----

| 1.   | Purposes. |
|----------------|-----------|

| 2.   | Definitions. |
|----------------|--------------|

| (a)   | “Affiliate”      means any entity other than the Company and its Subsidiaries that is      designated by the Board or the Committee as a participating employer under      the Plan; provided, however, that the Company directly or indirectly owns      at least 20% of the combined voting power of all classes of stock of such      entity or at least 20% of the ownership interests in such      entity. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | “Award”      means any Option, SAR, Restricted Share, Restricted Share Unit,      Performance Share, Performance Unit, Performance Cash Award, Dividend      Equivalent, or Other Share-Based Award granted to an Eligible Person under      the Plan. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | “Award      Agreement” means any written agreement, contract, or other instrument or      document evidencing an Award. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | “Beneficiary”      means the person, persons, trust or trusts which have been designated by      an Eligible Person in his or her most recent written beneficiary      designation filed with the Company to receive the benefits specified under      this Plan upon the death of the Eligible Person, or, if there is no      designated Beneficiary or surviving designated Beneficiary, then the      person, persons, trust or trusts entitled by will or the laws of descent      and distribution to receive suchbenefits. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | “Board”      means the Board of Directors of theCompany. |
|-----------------|----------------------------------------------------------------------|

| (f)   | “Code”      means the Internal Revenue Code of 1986, as amended from time to time.      References to any provision of the Code shall be deemed to include      successor provisions thereto and regulations  thereunder. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | “Committee”      means the Compensation Committee of the Board or a subcommittee thereof,      or such other Board committee (or if the Board so designates, the entire      Board) as may be designated by the Board to administer the Plan; provided,      however, that, unless otherwise determined by the Board, the Committee      shall consist of two or more directors of the Company, each of whom is a      “non-employee director” within the meaning of Rule 16b-3 under the      Exchange Act, to the extent applicable, and each of whom is an “outside      director” within the meaning of Section 162(m) of the Code, to the      extent applicable; provided, further, that the mere fact that the      Committee shall fail to qualify under either of the foregoing requirements      shall not invalidate any Award made by the Committee which Award is      otherwise validly made under thePlan. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | “Company”      means Vail Resorts, Inc., a corporation organized under the laws of      Delaware, or any successorcorporation. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | “Director” means a member of the Board who is not      an employee of the Company, a Subsidiary or an    Affiliate. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|

| (j)   | “Dividend      Equivalent” means a right, granted under Section 5(g), to receive      cash, Shares, or other property equal in value to dividends paid with      respect to a specified number of Shares. Dividend Equivalents may be      awarded on a free-standing basis or in connection with another Award, and      may be paid currently or on a deferredbasis. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k)   | “Effective      Date” means November 6, 2006, the date the amendment and restatement      of the Plan is approved by theBoard. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (l)   | “Eligible      Person” means (i) an employee or consultant of the Company, a      Subsidiary or an Affiliate, including any director who is an employee, or      (ii) a Director. Notwithstanding any provisions of this Plan to the      contrary, an Award may be granted to an employee or consultant, in      connection with his or her hiring or retention prior to the date the      employee or consultant first performs services for the Company, a      Subsidiary or an Affiliate; provided, however, that any such Award shall      not become vested prior to the date the employee or consultant first      performs such services. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (m)   | “Exchange      Act” means the Securities Exchange Act of 1934, as amended from time to      time. References to any provision of the Exchange Act shall be deemed to      include successor provisions thereto and regulations      thereunder. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (n)   | “Fair      Market Value” means, with respect to Shares or other property, the fair      market value of such Shares or other property determined by such methods      or procedures as shall be established from time to time by the Committee.      If the Shares are listed on any established stock exchange or a national      market system, unless otherwise determined by the Committee in good faith,      the Fair Market Value of Shares shall mean the closing price per Share on      the date of grant or such other determination date (or, if the Shares were      not traded on that day, the next preceding day that the Shares were      traded) on the principal exchange or market system on which the Shares are      traded (if there is more than one such exchange or market the Committee      shall determine the appropriate exchange or market), as such prices are      officially quoted on such exchange ormarket. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (o)   | “ISO”      means any option intended to be and designated as an incentive stock      option within the meaning of Section 422 of the  Code. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (p)   | “NQSO”      means any Option that is not anISO. |
|-----------------|-------------------------------------------------------------|

| (q)   | “Option”      means a right granted under Section 5(b), to purchase      Shares. |
|-----------------|---------------------------------------------------------------------------------------------------|

| (r)   | “Other      Share-Based Award” means a right, granted under Section 5(h), that      relates to or is valued by reference toShares. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (s)   | “Participant”      means an Eligible Person who has been granted an Award under the      Plan. |
|-----------------|------------------------------------------------------------------------------------------------------------|

