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                                                                     Exhibit 4.4
                                                                   Tiffany & Co.
                                                             Report on Form 10-K

                              AMENDED AND RESTATED

                                  TIFFANY & CO.

                          1998 EMPLOYEE INCENTIVE PLAN

                                    SECTION 1

                                     GENERAL

      1.1 Purpose. The Tiffany & Co. Employee Incentive Plan (the "Plan") has
been established by Tiffany & Co., a Delaware corporation, (the "Company") to
(i) attract and retain employees; (ii) motivate Participants to achieve the
Company's operating and strategic goals by means of appropriate incentives;
(iii) provide incentive compensation opportunities that are competitive with
those of other companies competing with the Company and its Related Companies
for employees; and (iv) further link Participants' interests with those of the
Company's other stockholders through compensation that is based on the Company's
Common Stock, thereby promoting the long-term financial interests of the Company
and its Related Companies, including the growth in value of the Company's
stockholders' equity and the enhancement of long-term returns to the Company's
stockholders.

      1.2 Participation. Subject to the terms and conditions of the Plan, the
Committee shall, from time to time, determine and designate from among Eligible
Individuals those persons who will be granted one or more Awards under the Plan.
Eligible Individuals who are granted Awards become "Participants" in the Plan.
In the discretion of the Committee, a Participant may be granted any Award
permitted under the provisions of the Plan, and more than one Award may be
granted to a Participant. Awards need not be identical but shall be subject to
the terms and conditions specified in the Plan. Subject to the last two
sentences of subsection 2.2 of the Plan, Awards may be granted as alternatives
to or in replacement for awards outstanding under the Plan, or any other plan or
arrangement of the Company or a Related Company (including a plan or arrangement
of a business or entity, all or a portion of which is acquired by the Company or
a Related Company).

      1.3 Operation, Administration, and Definitions. The operation and
administration of the Plan, including the Awards made under the Plan, shall be
subject to the provisions of Section 4 (relating to operation and
administration). Initially capitalized terms used in the Plan shall be defined
as set forth in the Plan (including in the definitional provisions of Section 7
of the Plan).

                                    SECTION 2

                                OPTIONS AND SARS

      2.1 Definitions.

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      (a)   The grant of an "Option" entitles the Participant to purchase Shares
            at an Exercise Price established by the Committee. Options granted
            under this Section 2 may be either Incentive Stock Options or
            Non-Qualified Stock Options, as determined in the discretion of the
            Committee. An "Incentive Stock Option" is an Option that is intended
            to satisfy the requirements applicable to an "incentive stock
            option" described in section 422(b) of the Code. A "Non-Qualified
            Option" is an Option that is not intended to be an "incentive stock
            option" as that term is described in section 422(b) of the Code.

      (b)   The grant of a stock appreciation right (an "SAR") entitles the
            Participant to receive, in cash or Shares, value equal to all or a
            portion of the excess of: (a) Fair Market Value of a specified
            number of Shares at the time of exercise, over (b) an Exercise Price
            established by the Committee.

      2.2 Exercise Price. The per-Share "Exercise Price" of each Option and SAR
granted under this Section 2 shall be established by the Committee or shall be
determined by a formula established by the Committee at the time the Option or
SAR is granted; except that the Exercise Price shall not be less than 100% of
the Fair Market Value of a Share as of the Pricing Date. For purposes of the
preceding sentence, the "Pricing Date" shall be the date on which the Option or
SAR is granted unless the Option or SAR is granted on a date on which the
principal exchange on which the Shares are then listed or admitted to trading is
closed for trading, in which case the "Pricing Date" shall be the most recent
date on which such exchange was open for trading prior to such grant date;
except that the Committee may provide that: (i) the Pricing Date is the date on
which the recipient is hired or promoted (or similar event), if the grant of the
Option or SAR occurs not more than 90 days after the date of such hiring,
promotion or other event; and (ii) if an Option or SAR is granted in tandem
with, or in substitution for, an outstanding Award, the Pricing Date is the date
of grant of such outstanding Award. Except as provided in subsection 4.2(c), the
Exercise Price of any Option or SAR may not be decreased after the grant of the
Award. Neither an Option nor an SAR may be surrendered as consideration in
exchange for a new Award with a lower Exercise Price.

