MOLEX INC
2005 MOLEX INCENTIVE STOCK OPTION PLAN, AS AMENDED AND RESTATED
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>5
<FILENAME>c23405exv10w3.htm
<DESCRIPTION>2005 MOLEX INCENTIVE STOCK OPTION PLAN, AS AMENDED AND RESTATED
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w3</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">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">EXHIBIT 10.3
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE 2005 MOLEX INCENTIVE STOCK OPTION PLAN</B><BR>
<I>(As Amended and Restated as of October&nbsp;26, 2006)</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="CENTER" colspan="7" style="border-bottom: 1px solid #000000"><B>PLAN HISTORY</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>PLAN ACTION</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>BOARD ADOPTION</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>STOCKHOLDER APPROVAL</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>EFFECTIVE DATE</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" align="center"><DIV style="margin-left:0px; text-indent:-0px">Original
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">July&nbsp;29, 2005
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">October&nbsp;28, 2005
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">October&nbsp;28, 2005</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"  align="center"><DIV style="margin-left:0px; text-indent:-0px">Amendment and
Restatement
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">October&nbsp;17, 2006
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N/A
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">October&nbsp;17, 2006</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="center"><DIV style="margin-left:0px; text-indent:-0px">Amendment and
Restatement
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">August&nbsp;10, 2007
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">October&nbsp;26, 2007
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">October&nbsp;26, 2007</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>THE 2005 MOLEX INCENTIVE STOCK OPTION PLAN</B></U><BR>
<I>(Effective October&nbsp;26, 2007)</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ARTICLE I. GENERAL</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1.1 Name of Plan. </B>The name of the plan described in detail herein shall be The 2005 Molex
Incentive Stock Option Plan (the &#147;Plan&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1.2 Purpose. </B>The purpose of the Plan is to induce certain designated employees and the directors
to remain in the employ of Molex Incorporated, a Delaware corporation (the &#147;Company&#148;), and any of
its subsidiaries, and to encourage such employees and directors to secure or increase on reasonable
terms their stock ownership in the Company. The Company believes the Plan will promote continuity
of management and increase incentive and personal interest in the welfare of the Company by those
who are primarily responsible for shaping, carrying out the long-range plans of the Company and
securing its continued growth and financial success. It is also the purpose of the Plan (except
where otherwise noted) to meet the requirements &#167;422(a) of the Internal Revenue Code, as amended.
Thus, all provisions of the Plan shall be interpreted and construed with this goal in mind.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1.3 Eligibility. </B>Members of the Board of Directors and executive officers of the Company, as such
are designated by the Board of Directors from time to time, are eligible to participate in the
Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ARTICLE II. TERM OF PLAN</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>2.1 Effective Date. </B>The Plan shall become effective upon adoption by the Board of Directors of the
Company subject to the subsequent approval by the stockholders of the Company within one (1)&nbsp;year
of adoption by the Board of Directors. If the stockholders do not approve the Plan within one (1)
year of adoption, then this Plan shall cease to exist and all options granted hereunder shall
become void.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>2.2 Expiration. </B>This Plan shall expire October&nbsp;31, 2010 and no option shall be granted on or after
such expiration date. However, expiration of the Plan shall not affect outstanding unexpired
options previously granted.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ARTICLE III. STOCK SUBJECT TO PLAN</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.1 Class of Stock. </B>The stock that shall be subject to option under the Plan shall be the
Company&#146;s Class&nbsp;A Common Stock, par value $.05 per share (the &#147;Stock&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.2 Number of Shares. </B>&#151; Five hundred thousand (500,000) shares of the Stock shall be reserved
for issue upon the exercise of options granted under the Plan. The Stock issued under the Plan may
be treasury shares purchased on the open market or otherwise, authorized but unissued shares, or
reacquired shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.3 Expired, Forfeited or Canceled Options. </B>If any such options granted under the Plan shall
expire, be forfeited or canceled for any reason without having been exercised in full, the
unexercised shares subject thereto shall again be available for the purpose of the Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ARTICLE IV. ADMINISTRATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.1 Committee. </B>The Compensation Committee of the Board shall administer the Plan under the terms
and conditions and powers set forth herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.2 Action by the Committee. </B>A majority of the members of the Committee shall constitute a quorum.
