LUBRIZOL CORP
EXHIBIT 10.1
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<DESCRIPTION>EXHIBIT 10.1
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;10.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">THE LUBRIZOL CORPORATION 2005 STOCK INCENTIVE PLAN<BR>
(As Amended December&nbsp;12, 2006)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;1. Purpose.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purposes of The Lubrizol Corporation 2005 Stock Incentive Plan are to encourage selected
employees of The Lubrizol Corporation and its Subsidiaries and Outside Directors of the Company to
acquire a proprietary and vested interest in the growth and performance of the Company, to generate
an increased incentive to contribute to the Company&#146;s future success and prosperity, thus enhancing
the value of the Company for the benefit of shareholders, and to enhance the ability of the Company
and its Subsidiaries to attract and retain individuals of exceptional talent upon whom, in large
measure, the sustained progress, growth and profitability of the Company depends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;2. Definitions.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">As used in the Plan, the following terms have the meanings set forth below:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &#147;Award&#148; means any Option, Stock Appreciation Right, Restricted Stock Award,
Restricted Stock Unit Award, or Stock Award granted pursuant to the provisions of the Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &#147;Award Agreement&#148; means a written document evidencing any Award granted hereunder,
signed by the Company and delivered to the Participant or Outside Director, as the case may
be.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &#147;Board&#148; means the Board of Directors of the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &#147;Code&#148; 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: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &#147;Committee&#148; means a committee of not less than three (3)&nbsp;Outside Directors of the
Board, each of whom must be a &#147;disinterested person&#148; within the meaning of Rule&nbsp;16b-3(d)(3)
promulgated by the Securities and Exchange Commission under the Securities Exchange Act of
1934, as amended (the &#147;Exchange Act&#148;), or any successor rule or statute.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) &#147;Company&#148; means The Lubrizol Corporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) &#147;Employee&#148; means any employee of the Company or of any Subsidiary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) &#147;Fair Market Value&#148; means the closing price of a Share on the New York Stock
Exchange on the Grant Date (in the case of a Grant), or any other relevant date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &#147;Full-value Awards&#148; means Awards that result in the Company transferring the full
value of any underlying Share issued in the transaction. Full-value Awards will include
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">all
Restricted Stock Awards, performance shares, performance rights, Stock-settled SARs, and
certain other stock based Awards.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) &#147;Grant Date&#148; means the date on which the Board approves the grant of an Option,
Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award or Stock
Award, and, with respect to a Restricted Stock Unit Award granted to an Outside Director,
the date specified pursuant to Section&nbsp;10 on which such Award is granted.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) &#147;Incentive Stock Option&#148; means an Option that is intended to meet the requirements
of Section&nbsp;422A of the Code or any successor provision thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) &#147;Non-Statutory Stock Option&#148; means an Option that is not intended to be an
Incentive Stock Option.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) &#147;Option&#148; means an option to purchase Shares granted hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) &#147;Option Price&#148; means the purchase price of each Share under an Option.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) &#147;Outside Director&#148; means a member of the Board who is not an employee of the
Company or of any Subsidiary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) &#147;Participant&#148; means an Employee who is selected by the Committee to receive an
Award under the Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) &#147;Plan&#148; means The Lubrizol Corporation 2005 Stock Incentive Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) &#147;Restricted Stock Award&#148; means an award of restricted Shares under Section&nbsp;8
hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) &#147;Restricted Stock Unit Award&#148; means an award of restricted stock units under
Section&nbsp;10 hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) &#147;Restriction Period&#148; means the period of time specified in an Award Agreement
during which the following conditions remain in effect: (i)&nbsp;certain restrictions on the sale
or other disposition of Shares awarded under the Plan, (ii)&nbsp;subject to the terms of the
applicable Award Agreement, the continued employment of the Participant, and (iii)&nbsp;other
conditions forth in the applicable Award Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) &#147;Shareholders&#146; Meeting&#148; means the annual meeting of shareholders of the Company in
each year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) &#147;Shares&#148; means common shares without par value of the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) &#147;Stock Appreciation Right&#148; means the right to receive a payment in cash or in
Shares, or in any combination thereof, from the Company equal to the excess of the Fair
Market Value of a stated number of Shares at the exercise date over a fixed price for such
Shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) &#147;Stock Award&#148; means the grant of Shares under the Plan.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) &#147;Stock-settled SAR&#148; means the grant of a Stock Appreciation Right whereby the
appreciation of the underlying Shares (the value to the Employee from the exercise of any
Stock Appreciation Right grant) is settled in Shares, either for the full number of
Shares or the appreciation net of any tax obligation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) &#147;Subsidiary&#148; means a corporation which is at least 80% owned, directly or
indirectly, by the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) &#147;Voting Stock&#148; means the then-outstanding securities entitled to vote generally in
the election of directors of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;3. Administration.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan is administered by the Committee. Members of the Committee are appointed by and
