Document:

Prepared by R.R. Donnelley Financial -- BlackRock, Inc. Involuntary Deferred Compensation

  
 Exhibit 10.19 
  
 BLACKROCK, INC. INVOLUNTARY DEFERRED 
 COMPENSATION PLAN

  
 BlackRock, Inc. and its subsidiaries have established the BlackRock, Inc. Involuntary Deferred Compensation
Plan for the purpose of providing deferred compensation and retention incentives to a select group of management or highly compensated employees as described in Section 201(2) of the Employee Retirement Income Security Act of 1974, as amended.

  
 Article 1.    Definitions 
  

	1.1
	 
	Affiliate has the meaning set forth in Rule 12b-2 promulgated under Section 12 of the Exchange Act. 
 

  

	1.2
	 
	Board means the Board of Directors of BlackRock, Inc. 
 

  

	1.3
	 
	Bonus means the annual performance bonus payable by the Company or an Affiliate of the Company to a Participant in respect of a Plan Year. 

  

	1.4
	 
	Cause means the occurrence or existence of any of the following with respect to the Participant: (i) a material breach by the Participant of any written
policies of the Company or an Affiliate of the Company required by law or established to maintain compliance with applicable law; (ii) any act of fraud, misappropriation, dishonesty, embezzlement or similar conduct by the Participant against the
Company or an Affiliate of the Company or any client of the Company or an Affiliate of the Company; (iii) conviction (including a plea of nolo contendere) of the Participant for the commission of a felony that could, in the
Company’s reasonable judgment, impair the Participant ‘s ability to perform his or her duties or adversely affect the Company’s or any of its Affiliates’ businesses or reputations; or (iv) entry of any order against the
Participant by any governmental body having regulatory authority with respect to the Company’s or its Affiliate’s business, which order relates to or arises out of the Participant ‘s employment or service relationship with the Company
or an Affiliate of the Company. A determination of Cause may be made only by the Company’s chief executive officer and a majority of the members of the Management Committee (excluding the Participant, if applicable). 

  

	1.5
	 
	Code means the Internal Revenue Code of 1986, as it may from time to time be amended or supplemented. 
 

  

	1.6
	 
	Committee means the Company’s Management Committee. 
 

  

	1.7
	 
	Company means BlackRock, Inc., a corporation organized under the laws of Delaware, or any successor corporation. 
 

  

	1.8
	 
	Compensation means the salary and Bonus payable to an eligible individual by the Company or an Affiliate of the Company with respect to a Plan Year.

 

  

	1.9
	 
	Deferred Amount shall have the meaning ascribed to that term in Section 5.1. 
 

  

	1.10
	 
	Deferred Compensation Account means the book-keeping entry account maintained by the Company for each Participant that reflects Deferred Compensation
Amounts, Matching Contributions, Investment Income Amounts and adjustments (including distributions). 
 

  

	1.11
	 
	Deferred Compensation Amount means the percentage of the Bonus which may be mandatorily deferred under Section 2.1. 
 

 

	1.12
	 
	Disability means the Participant’s physical or mental incapacity constituting disability in accordance with the Company’s long-term disability
policy which in any event does or is reasonably expected to continue for at least 6 months, as determined by the Committee. 
 

  

	1.13
	 
	Employer means the Affiliate of the Company which employs the Participant. 
 

  

	1.14
	 
	Exchange Act means the Securities Exchange Act of 1934, as amended from time to time. 
 

  

	1.15
	 
	Investment Funds means the tracking investments that are from time to time offered under the Plan, as chosen in the sole discretion of the Committee.

 

  

	1.16
	 
	Investment Income Amount means any and all notional earnings (gains and/or losses) on Deferred Compensation Amounts and Matching Contributions during the
applicable vesting period set forth in Article 3. 
 

  

	1.17
	 
	Matching Contribution means the credit that may be made to a Participant’s Deferred Compensation Account by his or her Employer, as set forth in
Section 2.2. 
 

  

	1.18
	 
	Obsidian means The Obsidian Fund LLC. 
 

