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Exhibit 10.21    
    


 
 

BOISE CASCADE CORPORATION
  
    1995 SPLIT-DOLLAR LIFE INSURANCE PLAN
  
    (As Amended Through September 26, 2003)    



        1.     Purpose of the Plan. The purpose of the Boise Cascade Corporation Split-Dollar Life Insurance Plan (the "Plan") is to
provide executive officers who participate in the Plan with an insured death benefit during employment and after retirement. Executive officers who become Participants may purchase a life insurance
policy from a designated insurance carrier. Payment of policy premiums will be shared by Boise Cascade Corporation ("the Company"), as described herein. Executives who participate in the Plan shall
execute a Split-Dollar Agreement, substantially in the form attached hereto as Exhibit A, prior to becoming eligible for any benefits under this Plan. 



        The
Committee shall designate executive officers eligible to participate in the Plan. 




        2.     Definitions. 



        2.1   "Annual Premium" means the amount of consideration determined by the Insurance Carrier for the cost of coverage provided
by the Plan. The Annual Premium shall have the following two components: (a) The basic Annual Premium shall be the amount of the Annual Premium for standard risk life insurance coverage
determined by the Insurance Carrier's published rate schedule; and (b) the extra premium shall be the amount of the Annual Premium, if any, required for a life insurance risk determined by the
Insurance Carrier to be substandard. 


        2.2   "Assignment or Collateral Assignment" means an agreement to be signed by each Participant, substantially in the form
attached hereto as Exhibit B, whereby the Participant, as owner of the Insurance Policy, agrees to set over certain Insurance Policy rights to the Company as collateral security for the
Company's Corporate Capital Interest under the Plan. 


        2.3   "Base Salary" means the annual Base Salary in effect on the policy anniversary date preceding the Participant's death if
the Participant dies while an active Employee of the Company. 


        2.4   A
"Change in Control" shall be deemed to have occurred if: 



        (a)   Any
Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 25% or more of either the then outstanding shares of
common stock of the Company or the combined voting power of the Company's then outstanding securities; provided, however, if such Person acquires securities directly from the Company, such securities
shall not be included unless such Person acquires additional securities which, when added to the securities acquired directly from the Company, exceed 25% of the Company's then outstanding shares of
common stock or the combined voting power of the Company's then outstanding securities; and provided further that any acquisition of securities by any Person in connection with a transaction described
in Section 2.4(c)(i) shall not be deemed to be a Change in Control of the Company; or 


        (b)   The
following individuals cease for any reason to constitute at least a majority of the number of directors then serving: individuals who, on the date hereof, constitute
the Board 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 or nomination for election by the Company's stockholders was approved by a vote of at
least 2/3rds of the directors then still in office who either were directors on the 




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date
hereof or whose appointment, election, or nomination for election was previously so approved (the "Continuing Directors"); or 



        (c)   The
consummation of a merger or consolidation of the Company (or any direct or indirect subsidiary of the Company) with any other corporation other than (i) a
merger or consolidation which would result in both (a) Continuing Directors continuing to constitute at least a majority of the number of directors of the combined entity immediately following
consummation of such merger or consolidation, and (b) 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) more than 50% of the combined voting power of the voting securities of the Company or
such surviving entity or any parent thereof
outstanding immediately after such merger or consolidation, or (ii) 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 either the then outstanding shares of common stock of the Company or the combined
voting power of the Company's then outstanding securities; provided that securities acquired directly from the Company shall not be included unless the Person acquires additional securities which,
when added to the securities acquired directly from the Company, exceed 25% of the Company's then outstanding shares of common stock or the combined voting power of the Company's then outstanding
securities; and provided further that any acquisition of securities by any Person in connection with a transaction described in Section 2.4(c)(i) shall not be deemed to be a Change in
Control of the Company; or 


        (d)   The
stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or the consummation of an agreement for the sale or disposition by
the Company of all or substantially all of the Company's assets, other than a sale or disposition by the Company of all or substantially all of the Company's assets to an entity, more than 50% of the
combined voting power of the voting securities of which are owned by Persons in substantially the same proportions as their ownership of the Company immediately prior to such sale. 



