CHICAGO BRIDGE & IRON CO N V
1999 LONG-TERM INCENTIVE PLAN
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>h25857exv10w1.htm
<DESCRIPTION>1999 LONG-TERM INCENTIVE PLAN
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<P align="right" style="font-size: 10pt;"><B>Exhibit 10.1</B>
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<B>CHICAGO BRIDGE&nbsp;&#38; IRON</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>1999 LONG-TERM INCENTIVE PLAN</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Article&nbsp;1&nbsp;&#151; Establishment, Objectives and
Duration</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>1.1.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Establishment of the
Plan.</I> Chicago Bridge&nbsp;&#38; Iron Company, a Delaware
corporation (&#147;CB&#38;I&#148;), a wholly owned subsidiary of
Chicago Bridge&nbsp;&#38; Iron Company N.V., a Netherlands
corporation (the &#147;Company&#148;), hereby establishes an
incentive compensation plan to be known as the &#147;Chicago
Bridge&nbsp;&#38; Iron 1999 Long-Term Incentive Plan&#148; (the
&#147;Plan&#148;), as set forth in this document. The Plan
permits the grant of Nonqualified Stock Options, Incentive Stock
Options, Restricted Stock Shares, Restricted Stock Units,
Performance Shares and Performance Units.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>1.2</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Objectives of the
Plan.</I> The objectives of the Plan are to optimize the
profitability and growth of CB&#38;I, the Company and their
respective Subsidiaries, through incentives which are consistent
with CB&#38;I&#146;s goals and which link the personal interests
of Participants to those of the Company&#146;s shareholders; to
provide Participants with an incentive for excellence in
individual performance; and to promote teamwork among
Participants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Plan is further intended to provide flexibility to CB&#38;I
in its ability to motivate, attract, and retain the services of
Participants who make significant contributions to
CB&#38;I&#146;s success and to allow Participants to share in
the success of CB&#38;I.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>1.3.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Duration of the
Plan.</I> The Plan shall become effective as of May&nbsp;1, 1999
(the &#147;Effective Date&#148;), subject to its approval by the
shareholders of the Company, and shall remain in effect, subject
to the right of the Board of Directors to amend or terminate the
Plan at any time pursuant to Article&nbsp;14 hereof, until all
Shares subject to it shall have been purchased or acquired
according to the Plan&#146;s provisions.
</DIV>

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<B>Article&nbsp;2.&nbsp;&#151; Definitions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Whenever and wherever used in the Plan, the following terms
shall have the meanings set forth below, and when the meaning is
intended, the initial letter of the word shall be capitalized:
</DIV>

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<B>2.1.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Affiliate&#148;
</I>shall have the meaning ascribed to such term in
Rule&nbsp;12b-2 of the General Rules and Regulations under the
Exchange Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.2.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Award&#148;
</I>means, individually or collectively, a grant under this Plan
of Nonqualified Stock Options, Incentive Stock Options,
Restricted Stock Shares, Restricted Stock Units, Performance
Shares or Performance Units.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.3.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Award
Agreement&#148; </I>means an agreement setting forth the terms
and provisions applicable to an Award granted to a Participant
under this Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.4.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Beneficial
Owner&#148; </I>or <I>&#147;Beneficial Ownership&#148; </I>shall
have the meaning ascribed to such term in Rule&nbsp;13d-3 of the
General Rules and Regulations under the Exchange Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.5</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Board&#148;
</I>or <I>&#147;Board of Directors&#148; </I>means the Board of
Directors of CB&#38;I.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.6.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;CB&#38;I&#148;
</I>means Chicago Bridge&nbsp;&#38; Iron Company, a Delaware
corporation and the sponsor of the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.7.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Change in
Control,&#148; </I>unless otherwise defined in the Award
Agreement or other written agreement between the Participant and
the Company (or CB&#38;I or the Committee), will be deemed to
have occurred:
</DIV>