All determinations of the Committee shall be made by a majority of its members. Any decision or
determination reduced to writing and signed by a majority of the members of the Committee shall be
fully as effective as if it had been made by a majority vote at a meeting duly called and held.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If not specified in the Plan, the time at which the Committee must or may take any
determination shall be determined by the Committee, and such determination may thereafter by
modified by the Committee. Any action, determination, interpretation or other decision by the
Committee with respect to the Plan shall be in its sole discretion and be final, conclusive and
binding on all persons and entities, including the Company, its affiliates, any eligible employee,
any person claiming any rights under the Plan from or through any grantee of an award under the
Plan, and stockholders, except to the extent the Committee may subsequently modify, or take further
action not inconsistent with, its prior action.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</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">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.3 Power to Grant Options. </B>Subject to the express provisions of the Plan, the Committee shall
have complete authority, in its sole discretion, to determine the employees to whom, and the time
or times at which, options shall be granted, the option periods, the vesting schedule and the
number of shares to be subject to each option, and such other terms and provisions of the option
agreements (which need not be identical). In making such determinations, the Committee may take
into account the nature of the services rendered by the respective employee, his or her present and
potential contribution to the Company&#146;s success, and such other factors as the Committee in its
discretion shall deem relevant. With the exception of Section&nbsp;4.5, the Committee shall have no
power to grant options to directors who are not employees of the Company or to set the terms and
conditions thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.4 Grants of Incentive Stock Option and Nonqualified Stock Options. </B>The Committee shall have
complete authority, in its sole discretion, to determine at the time an option is granted whether
such option shall be an incentive stock option qualified under &#167;422 of the Internal Revenue Code,
as amended, (&#147;ISO&#148;) or whether such option shall be a nonqualified stock option. Unless the option
agreement states otherwise, all options granted shall be ISOs. The number of shares for which
options may be granted to any one person in any calendar year shall be limited and cannot exceed
the following:
</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>a.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Overall Limitation. </B>With respect to any option (whether ISOs or nonqualified), ten
percent (10%) of the number of shares reserved for the Plan as set forth in Section&nbsp;3.2
(adjusted as set forth in Article&nbsp;IX) or two hundred-fifty thousand (250,000) shares
(adjusted as set forth in Article&nbsp;IX), whichever is less.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>b.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Incentive Stock Option Limitation. </B>In addition, with respect to ISOs, the number of
shares that are subject to options that are first exercisable in any given succeeding
calendar year shall not have a fair market value (as determined on the date of grant) that
exceeds $100,000 less the aggregate fair market value (as determined at the respective
times of their grants) of those shares of all prior ISOs that are exercisable in said
succeeding calendar year.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.5 Automatic Grant of Options to Outside Directors. </B>Notwithstanding Sections&nbsp;4.3 and 4.4, each
director who is not an employee of the Company shall receive only an automatic nondiscretionary
stock option grant on the date of the Annual Stockholders Meeting every year during the term of the
Plan. Any option granted to a director who is not an employee of the Company shall be a
nonqualified stock option. The amount of shares subject to the options that will be automatically
granted to each outside director for each year shall be the amount of shares equal to 500
multiplied by the number of years of service or fraction thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notwithstanding the foregoing, no option grant to an outside director shall exceed the lesser of
5,000 shares or the number of shares whose fair market value on the date of grant does not exceed
$150,000.00.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.6 Other Powers. </B>The express grant of any specific power to the Committee, or the taking of any
action of the Committee, shall not be construed as limiting any power or authority of the
Committee. Subject to and consistent with the provisions of the Plan, the Committee shall have full
power and authority, in its sole discretion, to
</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>correct any defect or supply any omission or reconcile any inconsistency,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>construe and interpret the Plan, the rules and regulations relating to it, or any
other instrument entered into or relating to an award under the Plan,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make any determinations, provide any procedures or rules, enter into any agreements
necessary to comply with any applicable tax laws, rules and regulations,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make all other determinations, including factual determinations, necessary or
advisable for the administration of the Plan.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ARTICLE V. GRANT OF OPTION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.1 Option Price. </B>The option price shall be the fair market value of the Stock on the date of
granting the option. Notwithstanding, the foregoing, only in the case of an ISO grant, if an
optionee owns more than ten percent (10%) of the voting power of all classes of the Company&#146;s
stock, then the option price shall be one hundred-ten percent (110%) of the fair market value of
the Stock on the date of granting the option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.2 Fair Market Value. </B>For the purposes of this Plan, fair market value shall be the closing price
of the Stock on the date of granting the option as reported by the <I>Wall Street Journal</I>.