  

	1.19
	 
	Participant means a Managing Director or Director who: (i) is designated by the Committee as being eligible to participate in the Plan; (ii) is eligible
to receive a Bonus; (iii) is employed by the Company or an Affiliate of the Company on the date the entire Bonus would otherwise have been paid but for the deferral; and (iv) has Compensation in excess of $250,000. 
 

 

	1.20
	 
	Plan means the BlackRock, Inc. Involuntary Deferred Compensation Plan. 
 

  

	1.21
	 
	Plan Year means the calendar year, commencing with 2001. 
 

  

	1.22
	 
	Retirement shall have such meaning as the Committee shall determine from time to time. 
 

  

	1.23
	 
	Valuation Date means the last business day of each month, or such other date specified by the Committee. 
 

  

	1.24
	 
	Vested means a Participant has a nonforfeitable interest in a portion of his or her Deferred Compensation Account. 
 

 
 Article 2.    Deferred Amounts 
  

	2.1
	 
	General.    Each Plan Year up to 15 percent of a Participant’s Bonus may be mandatorily deferred under the Plan for a three-year
period. The Committee may vary the percentage of the mandatory deferral in subsequent Plan Years, subject to the 15 percent limitation. 
 

  

	2.2
	 
	Matching Contributions.    Each Plan Year, a Participant’s Employer may, but shall not be required to, credit to the
Participant’s Deferred Compensation Account a Matching Contribution. Unless otherwise determined by the Committee, the Matching Contribution made to a Participant’s Deferred Compensation Account shall be an amount equal to 20% of the
amount of the Participant’s Deferred Compensation Amount for the Plan Year. 
 

  

	2.3
	 
	Crediting of Deferred Compensation Amounts.    A Participant’s Deferred Compensation Amount and the corresponding Matching
Contribution shall be credited to the Participant’s Deferred Compensation Account at the time the mandatorily deferred portion of his or her Bonus for that Plan Year would otherwise have been paid. The amount credited to the Participant’s
Deferred Compensation Account shall be equal to the sum of the Deferred Compensation Amount and the amount of any corresponding Matching Contribution. Investment Income Amounts shall be credited and/or debited, as the case may be, to the
Participant’s Deferred Compensation Amount at each Valuation Date, or on such other basis as the Committee may determine. 
 

  
 Article 3.    Vesting 
  

	2.4
	 
	Deferred Compensation Amount.    Subject to Sections 3.3 and 6.2, a Participant will become Vested with respect to his or her
Deferred Compensation Amount mandatorily deferred with respect to a Plan Year in accordance with the following schedule: 
 

  
 
	 Anniversary of Date of Crediting
 	 	 Percentage Vested
 
	 
	 1st
 	 	 33.3%
 
	 2nd
 	 	 66.6%
 
	 3rd
 	 	 100%
 

 
  
 The Vested portion of a Participant’s Deferred Compensation
Amount shall be appropriately reduced to reflect any negative return associated with the Investment Funds underlying his or her Deferred Compensation Amount. 
  

	2.5
	 
	Matching Contributions and Investment Income Amounts.    Subject to Sections 3.3 and 6.2, a Participant will become fully Vested with
respect to a Matching Contribution and Investment Income Amounts in respect of a Deferred Compensation Amount on the third anniversary of the date the Deferred Compensation Amount and Matching Contribution was credited to the Participant’s
Deferred Compensation Account. 
 

  

	2.6
	 
	Vesting Upon Certain Events.    A Participant will become fully and immediately Vested in his or her Deferred Compensation Account if
his or her employment with the Company or an Affiliate of the Company is terminated by reason of death, Disability or Retirement. A Participant will become fully and immediately Vested in his or her Deferred Compensation Amount (but not in his or
her Matching Contributions or any Investment Income Amounts) if his or her employment with the Company or an Affiliate of the Company is terminated by his or her Employer other than for Cause. 
 