| (t)   | “Performance      Cash Award” means a performance cash award granted under      Section 5(f). |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| (u)   | “Performance      Share” means a performance share granted under      Section 5(f). |
|-----------------|------------------------------------------------------------------------------------------------------|

| (v)   | “Performance      Unit” means a performance unit granted under      Section 5(f). |
|-----------------|----------------------------------------------------------------------------------------------------|

| (w)   | “Plan”      means this Amended and Restated 2002 Long Term Incentive and Share Award      Plan. |
|-----------------|-------------------------------------------------------------------------------------------------------------|

| (x)   | “Restricted      Shares” means an Award of Shares under Section 5(d) that may be      subject to certain restrictions and to a risk of    forfeiture. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (y)   | “Restricted      Share Unit” means a right, granted under Section 5(e), to receive      Shares or cash at the end of a specified deferral  period. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (z)   | “Rule 16b-3” means Rule 16b-3, as from      time to time in effect and applicable to the Plan and Participants,      promulgated by the Securities and Exchange Commission under      Section 16 of the ExchangeAct. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (aa)   | “SAR”      or “Share Appreciation Right” means the right, granted under      Section 5(c), to be paid an amount measured by the difference between      the exercise price of the right and the Fair Market Value of Shares on the      date of exercise of the right, with payment to be made in cash, Shares, or      property as specified in the Award or determined by the      Committee. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (bb)   | “Shares”      means common stock, $.01 par value per share, of the    Company. |
|------------------|--------------------------------------------------------------------------------------------|

| (cc)   | “Subsidiary”      means any corporation (other than the Company) in an unbroken chain of      corporations beginning with the Company if each of the corporations (other      than the last corporation in the unbroken chain) owns shares possessing      50% or more of the total combined voting power of all classes of stock in      one of the other corporations in thechain. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Administration. |
|----------------|-----------------|

| (a)   | Authority of the      Committee.    The Plan shall be administered by      the Committee, and the Committee shall have full and final authority to      take the following actions, in each case subject to and consistent with      the provisions of the Plan: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | to      select Eligible Persons to whom Awards may be  granted; |
|-----------------|-----------------------------------------------------------------|

| (ii)   | to      designate Affiliates; |
|------------------|-------------------------------|

| (iii)   | to      determine the type or types of Awards to be granted to each Eligible      Person; |
|-------------------|-------------------------------------------------------------------------------------------|

| (iv)   | to      determine the type and number of Awards to be granted, the number of      Shares to which an Award may relate, the terms and conditions of any Award      granted under the Plan (including, but not limited to, any exercise price,      grant price, or purchase price, and any bases for adjusting such exercise,      grant or purchase price, any restriction or condition, any schedule for      lapse of restrictions or conditions relating to transferability or      forfeiture, exercisability, or settlement of an Award, and waiver or      accelerations thereof, and waivers of performance conditions relating to      an Award, based in each case on such considerations as the Committee shall      determine), and all other matters to be determined in connection with an      Award; |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | to      determine whether, to what extent, and under what circumstances an Award      may be settled, or the exercise price of an Award may be paid, in cash,      Shares, other Awards, or other property, or an Award may be canceled,      forfeited, exchanged, orsurrendered; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi)   | to      determine whether, to what extent, and under what circumstances cash,      Shares, other Awards, or other property payable with respect to an Award      will be deferred either automatically, at the election of the Committee,      or at the election of the EligiblePerson; |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vii)   | to      prescribe the form of each Award Agreement, which need not be identical      for each Eligible Person; |
|-------------------|----------------------------------------------------------------------------------------------------------------|

