GRAINGER W W INC
EX-10.A
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<TYPE>EX-10
<SEQUENCE>3
<FILENAME>exhibit10_a.htm
<DESCRIPTION>EX-10.A
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1990 LONG TERM STOCK
INCENTIVE PLAN </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As Amended April 28,
2004 </FONT></H1>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>W.W. Grainger, Inc.</B><BR>100 Grainger Parkway<br>
Lake Forest, Illinois
60045-5201<br>
(847) 535-1000</FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>W.W. GRAINGER, INC. <BR>1990 LONG TERM STOCK
INCENTIVE PLAN <BR>As Amended April 28,
2004 </FONT></H1>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 1. Objective. </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The objective of the
W.W.&nbsp;Grainger,&nbsp;Inc. 1990 Long Term Stock Incentive Plan (the &#147;Plan&#148;)
is to attract and retain the best available executive personnel and other key employees to
be responsible for the management, growth and success of the business, and to provide an
incentive for such employees to exert their best efforts on behalf of the Company and its
shareholders. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 2. Definitions. </FONT></H1>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.1.&nbsp;&nbsp;
          <I>General Definitions</I>. The following words and phrases, when used herein,
          shall have the following meanings: </FONT></P>

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          &#147;Act&#148; - The Securities Exchange Act of 1934, as amended. </FONT></TD>
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                      &#147;Agreement&#148; - The document which evidences the grant of any
                    Award under the Plan and which sets forth the terms, conditions, and limitations
                    relating to such Award. </FONT></TD>
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                     &#147;Award&#148; - The grant of any stock option, stock appreciation
                    right, share of restricted stock, share of phantom stock, other stock-based
                    award, or any combination thereof. </FONT></TD>
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                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d)&nbsp;&nbsp;
                      &#147;Board&#148; - The Board of Directors of
                    W.W.&nbsp;Grainger,&nbsp;Inc. </FONT></TD>
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                      &#147;Change in Control&#148; means any one or more of the following events: </FONT></TD>
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          approval by the shareholders of the Company of: </FONT></TD>
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           any merger, reorganization or consolidation of the Company or any Subsidiary
          with or into any corporation or other Person if Persons who were the beneficial
          owners (as such term is used in Rule 13d-3 under the Act) of Common Stock and
          securities of the Company entitled to vote generally in the election of
          directors (&#147;Voting Securities&#148;) immediately before such merger,
          reorganization or consolidation are not, immediately thereafter, the beneficial
          owners, directly or indirectly, of at least 60% of the then-outstanding common
          shares and the combined voting power of the then-outstanding Voting Securities
          (&#147;Voting Power&#148;) of the corporation or other Person surviving or
          resulting from such merger, reorganization or consolidation (or the parent
          corporation thereof) in substantially the same respective proportions as their&nbsp; </FONT></TD>
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          beneficial ownership, immediately before the consummation of such merger,
          reorganization or consolidation, of the then-outstanding Common Stock and Voting
          Power of the Company; </FONT></TD>
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           the sale or other disposition of all or substantially all of the consolidated
          assets of the Company, other than a sale or other disposition by the Company of
          all or substantially all of its consolidated assets to an entity of which at
          least 60% of the common shares and the Voting Power outstanding immediately
          after such sale or other disposition are then beneficially owned (as such term
          is used in Rule 13d-3 under the Act) by shareholders of the Company in
          substantially the same respective proportions as their beneficial ownership of
          Common Stock and Voting Power of the Company immediately before the consummation
          of such sale or other disposition; or </FONT></TD>
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           (C)&nbsp;&nbsp;&nbsp;a liquidation or dissolution of the Company; </FONT></TD>
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provided,
however, that if the consummation of an event described in this paragraph (i) (a
&#147;Transaction&#148;) is subject to an Other Party Approval Requirement (as defined
below), the approval of such Transaction by the shareholders of the Company shall not be
deemed a Change in Control until the first date on which such Other Party Approval
Requirement has been satisfied. For this purpose, &#147;Other Party Approval
Requirement&#148; means a requirement expressly set forth in a Transaction Agreement (as
defined below) between the Company and another Person to the effect that such Person shall
obtain the approval of one or more elements of the Transaction by the stockholders,
members, partners, or other holders of equity interests of such Person (or of a parent of
such Person) prior to the consummation of such Transaction in order to comply with the
mandatory provisions of (x) the law of the jurisdiction of the incorporation or
organization of such Person (or its parent) or (y) the articles of incorporation or other
charter or organizational documents of such Person (or its parent) that are applicable to
such Transaction. For this purpose, &#147;Transaction Agreement&#148; means a written
agreement that sets forth the terms and conditions of the Transaction; </FONT></TD>
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                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii)&nbsp;&nbsp;

                     the following individuals cease for any reason to constitute a majority of the
                    directors of the Company then serving: individuals who, on the Effective Date,
                    constitute the Board and any subsequently appointed or elected director of the
                    Company (other than a director whose initial assumption of office is in
                    connection with an actual or threatened election contest, including a consent
                    solicitation, relating to the election or removal of one or more directors of
                    the Company) whose appointment or election by the Board or nomination for
                    election by the Company&#146;s shareholders was approved or recommended by a
                    vote of at least two-thirds of the Company&#146;s directors then in office whose
                    appointment, election or&nbsp; </FONT></TD>
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                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> nomination for election was previously so approved or
                    recommended or who were directors on the Effective Date; or </FONT></TD>
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                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii)&nbsp;&nbsp;