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    <TD width="3%"></TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;Any Person, other than the Company, any Subsidiary or
    any employee benefit plan (or related trust) of the Company or
    any such Subsidiary, becomes the Beneficial Owner of 25% or more
    of the total voting power of the Company&#146;s outstanding
    securities;</TD>
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    <TD style="font-size: 6pt">&nbsp;</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;During any period of two years or less, individuals who
    at the beginning of such period constituted the Supervisory
    Board of the Company cease for any reason to constitute at least
    a majority thereof; provided that any new member of the
    Supervisory Board who is nominated for election to the</TD>
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    Supervisory Board with the approval of at least 75% of the other
    members then still in office who were members at the beginning
    of the period shall be considered for purposes of this
    paragraph&nbsp;(b)&nbsp;as having been a member at the beginning
    of such period;&nbsp;or</TD>
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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;Upon the consummation of (i)&nbsp;any merger or other
    business combination of the Company with or into another
    corporation pursuant to which the persons who were the
    shareholders of the Company immediately before such consummation
    do not own, immediately after such consummation, more than 70%
    of the voting power and the value of the stock of the surviving
    corporation in substantially the same respective proportions as
    their ownership of the common stock of the Company immediately
    prior to such consummation, or (ii)&nbsp;the sale, exchange or
    other disposition of all or substantially all the consolidated
    assets of the Company.</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>&#147;Code&#148;
</I>means the Internal Revenue Code of 1986, as amended from
time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.9.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Committee&#148;
</I>means the Committee appointed by the Board to administer the
Plan as provided in Article&nbsp;3 herein or, to the extent it
functions as the Committee as provided in Article&nbsp;3 herein,
the Organization and Compensation Committee of the Supervisory
Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.10.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Company&#148;
</I>means Chicago Bridge&nbsp;&#38; Iron Company N.V., a
Netherlands corporation, including, as may be applicable to the
context, any and all Subsidiaries and Affiliates, and any
successor thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.11.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Director&#148;
</I>means any individual who is a member of the Board of
Directors of CB&#38;I or any Subsidiary or Affiliate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.12.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Disability&#148;
</I>shall mean a mental or physical condition of a Participant
which the Committee, on the basis of information satisfactory to
it, finds to be a permanent condition which renders such member
unfit to perform the duties of an Employee, as such duties shall
be determined by the Committee. Any determination of whether any
condition of a Participant constitutes Disability shall be made
under rules uniformly applied to all Participants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.13.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Effective
Date&#148; </I>shall have the meaning ascribed to such term in
Section&nbsp;1.3 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.14.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Employee&#148;
</I>means any employee of CB&#38;I or the Company or their
respective Subsidiaries and Affiliates. Directors who are not
employed by any of the foregoing shall not be considered
Employees under this Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.15.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Exchange
Act&#148; </I>means the Securities Exchange Act of 1934, as
amended from time to time, or any successor act thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.16.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Fair Market
Value&#148; </I>of Shares as of any date shall be determined on
the basis of the closing sale price of Shares on the principal
securities exchange on which the Shares are traded or if there
is no such sale on the relevant date, then on the last previous
day on which a sale was reported.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>&#147;Fiscal
Year&#148; </I>means a fiscal year of CB&#38;I.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.18.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Incentive
Stock Option&#148; </I>or <I>&#147;ISO&#148; </I>means an option
to purchase Shares which is designated as an Incentive Stock
Option and which is intended to meet the requirements of Code
Section&nbsp;422, granted to a Participant pursuant to
Article&nbsp;6 herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.19.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Named
Executive Officer&#148; </I>means a Participant who, as of the
last date of a taxable year of CB&#38;I, is one of the group of
&#147;covered employees,&#148; as defined in the regulations
promulgated under Code Section&nbsp;162(m), or any successor
statute.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.20.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Nonemployee
Director&#148; </I>means an individual who is a member of the
Supervisory Board but who is not an Employee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.21.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Nonqualified
Stock Option&#148; </I>or <I>&#147;NQSO&#148; </I>means an
option to purchase Shares which is not intended to meet the
requirements of Code Section&nbsp;422, granted to a Participant
pursuant to Article&nbsp;6 herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.22.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Option&#148;
</I>means an Incentive Stock Option or a Nonqualified Stock
Option.
</DIV>

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<B>2.23.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Option
Price&#148; </I>means the price at which a Share may be
purchased by a Participant pursuant to an Option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>&#147;Optionee&#148;
</I>means the Participant or, if the Participant has died, his
or her Beneficiary,<B> </B>or other person determined under
Section&nbsp;6.9, entitled to exercise any Option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>&#147;Participant&#148;
</I>means an Employee, Nonemployee Director or nonemployee
consultant to the Company who has outstanding an Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>&#147;Performance-Based
Exception&#148; </I>means the performance-based exception from
the tax deductibility limitations of Code Section&nbsp;162(m).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>&#147;Performance
Share&#148; </I>means an Award providing for the payment of a
variable number of Shares depending on the achievement of
performance goals, granted to a Participant pursuant to
Article&nbsp;8 herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.28.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>&#147;Performance
Unit&#148; </I>means an Award providing for the payment of an
amount based on either the Fair Market Value of Shares or the
appreciation in Fair Market Value of Shares upon the achievement
of performance goals, granted to a Participant, pursuant to
Article&nbsp;8 herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.29.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>&#147;Period of
Restriction&#148; </I>means the period during which the transfer
of Restricted Stock Shares or Restricted Stock Units is limited
in some way (based on the passage of time, the achievement of
performance goals, or upon the occurrence of other events, as
determined by the Committee, at its discretion), and the Shares
are subject to a substantial risk of forfeiture, as provided in
Article&nbsp;7 herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.30.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>&#147;Person&#148;
</I>shall have the meaning ascribed to such term in
Section&nbsp;3(a)(9) of the Exchange Act and used in
Sections&nbsp;13(d) and 14(d) thereof, and shall include a
&#147;group&#148; as defined in Section&nbsp;13(d) thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.31.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>&#147;Restricted
Stock&#148; </I>means Restricted Stock Shares or Restricted
Stock Units.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.32.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>&#147;Restricted
Stock Shares&#148; </I>means Shares which are issued and awarded
to Participants subject to a substantial risk of forfeiture and
restrictions on such Shares during the Period of Restriction as
provided in Article&nbsp;7 herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.33.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>&#147;Restricted
Stock Unit&#148; </I>means a bookkeeping unit that represents
the right of a Participant to be issued and to receive a Share
upon lapse of risks of forfeiture and restrictions on such Units
during the Period of Restriction, or at such later time as shall
be determined by the Committee in its discretion upon grant of
the Award or, with the consent of the Participant, after grant
of the Award, as provided in Article&nbsp;7 herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.34.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>&#147;Retirement&#148;
</I>means (i)&nbsp;a termination of employment after age&nbsp;55
and at least a 10&nbsp;year period of employment by CB&#38;I or
the Company or their respective present or former Subsidiaries
or Affiliates, or a 30-year period of such employment, or
age&nbsp;65, or (ii)&nbsp;solely in the case of an individual
who terminates service as a Nonemployee Director or service as a
nonemployee consultant to the Company, such termination
following the term of a Nonemployee Director or a resignation
required by age limitation, or the expiration of the term of a
consulting agreement; provided, however, that the Committee as
part of an Award Agreement or otherwise may provide that for
purposes of this Section, a Participant may be credited with
such additional years of age and employment as the Committee in
its sole discretion shall determine is appropriate, and may
provide such additional or different conditions for Retirement
as the Committee in its sole discretion shall determine is
appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.35.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>&#147;Shares&#148;
</I>means shares of common stock of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.36.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>&#147;Subsidiary&#148;
</I>means any corporation in which CB&#38;I or the Company owns
directly, or indirectly through subsidiaries, at least 50% of
the total combined voting power of all classes of stock, or any
other entity (including, but not limited to, partnerships and
joint ventures) in which CB&#38;I or the Company owns at least
50% of the combined equity thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>2.37.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>&#147;Supervisory
Board </I>means the Supervisory Board of the Company.
</DIV>