| (viii)   | to      adopt, amend, suspend, waive, and rescind such rules and regulations and      appoint such agents as the Committee may deem necessary or advisable to      administer the Plan; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ix)   | to      correct any defect or supply any omission or reconcile any inconsistency      in the Plan and to construe and interpret the Plan and any Award, rules      and regulations, Award Agreement, or other instrument      hereunder; |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (x)   | to      accelerate the exercisability or vesting of all or any portion of any      Award or to extend the period during which an Award is exercisable;      and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (xi)   | to      make all other decisions and determinations as may be required under the      terms of the Plan or as the Committee may deem necessary or advisable for      the administration of the Plan. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Manner of Exercise of      Committee Authority.    The Committee shall      have sole discretion in exercising its authority under the Plan. Any      action of the Committee with respect to the Plan shall be final,      conclusive, and binding on all persons, including the Company,      Subsidiaries, Affiliates, Eligible Persons, any person claiming any rights      under the Plan from or through any Eligible Person, and shareholders. The      express grant of any specific power to the Committee, and the taking of      any action by the Committee, shall not be construed as limiting any power      or authority of the Committee. The Committee may delegate to other members      of the Board or officers or managers of the Company or any Subsidiary or      Affiliate the authority, subject to such terms as the Committee shall      determine, to perform administrative functions and, with respect to Awards      granted to persons not subject to Section 16 of the Exchange Act, to      perform such other functions as the Committee may determine, to the extent      permitted under Rule 16b-3 (if applicable) and applicable      law. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Limitation of      Liability.    Each member of the Committee      shall be entitled to, in good faith, rely or act upon any report or other      information furnished to him or her by any officer or other employee of      the Company or any Subsidiary or Affiliate, the Company’s independent      certified public accountants, or other professional retained by the      Company to assist in the administration of the Plan. No member of the      Committee, and no officer or employee of the Company acting on behalf of      the Committee, shall be personally liable for any action, determination,      or interpretation taken or made in good faith with respect to the Plan,      and all members of the Committee and any officer or employee of the      Company acting on their behalf shall, to the extent permitted by law, be      fully indemnified and protected by the Company with respect to any such      action, determination, orinterpretation. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Limitation on Committee’s      Discretion.    Anything in this Plan to the      contrary notwithstanding, in the case of any Award which is intended to      qualify as “performance-based compensation” within the meaning of      Section 162(m)(4)(C) of the Code, if the Award Agreement so provides,      the Committee shall have no discretion to increase the amount of      compensation payable under the Award to the extent such an increase would      cause the Award to lose its qualification as such performance-based      compensation. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | No Option or SAR Repricing      Without Shareholder Approval.    Except as      provided in the first sentence of Section 4(d) hereof relating to      certain antidilution adjustments, unless the approval of shareholders of      the Company is obtained, Options and SARs issued under the Plan shall not      be amended to lower their exercise price and Options and SARs issued under      the Plan will not be exchanged for other Options or SARs with lower      exercise prices. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Shares      Subject to the Plan. |
|----------------|----------------------------------|

| (a)   | Subject      to adjustment as provided in Section 4(d) hereof, the total number of      Shares reserved for issuance in connection with Awards under the Plan      shall be 7,500,000; provided, however, that such number shall be increased      by (i) the number of Shares available for issuance under the      Company’s 1999 Long Term Incentive and Share Award Plan as of the      Effective Date and (ii) the number of Shares, if any, that are      subject to awards issued under the Company’s 1999 Long Term Incentive and      Share Award Plan that are forfeited, canceled, terminated or surrendered      on or after the Effective Date. All Shares issuable under the Plan may be      issued as ISOs. Shares issued or to be issued under the Plan shall be      authorized but unissued shares or, to the extent permitted by applicable      law, issued shares that have been reacquired by the Company. No Award may      be granted if the number of Shares to which such Award relates, when added      to the number of Shares previously issued under the Plan, exceeds the      number of Shares reserved under the preceding      sentence. If any Awards are forfeited, canceled, terminated, exchanged or      surrendered or such Award is settled in cash or otherwise terminates      without a distribution of Shares to the Participant, any Shares counted      against the number of Shares reserved and available under the Plan with      respect to such Award shall, to the extent of any such forfeiture,      settlement, termination, cancellation, exchange or surrender, again be      available for Awards under the Plan. Upon the exercise of any Award      granted in tandem with any other Awards, such related Awards shall be      canceled to the extent of the number of Shares as to which the Award is      exercised. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | The      Committee shall have the right to substitute or assume Awards in      connection with mergers, reorganizations, separations, or other      transactions to which Code Section 424(a) applies. The number of      Shares reserved pursuant to Section 4(a) may be increased by the      corresponding number of Awards assumed and, in the case of a substitution,      by the net increase in the number of Shares subject to Awards before and      after the substitution. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Subject      to adjustment as provided in Section 4(d) hereof, the maximum number      of Shares (i) with respect to which Options or SARs may be granted      during a calendar year to any Eligible Person under this Plan shall be      1,000,000 Shares, and (ii) with respect to Performance Shares,      Performance Units, Restricted Shares or Restricted Share Units intended to      qualify as performance-based compensation within the meaning of      Section 162(m)(4)(C) of the Code shall be the equivalent of 200,000      Shares during a calendar year to any Eligible Person under this      Plan. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | In      the event that the Committee shall determine that any dividend in Shares,      recapitalization, Share split, reverse split, reorganization, merger,      consolidation, spin-off, combination, repurchase, or share exchange, or      other similar corporate transaction or event, affects the Shares such that      an adjustment is appropriate in order to prevent dilution or enlargement      of the rights of Eligible Persons under the Plan, then the Committee shall      make such equitable changes or adjustments as it deems appropriate and, in      such manner as it may deem equitable, adjust any or all of (i) the      number and kind of shares which may thereafter be issued under the Plan,      (ii) the number and kind of shares, other securities or other      consideration issued or issuable in respect of outstanding Awards, and      (iii) the exercise price, grant price, or purchase price relating to      any Award; provided, however, in each case that, with respect to ISOs,      such adjustment shall be made in accordance with Section 424(a) of      the Code, unless the Committee determines otherwise. In addition, the      Committee is authorized to make adjustments in the terms and conditions      of, and the criteria and performance objectives included in, Awards in      recognition of unusual or non-recurring events (including, without      limitation, events described in the preceding sentence) affecting the      Company or any Subsidiary or Affiliate or the financial statements of the      Company or any Subsidiary or Affiliate, or in response to changes in      applicable laws, regulations, or accounting principles; provided, however,      that, if an Award Agreement specifically so provides, the Committee shall      not have discretion to increase the amount of compensation payable under      the Award to the extent such an increase would cause the Award to lose its      qualification as performance-based compensation for purposes of      Section 162(m)(4)(C) of the Code and the regulations      thereunder. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Any      Shares distributed pursuant to an Award may consist, in whole or in part,      of authorized and unissued Shares or treasury Shares including Shares      acquired by purchase in the open market or in private      transactions. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Specific      Terms of Awards. |
|----------------|--------------------------------|

