| (1) | Communications      - The chairperson and others on the committee shall, to the extent      appropriate, have contact throughout the year with senior management,      other committee chairpersons, and other key committee advisors, external      and internal auditors, etc., as applicable, to strengthen the committee's      knowledge of relevant current and prospective business    issues. |
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| (2) | Committee      Education/Orientation - The committee, with management, shall develop and      participate in a process for review of important financial and operating      topics that present potential significant risk to the company.      Additionally, individual committee members are encouraged to participate      in relevant and appropriate self-study education to assure understanding      of the business and environment in which the company    operates. |
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| (3) | Annual      Plan - The committee, with input from management and other key committee      advisors, shall develop an annual plan responsive to the "primary      committee responsibilities" detailed herein. The annual plan shall be      reviewed and approved by the fullboard. |
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| (4) | Meeting      Agenda - Committee meeting agendas shall be the responsibility of the      committee chairperson, with input from committee members. It is expected      that the chairperson would also ask for management and key committee      advisors, and perhaps others, to participate in this    process. |
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| (5) | Committee      Expectations and Information Needs - The committee shall communicate      committee expectations and the nature, timing, and extent of committee      information needs to management, internal audit, and external parties,      including external auditors. Written materials. including key performance      indicators and measures related to key business and financial risks, shall      be received from management, auditors, and others at least one week in      advance of meeting dates. Meeting conduct will assume board members have      reviewed written materials in sufficient depth to participate in      committee/board dialogue. |
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| (6) | External      Resources -The committee shall be authorized to access internal and      external resources, as the committee requires, to carry out its      responsibilities. |
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| (7) | Committee      Meeting Attendees - The committee shall request members of management,      counsel, internal audit, and external auditors, as applicable, to      participate in committee meetings, as necessary, to carry out the      committee responsibilities. Periodically and at least annually, the      committee shall meet in private session with only the committee members.      It shall be understood that either internal or external auditors, or      counsel, may, at any time, request a meeting with the audit committee or      committee chairperson with or without management attendance. In any case,      the committee shall meet in executive session separately with internal and      external auditors, at leastannually. |
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| (8) | Reporting      to the Board of Directors - The committee, through the committee      chairperson, shall report periodically, as deemed necessary, but at least      semi-annually, to the full board. In addition, summarized minutes from      committee meetings, separately identifying monitoring activities from      approvals, shall be available to each board member at least one week prior      to the subsequent board of directorsmeeting. |
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| (9) | Committee      Self Assessment - The committee shall review, discuss, and assess its own      performance as well as the committee role and responsibilities, seeking      input from senior management, the full board, and others. Changes in role      and/or responsibilities, if any, shall be recommended to the full board      for approval. |
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| (1) | The      external auditors, in their capacity as independent public accountants,      shall be responsible to the board of directors and the audit committee as      representatives of theshareholders. |
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| (2) | As      the external auditors review financial reports, they will be reporting to      the audit committee. They shall report all relevant issues to the      committee responsive to agreed-on committee expectations. In executing its      oversight role, the board or committee should review the work of external      auditors. |
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| (3) | The      committee shall annually review the performance (effectiveness,      objectivity, and independence) of the external and internal auditors. The      committee shall ensure receipt of a formal written statement from the      external auditors consistent with standards set by the Independent      Standards Board and the Securities and Exchange Commission. Additionally,      the committee shall discuss with the auditor relationships or services      that may affect auditor objectivity or independence. If the committee is      not satisfied with the auditors' assurances of independence, it shall take      or recommend to the full board appropriate action to ensure the      independence of the externalauditor. |
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| (4) | The      internal audit function shall be responsible to the board of directors      through the committee. |
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| (5) | If      either the internal or the external auditors identify significant issues      relative to the overall board responsibility that have been communicated      to management but, in their judgment, have not been adequately addressed,      they should communicate these issues to the committee      chairperson. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Changes      in the directors of internal audit or corporate compliance shall be      subject to committee approval. |
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| (1) | Risk      Management - The company's business risk management process, including the      adequacy of the company's overall control environment and controls in      selected areas representing significant financial and business      risk. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Annual      Reports and Other Major Regulatory Filings - All major financial reports      in advance of filings ordistribution. |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

| (3) | Internal      Controls and Regulatory Compliance - The company's system of internal      controls for detecting accounting and reporting financial errors, fraud      and defalcations, legal violations, and noncompliance with the corporate      code of conduct. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Internal      Audit Responsibilities - The annual audit plan and the process used to      develop the plan. Status of activities, significant findings,      recommendations, and management'sresponse. |
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| (5) | Regulatory      Examinations - SEC inquiries and the results of examinations by other      regulatory authorities in terms of important findings, recommendations,      and management's response. |
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| (6) | External      Audit Responsibilities - Auditor independence and the overall scope and      focus of the annual/interim audit, including the scope and level of      involvement with unaudited quarterly or other interim-period      information. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Financial      Reporting and Controls - Key financial statement issues and risks, their      impact or potential effect on reported financial information, the      processes used by management to address such matters, related auditor      views, and the basis for audit conclusions. Important conclusions on      interim and/or year-end audit work in advance of the public release of      financials. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Auditor      Recommendations - Important internal and external auditor recommendations      on financial reporting, controls, other matters, and management's      response. The views of management and auditors on the overall quality of      annual and interim financialreporting. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1) | The      code of ethical conduct. |
|-----|-----------------------------------|

| (2) | Changes      in important accounting principles and the application thereof in both      interim in and annual financialreports. |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| (3) | Significant      conflicts of interest and related-party  transactions. |
|-----|-------------------------------------------------------------------------|

| (4) | External      auditor performance and changes in external audit firm (subject to      ratification by the full board). |
|-----|------------------------------------------------------------------------------------------------------------------------|

| (5) | Internal      auditor performance and changes in internal audit leadership and/or key      financial management. |
|-----|------------------------------------------------------------------------------------------------------------------|

| (6) | Procedures      for whistle blowers. |
|-----|--------------------------------------|

| (7) | Pre-approve      allowable services to be provided by the  auditor. |
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| (8) | Retention      of complaints. |
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