PUBLIC SERVICE ELECTRIC & GAS CO
<DOCUMENT>
<TYPE>EX-10.A5
<SEQUENCE>11
<FILENAME>c52299_ex10a-5.htm
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>

<P ALIGN=RIGHT><FONT SIZE=2><B>Exhibit 10a(5)</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED<BR>
2007 EQUITY COMPENSATION PLAN FOR OUTSIDE DIRECTORS</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>I.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>PURPOSE</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
purpose of this Public Service Enterprise Group Incorporated 2007 Equity
Compensation Plan for Outside Directors is to advance the interests of the
Company and its stockholders by assisting the Company in attracting and
retaining individuals of superior talent, ability and achievement to serve on
its Board of Directors. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is intended that the Plan will be interpreted and administered to prevent
taxation under Section 409A of the Code. Any provision of or amendment to this
Plan that would cause any amount to be taxable under Section 409A with respect
to any individual is void and without effect. Any election by any partici&#173;pant,
and any administrative action by the Committee that would cause any amount to
be taxable under Section 409A with respect to any individual is void and
without effect under the Plan. In the event that a Participant fails to make a
Section 409A-compliant payment election, the Plan&#146;s default payment provisions,
as set forth in Subsection V.G and Article VIII, shall apply. It is further
intended that the Plan will be amended in accordance with present and future
guidance issued by the Treasury Department under Section 885 of the American
Jobs Creation Act of 2004.</FONT></P>

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<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>II.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>DEFINITIONS</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following words and phrases shall have the meanings set forth below unless a
different meaning is required by the context:</FONT></P>

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<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Annual
  Meeting</U>: The Annual Meeting of Stockholders of the
  Company.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Board</U>:
  The Board of Directors of the Company.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Code</U>:
  The Internal Revenue Code of 1986, as amended.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Committee</U>:
  Those persons who are members of the Board but who are not Outside Directors.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>e)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Common Stock</U>:
  The Common Stock without nominal or par value of the Company.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>f)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Company</U>:
  Public Service Enterprise Group Incorporated, a corporation organized and
  existing under the laws of the State of New Jersey, or its successor or
  successors.</FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:0IN; '><FONT SIZE=2>2</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>g)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Disability</U>:
  Any physical or mental condition of a permanent nature which, in sole
  reasonable judgment of the Committee, renders an Outside Director incapable
  of performing the duties of a member of the Board.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>h)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Effective
  Date</U>: Upon approval by stockholders at the 2007
  Annual Meeting of Stockholders.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>i)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Exchange Act</U>:
  The Securities and Exchange Act of 1934, as amended, or as it may be amended
  from time to time.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>j)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>NYSE</U>:
  The New York Stock Exchange, Inc.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>k)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Outside
  Director</U>: A member of the Board on or after the
  Effective Date who never has been employed by the Company or any of its
  affiliates.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>l)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Participant:</U>
  An Outside Director who receives a Stock Unit Award under this Plan.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>m)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Plan</U>:
  This Public Service Enterprise Group Incorporated 2007 Equity Compensation
  Plan for Outside Directors, as it may be amended from time to time.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>n)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Securities
  Act</U>: The Securities Act of 1933, as amended, or as
  it may be amended from time to time.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>o)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Service</U>:
  A Director&#146;s service as a member of the Board.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>p)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Stock Unit
  Award</U>: An award, representing the right to receive
  shares of Common Stock upon termination of service as an Outside Director,
  subject to the provisions of Article IV hereof.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>q)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Year of
  Service</U>: The annual period commencing on May 1<SUP>st</SUP>