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<B>2.38.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>&#147;Vesting Date
</I>means with respect to Restricted Stock and Restricted Stock
Units the date (if any) on which the risks of forfeiture and
restrictions on such Restricted Stock Shares or Units during the
Period of Restriction have terminated (by their terms or by
other action of the Committee consistent with this Plan) and all
other conditions or restrictions applicable to such Restricted
Stock Shares or Units have been satisfied.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Article&nbsp;3.&nbsp;&#151; Administration</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>The Committee.</I>
The Plan shall be administered by a Committee, the members of
which shall be appointed from time to time by, and shall serve
at the discretion of, the Board; provided, however, that
(i)&nbsp;with respect to grants and Awards made or to be made to
or held by any member of such Committee or any Named Executive
Officer, the Plan shall be administered by the Organization and
Compensation Committee of the Supervisory Board; and
(ii)&nbsp;the Organization and Compensation Committee of the
Supervisory Board may in its sole discretion exercise directly
any power, right, duty or function of the Committee, including
but not limited to the grant or amendment of an Award to any
Employee, Nonemployee Director or nonemployee consultant to the
Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Authority of the
Committee.</I> Except as limited by law or by the Certificate of
Incorporation or Bylaws of CB&#38;I, and subject to the
provisions herein, the Committee shall have full power to select
Employees, Nonemployee Directors and nonemployee consultants to
the Company who shall participate in the Plan; determine the
sizes and types of Awards; determine the terms and conditions of
Awards in a manner consistent with the Plan; construe and
interpret the Plan and any agreement or instrument entered into
under the Plan as they apply to Employees; establish, amend, or
waive rules and regulations for the Plan administration as they
apply to Employees; and (subject to the provisions of
Article&nbsp;14 herein) amend the terms and conditions of any
outstanding Award to the extent such terms and conditions are
within the discretion of the Committee as provided in the Plan.
Further, the Committee shall make all other determinations which
may be necessary or advisable for the administration of the
Plan. As permitted by law, the Committee may delegate its
authority as specified herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>3.3</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decisions
Binding.</I> All determinations and decisions made by the
Committee pursuant to the Plan and all related orders and
resolutions of the Board shall be final, conclusive and binding
on all persons, including CB&#38;I, the Company, their
respective shareholders, Directors, members of the Supervisory
Board, Employees, Participants, and their estates and
beneficiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Article&nbsp;4.&nbsp;&#151; Shares Subject to the Plan and
Maximum Awards</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>4.1.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of Shares
Available for Grants.</I> Subject to adjustment as provided in
Section&nbsp;4.3 herein, the number of Shares reserved for
issuance to Participants under the Plan is
2,930,000<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>.
The maximum aggregate number of Shares with respect to which
Awards may be granted in any fiscal year to any Participant in
the form of Stock Options is
250,000<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>.
The maximum aggregate number of Shares with respect to which
Awards may be granted in the form of Restricted Stock Shares,
Restricted Stock Units, Performance Shares and Performance Units
combined in any fiscal year to any Participant is
125,000<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP>.
Shares awarded or to be awarded as Restricted Stock or other
Awards may be held during the Period of Restriction or prior to
transfer to the Participant in a trust of the kind commonly
known as a rabbi trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>4.2</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forfeited and
Reacquired Shares.</I> If any Shares subject to any Award are
forfeited or such Award otherwise terminates without the
issuance of such Shares or of other consideration in lieu of
such Shares, the<BR>
&nbsp;
</DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 0pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 20%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Equivalent to 11,720,000&nbsp;shares following the stock splits
    effective as of February&nbsp;3, 2003 and March&nbsp;31, 2005.</TD>
</TR>

</TABLE>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Equivalent to 1,000,000&nbsp;shares following the stock splits
    effective as of February&nbsp;3, 2003 and March&nbsp;31, 2005.</TD>
</TR>

</TABLE>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Equivalent to 500,000&nbsp;shares following the stock splits
    effective as of February&nbsp;3, 2003 and March&nbsp;31, 2005.</TD>
</TR>