| (a)   | General.    Awards      may be granted on the terms and conditions set forth in this      Section 5. In addition, the Committee may impose on any Award or the      exercise thereof, at the date of grant or      thereafter (subject to Section 7(d)), such additional terms and      conditions, not inconsistent with the provisions of the Plan, as the      Committee shall determine, including terms regarding forfeiture of Awards      or continued exercisability of Awards in the event of termination of      service by the Eligible Person. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Options.    The      Committee is authorized to grant Options, which may be NQSOs or ISOs, to      Eligible Persons on the following terms and  conditions: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | Exercise      Price.    The exercise price per Share      purchasable under an Option shall be determined by the Committee;      provided, however, that the exercise price per Share of an Option shall      not be less than the Fair Market Value of a Share on the date of grant of      the Option. The Committee may, without limitation, set an exercise price      that is based upon achievement of performance criteria if deemed      appropriate by the Committee. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | Option      Term.    The term of each Option shall be      determined by the Committee; provided, however, that such term shall not      be longer than ten years from the date of grant of the    Option. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | Time and Method of      Exercise.    The Committee shall determine at      the date of grant or thereafter the time or times at which an Option may      be exercised in whole or in part (including, without limitation, upon      achievement of performance criteria if deemed appropriate by the      Committee), the methods by which such exercise price may be paid or deemed      to be paid (including, without limitation, broker-assisted exercise      arrangements), the form of such payment (including, without limitation,      cash, Shares, notes or other property), and the methods by which Shares      will be delivered or deemed to be delivered to Eligible Persons; provided,      however, that in no event may any portion of the exercise price be paid      with Shares acquired either under an Award granted pursuant to this Plan,      upon exercise of a stock option granted under another Company plan or as a      stock bonus or other stock award granted under another Company plan      unless, in any such case, the Shares were acquired and vested more than      six months in advance of the date ofexercise. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | ISOs.    The      terms of any ISO granted under the Plan shall comply in all respects with      the provisions of Section 422 of the Code, including but not limited      to the requirement that the ISO shall be granted within ten years from the      earlier of the date of adoption or shareholder approval of the Plan. ISOs      may only be granted to employees of the Company or a      Subsidiary. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | SARs.    The      Committee is authorized to grant SARs (Share Appreciation Rights) to      Eligible Persons on the following terms and  conditions: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | Right to      Payment.    A SAR shall confer on the Eligible      Person to whom it is granted a right to receive with respect to each Share      subject thereto, upon exercise thereof, the excess of (1) the Fair      Market Value of one Share on the date of exercise (or, if the Committee      shall so determine in the case of any such right, the Fair Market Value of      one Share at any time during a specified period before or after the date      of exercise) over (2) the exercise price of the SAR as determined by      the Committee as of the date of grant of the SAR (which shall not be less      than the Fair Market Value per Share on the date of grant of the SAR and,      in the case of a SAR granted in tandem with an Option, shall be equal to      the exercise price of the underlyingOption). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | Other      Terms.    The Committee shall determine, at the      time of grant or thereafter, the time or times at which a SAR may be      exercised in whole or in part (which shall not be more than ten years      after the date of grant of the SAR), the method of exercise, method of      settlement, form of consideration payable in settlement, method by which      Shares will be delivered or deemed to be delivered to Eligible Persons,      whether or not a SAR shall be in tandem with any      other Award, and any other terms and conditions of any SAR. Unless the      Committee determines otherwise, a SAR (1) granted in tandem with an      NQSO may be granted at the time of grant of the related NQSO or at any      time thereafter and (2) granted in tandem with an ISO may only be      granted at the time of grant of the related  ISO. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Restricted      Shares.    The Committee is authorized to grant      Restricted Shares to Eligible Persons on the following terms and      conditions: |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | Issuance and      Restrictions.    Restricted Shares shall be      subject to such restrictions on transferability and other restrictions, if      any, as the Committee may impose at the date of grant or thereafter, which      restrictions may lapse separately or in combination at such times, under      such circumstances (including, without limitation, upon achievement of      performance criteria if deemed appropriate by the Committee), in such      installments, or otherwise, as the Committee may determine. Except to the      extent restricted under the Award Agreement relating to the Restricted      Shares, an Eligible Person granted Restricted Shares shall have all of the      rights of a shareholder including, without limitation, the right to vote      Restricted Shares and the right to receive dividends thereon. If the lapse      of restrictions is conditioned on the achievement of performance criteria,      the Committee shall select the criterion or criteria from the list of      criteria set forth in Section 5(f)(i). The Committee must certify in      writing prior to the lapse of restrictions conditioned on achievement of      performance criteria that such performance criteria were in fact      satisfied. