WGL HOLDINGS INC
DEFERRED COMPENSATION PLAN
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<TYPE>EX-10.2
<SEQUENCE>6
<FILENAME>w55894ex10-2.htm
<DESCRIPTION>DEFERRED COMPENSATION PLAN
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<P align="right"><FONT size="2"><B>Exhibit&nbsp;10.2</B>
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<P align="center"><FONT size="2">WGL HOLDINGS, INC.
</FONT>

<P align="center"><FONT size="2">AND
</FONT>

<P align="center"><FONT size="2">WASHINGTON GAS LIGHT COMPANY
</FONT>

<P align="center"><FONT size="2">DEFERRED COMPENSATION PLAN FOR OUTSIDE DIRECTORS
</FONT>

<P align="center"><FONT size="2"><B>(ADOPTED DECEMBER 18, 1985)</B>
</FONT>

<P align="center"><FONT size="2"><B>(AMENDED NOVEMBER 26, 1986)</B>
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<P align="center"><FONT size="2"><B>(AMENDED NOVEMBER 1, 2000)</B>
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<P align="center"><FONT size="2">&nbsp;</FONT>
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<P align="center"><FONT size="2">WGL HOLDINGS, INC.
</FONT>
<P align="center"><FONT size="2"><b>AND</b>
</FONT>
<P align="center"><FONT size="2">WASHINGTON GAS LIGHT COMPANY
</FONT>
<P align="center"><FONT size="2">DEFERRED COMPENSATION PLAN FOR OUTSIDE DIRECTORS
</FONT>

<P><FONT size="2"><B>(1)&nbsp; DEFINITIONS</B>
</FONT>
<P>
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        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(a)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">&#147;Company&#148; means WGL Holdings, Inc. and/or Washington Gas
Light Company.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
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        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(b)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">&#147;Deferral Period&#148; means the period of time over which
Participants elect to defer their compensation. Deferral periods
for a specific number of years shall begin on January 1 and expire
on December&nbsp;31.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
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        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(c)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">&#147;Outside Director&#148; means a member of the Board of Directors
of the Company who is not an employee of the Company.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(d)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">&#147;Participant&#148; means an Outside Director who elects to defer
compensation in accordance with the terms of the Plan.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
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        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">(e)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">&#147;Plan&#148; means the Company&#146;s Deferred Compensation Plan for
Outside Directors, as adopted December&nbsp;18, 1985, and as amended from
time to time.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
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        <TD width="1%" align="left" nowrap><FONT size="2">(f)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="93%"><FONT size="2">&#147;Plan Year&#148; means any calendar year in which the Plan is in
effect. The first Plan Year is the calendar year 1986.</FONT></TD>
</TR>
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<P align="center"><FONT size="2">- 2 -</FONT>

<P><FONT size="2"><B>(2)&nbsp; OBJECTIVE OF THE PLAN</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The objective of the Plan is the provide Outside Directors the opportunity
to defer receipt of compensation for their service on the Company&#146;s Board of
Directors.
</FONT>
<P><FONT size="2"><B>(3)&nbsp; ELIGIBILITY</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outside Directors of the Company are eligible to participate in the Plan.
</FONT>
<P><FONT size="2"><B>(4)&nbsp; ELECTION TO PARTICIPATE</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To participate in the Plan for any Plan Year, the Outside Director shall
execute a Deferral Application with the Company on a form to be supplied by the
Company. Participants will elect to defer annually. The Deferral Application
shall be executed on or before December&nbsp;31 of the year preceding the Plan Year
in which compensation is to be deferred (i.e., to defer compensation to be
earned in Plan Year 1986, the Deferral Application must be executed by December
31, 1985). The Plan Administrator may execute the Deferral Application on
behalf of the Company. An approved application to defer (or to re-defer)
cannot be modified or revoked.
</FONT>
<P><FONT size="2"><B>(5)&nbsp; COMPENSATION SUBJECT TO DEFERRAL</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participants may defer payment of all or a portion of their annual
retainer, monthly meeting fees, committee meeting fees and fees for attendance
at annual and special stockholder meetings. Deferrals shall be in set
percentage increments of 10% (10%, 20%, 30%, etc.). The minimum deferral is
10% of the annual retainer or $1000.00, whichever is less.
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<P align="center"><FONT size="2">- 3 -</FONT>