</TABLE>

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<DIV align="left" style="font-size: 10pt;">
Shares subject to such Award, to the extent of any such
forfeiture or termination, shall again be available for grant
under the Plan. If Shares are applied to pay the Option price
upon exercise of an Option or to satisfy federal, state or local
tax withholding requirements pursuant Section&nbsp;15.2, the
Shares so applied shall be added to the Shares permitted under
the limitations of Section&nbsp;4.1 in determining the number of
Shares remaining for issuance and for grants of Awards with
respect to such Shares under the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>4.3.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments in
Authorized Shares.</I> In the event of any change in corporate
capitalization, such as a stock split, or a corporate
transaction, such as a merger, consolidation, separation,
spin-off, or other distribution of stock or property of the
Company, or any reorganization (whether or not such
reorganization comes within the definition of such term in Code
Section&nbsp;368) or any partial or complete liquidation of the
Company, the Committee shall adjust the number and class of
Shares which may be issued under Section&nbsp;4.1 and in the
limitation of Section&nbsp;4.1 on grants of Awards with respect
to Shares, in the number, class and/or price of Shares subject
to outstanding Awards, as the Committee in its sole discretion
determines to be appropriate and equitable to prevent dilution
or enlargement of rights; provided, however, that the number of
Shares subject to any Award shall always be a whole number.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>4.4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Fractional
Shares.</I> No fractional Shares shall be issued to Participants
under the Plan. If for any reason an Award or adjustment thereto
would otherwise result in the issuance of a fractional Share to
a Participant, the Company shall pay the Participant in cash the
Fair Market Value of such fractional Share.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Article&nbsp;5.&nbsp;&#151; Eligibility and Participation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>5.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Eligibility.</I>
Persons eligible to participate in this Plan include all
Employees who are in salary grades 16 and above, including
Employees who are members of the Board, Nonemployee Directors,
and nonemployee consultants performing services for the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>5.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Actual
Participation.</I> Subject to the terms and provisions of the
Plan, the Committee may, from time to time, select from all
eligible individuals those to whom Awards shall be granted and
shall determine the nature and amount of each Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Article&nbsp;6.&nbsp;&#151; Stock Options</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>6.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Grant of
Options.</I> Subject to the terms and provisions of the Plan,
the Committee may grant Options to Participants in such number,
and upon such terms, and at any time and from time to time, as
the Committee in its discretion may determine; provided,
however, that no Option intended to be an ISO may be granted to
a Nonemployee Director or nonemployee consultant to the Company.
The date an Option is granted shall be the day on which the
Committee acts to award a specific number of Shares to a
Participant at a specific Option Price, and shall be specified
in each Award Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>6.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Award Agreement.</I>
Each Option grant shall be evidenced by an Award Agreement that
shall specify the Option Price, the expiration date of the
Option, the number of Shares to which the Option pertains, and
such other provisions as the Committee shall determine. The
Award Agreement also shall specify whether or not the Option is
intended to be an ISO.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>6.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Option Price.</I>
The Option Price for each grant of an Option under this Plan
shall be at least equal to 100% of the Fair Market Value of a
Share on the date the Option is granted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>6.4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Duration of
Options.</I> Each Option shall expire at such time (not later
than the 10th anniversary of its date of grant) as the Committee
shall determine at the time of grant. If an Award Agreement does
not specify an expiration date, the Option shall expire on the
10th anniversary of its date of grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>6.5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Exercise of
Options.</I> Options shall be exercisable at such times and be
subject to such restrictions and conditions as the Committee
shall in each instance approve, which need not be the same for
each grant or for each Participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>6.6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Payment.</I> If the
Award Agreement does not otherwise specify the manner of
exercise, Options shall be exercised by the delivery of a
written notice of exercise to CB&#38;I identifying the Option(s)
being exercised, completed by the Optionee and delivered during
regular business hours to the office of the Secretary
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
of CB&#38;I, or sent by certified mail to the Secretary of
CB&#38;I, accompanied by a negotiable check or other cash
equivalent in full payment for the Shares. A copy of such notice
of exercise shall also be delivered by the Optionee to the
office of the Secretary of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the discretion of the Committee and as set forth in the Award
Agreement, the Optionee may pay the Option Price to CB&#38;I
upon exercise of any Option by tendering previously acquired
Shares which have been held by the Optionee for at least six
months and which have an aggregate Fair Market Value at the time
of exercise equal to the total Option Price, or by a combination
of such Shares and a check or other cash equivalent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Committee also may allow cashless exercise as permitted
under Federal Reserve Board&#146;s Regulation&nbsp;T, subject to
applicable securities law restrictions, or exercise by any other
means which the Committee determines to be consistent with the
Plan&#146;s purpose and applicable law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to any governing rules or regulations, as soon as
practicable after receipt of a written notification of exercise
and full payment, CB&#38;I shall deliver, or have delivered, to
the Optionee, in the Optionee&#146;s name, certificates for an
appropriate number of Shares based upon the number of Shares
purchased under the Option(s).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>6.7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Restrictions on
Share Transferability.</I> The Committee may impose such
restrictions on any Shares acquired pursuant to the exercise of
an Option under this Article&nbsp;6 as it may deem advisable,
including, without limitation, restrictions under applicable
securities laws and under the requirements of any stock exchange
or market upon which such Shares are then listed and/or traded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>6.8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Termination of
Employment.</I> Each Participant&#146;s Option Award Agreement
shall set forth the extent to which the Participant shall have
the right to exercise the Option following termination of the
Participant&#146;s employment as an Employee or service as a
Nonemployee Director or service as a nonemployee consultant to
the Company. Such provisions shall be determined in the sole
discretion of the Committee, shall be included in the Award
Agreement entered into with each Participant, need not be
uniform among all Options issued pursuant to this
Article&nbsp;6, and may reflect distinctions based on the
reasons for termination of employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>6.9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Nontransferability
of Options.</I>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <B>(a)&nbsp;</B><I>Incentive Stock Options.</I> No ISO may be
    sold, transferred, pledged, assigned, or otherwise alienated,
    other than by will or by the laws of descent and distribution.
    Further, all ISOs granted to a Participant under this
    Article&nbsp;6 shall be exercisable during his or her lifetime
    only by such Participant or by designation of a Beneficiary in
    accordance with Article&nbsp;10.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <B>(b)&nbsp;</B><I>Nonqualified Stock Options.</I> Except as
    otherwise provided in a Participant&#146;s Award Agreement, no
    NQSO may be sold, transferred, pledged, assigned or otherwise
    alienated or hypothecated, other than by will or by the laws of
    descent and distribution. Further, except as otherwise provided
    in a Participant&#146;s Award Agreement, all NQSOs granted to a
    Participant under this Article&nbsp;6 shall be exercisable
    during his or her lifetime only by such Participant or by
    designation of a Beneficiary in accordance with Article&nbsp;10.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Article&nbsp;7.&nbsp;&#151; Restricted Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>7.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Grant of Restricted
Stock.</I> Subject to the terms and provisions of the Plan, the
Committee may grant Awards of Restricted Stock Shares or
Restricted Stock Units to Participants in such amounts and upon
such terms, and at any time and from time to time, as the
Committee shall in its discretion determine.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>7.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Restricted Stock
Agreement.</I> Each Restricted Stock grant shall be evidenced by
a Restricted Stock Award Agreement that shall specify whether
the grant is an Award of Restricted Stock Shares or Restricted
Stock Units, the Period(s) of Restriction, the number of Shares
or Units of Restricted Stock granted, and such other provisions
as the Committee shall determine.
</DIV>