                     the acquisition or holding by any person, entity or &#147;group&#148; (within
                    the meaning of Section 13(d)(3) or 14(d)(2) of the Act, other than by any Exempt
                    Person (as such term is defined below), the Company, any Subsidiary, any
                    employee benefit plan of the Company or a Subsidiary) of beneficial ownership
                    (within the meaning of Rule 13d-3 under the Act) of 20% or more of either the
                    Company&#146;s then-outstanding Common Stock or Voting Power; <U>provided</U>
                    that: </FONT></TD>
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           no such person, entity or group shall be deemed to own beneficially any
          securities held by the Company or a Subsidiary or any employee benefit plan (or
          any related trust) of the Company or a Subsidiary; </FONT></TD>
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           no Change in Control shall be deemed to have occurred solely by reason of any
          such acquisition if both (x) after giving effect to such acquisition, such
          person, entity or group has beneficial ownership of less than 30% of the
          then-outstanding Common Stock and Voting Power of the Company and (y) prior to
          such acquisition, at least two-thirds of the directors described in (and not
          excluded from) paragraph (ii) of this definition vote to adopt a resolution of
          the Board to the specific effect that such acquisition shall not be deemed a
          Change in Control; and </FONT></TD>
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           no Change in Control shall be deemed to have occurred solely by reason of any
          such acquisition or holding in connection with any merger, reorganization or
          consolidation of the Company or any Subsidiary which is not a Change in Control
          within the meaning of paragraph (i)(A) above. </FONT></TD>
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Notwithstanding
the occurrence of any of the events specified in paragraphs (i), (ii) or (iii) of this
definition, no Change in Control shall occur with respect to any Participant if
(x)&nbsp;the event which otherwise would be a Change in Control (or the transaction which
resulted in such event) was initiated by such Participant, or was discussed by him with
any third party, without the approval of the Board with respect to such Participant&#146;s
initiation or discussion, as applicable, or (y)&nbsp;such Participant is, by written
agreement, a participant on his own behalf in a transaction in which the persons (or their
affiliates) with whom such Participant has the written agreement cause the Change in
Control to occur and, pursuant to the written agreement, such Participant has an equity
interest (or a right to acquire such equity interest) in the resulting entity. </FONT></TD>
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                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(f)&nbsp;&nbsp;

                     &#147;Code&#148; - The Internal Revenue Code of 1986, as amended,
                    including the regulations promulgated pursuant thereto. </FONT></TD>
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                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(g)&nbsp;&nbsp;
                      &#147;Committee&#148; - The Compensation Committee of the Board, which
                    shall consist of two or more members. The members of the Committee shall be
                    &#147;non-employee directors&#148; within the meaning of Rule&nbsp;16b-3, as the
                    same may be amended or supplemented from time to time, as promulgated under the
                    Act. </FONT></TD>
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                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(h)&nbsp;&nbsp;

                     &#147;Common Stock&#148; - The present shares of common stock of the
                    Company, and any shares into which such shares are converted, changed or
                    reclassified. </FONT></TD>
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                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i)&nbsp;&nbsp;
                      &#147;Company&#148; - W.W.&nbsp;Grainger,&nbsp;Inc., an Illinois
                    corporation. </FONT></TD>
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                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(j)&nbsp;&nbsp;

                     &#147;Effective Date&#148; - December 9, 1998. </FONT></TD>
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                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(k)&nbsp;&nbsp;

                     &#147;Employee&#148; - Any person designated as an employee of the Company
                    or a Subsidiary on the payroll records thereof. </FONT></TD>
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                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(l)&nbsp;&nbsp;
                      &#147;Exempt Person&#148; means any one or more of the following: </FONT></TD>
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                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i)&nbsp;&nbsp;

                     any descendant of W.W. Grainger (deceased) or any spouse, widow or widower of
                    any such descendant (any such descendants, spouses, widows and widowers
                    collectively defined as the &#147;Grainger Family Members&#148;); </FONT></TD>
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                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii)&nbsp;&nbsp;

                     any descendant of E.O. Slavik (deceased) or any spouse, widow or widower of any
                    such descendant (any such descendants, spouses, widows and widowers collectively
                    defined as the &#147;Slavik Family Members&#148; and with the Grainger Family
                    Members collectively defined as the &#147;Family Members&#148;); </FONT></TD>
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                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii)&nbsp;&nbsp;

                     any trust which is in existence on the Effective Date and which has been
                    established by one or more Grainger Family Members, any estate of a Grainger
                    Family Member who died on or before the Effective Date, and The Grainger
                    Foundation (such trusts, estates and named entity collectively defined as the
                    &#147;Grainger Family Entities&#148;); </FONT></TD>
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                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv)&nbsp;&nbsp;

