Document:

OSHKOSH CORPORATION 
(a Wisconsin
corporation) 

2004 Incentive Stock
and Awards Plan 
             Stock
Appreciation Rights
Award              

[Participant]: 

[Participant Address]: 

Oshkosh Corporation (the
“Company”) and you hereby agree as follows: 

You have been granted Stock
Appreciation Rights relating to shares of Common Stock of the Company under the Oshkosh
Corporation 2004 Incentive Stock and Awards Plan (the “Plan”) with the following
terms and conditions: 

Grant Date: 

Number of Shares: 

Grant Price per Share: 

Expiration Date:  Three years,
unless terminated earlier as described in the Plan. 

Vesting Schedule:  Vests in full on
the third anniversary of Grant Date 

Your Stock Appreciation Rights will
become fully vested if you terminate employment as a result of death, Disability or
Retirement. You will forfeit Stock Appreciation Rights when you terminate employment for
any other reason. 

Settlement: As soon as
practicable following the third anniversary of the Grant Date or, if earlier, the date on
which your Stock Appreciation Rights become fully vested upon termination of employment as
a result of death, Disability or Retirement (the “Settlement Date”), the
compensation (if any) payable with respect to the Stock Appreciation Rights that are
vested will be valued and paid in cash in your local currency using the spot rate on the
Settlement Date, less applicable tax withholding. The value of the Stock Appreciation
Rights that are vested will be equal to the product obtained by multiplying (1) the number
of Shares underlying the Stock Appreciation Rights that are vested, and (2) the amount by
which the Fair Market Value of a Share on the Settlement Date exceeds the Grant Price Per
Share identified above. If the Fair Market Value of a Share on the Settlement Date is less
than or equal to the Grant Price Per Share identified above, then no amount is payable
with respect to the Stock Appreciation Rights. Following the Settlement Date, the Stock
Appreciation Rights (whether or not resulting in a payment) will be cancelled.  The
Stock Appreciation Rights do not include the right to receive dividends or other
distributions declared and paid on the Shares underlying the Stock Appreciation Rights. 

This Award is granted under and
governed by the terms and conditions of the Plan. Additional provisions regarding your
Stock Appreciation Rights and definitions of capitalized terms used and not defined in
this Award Agreement can be found in the Plan, a copy of which is attached hereto. 

IN WITNESS WHEREOF, the Company has
caused this Award Agreement to be duly executed, and you have executed this Award
Agreement, all as of the day and year first above written. 

	 	
OSHKOSH
CORPORATION

	 	
By:  ___________________________
                                                              
        Name and Title [Typed]

	 	
Accepted:

	 	
By:  ____________________________
                                                              
        Participant Name [Typed]

2OSHKOSH CORPORATION
DEFERRED COMPENSATION PLAN FOR DIRECTORS 
AND EXECUTIVE OFFICERS 

Amended and Restated
Effective January 1, 2005  

TABLE OF CONTENTS 

		Page
	
ARTICLE 1. PURPOSE AND HISTORY	  1
	         Section 1.1. Purpose	  1
	         Section 1.2. History	  1
	         Section 1.3. Plan Status	  1
	         Section 1.4. Special Transition Rule	  1
	
ARTICLE 2. DEFINITIONS AND CONSTRUCTION	  1
	         Section 2.1. Definitions	  1
	         Section 2.2. “Account”	  2
	         Section 2.3. “Act”	  2
	         Section 2.4. “Administrator”	  2
	         Section 2.5. “Affiliate”	  2
	         Section 2.6. “Beneficiary”	  2
	         Section 2.7. “Board”	  2
	         Section 2.8. “Change in Control”	  2
	         Section 2.9. “Code”	  2
	         Section 2.10. “Committee”	  2
	         Section 2.11. “Company”	  3
	         Section 2.12. “Deferral”	  3
	         Section 2.13. “ERISA”	  3
	         Section 2.14. “Exchange Act”	  4
	         Section 2.15. “Fair Market Value”	  4
	         Section 2.16. “Fixed Income Investment Option”	  4
	         Section 2.17. “Investment Account”	  4
	         Section 2.18. “Investment Options”	  4
	         Section 2.19. “Participant”	  4
	         Section 2.20. “Plan Year”	  5
	         Section 2.21. “Predecessor Plan”	  5
	         Section 2.22. “Retainer Fees”	  5
	         Section 2.23. “Separation from Service”	  5
	         Section 2.24. “Share”	  6
	         Section 2.25. “Share Unit Account”	  6
	         Section 2.26. “Share Units”	  6
	         Section 2.27. “Unforeseeable Emergency”	  6
	         Section 2.28. “Valuation Date”	  6
	         Section 2.29. Construction	  6
	         Section 2.30. Severability	  7
	
ARTICLE 3. PARTICIPATION	  7
	         Section 3.1. Effective Date	  7
	         Section 3.2. New Participants	  7
	
ARTICLE 4. DEFERRALS OF COMPENSATION	  7
	         Section 4.1. Salary Deferrals	  7
	         Section 4.2. Retainer Fee Deferrals	  8
	         Section 4.3. Annual Bonus Deferrals	  8

i 

		
	         Section 4.4. Long-Term Incentive Deferrals	  9
	         Section 4.5. Nonemployee Director Long-Term Incentive Deferral	10
	         Section 4.6. Special Election Rules for New Participants	10
	         Section 4.7. Deferral of Dividend Awards	11
	         Section 4.8. Cancellation of Deferral Elections	11
	         Section 4.9. Administration of Deferral Elections	11
	
ARTICLE 5. HYPOTHETICAL INVESTMENT OPTIONS	11
	         Section 5.1. Investment Election	11
	         Section 5.2. Securities Law Restrictions	12
	         Section 5.3. Accounts Are For Record Keeping Purposes Only	12
	
ARTICLE 6. DISTRIBUTION OF ACCOUNTS	12
	         Section 6.1. Election of Form of Distribution	12
	         Section 6.2. Distribution of Cash or Shares	13
	         Section 6.3. Time of Distribution	13
	         Section 6.4. Distribution of Remaining Account Following Participant's Death	14
	         Section 6.5. Distribution in Event of Unforeseeable Emergency	15
	         Section 6.6. Tax Withholding	15
	         Section 6.7. Offset	16
	
ARTICLE 7. RULES WITH RESPECT TO SHARE UNITS	16
	         Section 7.1. Valuation of Share Unit Account	16
	         Section 7.2. Transactions Affecting Common Stock	16
	         Section 7.3. No Shareholder Rights With Respect to Share Units	16
	
ARTICLE 8. SPECIAL RULES APPLICABLE IN THE EVENT OF A CHANGE IN CONTROL OF THE COMPANY	17
	         Section 8.1. Acceleration of Payment of Accounts	17
	         Section 8.2. Definition of a Change in Control	17
	         Section 8.3. Maximum Payment Limitation	17
	         Section 8.4. Cessation of All Deferrals	18
	
ARTICLE 9. GENERAL PROVISIONS	18
	         Section 9.1. Administration	18
	         Section 9.2. Restrictions to Comply with Applicable Law	20
	         Section 9.3. Claims Procedures	20
	         Section 9.4. Participant Rights Unsecured	21
	         Section 9.5. Amendment or Termination of Plan	21
	         Section 9.6. Administrative Expenses	22
	         Section 9.7. Successors and Assigns	22
	         Section 9.8. Governing Law; Limitation on Actions; Dispute Resolution	22
	
APPENDIX 1	25
	
APPENDIX 2	26

ii 

ARTICLE 1.  
PURPOSE
AND HISTORY  

        Section
1.1.    Purpose. Oshkosh Corporation (the “Company”)
established the Deferred Compensation Plan for Directors and Executive Officers (the
“Plan”) effective May 19, 1997, to provide certain eligible executive officers
and nonemployee members of the Board of Directors of the Company and its Affiliates a
means to defer income until separation from service with the Company or death.  

        Section
1.2.    History. The Plan is amended and restated herein,
effective as of January 1, 2005, primarily to conform the Plan to the requirements
of Internal Revenue Code Section 409A, enacted as part of the American Jobs Creation Act
of 2004, and to facilitate certain Stock based Deferrals. The Predecessor Plan, as in
effect on October 3, 2004, is attached to this restated Plan as Appendix 1. The
Predecessor Plan governs all amounts considered by law to be deferred before January 1,
2005, and not subject to Code Section 409A. The Predecessor Plan set forth in Appendix 1
shall not be materially modified, within the meaning of Code Section 409A and the
guidance thereunder, after October 3, 2004.  

        Section
1.3.    Plan Status. The Plan is an unfunded plan
maintained primarily for the purpose of providing deferred compensation for a select
group of management or highly compensated employees within the meaning of Sections
201(2), 301(a)(3), and 401(a)(1) of ERISA and is intended to comply with the provisions
of Code Section 409A, and any regulations issued thereunder. The Plan shall be
interpreted and administered consistent with this intent. The Committee reserves the
right to amend the Plan to the full extent necessary to comply with guidance issued under
Code Section 409A without the consent or mutual agreement of the Participants.  

        Section
1.4.    Special Transition Rule. With respect to deferred
compensation amounts under the Plan that are subject to Code Section 409A, payment method
elections may be made or revised on or before December 31, 2008, with respect to the form
of payment of such amounts. Such election will not be treated as a change in the form and
timing of a payment under Code Section 409A(a)(4) or an acceleration of a payment under
Code Section 409A(a)(3) provided the election is made and filed with the Administrator on
or before December 31, 2008. Any election made pursuant to this Section is applicable
only to amounts that are not otherwise payable in the year in which the election is made.  

ARTICLE 2.

DEFINITIONS AND CONSTRUCTION  

        Section
2.1.    Definitions. Wherever used in the Plan, the
following terms shall have the meanings set forth in Article 2, and where the meaning is
intended, the initial letter of the word is capitalized.  

        Section
2.2.    “Account” means the record keeping
account or accounts maintained to record the interest of each Participant under the Plan.
An Account is established for record keeping purposes only and not to reflect the
physical segregation of assets on the Participant’s behalf, and may consist of such
subaccounts or balances as the Administrator may determine to be necessary or
appropriate.  

1 

        Section
2.3.     “Act” means the Securities Act of 1933,
as interpreted by regulations and rules issued pursuant thereto, all as amended and in
effect from time to time. Any reference to a specific provision of the Act shall be
deemed to include reference to any successor provision thereto.  

        Section
2.4.     “Administrator” means the Executive
Vice President, Corporate Administration, or such Vice President’s delegate.  

        Section
2.5.     “Affiliate” means each entity that is
required to be included in the Company’s controlled group of corporations within the
meaning of Code Section 414(b), or that is under common control with the Company within
the meaning of Code Section 414(c). JLG Industries, Inc. is an Affiliate effective
December 6, 2006.  

        Section
2.6.     “Beneficiary” means the person(s) or
entity(ies) designated by a Participant to be his beneficiary for purposes of this Plan
as provided in Section 6.4.  

        Section
2.7.    “Board” means the Board of Directors of
Oshkosh Corporation. 

        Section
2.8.    “Change in Control” has the meaning
assigned to this term in Section 8.2. 

        Section
2.9.     “Code” means the Internal Revenue Code
of 1986, as interpreted by regulations and rulings issued pursuant thereto, all as
amended and in effect from time to time. Any reference to a specific provision of the
Code shall be deemed to include reference to any successor provision thereto.  

        Section
2.10.     “Committee” means the Human Resources
Committee of the Board, which shall consist of not less than two members of the Board,
each of whom is also a director of the Company and qualifies as a “non-employee
director” for purposes of Rule 16b-3 of the Exchange Act.  

        Section
2.11.    “Company” means Oshkosh Corporation,
and its successors as provided in Section 9.7. 

        Section
2.12.     “Deferral” means the amount credited,
in accordance with a Participant’s election or as required by the Plan, to the
Participant’s Account under the Plan in lieu of the payment in cash thereof, or the
issuance of Shares with respect thereto. Deferrals include the following:  

        (a)              “Salary
Deferral” means a deferral of all or a portion of a           Participant’s
base salary paid by the Company or an Affiliate, before           reduction for deferred
compensation amounts, but exclusive of incentive or bonus           compensation, special
fees or awards, allowances or amounts designated by the           Company as payments
toward or for reimbursement for expenses. Elections to defer           base salary are
required to be made on a calendar year basis.  

2 

        (b)              “Retainer
Fee Deferral” means a deferral of all or a portion of           Retainer Fees by
a nonemployee member of the Board. Elections to defer Retainer           Fees are
required to be made on a calendar year basis.  