serve at the pleasure of the Board, and may resign by written notice filed with the Chairman of the
Board or the Secretary of the Company. A vacancy on the Committee will be filled by the appointment
of a successor member by the Board. Subject to the express provisions of this Plan, the Committee
has conclusive authority to select Employees to be Participants for Awards and determine the type
and number of Awards to be granted, to construe and interpret the Plan, any Award granted
hereunder, and any Award Agreement entered into hereunder, and to establish, amend, and rescind
rules and regulations for the administration of this Plan and has additional authority as the Board
may from time to time determine to be necessary or desirable. Notwithstanding the foregoing, the
Committee does not have the discretion with respect to Restricted Stock Awards granted to Outside
Directors pursuant to Section&nbsp;10 as to prevent any Award granted under this Plan from meeting the
requirements for exemption from Section 16(b) of the Exchange Act, as set forth in Rule&nbsp;16b-3
thereunder or any successor rule or statute.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;4. Shares Subject to the Plan.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to adjustment as provided in the Plan, the maximum number of shares as to
which Awards may be granted under this Plan is 4,000,000 Shares, of which no more than
2,000,000 Shares can be settled as full-value Awards; provided, however, that no more than
500,000 Shares will be available for grant to any Participant during a calendar year. In
addition to the stated maximums described above, this Plan provides the Committee with the
flexibility to convert the Shares reserved solely for Options and the grant of Stock
Appreciation Rights into &#147;full value&#148; awards (e.g., restricted stock, performance shares,
etc.). Specifically:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) For every Option or Stock Appreciation Right granted, the number of Shares
available for grant shall be reduced by one Share for every one Share granted;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For each of the first 2,000,000 Shares granted as Awards other than
Options or the grant of a Stock Appreciation Right, the number of Shares available
for grant shall be reduced by one Share for every one Share granted;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) For any Awards settled as a full-value Award in excess of the 2,000,000
Share limit, the number of Shares available for grant shall be reduced by three
Shares for every one Share granted
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">For example, if we issue 2,000,000 Shares as performance shares prior to exhausting
our pool of shares for Options, the Committee has the flexibility to
convert a portion of the remaining options into other Award types, but it must be
consistent with the 3-to-1 ratio described above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company believes this provision provides for the maximum equity plan design
flexibility while continuing to protect the long-term interests of shareholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Shares issued hereunder may consist, in whole or in part, of authorized and
unissued Shares or treasury shares. If: (i)&nbsp;any Shares subject to any Award granted
hereunder are forfeited, (ii)&nbsp;any Award otherwise terminates without the issuance of Shares
or payment of other consideration in lieu of Shares; (iii)&nbsp;Shares are used to pay the
exercise price of an Option; or (iv)&nbsp;Shares are withheld from issuance to pay withholding
taxes, the Shares subject to the Award, to the extent of any such forfeiture, termination or
withholding, will not again be available for issuance under the Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The number of Shares which remain available for issuance pursuant to this Plan,
together with Shares subject to outstanding Awards, at the time of any change in the
Company&#146;s capitalization, including stock splits, stock dividends, mergers, reorganizations,
consolidations, recapitalizations, or other changes in corporate structure will be
appropriately and proportionately adjusted to reflect such change in capitalization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;5. Eligibility.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any Employee is eligible to be selected as a Participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;6. Stock Options.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Statutory Stock Options and Incentive Stock Options may be granted hereunder to
Participants either separately or in conjunction with other Awards granted under the Plan. Any
Option granted to a Participant under the Plan will be evidenced by an Award Agreement in the form
as the Committee may from time to time approve. Any Option will be subject to the following terms
and conditions and to any additional terms and conditions, not inconsistent with the provisions of
the Plan, as the Committee deems desirable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Option Price. The purchase price per Share under an Option will be fixed by the
Committee in its sole discretion; provided that the purchase price will not be less than one
hundred percent (100%) of the Fair Market Value of the Share on the Grant Date of the
Option. Payment of the Option Price may be made in cash, Shares, or a combination of cash
and Shares, as provided in the Award Agreement relating thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Option Period. The term of each Option will be fixed by the Committee in its sole
discretion; provided that no Incentive Stock Option may be exercisable after the expiration
of ten years from the Grant Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Exercise of Option. Options may be exercisable to the extent of fifty percent (50%)
of the Shares subject thereto after one year from the Grant Date, seventy-five percent (75%)
of such Shares after two years from the Grant Date, and one hundred percent (100%) of such
Shares after three years from the Grant Date, subject to any
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">provisions respecting the
exercisability of Options that may be contained in an Award Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Incentive Stock Options. The aggregate Fair Market Value of the Shares with respect
to which Incentive Stock Options held by any Participant which are exercisable for the first
time by such Participant during any calendar year under the Plan (and under any other
benefit plans of the Company, of any parent corporation, or Subsidiary) will not exceed
$100,000 or, if different, the maximum limitation in effect at the Grant Date under Section
422A of the Code, or any successor provision, and any regulations promulgated thereunder.