        A
transaction described in Section 2.4(c) which is not a Change in Control of the Company solely due to the operation of Subsection 2.4(c)(i)(a) will nevertheless constitute a
Change in Control of the Company if the Board determines, prior to the consummation of the transaction, that there is not a reasonable assurance that, for at least two years following the consummation
of the transaction, at least a majority of the members of the board of directors of the surviving entity or any parent will continue to consist of Continuing Directors and individuals whose election
or nomination for election by the shareholders of the surviving entity or any parent would be approved by a vote of at least two-thirds of the Continuing Directors and individuals whose
election or nomination for election has previously been so approved. 


        For
purposes of this section and Section 2.17, "Beneficial Owner" shall have the meaning set forth in Rule 13d-3 under the Securities Exchange Act of 1934, as
amended (the "Exchange Act"). 


        For
purposes of this section and Section 2.17, "Person" shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and
14(d) thereof, except that "Person" shall not include (i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of
the Company or any of its subsidiaries, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, (iv) a corporation owned, directly or indirectly,
by the 




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stockholders
of the Company in substantially the same proportions as their ownership of stock of the Company, or (v) an individual, entity or group that is permitted to and does report its
beneficial ownership of securities of the Company on Schedule 13G under the Exchange Act (or any successor schedule), provided that if the individual, entity or group later becomes required to
or does report its ownership of Company securities on Schedule 13D under the Exchange Act (or any successor schedule), then the individual, person or group shall be deemed to be a Person as of
the first date on which the individual, person or group becomes required to or does report its ownership on Schedule 13D. 




        2.5   "Code" means the Internal Revenue Code of 1986, as amended. 


        2.6   "Committee" means the Executive Compensation Committee of the Company's Board of Directors or any successor to the
Committee. 


        2.7   "Corporate Capital Interest" means accumulative amounts paid by the Company for an Insurance Policy Annual Premium as set
forth in Section 6.1. The Corporate Capital Interest shall be reduced by policy loans, if any (including interest thereon), made by the Company. 


        2.8   "Deferred Compensation and Benefits Trust" means the irrevocable trust (the "DCB Trust") established by the Company with
an independent trustee for the benefit of persons entitled to receive payments or benefits hereunder, the assets of which will be subject to claims of the Company's creditors in the event of
bankruptcy or insolvency. 


        2.9   "Effective Date" means April 1, 1995. 


        2.10 "Employee" means an individual who receives a Base Salary for personal services rendered to the Company. 


        2.11 "Final Salary" means the Participant's annual Base Salary on his or her Retirement date. 


        2.12 "Insurance Carrier" means the life insurance company or companies selected to issue policies under or pursuant to the
Plan. 


        2.13 "Insurance Policy" means any individually purchased Insurance Policy, together with additional policy benefits and
riders, if any, issued by the Insurance Carrier pursuant to the Plan. Unless required otherwise by the Plan, Insurance Policy terms used herein shall have the same meaning as in the Insurance Policy.
In amplification but not in limitation of the foregoing, such Insurance Policy terms as "policy year," "dividend," and "policy loan" shall have the same meaning for purposes of this Plan as for
purposes of the Insurance Policy. 



        2.14 "Participant" means an executive officer of the Company who is designated by the Committee as eligible to participate in
the Plan and who has met all the applicable eligibility requirements under the Plan. 


        2.15 "Pension Plan" means the Boise Cascade Corporation Pension Plan for Salaried Employees, as amended from time to time. 


        2.16 "Plan Administrator" means the Committee. The Committee may delegate day-to-day administrative
functions to the Company's management. 