                     any trust which is in existence on the Effective Date and which has been
                    established by one or more Slavik Family Members, any estate of a Slavik Family
                    Member who died on or before the Effective Date, Mark IV Capital, Inc., and
                    Mountain Capital Corporation (such trusts, estates and named entities
                    collectively defined as the &#147;Slavik Family Entities&#148; and with the
                    Grainger Family Entities collectively defined as the &#147;Existing Family
                    Entities&#148;); </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(v)&nbsp;&nbsp;

                     any estate of a Family Member who dies after the Effective Date or any trust
                    established after the Effective Date by one or more Family Members or Existing
                    Family Entities; provided that one or more Family Members, Existing Family
                    Entities or charitable organizations which qualify as exempt organizations under
                    Section 501(c) of the Code&nbsp; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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<p align="center"><font face="Times New Roman" size="2">4</font></p>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<page>


<p>&nbsp;</p>
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (&#147;Charitable Organizations&#148;), collectively,
                    are the beneficiaries of at least 50% of the actuarially determined beneficial
                    interests in such estate or trust; </FONT></TD>
                    </TR>
                    </TABLE>
<p></p>
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(vi)&nbsp;&nbsp;

                     any Charitable Organization which is established by one or more Family Members
                    or Existing Family Entities (a &#147;Family Charitable Organization&#148;); </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(vii)&nbsp;&nbsp;

                     any corporation of which a majority of the voting power and a majority of the
                    equity interest is held, directly or indirectly, by or for the benefit of one or
                    more Family Members, Existing Family Entities, estates or trusts described in
                    clause (v) above, or Family Charitable Organizations; or </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(viii)&nbsp;&nbsp;

                     any partnership or other entity or arrangement of which a majority of the
                    voting interest and a majority of the economic interest is held, directly or
                    indirectly, by or for the benefit of one or more Family Members, Existing Family
                    Entities, estates or trusts described in clause (v) above, or Family Charitable
                    Organizations. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(m)&nbsp;&nbsp;

                     &#147;Fair Market Value&#148; - The fair market value of Common Stock on a
                    particular day shall be the closing price of the Common Stock on the New York
                    Stock Exchange, or any other national stock exchange on which the Common Stock
                    is traded, on the last preceding trading day on which such Common Stock was
                    traded. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(n)&nbsp;&nbsp;

                     &#147;Option&#148; - The right to purchase Common Stock at a stated price
                    for a specified period of time. For purposes of the Plan, the option is a
                    non-qualified stock option. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(o)&nbsp;&nbsp;

                     &#147;Other Stock Based Award&#148; - An award under Section 9 that is
                    valued in whole or in part by reference to, or is otherwise based on, the Common
                    Stock. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(p)&nbsp;&nbsp;

                     &#147;Participant&#148; - Any Employee designated by the Committee to
                    participate in the Plan. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(q)&nbsp;&nbsp;
                      &#147;Person&#148; - Any individual, corporation, partnership, limited
                    liability company, sole proprietorship, trust or other entity. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(r)&nbsp;&nbsp;

                     &#147;Period of Restriction&#148; - The period during which Shares of
                    Restricted Stock or Phantom Stock rights are subject to forfeiture or
                    restrictions on transfer pursuant to Section&nbsp;8 of the Plan. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(s)&nbsp;&nbsp;
                      &#147;Phantom Stock&#148; - A right to receive payment from the Company in
                    cash, stock, or in combination thereof, in an amount determined by the Fair
                    Market Value. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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<p align="center"><font face="Times New Roman" size="2">5</font></p>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<page>


<p>&nbsp;</p>
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(t)&nbsp;&nbsp;
                      &#147;Restricted Stock&#148; - Shares granted to a Participant which are
                    subject to restrictions on transferability pursuant to Section&nbsp;8 of the
                    Plan. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(u)&nbsp;&nbsp;

                     &#147;Shares&#148; - Shares of Common Stock. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(v)&nbsp;&nbsp;

                     &#147;Stock Appreciation Right&#148; or &#147;SAR&#148; - The right to
                    receive a payment from the Company in cash, Common Stock, or in combination
                    thereof, equal to the excess of the Fair Market Value of a share of Common Stock
                    on the date of exercise over a specified price fixed by the Committee, but
                    subject to such maximum amounts as the Committee may impose. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(w)&nbsp;&nbsp;

                     &#147;Subsidiary&#148; - Any corporation, partnership, joint venture,
                    limited liability company, or other entity in which the Company directly or
                    indirectly owns securities representing a majority of the aggregate voting
                    power. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.2.&nbsp;&nbsp;
          <I>Other Definitions</I>. In addition to the above definitions, certain words
          and phrases used in the Plan and any Agreement may be defined elsewhere in the
          Plan or in such Agreement. </FONT></P>