  
 Article 4.    Valuation 
  
 As of each Valuation Date, a Participant’s Deferred Compensation Account shall consist of the balance of the Participant’s
Deferred Compensation Account as of the immediately preceding Valuation Date adjusted for: 
  

	 	·
	 
	Deferred Compensation Amounts; 
 

	 	·
	 
	Matching Contributions; 
 

	 	·
	 
	Investment Income Amounts (gains and/or losses); and 
 

	 	·
	 
	distributions (if any). 
 

  
 All adjustments and earnings related thereto will be determined on a monthly basis in accordance with the Valuation Date or on such other basis as may be specified by the Committee from time to time. Unless the Committee
determines otherwise, each Participant will receive quarterly valuation statements in respect of his or her Deferred Compensation Accounts. 
  
 Article 3.    Tracking Investments 
  

	3.1
	 
	Investment Election for Deferred Compensation Amount.    A Participant shall specify that all, or any whole percentage, of the sum of
his or her Deferred Compensation Amount and any Matching Contribution for the applicable Plan Year (such sum, the “Deferred Amount”) shall be designated to one or more of the Investment Funds. Unless otherwise determined by the Committee,
a Participant may not designate less than (i) 10% of his or her Deferred Amount to an Investment Fund (other than Obsidian) and (ii) 25% of his or her Deferred Amount to Obsidian. The Company or an Affiliate of the Company may make a corresponding
investment in the actual Investment Fund, but shall not be obligated to do so. 
 

  

	3.2
	 
	Failure to Designate.    If a designation is not in place before a Deferred Compensation Amount is credited to the Participant’s
Deferred Compensation Account, the Deferred Amount shall be directed the Investment Fund which provides the lowest risk of loss of capital, as determined in the sole discretion of the Committee. 
 

  

	3.3
	 
	Committee Discretion.    The Committee shall have the sole discretion to determine the Investment Funds available under the Plan and
may change or eliminate an Investment Fund provided hereunder from time to time. If any Investment Fund ceases to be available under the Plan, the Committee shall have the authority to credit any allocation to such Investment Fund (along with deemed
earnings, gains, losses, expenses or changes thereto) to any other then-available Investment Fund. The Committee may disregard the deemed investment instructions of a Participant. 
 

  

	3.4
	 
	Investment Reallocation.    Once each calendar quarter (but, in the case of Obsidian, only once each calendar year), a Participant
may elect, by written notice 
 

 delivered to the Committee on such date as shall be designated by the Committee, to change the manner in which all or a
portion of his or her Deferred Compensation Account is designated among the then-available Investment Funds. Unless otherwise determined by the Committee, a Participant may not reallocate less than (i) 10% of the amount directed by the Participant
in the particular Investment Fund (other than Obsidian) from which the reallocation is to be made and (ii) 25% of the amount directed by the Participant to Obsidian to another Investment Fund. A Participant must abide by the timing of the
distribution and contribution parameters set forth by the applicable Investment Fund. To the extent that a Participant wishes to change the manner in which his or her Deferred Compensation Account is directed into or out of an Investment Fund, such
transfer shall only be effected as of the next available distribution or contribution date, as the case may be, of the applicable Investment Fund. Any amount directed to an Investment Fund prior to the Investment Fund’s next contribution date
shall, until such contribution date, be directed to the Investment Fund which provides the lowest risk of loss of capital, as determined in the sole discretion of the Committee. 
  

	3.5
	 
	Investment Fund Limitations.    The Committee may limit the aggregate amount of investments directed to any Investment Fund. If the
Committee decides to limit the aggregate of investments directed to a particular Investment Fund, each Participant’s deferral to such Investment Fund will be reduced on a pro-rata basis, or on such other basis as the Committee may determine.
Participants will be notified if the Committee intends to limit the investments that may be directed to an Investment Fund and will be provided with the opportunity to direct any amount not permitted to be directed to an Investment Fund to any of
the other then-available Investment Funds. If a Participant does not provide a direction with respect to an amount not permitted to be directed to a particular Investment Fund, such amount shall be directed to the Investment Fund which provides the
lowest risk of loss of capital, as determined in the sole discretion of the Committee. 
 