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | Forfeiture.    Except      as otherwise determined by the Committee, at the date of grant or      thereafter, upon termination of service during the applicable restriction      period, Restricted Shares and any accrued but unpaid dividends or Dividend      Equivalents that are at that time subject to restrictions shall be      forfeited; provided, however, that the Committee may provide, by rule or      regulation or in any Award Agreement, or may determine in any individual      case, that restrictions or forfeiture conditions relating to Restricted      Shares will be waived in whole or in part in the event of terminations      resulting from specified causes, and the Committee may in other cases      waive in whole or in part the forfeiture of Restricted    Shares. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | Certificates for      Shares.    Restricted Shares granted under the      Plan may be evidenced in such manner as the Committee shall determine. If      certificates representing Restricted Shares are registered in the name of      the Eligible Person, such certificates shall bear an appropriate legend      referring to the terms, conditions, and restrictions applicable to such      Restricted Shares, and the Company shall retain physical possession of the      certificate. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | Dividends.    Dividends      paid on Restricted Shares shall be either paid at the dividend payment      date, or deferred for payment to such date as determined by the Committee,      in cash or in unrestricted Shares having a Fair Market Value equal to the      amount of such dividends. Shares distributed in connection with a Share      split or dividend in Shares, and other property distributed as a dividend,      shall be subject to restrictions and a risk of forfeiture to the same      extent as the Restricted Shares with respect to which such Shares or other      property has been distributed. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Restricted Share      Units.    The Committee is authorized to grant      Restricted Share Units to Eligible Persons, subject to the following terms      and conditions: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | Award and      Restrictions.    Delivery of Shares or cash, as      the case may be, will occur upon expiration of the deferral period      specified for Restricted Share Units by the Committee (or, if permitted by      the Committee, as elected by the Eligible Person). In addition, Restricted      Share Units shall be subject to such restrictions as the Committee may      impose, if any (including, without limitation,      the achievement of performance criteria if deemed appropriate by the      Committee), at the date of grant or thereafter, which restrictions may      lapse at the expiration of the deferral period or at earlier or later      specified times, separately or in combination, in installments or      otherwise, as the Committee may determine. If the lapse of restrictions is      conditioned on the achievement of performance criteria, the Committee      shall select the criterion or criteria from the list of criteria set forth      in Section 5(f)(i). The Committee must certify in writing prior to      the lapse of restrictions conditioned on the achievement of performance      criteria that such performance criteria were in fact      satisfied. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | Forfeiture.    Except      as otherwise determined by the Committee at date of grant or thereafter,      upon termination of service (as determined under criteria established by      the Committee) during the applicable deferral period or portion thereof to      which forfeiture conditions apply (as provided in the Award Agreement      evidencing the Restricted Share Units), or upon failure to satisfy any      other conditions precedent to the delivery of Shares or cash to which such      Restricted Share Units relate, all Restricted Share Units that are at that      time subject to deferral or restriction shall be forfeited; provided,      however, that the Committee may provide, by rule or regulation or in any      Award Agreement, or may determine in any individual case, that      restrictions or forfeiture conditions relating to Restricted Share Units      will be waived in whole or in part in the event of termination resulting      from specified causes, and the Committee may in other cases waive in whole      or in part the forfeiture of Restricted Share  Units. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | Performance Shares,      Performance Units and Performance Cash      Awards.    The Committee is authorized to grant      Performance Shares, Performance Units, and Performance Cash Awards to      Eligible Persons on the following terms and  conditions: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | Performance      Period.    The Committee shall determine a      performance period (the “Performance Period”) of one or more years and      shall determine the performance objectives for grants of Performance      Shares, Performance Units and Performance Cash Awards. Performance      objectives may vary from Eligible Person to Eligible Person and shall be      based upon one or more of the following performance criteria as the      Committee may deem appropriate: appreciation in value of the Shares, total      shareholder return, earnings per share, operating income, net income,      pretax earnings, pretax earnings before interest, depreciation and      amortization, pro forma net income, return on equity, return on designated      assets, return on capital, economic value added, earnings, revenues,      expenses, operating profit margin, operating cash flow, net profit margin,      free cash flow, cash flow return on investment, and operating margin. The      performance objectives may be determined by reference to the performance      of the Company, or of a Subsidiary or Affiliate, or of a division or unit      of any of the foregoing. Performance Periods may overlap and Eligible      Persons may participate simultaneously with respect to Performance Shares,      Performance Units and Performance Cash Awards for which different      Performance Periods are prescribed. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | Award      Value.    At the beginning of a Performance      Period, the Committee shall determine for each Eligible Person or group of      Eligible Persons with respect to that Performance Period (A) the      range of number of Shares, if any, in the case of Performance Shares,      (B) the range of dollar values, if any, in the case of Performance      Units, or (C) the range of cash awards in the case of Performance      Cash Awards which may be fixed or may vary in accordance with such      performance or other criteria specified by the Committee, which shall be      paid to an Eligible Person as an Award if the relevant measure of Company      performance for the Performance Period is met. The Committee must certify      in writing that the applicable performance      criteria were satisfied prior to payment under any Performance Shares,      Performance Units or Performance Cash  Awards. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | Significant      Events.    If during the course of a      Performance Period there shall occur significant events as determined by      the Committee which the Committee expects to have a substantial effect on      a performance objective during such period, the Committee may revise such      objective; provided, however, that, if an Award Agreement so provides, the      Committee shall not have any discretion to increase the amount of      compensation payable under the Award to the extent such an increase would      cause the Award to lose its qualification as performance-based      compensation for purposes of Section 162(m)(4)(C) of the Code and the      regulations thereunder. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | Forfeiture.    Except      as otherwise determined by the Committee, at the date of grant or      thereafter, upon termination of service during the applicable Performance      Period, Performance Shares, Performance Units and Performance Cash Awards      for which the Performance Period was prescribed shall be forfeited;      provided, however, that the Committee may provide, by rule or regulation      or in any Award Agreement, or may determine in an individual case, that      restrictions or forfeiture conditions relating to Performance Shares,      Performance Units and Performance Cash Awards will be waived in whole or      in part in the event of terminations resulting from specified causes, and      the Committee may in other cases waive in whole or in part the forfeiture      of Performance Shares, Performance Units and Performance Cash      Awards. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | Payment.    Each      Performance Share or Performance Unit may be paid in whole Shares, or      cash, or a combination of Shares and cash either as a lump sum payment or      in installments, all as the Committee shall determine, at the time of      grant of the Performance Share or Performance Unit or otherwise,      commencing as soon as practicable after the end of the relevant      Performance Period. Each Performance Cash Award shall be paid in cash,      commencing as soon as practicable after the end of the relevant      Performance Period. The Committee must certify in writing prior to the      payment of any Performance Share, Performance Unit or Performance Cash      Awards that the performance objectives and any other material terms were      in fact satisfied. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | Dividend      Equivalents.    The Committee is authorized to      grant Dividend Equivalents to Eligible Persons. The Committee may provide,      at the date of grant or thereafter, that Dividend Equivalents shall be      paid or distributed when accrued or shall be deemed to have been      reinvested in additional Shares, or other investment vehicles as the      Committee may specify; provided, however, that Dividend Equivalents (other      than freestanding Dividend Equivalents) shall be subject to all conditions      and restrictions of the underlying Awards to which they      relate. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | Other Share-Based      Awards.    The Committee is authorized, subject      to limitations under applicable law, to grant to Eligible Persons such      other Awards that may be denominated or payable in, valued in whole or in      part by reference to, or otherwise based on, or related to, Shares, as      deemed by the Committee to be consistent with the purposes of the Plan,      including, without limitation, unrestricted shares awarded purely as a      “bonus” and not subject to any restrictions or conditions, other rights      convertible or exchangeable into Shares, purchase rights for Shares,      Awards with value and payment contingent upon performance of the Company      or any other factors designated by the Committee, and Awards valued by      reference to the performance of specified Subsidiaries or Affiliates. The      Committee shall determine the terms and conditions of such Awards at date      of grant or thereafter. Shares delivered pursuant to an Award in the      nature of a purchase right granted under this Section 5(h) shall be      purchased for such consideration, paid for at such times, by such methods,      and in such forms, including, without      limitation, cash, Shares, notes or other property, as the Committee shall      determine. Cash awards, as an element of or supplement to any other Award      under the Plan, shall also be authorized pursuant to this      Section 5(h). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | Certain      Provisions Applicable to Awards. |
|----------------|-----------------------------------------------|