      2.3 Exercise. Options and SARs shall be exercisable in accordance with
such terms and conditions and during such periods as may be established by the
Committee provided that no Option or SAR shall be exercisable after, and each
Option and SAR shall become void no later than, the tenth (10th) anniversary
date of the date of grant of such Option or SAR.

      2.4 Payment of Option Exercise Price. The payment of the Exercise Price of
an Option granted under this Section 2 shall be subject to the following:

      (a)   The Exercise Price may be paid by ordinary check or such other form
            of tender as the Committee may specify.

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Amendment to Plan Approved May 19, 2005

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      (b)   If permitted by the Committee, the Exercise Price for Shares
            purchased upon the exercise of an Option may be paid in part or in
            full by tendering Shares (by either actual delivery of Shares or by
            attestation, with such Shares valued at Fair Market Value as of the
            date of exercise). The Committee may refuse to accept payment in
            Shares if such payment would result in an accounting charge to the
            Company.

      (c)   The Committee may permit a Participant to elect to pay the Exercise
            Price upon the exercise of an Option by irrevocably authorizing a
            third party to sell Shares acquired upon exercise of the Option (or
            a sufficient portion of such Shares) and remit to the Company a
            sufficient portion of the sale proceeds to pay the entire Exercise
            Price and any tax withholding resulting from such exercise.

                                    SECTION 3
                               OTHER STOCK AWARDS

      3.1 Definition. A "Stock Award" is a grant of Shares or of a right to
receive Shares (or their cash equivalent or a combination of both).

      3.2 Restrictions on Stock Awards. Each Stock Award shall be subject to
such conditions, restrictions and contingencies as the Committee shall
determine. These may include continuous service and/or the achievement of
Performance Goals.

                                    SECTION 4
                          OPERATION AND ADMINISTRATION

      4.1 Effective Date and Duration. Subject to approval of the stockholders
of the Company at the Company's 1998 annual meeting, the Plan shall be effective
as of May 1, 1998 (the "Effective Date") and shall remain in effect as long as
any Awards under the Plan are outstanding; provided, however, that, no Award may
be granted or otherwise made under the Plan after April 30, 2005.

      4.2 Shares Subject to Plan.

      (a)   (i) Subject to the following provisions of this subsection 4.2, the
            maximum number of Shares that may be delivered to Participants and
            their beneficiaries under the Plan shall be equal to the sum of: (I)
            Twelve Million (12,000,000) Shares; (II) any Shares available for
            future awards under the Company's 1986 Stock Option Plan, as amended
            (the "1986 Plan") as of May 1, 1998; (III) any Shares that are
            represented by awards granted under the 1986 Plan which are
            forfeited, expire or are canceled without delivery of Shares or
            which result in the forfeiture of Shares back to the Company; and
            (IV) up to One Million (1,000,000) Shares, to the extent authorized
            by the Board, which are reacquired in the open market or in a
            private transaction after the Effective Date, provided, however that

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Amendment to Plan Approved May 19, 2005

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            the aggregate number of shares available under categories (II),
            (III), and (IV), shall not exceed Three Million (3,000,000) Shares.

            (ii) Any Shares granted under the Plan that are forfeited because of
            the failure to meet an Award contingency or condition shall again be
            available for delivery pursuant to new Awards granted under the
            Plan. To the extent any Shares covered by an Award are not delivered
            to a Participant or a Participant's beneficiary because the Award is
            forfeited or canceled, or the Shares are not delivered because the
            Award is settled in cash, such Shares shall not be deemed to have
            been delivered for purposes of determining the maximum number of
            Shares available for delivery under the Plan.

            (iii) If the Exercise Price of any Option granted under the Plan or
            the 1986 Plan is satisfied by tendering Shares to the Company (by
            either actual delivery or attestation) or by the Company withholding
            shares, only the number of Shares issued net of the Shares tendered
            or withheld shall be deemed delivered for purposes of determining
            the maximum number of Shares available for delivery under the Plan.

            (iv) Shares delivered under the Plan in settlement, assumption or
            substitution of outstanding awards (or obligations to grant future
            awards) under the plans or arrangements of another entity shall not
            reduce the maximum number of Shares available for delivery under the
            Plan, to extent that such settlement, assumption or substitution
            occurs as a result of the Company or a Related Company acquiring
            another entity (or an interest in another entity).