  
 Article
4.    Distributions 
  

	4.1
	 
	General.    A Participant shall receive a lump sum cash distribution from his or her Deferred Compensation Account in respect of any
Vested portion of his or her Deferred Compensation Account as soon as practicable after such portion becomes Vested. 
 

  

	4.2
	 
	Termination of Employment.    Upon the termination of a Participant’s employment with the Company or an Affiliate of the Company
for any reason whatsoever, the Participant shall receive a distribution as described in Section 6.1 in respect of any Vested portion of his or her Deferred Compensation Account. Subject to Article 3, any portion of the Deferred Compensation Account
which is not Vested at the date of termination shall be forfeited. 
 

  
 Article
5.    Beneficiary Designation 

  

	5.1
	 
	Beneficiary Designation.    Each Participant shall have the right, at any time, to designate any person or persons as beneficiary or
beneficiaries (both principal as well as contingent) to whom a lump sum cash payment of the Vested balance of the Participant’s Deferred Compensation Account shall be made in the event of the Participant’s death. In the event of multiple
beneficiaries, such payment shall be apportioned among the beneficiaries in accordance with the designation forms, or if applicable, as determined pursuant to Section 7.2. A beneficiary designation may be changed by a Participant by filing such
change on a form prescribed by the Committee. The receipt of a new beneficiary designation form will cancel all previously filed beneficiary designations. 
 

  

	5.2
	 
	Failure to Designate.    If a Participant fails to designate a beneficiary as provided above, or if all designated beneficiaries
predecease the Participant, then the Participant’s designated beneficiary shall be deemed to be the persons surviving him in the first of the following classes in which there is a survivor on a per capita basis: 
 

 

	 	·
	 
	the surviving spouse; 
 

	 	·
	 
	the Participant’s children, except that if any of the children predecease the Participant but leave issue surviving, then such issue shall take by right of
representation the share their parent would have taken if living; and 
 

	 	·
	 
	the Participant’s personal representative (executor or administrator). 
 

  
 Article 6.    Administration 
  

	6.1
	 
	Administration.    The Plan shall be administered by the Committee. The Committee shall have the authority in its sole discretion,
subject to and not inconsistent with the express provisions of the Plan, to administer the Plan and to exercise all the powers and authorities either specifically granted to it under the Plan or necessary or advisable in the administration of the
Plan, including, without limitation, the authority to construe and interpret the Plan and any Plan related documentation; to determine all questions arising in connection with the Plan; to prescribe, amend and rescind rules and regulations relating
to the Plan; and to make all other determinations deemed necessary or advisable for the administration of the Plan. The Committee may appoint a chairperson and a secretary and may make such rules and regulations for the conduct of its business as it
shall deem advisable, and shall keep minutes of its meetings. All determinations of the Committee shall be made by a majority of its members either present in person or participating by conference telephone at a meeting or by written consent. The
Committee may delegate to one or more of its members or to one or more agents such administrative duties as it may deem advisable, and the Committee or any person to whom it has delegated duties as aforesaid may employ one or more persons to render
advice with respect to any responsibility the Committee or such person may have under the Plan. All decisions, determinations and interpretations of the Committee shall be final and binding on all persons, including the Company, and any Affiliate of
the Company, Participant or beneficiary. 
 

  

	6.2
	 
	Claims Appeal Procedure.    After first discussing any claims a Participant may have under the Plan with Carl Pope, Director-
Compensation and Benefits, the Participant may then make a claim under this Plan in writing to the Committee. The Committee shall notify the Participant in writing within a reasonable period if the claim is denied, the basis for denial (including
references to applicable Plan sections) and any additional information needed to perfect the claim. After a receipt of denial, the Participant may request the Committee to review its decision. At such time the Committee shall conduct a full and fair
review of the decision denying the claim and respond to the Participant within a reasonable time period. 
 