| (a)   | Stand-Alone, Additional,      Tandem and Substitute Awards.    Awards granted      under the Plan may, in the discretion of the Committee, be granted to      Eligible Persons either alone or in addition to, in tandem with, or in      exchange or substitution for, any other Award granted under the Plan or      any award granted under any other plan or agreement of the Company, any      Subsidiary or Affiliate, or any business entity to be acquired by the      Company or a Subsidiary or Affiliate, or any other right of an Eligible      Person to receive payment from the Company or any Subsidiary or Affiliate.      Awards may be granted in addition to or in tandem with such other Awards      or awards, and may be granted either as of the same time as or a different      time from the grant of such other Awards or awards. Subject to the      provisions of Section 3(e) hereof prohibiting Option and SAR      repricing without shareholder approval, the per Share exercise price of      any Option, grant price of any SAR, or purchase price of any other Award      conferring a right to purchase Shares which is granted, in connection with      the substitution of awards granted under any other plan or agreement of      the Company or any Subsidiary or Affiliate or any business entity to be      acquired by the Company or any Subsidiary or Affiliate, shall be      determined by the Committee, in itsdiscretion. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Terms of      Awards.    The term of each Award granted to an      Eligible Person shall be for such period as may be determined by the      Committee; provided, however, that in no event shall the term of any      Option or a SAR granted in tandem therewith exceed a period of ten years      from the date of its grant (or such shorter period as may be applicable      under Section 422 of theCode). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Form of Payment Under      Awards.    Subject to the terms of the Plan and      any applicable Award Agreement, payments to be made by the Company or a      Subsidiary or Affiliate upon the grant, maturation, or exercise of an      Award may be made in such forms as the Committee shall determine at the      date of grant or thereafter, including, without limitation, cash, Shares,      or other property, and may be made in a single payment or transfer, in      installments, or on a deferred basis. The Committee may make rules      relating to installment or deferred payments with respect to Awards,      including the rate of interest to be credited with respect to such      payments, and the Committee may require deferral of payment under an Award      if, in the sole judgment of the Committee, it may be necessary in order to      avoid nondeductibility of the payment under Section 162(m) of the      Code. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Nontransferability.    Unless      otherwise set forth by the Committee in an Award Agreement, Awards (except      for vested shares) shall not be transferable by an Eligible Person except      by will or the laws of descent and distribution (except pursuant to a      Beneficiary designation) and shall be exercisable during the lifetime of      an Eligible Person only by such Eligible Person or his guardian or legal      representative. An Eligible Person’s rights under the Plan may not be      pledged, mortgaged, hypothecated, or otherwise encumbered, and shall not      be subject to claims of the Eligible Person’s  creditors. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Noncompetition.    The      Committee may, by way of the Award Agreements or otherwise, establish such      other terms, conditions, restrictions and/or limitations, if any, of any      Award, provided they are not inconsistent with the Plan, including,      without limitation, the requirement that the Participant not engage in      competition with the Company. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | GeneralProvisions. |
|----------------|--------------------|