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<A NAME=A010></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 3. Common Stock. </FONT></H1>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.1.&nbsp;&nbsp;
          <I>Number of Shares</I>. Subject to the provisions of Section&nbsp;3.3, the
          number of Shares which may be issued or sold or for which Options or Stock
          Appreciation Rights may be granted under the Plan may not exceed 8,056,828
          Shares.</FONT><font face="Times New Roman, Times, Serif" size="1"><sup>1</sup></font><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Notwithstanding the foregoing, the total number of Shares
          with respect to which Options or Stock Appreciation Rights may be granted to any
          Participant shall not exceed 800,000 Shares<SUP>2</SUP> (proportionately
          adjusted pursuant to Section&nbsp;3.3) in any calendar year. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.2.&nbsp;&nbsp;
          <I>Re-usage</I>. If an Option or SAR expires or is terminated, surrendered, or canceled
          without having been fully exercised, if Restricted Stock is forfeited or
          cancelled, if Shares otherwise deliverable upon (i) exercise of Options, (ii)
          exercise of SARs, or (iii) vesting of Restricted Stock, regardless of when the
          Options, SARs or Restricted Stock shall have been granted, are not delivered by
          reason of payments of the Option exercise price pursuant to Section 6.5(b)
          hereunder or withholdings of Shares in satisfaction of tax obligations pursuant
          to under Section 14.4 hereunder, or if any other grant results in any Shares not
          being delivered, the Shares covered by such Option, SAR, grant of Restricted
          Stock, or other grants, or not so delivered, as the case may be, shall again be
          available for Awards under the Plan. Notwithstanding the foregoing, in cases of
          events, transactions or occurrences that would cause the Plan, in the event of
          such re-availability, to be deemed a &#147;formula plan&#148; within the meaning
          of Section 303A.08 of the New York Stock Exchange Listed Company Manual, as the
          same may be amended or interpreted by the New York Stock Exchange from time to
          time, the Shares shall again </FONT></P>


<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=LEFT>

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<P><font face="Times New Roman, Times, Serif" size="1"><sup>1</sup></font><FONT FACE="Times New Roman, Times, Serif" SIZE=1> As adjusted to reflect
(i) the number of shares remaining available for grants under the Company&#146;s Restated
1975 Non-Qualified Stock Option Plan, (ii) the Company&#146;s 1991 two-for-one stock split
and (iii)&nbsp;the Company&#146;s 1998 two-for-one stock split. </FONT></P>

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<P><font face="Times New Roman, Times, Serif" size="1"><SUP>2</SUP>  </font><FONT FACE="Times New Roman, Times, Serif" SIZE=1> As adjusted to reflect
the Company&#146;s 1998 two-for-one stock split. </FONT></P>






<p align="center"><font face="Times New Roman" size="2">6</font></p>
<HR SIZE=5 COLOR=GRAY NOSHADE>
<page>



<p>&nbsp;</p>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>be available for Awards under the Plan only by
          reason of such events, transactions or occurrences within a period of ten years
          following the date of the original approval of the Plan by the shareholders of
          the Company or, if later, the date of the most recent approval of the Plan,
          including without limitation any amendment to the Plan to increase the number of
          Shares available for Awards thereunder, by the shareholders of the Company. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.3.&nbsp;&nbsp;
          <I>Adjustments.</I> In the event of any change in the outstanding Common Stock
          by reason of a stock split, stock dividend, combination, reclassification or
          exchange of Shares, recapitalization, merger, consolidation or other similar
          event, the number of SARs and the number of Shares available for Options, grants
          of Restricted Stock, grants of Phantom Stock, and Other Stock-Based Awards and
          the number of Shares subject to outstanding Options, SARs, grants of Restricted
          Stock, grants of Phantom Stock, and Other Stock-Based Awards, and the price
          thereof, and the Fair Market Value, as applicable, shall be appropriately
          adjusted by the Committee in its sole discretion and any such adjustment shall
          be binding and conclusive on all parties. Any fractional Shares resulting from
          any such adjustment shall be disregarded. </FONT></P>

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<A NAME=A011></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 4. Eligibility
and Participation. </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Participants in the Plan shall be
those key employees selected by the Committee to participate in the Plan who hold
positions of responsibility and whose participation in the Plan the Committee or
management of the Company determines to be in the best interests of the Company. </FONT></P>

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<A NAME=A012></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 5.
Administration. </FONT></H1>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.1.&nbsp;&nbsp;
          <I>Committee</I>. The Plan shall be administered by the Committee. The members
          of the Committee shall be appointed by and shall serve at the pleasure of the
          Board, which may from time to time change the Committee&#146;s membership. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.2.&nbsp;&nbsp;
          <I>Authority</I>. The Committee shall have the sole and complete authority to: </FONT></P>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;

                     determine the individuals to whom Awards are granted, the type and amounts of
                    awards to be granted and the time of all such grants; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)&nbsp;&nbsp;

                     determine the terms, conditions and provisions of, and restrictions relating
                    to, each Award granted; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)&nbsp;&nbsp;

                     interpret and construe the Plan and all Agreements; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d)&nbsp;&nbsp;

                     prescribe, amend and rescind rules and regulations relating to the Plan; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e)&nbsp;&nbsp;

                     determine the content and form of all Agreements; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(f)&nbsp;&nbsp;

                     determine all questions relating to Awards under the Plan; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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<p align="center"><font face="Times New Roman" size="2">7</font></p>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<page>