  of each year and ending at the earlier of the succeeding April 30<SUP>th</SUP>
  or the next Annual Meeting of Stockholders. For any person first elected a
  member of the Board after May 1<SUP>st</SUP> of any year, his/her first Year
  of Service shall commence upon his/her election as a Director and shall end
  at the earlier of the succeeding April 30<SUP>th</SUP> or the next Annual
  Meeting of Stockholders.</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>III.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>SHARES SUBJECT TO THE PLAN</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;200,000
shares of Common Stock are reserved to satisfy awards of Stock Units pursuant
to the terms of this Plan. Such shares may be acquired directly from the
Company or, at the discretion of the Company, purchased on the open market by
the Company or its agent. </FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:0IN; '><FONT SIZE=2>3</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>IV.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>STOCK UNIT AWARDS</B></FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>A.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Upon the
  commencement of each Year of Service as a member of the Board, each Outside
  Director shall be granted an award of Stock Units in an amount as shall be
  established from time to time by the Board of Directors. The date of grant
  shall be the first business day of May. With respect to an Outside Director
  first elected as a director after May 1 of any year, the date of such Outside
  Director&#146;s initial award grant under this Plan shall be the first business
  day of the month next following the Outside Director&#146;s initial election as a
  member of the Board.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>B.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The number
  of Stock Units to be awarded on any particular date of grant shall be equal
  to the amount of the award grant (expressed in dollars) divided by the
  closing price of the Common Stock on the NYSE on the date of grant as
  provided in Section IV.A, rounded up to the next whole share. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>C.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>If a
  Participant fails to complete the Year of Service with respect to which a
  Stock Unit Award has been granted, other than on account of Disability or
  death, such Stock Unit Award and any earnings thereon shall be prorated to
  reflect the portion of the Year of Service actually served by the
  Participant. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>D.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>No stock
  certificates shall be issued in connection with any Stock Unit Award and the
  Stock Unit Awards shall be evidenced by bookkeeping account in the name of
  the Participant maintained by the Company. The Company shall not be required
  to segregate any amounts credited to these Stock Unit Award accounts, which
  shall be established merely as an accounting convenience. Amounts credited to
  the Stock Unit Award accounts shall at all times remain solely the property
  of the Company subject to the claims of its general creditors and available
  for the Company&#146;s use for whatever purpose desired. Stock Unit Award accounts
  shall be credited with dividend equivalents at a rate equal to such dividends
  as may be declared by the Company on the Common Stock. Such dividends
  equivalents shall be invested as additional Stock Units as of the last business day
  of each quarter at a share price equal to closing price of the Common Stock
  on the NYSE on the date the transaction is credited. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>E.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Until
  distribution of shares of Common Stock from the Plan, neither a Participant
  nor any other person shall have any right to commute, sell, assign, transfer,
  pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate,
  alienate or convey the amounts, if any, payable hereunder, or any part
  thereof, which are, and all rights to which are expressly declared to be,
  unassignable and non-transferable. No part of the amounts payable shall,
  prior to actual payment, be subject to seizure, attachment, garnishment or
  sequestration for the payment of any debts, judgments, alimony or separate
  maintenance owed by a Participant or any other person, be transferable by
  operation of law in the event of a Participant&#146;s or any other person&#146;s
  bankruptcy or insolvency. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Provided,
  however, that, </U>in the event that a domestic
  relations order of any State is received by the Plan and thereafter
  determined to be a Qualified Domestic Relations Order (QDRO) within the
  meaning of Code section 414(p), the portion</FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:0IN; '><FONT SIZE=2>4</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>of the
  Account of the Participant to which such QDRO is directed shall be
  apportioned as specified in such QDRO, valued as of the business day
  preceding the date specified in such QDRO. Upon notice to the Committee that
  a QDRO is being sought with respect to a Participant&#146;s Account, no
  distribution shall be made to a Participant until such time as the status of
  the QDRO is determined. The alternate payee of the Participant&#146;s Account
  shall thereafter participate in the Plan in accordance with its terms, except
  such person shall not have the rights or benefits provided in Subsection IV.A.