<P align="center" style="font-size: 10pt;">6

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>7.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Transferability.</I>
Except as otherwise provided in this Article&nbsp;7, Restricted
Stock Units may not be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated; and Restricted Stock Shares
may not be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated until the end of the applicable Period
of Restriction established by the Committee and specified in the
Restricted Stock Award Agreement, or upon earlier satisfaction
of any other conditions, as specified by the Committee in its
sole discretion and set forth in the Restricted Stock Award
Agreement. Except as otherwise provided in this Article&nbsp;7,
Restricted Stock Shares shall become freely transferable by the
Participant upon the Vesting Date, and Shares issued in respect
of Restricted Stock Units shall be freely transferable by the
Participant upon issuance to the Participant on or after the
Vesting Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>7.4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Other
Restrictions.</I> The Committee may impose such other conditions
and/or restrictions on any Shares or Units of Restricted Stock
granted pursuant to the Plan as it may deem advisable,
including, without limitation, a requirement that Participants
pay a stipulated purchase price at a stipulated time for each
Share or Unit of Restricted Stock, restrictions and conditions
of vesting or forfeiture based upon the achievement of specific
performance goals (Company-wide, divisional, and/or individual),
time-based restrictions on vesting following the attainment of
the performance goals, and/or restrictions under applicable
Federal or state securities laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the Restricted Stock Award is made in Restricted Stock
Shares, CB&#38;I shall retain the certificates representing
Shares in CB&#38;I&#146;s possession until the Vesting Date. If
the Restricted Stock Award is made in Restricted Stock Units, no
Shares shall be issued until the Vesting Date, but Shares shall
be issued in respect of such Units as of or after the Vesting
Date. In either case, certificates for Shares shall be delivered
to the Participant on or as soon as practicable after the
Vesting Date, or at such later time or times as shall be
determined by the Committee in its discretion upon grant of the
Award or, with the consent of the Participant, after grant of
the Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>7.5.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voting Rights.</I>
Unless otherwise provided in the Award Agreement, Participants
awarded Restricted Stock Shares hereunder which have not been
forfeited may exercise full voting rights with respect to those
Shares during the Period of Restriction. Restricted Stock Units
shall not confer any voting rights (unless and until Shares are
issued therefor on or after the Vesting Date).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>7.6.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend and Other
Distributions.</I> Unless otherwise provided in the Award
Agreement, if during the Period of Restriction prior to a
Vesting Date or forfeiture of Restricted Stock:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;Cash dividends are paid on Shares, (i)&nbsp;the Company
    shall pay Participants holding Restricted Stock Shares the
    regular cash dividends paid with respect to the Shares; and
    (ii)&nbsp;the Company shall pay Participants holding Restricted
    Stock Units an amount equal to the cash dividends paid on an
    equivalent number of Shares;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;Dividends in Shares are paid in Shares,
    (i)&nbsp;Participants holding Restricted Stock Shares shall be
    credited with such dividends as additional Restricted Stock
    Shares subject to the same restrictions as the underlying
    Shares; and (ii)&nbsp;Participants holding Restricted Stock
    Units shall be credited with additional Restricted Stock Units
    equivalent to such dividends, subject to the same restrictions
    as the underlying Units.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The Committee may in its discretion apply any restrictions to
the dividends that the Committee deems appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>7.7.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination of
Employment.</I> Except as otherwise provided in the Award
Agreement, if the Participant&#146;s employment as an Employee
or service as a Nonemployee Director or nonemployee consultant
to CB&#38;I or the Company or their respective Subsidiaries and
Affiliates terminates for any reason during the Period of
Restriction, all Restricted Stock as to which the Period of
Restriction has not yet expired or as to which a Vesting Date
has not otherwise occurred shall be forfeited. The Committee in
its discretion may set forth in the Award Agreement the extent
to which the Participant shall nevertheless have the right to
receive vested unrestricted Shares at or after termination of
the Participant&#146;s employment as an Employee or service as a
Nonemployee Director or nonemployee consultant. Such provisions
shall be determined in the sole discretion of the Committee,
shall be included in the Award Agreement entered into with each
Participant,
</DIV>