        (c)              “Annual
Bonus Deferral” means a deferral of all or a portion of           a Participant’s
award under an annual bonus plan maintained by the Company           or an Affiliate.
Annual bonus awards are determined on a fiscal year basis by           the Company and
are payable after the close of the fiscal year. Annual bonus           awards may be
performance-based awards. Elections to defer annual bonus awards           are made on a
fiscal year basis, including, where applicable, the special           election timing
rules applicable to performance-based awards.  

        (d)              “Long-Term
Incentive Deferral” means a deferral of all or a           portion of an
employee Participant’s cash or Share-based award under a           multi-year
incentive plan maintained by the Company or an Affiliate. Share-based           awards
include, for this purpose, restricted stock, performance shares, and
          performance units. Elections to defer long-term incentive awards are generally
          made on a fiscal year basis.  

        (e)              “Nonemployee
Director Long-Term Incentive Deferral” means a           deferral by a
nonemployee director of such director’s receipt of a           Share-based long-term
incentive award under an equity incentive plan maintained           by the Company.
Share-based long-term incentive awards include, for this           purpose, restricted
stock, performance shares, and performance units. Elections           to defer receipt of
such Share-based awards are generally made pursuant to the           special election
timing rules applicable to the award of certain forfeitable           rights.  

        Section
2.13.     “ERISA” means the Employee Retirement
Income Security Act of 1974, as interpreted by regulations and rulings issued pursuant
thereto, all as amended and in effect from time to time. Any reference to a specific
provision of ERISA shall be deemed to include reference to any successor provision
thereto.  

        Section
2.14.     “Exchange Act” means the Securities
Exchange Act of 1934, as interpreted by regulations and rules issued pursuant thereto,
all as amended and in effect from time to time. Any reference to a specific provision of
the Exchange Act shall be deemed to include reference to any successor provision thereto.  

        Section
2.15.     “Fair Market Value” means with respect
to a Share, except as otherwise provided herein, the closing sales price on the New York
Stock Exchange on the date in question (or the immediately preceding trading day if the
date in question is not a trading day), and with respect to any other property, such
value as is determined by the Administrator.  

        Section
2.16.     “Fixed Income Investment Option” means
a hypothetical fixed income fund that is deemed to be invested each Plan Year quarter at
the prime rate on the last day of the immediately preceding Plan year quarter plus one
percent (1%). “Prime rate” means the prime rate published for such date in The
Wall Street Journal.  

3 

        Section
2.17.     “Investment Account” means the
subaccount described in Article 5, which is deemed invested in Investment Options other
than Share Units. The remaining balance of a Participant’s Account may be referred
to as the “Share Unit Account.” 

        Section
2.18.     “Investment Options” mean the Fixed
Income Investment Option, the Share Unit Account, and any other alternatives made
available by the Administrator, which shall be used for the purpose of measuring
hypothetical investment experience attributable to a Participant’s Account.
Investment options under the Plan are also available for investments held pursuant to the
Predecessor Plan.  

        Section
2.19.     “Participant” means each executive
officer of the Company elected by the Board and any other employee of the Company or any
Affiliate who is selected for participation in the Plan by the Committee and who makes
Deferrals hereunder. Notwithstanding the foregoing, the Committee shall limit the
foregoing group of eligible employees to a select group of management and highly
compensated employees, as determined by the Committee in accordance with ERISA. Where the
context so requires, a Participant also means a former employee entitled to receive a
benefit hereunder. In addition, “Participant” means each nonemployee member of
the Board. An individual ceases to be a Participant when the Participant’s Account
balance hereunder has been fully paid out or forfeited.  

        Section
2.20.     “Plan Year” means the fiscal year of
the Company beginning each October 1.  

        Section
2.21.     “Predecessor Plan” means the Oshkosh
Corporation Deferred Compensation Plan for Directors and Executive Officers, restated
effective January 1, 2002, and subsequently amended.  

        Section
2.22.     “Retainer Fees” means those fees paid
by the Company to nonemployee members of the Board for services rendered on the Board or
any committee of the Board, including attendance fees and fees for serving as committee
chair.  

        Section
2.23.     “Separation from Service” means a
Participant’s death, retirement, or other termination of employment from the Company
and all Affiliates, or, for a nonemployee member of the Board, cessation of service as a
Board member, for any reason, provided the cessation of service is a good-faith and
complete termination of the relationship with the Company, in accordance with Treasury
Regulation 1.409A-1(h), which is incorporated herein by this reference. As set forth in
greater detail in such regulations:  

        (a)              If,
at the time of the cessation of service, a nonemployee Board member           anticipates
a renewal of a significant contractual relationship with the Company           or
becoming an employee, then such cessation of service as a Board member does           not
constitute a good-faith and complete termination of the relationship with           the
Company.  

        (b)              If
an employee Participant takes a leave of absence from the Company or an
          Affiliate for purposes of military leave, sick leave or other bona fide leave
of           absence, the Participant’s employment will be deemed to continue for
the           first six (6) months of the leave of absence, or if longer, for so long as
the           Participant’s right to reemployment is provided either by statute or
by           contract. If the period of the leave exceeds six (6) months and the
          Participant’s right to reemployment is not provided by either statute or
          contract, the Participant will be considered to have incurred a Separation from
          Service on the first day of the seventh (7th) month of the leave of
          absence.  

4 

        (c)              If
a Participant provides only insignificant services to the Company or an
          Affiliate, the Participant will be deemed to have incurred a Separation from
          Service. For this purpose, a Participant is considered to be providing
          insignificant services if he or she provides services at an annual rate that is
          twenty percent (20%) or less of the services rendered by such individual, on
          average, during the immediately preceding thirty-six (36) months (or, if
          employed less than thirty-six (36) months, such lesser period of service or
          employment with the Company).  

        (d)              If
a Participant continues to provide services to the Company or an Affiliate in           a
capacity other than as an employee, the Participant will not be deemed to have
          incurred a Separation from Service if the Participant is providing services at
          an annual rate that is at least fifty percent (50%) of the services rendered by
          such individual, on average, during the immediately preceding thirty-six (36)
          months of employment (or, if employed less than thirty-six (36) months, such
          lesser period of employment).  

        Section
2.24.    “Share” means a share of the Common
Stock of the Company. 

        Section
2.25.     “Share Unit Account” means the
subaccount described in Article 7, which is deemed invested in Shares. The remaining
balance of a Participant’s Account may be referred to as the “Investment
Account.” 

        Section
2.26.     “Share Units” means the hypothetical
Shares that are credited to the Share Unit Accounts in accordance with Article 7.  

        Section
2.27.     “Unforeseeable Emergency” means a
severe financial hardship of the Participant, resulting from any of the following:  

	 	
(1)    
               an illness or accident of the Participant, his or her spouse or dependent
(as                defined in Code Section 152(a) without regard to Section 152(b)(1),
(b)(2), and                (d)(1)(B));  

	 	
(2)    
               a loss of the Participant’s property due to casualty (including the
need to                rebuild a home following damage to a home not otherwise covered by
insurance,                for example, as a result of a natural disaster); or  

	 	
(3)    
               other similar extraordinary and unforeseeable circumstances arising as a
result                of events beyond the control of the Participant, as determined by
the                Administrator in accordance with Treasury Regulation 1.409A-3(i)(3).  

        Section
2.28.     “Valuation Date” means the last day of
each fiscal year quarter. The Administrator will determine the value of each Account not
less frequently than quarterly.  

        Section
2.29.    Construction. Wherever any words are used in the
masculine, they shall be construed as though they were used in the feminine in all cases
where they would so apply; and wherever any words are use in the singular or the plural,
they shall be construed as though they were used in the plural or the singular, as the
case may be, in all cases where they would so apply. Titles of articles and sections are
for general information only, and the Plan is not to be construed by reference to such
items.  

5 

        Section
2.30.    Severability. In the event any provision of the
Plan is held illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of the Plan, and the Plan shall be construed and enforced as
if the illegal or invalid provision had not been included.  

ARTICLE 3.

  PARTICIPATION  

        Section
3.1.    Effective Date. Each individual for whom an
Account is maintained under the Plan as of December 31, 2004, shall continue in
participation hereunder on January 1, 2005.  

        Section
3.2.    New Participants. Each individual for whom an
Account is established under the Plan on or after January 1, 2005, shall become a
Participant as of the date he or she is authorized to make (or is deemed to make) a
deferral election under Article 4.  

ARTICLE 4.

DEFERRALS OF COMPENSATION  

        Section
4.1.    Salary Deferrals.  

        (a)              An
employee Participant may elect, prior to the first day of a calendar year, in           a
timely manner and in accordance with the Administrator’s rules and
          procedures, to have deferred under this Plan all or part of the
          Participant’s base salary to be paid in the immediately following calendar
          year, subject to the applicable Deferral minimum described in Section 4.9.
          “All” salary for this purpose is limited to a reasonable percentage,
          as determined by the Administrator, allowing for sufficient currently payable
          salary to meet the Participant’s other payroll-related obligations, for
          example, for the payment of welfare benefit plan premiums, pretax contributions
          or salary reductions pursuant to plans sponsored or maintained by the Company,
          and payroll taxes. Ordinarily it is not expected that an election to defer
          “all” salary will exceed sixty-five percent (65%) of the amount of
          salary actually payable.  

        (b)              A
Salary Deferral election is effective for the calendar year for which it is
          initially made and for subsequent calendar years until such election is revoked
          or revised in writing by the Participant in a timely manner and in compliance
          with the Administrator’s rules and procedures for such elections. As of
the           first day of a calendar year for which a Salary Deferral election is
effective,           the Participant’s Salary Deferral election for such calendar
year shall be           irrevocable except as provided in Section 4.8. A Participant’s
Salary           Deferrals will be credited to the Participant’s Account at the time
such           salary would otherwise have been paid to the Participant.  

        (c)              Any
revocation or revision shall be effective as of the first day of the           calendar
year immediately following the calendar year in which such notice was           provided
to the Administrator and shall remain in effect until a further timely           election
or revision is filed with the Administrator.  

6 

        (d)              The
Company shall credit additional deferred compensation to the Salary Deferral
          subaccount of an employee Participant who is making pretax contributions to the
          Company 401(k) plan under the following circumstances and in the following
          amount. The Company shall, not less frequently than annually, make a matching
          contribution, in the same relative amount that it would make to such
          Participant’s 401(k) plan account, with respect to the Participant’s
          Salary Deferrals to this Plan. It is intended that such amounts be credited at
          the time that the corresponding matching contributions are made by the Company
          to the 401(k) plan. For any 401(k) plan year, however, the Participant’s
          aggregate Company matching contribution to the 401(k) plan and to this Plan
          shall not exceed the rate of Company matching applicable under the 401(k) plan
          multiplied by the maximum allowable pretax contribution permitted for the
401(k)           plan year by Code Section 402(g) (exclusive of catch-up contributions
permitted           by Code Section 414(v)).  

        Section
4.2.    Retainer Fee Deferrals.  

        (a)              A
nonemployee member of the Board may elect, prior to the first day of a           calendar
year, in a timely manner and in accordance with the           Administrator’s rules
and procedures, to have deferred under this Plan all           or part of the Participant’s
Retainer Fees to be paid in the immediately           following calendar year, subject to
the applicable Deferral minimum described in           Section 4.9. A Retainer Fee
Deferral election is effective for the calendar year           for which it is initially
made and for subsequent calendar years until such           election is revoked or
revised in writing by the Participant in a timely manner           and in compliance with
the Administrator’s rules and procedures for such           elections. As of the
first day of a calendar year for which a Retainer Fee           Deferral election is
effective, the Participant’s Retainer Fee Deferral           election for such
calendar year shall be irrevocable except as provided in           Section 4.8. A
Participant’s Retainer Fee Deferrals will be credited to the           Participant’s
Account at the time such amounts would otherwise have been           paid to the
Participant.  

        (b)              Any
revocation or revision shall be effective as of the first day of the           calendar
year immediately following the calendar year in which such notice was           provided
to the Administrator and shall remain in effect until a further timely           election
or revision is filed with the Administrator.  

        Section
4.3.    Annual Bonus Deferrals.  