  

	6.3
	 
	Liability Indemnification.    No member of the Board or the Committee shall be liable for any action taken or determination made in
good faith with respect to the Plan. The members of the Committee and its agents shall be indemnified and held harmless by the Company against and from any and all loss, cost, liability, or expense that may be imposed upon or incurred by them in
connection with or resulting from any claim, action, suit, or proceeding to which they may be a party or in which they may be involved by reason of any action taken or failure to act under this Plan and against and from any and all amounts paid by
them in settlement (with the Company’s written approval) or paid by them in satisfaction of a judgment in any action suit, or proceeding. The foregoing shall not be applicable to any person if the loss, cost, liability or expense is due to such
person’s gross negligence or willful misconduct. 
 

  
 Article 7.    Amendment and
Termination of Plan 
  
 The Committee may at any time amend or terminate the Plan in whole or in part;
provided, however, that no amendment or termination may act to reduce a Participant’s Deferred Compensation Account at the time of such amendment or termination. 
  
 Article 8.    Miscellaneous 
  

	8.1
	 
	Unsecured General Creditor.    Participants and their beneficiaries shall have no legal or equitable rights, interest or claims in
any property or assets of the Company, any Affiliate of the Company or any Investment Fund. The obligation under the Plan to a Participant shall be merely that of an unfunded and unsecured promise of the Participant’s Employer to pay money to
the Participant in the future. The Company shall be jointly and severally liable for the obligation of Employers in respect of obligations owed to Participants and beneficiaries hereunder. 
 

  

	8.2
	 
	Nonassignability.    Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge,
anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey in advance of actual receipt the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are, expressly declared to be unassignable and
nontransferable. No part 
 

 of the amounts payable shall, prior to actual payment, be subject to seizure or sequestration for the payment of any
debts, judgments, alimony or separate maintenance owed by a Participant or any other person, nor be transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency. 
  

	8.3
	 
	Not a Contract of Service.    The terms and conditions of this Plan shall not be deemed to constitute a contract of service between a
Participant and the Company or any Affiliate of the Company. Except as may otherwise be specifically provided herein, neither a Participant nor any beneficiary shall have rights against the Company or any Affiliate of the Company. Moreover, nothing
in this Plan shall be deemed to give a Participant the right to be retained in the service or employment of the Company or any Affiliate of the Company. 
 

  

	8.4
	 
	Offset.    Amounts due to or in respect of Participants under the Plan shall not be affected by any circumstances, including, without
limitation, any set-off, counterclaim, recoupment, defense or other right which the Company or any Affiliate of the Company may have against a Participant or others. 
 

  

	8.5
	 
	Withholding.    The Company, or as applicable, an Affiliate of the Company, shall have the power to withhold an amount sufficient to
satisfy all federal, state, local or foreign withholding requirements in respect of any payment made under the Plan. 
 

  

	8.6
	 
	Governing Law.    The Plan, and any agreement related thereto, shall be governed by the laws of the State of Delaware without giving
effect to the conflict of law principles thereof.<PAGE>

                           NORTHERN TRUST CORPORATION              Exhibit 10(i)

                             ANNUAL PERFORMANCE PLAN

                                      2002

I.   Purpose of Plan

     The purpose of the Annual Performance Plan (the "Plan") is to promote the
     achievement of superior financial and operating performance of the Northern
     Trust Corporation (the "Corporation") and its subsidiaries (collectively,
     the Corporation and its subsidiaries, "Northern Trust"), and further the
     objective of delivering unrivaled service quality to its clients and
     partners through the awarding of cash incentive payments to selected
     officers.

II.  Plan Year/Effective Date/Termination

     The Plan Year for this Plan will be the calendar year from January 1, 2002
     to December 31, 2002. The Plan is effective as of January 1, 2002 and
     automatically terminates on December 31, 2002.

III. Eligibility and Participation

     Eligibility to participate in the Plan is restricted to officers with the
     title of Vice President and above who are not eligible for participation in
     a Specialized Incentive Plan. Plan participation is reviewed each year, and
     participation in one year does not automatically indicate participation in
     subsequent Plan years. Participation in the Plan is based upon
     recommendation from the respective Business Unit Head.