  If a QDRO is issued and the amount awarded the alternate payee exceeds the
  value of the Participant&#146;s Account, the amount apportioned shall be limited
  to the amount then in the account. If a QDRO so provides, benefits may be
  paid to an alternate payee before they would otherwise be distributable under
  the Plan, and no such distribution to an alternate payee shall be treated as
  a distribution to the Participant for purposes of Article V.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>F.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>No
  Participant shall have any of the rights of a stockholder (including the
  right to vote and to receive dividends and other distributions) with respect
  to Stock Units unless and until shares of Common Stock are actually issued in
  his/her name. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>G.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>In the event
  of any stock dividend, stock split, combination or exchange of shares, merger,
  consolidation, spin-off or other distribution (other than normal cash
  dividends) of Company assets to shareholders, or any other change affecting
  the Common Stock, such adjustments, if any, as are appropriate to reflect
  such change shall be made with respect to outstanding Stock Unit Awards.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>H.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Upon a
  Change in Control of the Company all outstanding Stock Unit Awards shall be
  considered as having met the requirements of Section IV.C. For the purposes
  of this Plan, &#147;Change in Control&#148; shall mean the occurrence of any of the
  following events:</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>any &#147;person&#148;
  (within the meaning of Section 13(d) of the Exchange Act is or becomes the
  beneficial owner within the meaning of Rule 13d-3 under the Exchange Act (a
  &#147;Beneficial Owner&#148;), directly or indirectly, of securities of the Company
  (not including in the securities beneficially owned by such person any
  securities acquired directly from the Company or its affiliates) representing
  25% or more of the combined voting power of the Company&#146;s then outstanding
  securities, excluding any person who becomes such a Beneficial Owner in
  connection with a transaction described in clause (1) of paragraph (c) below;
  or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the
  following individuals cease for any reason to constitute a majority of the
  number of directors then serving: individuals who, on December 15, 1998,
  constitute the Board of Directors and any new director (other than a director
  whose initial assumption of office is in connection with an actual or
  threatened election contest, including but not limited to a consent
  solicitation. relating to the election of directors of the Company) whose
  appointment or election by the Board of Directors or nomination for </FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:0IN; '><FONT SIZE=2>5</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>election by
  the Company&#146;s stockholders was approved or recommended by a vote of at least
  two-thirds (2/3) of the directors then still in office who either were
  directors on April 17, 2007 or whose appointment, election or nomination for
  election was previously so approved or recommended; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>there is
  consummated a merger or consolidation of the Company or any direct or
  indirect wholly owned subsidiary of the Company with any other corporation
  other than (1) a merger or consolidation which would result in the voting
  securities of the Company outstanding immediately prior to such merger or
  consolidation continuing to represent (either by remaining outstanding or by
  being converted into voting securities of the surviving entity or any parent
  thereof), in combination with the ownership of any trustee or other fiduciary
  holding securities under an employee benefit plan of the Company or any
  subsidiary of the Company, at least 75% of the combined voting power of the
  securities of the Company or such surviving entity or any parent thereof
  outstanding immediately after such merger or consolidation, or (2) a merger
  or consolidation effected to implement a recapitalization of the Company (or
  similar transaction) in which no person is or becomes the Beneficial Owner,
  directly or indirectly, of securities of the Company representing 25% or more
  of the combined voting power of the Company&#146;s then outstanding securities; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the
  stockholders of the Company approve a plan of complete liquidation or
  dissolution of the Company or there is consummated an agreement for the sale
  or disposition by the Company of all or substantially all of the Company&#146;s
  assets, other than a sale or disposition by the Company of all or
  substantially all of the Company&#146;s assets to an entity, at least 75% of the
  combined voting power of the voting securities of which are owned by
  stockholders of the Company in substantially the same proportions as their
  ownership of the Company immediately prior to such sale.</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Notwithstanding
  the foregoing subparagraphs (a), (b), (c) and (d), a &#147;Change in Control&#148;
  shall not be deemed to have occurred by virtue of the consummation of any
  transaction or series of integrated transactions immediately following which
  the record holders of the Common Stock of the Company immediately prior to
  such transaction or series of transactions continue to have substantially the
  same proportionate ownership in an entity which owns all or substantially all
  of the assets of the Company immediately following such transaction or series
  of transactions.</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>V.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>DISTRIBUTIONS</B></FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>

<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>A.</FONT></P>
</TD>
<TD COLSPAN=2 VALIGN=TOP>
<P><FONT SIZE=2>Upon the
  termination of a Participant&#146;s service as an Outside Director, the Company
  shall issue to the Participant certificates for shares of Common Stock equal
  to the number of whole Stock Units in his/her account without any legend or
  restriction of any kind in accordance with such Participant&#146;s distribution </FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:0IN; '><FONT SIZE=2>6</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>elections
  hereunder. Any remaining fractional Stock Units shall be paid in cash based
  upon the closing price of the Common Stock on the NYSE on the day prior to
  the date of distribution.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>B.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>By written
  notice to the Plan filed with the Company&#146;s Secretary, a Participant may
  elect to have distribution of his/her Stock Unit Award account commence: (1)
  on the 30<SUP>th</SUP> day following the date of termination of the
  Participant&#146;s Service, (2) on the 15<SUP>th</SUP> day of January next
  following the date of termination of the Participant&#146;s Service or (3) on the
  15<SUP>th</SUP> day of January of any calendar year following termination of
  the Participant&#146;s Service, but not later than the January following the
  Participant&#146;s 72<SUP>nd</SUP> birthday, unless the Participant is still a
  Director at such time, in which case distribution shall commence on the 30<SUP>th</SUP>
  day following the date the Participant ceases to be a Director. Any such
  election, or any change in such election (by such subsequent written notice
  to the Secretary of the Company), shall apply only to future awards. In the
  event no election is made as to the commencement of distribution, such
  distribution shall commence on the 30<SUP>th</SUP> day following the date the
  Participant ceases to be a Director of the Company.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>C.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>By written
  notice to the Plan filed with the Company&#146;s Secretary, a Participant may
  elect to receive the distribution of his/her Stock Unit Award account in the
  form of (1) one lump-sum payment, or (2) annual distributions over a period
  selected by the Participant of up to ten years. In the event a lump-sum
  payment is made under the Plan, the amount then standing to the Participant&#146;s
  credit in his/ her Stock Unit Award account shall be paid to the Participant
  on the date determined under Section V.B. In the case of a distribution over
  a period of years, the Company shall pay to the Participant, commencing on
  the date determined under Section V.B, annual installments from the amount
  then standing to his or her credit in his or her Stock Unit Award account,
  including earnings credits on the unpaid balance to the date of distribution.