        (a)              Subject
to the exception noted in subsection (b), below, an employee Participant           may
elect, prior to the first day of the fiscal year of the Company for which an
          annual bonus award is made, in a timely manner and in accordance with the
          Administrator’s rules and procedures, to have deferred under this Plan all
          or a part of such annual bonus award, subject to the applicable Deferral
minimum           described in Section 4.9. A Participant’s election to defer an
annual bonus           award shall be effective for the fiscal year award for which it is
initially           made and for awards made for subsequent fiscal years until such
election is           revoked or revised in writing by the Participant in a timely manner
and in           compliance with the Administrator’s rules and procedures for such
          elections. As of the first day of a fiscal year for which an Annual Bonus
          Deferral election is effective, the Participant’s Annual Bonus Deferral
          election for such fiscal year shall be irrevocable except as provided in
          subsection (b) and in Section 4.8. A Participant’s Annual Bonus Deferrals
          will be credited to the Participant’s Account at the time such amounts
          would otherwise have been paid to the Participant.  

7 

        (b)              Notwithstanding
the election timing requirements of subsection (a), if an annual           bonus award is
based on services performed over a period of at least twelve (12)           months and is
performance-based compensation, pursuant to Code Section           409A(a)(4)(B)(iii) and
the guidance applicable to that Code Section, a           Participant may make an Annual
Bonus Deferral election at any time during the           period that ends six (6) months
before the end of the service period on which           such performance-based
compensation is determined. Such election is subject to           all of the other
provisions of this Section except that it becomes irrevocable           on the day
following the end of the extended election period described in the           preceding
sentence, except as provided in Section 4.8.  

        (c)              Any
revocation or revision shall be effective as of the first day of the fiscal
          year immediately following the fiscal year in which such notice was provided to
          the Administrator and shall remain in effect until a further timely election or
          revision is filed with the Administrator.  

        Section
4.4.    Long-Term Incentive Deferrals.  

        (a)              An
employee Participant may elect, in a timely manner and in accordance with the
          Administrator’s rules and procedures, to have deferred under this Plan all
          or a part of a long-term incentive award, subject to the applicable Deferral
          minimum described in Section 4.9. A Participant’s election to defer a
          long-term incentive award shall be effective for the fiscal year award for
which           it is initially made and for awards made for subsequent fiscal years
until such           election is revoked or revised in writing by the Participant in a
timely manner           and in compliance with the Administrator’s rules and
procedures for such           elections. As of the first day of a fiscal year for which a
Long-Term Incentive           Deferral election is effective, the Participant’s
Long-Term Incentive           Deferral election for such fiscal year shall be irrevocable
except as provided           in Section 4.8.  

        (b)              A
Participant’s Long-Term Incentive Deferrals will be credited to the
          Participant’s Account at the time such amounts are awarded subject to
          deferral election. Any Share-based Long-Term Incentive Deferrals will be
          automatically credited as Share Units to the Participant’s Share Unit
          Account. Any Long-Term Incentive Deferrals shall be subject to the same risk of
          forfeiture as provided in the grant of the award subject to the Deferral
          election.  

        (c)              Any
revocation or revision shall then be effective as of the first day of the
          fiscal year immediately following the fiscal year in which such notice was
          provided to the Administrator and shall remain in effect until a further timely
          election or revision is filed with the Administrator.  

        Section
4.5.    Nonemployee Director Long-Term Incentive Deferral. 

        (a)              A
nonemployee member of the Board may elect, in a timely manner and in           accordance
with the Administrator’s rules and procedures, to defer receipt           of all or
any portion of a long-term incentive award, subject to the applicable           Deferral
minimum described in Section 4.9. A Participant’s election to           defer
receipt of a long-term incentive award shall be effective for the award to
          which the election initially relates and to all subsequent long-term incentive
          awards until such election is revoked or revised in writing by the Participant
          in a timely manner and in compliance with the Administrator’s rules and
          procedures for such elections.  

8 

        (b)              A
Participant’s Nonemployee Director Long-Term Incentive Deferrals will be
          automatically credited as Share Units to the Participant’s Share Unit
          Account under the Plan. The portion of the Participant’s Share Unit
Account           attributable to Nonemployee Director Long-Term Incentive Deferrals
shall be           subject to the same risk of forfeiture as the long-term incentive
awards to           which such Deferral election relates.  

        (c)              A
Participant may revoke or revise a Nonemployee Director Long-Term Incentive
          Deferral election by providing written notice to the Administrator, on such
form           or in such format as the Administrator may require for this purpose. Such
          revocation or revision shall then be effective as to any subsequent such award,
          provided the notice was provided to the Administrator on or before (i) the
          calendar year in which such subsequent award is granted, or (ii), if the award
          is subject to a risk of forfeiture, the thirtieth (30th) day after
          the date of the grant of such award, and shall remain in effect until a further
          timely election or revision is filed with the Administrator.  

        Section
4.6.    Special Election Rules for New Participants.
Notwithstanding the deferral election timing rules set out in Sections 4.1 through 4.5,
above, if the Plan becomes initially effective for an eligible person, including
newly-elected Board members, or if an employee is initially selected to be eligible to
become a Participant as of a date that is not the first day of a calendar year, then such
person may make deferral elections under the initial eligibility deferral election rule
described in Treasury Regulation 1.409A-2(a)(6). Pursuant to such initial eligibility
deferral election rules, such person is generally required to make and deliver his or her
deferral elections for the balance of the year or other applicable period not later than
thirty (30) days after the date the Plan becomes effective as to such person. The
election may only apply to compensation such person earns for services performed
subsequent to the date such person delivers the election to the Administrator.  

        Section
4.7.    Deferral of Dividend Awards. A Participant shall
be deemed to have elected to have all dividend awards or other distributions paid with
respect to Share Units (as described in Section 7.1) credited to the Participant’s
Share Unit Account. The portion of the Participant’s Share Unit Account attributable
to such amounts shall be subject to the same risk of forfeiture as the restricted shares
to which such amounts relate.  

        Section
4.8.    Cancellation of Deferral Elections. If a
Participant receives a distribution due to an Unforeseeable Emergency and requests
cancellation of his or her deferral elections under Section 4.1, 4.2, 4.3, 4.4, or 4.5,
or if the Administrator determines that such deferral elections must be cancelled in
order for the Participant to receive a distribution due to an Unforeseeable Emergency,
then the Participant’s deferral election(s) shall be cancelled. Likewise, if
required for the Participant to receive a hardship distribution under any 401(k) plan
maintained by the Company or an Affiliate, the Participant’s deferral election(s)
shall be cancelled. A Participant whose deferral election(s) are cancelled pursuant to
this Section 4.8 may make a new deferral election under Sections 4.1, 4.2, 4.3, 4.4, or
4.5, with respect to future salary, Retainer Fees, annual bonus awards, long-term
incentive awards or nonemployee director long-term incentive awards, as applicable,
unless otherwise prohibited by the Administrator.  

9 

        Section
4.9.    Administration of Deferral Elections. All deferral
elections must be made in the form and manner and within such time periods as the
Administrator prescribes in order to be effective. A Participant’s Salary Deferral
election for a year shall reasonably be expected to equal or exceed ten percent (10%) of
the applicable salary. A Participant’s other Deferral elections shall reasonably be
expected to equal or exceed twenty-five percent (25%) of the applicable Retainer Fee,
Annual Bonus, Long-Term Incentive, or Nonemployee Director Long-Term Incentive award.  

ARTICLE 5.

HYPOTHETICAL INVESTMENT OPTIONS  

        Section
5.1.    Investment Election. Amounts credited to a
Participant’s Account shall reflect the investment experience of the Investment
Options either selected by the Participant or required to be used by Sections 4.4, 4.5,
and 4.6. The Participant may make an initial investment election at the time of
enrollment in the Plan in whole increments of ten percent (10%), unless other incremental
amounts are established by Administrator rules. A Participant may also elect to
reallocate his or her Account, and may elect to allocate any future Deferrals, among the
various Investment Options in permitted increments; provided that Share-based Long-Term
Incentive Deferrals and Nonemployee Director Long-Term Incentive Deferrals are not
eligible for re-allocation out of the Share Unit Account. Participants will be allowed to
change investment elections in the manner and frequency determined by the Administrator,
which shall be no less frequently than once each calendar year quarter. In the absence of
an effective election, the Participant’s Account (to the extent the Plan does not
require Deferrals to be allocated to the Share Unit Account) shall be deemed invested in
the Fixed Income Investment Option. As of each Valuation Date, the Administrator (or its
designee) shall credit the deemed investment experience with respect to the selected (or
required) Investment Options to each Participant’s Account.  

        Section
5.2.    Securities Law Restrictions. Notwithstanding
anything to the contrary herein, all elections under Article 5 or 6 by a Participant who
is subject to Section 16 of the Exchange Act are subject to review by the Administrator
prior to implementation. In accordance with Section 9.2, the Administrator may restrict
additional transactions, rescind transactions, or impose other rules and procedures, to
the extent deemed desirable by the Administrator in order to comply with the Exchange
Act, including, without limitation, application of the review and approval provisions of
this Section 5.2 to Participants who are not subject to Section 16 of the Exchange Act.  

        Section
5.3.    Accounts Are For Record Keeping Purposes Only.
Plan Accounts and the record keeping procedures described herein serve solely as a device
for determining the amount of benefits accumulated by a Participant under the Plan, and
shall not constitute or imply an obligation on the part of the Company or any Affiliate
to fund such benefits. In any event, the Company or an Affiliate may, in its discretion,
set aside assets equal to part or all of such Account balances and invest such assets in
Shares, life insurance or any other investment deemed appropriate. Any such assets,
including Shares, shall be and remain the sole property of the Company or Affiliate that
set aside such assets, and a Participant shall have no proprietary rights of any nature
whatsoever with respect to such assets.  

10 

ARTICLE 6.

DISTRIBUTION OF ACCOUNTS  

        Section
6.1.    Election of Form of Distribution.  

        (a)              The
two forms of distribution which may be elected under the Plan are a single           lump
sum payment or annual installments over from two (2) to ten (10) years. A
          combination of lump sum and annual installments is also permitted. In the
          absence of an applicable distribution election, distribution shall be made in a
          lump sum.  

        (b)              At
the time a Participant makes his or her initial Salary Deferral, Retainer Fee
          Deferral, Annual Bonus Deferral, or Long-Term Incentive Deferral (cash awards
          only) election, the Participant may elect the form of distribution that shall
          apply to the portion of the Participant’s Account that is attributable to
          his or her Salary Deferrals, Retainer Fee Deferrals, Annual Bonus Deferrals,
and           Long-Term Incentive Deferrals (cash awards only) under the Plan. The
election of           a form of distribution as to such sources of Deferrals may not
subsequently be           changed or revoked after the Participant’s initial
Deferral election           referred to above in this subsection has become irrevocable
(other than for the           exception in Section 4.8).  

        (c)              At
the time a Participant makes his or her initial Long-Term Incentive Deferral
          (Share-based awards only) or Nonemployee Director Long-Term Incentive Deferral
          election, the Participant may elect the form of distribution that shall apply
to           the portion of the Participant’s Account that is attributable to his or
her           Long-Term Incentive Deferrals (Share-based awards only) or Nonemployee
Director           Long-Term Incentive Deferrals under the Plan. The election of a form
of           distribution as to such sources of Deferrals may not subsequently be changed
or           revoked after the Participant’s initial Deferral election referred to
above           in this subsection (c) has become irrevocable (other than for the
exception in           Section 4.8).  

        (d)              If
a Participant has both Long-Term Incentive Deferrals (Share-based awards           only)
and Nonemployee Director Long-Term Incentive Deferrals, separate elections           of a
form of distribution shall be made for the portions of the           Participant’s
Account attributable to each type of Deferral.  

11 

        Section
6.2.    Distribution of Cash or Shares. Subject to Article
8, all distributions to Participants from Share Unit Accounts shall be made in Shares,
except that cash may be distributed in lieu of fractional shares of Company stock, at the
sole discretion of the Administrator. All distributions to Participants from Investment
Accounts shall be in cash. All distributions from any source paid to a Beneficiary or
alternate payee under a qualified domestic relations order may be paid in cash at the
sole discretion of the Administrator. Any Share Unit Accounts maintained for a
Beneficiary shall be deemed to be invested in the Fixed Income Investment Option
effective on the Valuation Date coincident with or immediately following the date of
death. The Participant’s Account shall be distributed based on the Participant’s
elections of the form of distribution.  

        Section
6.3.    Time of Distribution.  

        (a)    Separation
from Service. Upon a Participant’s Separation from                Service for
any reason, the amount accumulated in the Participant’s Account                shall
be distributed, or commence to be distributed, to the Participant, or his
               Beneficiary in the event of the Participant’s death as described in
               subsection (b) or (c), below.  