IV.  Award Funding

     At the beginning of the Plan year, the Compensation and Benefits Committee
     of the Board of Directors of the Corporation will determine a Corporate
     Earnings Target and profit plan funding for awards under the Annual
     Performance Plan. The allocation of the plan award funding to each
     respective Business Unit will be based on the salaries of the eligible
     officers within the Business Unit. Within each Business Unit, one-half of
     the available funding for awards under the Plan will be based on the
     Northern Trust's financial achievement versus the Corporate Earnings
     Target. The other half of the award funding is based on the financial
     achievement of the Business Unit versus the Business Unit's earnings
     target. For staff support units, the available funding for awards will be
     based entirely on the financial achievement of Northern Trust versus the
     Corporate Earnings Target. Management reserves the right to either increase
     or decrease the original funding amount. A guideline showing potential
     adjustments to award funding based on Corporate and Business Unit
     performance is provided in Attachment I.

V.   Individual Award Determination

     Individual participant awards will be discretionary. They will be
     determined by Business Unit Management based on an assessment of individual
     performance relative to performance expectations, contribution to financial
     and operating goals, competitive level of total compensation, and available
     award pool funding.

<PAGE>

VI.  Payment of Awards

     Awards will be paid in cash as soon as practicable following the completion
     of the Plan year. For Plan year 2002 awards, officers receiving an award
     equal to or greater than $12,500 from the Plan will have their award
     delivered as a combination of approximately 80% cash and 20% in the form
     of a non-qualified Stock Option grant. All other awards will be paid in
     cash. Awards payable because of a Change in Control of the Corporation
     pursuant to Paragraph IX shall be paid in cash as soon as practicable
     following such Change in Control.

VII. Administration

     The Plan shall be administered by the Management Committee of the
     Corporation (the "Committee"). Subject to the provisions of the Plan, the
     Committee shall be authorized to interpret the Plan, to establish, amend,
     and rescind any rules and regulations relating to the Plan, and to make all
     other determinations necessary or advisable for the administration of the
     Plan. The determinations of the Committee in the effective administration
     of the Plan, as described herein, shall be final and conclusive.

     The Compensation and Benefits Committee of the Board of Directors of the
     Corporation, by written resolution, may amend, suspend, or terminate any or
     all provisions of the Plan at any time.

VIII. Other Provisions

     The following miscellaneous provisions are applicable to the Plan:

(a)  None of the provisions of this Plan will override general Corporate Policy.

(b)  Termination of employment by a participant during the Plan Year, either
     voluntary or involuntary with cause, and for reasons other than death,
     disability, or retirement shall result in immediate exclusion from the
     Plan. For purposes of this Plan, "Retirement" means the termination of the
     participant's employment with Northern Trust by reason of participant
     having attained the age of 65 years or older or after the participant has
     qualified for an Early Retirement Pension under The Northern Trust Company
     Pension Plan. For purposes of this Plan, "Disability" means a participant
     has been receiving short-term and long-term disability benefits under
     Northern Trust's Managed Disability Program for 12 consecutive months.

(c)  Except in the event of the death of a participant, the rights and interests
     of a participant under the Plan shall not be assigned, encumbered, or
     transferred.

                                       2

<PAGE>

(d)  No employee or other person shall have any claim or right to be granted an
     award under the Plan. Neither the Plan, nor any action taken thereunder,
     shall be construed as giving any employee or other person any right to be
     retained in the employ of the Corporation for any length of time.
     Participants in the Plan will remain at-will employees for all purposes.

(e)  The Corporation shall have the right to deduct from all payments made under
     the Plan any taxes required by law to be withheld with respect to such
     payment.

(f)  All questions pertaining to the validity, construction and administration
     of the Plan and any award hereunder shall be determined in conformity with
     the laws of the State of Illinois.

(g)  Each participant shall designate a beneficiary (the "Designated
     Beneficiary") to receive the award, if any, allocated to a participant, in
     the event of such participant's death. If no Designated Beneficiary
     survives the participant, it shall be the surviving spouse of the
     participant or, if there is no surviving spouse, it shall be the
     participant's estate.