<P><FONT size="2"><B>(6)&nbsp; LENGTH OF DEFERRAL PERIOD</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participants may elect to defer their compensation for a minimum period of
four years* or until the occurrence of the Participant&#146;s retirement, as defined
in Paragraph (10)(B) of this Plan, or death, whichever occurs first.
</FONT>
<P><FONT size="2"><B>(7)&nbsp; RE-DEFERRALS**</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to the termination of a Deferral Period for a specified period of
years, a Participant may apply to re-defer payment amounts previously deferred,
including interest accumulated on those amounts. The re-deferral must be of
the entire amount originally deferred (including accumulated interest) for a
minimum period of four years, or until the occurrence of the Participant&#146;s
retirement, as defined in Paragraph (10)(B) of this Plan, or death, whichever
occurs first. Application to re-defer must be submitted to and approved by the
Plan Administrator no later than June&nbsp;30 prior to expiration of the Deferral
Period.
</FONT>
<P><FONT size="2"><B>(8)&nbsp; DEFERRAL ACCOUNTS; DEFERRAL ACCOUNT BALANCE</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts deferred, including accumulated interest, will be credited to a
Deferral Account for each Participant. The total amount credited for a
Participant at any particular time is designated the Deferral Account Balance.
</FONT>
<P><FONT size="2"><B>(9)&nbsp; INTEREST ON DEFERRED AMOUNTS</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Participant&#146;s Deferral Account Balance shall earn interest compounded
quarterly. The quarterly interest rate shall be the weekly average yield to
maturity for ten year U.S. Government fixed interest rate securities (adjusted
to a
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      <TD width="1%" align="left" nowrap><FONT size="2">*</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Effective November&nbsp;26, 1986, the minimum deferral period is one year.</FONT></TD>
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<P align="center"><FONT size="2">- 4 -</FONT>





<P><FONT size="2">constant maturity of ten years) as published by the Federal Reserve Board in
its Statistical release H.15 published on or prior to December&nbsp;31 of the
immediately preceding year. Notwithstanding this calculation, the rate
credited to any deferral account shall not be less than 8% per year.
</FONT>
<P><FONT size="2"><B>(10)&nbsp; METHOD OF PAYMENT</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp; Except as provided by Paragraph (10)(C), payment of any Deferral
Account Balance will be in the form of ten annual installments. In the
alternative, the Participant may apply to receive payment in a lump sum or in
fewer than ten annual installments. Application for the alternative payment
method must be submitted to and approved by the Plan Administrator prior to any
installment payment of a Deferral Account Balance. Payments shall commence
within 30&nbsp;days of the event which triggers payout.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp; At the time the Participant retires from the Company&#146;s Board of
Directors, all Deferral Periods will expire. The Participant&#146;s Deferral
Account Balance shall be paid to the Participant or to an Alternate Payee in
the form specified by Paragraph (10)(A).
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Plan, retirement from the Company&#146;s Board of
Directors occurs at the time the Participant ceases for any reason other than
death to be an Outside Director of the Company.
</FONT>
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
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      <TD width="1%" align="left" nowrap><FONT size="2">**</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">The provision for referrals is eliminated for amounts deferred after
December&nbsp;31, 1986 (amendment adopted November&nbsp;26, 1986).</FONT></TD>
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<P align="center"><FONT size="2">- 5 -</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp; If a Participant dies prior to retirement from the Company&#146;s Board of
Directors (as defined in Paragraph (10)(B) of this Plan) or if the Participant
dies prior to full payment of the Participant&#146;s Deferral Account Balance, then
any remaining Account Balance shall be paid to the Participant&#146;s Designated
Beneficiary in a lump sum, unless the Participant elected to have the
Designated Beneficiary receive payments in installments.
</FONT>
<P><FONT size="2"><B>(11)&nbsp; DESIGNATED BENEFICIARY AND ALTERNATE PAYEE</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participants under this Plan may provide a Designated Beneficiary to
receive benefits payable under the Plan upon the death of the Participant.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a matter of convenience to the Participants, the Company will permit
Participants to provide for an Alternate Payee to receive payments on
retirement of the Participant. Provision for an Alternate Payee shall not
confer any rights on the Alternate Payee against the Company under this Plan
and shall be effective only upon written acknowledgement of the Alternate Payee
that the Alternate Payee has no right against the Company under this Plan. Upon
death of either the Participant or the Alternate Payee, the provision for the
Alternate Payee automatically expires.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Designated Beneficiary or Alternate Payee shall be specified on forms
provided by the Company. Participants may revoke or change a Designated
Beneficiary and an Alternate Payee at any time.
</FONT>
<P><FONT size="2"><B>(12)&nbsp; HARDSHIP WITHDRAWAL</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Participant or the Designated Beneficiary may request a lump sum payment
or accelerated payments not yet due for distribution under the Plan in
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<P align="center"><FONT size="2">- 6 -</FONT>