        2.17 "Potential Change in Control" shall be deemed to have occurred if (a) the Company enters into an agreement, the
consummation of which would result in the occurrence of a Change in Control of the Company; (b) the Company or any Person publicly announces an intention to take or to consider taking actions
which if consummated would constitute a Change in Control of the Company; (c) any Person becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 9.5% or
more of either the then outstanding shares of common stock of the Company or the combined voting power of the Company's then outstanding securities, 



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provided
that securities acquired directly from the Company shall not be included unless the Person acquires additional securities which, when added to the securities acquired directly from the
Company, exceed 9.5% of the Company's then outstanding shares of common stock or the combined voting power of the Company's then outstanding securities; or (d) the Board adopts a resolution to
the effect that a Potential Change in Control has occurred. 


        2.18 "Retirement" means the termination of employment of a Participant, for reasons other than death or total disability (as
defined in the Pension Plan), at any time after the Participant has attained age 55
with 10 or more years of service (as defined in the Pension Plan), and 5 years of service as an executive officer of the Company. 


        2.19 "Trustee's Payment Schedule" means the schedule of Insurance Policy premiums payable by the trustee of the Deferred
Compensation and Benefits Trust after a Change in Control as specified on the form attached hereto. 




        3.     Administration and Interpretation of the Plan. 



        3.1   Plan Administrator. The Committee shall have final discretion, responsibility, and authority to administer and interpret
the Plan. This includes the discretion and authority to determine all questions of fact, eligibility, or benefits relating to the Plan. The Committee may also adopt any rules it deems necessary to
administer the Plan. The Committee's responsibilities for administration and interpretation of the Plan shall be exercised by Company employees who have been assigned those responsibilities by the
Company's management. Any Company employee exercising responsibilities relating to the Plan in accordance with this section shall be deemed to have been delegated the discretionary authority vested in
the Committee with respect to those responsibilities, unless limited in writing by the Committee. Any Participant may appeal any action or decision of these employees to the Company's General Counsel
and may request that the Committee reconsider decisions of the General Counsel. Claims for benefits under the Plan and appeals of claim denials shall be in accordance with Section 9. Any
interpretation by the Committee shall be final and binding on the Participants. 


        3.2   Insurance Carrier. The Insurance Carrier shall be responsible for all matters relating to any Insurance Policy. Not in
limitation, but in amplification of the foregoing, the Insurance Carrier shall decide whether it will issue an Insurance Policy on the life of a Participant who has otherwise met all of the Plan's
eligibility requirements. 




        4.     Eligibility. 



        4.1.  Eligibility to Participate. In order to become a Participant in the Plan, an individual must meet all of the following
requirements: 



        (a)   Be
an executive officer of the Company, identified by the Committee as eligible to participate in the Plan; 


        (b)   Complete
an application for insurance in the manner set by the Insurance Carrier; 


        (c)   Meet
the insurability requirements of the Insurance Carrier; and 


        (d)   Sign
all documents, including the Split-Dollar Agreement and Assignment, necessary or appropriate in the judgment of the Committee or Insurance Carrier, to carry out the
intent of the Plan. 




        4.2.  Alternate Owners. The Plan permits an alternate person or entity to be the owner of the Insurance Policy. The alternate
owner must sign all documents, including the Split-Dollar Agreement and the Assignment, necessary or appropriate in the judgment of the Committee or Insurance Carrier, to carry out the intent of the
Plan. The Participant shall still be the Insured and 



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all
the provisions of the Plan shall continue as if the Participant were the owner of the Insurance Policy. 




        5.     Benefits. 



        5.1   Death During Employment. If a Participant's death occurs while employed by the Company, the Participant's beneficiary
shall receive a death benefit equal to 2 times Base Salary. 



        5.2   Post-Retirement Death Benefit. A death benefit equal to 1 times Final Salary shall be payable on behalf of a
Participant whose death occurs subsequent to Participant's Retirement. 


        5.3   Timing of Purchase of Insurance. The right of a Participant to purchase an Insurance Policy under the Plan is granted
only upon the initial adoption of the Plan or, for an Employee who meets the eligibility requirements under the Plan after adoption of the Plan, the date of initial eligibility of the Employee under
the Plan. The face amount of the Insurance Policy shall be rounded up to the nearest multiple of $1,000, where necessary. Since participation under the Plan involves the purchase of an Insurance
Policy which is subject to the Employee's insurability, the Company does not guarantee that each otherwise eligible Employee will be able to acquire an Insurance Policy pursuant to this Plan. 