IX.  Change in Control

     Notwithstanding any other terms contained herein, in the event of a Change
     in Control of the Corporation, funding for awards under the Plan shall be
     determined as if the Corporation and Business Units had achieved the
     respective earnings targets, as described in Section IV. Discretionary
     awards shall be paid to participants as soon as practicable. For purposes
     of this paragraph, a "Change in Control" shall be deemed to have occurred
     if

               (1) any Person is or becomes the Beneficial Owner, directly or
               indirectly, of securities of the Corporation (not including in
               the securities beneficially owned by such Person any securities
               acquired directly from the Corporation or its affiliates)
               representing 20% or more of the combined voting power of the
               Corporation's then outstanding securities, excluding any Person
               who becomes such a Beneficial Owner in connection with a
               transaction described in clause (i) of paragraph (3) below; or

               (2) the election to the Board of Directors of the Corporation,
               without the recommendation or approval of two thirds of the
               incumbent Board of Directors of the Corporation, of the lesser
               of: (A) three directors; or (B) directors constituting a majority
               of the number of directors of the Corporation then in office,
               provided, however, that directors whose initial assumption of
               office is in connection with an actual or threatened election
               contest, including but not limited to a consent solicitation,
               relating to the election of directors of the Corporation will not
               be considered as incumbent members of the Board of Directors of
               the Corporation for purposes of this section; or

               (3) there is consummated a merger or consolidation of the
               Corporation or any direct or indirect subsidiary of the
               Corporation with any other company, other than (i) a merger or
               consolidation which would result in the voting securities of the
               Corporation outstanding immediately prior to such merger or
               consolidation continuing to represent (either by remaining
               outstanding or by being converted into voting securities of the
               surviving entity or any parent thereof), at least 60% of the
               combined voting power of the securities of the Corporation or
               such sur viving entity or any parent thereof outstanding
               immediately after such merger or consolidation, or (ii) a merger
               or consolidation effected to implement a recapi-

                                       3

<PAGE>

               talization of the Corporation (or similar transaction) in which
               no Person is or becomes the Beneficial Owner, directly or
               indirectly, of securities of the Corporation (not including in
               the securities Beneficially Owned by such Person any securities
               acquired directly from the Corporation or its Affiliates)
               representing 20% or more of the combined voting power of the
               Corporation's then outstanding securities; or

               (4) the stockholders of the Corporation approve a plan of
               complete liquidation or dissolution of the Corporation or there
               is consummated an agreement for the sale or disposition by the
               Corporation of all or substantially all of the Corporation's
               assets, other than a sale or disposition by the Corporation of
               all or substantially all of the Corporation's assets to an
               entity, at least 60% of the combined voting power of the voting
               securities of which are owned by stockholders of the Corporation
               in substantially the same proportions as their ownership of the
               Corporation immediately prior to such sale.

Notwithstanding the foregoing, a "Change in Control" shall not be deemed to have
occurred by virtue of the consummation of any transaction or series of
integrated transactions immediately following which the record holders of the
common stock of the Corporation immediately prior to such transaction or series
of transactions continue to have substantially the same proportionate ownership
in an entity which owns all or substantially all of the assets of the
Corporation immediately following such transaction or series of transactions.

For purposes of the foregoing, the following definitions shall apply:

          "Affiliate" shall have the meaning set forth in Rule 12b-2 under
          Section 12 of the Exchange Act; "Beneficial Owner" shall have the
          meaning set forth in Rule 13d-3 under the Exchange Act, except that a
          Person shall not be deemed to be the Beneficial Owner of any
          securities with respect to which such Person has properly filed a Form
          13-G; "Exchange Act" shall mean the Securities Exchange Act of 1934,
          as amended from time to time; and "Person" shall have the meaning
          given in Section 3(a)(9) of the Exchange Act, as modified and used in
          Sections 13(d) and 14(d) thereof, except that such term shall not
          include (i) the Corporation or any of its Affiliates, (ii) a trustee
          or other fiduciary holding securities under an employee benefits plan
          of the Corporation or any of its subsidiaries, (iii) an underwriter
          temporarily holding securities pursuant to an offering of such
          securities or (iv) a corporation owned, directly or indirectly, by the
          stockholders of the Corporation in substantially the same proportions
          as their ownership of stock of the Corporation.