| (a)   | Compliance with Legal and      Trading Requirements.    The Plan, the granting      and exercising of Awards thereunder, and the other obligations of the      Company under the Plan and any Award Agreement, shall be subject to all      applicable federal and state laws, rules and regulations, and to such      approvals by any regulatory or governmental agency as may be required. The      Company, in its discretion, may postpone the issuance or delivery of      Shares under any Award until completion of such stock exchange or market      system listing or registration or qualification of such Shares or other      required action under any state or federal law, rule or regulation as the      Company may consider appropriate, and may require any Participant to make      such representations and furnish such information as it may consider      appropriate in connection with the issuance or delivery of Shares in      compliance with applicable laws, rules and regulations. No provisions of      the Plan shall be interpreted or construed to obligate the Company to      register any Shares under federal or state law. The Shares issued under      the Plan may be subject to such other restrictions on transfer as      determined by the Committee. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | No Right to Continued      Employment or Service.    Neither the Plan nor      any action taken thereunder shall be construed as giving any employee,      consultant or director the right to be retained in the employ or service      of the Company or any of its Subsidiaries or Affiliates, nor shall it      interfere in any way with the right of the Company or any of its      Subsidiaries or Affiliates to terminate any employee’s, consultant’s or      director’s employment or service at anytime. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Taxes.    The      Company or any Subsidiary or Affiliate is authorized to withhold from any      Award granted, any payment relating to an Award under the Plan, including      from a distribution of Shares, or any payroll or other payment to an      Eligible Person, amounts of withholding and other taxes due in connection      with any transaction involving an Award, and to take such other action as      the Committee may deem advisable to enable the Company and Eligible      Persons to satisfy obligations for the payment of withholding taxes and      other tax obligations relating to any Award. This authority shall include      authority to withhold or receive Shares or other property and to make cash      payments in respect thereof in satisfaction of an Eligible Person’s tax      obligations. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Changes to the Plan and      Awards.    The Board may amend, alter, suspend,      discontinue, or terminate the Plan or the Committee’s authority to grant      Awards under the Plan without the consent of shareholders of the Company      or Participants, except that any such amendment or alteration as it      applies to ISOs shall be subject to the approval of the Company’s      shareholders to the extent such shareholder approval is required under      Section 422 of the Code; provided, however, that, without the consent      of an affected Participant, no amendment, alteration, suspension,      discontinuation, or termination of the Plan may materially and adversely      affect the rights of such Participant under any Award theretofore granted      to him or her. The Committee may waive any conditions or rights under,      amend any terms of, or amend, alter, suspend, discontinue or terminate,      any Award theretofore granted, prospectively or retrospectively; provided,      however, that, without the consent of a Participant, no amendment,      alteration, suspension, discontinuation or termination of any Award may      materially and, adversely affect the rights of such Participant under any      Award theretofore granted to him orher. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | No Rights to Awards; No      Shareholder Rights.    No Eligible Person or      employee shall have any claim to be granted any Award under the Plan, and      there is no obligation for uniformity of treatment of Eligible Persons and      employees. No Award shall confer on any Eligible Person any of the rights      of a shareholder of the Company unless and until Shares are duly issued or      transferred to the Eligible Person in accordance with the terms of the      Award. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | Unfunded Status of      Awards.    The Plan is intended to constitute      an “unfunded” plan for incentive compensation. With respect to any      payments not yet made to a Participant pursuant to an Award, nothing      contained in the Plan or any Award shall give any such Participant any      rights that are greater than those of a general creditor of the Company;      provided, however, that the Committee may authorize the creation of trusts      or make other arrangements to meet the Company’s obligations under the      Plan to deliver cash, Shares, other Awards, or other property pursuant to      any Award, which trusts or other arrangements shall be consistent with the      “unfunded” status of the Plan unless the Committee otherwise determines      with the consent of each affectedParticipant. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | Nonexclusivity of the      Plan.    Neither the adoption of the Plan by      the Board nor its submission to the shareholders of the Company for      approval shall be construed as creating any limitations on the power of      the Board to adopt such other incentive arrangements as it may deem      desirable, including, without limitation, the granting of options and      other awards otherwise than under the Plan, and such arrangements may be      either applicable generally or only in specific  cases. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | Not Compensation for Benefit      Plans.    No Award payable under this Plan      shall be deemed salary or compensation for the purpose of computing      benefits under any benefit plan or other arrangement of the Company for      the benefit of its employees, consultants or directors unless the Company      shall determine otherwise. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | No Fractional      Shares.    No fractional Shares shall be issued      or delivered pursuant to the Plan or any Award. The Committee shall      determine whether cash, other Awards, or other property shall be issued or      paid in lieu of such fractional Shares or whether such fractional Shares      or any rights thereto shall be forfeited or otherwise      eliminated. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j)   | Governing      Law.    The validity, construction, and effect      of the Plan, any rules and regulations relating to the Plan, and any Award      Agreement shall be determined in accordance with the laws of Colorado      without giving effect to principles of conflict of  laws. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k)   | Effective Date; Plan      Termination.    The amendment and restatement      of the Plan shall become effective as of November 6, 2006, subject to      approval by the shareholders of the Company. The Plan shall terminate as      to future awards on the date which is ten (10) years after the      Effective Date. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l)   | Titles and      Headings.    The titles and headings of the      sections in the Plan are for convenience of reference only. In the event      of any conflict, the text of the Plan, rather than such titles or      headings, shall control. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|