        (b)    Lump
Sum. Lump sum distributions will be made in January of the year
               following the year in which the Participant’s Separation from Service
               occurs to those Participants whose Separation from Service occurs during
the                period January 1 through June 30. Lump sum distributions will be made
in July of                the year following the year in which the Participant’s
Separation from                Service occurs to those Participants whose Separation from
Service occurs during                the period July 1 through December 31. The lump sum
distribution shall be in an                amount equal to the balance of the Participant’s
Account as of the                Valuation Date immediately preceding the distribution
date.  

        (c)    Installments.
If distribution is to be made in annual installments, the                first annual
payment shall be made, for those Participants whose Separation from
               Service occurs during the period January 1 through June 30, in January of
the                year following the year in which the Participant’s Separation
from Service                occurs. For those Participants whose Separation from Service
occurs during the                period from July 1 through December 31 of a year, the
first annual installment                shall be made in July of the year following the
year in which such                Participant’s Separation from Service occurs. All
subsequent installments                shall be made in January of each year. The amount
of each annual installment is                determined by multiplying the balance of the
Participant’s Account subject                to installment payments as of the
Valuation Date immediately preceding the                distribution date by a fraction,
the numerator of which is one (1) and the                denominator of which is the
number of installments remaining, including the                current installment.
Notwithstanding the foregoing provisions of this                subsection, if the
balance of a Participant’s Account at any time is less                than fifty
thousand dollars ($50,000) during the installment payout period, the
               remaining balance shall be paid in the form of a lump sum when the next
               installment payment is otherwise due to be paid.  

        (d)    Delay
in Payment. Notwithstanding the foregoing, a distribution may be
               delayed beyond the date it would have otherwise been paid under subsection
(b)                or (c) in the following circumstances:  

12 

	 	
(1)                   If
the distribution would have jeopardized the ability of the Company to
               continue as a going concern, the distribution may be delayed until no
later than                the first taxable year of the Company in which the making of
the payment would                not have such effect.  

	 	
(2)                   If
the distribution will violate the terms of Section 16(b) of the Exchange Act
               or other Federal securities laws, or any other applicable law, then the
               distribution shall be delayed until the earliest date on which making the
               distribution will not violate such law.  

        (e)    Earlier
Distribution. Notwithstanding the foregoing, a distribution may                be
made prior to the date specified in the preceding subsections as follows:  

	 	
(1)                   If
an amount deferred under this Plan is required to be included in income under
               Code Section 409A prior to the date such amount is actually distributed, a
               Participant shall receive a distribution, in a lump sum as soon as
practicable                after the date the Plan fails to meet the requirements of Code
Section 409A, of                the amount required to be included in the Participant’s
income as a result                of such failure.  

	 	
(2)                   If
an amount deferred under this Plan is required to be distributed under a
               domestic relations order under Code Section 414(p)(1)(B), it may be
distributed                prior to the date specified in (a) above.  

        Section
6.4.    Distribution of Remaining Account Following
Participant's Death. 

        (a)    Distribution
upon Death. In the event of the Participant’s death           before payments
have commenced from the Participant’s Account, the balance           of the
Participant’s Account shall be paid to the Participant’s           Beneficiary
in the manner of distribution elected by the Participant, or if           none, in a lump
sum distribution. In the event of the Participant’s death,           after
installment payments have commenced but prior to receiving all payments           due
hereunder, the balance of the Participant’s Account shall be paid to           the
Participant’s Beneficiary after the Participant’s death at the           same
rate as payment was being made at the time of the Participant’s death,
          until the Account is fully paid out.  

        (b)    Designation
of Beneficiary. Each Participant may designate a Beneficiary           in such form
and manner and within such time periods as the Administrator may           prescribe. A
Participant can change the Participant’s beneficiary           designation at any
time, provided that each beneficiary designation shall revoke           the most recent
designation, and the last designation received by the Company           (or its
delegatee) while the Participant was alive shall be given effect. If a
          Participant designates a Beneficiary without providing in the designation that
          the Beneficiary must be living at the time of distribution, the designation
          shall vest in the Beneficiary the distribution payable after the
          Beneficiary’s death, and such distribution if not paid by the
          Beneficiary’s death shall be made to the Beneficiary’s estate. In the
          event there is no valid beneficiary designation in effect at the time of the
          Participant’s death, in the event the Participant’s designated
          Beneficiary does not survive the Participant, or in the event that the
          beneficiary designation provides that the Beneficiary must be living at the
time           of distribution and such designated Beneficiary does not survive to the
          distribution date, the Participant’s estate will be deemed the Beneficiary
          and will be entitled to receive payment. If a Participant designates the
          Participant’s spouse as a Beneficiary, such beneficiary designation
          automatically shall become null and void on the date the Administrator receives
          notice of the Participant’s divorce or legal separation.  

13 

        Section
6.5.    Distribution in Event of Unforeseeable Emergency.
If requested by a Participant while in the employ of the Company or an Affiliate, and if
the Administrator determines that an Unforeseeable Emergency has occurred, all or part of
the Participant’s Account (other than any non-vested portion) may be paid out to the
Participant in a cash lump sum. The amount to be distributed to the Participant shall
only be such amount as is needed to alleviate the Participant’s Unforeseeable
Emergency, including any Federal, state or local income taxes or penalties reasonably
anticipated to result from the distribution, after taking into account the extent to
which the emergency is or may be relieved through reimbursement or compensation from
insurance or otherwise, by liquidation of the Participant’s assets (to the extent
such liquidation would not itself cause a severe financial hardship), or by cessation of
deferrals under the Plan.  

        Section
6.6.    Tax Withholding. The Company shall have the right
to deduct from any deferral or payment made hereunder, or from any other amount due a
Participant, the amount of cash and/or Fair Market Value of Shares sufficient to satisfy
the Company’s or Affiliate’s foreign, federal, state or local income tax
withholding obligations with respect to such deferral (or vesting thereof) or payment. In
addition, if prior to the date of distribution of any amount hereunder, the Federal
Insurance Contributions Act (FICA) tax imposed under Code Sections 3101, 3121(a) and
3121(v)(2), where applicable, becomes due, the Participant’s Account balance shall
be reduced by the amount needed to pay the Participant’s portion of such tax.  

        Section
6.7.    Offset. The Company or Affiliate shall have the
right to offset from any amount payable hereunder any amount that the Participant owes to
the Company or any Affiliate without the consent of the Participant (or his Beneficiary,
in the event of the Participant’s death).  

ARTICLE 7. 
RULES
WITH RESPECT TO SHARE UNITS  

        Section
7.1.    Valuation of Share Unit Account. When any amounts
are to be allocated to a Share Unit Account (whether in the form of Deferrals or amounts
that are deemed re-allocated from another Investment Option), such amount shall be
converted to whole and fractional Share Units, with fractional units calculated to two
(2) decimal places, by dividing the amount to be allocated by the Fair Market Value of a
Share on the effective date of such allocation. If any dividends or other distributions
are paid on Shares while a Participant has Share Units credited to the Participant’s
Account, such Participant shall be credited with a dividend award equal to the amount of
the cash dividend paid or Fair Market Value of other property distributed on one Share,
multiplied by the number of Share Units credited to the Participant’s Share Unit
Account on the dividend record date. The dividend award shall be converted into
additional Share Units as provided above using the Fair Market Value of a Share on the
dividend record date. Any other provision of this Plan to the contrary notwithstanding,
if a dividend is paid on Shares in the form of a right or rights to purchase shares of
capital stock of the Company or any entity acquiring the Company, no additional Share
Units shall be credited to the Participant’s Share Unit Account with respect to such
dividend, but each Share Unit credited to a Participant’s Share Unit Account at the
time such dividend is paid, and each Share Unit thereafter credited to the Participant’s
Share Unit Account at a time when such rights are attached to Shares, shall thereafter be
valued as of any point in time on the basis of the aggregate of the then Fair Market
Value of one Share plus the then Fair Market Value of such right or rights then attached
to one Share.  

14 

        Section
7.2.    Transactions Affecting Common Stock. In the event
of any merger, share exchange, reorganization, consolidation, recapitalization, stock
dividend, stock split or other change in corporate structure of the Company affecting
Shares, the Committee may make appropriate equitable adjustments with respect to the
Share Units credited to the Share Unit Account of each Participant, including without
limitation, adjusting the date as of which such units are valued, as the Committee
determines is necessary or desirable to prevent the dilution or enlargement of the
benefits intended to be provided under the Plan.  

        Section
7.3.    No Shareholder Rights With Respect to Share Units.
Participants shall have no rights as a stockholder pertaining to Share Units credited to
their Accounts.  

ARTICLE 8. 
SPECIAL
RULES APPLICABLE IN THE EVENT OF A CHANGE IN CONTROL OF THE COMPANY  

        Section
8.1.    Acceleration of Payment of Accounts.
Notwithstanding any other provision of this Plan, within ten (10) days after a Change in
Control (as defined in Section 8.2), each Participant, including Participants receiving
installment payments under the Plan, shall be distributed a lump sum payment in cash of
all nonforfeitable amounts accumulated in such Participant’s Account. Such payment
shall be made as soon as practicable following the Change in Control.  

        In
determining the amount accumulated in a Participant’s Share Unit Account, each Share
Unit shall have a value equal to the higher of (a) the highest reported sales price,
regular way, of a Share on the Composite Tape for New York Stock Exchange Listed Stocks
(the “Composite Tape”) during the sixty-day period prior to the date of the
Change in Control of the Company and (b) if the Change in Control of the Company is the
result of a transaction or series of transactions, the highest price per Share of the
Company paid in such transaction or series of transactions. 

        Section
8.2.    Definition of a Change in Control. A Change in
Control means a change in the ownership or effective control of a corporation, or a
change in the ownership of a substantial portion of the assets of a corporation, within
the meaning of Code Section 409A and Treasury Regulation 1.409A-3(a)(5), which is
incorporated herein by this reference.  

15 

        Section
8.3.    Maximum Payment Limitation.  

        (a)    Limit
on Payments. Except as provided in subsection (b) below, if any           portion of
the payments or benefits described in this Plan or under any other           agreement
with or plan of the Company or a Affiliate (in the aggregate,           “Total
Payments”), would constitute an “excess parachute           payment,” then
the Total Payments to be made to the Participant shall be           reduced such that the
value of the aggregate Total Payments that the Participant           is entitled to
receive shall be one dollar ($1) less than the maximum amount           which the
Participant may receive without becoming subject to the tax imposed by           Section
4999 of the Code or which the Company may pay without loss of deduction           under
Section 280G(a) of the Code; provided that this Section shall not apply in           the
case of a Participant who has in effect a valid employment contract           providing
that the Total Payments to the Participant shall be determined without           regard
to the maximum amount allowable under Section 280G of the Code. The terms           “excess
parachute payment” and “parachute payment” shall           have the
meanings assigned to them in Section 280G of the Code, and such           “parachute
payments” shall be valued as provided therein. Present           value shall be
calculated in accordance with Section 280G(d)(4) of the Code.           Within forty (40)
days following delivery of notice by the Company to the           Participant of its
belief that there is a payment or benefit due the Participant           which will result
in an excess parachute payment, the Participant and the           Company, at the Company’s
expense, shall obtain the opinion (which need not           be unqualified) of nationally
recognized tax counsel selected by the           Company’s independent auditors and
acceptable to the Participant in his           sole discretion (which may be regular
outside counsel to the Company), which           opinion sets forth (1) the amount of the
Base Period Income, (2) the amount and           present value of Total Payments and (3)
the amount and present value of any           excess parachute payments determined
without regard to the limitations of this           Section. As used in this Section, the
term “Base Period Income” means           an amount equal to the Participant’s
“annualized includible           compensation for the base period” as defined
in Section 280G(d)(1) of the           Code. For purposes of such opinion, the value of
any non-cash benefits or any           deferred payment or benefit shall be determined by
the Company’s           independent auditors in accordance with the principles of
Sections 280G(d)(3)           and (4) of the Code, which determination shall be evidenced
in a certificate of           such auditors addressed to the Company and the Participant.
Such opinion shall           be addressed to the Company and the Participant and shall be
binding upon the           Company and the Participant. If such opinion determines that
there would be an           excess parachute payment, the payments hereunder that are
includible in Total           Payments or any other payment or benefit determined by such
counsel to be           includible in Total Payments shall be reduced or eliminated as
specified by the           Participant in writing delivered to the Company within thirty
days of his           receipt of such opinion or, if the Participant fails to so notify
the Company,           then as the Company shall reasonably determine, so that under the
bases of           calculations set forth in such opinion there will be no excess
parachute           payment. If such legal counsel so requests in connection with the
opinion           required by this Section, the Participant and the Company shall obtain,
at the           Company’s expense, and the legal counsel may rely on in providing
the           opinion, the advice of a firm of recognized executive compensation
consultants           as to the reasonableness of any item of compensation to be received
by the           Participant. If the provisions of Sections 280G and 4999 of the Code are
          repealed without succession, then this Section shall be of no further force or
          effect.  

