategic Focus Targets.


<P align="center" style="font-size: 10pt"><B>SPECIAL AWARDS</B>


<P align="left" style="font-size: 10pt">In addition to the incentive opportunity provided by this Program, a special
award may be recommended for any participant or non-participant, other than a
Corporation Officer, who has made an extraordinary contribution to the
Corporation&#146;s welfare or earnings.


<P align="center" style="font-size: 10pt"><B>GENERAL PROVISIONS</B>



<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%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Compensation and Organization Committee of the USG Board of Directors
reserves the right to adjust award amounts either up or down based on its
assessment of the Corporation&#146;s overall performance relative to market
conditions.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Committee shall review and approve the awards recommended for
officers and other employees who are eligible participants in the 2005
Annual Management Incentive Program. The Committee shall submit to the
Board of Directors, for their ratification, a report of the awards for all
eligible participants including corporate officers approved by the
Committee in accordance with the provisions of the Program.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Committee shall have full power to make the rules and regulations
with respect to the determination of achievement of goals and the
distribution of awards. No awards will be made until the Committee has
certified financial achievements and applicable awards in writing.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The judgement of the Committee in construing this Program or any
provisions thereof, or in making any decision hereunder, shall be final
and conclusive and binding upon all employees of the Corporation and its
subsidiaries whether or not selected as beneficiaries hereunder, and their
heirs, executors, personal representatives and assignees.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Nothing herein contained shall limit or affect in any manner or degree
the normal and usual powers of management, exercised by the officers and
the Board of Directors or committees thereof, to change the duties or the
character of employment of any employee of the Corporation or to remove
the individual from the employment of the Corporation at any time, all of
which rights and powers are expressly reserved.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The awards made to employees shall become a liability of the Corporation
or the appropriate subsidiary as of December&nbsp;31, 2005 and all payments to
be made hereunder will be made as soon as practicable after said awards
have been approved by the Committee.</TD>
</TR>

</TABLE>

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

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

<P align="center" style="font-size: 10pt"><B>ADMINISTRATIVE GUIDELINES</B>



<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%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Award values will be based on annualized salary in effect on April&nbsp;1,
2005 for each qualifying participant. Any change in duties, dimensions or
responsibilities of a current position resulting in an increase or
decrease in salary range reference point or market rate will result in
pro-rata incentive award. Respective reference points, target incentive
values or goals will be applied based on the actual number of full months
of service at each position.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As provided by the Program, no award is to be paid to any participant who
is not a regular full-time employee, (or a part time employee as approved
by the Vice President Human Resources, USG Corporation) in good standing
at the end of the calendar year to which the award applies. However, if
an eligible participant with three (3)&nbsp;or more months of active service in
the Program year subsequently retires, becomes disabled, dies, is
discharged from the employment of the Company without cause, or is on an
approved unpaid leave, the participant (or beneficiary) may be recommended
for an award which would otherwise be payable based on goal achievement,
prorated for the actual months of active service during the year.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Employees participating in any other incentive or bonus program of the
Corporation or a Subsidiary who are transferred during the year to a
position covered by the Annual Management Incentive Program will be
eligible to receive a potential award prorated for actual full months of
service in the two positions with the respective incentive program and
target incentive values to apply. For example, a Marketing Manager
promoted to Director, Marketing on August&nbsp;1, will be eligible to receive a
pro-rata award for seven months based on the Marketing Manager Plan
provisions and values, and for five months under the Annual Management
Incentive Program provisions and target incentive values.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of transfer of an employee from an assignment which does not
qualify for participation in any incentive or bonus plan to a position
covered by the Annual Management Incentive Program, the employee is
eligible to participate in the Annual Management Incentive Program with
any potential award prorated for the actual months of service in the
position covered by the Program during the year. A minimum of three
months of service in the eligible position is required.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Participation during the current Program year for individuals employed
from outside the Corporation is possible with any award to be prorated for
actual full months of service in the eligible position. A minimum of
three full months of eligible service is required for award consideration.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Exceptions to established administrative guidelines can only be made by
the Committee.</TD>
</TR>

</TABLE>


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