      (b)   Subject to adjustment under paragraph 4.2(c), the following
            additional maximum limitations are imposed under the Plan:

            (i) The aggregate maximum number of Shares that may be issued under
            Options intended to be Incentive Stock Options shall be One Million
            (1,000,000) shares.

            (ii) The aggregate maximum number of Shares that may be issued in
            conjunction with Awards granted pursuant to Section 3 (relating to
            Stock Awards) and Section 8 (relating to Other Incentive Awards to
            the extent such Awards are settled with Shares) shall be One Million
            (1,000,000) shares.

            (iii) Unless the Committee determines that an Award to a Named
            Executive Officer shall not be designed to comply with the
            Performance-Based Exception, the following limitations shall apply:

                  (A) In any fiscal year of the Company, the aggregate number of
                  Shares that may be granted to any Participant pursuant to any
                  and

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 Stock Split on 7/20/99 and 7/21/2000
Amendment to Plan Approved May 18, 2000
Amendment to Plan Approved May 15, 2003
Amendment to Plan Approved May 19, 2005

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                  all Awards (including Options, SARs and Stock Awards) shall
                  not exceed Four Hundred Thousand (400,000); and

                  (B) In any fiscal year of the Company, the maximum aggregate
                  cash payout with respect to Other Incentive Awards granted in
                  any fiscal year of the Company pursuant to Section 8 of the
                  Plan which may be made to any Named Executive Officer shall be
                  Two Million Dollars ($2,000,000).

      (c)   If the outstanding Shares are increased or decreased, or are changed
            into or exchanged for cash, property or a different number or kind
            of shares or securities, or if cash, property, Shares or other
            securities are distributed in respect of such outstanding Shares, in
            either case as a result of one or more mergers, reorganizations,
            reclassifications, recapitalizations, stock splits, reverse stock
            splits, stock dividends, dividends (other than regular, quarterly
            dividends), or other distributions, spin-offs or the like, or if
            substantially all of the property and assets of the Company are
            sold, then, unless the terms of the transaction shall provide
            otherwise, appropriate adjustments shall be made in the number
            and/or type of Shares or securities for which Awards may thereafter
            be granted under the Plan and for which Awards then outstanding
            under the Plan may thereafter be exercised. Any such adjustments in
            outstanding Awards shall be made without changing the aggregate
            Exercise Price applicable to the unexercised portions of outstanding
            Options or SARs. The Committee shall make such adjustments to
            preserve the benefits or potential benefits of the Plan and the
            Awards; such adjustments may include, but shall not be limited to,
            adjustment of: (i) the number and kind of shares which may be
            delivered under the Plan; (ii) the number and kind of shares subject
            to outstanding Awards; (iii) the Exercise Price of outstanding
            Options and SARs; (iv) the limits specified in subsections 4.2(a)(i)
            and 4.2(b) above: and (v) any other adjustments that the Committee
            determines to be equitable. No right to purchase or receive
            fractional shares shall result from any adjustment in Options, SARs
            or Stock Awards pursuant to this paragraph 4.2(c). In case of any
            such adjustment, Shares subject to the Option, SAR or Stock Award
            shall be rounded up to the nearest whole Share.

      4.3 Limit on Distribution. Distribution of Shares or other amounts under
the Plan shall be subject to the following:

      (a)   Notwithstanding any other provision of the Plan, the Company shall
            have no obligation to deliver any Shares under the Plan or make any
            other distribution of benefits under the Plan unless such delivery
            or distribution would comply with all applicable laws (including,
            without limitation, the requirements of the Securities Act of 1933)
            and the applicable requirements of any securities exchange or
            similar entity, and the

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Amendment to Plan Approved May 15, 2003
Amendment to Plan Approved May 19, 2005

<PAGE>

            Committee may impose such restrictions on any Shares acquired
            pursuant to the Plan as the Committee may deem advisable, including,
            without limitation, restrictions under applicable federal securities
            laws, under the requirements of any Stock exchange or market upon
            which such Shares are then listed and/or traded, and under any blue
            sky or state securities laws applicable to such Shares. In the event
            that the Committee determines in its discretion that the
            registration, listing or qualification of the Shares issuable under
            the Plan on any securities exchange or under any applicable law or
            governmental regulation is necessary as a condition to the issuance
            of such Shares under an Option or Stock Award, such Option or Stock
            Award shall not be exercisable or exercised in whole or in part
            unless such registration, listing and qualification, and any
            necessary consents or approvals have been unconditionally obtained.