        5.4   Amount of Death Benefit. The death benefit shall be paid from the Insurance Policy. The amount of the death benefit
payable to the Participant's beneficiary shall be subject to the Assignment. In the event that the death benefit from the Insurance Policy exceeds the sum of the Company's Corporate Capital Interest
and the Participant's death benefit under Sections 5.1 or 5.2, the excess death proceeds shall be paid to the Participant's beneficiary. Participants shall not be eligible for any death benefit under
the Boise Cascade Group Life Insurance Plan. 


        5.5   Beneficiary Designation. The death benefit is payable to the beneficiary or beneficiaries designated by the owner of the
Insurance Policy. If no such beneficiary is designated, the beneficiary shall be the person or persons entitled to the death benefit under the terms of the Insurance Policy or applicable state law,
whichever governs. 


        5.6   Payment of Death Benefit. The death benefits shall be paid upon the submission to the Insurance Carrier of the
appropriate proof of death and a claim for benefits. 




        6.     Contributions and Funding. 



        6.1   The
responsibility for the payment of the premiums shall be allocated as follows: 



        (a)   Responsibility
of Participant. 



        (1)   The
"value of the economic benefit" to the Participant as determined by multiplying the amount of life insurance protection to which the Participant is entitled by the
lower of the government's 1-year term ("PS-58") rates or the Insurance Carrier's currently published term rates. This amount shall be paid by the Company on behalf of the
Participant and treated as taxable compensation to the Participant. 


        (2)   Any
extra premium which is in excess of 40% of the Basic Annual Premium. 




        (b)   Responsibility
of Company. 



        (1)   The
difference between the basic Annual Premium and that portion for which the Participant is responsible pursuant to Subsection 6.1(a)(1). 


        (2)   Any
extra premium in an amount up to 40% of the basic Annual Premium. 




        The
Company shall, at its option, have the authority to borrow against the Insurance Policy up to an amount not to exceed the Corporate Capital Interest. All interest payments as a
result of such borrowing shall be the responsibility of the Company. 




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        6.2   Immediately
upon a Potential Change in Control or upon a Change in Control, the Company shall repay Insurance Policy loans, if any, and shall not make any policy loans,
as otherwise provided for in Subsection 6.1(b)(2), within a 1-year period after a Potential Change in Control, or at any time after a Change in Control, except upon the date specified in
Section 6.3. 


        6.3   Termination of Company Funding. Notwithstanding any other provisions in this Plan, and except in the event of or after a
Change in Control, the Company shall terminate its participation in the funding of the Insurance Policy on the first of the following events: 



        (a)   The
later of (i) the date of the Participant's Retirement or (ii) the date 15 Annual Premiums have been paid by the Company; 



        (b)   The
death of a Participant; or 


        (c)   The
termination of employment of a Participant other than by death or Retirement. 


        In
the event of a termination described in (a) above, the Company will recover its Corporate Capital Interest by Insurance Policy withdrawal and release its interest in the
Insurance Policy. Any such policy loan shall become the sole obligation of the Participant as owner of the Policy. The actual death benefit provided by the Insurance Policy may be greater than or less
than the death benefit, described in Section 5, based on the investment performance of the Insurance Policy. In the event the Insurance Policy does not ultimately provide the prescribed death
benefit, it is not the intention of the Company to make up any death benefit shortfall. 


        In
the event of a termination described in (b), the Company shall recover its Corporate Capital Interest out of the death proceeds of the Insurance Policy, and the Participant's
beneficiary will receive the balance of the death proceeds. In the event that the Insurance Policy does not provide the prescribed death benefit, it is not the intention of the Company to make up any
death benefit shortfall. 