<p>&nbsp;</p>
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(g)&nbsp;&nbsp;

                     maintain accounts, records and ledgers relating to Awards; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(h)&nbsp;&nbsp;

                     maintain records concerning its decisions and proceedings; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i)&nbsp;&nbsp;

                     employ agents, attorneys, accountants or other persons for such purposes as the
                    Committee considers necessary or desirable; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(j)&nbsp;&nbsp;

                     do and perform all acts which it may deem necessary or appropriate for the
                    administration of the Plan and to carry out the objectives of the Plan. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.3.&nbsp;&nbsp;
          <I>Determinations</I>. All determinations, interpretations, or other actions
          made or taken by the Committee pursuant to the provisions of the Plan shall be
          final, binding, and conclusive for all purposes and upon all persons. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.4.&nbsp;&nbsp;
          <I>Delegation</I>. Except as required by Rule&nbsp;16b-3 promulgated under the
          Act (and any successor to such Rule) with respect to the grant of Awards to
          Participants who are subject to Section&nbsp;16 of the Act, the Committee may
          delegate to appropriate senior officers of the Company its duties under the Plan
          pursuant to such conditions and limitations as the Committee may establish. </FONT></P>

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<A NAME=A013></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 6. Stock Options. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.1.&nbsp;&nbsp;
          <I>Type of Option</I>. It is intended that only non-qualified stock options may
          be granted by the Committee under this section of the Plan. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.2.&nbsp;&nbsp;
          <I>Grant of Option</I>. An Option may be granted to Participants at such time or
          times as shall be determined by the Committee. Each Option shall be evidenced by
          an Option Agreement that shall specify the exercise price, the duration of the
          Option, the number of Shares to which the Option applies, and such other terms
          and conditions not inconsistent with the Plan as the Committee shall determine. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.3.&nbsp;&nbsp;
          <I>Option Price</I>. The per share option price shall be at least 100% of the
          Fair Market Value at the time the Option is granted. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.4.&nbsp;&nbsp;
          <I>Exercise of Options</I>. Options awarded under the Plan shall be exercisable
          at such times and shall be subject to such restrictions and conditions,
          including the performance of a minimum period of service after the grant, as the
          Committee may impose, which need not be uniform for all participants; provided,
          however, that no Option shall be exercisable for more than 10 years after the
          date on which it is granted. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.5<I>.&nbsp;&nbsp;
          Payment</I>. Options shall be exercised by the delivery of a written notice to
          the Company, setting forth the number of Shares with respect to which the Option
          is to be exercised, and accompanied by full payment for the Shares. Upon the
          exercise of any Option, the exercise price shall be payable by any one or
          combination of the following means: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD><TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;
          cash or its equivalent, </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Project" -->
<p align="center"><font face="Times New Roman" size="2">8</font></p>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<page>


<p>&nbsp;</p>
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)&nbsp;&nbsp;

                     with the prior approval of the Committee, delivery of Shares already owned by
                    the participant and valued at the Fair Market Value thereof at the time of
                    exercise, </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Project" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)&nbsp;&nbsp;

                     with the prior approval of the Committee, a cashless exercise through a
                    broker-dealer approved for this purpose by the Company. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.6.&nbsp;&nbsp;
          <I>Rights as a Shareholder</I>. Until the exercise of an Option and the issuance
          of the Shares in respect thereof, a Participant shall have no rights as a
          Shareholder with respect to the Shares covered by such Option. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<A NAME=A014></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 7. Stock
Appreciation Rights. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.1.&nbsp;&nbsp;
          <I>Grant of Stock Appreciation Rights</I>. Stock Appreciation Rights may be
          granted to Participants at such time or times as shall be determined by the
          Committee and shall be subject to such terms and conditions as the Committee may
          decide. A grant of an SAR shall be made pursuant to a written Agreement
          containing such provisions not inconsistent with the Plan as the Committee shall
          approve. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.2.&nbsp;&nbsp;
          <I>Exercise of SARs</I>. SARs may be exercised at such times and subject to such
          conditions, including the performance of a minimum period of service, as the
          Committee shall impose. SARs which are granted in tandem with an Option may only
          be exercised upon the surrender of the right to exercise an equivalent number of
          Shares under the related Option and may be exercised only with respect to the
          Shares for which the related Option is then exercisable. Notwithstanding any
          other provision of the Plan, the Committee may impose conditions on the exercise
          of an SAR, including, without limitation, the right of the Committee to limit
          the time of exercise to specified periods. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.3.&nbsp;&nbsp;
          <I>Payment of SAR Amount</I>. Upon exercise of an SAR, the Participant shall be
          entitled to receive payment of an amount determined by multiplying: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Project" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;

                     any increase in the Fair Market Value of a Share at the date of exercise over
                    the Fair Market Value of a Share at the date of grant, by </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)&nbsp;&nbsp;
          the number of Shares with respect to which the SAR is exercised; </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>provided, however, that at the time
of grant, the Committee may establish, in its sole discretion, a maximum amount per Share
which will be payable upon exercise of an SAR. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.4.&nbsp;&nbsp;
          <I>Method of Payment</I>. Subject to the discretion of the Committee, which may
          be exercised at the time of grant, the time of payment, or any other time,
          payment of an SAR may be made in cash, Shares or any combination thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<A NAME=A015></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 8. Restricted
Stock or Phantom Stock. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P></P>