      (b)   Distribution of Shares under the Plan may be effected on a
            non-certificated basis, to the extent not prohibited by applicable
            law or the applicable rule of any stock exchange.

      4.4 Tax Withholding. Before distribution of Shares under the Plan, the
Company may require the recipient to remit to the Company an amount sufficient
to satisfy any federal, state or local tax withholding requirements or, in the
discretion of the Committee, the Company may withhold from the Shares to be
delivered and/or otherwise issued Shares sufficient to satisfy all or a portion
of such tax withholding requirements. Whenever under the Plan payments are to be
made in cash, such payments may be net of an amount sufficient to satisfy any
federal, state or local tax withholding requirements. Neither the Company nor
any Related Company shall be liable to a Participant or any other person as to
any tax consequence expected, but not realized, by any Participant or other
person due to the receipt or exercise of any Award hereunder.

      4.5 Payment for Shares. Subject to the limitations of subsection 4.2 on
the number of Shares that may be delivered under the Plan, the Committee may use
available Shares as the form of payment for compensation, grants or rights
earned or due under any other compensation plans or arrangements of the Company
or a Related Company, including the plans and arrangements of the Company or a
Related Company acquiring another entity (or an interest in another entity). The
Committee may provide in the Award Agreement that the Shares to be issued upon
exercise of an Option or an SAR or receipt of a Stock Award shall be subject to
such further conditions, restrictions or agreements as the Committee in its
discretion may specify, including without limitation, conditions on vesting or
transferability, and forfeiture and repurchase provisions.

      4.6 Dividends and Dividend Equivalents. An Award may provide the
Participant with the right to receive dividends or dividend equivalent payments
with respect to Shares which may be either paid currently or credited to an
account for the Participant, and which may be settled in cash or Shares as
determined by the Committee. Any such settlements, and any such crediting of
dividends or dividend equivalents or reinvestment in Shares may be subject to
such conditions, restrictions and contingencies

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 Stock Split on 7/20/99 and 7/21/2000
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Amendment to Plan Approved May 15, 2003
Amendment to Plan Approved May 19, 2005

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as the Committee shall establish, including reinvestment of such credited
amounts in Share equivalents.

      4.7 Settlements; Deferred Delivery. Awards may be settled through cash
payments, the delivery of Shares, the granting of replacement Awards, or
combinations thereof, all subject to such conditions, restrictions and
contingencies as the Committee shall determine. The Committee may establish
provisions for the deferred delivery of Shares upon the exercise of an Option or
SAR or receipt of a Stock Award with the deferral evidenced by use of "Stock
Units" equal in number to the number of Shares whose delivery is so deferred. A
"Stock Unit" is a bookkeeping entry representing an amount equivalent to the
Fair Market Value of one Share. Stock Units represent an unfunded and unsecured
obligation of the Company except as otherwise provided by the Committee.
Settlement of Stock Units upon expiration of the deferral period shall be made
in Shares or otherwise as determined by the Committee. The amount of Shares, or
other settlement medium, to be so distributed may be increased by an interest
factor or by dividend equivalents. Until a Stock Unit is settled, the number of
Shares represented by a Stock Unit shall be subject to adjustment pursuant to
paragraph 4.2(c). Unless otherwise specified by the Committee, any deferred
delivery of Shares pursuant to an Award shall be settled by the delivery of
Shares no later than the 60th day following the date the person to whom such
deferred delivery must be made ceases to be an employee of the Company or a
Related Company.

      4.8 Transferability. Unless otherwise provided by the Committee, any
Option and SAR granted under the Plan, and, until vested, any Stock Award or
other Shares-based Award granted under the Plan, shall by its terms be
nontransferable by the Participant otherwise than by will, the laws of descent
and distribution or pursuant to a "domestic relations order", as defined in the
Code or Title I of the Employee Retirement Income Security Act or the rules
thereunder, and shall be exercisable by, or become vested in, during the
Participant's lifetime, only the Participant.

      4.9 Form and Time of Elections. Unless otherwise specified herein, each
election required or permitted to made by any Participant or other person
entitled to benefits under the Plan, and any permitted modification, or
revocation thereof, shall be in writing filed with the secretary of the Company
at such times, in such form, and subject to such restrictions and limitations,
not inconsistent with the terms of the Plan, as the Committee shall require.