</FONT>
<P><FONT size="2">the event of hardship, permanent disability or emergency. The Plan
Administrator has the sole discretion to determine whether such a withdrawal or
accelerated payment shall be permitted.
</FONT>
<P><FONT size="2"><B>(13)&nbsp; PAYMENT RIGHTS UNSECURED</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of this Plan shall not mean, under any circumstance, that any
person or entity shall have any right, title or interest in or to any specific
asset of the Company. To the extent that any person acquires a right to
receive payments under the Plan, that right shall be no greater than the right
of any unsecured creditor of the Company.
</FONT>
<P><FONT size="2"><B>(14)&nbsp; NON-ASSIGNMENT</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rights to receive payment under the Plan may not be assigned, alienated or
pledged.
</FONT>
<P><FONT size="2"><B>(15)&nbsp; PLAN ADMINISTRATOR</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Chairman of the Board of Directors may from time to time designate an
Administrator to implement provisions of the Plan.
</FONT>
<P><FONT size="2"><B>(16)&nbsp; AMENDMENT AND TERMINATION</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Board of Directors may amend or terminate this Plan at any
time. In the event of termination of the Plan, amounts deferred but not yet
paid shall be paid to Participants in a manner to be determined by the Board of
Directors.
</FONT>

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<P align="RIGHT"><FONT size="2"><B>Exhibit 10.3</B></FONT>

<P align="center"><FONT size="2"><B>WGL HOLDINGS, INC.</B></FONT>

<P align="center"><FONT size="2"><B>DIRECTORS&#146; STOCK<BR>
COMPENSATION PLAN</B>
</FONT>

<P align="center"><FONT size="2"><B><I>As Adopted on October&nbsp;25, 1995</I></B>
</FONT>
<P align="center"><FONT size="2"><B><I>As Amended January&nbsp;1, 1998</I></B>
</FONT>
<P align="center"><FONT size="2"><B><I>As Amended March&nbsp;1, 1999</I></B>
</FONT>
<P align="center"><FONT size="2"><B><I>As Amended November&nbsp;1, 2000</I></B>
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
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<P align="center"><FONT size="2"><B>WGL HOLDINGS, INC.<BR>
DIRECTOR&#146;S STOCK COMPENSATION PLAN</B>
</FONT>

<P align="center"><FONT size="2"><B>ARTICLE I</B>
</FONT>

<P align="center"><FONT size="2"><B>DEFINITIONS</B>
</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.01 <B>Affiliate </B>means any &#147;subsidiary&#148; or &#147;parent&#148; corporation of the
Company (as such terms are defined in section 424 of the Code).
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.02 <B>Board </B>means the Board of Directors of the Company.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.03 <B>Code </B>means the Internal Revenue Code of 1986, as amended.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.04 <B>Common Stock </B>means the common stock of the Company.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.05 <B>Company </B>means WGL Holdings, Inc. and includes any predecessor or
successor in interest.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.06 <B>Date of Award </B>means each January 1 during the term of the Plan.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.07 <B>Fair Market Value </B>means, on any given date, the average of the high
and low prices of a share of Common Stock as reported on the New York Stock
Exchange or, if the Common Stock was not traded on such day, then on the next
preceding day that the Common Stock was traded on such exchange, all as
reported by the Wall Street Journal.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.08 <B>Participant </B>means a member of the Board who satisfies the
requirements of Article&nbsp;IV.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.09 <B>Plan </B>means the WGL Holdings, Inc. Directors&#146; Stock Compensation Plan.
</FONT>

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<P align="center"><FONT size="2"><B>ARTICLE II</B>
</FONT>
<P align="center"><FONT size="2"><B>PURPOSES</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan is intended to assist the Company in promoting a greater identity
of interest between the Company&#146;s non-employee directors and its shareholders,
and to assist the Company in attracting and retaining non-employee directors by
affording Participants an opportunity to share in the future success of the
Company.
</FONT>
<P align="center"><FONT size="2"><B>ARTICLE III</B>
</FONT>
<P align="center"><FONT size="2"><B>ADMINISTRATION</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan shall be administered by the Human Resources Committee of the
Company&#146;s Board of Directors, or such other person or group as the Board of
Directors may designate, in a manner that is consistent with the provisions of
this Plan. The person or group administering the Plan shall not be liable for
any act done in good faith with respect to this Plan. All expenses of
administering this Plan shall be borne by the Company and its Affiliates.
</FONT>
<P align="center"><FONT size="2"><B>ARTICLE IV</B>
</FONT>
<P align="center"><FONT size="2"><B>ELIGIBILITY</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each member of the Board who is not an employee of the Company or an
Affiliate, and who has not been employed by the Company or one of its
Affiliates during the twelve months preceding the Date of Award will
participate in the Plan during his or her service on the Board.
</FONT>