</DIV>


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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.3 Evidence of Option. </B>Options granted shall be evidenced by agreements, warrants, and/or other
instruments in such form as the Committee shall deem advisable and shall contain such terms,
provisions and conditions not inconsistent herewith as may be determined by the Committee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ARTICLE VI. EXERCISE OF OPTION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.1 Initial Waiting Period. </B>No option shall be exercisable until at least one (1)&nbsp;year after the
date of grant, unless one of the events set forth in Section&nbsp;6.4 occurs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.2 Vesting Periods. </B>After the initial waiting period, an optionee may exercise his option to the
extent that shares covered by said option become vested. The vesting schedule is as follows:
</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>a.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Normal Vesting. </B>If an option grant is an ISO, or if an option is granted to an
outside director, the shares covered by such an option shall vest to the maximum extent of
25% of the total number of shares covered thereby during each of the succeeding four (4)
years, each commencing with the anniversary of the grant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>b.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Other Vesting. </B>In all other options not falling within the scope of Section&nbsp;6.2a, the
shares covered by an option shall vest in amounts and at times the Committee, in its sole
discretion, shall determine. The Committee shall also specifically have the power to
change the vesting schedule of any previously granted options to a schedule which is more
favorable to the option holder; provided, however, that no such options shall vest in
amounts greater than, or at times prior to, the amounts and times such options would have
vested if such options were within the scope of Section&nbsp;6.2a.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>c.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Maximum Vesting. </B>Notwithstanding the foregoing, all options must vest one hundred
percent (100%) within ten (10)&nbsp;years from the date of grant.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.3 Cumulative Rights. </B>The right to exercise any option as set forth in Section&nbsp;6.2 shall be
cumulative. That is, an optionee may exercise in any given year those unexpired shares he could
have exercised in a previous year but did not.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.4 Accelerated Vesting. </B>Notwithstanding the foregoing, all options shall immediately vest and
become immediately exercisable for a period of one (1)&nbsp;year after one of the following events:
</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>a.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Death</B>; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>b.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Total disablement</B>; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>c.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Retirement</B>, if all of the following conditions are met at the time of termination of
employment:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(1)&nbsp;The optionee has reached age 59<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(2)&nbsp;The optionee was employed at least fifteen (15)&nbsp;consecutive years with the Company
and/or any of its subsidiaries; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(3)&nbsp;The Committee has determined that the reason for termination is due to retirement; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(4)&nbsp;The option is intended to be an ISO. If the option is not intended to be an ISO, the
Committee, in its sole discretion, may allow accelerated vesting to any extent it desires
without regard to whether the optionee is retiring.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.5 Expiration. </B>No option may be exercised more than two (2)&nbsp;years from the date the option
becomes one hundred percent (100%) vested. Notwithstanding the foregoing, all ISOs must be
exercised within one (1)&nbsp;year from the date the option becomes one hundred percent (100%) vested.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.6 Form of Exercise. </B>The option may only be exercised according to the terms and conditions
established by the Committee, consistent with the limits set forth herein, at the time the option
is granted. Subject to the foregoing terms and conditions, an option may be exercised by a written
notice delivered to the Company&#146;s principal office of intent to exercise the option with respect to
a specified number of shares of Stock and payment to the Company of the amount of the option
purchase price for the number of shares of Stock with respect to which the option is then
exercised. The payment may be either in cash or in stock of the Company. If stock is used for
payment, such stock shall be valued at the closing price as reported by the <I>Wall Street Journal </I>on
the date of exercise.