      4.10 Award Agreements with Company; Vesting and Acceleration of Vesting of
Awards. At the time of an Award to a participant under the Plan, the Committee
may require a Participant to enter into an agreement with the Company (an "Award
Agreement") in a form specified by the Committee, agreeing to the terms and
conditions of the Plan and to such additional terms and conditions, not
inconsistent with the Plan, as the Committee may, in its sole discretion,
prescribe, including, but not limited to, conditions to the vesting or
exercisability of an Award, such as continued service to the Company or a
Related Company for a specified period of time. The Committee may waive such
conditions to and/or accelerate exerciability or vesting of an Option, SAR or

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 Stock Split on 7/20/99 and 7/21/2000
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Amendment to Plan Approved May 19, 2005

<PAGE>

Stock Award, either automatically upon the occurrence of specified events
(including in connection with a change of control of the Company) or otherwise
in its discretion.

      4.11 Limitation of Implied Rights.

      (a)   Neither a Participant nor any other person shall, by reason of the
            Plan or any Award Agreement, acquire any right in or title to any
            assets, funds or property of the Company or any Related Company
            whatsoever, including, without limitation, any specific funds,
            assets, or other property which the Company or any Related Company,
            in their sole discretion, may set aside in anticipation of a
            liability under the Plan. A Participant shall have only a
            contractual right to the Shares or amounts, if any, payable under
            the Plan, unsecured by the assets of the Company or of any Related
            Company. Nothing contained in the Plan or any Award Agreement shall
            constitute a guarantee that the assets of such companies shall be
            sufficient to pay any benefits to any person.

      (b)   Neither the Plan nor any Award Agreement shall constitute a contract
            of employment, and selection as a Participant will not give any
            employee the right to be retained in the employ of the Company or
            any Related Company, nor any right or claim to any benefit under the
            Plan, unless such right or claim has specifically accrued under the
            terms of the Plan or an Award. Except as otherwise provided in the
            Plan, no Award under the Plan shall confer upon the holder thereof
            any right as a stockholder of the Company prior to the date on which
            the individual fulfills all conditions for receipt of such rights.

      4.12 Evidence. Evidence required of anyone under the Plan may be by
certificate, affidavit, document or other information which an officer of the
Company acting on it considers pertinent and reliable, and signed, made or
presented by the proper party or parties.

      4.13 Action by Company or Related Company. Any action required or
permitted to be taken by the Company or any Related Company shall be by
resolution of its board of directors, or by action of one or more members of
such board (including a committee of such board) who are duly authorized to act
for such board, or (except to the extent prohibited by applicable law or
applicable rules of any Stock exchange) by a duly authorized officer of the
Company or such Related Company.

      4.14 Gender and Number. Where the context admits, words in any gender
shall include any other gender, words in the singular shall include the plural
and the plural shall include the singular.

      4.15 Liability for Cash Payments. Each Related Company shall be liable for
payment of cash due under the Plan with respect to any Participant to the extent
that such benefits are attributable to the services rendered for that Related
Company by such

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Amendment to Plan Approved May 19, 2005

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Participant. Any disputes relating to liability of a Related Company for cash
payments shall be resolved by the Committee.

      4.16 Non-exclusivity of the Plan. Neither the adoption of the Plan by the
Board of Directors of the Company nor the submission of the Plan to the
stockholders of the Company for approval shall be construed as creating any
limitations on the power of such Board of Directors or a committee of such Board
to adopt such other incentive arrangements as it or they may deem desirable,
including without limitation, the granting of restricted stock, stock options or
cash bonuses otherwise than under the Plan, and such arrangements may be
generally applicable or applicable only in specific cases.

                                    SECTION 5
                                    COMMITTEE

      5.1 Administration. The authority to control and manage the operation and
administration of the Plan shall be vested in a committee (the "Committee") in
accordance with this Section 5.

      5.2 Selection of Committee. The Committee shall be selected by the Board
and shall consist of two or more members of the Board.