<p align="center"><font face="Times New Roman" size="2">9</font></p>
<HR SIZE=5 COLOR=GRAY NOSHADE>


<page>

<p>&nbsp;</p>
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.1.&nbsp;&nbsp;
          <I>Grant of Restricted Stock or Phantom Stock</I>. The Committee may grant
          Shares of Restricted Stock or Phantom Stock rights to such Participants at such
          times and in such amounts, and subject to such other terms and conditions not
          inconsistent with the Plan as it shall determine. Each grant of Restricted Stock
          or Phantom Stock rights shall be evidenced by a written Agreement setting forth
          the terms of such Award. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.2.&nbsp;&nbsp;
          <I>Restrictions on Transferability</I>. Restricted Stock or Phantom Stock rights
          may not be sold, transferred, pledged, assigned, or otherwise alienated until
          such time, or until the satisfaction of such conditions as shall be determined
          by the Committee (including without limitation, the satisfaction of performance
          goals, the occurrence of such events as shall be determined by the Committee, or
          pursuant to a determination under Section 14.1). At the end of the period of
          restriction applicable to any Restricted Stock, such Shares will be transferred
          to the Participant free of all restrictions. At the end of the restriction
          period applicable to Phantom Stock, payment shall be made in the manner set
          forth in the applicable award agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.3.&nbsp;&nbsp;
          <I>Rights as a Shareholder</I>. Unless otherwise determined by the Committee at
          the time of grant, Participants holding Restricted Stock granted hereunder may
          exercise full voting rights and other rights as a Shareholder with respect to
          those Shares during the period of restriction. Holders of Phantom Stock rights
          shall not be deemed Shareholders and, except to the extent provided in
          accordance with the Plan, shall have no rights related to any Shares. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.4.&nbsp;&nbsp;
          <I>Dividends and Other Distributions</I>. Unless otherwise determined by the
          Committee at the time of grant, Participants holding Restricted Stock shall be
          entitled to receive all dividends and other distributions paid with respect to
          those Shares, provided that if any such dividends or distributions are paid in
          shares of stock, such shares shall be subject to the same forfeiture
          restrictions and restrictions on transferability as apply to the Restricted
          Stock with respect to which they were paid. Unless otherwise determined by the
          Committee at the time of grant, Participants holding shares of Phantom Stock
          shall be entitled to receive cash payments equal to any cash dividends and other
          distributions paid with respect to a corresponding number of Shares; provided,
          however, that if any such dividends or distributions are paid in Shares, the
          Fair Market Value of such Shares shall be converted into shares of Phantom Stock
          which shall be subject to the same forfeiture restrictions and restrictions on
          transferability as apply to the shares of Phantom Stock with respect to which
          they are paid. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.5.&nbsp;&nbsp;
          <I>Payment of Phantom Stock Rights</I>. The Committee may, at the time of grant,
          provide for other methods of payment in respect of Phantom Stock rights in cash,
          Shares, partially in cash and partially in Shares, or in any other manner not
          inconsistent with this Plan. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<A NAME=A016></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 9. Other Stock
Based Awards and Other Benefits. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.1.&nbsp;&nbsp;
          <I>Other Stock Based Awards</I>. The Committee shall have the right to grant
          Other Stock Based Awards which may include, without limitation, the grant of
          Shares based on certain conditions, the payment of cash based on the performance
          of the Common&nbsp; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P></P>

<p align="center"><font face="Times New Roman" size="2">10</font></p>
<HR SIZE=5 COLOR=GRAY NOSHADE>

<page>


<p>&nbsp;</p>
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Stock, and the payment of Shares in lieu of cash under other
          Company incentive bonus programs. Payment under or settlement of any such Awards
          shall be made in such manner and at such times as the Committee may determine. </FONT></P>