The terms of any Incentive Stock Option granted hereunder will comply in all respects with
the provisions of Section&nbsp;422A of the Code, or any successor provision, and any regulations
promulgated thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;7. Stock Appreciation Rights.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Appreciation Rights may be granted hereunder to Participants either separately or in
conjunction with other Awards granted under the Plan and may, but need not, relate to a specific
Option granted under Section&nbsp;6. The provisions of Stock Appreciation Rights need not be the same
with respect to each Participant. Any Stock Appreciation Right related to a Non-Statutory Stock
Option may be granted at the same time such Option is granted or at any time thereafter before
exercise or expiration of such Option. Any Stock Appreciation Right related to an Incentive Stock
Option must be granted at the same time such Option is granted. Any Stock Appreciation Right
related to an Option will be exercisable only to the extent the related Option is exercisable. In
the case of any Stock Appreciation Right related to any Option, the Stock Appreciation Right or
applicable portion thereof terminates and is no longer exercisable upon the termination or exercise
of the related Option. Similarly, upon exercise of a Stock Appreciation Right as to some or all of
the Shares covered by a related Option, the related Option will be canceled automatically to the
extent of the Stock Appreciation Rights exercised, and such Shares will not thereafter be eligible
for grant under Section&nbsp;4(a). The Committee may impose any conditions or restrictions on the
exercise of any Stock Appreciation Right as it deems appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;8. Restricted Stock Awards.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Issuance. Restricted Stock Awards may be issued hereunder to Participants, either
separately or in conjunction with other Awards granted under the Plan. Each Award under this
Section&nbsp;8 will be evidenced by an Award document from the Company which will specify the
vesting schedule, any rights of acceleration and such other terms and conditions as the
Board determines, which need not be the same with respect to each Participant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Registration. Shares issued under this Section&nbsp;8 will be evidenced by issuance of a
stock certificate or certificates registered in the name of the Participant bearing the
following legend and any other legend required by, or deemed appropriate under, any federal
or state securities laws:
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The sale or other transfer of the common shares represented by this certificate is
subject to certain restrictions set forth in the Award document granted to
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</U>
(the registered owner) by The Lubrizol Corporation dated
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, under The Lubrizol Corporation 2005 Stock Incentive Plan. A copy
of the Plan and Award document may be obtained from the Secretary of The Lubrizol
Corporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Unless otherwise provided in the Award document from the Company, the certificates will be
retained by the Company until the expiration of the Restriction Period. Upon the
expiration of the Restriction Period, the Company will (i)&nbsp;have the legend removed from the
certificates for the Shares to which a Participant is entitled in accordance with the Award
document from the Company and (ii)&nbsp;release the Shares to the custody of the Participant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Forfeiture. Except as otherwise determined by the Committee at the Grant Date, upon
separation of service of the Participant for any reason during the Restriction Period, all
Shares still subject to restriction will be forfeited by the Participant and retained by the
Company; provided that in the event of a Participant&#146;s retirement, permanent disability,
death, or in cases of special circumstances, the Committee may, in its sole discretion, when
it finds that a waiver would be in the best interests of the Company, waive in whole or in
part any or all remaining restrictions with respect to the Participant&#146;s Shares. In such
case, unrestricted Shares will be issued to the Participant at the time determined by the
Committee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Rights as Shareholders. At all times during the Restriction Period, Participants
will be entitled to full voting rights with respect to all Shares awarded under this Section
8 and will be entitled to dividends with respect to the Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;9. Stock Awards.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Awards of Shares may be granted hereunder to Participants, either separately or in conjunction
with other Awards granted under the Plan. Subject to the provisions of the Plan, the Committee has
the sole and complete authority to determine (i)&nbsp;the Employees to whom Awards will be granted, (ii)
the time or times at which the Awards will be granted, (iii)&nbsp;the number of Shares to be granted
pursuant to the Awards, and (iv)&nbsp;all other conditions of the Awards. Conditions may include
issuance of Shares at the time of the Award is granted or issuance of Shares at a time or times
subsequent to the time the Award is granted, which subsequent times may be specifically established
by the Committee and/or may be determined by reference to the satisfaction of one or more
performance measures specified by the Committee. The provisions of Stock Awards need not be the
same with respect to each Participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;10. Outside Directors&#146; Restricted Stock Unit Awards.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the close of business on the date of each Annual Meeting of Shareholders, each
Outside Director will automatically be granted a number of Restricted Stock Units equal to
an amount calculated by dividing $70,000 by the Fair Market Value of a Share on the Grant
Date, which will be subject to the following terms and conditions and to any additional
terms and conditions, not inconsistent with the provisions of the Plan, as are contained in
the applicable Award Agreement.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Vesting. Restricted Stock Unit Awards granted pursuant to this Section&nbsp;10 will