      5.3 Powers of Committee. The authority to manage and control the operation
and administration of the Plan shall be vested in the Committee, subject to the
following:

      (a)   Subject to the provisions of the Plan, the Committee will have the
            authority and discretion to select from amongst Eligible Individuals
            those persons who shall receive Awards, to determine who is an
            Eligible Individual, to determine the time or time of receipt, to
            determine the types of Awards and the number of Shares covered by
            the Awards, to establish the terms, conditions, Performance Goals,
            restrictions, and other provisions of such Awards and Award
            Agreements, and (subject to the restrictions imposed by Section 6)
            to cancel, amend or suspend Awards. In making such Award
            determinations, the Committee may take into account the nature of
            services rendered by the Eligible Individual, the Eligible
            Individual's present and potential contribution to the Company's or
            a Related Company's success and such other factors as the Committee
            deems relevant.

      (b)   Subject to the provisions of the Plan, the Committee will have the
            authority and discretion to determine the extent to which Awards
            under the Plan will be structured to conform to the requirements of
            the Performance-Based Exception and to take such action, establish
            such procedures, and impose such restrictions at the time Awards are
            granted as the Committee determines to be necessary or appropriate
            to conform to such requirements.

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Amendment to Plan Approved May 19, 2005

<PAGE>

      (c)   The Committee will have the authority and discretion to establish
            terms and conditions of Awards as the Committee determines to be
            necessary or appropriate to conform to applicable requirements or
            practices of jurisdictions outside the United States.

      (d)   The Committee will have the authority and discretion to interpret
            the Plan, to establish, amend and rescind any rules and regulations
            relating to the Plan, to determine the terms and provisions of any
            Award Agreements, and to make all other determinations that may be
            necessary or advisable for the administration of the Plan.

      (e)   Any interpretation of the Plan by the Committee and any decision
            made by the Committee under the Plan is final and binding.

      (f)   In controlling and managing the operation and administration of the
            Plan, the Committee shall act by a majority of its then members, by
            meeting or by writing filed without a meeting. The Committee shall
            maintain adequate records concerning the Plan and concerning its
            proceedings and acts in such form and detail as the Committee may
            decide.

      5.4 Delegation by Committee. Except to the extent prohibited by applicable
law or the applicable rules of a Stock exchange, the Committee may allocate all
or any portion of its powers and responsibilities to any one or more of its
members and may delegate all or part of its responsibilities and powers to any
person or persons selected by it. Any such allocation or delegation may be
revoked by the Committee at any time.

      5.5 Information to be Furnished to Committee. The Company and Related
Companies shall furnish the Committee with such data and information as may be
requested by the Committee in order to discharge its duties. The records of the
Company and Related Companies as to an Eligible Individual's or a Participant's
employment, consulting services, termination of employment or services, leave of
absence, reemployment and compensation shall be conclusive on all persons unless
determined to be incorrect by the Committee. Participants and other persons
entitled to benefits under the Plan must furnish the Committee such evidence,
data or information as the Committee considers necessary or desirable to carry
out the terms of the Plan.

                                    SECTION 6
                            AMENDMENT AND TERMINATION

      6.1 Board's Right to Amend or Terminate. Subject to the limitations set
forth in this Section 6, the Board may, at any time, amend or terminate the
Plan.

      6.2 Amendments Requiring Stockholder Approval. Other than as provided in
subsection 4.2 (c) (relating to certain adjustments to shares), the approval of
the Company's stockholders shall be required for any amendment which: (i)
materially

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 Stock Split on 7/20/99 and 7/21/2000
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Amendment to Plan Approved May 15, 2003
Amendment to Plan Approved May 19, 2005

<PAGE>

increases the maximum number of Shares that may be delivered to Participants
under the Plan set forth in subsection 4.2(a); (ii) increases the maximum
limitations contained in Section 4.2(b); (iii) decreases the exercise price of
any Option or SAR below the minimum provided in subsection 2.2; (iv) modifies or
eliminates the provisions stated in the final two sentences of subsection 2.2;
or (v) increases the maximum term of any Option or SAR set forth in Section 2.3.
Whenever the approval of the Company's stockholders is required pursuant to this
subsection 6.2, such approval shall be sufficient if obtained by a majority vote
of those stockholders present or represented and actually voting on the matter
at a meeting of stockholders duly called, at which meeting a majority of the
outstanding shares actually vote on such matter.

                                    SECTION 7
                                  DEFINED TERMS

For the purposes of the Plan, the terms listed below shall be defined as
follows:

Award. The term "Award" shall mean, individually and collectively, any award or
benefit granted to any Participant under the Plan, including, without
limitation, the grant of Options, SARs, Stock Awards and Other Incentive Awards.