        In
the event of a termination described in (c) above, the Participant may recover or purchase all or any portion of the Company's Corporate Capital Interest in the Insurance
Policy pursuant to terms established by the Plan Administrator. Any amount purchased shall result in the Company's recovery of its Corporate Capital Interest equal to the amount purchased. Any
portions of the Insurance Policy not purchased by the Participant shall be treated in a manner deemed appropriate by the Plan Administrator, solely in the Plan Administrator's discretion. The
provisions of Subsection 6.3(c) shall be subject to any applicable severance agreement between the Company and the Participant. 




        6.4   Company Release and Reassignment. Upon any termination of Company funding, the Company will release Insurance Policy
rights granted to it by the Assignment. Thereafter, the Company shall have no involvement whatsoever, directly or indirectly, in the Insurance Policy. From such date, the Participant shall be solely
responsible for the payment of any future premiums. 




        7.     Disqualification and Reduction, Loss, Forfeiture, or Denial of Benefits. The benefits to be provided under this Plan will
not be available to an Employee upon any of the following events: 



        (a)   Except
in the event of a Change in Control, the Company may, at any time, amend or terminate the Plan, provided that the Company may not reduce or modify the level of
benefits provided to the Participant prior to the amendment or termination without prior consent of the Participant; 


        (b)   In
the event the Plan is terminated, whether as to all Participants or as to an individual Participant, a Participant shall be able to preserve and continue the
Insurance Policy on his or her 



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life
by paying the Company its Corporate Capital Interest. Thereafter, the Participant will be responsible for all future premiums, and the Company shall have no involvement whatsoever, directly or
indirectly, in the Insurance Policy; 


        (c)   After
any termination of Company funding, policy benefits may be reduced or terminated with respect to a Participant if not properly funded by the Participant; or 


        (d)   The
amount of a Participant's death benefits may vary each year. Not in limitation, but in amplification of the foregoing, the Insurance Carrier's policy interest
crediting rate and the amount of the Corporate Capital Interest may vary the death benefits. 




        8.     Deferred Compensation and Benefits Trust. Upon the occurrence of a Change in Control of the Company or at any time
thereafter, the Company, in its sole discretion, may transfer to the DCB Trust cash, marketable securities, or other property acceptable to the trustee to pay the Company's obligations under this Plan
in whole or in part (the "Funding Amount"). Any cash, marketable securities, and other property so transferred shall be held, managed, and disbursed by the trustee subject to and in accordance with
the terms of the DCB Trust. In addition, from time to time, the Company may make additional transfers of cash, marketable securities, or other property acceptable to the trustee as desired by the
Company in its sole discretion to maintain or increase the Funding Amount with respect to this Plan. The assets of the DCB Trust, if any, shall be used to pay benefits under this Plan, except to the
extent the Company pays such benefits. The Company and any successor shall continue to be liable for the ultimate payment of those benefits. 



        8.1   Trustee's Rights and Obligation. In the event of a Change in Control, the trustee for the DCB Trust shall at all times
thereafter be obligated for amounts payable in accordance with the trustee's Payment Schedule, to the extent the DCB Trust is funded pursuant to Section 8. The Company shall notify the
Insurance Carrier of a Change in Control. 


        8.2   Plan Funding. In the event of a Change in Control, the Company shall be required to participate in the funding of each
Insurance Policy until the first of the events described in Subsections 6.3(a) or 6.3(b) occurs. 


        8.3   Termination of Funding. In the event of and after a Change in Control, the trustee shall be required to continue the
funding of the Insurance Policy until the later of (a) the applicable date specified in Subsections 6.3(a) or 6.3(b), whichever is earlier, or (b) the date specified in any severance
agreement between the Company and the Participant. 


        8.4   Amendment and Termination. In the event of and after a Change in Control, the Plan may not be amended or terminated and a
Participant shall have the right to rely on the continuation of the Funding of an Insurance Policy as provided in Section 8. 