vest upon the earliest to occur of the following dates:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) one year after the Grant Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) separation from service under a retirement plan or policy of the Company;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) death while serving as a director; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Change of Control pursuant to Section&nbsp;11.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;11. Change in Control.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the provisions of Sections 6(c) and 10(a), outstanding Options will become
100% exercisable and any other outstanding Awards hereunder will become fully vested and without
any restrictions upon the occurrence of any Change in Control (as hereafter defined) of the
Company; except that no Option may be exercised prior to the end of six months from the Grant Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the provisions of Section&nbsp;8 and the applicable Award Agreement, any
outstanding Restricted Stock Awards will become fully vested and without any restrictions upon the
occurrence of any Change in Control of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For all purposes of the Plan, a &#147;Change in Control&#148; will occur if any of the following events
occurs:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company is merged, consolidated or reorganized into or with another corporation
or other legal person, and immediately after such merger, consolidation or reorganization
less than a majority of the combined voting power of the then-outstanding securities of such
corporation or person immediately after such transaction are held in the aggregate by the
holders of Voting Stock of the Company immediately prior to such transaction;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company sells all or substantially all of its assets to any other corporation
or other legal person, and less than a majority of the combined voting power of the
then-outstanding securities of such corporation or person immediately after such sale are
held in the aggregate by the holders of Voting Stock of the Company immediately prior to
such sale;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There is a report filed on Schedule&nbsp;13D or Schedule&nbsp;14D-l (or any successor
schedule, form or report), each as promulgated pursuant to the Exchange Act, disclosing that
any person (as the term &#147;person&#148; is used in Section&nbsp;13(d)(3) or Section&nbsp;14(d)(2) of the
Exchange Act) has become the beneficial owner (as the term &#147;beneficial owner&#148; is defined
under Rule&nbsp;13(d)(3) or any successor rule or regulation promulgated under the Exchange Act)
of securities representing 20% or more of the Voting Stock;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company files a report or proxy statement with the Securities and Exchange
Commission pursuant to the Exchange Act disclosing in response to Form&nbsp;8-K
</DIV>

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</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">or Schedule&nbsp;14A
(or any successor schedule, form or report or item therein) that a change in control of the
Company has or may have occurred or will or may occur in the future pursuant to any
then-existing contract or transaction; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If during any period of two consecutive years, individuals who at the beginning of
any such period constitute the Directors of the Company cease for any reason to constitute
at least a majority thereof, provided, however, that for purposes of this Section&nbsp;11(e),
each Director who is first elected, or first nominated for election by the Company&#146;s
stockholders, by a vote of at least two thirds of the Directors of the Company (or a
committee thereof)
then still in office who were Directors of the Company at the beginning of any such
period will be deemed to have been a Director of the Company at the beginning of such
period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing provisions of Section 11(c) or 11(d) hereof, unless otherwise
determined in a specific case by majority vote of the Board, a &#147;Change in Control&#148; will not occur
for purposes of the Plan solely because (i)&nbsp;the Company, (ii)&nbsp;an entity in which the Company
directly or indirectly beneficially owns 50% or more of the voting securities, or (iii)&nbsp;any
employee stock ownership plan or any other employee benefit plan sponsored by the Company, either
files or becomes obligated to file a report or a proxy statement under or in response to Schedule
13D, Schedule&nbsp;14D-l, Form 8-K or Schedule&nbsp;14A (or any successor schedule, form or report or item
therein) under the Exchange Act, disclosing beneficial ownership by it of shares of Voting Stock,
whether in excess of 20% or otherwise, or because the Company reports that a change in control of
the Company has or may have occurred or will or may occur in the future by reason of such
beneficial ownership.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;12. Amendments and Termination.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board may, at any time, amend, alter or terminate the Plan, but no amendment, alteration,
or termination may be made that would impair the rights of an Outside Director or Participant under
an Award previously granted, without the Outside Director&#146;s or Participant&#146;s consent, or that
without the approval of the shareholders would:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) except as is provided in Sections 4(b) and 13(c) of the Plan, increase the total
number of Shares which may be issued under the Plan;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) change the class of employees eligible to participate in the Plan; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) materially increase the benefits accruing to Participants under the Plan;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">so long as such approval is required by law or regulation; provided that, as long as required by
law or regulation, the provisions of Section&nbsp;10 hereof may not be amended or altered more than once
every six (6)&nbsp;months, other than to comport with changes in the Code, the Employee Retirement
Income Security Act, or the rules thereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Committee may amend the terms of any Award heretofore granted (except, with respect to
Restricted Stock Awards granted pursuant to Section&nbsp;10 hereof, only to the extent not inconsistent
with Rule&nbsp;16b-3 under the Exchange Act or any successor rule or statute), prospectively or
retroactively, but no such amendment may impair the rights of any Participant or Outside Director
without his consent.