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<DIV align="left" style="font-size: 10pt;">
need not be uniform among all Shares or Units of Restricted
Stock issued pursuant to the Plan, and may reflect distinctions
based on the reasons for termination of employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>7.8.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rights Personal to
Participant.</I> All rights prior to the Vesting Date with
respect to the Restricted Stock granted to a Participant under
the Plan shall be available during his or her lifetime only to
such Participant, or in the event of the Participant&#146;s
death prior to the Vesting Date, to the Beneficiary designated
in accordance with Article&nbsp;10.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Article&nbsp;8.&nbsp;&#151; Performance Units and Performance
Shares</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>8.1.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grant of Performance
Units/ Shares.</I> Subject to the terms and provisions of the
Plan, the Committee may grant Awards of Performance Units and/or
Performance Shares to Participants in such amounts and upon such
terms, and at any time and from time to time, as the Committee
shall in its discretion determine.
</DIV>

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<B>8.2.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Value of Performance
Units/ Shares.</I> Each Performance Unit shall have an initial
value that is established by the Committee at the time of grant.
The Committee shall set performance goals in its discretion
which, depending on the extent to which they are met, will
determine the number and/or value of Performance Units/ Shares
that will be paid out to the Participant. For purposes of this
Article&nbsp;8, the time period during which the performance
goals must be met shall be called a &#147;Performance
Period.&#148;
</DIV>

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<B>8.3.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earning of
Performance Units/ Shares.</I> Subject to the terms of this
Plan, after the applicable Performance Period has ended, the
holder of Performance Units/ Shares shall be entitled to receive
payout on the number and value of Performance Units/ Shares
earned by the Participant over the Performance Period, to be
determined as a function of the extent to which the
corresponding performance goals have been achieved.
</DIV>

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<B>8.4.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form and Timing of
Payment of Performance Units/ Shares.</I> Payment of earned
Performance Units/ Shares shall be made in a single lump sum, as
soon as practicable after the Committee has certified the number
of Performance Units/ Shares earned for the Performance Period,
or at such later time or times as shall be determined by the
Committee in its discretion upon grant of the Award or, with the
consent of the Participant, after grant of the Award. Subject to
the terms of this Plan and except as otherwise provided in an
Award Agreement, the Committee shall pay earned Performance
Shares in Shares but may in its sole discretion pay earned
Performance Units in the form of cash or in Shares (or in a
combination thereof) which have an aggregate Fair Market Value
equal to the value as of the date of distribution of the number
of earned Performance Units at the close of the applicable
Performance Period. Such Shares may be granted subject to any
restrictions deemed appropriate by the Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unless otherwise provided in the Award Agreement, Participants
shall be entitled to receive any dividends paid with respect to
Shares which have been earned in connection with grants of
Performance Units/ Shares but not yet distributed to
Participants, such dividends to be subject to the same terms and
conditions as apply to dividends earned with respect to
Restricted Stock, as set forth in Section&nbsp;7.6 herein.
</DIV>

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<B>8.5.</B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination of
Employment Due to Death, Disability, or Retirement.</I> Unless
determined otherwise by the Committee and set forth in the
Participant&#146;s Award Agreement, in the event the employment
or service as a Nonemployee Director or nonemployee consultant
of a Participant is terminated by reason of death, Disability,
or Retirement during a Performance Period, the Participant shall
receive a payout of the Performance Units/ Shares in a reduced
amount prorated according to the ratio of the length of
Participant&#146;s employment or service in the Performance
Period to the length of the Performance Period, as specified by
the Committee in its discretion. Payment of earned Performance
Units/ Shares shall be made at a time specified by the Committee
in its sole discretion and set forth in the Participant&#146;s
Award Agreement. Notwithstanding the foregoing, with respect to
Named Executive Officers who retire during a Performance Period,
payments shall be made at the same time as payments are made to
Participants who did not terminate employment or service during
the applicable Performance Period.
</DIV>

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<B>8.6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Termination of
Employment for Other Reasons.</I> In the event that a
Participant&#146;s employment or service terminates for any
reason other than those reasons set forth in Section&nbsp;8.5
herein, all Performance
</DIV>

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Units/ Shares shall be forfeited by the Participant to CB&#38;I
unless determined otherwise by the Committee, as set forth in
the Participant&#146;s Award Agreement.
</DIV>