16 

        (b)    Employment
Contract Governs. The provisions of subsection (a) above shall           not apply to
a Participant whose employment is governed by an employment           contract that
provides for Total Payments in excess of the limitation described           in subsection
(a) above.  

        Section
8.4.    Cessation of All Deferrals. All deferrals under
the Plan shall cease upon the occurrence of a Change in Control. Amounts that would
otherwise be deferred will, instead, be paid to Participants in accordance with their
terms.  

ARTICLE 9. 
GENERAL
PROVISIONS  

        Section
9.1.    Administration.  

        (a)    General.
The Committee shall have overall authority with respect to           administration of
the Plan; provided that the Administrator shall have           responsibility for the
general operation and daily administration of the Plan as           specified herein. If
at any time the Committee shall not be in existence or not           be composed of
members of the Board who qualify as “nonemployee           directors,” then all
determinations affecting Participants who are subject           to Section 16 of the
Exchange Act shall be made by the full Board, and all           determinations affecting
other Participants shall be made by the Board or an           officer of the Company or
other committee appointed by the Board (with the           assistance of the
Administrator). The Committee or Administrator may, in its           discretion, delegate
any or all of its authority and responsibility; provided           that the Committee
shall not delegate authority and responsibility with respect           to non-ministerial
functions that relate to the participation by Participants           who are subject to
Section 16 of the Exchange Act at the time any such delegated           authority or
responsibility is exercised. To the extent of any such delegation,           any
references herein to the Committee or Administrator, as applicable, shall be
          deemed references to such delegatee. Interpretation of the Plan shall be within
          the sole discretion of the Committee or the Administrator with respect to their
          respective duties hereunder. If any delegatee of the Committee or the
          Administrator shall also be a Participant or Beneficiary, any determinations
          affecting the delegatee’s participation in the Plan shall be made by the
          Committee or Administrator, as applicable.  

        (b)    Authority
and Responsibility. In addition to the authority specifically           provided
herein, the Committee and Administrator shall have the discretionary           authority
to take any action or make any determination it deems necessary for           the proper
administration of its respective duties under the Plan, including but           not
limited to: (1) prescribe rules and regulations for the administration of           the
Plan; (2) prescribe forms for use with respect to the Plan; (3) interpret           and
apply all of the Plan’s provisions, reconcile inconsistencies or supply
          omissions in the Plan’s terms; (4) make appropriate determinations,
          including factual determinations, and calculations; and (5) prepare all reports
          required by law. Any action taken by the Committee shall be controlling over
any           contrary action of the Administrator. The Committee or Administrator may
          delegate its ministerial duties to a third party and to the extent such
          delegation, references to the Committee or Administrator herein shall mean such
          delegatee.  

17 

        (c)    Decisions
Binding. The Committee’s and Administrator’s           determination shall
be final and binding on all parties with an interest           hereunder, unless
determined to be arbitrary and capricious.  

        (d)    Procedures
of the Committee. The Committee’s determinations must be           made by not
less than a majority of its members present at the meeting (in           person or
otherwise) at which a quorum is present, or by written consent, which           sets
forth the action, is signed by each member of the Committee and filed with           the
minutes for proceedings of the Committee. A majority of the entire Committee
          shall constitute a quorum for the transaction of business. The
          Administrator’s determinations shall be made in accordance with such
          procedures it establishes.  

        (e)    Indemnification.
Service on the Committee or as an Administrator shall           constitute service as a
director or officer of the Company so that the Committee           and Administrator
members shall be entitled to indemnification, limitation of           liability and
reimbursement of expenses with respect to their Committee or           Administrator
services to the same extent that they are entitled under the           Company’s
By-laws and Wisconsin law for their services as directors or           officers of the
Company.  

        Section
9.2.    Restrictions to Comply with Applicable Law.
Notwithstanding any other provision of the Plan, the Company shall have no liability to
make any payment unless such payment would comply with all applicable laws and the
applicable requirements of any securities exchange or similar entity. In addition,
transactions under the Plan are intended to comply with all applicable conditions of Rule
16b-3 under the Exchange Act. The Committee and Administrator shall administer the Plan
so that transactions under the Plan will be exempt from or comply with Section 16 of the
Exchange Act, and shall have the right to restrict or rescind any transaction, or impose
other rules and requirements, to the extent it deems necessary or desirable for such
exemption or compliance to be met.  

        Section
9.3.    Claims Procedures.  

        (a)    Initial
Claim. If a Participant or Beneficiary (the “claimant”)           believes
that the claimant is entitled to a benefit under the Plan that is not           provided,
the claimant or his legal representative shall file a written claim           for such
benefit with the Committee. The Committee shall review the claim within           ninety
(90) days following the date of receipt of the claim; provided that the
          Committee may determine that an additional 90-day extension is necessary due to
          circumstances beyond the Committee’s control, in which event the Committee
          shall notify the claimant prior to the end of the initial period that an
          extension is needed, the reason therefor and the date by which the Committee
          expects to render a decision. If the claimant’s claim is denied in whole
or           part, the Committee shall provide written notice to the claimant of such
denial.           The written notice shall include: the specific reason(s) for the
denial;           reference to specific Plan provisions upon which the denial is based; a
          description of any additional material or information necessary for the
claimant           to perfect the claim and an explanation of which such material or
information is           necessary; and a description of the Plan’s review
procedures (as set forth           in subsection (b)) and the time limits applicable to
such procedures, including           a statement of the claimant’s right to bring a
civil action under section           502(a) of ERISA following an adverse determination
upon review.  

18 

        (b)    Request
for Appeal. The claimant has the right to appeal the           Committee’s
decision by filing a written appeal to the Committee within           sixty (60) days
after claimant’s receipt of the decision or deemed denial.           The claimant
will have the opportunity, upon request and free of charge, to have           reasonable
access to and copies of all documents, records and other information           relevant
to the claimant’s appeal. The claimant may submit written           comments,
documents, records and other information relating to his claim with           the appeal.
The Committee will review all comments, documents, records and other
          information submitted by the claimant relating to the claim, regardless of
          whether such information was submitted or considered in the initial claim
          determination. The Committee shall make a determination on the appeal within
          sixty (60) days after receiving the claimant’s written appeal; provided
          that the Committee may determine that an additional 60-day extension is
          necessary due to circumstances beyond the Committee’s control, in which
          event the Committee shall notify the claimant prior to the end of the initial
          period that an extension is needed, the reason therefor and the date by which
          the Committee expects to render a decision. If the claimant’s appeal is
          denied in whole or part, the Committee shall provide written notice to the
          claimant of such denial. The written notice shall include: the specific
          reason(s) for the denial; reference to specific Plan provisions upon which the
          denial is based; a statement that the claimant is entitled to receive, upon
          request and free of charge, reasonable access to and copies of all documents,
          records, and other information relevant to the claimant’s claim; and a
          statement of the claimant’s right to bring a civil action under section
          502(a) of ERISA. If the claimant does not receive a written decision within the
          time period(s) described above, the appeal shall be deemed denied on the last
          day of such period(s).  

        (c)    ERISA
Fiduciary. For purposes of ERISA, the Committee shall be considered           the
named fiduciary under the Plan.  

        Section
9.4.    Participant Rights Unsecured.  

        (a)    Unsecured
Claim. The right of a Participant or his Beneficiary to receive           a
distribution hereunder shall be an unsecured claim, and neither the           Participant
nor any Beneficiary shall have any rights in or against any amount           credited to
the Participant’s Account or any other specific assets of the           Company or
an Affiliate. The right of a Participant or Beneficiary to the           payment of
benefits under this Plan shall not be assigned, encumbered, or           transferred,
except as otherwise required by law. The rights of a Participant           hereunder are
exercisable during the Participant’s lifetime only by the           Participant or
his guardian or legal representative.  

        (b)    Contractual
Obligation. The Company or an Affiliate may authorize the           creation of a
trust or other arrangement to assist it in meeting the obligations           created
under the Plan. However, any liability to any person with respect to the           Plan
shall be based solely upon any contractual obligations that may be created
          pursuant to the Plan. No obligation of the Company or an Affiliate shall be
          deemed to be secured by any pledge of, or other encumbrance on, any property of
          the Company or any Affiliate. Nothing contained in this Plan and no action
taken           pursuant to its terms shall create or be construed to create a trust of
any           kind, or a fiduciary relationship between the Company or an Affiliate and
any           Participant or Beneficiary, or any other person.  

19 

        Section
9.5.    Amendment or Termination of Plan.  

        (a)    Amendment.
The Committee may at any time amend the Plan, including but           not limited to
modifying the terms and conditions applicable to (or otherwise           eliminating)
Deferrals to be made on or after the amendment date; provided,           however, that no
amendment may reduce or eliminate any Account balance accrued           to the date of
such amendment (except as such Account balance may be reduced as           a result of
investment losses allocable to such Account) without a           Participant’s
consent except as otherwise specifically provided herein. In           addition, the
Administrator may at any time amend the Plan to make           administrative changes and
changes necessary to comply with applicable law.  

        (b)    Termination.
The Board may terminate the Plan in accordance with Treasury           Regulations
1.409A-3(i). Upon termination of the Plan, any deferral elections           then in
effect shall be cancelled, as provided in such rules.  

        Section
9.6.    Administrative Expenses. Costs of establishing and
administering the Plan will be paid by the Company and participating subsidiaries.  

        Section
9.7.    Successors and Assigns. This Plan shall be binding
upon and inure to the benefit of the Company, its successors and assigns and the
Participants and their heirs, executors, administrators, and legal representatives.  

        Section
9.8.    Governing Law; Limitation on Actions; Dispute
Resolution. 

        (a)    Governing
Law. This Plan is intended to be a plan of deferred                compensation
maintained for a select group of management or highly compensated
               employees as that term is used in ERISA, and shall be interpreted so as to
               comply with the applicable requirements thereof. In all other respects,
the Plan                is to be construed and its validity determined according to the
laws of the                State of Wisconsin (without reference to conflict of law
principles thereof) to                the extent such laws are not preempted by federal
law.  

        (b)    Limitation
on Actions. Any action or other legal proceeding with respect                to the
Plan may be brought only after the claims and appeals procedures of
               Section 9.3 are exhausted and only within period ending on the earlier of
(1)                one year after the date claimant receives notice or deemed notice of a
denial                upon appeal under Section 9.3(b), or (2) the expiration of the
applicable                statute of limitations period under applicable federal law. Any
action or other                legal proceeding not adjudicated under ERISA must be
arbitrated in accordance                with the provisions of subsection (c).  

        (c)    Arbitration.  

	 	
(1)    Application.
Notwithstanding any employee agreement in effect between a                Participant and
the Company or any Affiliate, if a Participant or Beneficiary                brings a
claim that relates to benefits under this Plan that is not covered                under
ERISA, and regardless of the basis of the claim (including but not limited
               to, actions under Title VII, wrongful discharge, breach of employment
agreement,                etc.), such claim shall be settled by final binding arbitration
in accordance                with the rules of the American Arbitration Association (“AAA”)
and                judgment upon the award rendered by the arbitrator may be entered in
any court                having jurisdiction thereof.  

20 

	 	
(2)    Initiation
of Action. Arbitration must be initiated by serving or mailing                a
written notice of the complaint to the other party. Normally, such written
               notice should be provided the other party within one year (365 days) after
the                day the complaining party first knew or should have known of the
events giving                rise to the complaint. However, this time frame may be
extended if the                applicable statute of limitation provides for a longer
period of time. If the                complaint is not properly submitted within the
appropriate time frame, all                rights and claims that the complaining party
has or may have against the other                party shall be waived and void. Any
notice sent to the Company shall be                delivered to:  

	 	
Office
of General Counsel
Oshkosh Corporation
2307 Oregon Street
P.O. Box 2566
Oshkosh, WI 54903-2566 

	 	        The
notice must identify and describe the nature of all complaints asserted and the facts upon
which such complaints are based. Notice will be deemed given according to the date of any
postmark or the date of time of any personal delivery. 