Notwithstanding anything in this Plan to the contrary, in the event of a
Potential Change in Control and for a period of six (6) months following the
Potential Change in Control, neither the Board nor the Committee may terminate
this Plan or amend this Plan in a manner that adversely affects the rights of
any participant of the Plan.

A "Potential Change in Control" shall be deemed to have occurred if the event
set forth in any one of the following paragraphs shall have occurred:

               (a)  the Corporation enters into an agreement, the consummation
                    of which would result in the occurrence of a Change in
                    Control;

                                       4

<PAGE>

               (b)  the Corporation or any Person publicly announces an
                    intention to take or to consider taking actions which, if
                    consummated, would constitute a Change in Control;

               (c)  any Person becomes the Beneficial Owner, directly or
                    indirectly, of securities of the Corporation representing
                    15% or more of either the then outstanding shares of common
                    stock of the Corporation or the combined voting power of the
                    Corporation's then outstanding securities (not including in
                    the securities beneficially owned by such Person any
                    securities acquired directly from the Corporation or its
                    Affiliates); or

               (d)  the Board adopts a resolution to the effect that, for
                    purposes of this Plan, a Potential Change in Control has
                    occurred.

                                       5

<PAGE>

                                                                    Attachment I

                ANNUAL PERFORMANCE PLAN - POOL FUNDING GUIDELINE

                      CORPORATE AND BUSINESS UNIT EARNINGS

2002 Corporate and Business Unit Earnings Target

The 2002 Annual Performance Plan Corporate Earnings Target and the respective
Business Unit Earnings Target include the accrual for payments which may be made
under the Plan's provisions.

Corporate and Business Unit Performance

The distribution of the Annual Performance Plan award pool within the Business
Unit is fully discretionary and will be determined by Business Unit Management.

The pool of funds available will be divided into two equal amounts. One-half of
the pool is based on the Corporate Earnings Target, and the other half is based
on Business Unit performance. Management reserves the right to either increase
or decrease the funding amounts and may reference the following as a general
guideline:

For each percent change in net income above/below the respective earnings
target, the pool amount shall change by: 1% for each percent between 0% - 5%, 2%
for each percent between 5.1% - 10%, 3% for each percent between 10.1% - 15%,
and 4% for each percent between 15.1% - 20%.

             ===================================================
              % of Net Income Target   % of Pool Amount Funded
             ---------------------------------------------------
                       120%                     150%
             ---------------------------------------------------
                       115%                     130%
             ---------------------------------------------------
                       110%                     115%
             ---------------------------------------------------
                       107%                     109%
             ---------------------------------------------------
                       105%                     105%
             ---------------------------------------------------
                       103%                     103%
             ---------------------------------------------------
                       100%                     100%
             ---------------------------------------------------
                        97%                      97%
             ---------------------------------------------------
                        95%                      95%
             ---------------------------------------------------
                        93%                      91%
             ---------------------------------------------------
                        90%                      85%
             ---------------------------------------------------
                        85%                      70%
             ---------------------------------------------------
                        80%                      50%
             ===================================================

                                       6

<PAGE>

                                                                   Attachment II

                          ANNUAL PERFORMANCE PLAN AWARD

                          Beneficiary Designation Form

Please provide the following information regarding beneficiary designation:

Name:_______________________________________    Social Security No._____________

I hereby nominate the following beneficiary(ies):

Beneficiary's Name:_____________________________________________________________

if living at the time of my death, or if not to:________________________________

________________________________________________________________________________

Signed:____________________________________     Date:____________________

If more than one beneficiary is named, the death benefit, unless other provided
herein will be paid in equal shares to the designated beneficiaries who survive
the employee. If no such beneficiary survives, the beneficiary shall be the
surviving spouse of the participant, or if there is no surviving spouse, the
beneficiary shall be the estate of the participant.

Return to: Compensation MB-08

                                        7

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