  The amount of each installment shall be determined by dividing the then
  unpaid balance, plus earnings credits, in the Participant&#146;s Stock Unit Award
  account by the number of installments remaining to be paid. If a Participant
  does not make an election as to the manner of distribution of his or her
  Stock Unit Award account, such distribution shall be made in the form of a
  lump sum.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>D.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>In the event
  of a Participant&#146;s death, the balance of the Participant&#146;s Stock Unit Award
  account shall be distributed to the Participant&#146;s Beneficiary(ies) in a
  lump-sum payment within 30 days following the Participant&#146;s death. A
  Participant may change Beneficiary designations by filing a subsequent notice
  with the Secretary of the Company. If a Participant does not make a
  Beneficiary designation, or if the Beneficiary has predeceased the
  Participant, such distribution shall be made as a lump-sum to his/her estate.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>E.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Participants
  may, (i) by notice filed with the Company prior to December 31<SUP>st</SUP>
  of any year, make changes of distribution elections on a prospective basis;
  and (ii) </FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:0IN; '><FONT SIZE=2>7</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>by notice
  filed with the Company, make changes of distribution elections with respect
  to prior deferred compensation as long as (A) any such new distribution
  election is made at least one year prior to the date that the commencement of
  the distribution would otherwise have occurred and (B) the revised
  commencement date is at least five years later than the date that the
  commencement of the distribution would otherwise have occurred; provided that
  such an election may not defer payment beyond the later of the January
  following the Participant&#146;s 72<SUP>nd</SUP> birthday or the Participant&#146;s
  termination of service as a director. For the purposes of this subsection
  V.E, if a Participant has elected a distribution in installments, each
  installment shall be deemed a separate election.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>F.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Notwithstanding
  any other provision of the Plan, if the Board, by vote of the Outside
  Directors, other than the Participant making the claim, shall determine in
  its sole discretion that the time of payment of a Participant&#146;s Stock Unit
  Award account should be advanced because of protracted illness or other undue
  hardship, then the Board may advance the time or times of payment (whether
  before or after the date of Participant&#146;s termination of service as a
  Director) of an amount or amounts needed to meet the emergency in accordance
  with the requirements of Code Section 409A and the regulations promulgated
  thereunder. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>G.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><U>Distribution
  in Case of Certain Tax Events</U> &#150; If, with respect to
  any Participant, the Plan fails to meet the requirements of the Code with
  respect to the deferral of tax liability, the Company may accelerate
  distribution from a Participant&#146;s Account amounts sufficient to meet such
  Participant&#146;s resulting Federal, State, Local and/or Foreign tax liability
  (including any interest and penalties).</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>VI.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>FURTHER CONDITIONS</B></FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>A.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Unless the
  shares of Common Stock to be distributed pursuant to the Plan have been
  registered with the Securities and Exchange Commission under the Securities
  Act prior to issuance, the Participant receiving such shares must represent
  in writing to the Company that such shares of Common Stock are being acquired
  for investment purposes only and not with a view towards the further resale
  or distribution thereof and must supply to the Company such other
  documentation as may be required by the Company, unless in the opinion of
  counsel to the Company such representation, agreement or documentation is not
  necessary to comply with the Securities Act.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>B.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Company
  shall not be obligated to deliver any shares of Common Stock until they have
  been listed on each securities exchange on which the shares of Common Stock
  may then be listed or until there has been qualification under or compliance
  with such state or federal laws, rules or regulations as the Company may deem
  applicable. The Company shall use reasonable efforts to obtain such listing,
  qualification and compliance.</FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:0IN; '><FONT SIZE=2>8</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>C.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The
  Committee may make such provisions and take such steps as it may deem
  necessary or appropriate for the withholding of any taxes that the Company is
  required by any law or regulation of any governmental authority, whether
  federal, state or local, domestic or foreign, to withhold in connection with