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<B>8.7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Nontransferability.</I>
Except as otherwise provided in a Participant&#146;s Award
Agreement, Performance Units/ Shares may not be sold,
transferred, pledged, assigned, or otherwise alienated, other
than by will or by the laws of descent and distribution or by
designation of a Beneficiary in accordance with Article&nbsp;10.
Further, except as otherwise provided in a Participant&#146;s
Award Agreement, a Participant&#146;s rights under the Plan
shall be exercisable during the Participant&#146;s lifetime only
by the Participant or the Participant&#146;s legal
representative.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Article&nbsp;9.&nbsp;&#151; Performance Measures</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The performance measure(s) to be used for purposes of Awards to
Named Executive Officers which are designed to qualify for the
Performance-Based Exception shall be chosen from among operating
income, earnings (either before or after any of interest, taxes,
depreciation and amortization), net income (before or after
taxes), after-tax return on investment, sales, revenue, earnings
per share (excluding special charges, as reported to
shareholders), total shareholder return, return on equity, total
business return, return of invested capital, operating cash
flow, free cash flow, economic value added, new business taken
(measured by revenue, net income or operating income), and
contract backlog, in each case where applicable determined
either on a Company-wide basis or in respect of any one or more
business units, including any fixed combination of those
performance measures and using target levels or target growth
rates of any of those performance measures.
</DIV>

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The Committee shall have the discretion to adjust the
determinations of the degree of attainment of the
pre-established performance goals; provided, however, that
Awards to Named Executive Officers, which are designed to
qualify for the Performance-Based Exception, may not be adjusted
upward (the Committee shall retain the discretion to adjust such
Awards downward).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the event that the Committee determines that it is advisable
to grant Awards which shall not qualify for the
Performance-Based Exception, the Committee may make such grants
without satisfying the requirements of Code Section&nbsp;162(m).
</DIV>

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<B>Article&nbsp;10.&nbsp;&#151; Beneficiary Designation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each Participant under the Plan may, from time to time, name any
beneficiary or beneficiaries (who may be named contingently or
successively) to whom any benefit under the Plan is to be paid,
to exercise any Stock Option, or succeed to the ownership of any
Restricted Stock Performance Units/ Shares or other Award as
provided in this Plan, in case of his or her death before he or
she receives any or all of such benefit. Each such designation
shall revoke all prior designations by the same Participant,
shall be in a form prescribed by the Committee, and will be
effective only when filed by the Participant in writing with the
Committee during the Participant&#146;s lifetime. In the absence
of any such designation, benefits remaining unpaid at the
Participant&#146;s death shall be paid to the Participant&#146;s
estate.
</DIV>

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<B>Article&nbsp;11.&nbsp;&#151; Deferrals</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Committee may, subject to Section&nbsp;14.3, in the Award
Agreement or otherwise, permit or require a Participant to defer
such Participant&#146;s receipt of the payment of cash or the
delivery of Shares that would otherwise be due to such
Participant by virtue of the exercise of an Option, the lapse or
waiver of restrictions with respect to Restricted Stock, or the
satisfaction of any requirements or goals with respect to
Performance Units/ Shares. If any such deferral election is
required or permitted, the Committee shall, in its sole
discretion, establish rules and procedures for such payment
deferrals.
</DIV>

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<B>Article&nbsp;12.&nbsp;&#151; Rights of Employees</B>
</DIV>

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<B>12.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Employment.</I>
Nothing in the Plan shall interfere with or limit in any way the
right of CB&#38;I to terminate any Participant&#146;s employment
at any time, nor confer upon any Participant any right to
continue in the employ of CB&#38;I.
</DIV>

<P align="center" style="font-size: 10pt;">9

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<B>12.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Participation.</I>
No Employee, Nonemployee Director or nonemployee consultant
shall have the right to be selected to receive an Award under
this Plan, or, having been so selected, to be selected to
receive a future Award.
</DIV>

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<B>Article&nbsp;13.&nbsp;&#151; Change in Control</B>
</DIV>

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<B>13.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Treatment of
Outstanding Awards.</I> Upon the occurrence of a Change in
Control, unless otherwise specifically prohibited under
applicable laws, or by the rules and regulations of any
governing governmental agencies or national securities
exchanges, or unless otherwise provided in an Award Agreement or
other written agreement between a Participant and the Company
(or CB&#38;I or the Committee), then with respect to each Award
outstanding on the date of the Change in Control:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;Any and all Options granted hereunder shall become
    immediately exercisable, and shall remain exercisable throughout
    their entire term;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;Any restriction periods and restrictions imposed on
    Restricted Shares shall lapse;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;The target payout opportunities attainable under all
    outstanding Awards of Restricted Stock, Performance Units and
    Performance Shares shall be deemed to have been fully earned for
    the entire Performance Period(s) as of the effective date of the
    Change in Control. The vesting of all Awards denominated in
    Shares shall be accelerated as of the effective date of the
    Change in Control, and there shall be paid out in cash to
    Participants within 30&nbsp;days following the effective date of
    the Change in Control an amount based upon an assumed
    achievement of all relevant performance goals.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>13.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Termination,
Amendment, and Modifications of Change-in-Control
Provisions.</I> Notwithstanding any other provision of this Plan
or any provision of any Award Agreement, the provisions of this
Article&nbsp;13 may not be terminated, amended, or modified on
or after the date of Change in Control to affect adversely any
Award theretofore granted without the prior written consent of
the Participant with respect to said Participant&#146;s
outstanding Awards; provided, however, the Board, upon
recommendation of the Committee, may terminate, amend, or modify
this Article&nbsp;13 at any time and from time to time prior to
the date of a Change of Control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Article&nbsp;14.&nbsp;&#151; Amendment, Modification, and
Termination</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>14.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Amendment,
Modification, and Termination.</I> The Board may at any time and
from time to time, alter, amend, suspend or terminate the Plan
in whole or in part.
</DIV>