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<P align="center"><FONT size="2"><B>ARTICLE V</B>
</FONT>
<P align="center"><FONT size="2"><B>AWARDS</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of Common Stock will be awarded to each Participant as of each Date
of Award. Subject to Article&nbsp;VIII&#146;s limitation on the number of shares of
Common Stock which may be issued under the Plan, on each Date of Award each
Participant will be awarded 800 shares of common stock.
</FONT>
<P align="center"><FONT size="2"><B>ARTICLE VI</B>
</FONT>
<P align="center"><FONT size="2"><B>VESTING OF SHARES</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares of Common Stock awarded under the Plan will be immediately
vested and nonforfeitable. Subject to the requirements of Article&nbsp;IX, the
shares awarded under the Plan may be sold or transferred by the Participant at
any time.
</FONT>
<P align="center"><FONT size="2"><B>ARTICLE VII</B>
</FONT>
<P align="center"><FONT size="2"><B>SHAREHOLDER RIGHTS</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participants will have all the rights of shareholders with respect to
shares awarded under the Plan. Accordingly, Participants will be entitled to
vote the shares and receive dividends.
</FONT>
<P align="center"><FONT size="2"><B>ARTICLE VIII</B>
</FONT>
<P align="center"><FONT size="2"><B>SHARES AUTHORIZED</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Up to forty thousand shares of Common Stock may be awarded under the Plan.
If the
</FONT>

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        <TD valign="top" ALIGN=RIGHT><FONT size="2">- 3 -</FONT></TD>
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<P><FONT size="2">Company effects one or more stock dividends, stock split-ups,
subdivisions, reclassifications, or consolidations of shares, or other similar
changes in capitalization after the Plan&#146;s adoption by the Board, the maximum
number of shares that may be awarded under the Plan shall be proportionately
adjusted.
</FONT>
<P align="center"><FONT size="2"><B>ARTICLE IX</B>
</FONT>
<P align="center"><FONT size="2"><B>COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Common Stock shall be awarded and no certificates for shares of Common
Stock shall be delivered under the Plan except in compliance with all
applicable federal and state laws and regulations, any listing agreement to
which the Company is a party, and the rules of all domestic stock exchanges on
which the Company&#146;s shares may be listed. The Company shall have the right to
rely on the opinion of its counsel as to such compliance. Any share
certificate issued to evidence Common Stock issued under the Plan may bear such
legends and statements as the Company may deem advisable to assure compliance
with federal and state law and regulations. No Common Stock shall be awarded
and no certificates for shares of Common Stock shall be delivered until the
Company has obtained such consent or approval as it may deem advisable from
regulatory bodies having jurisdiction over such matters.
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        <TD valign="top" ALIGN=RIGHT><FONT size="2">- 4 -</FONT></TD>
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<P align="center"><FONT size="2"><B>ARTICLE X</B>
</FONT>
<P align="center"><FONT size="2"><B>GENERAL PROVISIONS</B>
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.01 <B>Unfunded Plan. </B>The Plan, insofar as it provides for grants, shall
be unfunded, and the Company shall not be required to segregate any assets that
may at any time be represented by grants under the Plan. Any liability of the
Company to any person with respect to any grant under the Plan shall be based
solely upon any contractual obligations that may be created pursuant to the
Plan. No such obligation of the Company shall be deemed to be secured by any
pledge of, or other encumbrance on, any property of the Company.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.02 <B>Rules of Construction. </B>Headings are given to the articles and
sections of the Plan solely as a convenience to facilitate reference. The
references to any statute, regulation, or other property of law shall be
construed to refer to any amendment to or successor of such provisions of law.
</FONT>
<P align="center"><FONT size="2"><B>ARTICLE XI</B>
</FONT>
<P align="center"><FONT size="2"><B>AMENDMENT OF PLAN</B>
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board may amend the Plan from time to time. No amendment may become
effective until shareholder approval is obtained if such approval is required
by any federal or state law or regulation or the rules of any stock exchange on
which the Common Stock may be listed, or if the Board in its discretion
determines that the obtaining of such shareholder approval is for any reason
advisable. No amendment shall, without a Participant&#146;s consent, adversely
affect any rights of such Participant under any Award outstanding at the time
such amendment is made.
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<P align="center"><FONT size="2"><B>ARTICLE XII</B>
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<P align="center"><FONT size="2"><B>DURATION OF PLAN</B>
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The final award under the Plan will be made as of the Date of Award in
2006. The Board may terminate the Plan sooner by appropriate action. The Plan
will terminate automatically, without action by the Board, if there are
insufficient shares available to make the awards described in the Plan.
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<P align="center"><FONT size="2"><B>ARTICLE XIII</B>
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<P align="center"><FONT size="2"><B>EFFECTIVE DATE OF PLAN</B>
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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan will become effective once it is adopted by the Board and
approved by a majority of the votes cast at a duly held shareholders&#146; meeting
at which a quorum representing a majority of all outstanding voting stock is,
either in person or by proxy, present and voting on the Plan. No awards will
be made under the Plan prior to approval of the Plan, by the Company&#146;s
shareholders.
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