  the award of Stock Units or the distribution of any Common Stock, including,
  but not limited to (i) the withholding of delivery of certificates for shares
  of Common Stock until the Participant reimburses the Company for the amount
  the Company is required to withhold with respect to such taxes, (ii) the
  canceling of any number of shares of Common Stock issuable in an amount
  sufficient to reimburse the Company for the amount it is required to so
  withhold or (iii) withholding the amount due from any such Participant&#146;s
  other compensation.</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>VII.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>ADMINISTRATION</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Plan shall be administered by the Committee, which shall establish rules and
regulations regarding the administration and operation of the Plan. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>VIII.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>TERMINATION, MODIFICATION AND AMENDMENT</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
the Company anticipates that it will continue the Plan for an indefinite period
of time, there is no guarantee that the Company will continue the Plan or will
not terminate the Plan at any time in the future. Accordingly, the Company, by
the Board of Directors, reserves the right to discontinue its sponsorship of
the Plan or to terminate the Plan (or both), at any time, by the action of the
Board of Directors. In general, upon the termination of the Plan, the affected
Participants shall receive payment of their benefits in accordance with the
terms of Article V. However, the Company may, in its discretion, terminate the
entire Plan and pay each Participant a single lump-sum distribution of his or
her entire Account Balance, in the event that the Company satisfies any of the
following:</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
such distributions are made between 12 and 24 months following the termination
of the Plan, and the Company does not adopt a new plan which would be
aggregated with this Plan under IRS guidance under Code Section 409A at any
time within the five years following the Plan termination. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
the Plan is terminated within the 30 days preceding or the 12 months following
a Change in Control, all payments are made within 12 months of the date of
termination, and all substantially similar arrangements sponsored by the
Company are terminated as well.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
the Plan is terminated within 12 months of a corporate dissolution, as defined
in IRS guidance under Code Section 409A, and lump sum payments are made in the
latest of (i) the year of the termination, (ii) the year in which amounts are
no longer subject to a substantial risk of forfeiture; or (iii) the first year
in which payment is administratively practicable.</FONT></P>

<P><FONT SIZE=2>The
termination of the Plan shall not adversely affect any Participant or
Beneficiary who has become entitled to the payment of any benefits under the
Plan as of the date of termination.</FONT></P>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:0IN; '><FONT SIZE=2>9</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>IX.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>NOT A CONTRACT FOR CONTINUED SERVICE</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nothing
contained in the Plan or in any restricted stock agreement executed pursuant
hereto shall be deemed to confer upon any Outside Director to whom Stock Unit
Awards are or may be awarded hereunder any right to remain a member of the
Board or in any way limit the right of the Board or the Stockholders to
terminate or fail to renominate or reelect any such Outside Director as a
member of the Board.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>X.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>MISCELLANEOUS</B></FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>A.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The costs
  and expenses of administering the Plan shall be borne by the Company and
  shall not be charged against any award or to any Outside Director receiving
  an award.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>B.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>This Plan
  and actions taken in connection herewith shall be governed and construed in
  accordance with the laws of the State of New Jersey.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>C.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The captions
  and section numbers appearing in this Plan are inserted only as a matter of
  convenience. They do not define, limit or describe the scope or intent of the
  provisions of this Plan. In this Plan, words in the singular number include
  the plural and in the plural include the singular; and words of the masculine
  gender include the feminine and the neuter, and when the sense so indicates,
  words of the neuter gender may refer to any gender.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>D.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Whenever the
  time for payment or performance hereunder shall fall on a weekend or public
  holiday, such payment or performance shall be deemed to be timely if made on
  the next succeeding business day.</FONT></P>
</TD>
</TR>
</TABLE>
<BR>
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