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<B>14.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Adjustment of
Awards Upon the Occurrence of Certain Unusual or Nonrecurring
Events.</I> The Committee may make adjustments in the terms and
conditions of, and the criteria included in, Awards in
recognition of unusual or nonrecurring events (including,
without limitation, the events described in Section&nbsp;4.3
hereof) affecting CB&#38;I or the Company, or the financial
statements of CB&#38;I or the Company, or of changes in
applicable laws, regulations or accounting principles, whenever
the Committee determines that such adjustments are appropriate
in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan.
</DIV>

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<B>14.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Awards Previously
Granted.</I> The Committee may amend or modify any outstanding
Award Agreement in any manner consistent with this Plan for an
original Award Agreement, provided, however, that no amendment
or modification of an Award Agreement shall adversely affect in
any material way the Award previously granted without the
written consent of the Participant holding such Award. No
termination, amendment or modification of the Plan shall
adversely affect in any material way any Award previously
granted without the written consent of the Participant holding
such Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Article&nbsp;15&nbsp;&#151; Withholding</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>15.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Tax
Withholding.</I> CB&#38;I shall have the power and the right to
deduct or withhold, or require a Participant to remit to
CB&#38;I, an amount sufficient to satisfy Federal, state, and
local taxes, domestic or
</DIV>

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

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foreign, required by law or regulation to be withheld with
respect to any taxable event arising as a result of this Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>15.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Share
Withholding.</I> With respect to withholding required upon the
exercise of Options, upon the lapse of restrictions on
Restricted Stock, or upon any other taxable event arising as a
result of Awards granted hereunder, Participants may elect,
subject to the approval of the Committee, to satisfy the
withholding requirement, in whole or in part, by having CB&#38;I
withhold Shares having a Fair Market Value on the date the tax
is to be determined equal to the minimum statutory total tax
which could be imposed on the transaction. All such elections
shall be irrevocable, made in writing, and shall be subject to
any restrictions or limitations that the Committee, in its sole
discretion, deems appropriate.
</DIV>

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<B>Article&nbsp;16.&nbsp;&#151; Indemnification</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each person who is or shall have been a member of the Committee,
or of the Board, shall be indemnified and held harmless by
CB&#38;I against and from any loss, cost, liability, or expense
that may be imposed upon or reasonably incurred by him or her in
connection with or resulting from any claim action, suit, or
proceeding to which he or she may be party or in which he or she
may be involved by reasons of any action taken or failure to act
under the Plan and against and from any and all amounts paid by
him or her in settlement thereof, with CB&#38;I&#146;s approval,
or paid by him or her in satisfaction of any judgment of any
such action, suit, or proceeding against him or her, provided he
or she shall give CB&#38;I an opportunity, at its own expense,
to handle and defend the same before he or she undertakes to
handle and defend it on his or her own behalf. The foregoing
right of indemnification shall not be exclusive of any other
rights of indemnification to which such persons may be entitled
under the Company&#146;s Articles of Association,
CB&#38;I&#146;s Certificate of Incorporation or Bylaws, any
agreement, as a matter of law, or otherwise, or any power that
CB&#38;I may have to indemnify them or hold them harmless.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Article&nbsp;17.&nbsp;&#151; Successors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All obligations of CB&#38;I under the Plan with respect to
Awards granted hereunder shall be binding on any successor to
CB&#38;I, whether such successor arises as a result of a direct
or indirect purchase, merger, consolidation, or otherwise, of
all or substantially all of the business and/or assets of
CB&#38;I.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Article&nbsp;18.&nbsp;&#151; Legal Construction</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>18.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Gender and
Number.</I> Except where otherwise indicated by the context, any
masculine term used herein also shall include the feminine; the
plural shall include the singular and the singular shall include
the plural.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>18.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Severability.</I>
In the event any provision of the Plan shall be held illegal or
invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of the Plan, and the Plan shall be
construed and enforced as if the illegal or invalid provision
had not been included.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>18.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Requirements of
Law.</I> The granting of Awards and the issuance of Shares under
the Plan shall be subject to all applicable laws, rules and
regulations, and to such approvals by any governmental agencies
or national securities exchanges as may be required.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>18.4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Securities Law
Compliance.</I> Transactions under this Plan are intended to
comply with all applicable conditions of Rule&nbsp;16b-3 under
the Exchange Act (or any successor rule). To the extent any
provision of the Plan or action by the Committee fails to so
comply, it shall be deemed null and void, to the extent
permitted by law and deemed advisable by the Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>18.5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><I>Governing Law.</I>
To the extent not preempted by federal law, the Plan and all
agreements hereunder, shall be construed in accordance with and
governed by the laws of the state of Illinois, without regard to
its provisions regarding conflict of laws.
</DIV>

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