	 	
(3)    Compliance
with Personnel Policies. Before proceeding to arbitration on a
               complaint, the Participant or Beneficiary must initiate and participate in
any                complaint resolution procedure identified in the Company’s or
               Affiliate’s personnel policies. If the claimant has not initiated the
               complaint resolution procedure before initiating arbitration on a
complaint, the                initiation of the arbitration shall be deemed to begin the
complaint resolution                procedure. No arbitration hearing shall be held on a
complaint until any                applicable complaint resolution procedure has been
completed.  

	 	
(4)    Rules
of Arbitration. All arbitration will be conducted by a single
               arbitrator according to the Employment Dispute Arbitration Rules of the
AAA. The                arbitrator will have authority to award any remedy or relief that
a court of                competent jurisdiction could order or grant including, without
limitation,                specific performance of any obligation created under policy,
the awarding of                punitive damages, the issuance of any injunction, costs
and attorney’s fees                to the extent permitted by law, or the imposition
of sanctions for abuse of the                arbitration process. The arbitrator’s
award must be rendered in a writing                that sets forth the essential findings
and conclusions on which the                arbitrator’s award is based.  

21 

	 	
(5)    Representation
and Costs. Each party may be represented in the                arbitration by an
attorney or other representative selected by the party. The                Company or
Affiliate shall be responsible for its own costs, the AAA filing fee                and
all other fees, costs and expenses of the arbitrator and AAA for
               administering the arbitration. The claimant shall be responsible for his
               attorney’s or representative’s fees, if any. However, if any
party                prevails on a statutory claim which allows the prevailing party
costs and/or                attorneys’ fees, the arbitrator may award costs and
reasonable                attorneys’ fees as provided by such statute.  

	 	
(6)    Discovery;
Location; Rules of Evidence. Discovery will be allowed to the                same
extent afforded under the Federal Rules of Civil Procedure. Arbitration
               will be held at a location selected by the Company. AAA rules
notwithstanding,                the admissibility of evidence offered at the arbitration
shall be determined by                the arbitrator who shall be the judge of its
materiality and relevance. Legal                rules of evidence will not be
controlling, and the standard for admissibility of                evidence will generally
be whether it is the type of information that                responsible people rely upon
in making important decisions.  

	 	
(7)    Confidentiality.
The existence, content or results of any arbitration may                not be disclosed
by a party or arbitrator without the prior written consent of                both
parties. Witnesses who are not a party to the arbitration shall be excluded
               from the hearing except to testify.  

		
		OSHKOSH CORPORATION
	

 	By:_____________________________
	
 	Its:_____________________________

22 

Appendix 1 

See Predecessor Plan 

23 

Appendix 2 

Regulations
Incorporated by Reference 

Treasury Regulation
1.409A-1(h) 

        (h)       Separation
from service— 

        (1)       Employees—In
general. An employee separates from service with the           employer if the
employee dies, retires, or otherwise has a termination of           employment with the
employer. However, for purposes of this paragraph (h)(1),           the employment
relationship is treated as continuing intact while the individual           is on
military leave, sick leave, or other bona fide leave of absence if the           period
of such leave does not exceed six months, or if longer, so long as the
          individual retains a right to reemployment with the service recipient under an
          applicable statute or by contract. For purposes of this paragraph (h)(1), a
          leave of absence constitutes a bona fide leave of absence only if there is a
          reasonable expectation that the employee will return to perform services for
the           employer. If the period of leave exceeds six months and the individual does
not           retain a right to reemployment under an applicable statute or by contract,
the           employment relationship is deemed to terminate on the first date
immediately           following such six-month period. Notwithstanding the foregoing,
where a leave of           absence is due to any medically determinable physical or
mental impairment that           can be expected to result in death or can be expected to
last for a continuous           period of not less than six months, where such impairment
causes the employee to           be unable to perform the duties of his or her position
of employment or any           substantially similar position of employment, a 29-month
period of absence may           be substituted for such six-month period.  

24 

        (ii)       Termination
of employment. Whether a termination of employment has           occurred is
determined based on whether the facts and circumstances indicate           that the
employer and employee reasonably anticipated that no further services           would be
performed after a certain date or that the level of bona fide services           the
employee would perform after such date (whether as an employee or as an
          independent contractor) would permanently decrease to no more than 20 percent
of           the average level of bona fide services performed (whether as an employee or
an           independent contractor) over the immediately preceding 36-month period (or
the           full period of services to the employer if the employee has been providing
          services to the employer less than 36 months). Facts and circumstances to be
          considered in making this determination include, but are not limited to,
whether           the employee continues to be treated as an employee for other purposes
(such as           continuation of salary and participation in employee benefit
programs), whether           similarly situated service providers have been treated
consistently, and whether           the employee is permitted, and realistically
available, to perform services for           other service recipients in the same line of
business. An employee is presumed           to have separated from service where the
level of bona fide services performed           decreases to a level equal to 20 percent
or less of the average level of           services performed by the employee during the
immediately preceding 36-month           period. An employee will be presumed not to have
separated from service where           the level of bona fide services performed
continues at a level that is 50           percent or more of the average level of service
performed by the employee during           the immediately preceding 36-month period. No
presumption applies to a decrease           in the level of bona fide services performed
to a level that is more than 20           percent and less than 50 percent of the average
level of bona fide services           performed during the immediately preceding 36-month
period. The presumption is           rebuttable by demonstrating that the employer and
the employee reasonably           anticipated that as of a certain date the level of bona
fide services would be           reduced permanently to a level less than or equal to 20
percent of the average           level of bona fide services provided during the
immediately preceding 36-month           period or full period of services provided to
the employer if the employee has           been providing services to the service
recipient for a period of less than 36           months (or that the level of bona fide
services would not be so reduced). For           example, an employee may demonstrate
that the employer and employee reasonably           anticipated that the employee would
cease providing services, but that, after           the original cessation of services,
business circumstances such as termination           of the employee’s replacement
caused the employee to return to employment.           Although the employee’s
return to employment may cause the employee to be           presumed to have continued in
employment because the employee is providing           services at a rate equal to the
rate at which the employee was providing           services before the termination of
employment, the facts and circumstances in           this case would demonstrate that at
the time the employee originally ceased to           provide services, the employee and
the service recipient reasonably anticipated           that the employee would not
provide services in the future. Notwithstanding the           foregoing provisions of
this paragraph (h)(1)(ii), a plan may treat another           level of reasonably
anticipated permanent reduction in the level of bona fide           services as a
separation from service, provided that the level of reduction           required must be
designated in writing as a specific percentage, and the           reasonably anticipated
reduced level of bona fide services must be greater than           20 percent but less
than 50 percent of the average level of bona fide services           provided in the
immediately preceding 36 months. The plan must specify the           definition of
separation from service on or before the date on which a           separation from
service is designated as a time of payment of the applicable           amount deferred,
and once designated, any change to the definition of separation           from service
with respect to such amount deferred will be subject to the rules           regarding
subsequent deferrals and the acceleration of payments. For purposes of           this
paragraph (h)(1)(ii), for periods during which an employee is on a paid           bona
fide leave of absence (as defined in paragraph (h)(1)(i) of this section)           and
has not otherwise terminated employment pursuant to paragraph (h)(1)(i) of           this
section, the employee is treated as providing bona fide services at a level
          equal to the level of services that the employee would have been required to
          perform to receive the compensation paid with respect to such leave of absence.
          Periods during which an employee is on an unpaid bona fide leave of absence (as
          defined in paragraph (h)(1)(i) of this section) and has not otherwise
terminated           employment pursuant to paragraph (h)(1)(i) of this section, are
disregarded for           purposes of this paragraph (h)(1)(ii) (including for purposes
of determining the           applicable 36-month (or shorter) period).  

        (2)       Independent
contractors— 

        (i)       In
general. An independent contractor is considered to have a separation           from
service with the service recipient upon the expiration of the contract (or           in
the case of more than one contract, all contracts) under which services are
          performed for the service recipient if the expiration constitutes a good-faith
          and complete termination of the contractual relationship. An expiration does
not           constitute a good faith and complete termination of the contractual
relationship           if the service recipient anticipates a renewal of a contractual
relationship or           the independent contractor becoming an employee. For this
purpose, a service           recipient is considered to anticipate the renewal of the
contractual           relationship with an independent contractor if it intends to
contract again for           the services provided under the expired contract, and
neither the service           recipient nor the independent contractor has eliminated the
independent           contractor as a possible provider of services under any such new
contract.           Further, a service recipient is considered to intend to contract
again for the           services provided under an expired contract if the service
recipient’s           doing so is conditioned only upon incurring a need for the
services, the           availability of funds, or both.  

25 

        (ii)       Special
rule. Notwithstanding paragraph (h)(2)(i) of this section, a plan           is
considered to satisfy the requirement described in §1.409A-3(a)(1) with
          respect to an amount payable upon a separation from service if, with respect to
          amounts payable to a service provider who is an independent contractor, the
plan           provides that — 

        (A)                 No
amount will be paid to the service provider before a date at least 12 months
          after the day on which the contract expires under which the service provider
          performs services for the service recipient (or, in the case of more than one
          contract, all such contracts expire); and  

        (B)                 No
amount payable to the service provider on that date will be paid to the           service
provider if, after the expiration of the contract (or contracts) and           before
that date, the service provider performs services for the service           recipient as
an independent contractor or an employee.  

        (3)       Definition
of service recipient and employer. For purposes of this           paragraph (h), the
term service recipient or employer means the           service recipient as
defined in paragraph (g) of this section, provided that in           applying section
1563(a)(1), (2), and (3) for purposes of determining a           controlled group of
corporations under section 414(b), the language “at           least 50 percent” is
used instead of “at least 80 percent” each           place it appears in
section 1563(a)(1), (2), and (3), and in applying           §1.414(c)-2 for purposes
of determining trades or businesses (whether or           not incorporated) that are
under common control for purposes of section 414(c),           “at least 50 percent” is
used instead of “at least 80           percent” each place it appears in §1.414(c)-2.
A plan may provide with           respect to a deferral of compensation under the plan
that in applying sections           1563(a)(1), (2), and (3) for purposes of determining
a controlled group of           corporations under section 414(b), another defined
percentage greater than 50           percent, but not greater than 80 percent, is used
instead of “at least 80           percent” at each place it appears in sections
1563(a)(1), (2), and (3), and           in applying §1.414(c)-2 for purposes of
determining trades or businesses           (whether or not incorporated) that are under
common control for purposes of           section 414(c), another defined percentage
greater than 50 percent, but not           greater than 80 percent, is used instead of
“at least 80 percent” at           each place it appears in §1.414(c)-2.
In addition, where the use of such           definition of service recipient for purposes
of determining a separation from           service is based upon legitimate business
criteria, the plan may provide that           for purposes of a deferral of compensation
under the plan that in applying           sections 1563(a)(1), (2), and (3) for purposes
of determining a controlled group           of corporations under section 414(b), the
language “at least 20           percent” or another defined percentage not less
than 20 percent but not           greater than 50 percent is used instead of “at
least 80 percent” at           each place it appears in sections 1563(a)(1), (2),
and (3), and in applying           §1.414(c)-2 for purposes of determining trades or
businesses (whether or           not incorporated) that are under common control for
purposes of section 414(c),           the language “at least 20 percent” or
another defined percentage not           less than 20 percent but not greater than 50
percent is used instead of “at           least 80 percent” at each place it
appears in §1.414(c)-2. Where a           definition of service recipient or
employer other than the definition provided           in the first sentence of this
paragraph (h)(3) (the 50 percent standard) is           used, the plan must designate in
writing the alternate definition no later than           the last date at which the time
and form of payment of the applicable amount           deferred must be elected in
accordance with §1.409A-2(a), and any change in           the definition for such
amounts deferred will constitute a change in the time           and form of payment
subject to the rules governing subsequent deferral elections           under §1.409A-2(b)
and the acceleration of payments under           §1.409A-3(j).  