     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.2.&nbsp;&nbsp;
          <I>Other Benefits</I>. The Committee shall have the right to provide types of
          Awards under the Plan in addition to those specifically listed utilizing shares
          of stock or cash, or a combination thereof, if the Committee believes that such
          Awards would further the purposes for which the Plan was established. Payment
          under or settlement of any such Awards shall be made in such manner and at such
          times as the Committee may determine. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<A NAME=A017></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 10. Amendment,
Modification, and Termination of Plan. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board at any time may terminate
or suspend the Plan, and from time to time may amend or modify the Plan. No amendment,
modification, or termination of the Plan shall in any manner adversely affect any Award
theretofore granted under the Plan to a Participant without the consent of such
Participant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<A NAME=A018></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 11. Termination
of Employment. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.1.&nbsp;&nbsp;
          <I>Termination of Employment Due to Retirement</I>. Unless otherwise determined
          by the Committee at the time of grant, in the event a Participant&#146;s
          employment terminates by reason of retirement, any Option or SAR granted to such
          Participant which is then outstanding may be exercised at any time prior to the
          expiration of the term of the Option or SAR or within six (6) years following
          the Participant&#146;s termination of employment, whichever period is shorter,
          and any Restricted Stock, Phantom Stock rights, or other Award then outstanding
          for which any restriction has not lapsed prior to the effective date of
          retirement shall be forfeited. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.2.&nbsp;&nbsp;
          <I>Termination of Employment Due to Death or Disability</I>. Unless otherwise
          determined by the Committee at the time of grant, in the event a
          Participant&#146;s employment is terminated by reason of death or disability,
          any Option or SAR granted to such Participant which is then outstanding may be
          exercised by the Participant, the Participant&#146;s designated beneficiary, the
          Participant&#146;s legal representative or other person entitled thereto, at any
          time prior to the expiration date of the term of the Option or SAR or within six
          (6) years following the Participant&#146;s termination of employment, whichever
          period is shorter, and any Restricted Stock, Phantom Stock rights, or other
          Award then outstanding shall become nonforfeitable and shall become transferable
          or payable, as the case may be, as though any restriction had expired. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.3.&nbsp;&nbsp;
          <I>Termination of Employment for Any Other Reason</I>. Unless otherwise
          determined by the Committee at the time of grant, in the event the employment of
          the Participant shall terminate for any reason other than misconduct or one
          described in Section&nbsp;11.1 or 11.2, any Option or SAR granted to such
          Participant which is then outstanding may be exercised by the Participant at any
          time prior to the expiration date of the term of the Option or SAR or within
          three (3) months following the Participant&#146;s termination of employment,
          whichever period is shorter; any Restricted Stock, Phantom Stock rights,&nbsp; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P></P>

<p align="center"><font face="Times New Roman" size="2">11</font></p>
<HR SIZE=5 COLOR=GRAY NOSHADE>


<page>

<p>&nbsp;</p>
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2> or
          other Award then outstanding for which any restriction has not lapsed prior to
          the date of termination of employment shall be forfeited upon termination of
          employment. If the employment of a Participant is terminated by the Company or a
          Subsidiary by reason of the Participant&#146;s misconduct, any outstanding
          Option or SAR shall cease to be exercisable on the date of the
          Participant&#146;s termination of employment; any Restricted Stock, Phantom
          Stock rights, or other Award then outstanding for which any restriction has not
          lapsed prior to the date of termination of employment shall be forfeited upon
          termination of employment. As used herein, &#147;misconduct&#148; means that the
          Participant has engaged, or intends to engage, in competition with the Company
          or a Subsidiary, has induced any customer of the Company or a Subsidiary to
          breach any contract with the Company or a Subsidiary, has made any unauthorized
          disclosure of any of the secrets or confidential information of the Company or a
          Subsidiary, has committed an act of embezzlement, fraud, or theft with respect
          to the property of the Company or a Subsidiary, or has deliberately disregarded
          the rules of the Company or a Subsidiary in such a manner as to cause any loss,
          damage, or injury to, or otherwise endanger the property, reputation, or
          employees of the Company or a Subsidiary. The Committee shall determine whether
          a Participant&#146;s employment is terminated by reason of misconduct. </FONT></P>

     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.4.&nbsp;&nbsp;
          <I>Accrual of Right at Date of Termination</I>. The Participant shall have the
          right to exercise an Option or SAR as indicated in Sections&nbsp;11.1, 11.2, and
          11.3 only to the extent the Participant&#146;s right to exercise such Option or
          SAR had accrued at the date of termination of employment pursuant to the terms
          of the Option or SAR Agreement and had not previously been exercised. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<A NAME=A019></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 12. Change in
Control. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Except as otherwise provided in an
Agreement, if a Change in Control occurs, then: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Project" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i)&nbsp;&nbsp;

                     the Participant&#146;s Restricted Stock, Phantom Stock, or Other Stock-Based
                    Awards that were forfeitable shall, unless otherwise determined by the
                    Committee, become nonforfeitable and, to the extent applicable, shall be
                    converted into Shares; and </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Project" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii)&nbsp;&nbsp;

                     any unexercised Option or SAR, whether or not exercisable on the date of such
                    Change in Control, shall thereupon be fully exercisable and may be exercised, in
                    whole or in part. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 13. Effect of
Disposition of Facility or Operating Unit. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the event that the Company or any
of its Subsidiaries closes or disposes of the facility at which a Participant is located
or the Company or any of its Subsidiaries diminish or eliminate ownership interests in any
operating unit of the Company or any of its Subsidiaries so that such operating unit
ceases to be majority owned by the Company or any of its Subsidiaries, then, with respect
to Awards held by Participants who subsequent to such event will not be employees of the
Company or any of its Subsidiaries, the Committee may (i)&nbsp;accelerate the
exercisability of Awards to the extent not yet oth-</FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<A NAME=A021></A>
<p ALIGN=LEFT></p>

<p align="center"><font face="Times New Roman" size="2">12</font></p>
<HR SIZE=5 COLOR=GRAY NOSHADE>