Award Agreement. The term "Award Agreement" is defined in subsection 4.10.

Board. The term "Board" shall mean the Board of Directors of the Company.

Code. The term "Code" shall mean the Internal Revenue Code of 1986, as amended.
A reference to any provision of the Code shall include reference to any
successor provision of the Code or of any law that is enacted to replace the
Code.

Eligible Individual. The term "Eligible Individual" shall mean any employee of
the Company or a Related Company. For purposes of the Plan, the status of the
Chairman of the Board of Directors as an employee shall be determined by the
Committee.

Fair Market Value. For purposes of determining the "Fair Market Value" of a
Share, the following rules shall apply:

      (i) If the Shares are at the time listed or admitted to trading on any
      stock exchange, then the Fair Market Value shall be the mean between the
      lowest and the highest reported sales prices of the Shares on the date in
      question on the principal exchange on which the Shares are then listed or
      admitted to trading. If no reported sale of Shares take place on the date
      in question on the principal exchange, then the reported closing asked
      price of the Shares on such date on the principal exchange shall be
      determinative of Fair Market Value.

      (ii) If the Shares are not at the time listed or admitted to trading on a
      stock exchange, the Fair Market Value shall be the mean between the lowest
      reported bid price and the highest reported asked price of the Shares on
      the date in question

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 Stock Split on 7/20/99 and 7/21/2000
Amendment to Plan Approved May 18, 2000
Amendment to Plan Approved May 15, 2003
Amendment to Plan Approved May 19, 2005

<PAGE>

      in the over-the-counter market, as such prices are reported in a
      publication of general circulation selected by the Committee and regularly
      reporting the market price of the Shares in such market.

      (iii) If the Shares are not listed or admitted to trading on any stock
      exchange or traded in the over-the-counter market, the Fair Market Value
      shall be as determined by the Committee, acting in good faith.

Named Executive Employee. The term "Named Executive Employee" means a
Participant who, as of the date of vesting and/or payout of an Award, as
applicable, is one of the group of covered employees, as defined in the
regulations promulgated under Code section 162(m), or any successor statute.

Participant. The term "Participant" means an Eligible Individual who has been
granted an Award under the Plan. For purposes of the administration of Awards,
the term Participant shall also include a former employee or any person
(including an estate) who is a beneficiary of a former employee and any person
(including any estate) to whom an Award has been assigned or transferred as
permitted by the Committee.

Performance-Based Exception. The term "Performance-Based Exception" means the
performance-based exception from the tax deductibility limitations of Code
section 162(m).

Performance Goals. The term "Performance Goals" means one or more objective
targets measured by the Performance Measure, the attainment of which may
determine the degree of payout and/or vesting with respect to Awards.

Performance Period. The term "Performance Period" means the time period during
which Performance Goals must be achieved with respect to an Award, as determined
by the Committee, but which period shall not be shorter than one of the
Company's fiscal years.

Performance Measure. The term "Performance Measure" refers to the performance
measures discussed in Section 9 of the Plan.

Related Companies. The term "Related Company" means

      (i) any corporation, partnership, joint venture or other entity during any
      period in which such corporation, partnership, joint venture or other
      entity owns, directly or indirectly, at least fifty percent (50%) of the
      voting power of all classes of voting shares of the Company (or any
      corporation, partnership, joint venture or other entity which is a
      successor to the Company);

      (ii) any corporation, partnership, joint venture or other entity during
      any period in which the Company (or any corporation, partnership, joint
      venture or other entity which is a successor to the Company or any entity
      that is a Related Company by

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 Stock Split on 7/20/99 and 7/21/2000
Amendment to Plan Approved May 18, 2000
Amendment to Plan Approved May 15, 2003
Amendment to Plan Approved May 19, 2005

<PAGE>

      reason of clause (i) next above) owns, directly or indirectly, at least a
      fifty percent (50%) voting or profits interest; or

      (iii) any business venture in which the Company has a significant
      interest, as determined in the discretion of the Committee.

Shares. The term "Shares" shall mean shares of the Common Stock of the Company,
$.01 par value, as presently constituted, subject to adjustment as provided in
paragraph 4.2(c) above.