26 

        (4)       Asset
purchase transactions. Where as part of a sale or other disposition           of
assets by one service recipient (seller) to an unrelated service recipient
          (buyer), a service provider of the seller would otherwise experience a
          separation from service with the seller, the seller and the buyer may retain
the           discretion to specify, and may specify, whether a service provider
providing           services to the seller immediately before the asset purchase
transaction and           providing services to the buyer after and in connection with
the asset purchase           transaction has experienced a separation from service for
purposes of this           paragraph (h), provided that the asset purchase transaction
results from bona           fide, arm’s length negotiations, all service providers
providing services           to the seller immediately before the asset purchase
transaction and providing           services to the buyer after and in connection with
the asset purchase           transaction are treated consistently (regardless of position
at the seller) for           purposes of applying the provisions of any nonqualified
deferred compensation           plan, and such treatment is specified in writing no later
than the closing date           of the asset purchase transaction. For purposes of this
paragraph (h)(4),           references to a sale or other disposition of assets, or an
asset purchase           transaction, refer only to a transfer of substantial assets,
such as a plant or           division or substantially all the assets of a trade or
business. For purposes of           this paragraph (h)(4), whether a service recipient is
related to another service           recipient is determined under the rules provided in
paragraph (f)(2)(ii) of this           section.  

        (5)       Dual
status. If a service provider provides services both as an employee           of a
service recipient and as an independent contractor of a service recipient,           the
service provider must separate from service both as an employee and as an
          independent contractor to be treated as having separated from service. If a
          service provider ceases providing services as an independent contractor and
          begins providing services as an employee, or ceases providing services as an
          employee and begins providing services as an independent contractor, the
service           provider will not be considered to have a separation from service until
the           service provider has ceased providing services in both capacities.
          Notwithstanding the foregoing, if a service provider provides services both as
          an employee of a service recipient and a member of the board of directors of a
          corporate service recipient (or an analogous position with respect to a
          non-corporate service recipient), the services provided as a director are not
          taken into account in determining whether the service provider has a separation
          from service as an employee for purposes of a nonqualified deferred
compensation           plan in which the service provider participates as an employee
that is not           aggregated with any plan in which the service provider participates
as a           director under paragraph (c)(2)(ii) of this section. In addition, if a
service           provider provides services both as an employee of a service recipient
and a           member of the board of directors of a corporate service recipient (or an
          analogous position with respect to a non-corporate service recipient), the
          services provided as an employee are not taken into account in determining
          whether the service provider has a separation from service as a director for
          purposes of a nonqualified deferred compensation plan in which the service
          provider participates as a director that is not aggregated with any plan in
          which the service provider participates as an employee under paragraph
          (c)(2)(ii) of this section.  

27 

        (6)       Collectively
bargained plans covering multiple employers. Notwithstanding           the foregoing
provisions of this paragraph (h), to the extent a plan is           established pursuant
to a bona fide collective bargaining agreement covering           services performed by
employees for multiple employers, such plan may define a           separation from
service in a reasonable manner that treats the employee as not           having separated
from service during periods in which the employee is not           providing services but
is available to perform services covered by the           collective bargaining agreement
for one or more employers, provided that the           definition also provides that the
employee must be deemed to have separated from           service at a specified date not
later than the end of any period of at least 12           consecutive months during which
the employee has not provided any services           covered by the collective bargaining
agreement to any participating employer.           This paragraph (h)(6) applies only if
the definition of separation from service           provided by the collective bargaining
agreement was the subject of arm’s           length negotiations between employee
representatives and two or more employers,           the agreement between employee
representatives and such employers satisfies           section 7701(a)(46), and the
circumstances surrounding the agreement evidence           good faith bargaining between
adverse parties over such definition.  

Treasury Regulation
1.409A-3(a)(5) 

        (5)                 Change
in the ownership or effective control of a corporation, or a change in           the
ownership of a substantial portion of the assets of a corporation— 

        (i)       In
general. Pursuant to section 409A(a)(2)(A)(v), a plan may permit a           payment
upon the occurrence of a change in the ownership of the corporation (as           defined
in paragraph (i)(5)(v) of this section), a change in effective control           of the
corporation (as defined in paragraph (i)(5)(vi) of this section), or a           change
in the ownership of a substantial portion of the assets of the           corporation (as
defined in paragraph (i)(5)(vii) of this section) (collectively           referred to as
a change in control event). To qualify as a change in control           event, the
occurrence of the event must be objectively determinable and any           requirement
that any other person or group, such as a plan administrator or           compensation
committee, certify the occurrence of a change in control event must           be strictly
ministerial and not involve any discretionary authority. The plan           may provide
for a payment on a particular type or types of change in control           events, and
need not provide for a payment on all such events, provided that           each event
upon which a payment is provided qualifies as a change in control           event. For
rules regarding the ability of the service recipient to terminate the           plan and
pay amounts of deferred compensation upon a change in control event,           see
paragraph (j)(4)(ix)(B) of this section.  

        (ii)       Identification
of relevant corporation—(A) In general. To           constitute a change
in control event with respect to the service provider, the           change in control
event must relate to — 

        (1)                 The
corporation for whom the service provider is performing services at the time           of
the change in control event;  

        (2)                 The
corporation that is liable for the payment of the deferred compensation (or           all
corporations liable for the payment if more than one corporation is liable)           but
only if either the deferred compensation is attributable to the performance           of
service by the service provider for such corporation (or corporations) or           there
is a bona fide business purpose for such corporation or corporations to be
          liable for such payment and, in either case, no significant purpose of making
          such corporation or corporations liable for such payment is the avoidance of
          Federal income tax; or  

28 

        (3)                 A
corporation that is a majority shareholder of a corporation identified in
          paragraph (i)(5)(ii)(A)(1) or (2) of this section, or any
          corporation in a chain of corporations in which each corporation is a majority
          shareholder of another corporation in the chain, ending in a corporation
          identified in paragraph (i)(5)(ii)(A)(1) or (2) of this section.  

        (B)       Majority
shareholder. For purposes of this paragraph (i)(5)(ii), a           majority
shareholder is a shareholder owning more than 50 percent of the total           fair
market value and total voting power of such corporation.  

        (C)       Example.
The following example illustrates the rules of this paragraph           (i)(5)(ii):  

        Example.         Corporation
A is a majority shareholder of Corporation B, which is a majority           shareholder
of Corporation C. A change in ownership of Corporation B constitutes           a change
in control event to service providers performing services for           Corporation B or
Corporation C, and to service providers for which Corporation B           or Corporation
C is solely liable for payments under the plan (for example,           former employees),
but is not a change in control event as to Corporation A or           any other
corporation of which Corporation A is a majority shareholder unless           the sale
constitutes a change in the ownership of a substantial portion of           Corporation A’s
assets (see paragraph (i)(5)(vii) of this section).  

        (iii)       Attribution
of stock ownership. For purposes of paragraph (i)(5) of this           section,
section 318(a) applies to determine stock ownership. Stock underlying a           vested
option is considered owned by the individual who holds the vested option           (and
the stock underlying an unvested option is not considered owned by the
          individual who holds the unvested option). For purposes of the preceding
          sentence, however, if a vested option is exercisable for stock that is not
          substantially vested (as defined by §1.83-3(b) and (j)), the stock
          underlying the option is not treated as owned by the individual who holds the
          option.  

        (iv)       Special
rules for certain delayed payments pursuant to a change in control           event—(A)
Certain transaction-based compensation. Payments of           compensation related
to a change in control event described in paragraph           (i)(5)(v) of this section
(change in the ownership of a corporation) or           paragraph (i)(5)(vii) of this
section (change in the ownership of a substantial           portion of a corporation’s
assets), that occur because a service recipient           purchases its stock held by the
service provider or because the service           recipient or a third party purchases a
stock right held by a service provider,           or that are calculated by reference to
the value of stock of the service           recipient (collectively, transaction-based
compensation), may be treated as paid           at a designated date or pursuant to a
payment schedule that complies with the           requirements of section 409A if the
transaction-based compensation is paid on           the same schedule and under the same
terms and conditions as apply to payments           to shareholders generally with
respect to stock of the service recipient           pursuant to a change in control event
described in paragraph (i)(5)(v) of this           section (change in the ownership of a
corporation) or as apply to payments to           the service recipient pursuant to a
change in control event described in           paragraph (i)(5)(vii) of this section
(change in the ownership of a substantial           portion of a corporation’s
assets), and to the extent that the           transaction-based compensation is paid not
later than five years after the           change in control event, the payment of such
compensation will not violate the           initial or subsequent deferral election rules
set out in §1.409A-2(a) and           (b) solely as a result of such
transaction-based compensation being paid           pursuant to such schedule and terms
and conditions. If before and in connection           with a change in control event
described in paragraph (i)(5)(v) or (i)(5)(vii)           of this section,
transaction-based compensation that would otherwise be payable           as a result of
such event is made subject to a condition on payment that           constitutes a
substantial risk of forfeiture (as defined in §1.409A-1(d),           without regard
to the provisions of that section under which additions or           extensions of
forfeiture conditions are disregarded) and the transaction-based           compensation
is payable under the same terms and conditions as apply to payments           made to
shareholders generally with respect to stock of the service recipient           pursuant
to a change in control event described in paragraph (i)(5)(v) of this           section
or to payments to the service recipient pursuant to a change in control           event
described in paragraph (i)(5)(vii) of this section, for purposes of           determining
whether such transaction-based compensation is a short-term deferral           the
requirements of §1.409A-1(b)(4) are applied as if the legally binding
          right to such transaction-based compensation arose on the date that it became
          subject to such substantial risk of forfeiture.  

29 

        (B)       Certain
nonvested compensation. Notwithstanding the provisions of           §1.409A-1(d)
(definition of a substantial risk of forfeiture) that           disregard the extension
or modification of a condition for purposes of           determining whether a condition
on payment constitutes a substantial risk of           forfeiture, a condition that is a
substantial risk of forfeiture that otherwise           would lapse as a result of a
change in control event described in paragraph           (i)(5)(v) or (i)(5)(vii) of this
section may be extended or modified before and           in connection with such event to
provide for a condition on payment that will           not lapse as a result of such
change in control event, and such extended or           modified condition will be
treated as continuing to subject the amount to a           substantial risk of
forfeiture, provided that the transaction constituting the           change in control
event is a bona fide arm’s length transaction between the           service
recipient or its shareholders and one or more parties who are unrelated           to the
service recipient and service provider (applying the rules of           §1.409A-1(f)(2)(ii))
and the modified or extended condition to which the           payment is subject would
otherwise be treated as a substantial risk of           forfeiture under §1.409A-1(d)
(without regard to the provisions           disregarding additions or extensions of
forfeiture conditions). In such a case,           the continued application of a fixed
schedule of payments based upon the lapse           of the substantial risk of
forfeiture, so that payments commence upon the lapse           of the modified or
extended condition on payment, will not be treated as a           change in the fixed
schedule of payments for purposes of §1.409A-2(b)           (subsequent deferral
elections) or paragraph (j) of this section (prohibition on           the acceleration of
payments).  

        (v)       Change
in the ownership of a corporation—(A) In general.           Except as
provided in paragraph (i)(5)(vi)(C) of this section, a change in the           ownership
of a corporation occurs on the date that any one person, or more than           one
person acting as a group (as defined in paragraph (i)(5)(v)(B) of this
          section), acquires ownership of stock of the corporation that, together with
          stock held by such person or group, constitutes more than 50 percent of the
          total fair market value or total voting power of the stock of such corporation.
          A nonqualified deferred compensation plan may provide that amounts payable upon
          a change in the ownership of a corporation will be paid only if the conditions
          in the preceding sentence are satisfied but substituting a percentage specified
          in the plan that is higher than 50 percent for the words “50 percent”          in
the preceding sentence, but only if the provision is set forth in the plan no
          later than the date by which the time and form of payment must be established
          under §1.409A-2. However, if any one person, or more than one person
acting           as a group, is considered to own more than 50 percent of the total fair
market           value or total voting power of the stock of a corporation (or such
higher           percentage specified in accordance with the preceding sentence), the
acquisition           of additional stock by the same person or persons is not considered
to cause a           change in the ownership of the corporation (or to cause a change in
the           effective control of the corporation (within the meaning of paragraph
(i)(5)(vi)           of this section)). An increase in the percentage of stock owned by
any one           person, or persons acting as a group, as a result of a transaction in
which the           corporation acquires its stock in exchange for property will be
treated as an           acquisition of stock for purposes of this section. This section
applies only           when there is a transfer of stock of a corporation (or issuance of
stock of a           corporation) and stock in such corporation remains outstanding after
the           transaction (see paragraph (i)(5)(vii) of this section for rules regarding
the           transfer of assets of a corporation). See §1.280G-1, Q&A-27(d), Example
1, Example 2, Example 5, and Example 6.  