<page>

<p>&nbsp;</p>
<p ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>erwise exercisable or remove any
restrictions applicable to any Awards and (ii)&nbsp;extend the period during which Awards
will be exercisable to a date subsequent to the date when such Awards would otherwise have
expired by reason of the termination of such Participant&#146;s employment with the
Company or any of its Subsidiaries (but in no event to a date later than the expiration
date of the Awards or the fifth anniversary of the transaction in which such facility
closes or operating unit ceases). If the Committee takes no special action with respect to
any disposition of a facility or an operating unit, then any cessation of employment
resulting from such disposition will be treated as an ordinary cessation of employment as
described in Section&nbsp;11. </FONT></p>

<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 14.
Miscellaneous Provisions. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.1.&nbsp;&nbsp;
          <I>Non-transferability of Awards</I>. Unless otherwise determined by the
          Committee, whether at the time of grant or thereafter, and except as provided in
          Sections 11.2 and 14.2, no Awards granted under the Plan shall be assignable,
          transferable, or payable to or exercisable by anyone other than the Participant
          to whom it was granted. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.2&nbsp;&nbsp; <I>Beneficiary Designation.
</I>Unless otherwise determined by the Committee, whether at the time of grant or
thereafter, each Participant 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 in the event of such Participant&#146;s death before he or she receives any or all
of such benefit. Each such designation shall revoke all prior designations by such
Participant, shall be in a form prescribed by the Company, and will be effective only when
filed by the Participant in writing with the Company during the Participant&#146;s
lifetime. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.3.&nbsp;&nbsp;
          <I>No Guarantee of Employment or Participation</I>. Nothing in the Plan shall
          interfere with or limit in any way the right of the Company or a Subsidiary to
          terminate any Participant&#146;s employment at any time, nor confer upon any
          Participant any right to continue in the employment of the Company or a
          Subsidiary. No employee shall have a right to be selected as a Participant, or,
          having been so selected, to receive any future awards. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.4.&nbsp;&nbsp;
          <I>Tax Withholding</I>. The Company shall have the authority to withhold, or
          require a Participant to remit to the Company an amount sufficient to satisfy
          federal, state, and local withholding tax requirements on any Award under the
          Plan, and the Company may defer payment of cash or issuance of Shares until such
          requirements are satisfied. The Committee may, in its discretion, permit a
          Participant to elect, subject to such conditions as the Committee shall require,
          to have Shares otherwise issuable under the Plan withheld by the Company and
          having a Fair Market Value sufficient to satisfy all or part of the
          Participant&#146;s estimated total federal, state, and local tax obligation
          associated with the transaction. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.5.&nbsp;&nbsp;
          <I>Governing Law</I>. The Plan and all determinations made and actions taken
          pursuant hereto, to the extent not otherwise governed by the Code or Act, shall
          be governed by the law of the State of Illinois and construed in accordance
          therewith. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.6.&nbsp;&nbsp;
          <I>Effectiveness of Plan</I>. The Plan became effective upon its approval by the
          shareholders of the Company on April&nbsp;25,&nbsp;1990; provided, however, that
          no Award requiring the issuance of Shares shall be exercised or paid out unless
          at the time of such exercise or payout (i)&nbsp;such Shares are covered by a
          currently effective registration statement filed under the Securities Act of
          1933, as amended, if one is then required, or in the sole opinion of the Company
          and its counsel such issuance of Shares is otherwise exempt from the
          registration requirements of such act, and (ii)&nbsp;such Shares are listed on
          any securities exchange upon which the Common Stock of the Company is listed. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.7.&nbsp;&nbsp;
          <I>Termination of the 1975 Plan</I>. The Company&#146;s Restated 1975
          Non-Qualified Stock Option Plan shall be terminated as of the date of
          Shareholder approval of this Plan, provided, however, that such termination
          shall not affect any Options or Stock Appreciation Rights outstanding
          thereunder, all of which shall remain subject to and be governed by such plan. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.8.&nbsp;&nbsp;
          <I>Unfunded Plan</I>. Insofar as the Plan provides for Awards of cash, Shares,
          rights or a combination thereof, the Plan shall be unfunded. The Company may
          maintain bookkeeping accounts with respect to Participants who are entitled to
          Awards under the Plan, but such accounts shall be used merely for bookkeeping
          convenience. The Company shall not be required to segregate any assets that may
          at any time be represented by interests in Awards nor shall the Plan be
          construed as providing for any such segregation. None of the Committee, the
          Company or Board shall be deemed to be a trustee of any cash, Shares or rights
          to Awards granted under the Plan. Any liability of the Company to any
          Participant with respect to an Award or any rights thereunder shall be based
          solely upon any contractual obligations that may be created by the Plan and any
          Agreement, and no obligation of the Company under the Plan shall be deemed to be
          secured by any pledge or other encumbrance on any property of the Company. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.9.&nbsp;&nbsp;
          <I>Deferrals.</I> The Committee may permit 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 or SAR, the lapse or waiver of restrictions with respect to Restricted
          Stock or Phantom Stock, or the satisfaction of any requirements or goals with
          respect to Other Stock-Based Awards. If any such deferral election is permitted,
          the Committee shall, in its sole discretion, establish rules and procedures for
          such payment deferrals and the manner in which such deferral shall be
          accomplished. </FONT></P>

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