</DIV>

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</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;13. General Provisions.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Option or other Award may be assignable or transferable by a Participant or an
Outside Director otherwise than by will or the laws of descent and distribution, and Options
and Stock Appreciation Rights may be exercised during the Participant&#146;s lifetime only by the
Participant, or, if permissible under applicable law, by the guardian or legal
representative of the Participant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The term of each Award will be for a period of months or years from its Grant Date
as may be determined by the Committee or as set forth in the Plan; provided that in no
event may the term of any Incentive Stock Option or any Stock Appreciation Right
related to any Incentive Stock Option exceed a period of ten (10)&nbsp;years from the Grant Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of a merger, reorganization, consolidation, recapitalization, stock
dividend or other change in corporate structure such that Shares are changed into or become
exchangeable for a larger or smaller number of Shares, thereafter the number of Shares
subject to outstanding Awards granted to Participants and to any Shares subject to Awards to
be granted to Participants pursuant to this Plan will be increased or decreased, as the case
may be, in direct proportion to the increase or decrease in the number of Shares by reason
of such change in corporate structure; provided, however, that the number of Shares will
always be a whole number, and the purchase price per Share of any outstanding Options will,
in the case of an increase in the number of Shares, be proportionately reduced, and, in the
case of a decrease in the number of Shares, be proportionately increased. The above
adjustment will also apply to any Shares subject to Restricted Stock Awards granted to
Outside Directors pursuant to the provisions of Section&nbsp;10.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Employee may have any claim to be granted any Award under the Plan and there is
no obligation for uniformity of treatment of Employees or Participants under the Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The prospective recipient of any Award under the Plan will not, with respect to the
Award, be deemed to have become a Participant, or to have any rights with respect to the
Award, until and unless the recipient complies with the then applicable terms and
conditions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All certificates for Shares delivered under the Plan pursuant to any Award will be
subject to any stock-transfer orders and other restrictions as the Committee deems advisable
under the rules, regulations, and other requirements of the Securities and Exchange
Commission, any stock exchange upon which the Shares are then listed, and any applicable
federal or state securities law, and the Committee may cause a legend or legends to be put
on any such certificates to make appropriate reference to such restrictions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Except as otherwise required in any applicable Award document or by the terms of
the Plan, Participants will not be required, under the Plan, to make any payment other than
the rendering of services.
</DIV>

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</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company is authorized to withhold from any payment under the Plan, whether the
payment is in Shares or cash, all withholding taxes due in respect of the payment hereunder
and to take such other action as may be necessary in the opinion of the Company to satisfy
all obligations for the payment of such taxes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Nothing contained in this Plan prevents the Board from adopting other or additional
compensation arrangements, subject to shareholder approval if such approval is required; and
such arrangements may be either generally applicable or applicable only in specific cases.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Nothing in the Plan interferes with or limits in any way the right of the Company
or any Subsidiary to terminate any Participant&#146;s employment at any time, nor does the Plan
confer upon any Participant any right to continued employment with the Company or any
Subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;14. Effective Date of the Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan will be effective upon adoption of the Plan by the Board of Directors of the Company.
The Plan will be submitted to the shareholders of the Company for approval within one year after
its adoption by the Board of Directors, and if the Plan is not approved by the shareholders, the
Plan will be void and of no effect. Any Awards granted under the Plan prior to the date the Plan
is submitted for approval by the shareholders will be void if the shareholders do not approve the
Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;15. Expiration of the Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Awards may be granted under this Plan at any time prior to April&nbsp;1, 2010, on which date the
Plan will expire but without affecting any outstanding awards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">121206lmre
</DIV>


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</DIV>

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