        9.     Claim Procedure. All death benefits provided under the Plan are to be paid from the Insurance Policies. The Company has
adopted the claim procedure established by the Insurance Carrier as a claim procedure for the Plan. The beneficiary of the policy proceeds must file a claim for benefits with the Insurance
Carrier in whatever form the Insurance Carrier may reasonably require. If the Insurance Carrier denies the claim, the beneficiary who wants to have that denial reviewed will have to follow the
Insurance Carrier's claims-review procedure. The Company shall have no liability in the event an Insurance Carrier denies a beneficiary's claim for benefits. 


        10.   Miscellaneous. 



        10.1 Employment Not Guaranteed by Plan. This Plan is not intended to and does not create a contract of employment in any
manner. Employment with the Company is at will, which means that either the employee or the Company may end the employment relationship at any time and for any reason. Nothing in this Plan changes or
should be construed as changing that at-will relationship. 



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        10.2 Taxes. The Company shall deduct from each Participant's compensation all applicable federal or state taxes that may be
required by law to be withheld resulting from the Company's funding of the Insurance Policy under the Plan. 



        10.3 Governing Law, Jurisdiction, and Venue. The Plan shall be construed according to the laws of the state of Idaho to the
extent not preempted by federal law. In the event legal action is brought to enforce or interpret the Plan, such legal action may be brought only in federal district court for the District of Idaho in
Ada County, Idaho. 


        10.4 Form of Communication. Any election, application, claim, notice, or other communication required or permitted to be made
by a Participant to the Committee or the Company shall be made in writing and in such form as the Company may prescribe. Such communication shall be effective upon receipt by the Company's Salaried
and Executive Compensation Manager at 1111 West Jefferson Street, P.O. Box 50, Boise, Idaho 83728-0001. 


        10.5 Amendment and Termination. Except after a Change in Control, the Committee may, at any time, amend or terminate the
Plan. At any date of termination of the Plan not preceded by a Change in Control, a Participant shall be entitled to preserve and continue the Insurance Policy in accordance with Subsection 6.3(c). 



        10.6 Agent for Service of Process. The Company's General Counsel is designated as the agent to receive service of legal
process on behalf of the Plan. 




        11.   Statement of ERISA Rights. Each Participant in the Plan is entitled to certain rights and protections under the Employee
Retirement Income Security Act of 1974 (ERISA). ERISA provides that all Participants shall be entitled to: 



        (a)   Examine,
without charge, all Plan documents at the Company's headquarters in Boise, Idaho. 



        (b)   Obtain
copies of all Plan documents and other Plan information upon written request to the Plan Administrator. The Plan Administrator may make a reasonable charge for
the copies. 


        (c)   File
suit in a federal court if any materials requested are not received within 30 days of the Participant's request unless the materials were not sent because of
matters beyond the control of the Plan Administrator. The court may require the Plan Administrator to pay up to $100 for each day's delay until the materials are received. 


        In
addition to creating rights for Participants, ERISA imposes obligations upon the persons who are responsible for the operation of the Plan. As "fiduciaries," these persons must act
solely in the interest of the Participants, and they must exercise prudence in the performance of their Plan duties. Fiduciaries who violate ERISA may be removed and required to make good any losses
they have caused the Plan. The Company may not fire, discriminate against, or prevent a Participant from obtaining a welfare benefit or exercising his or her rights under ERISA. If a Participant is
improperly denied a welfare benefit in full or in part, he or she has a right to file suit in a federal or state court. If Plan fiduciaries are misusing the Plan's money, a Participant has a right to
file suit in a federal court or request assistance from the U.S. Department of Labor. If a Participant is successful in the lawsuit, the court may, if it so decides, require the other party to pay his
or her legal costs, including attorneys' fees. 


        If
a Participant has any questions about the foregoing, or his or her rights under ERISA, the Participant should contact the Plan Administrator or the nearest area office of the U.S.
Labor-Management Service Administration, Department of Labor. 



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QuickLinks



Exhibit 10.21


BOISE CASCADE CORPORATION 1995 SPLIT-DOLLAR LIFE INSURANCE PLAN (As Amended Through September 26, 2003)