                                    SECTION 8
                             OTHER INCENTIVE AWARDS

      8.1 Grant of Other Incentive Awards. Subject to the terms and provisions
of the Plan, Other Incentive Awards may be granted Eligible Individuals, in such
amount, upon such terms, and at any time and from time to time as shall be
determined by the Committee.

      8.2 Other Incentive Award Agreement. Each Other Incentive Award shall be
evidenced by an Award Agreement that shall specify the amount of the Other
Incentive Award or the means by which it will be calculated, the terms and
conditions applicable to such Award, the applicable Performance Period and
Performance Goals, if any, and such other provisions as the Committee shall
determine, in all cases subject to the terms and provisions of the Plan.

      8.3 Nontransferability. Except as otherwise provided in the applicable
Award Agreement, Other Incentive Awards may not be sold, transferred, pledged,
assigned or otherwise alienated or hypothecated, other than by will or the laws
of descent and distribution.

      8.4 Form and Timing of Payment of Other Incentive Awards. Payment of Other
Incentive Awards shall be made in cash and at such times as established by the
Committee subject to the terms of the Plan.

                                    SECTION 9
                           PERFORMANCE-BASED EXCEPTION

            9.1 Performance Measures. Unless and until the Board proposes for
      stockholder vote and the stockholders of the Company approve a change
      thereto, the Performance Measures used to determine the attainment of
      Performance Goals with respect to Other Incentive Awards and Stock Awards
      to Named Executive Employees which are designed to qualify for the
      Performance-Based Exception shall be any one or more of the following: (I)
      as reported in the Company's Annual Report to Stockholders which is
      included in the Company's Annual Report on Form 10-K, (A) the Company's
      consolidated net earnings or (B) the Company's consolidated earnings per
      share on a diluted basis; and (II) the Company's consolidated return on
      average assets in each of the

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 Stock Split on 7/20/99 and 7/21/2000
Amendment to Plan Approved May 18, 2000
Amendment to Plan Approved May 15, 2003
Amendment to Plan Approved May 19, 2005

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fiscal years in the Performance Period, expressed as a percentage, and then
averaged over the entire Performance Period; in each of the fiscal years in the
Performance Period, average assets will be computed by averaging total assets at
the beginning and at the end of the fiscal year; to compute return on average
assets in any such fiscal year, net earning for such fiscal year shall be
divided by average assets. The Committee may appropriately adjust any evaluation
of performance under a Performance Goal to exclude any of the following events
that occurs during a Performance Period: (i) asset write-downs, (ii) litigation
or claim judgment or settlements, (iii) the effect of changes in tax law,
accounting principles or other such laws or provisions affecting reported
results, (iv) accruals for reorganization and restructuring programs, and (v)
extraordinary non-recurring items as described in Accounting Principles Board
Opinion No. 30 and/or in management's discussion and analysis of financial
condition and results of operations appearing in said Annual Report for the
applicable year.

      9.2 Discretion to Adjust Awards/Performance Goals. The Committee may
retain the discretion to adjust the determination of the degree of attainment of
the pre-established Performance Goals for Awards; provided, however, that Awards
which are designed to qualify for the Performance-Based Exception, and which are
held by Named Executive Officers, may not be subjected to an adjustment which
would yield an increased payout, although the Committee may retain the
discretion to make an adjustment which would yield a decreased payout. In the
event that applicable tax and/or securities laws change to permit the Committee
discretion to alter the governing Performance Measure for Awards designed to
quality for the Performance-Based Exception and held by Named Executive Officers
without obtaining stockholder approval of such change, the Committee shall have
sole discretion to make such change without obtaining stockholder approval. In
addition, in the event that the Committee determines that it is advisable to
grant Awards which will not qualify for the Performance-Based Exception, the
Committee may make such grants without satisfying the requirements of Code
Section 162(m).

                                   SECTION 10
                                   SUCCESSORS

      All obligations of the Company under the Plan with respect to Awards shall
be binding on any successor to the Company, whether the existence of such
successor is the result of a direct or indirect purchase, merger, consolidation
or otherwise, of all or substantially all of the business and/or assets of the
Company.

1998 EMPLOYEE INCENTIVE PLAN                                             Page 14
Amended & Restated to Reflect 2 for 1
 Stock Split on 7/20/99 and 7/21/2000
Amendment to Plan Approved May 18, 2000
Amendment to Plan Approved May 15, 2003
Amendment to Plan Approved May 19, 2005