30 

        (B)       Persons
acting as a group. For purposes of paragraph (i)(5)(v)(A) of this           section,
persons will not be considered to be acting as a group solely because           they
purchase or own stock of the same corporation at the same time, or as a           result
of the same public offering. However, persons will be considered to be           acting
as a group if they are owners of a corporation that enters into a merger,
          consolidation, purchase or acquisition of stock, or similar business
transaction           with the corporation. If a person, including an entity, owns stock
in both           corporations that enter into a merger, consolidation, purchase or
acquisition of           stock, or similar transaction, such shareholder is considered to
be acting as a           group with other shareholders only with respect to the ownership
in that           corporation before the transaction giving rise to the change and not
with           respect to the ownership interest in the other corporation. See §1.280G-1,
          Q&A-27(d), Example 3 and Example 4.  

        (vi)       Change
in the effective control of a corporation—(A) In           general.
Notwithstanding that a corporation has not undergone a change in           ownership
under paragraph (i)(5)(v) of this section, a change in the effective           control of
the corporation occurs only on either of the following dates:  

        (1)                 The
date any one person, or more than one person acting as a group (as           determined
under paragraph (i)(5)(v)(B) of this section), acquires (or has           acquired during
the 12-month period ending on the date of the most recent           acquisition by such
person or persons) ownership of stock of the corporation           possessing 30 percent
or more of the total voting power of the stock of such           corporation. A
nonqualified deferred compensation plan may provide that amounts           payable upon
an effective change in control of a corporation will be paid only           if the
conditions in the preceding sentence are satisfied but substituting a
          percentage specified in the plan that is higher than 30 percent for the word
          “30 percent” in the preceding sentence, but only if the percentage is
          set forth in the plan no later than the date by which the time and form of
          payment must be established under §1.409A-2).  

        (2)                 The
date a majority of members of the corporation’s board of directors is
          replaced during any 12-month period by directors whose appointment or election
          is not endorsed by a majority of the members of the corporation’s board of
          directors before the date of the appointment or election, provided that for
          purposes of this paragraph (i)(5)(vi)(A) the term corporation refers
          solely to the relevant corporation identified in paragraph (i)(5)(ii) of this
          section for which no other corporation is a majority shareholder for purposes
of           that paragraph. For example, if Corporation A is a publicly held corporation
          with no majority shareholder, and Corporation A is the majority shareholder of
          Corporation B, which is the majority shareholder of Corporation C, the term corporation for
purposes of this paragraph (i)(5)(vi)(A)(2) would           refer solely to
Corporation A. A nonqualified deferred compensation plan may           provide that
amounts payable upon a change in the effective control of a           corporation will be
paid only if the conditions in the first sentence of this           paragraph are
satisfied substituting a portion of the members of the           corporation’s board
of directors that is higher than the words “a           majority of the members of
the corporation’s board of directors” in           the first sentence of this
paragraph, but only if the higher portion is set           forth in the plan no later
than the date by which the time and form of payment           must be established under
§1.409A-2(a)).  

31 

        (B)       Multiple
change in control events. A change in effective control may           occur in a
transaction in which one of the two corporations involved in the           transaction
has a change in control event under paragraph (i)(5)(v) or           (i)(5)(vii) of this
section. Thus, for example, assume Corporation P transfers           more than 40 percent
of the total gross fair market value of its assets to           Corporation O in exchange
for 35 percent of O’s stock. P has undergone a           change in ownership of a
substantial portion of its assets under paragraph           (i)(5)(vii) of this section
and O has a change in effective control under this           paragraph (i)(5)(vi).  

        (C)       Acquisition
of additional control. If any one person, or more than one           person acting as
a group, is considered to effectively control a corporation           (within the meaning
of this paragraph (i)(5)(vi)), the acquisition of additional           control of the
corporation by the same person or persons is not considered to           cause a change
in the effective control of the corporation (or to cause a change           in the
ownership of the corporation within the meaning of paragraph (i)(5)(v) of           this
section).  

        (D)       Persons
acting as a group. Persons will not be considered to be acting as           a group
solely because they purchase or own stock of the same corporation at the           same
time, or as a result of the same public offering. However, persons will be
          considered to be acting as a group if they are owners of a corporation that
          enters into a merger, consolidation, purchase or acquisition of stock, or
          similar business transaction with the corporation. If a person, including an
          entity, owns stock in both corporations that enter into a merger,
consolidation,           purchase or acquisition of stock, or similar transaction, such
shareholder is           considered to be acting as a group with other shareholders in a
corporation only           with respect to the ownership in that corporation before the
transaction giving           rise to the change and not with respect to the ownership
interest in the other           corporation. See §1.280G-1, Q&A-27(d), Example
4.  

        (vii)       Change
in the ownership of a substantial portion of a corporation’s           assets—(A)
In general. A change in the ownership of a           substantial portion of a
corporation’s assets occurs on the date that any           one person, or more than
one person acting as a group (as determined in           paragraph (i)(5)(v)(B) of this
section), acquires (or has acquired during the           12-month period ending on the
date of the most recent acquisition by such person           or persons) assets from the
corporation that have a total gross fair market           value equal to or more than 40
percent of the total gross fair market value of           all of the assets of the
corporation immediately before such acquisition or           acquisitions (or such higher
amount specified by the plan no later than the date           by which the time and form
of payment must be established under §1.409A-2).           For this purpose, gross
fair market value means the value of the assets of the           corporation, or the
value of the assets being disposed of, determined without           regard to any
liabilities associated with such assets.  

32 

        (B)       Transfers
to a related person—(1) There is no change in           control event
under this paragraph (i)(5)(vii) when there is a transfer to an           entity that is
controlled by the shareholders of the transferring corporation           immediately
after the transfer, as provided in this paragraph (i)(5)(vii)(B). A           transfer of
assets by a corporation is not treated as a change in the ownership           of such
assets if the assets are transferred to — 

        (i)                 A
shareholder of the corporation (immediately before the asset transfer) in
          exchange for or with respect to its stock;  

        (ii)                 An
entity, 50 percent or more of the total value or voting power of which is
          owned, directly or indirectly, by the corporation;  

        (iii)                 A
person, or more than one person acting as a group, that owns, directly or
          indirectly, 50 percent or more of the total value or voting power of all the
          outstanding stock of the corporation; or  

        (iv)                 An
entity, at least 50 percent of the total value or voting power of which is
          owned, directly or indirectly, by a person described in paragraph
          (i)(5)(vii)(B)(1)(iii) of this section.  

        (2)                 For
purposes of this paragraph (i)(5)(vii)(B) and except as otherwise provided           in
this paragraph (i), a person’s status is determined immediately after           the
transfer of the assets. For example, a transfer to a corporation in which           the
transferor corporation has no ownership interest before the transaction, but
          that is a majority-owned subsidiary of the transferor corporation after the
          transaction is not treated as a change in the ownership of the assets of the
          transferor corporation.  

        (C)       Persons
acting as a group. Persons will not be considered to be acting as           a group
solely because they purchase assets of the same corporation at the same           time.
However, persons will be considered to be acting as a group if they are           owners
of a corporation that enters into a merger, consolidation, purchase or
          acquisition of assets, or similar business transaction with the corporation. If
          a person, including an entity shareholder, owns stock in both corporations that
          enter into a merger, consolidation, purchase or acquisition of assets, or
          similar transaction, such shareholder is considered to be acting as a group
with           other shareholders in a corporation only to the extent of the ownership in
that           corporation before the transaction giving rise to the change and not with
          respect to the ownership interest in the other corporation. See §1.280G-1,
          Q&A-27(d), Example 4.  

        (6)       Certain
back-to-back arrangements— 

        (i)       In
general. This paragraph (i)(6) applies where a service provider is
          providing services to a service recipient (the intermediate service recipient),
          who in turn is providing services to another service recipient (the ultimate
          service recipient), the services provided by the service provider to the
          intermediate service recipient are closely related to the services provided by
          the intermediate service recipient to the ultimate service recipient, there is
a           nonqualified deferred compensation plan providing for payments by the
ultimate           service recipient to the intermediate service recipient (the ultimate
service           recipient plan), there is a nonqualified deferred compensation plan or
other           agreement, method, program, or other arrangement providing for payments
of           compensation by the intermediate service recipient to the service provider
(the           intermediate service recipient plan), and the intermediate service
recipient           plan provides for a payment upon the occurrence of an event described
in           paragraph (a)(1), (2), (3), (5), or (6) of this section. In such a case,
          notwithstanding the generally applicable limits on payments in paragraph (a) of
          this section, the ultimate service recipient plan may provide for a payment to
          the intermediate service recipient upon the occurrence of a payment event under
          the intermediate service recipient plan described in paragraph (a)(1), (2),
(3),           (5), or (6) of this section if the time and form of payment is defined as
the           same time and form of payment provided under the intermediate service
recipient           plan, the amount of the payment under the ultimate service recipient
plan does           not exceed the amount of the payment under the intermediate service
recipient           plan, and the ultimate service recipient plan and the intermediate
service           recipient plan otherwise satisfy the requirements of section 409A
(regardless of           whether such plan is subject to section 409A).  

33 

Treasury Regulation
1.409A-3(i) 

        (ix)       Plan
terminations and liquidations. A plan may provide for the           acceleration of
the time and form of a payment, or a payment under such plan may           be made, where
the acceleration of the payment is made pursuant to a termination           and
liquidation of the plan in accordance with one of the following:  

        (A)                 The
service recipient’s termination and liquidation of the plan within 12
          months of a corporate dissolution taxed under section 331, or with the approval
          of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A), provided that
          the amounts deferred under the plan are included in the participants’ gross
          incomes in the latest of the following years (or, if earlier, the taxable year
          in which the amount is actually or constructively received).  

        (1)                 The
calendar year in which the plan termination and liquidation occurs.  

        (2)                 The
first calendar year in which the amount is no longer subject to a           substantial
risk of forfeiture.  

        (3)                 The
first calendar year in which the payment is administratively practicable.  

        (B)                 The
service recipient’s termination and liquidation of the plan pursuant to
          irrevocable action taken by the service recipient within the 30 days preceding
          or the 12 months following a change in control event (as defined in paragraph
          (i)(5) of this section), provided that this paragraph will only apply to a
          payment under a plan if all agreements, methods, programs, and other
          arrangements sponsored by the service recipient immediately after the time of
          the change in control event with respect to which deferrals of compensation are
          treated as having been deferred under a single plan under §1.409A-1(c)(2)
          are terminated and liquidated with respect to each participant that experienced
          the change in control event, so that under the terms of the termination and
          liquidation all such participants are required to receive all amounts of
          compensation deferred under the terminated agreements, methods, programs, and
          other arrangements within 12 months of the date the service recipient
          irrevocably takes all necessary action to terminate and liquidate the
          agreements, methods, programs, and other arrangements. Solely for purposes of
          this paragraph (j)(4)(ix)(B), the applicable service recipient with the
          discretion to liquidate and terminate the agreements, methods, programs, and
          other arrangements is the service recipient that is primarily liable
immediately           after the transaction for the payment of the deferred compensation.  

34 

        (C)                 The
service recipient’s termination and liquidation of the plan, provided           that
— 

        (1)                 The
termination and liquidation does not occur proximate to a downturn in the
          financial health of the service recipient;  

        (2)                 The
service recipient terminates and liquidates all agreements, methods,           programs,
and other arrangements sponsored by the service recipient that would           be
aggregated with any terminated and liquidated agreements, methods, programs,
          and other arrangements under §1.409A-1(c) if the same service provider had
          deferrals of compensation under all of the agreements, methods, programs, and
          other arrangements that are terminated and liquidated;  

        (3)                 No
payments in liquidation of the plan are made within 12 months of the date the
          service recipient takes all necessary action to irrevocably terminate and
          liquidate the plan other than payments that would be payable under the terms of
          the plan if the action to terminate and liquidate the plan had not occurred;  

        (4)                 All
payments are made within 24 months of the date the service recipient takes           all
necessary action to irrevocably terminate and liquidate the plan; and  

        (5)                 The
service recipient does not adopt a new plan that would be aggregated with           any
terminated and liquidated plan under §1.409A-1(c) if the same service
          provider participated in both plans, at any time within three years following
          the date the service recipient takes all necessary action to irrevocably
          terminate and liquidate the plan.  

        (D)                 Such
other events and conditions as the Commissioner may prescribe in generally
          applicable guidance published in the Internal Revenue Bulletin (see
          §601.601(d)(2) of this chapter).  

35

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