</DIV>


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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.7 Tax Withholding. </B>Option exercises under the Plan may be subject to income tax withholding, and
the Company would be obligated to collect the tax applicable to such income. The Committee may, in
its discretion, satisfy that tax obligation by withholding from the shares to be delivered in
connection with the award a number of shares having a value equal to the minimum statutory federal
income tax withholding, plus state, if applicable, and payroll taxes. The value of each share to
be withheld will be the fair market value of the Stock at the time of the exercise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>6.8 Rights as a Shareholder. </B>An optionee shall have no rights as a stockholder with respect to
shares covered by his option until the day of issuance of a stock certificate to him and until
after such shares are fully paid.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ARTICLE VII. TERMINATION OF OPTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Every option granted to each optionee under this Plan shall terminate and expire at the earliest of:
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the date of expiration set when such option was granted; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>one (1)&nbsp;year after one of the events set forth in Section&nbsp;6.4; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>immediately upon termination of employment of the optionee with the Company (or
termination of position as an outside director) or any of its subsidiaries for any
reason except if his employment is terminated by reason of one of the events set forth
in Section&nbsp;6.4.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ARTICLE VIII. TRANSFERABILITY</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>8.1 Non-Transferable. </B>Any option granted under the Plan is not transferable and can be exercised
only by the optionee during his life subject to Section&nbsp;8.2 of this Article.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>8.2 Death. </B>In the event of the death of an optionee while totally disabled, retired, or still
employed by the Company or a parent or a subsidiary, his option, to the extent he could have
exercised it on the date of his death, may be exercised by the personal representative of the
estate of the optionee within one (1)&nbsp;year after the date of his death in accordance with the terms
established by the Committee at the time the option was granted, but (as set forth in Article&nbsp;VII)
not later than the expiration date set forth in Section&nbsp;6.5.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ARTICLE IX. ADJUSTMENT OF NUMBER OF SHARES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>9.1 Stock Dividends. </B>In the event that a dividend shall be declared upon the Stock payable in
shares of stock of the Company, the number of shares of stock then subject to any such option and
the number of shares reserved for issuance pursuant to the Plan, but, not yet covered by an option,
shall be adjusted by adding to each such share the number of shares which would be distributable
thereon (or any equivalent value of Stock as determined by the Committee in its sole discretion) if
such share had been outstanding on the date fixed for determining the stock holders entitled to
receive such stock dividend.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>9.2 Reorganization. </B>In the event that the outstanding shares of Stock shall be changed into or
exchanged for a different number or kind of shares of stock or other securities of the Company, or
of another corporation, whether through reorganization, recapitalization, stock split up,
combination of shares, merger or consolidation, then, there shall be substituted for each share of
Stock subject to any such option and for each share of Stock reserved for issuance pursuant to the
Plan, but, not yet covered by an option, the number and kind of shares of stock or other securities
into which each outstanding share of Stock shall be so changed or for which each such share of
Stock shall be exchanged.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>9.3 Other Changes. </B>In the event there shall be any change, other than as specified above in this
Article, in the number or kind of outstanding shares of stock of the Company or of any stock or
other securities into which such stock shall have been changed or for which it shall have been
exchanged, then, if the Committee shall, in its sole discretion, determine that such change
equitably requires an adjustment in the number or kind of shares theretofore reserved for issuance
pursuant to the Plan, but, not yet covered by an option and of the shares then subject to an option
or options, such adjustments shall be made by the Committee and shall be effective and binding for
all purposes of the Plan and of each stock option agreement. Notwithstanding the foregoing, with
respect to options granted to directors, the Committee shall make those adjustments under this
Article&nbsp;IX only to the extent necessary to preserve the economic benefit of an unexercised option.
</DIV>


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



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>9.4 Adjusted Option Price. </B>In the case of any substitution or adjustment as provided for in this
Article, the option price in each stock option agreement for each share covered thereby prior to
such substitution or adjustment will be the option price for all shares of Stock or other
securities which shall have been substituted for such share or to which such share shall have been
adjusted pursuant to this Article.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>9.5 Fractional Shares. </B>No adjustment or substitutions provided for in this Article shall require
the Company to sell a fractional share, and the total substitution or adjustment with respect to
each stock option agreement shall be limited accordingly.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ARTICLE X. SECURITIES REGULATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>10.1 Registered Stock. </B>The Company shall not be obligated to sell or issue any shares under any
option granted hereunder unless and until the shares with respect to which the option is being
exercised are effectively registered or exempt from registration under the Securities Act of 1933
and from any other federal or state law governing the sale and issuance of such shares or any
securities exchange regulation to which the Company might be subject.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>10.2 Unregistered Stock. </B>In the event the shares are not effectively registered, but, can be
issued by virtue of an exemption, the Company may issue option shares to an optionee if the
optionee represents that he is acquiring such shares as an investment and not with a view to, or
for sale in connection with, the distribution of any such shares. Certificates for shares of Stock
thus issued shall bear an appropriate legend reciting such representation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ARTICLE XI. MISCELLANEOUS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>11.1 No Contract of Employment. </B>A grant or participation under the Plan shall not be construed as
giving an optionee a future right of employment with the Company. Employment remains at the will
of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>11.2 Governing Law. </B>This Plan and all matters relating to the Plan shall be interpreted and
construed under the laws of the State of Illinois.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>11.3 Amendment of Plan. </B>The Board of Directors, at its discretion, may amend the Plan at any time,
subject to stockholder approval if required by SEC rules or the listing requirements of any
national securities exchanges or trading systems on which any of the Company&#146;s equity securities
are listed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>11.4 Termination of Plan. </B>The Board of Directors may, at its discretion, terminate the Plan at any
time for any reason. Termination of the Plan shall not affect unexpired outstanding options
previously granted.
</DIV>



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



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
