Document:

Exhibit 4.2

	
  REGISTERED

  	
   

  	
  REGISTERED

  
	
   

  	
   

  	
   

  
	
  NO. FLR-

  	
  MEDIUM-TERM
  NOTE, SERIES C

  	
  PRINCIPAL
  AMOUNT:

  
	
   

  	
  (Floating
  Rate)

  	
  U.S.$

  
	
   

  	
   

  	
  CUSIP:
  25468PCF1

  

 

Unless and until
it is exchanged in whole or in part for Notes in definitive form, this Note may
not be transferred except as a whole by the Depositary to a nominee of the
Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary. Unless this
certificate is presented by an authorized representative of The Depository
Trust Company, New York, New York (“DTC”), to the issuer or its agent for
registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or such other name as requested by an
authorized representative of DTC and any payment is made to Cede & Co. or
such other entity as requested by an authorized representative of DTC, ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest
herein.

	
  ORIGINAL ISSUE DATE: July 17, 2007

  	
  ORIGINAL ISSUE PRICE: 100%

  
	
  MATURITY DATE: July 16, 2010

  	
  EARLIEST REDEMPTION DATE:

  
	
  INITIAL MATURITY DATE (for Renewable Notes):

  	
   

  
	
  FINAL MATURITY DATE (for Renewable Notes):

  	
   

  
	
  INITIAL INTEREST RATE: 5.43%

  	
  REDEMPTION PRICE:

  
	
  BASE RATE OR RATES:

  	
  INTEREST PAYMENT DATES: January 16,

  April 16, July 16 and October 16,

  commencing October 16, 2007

  
	
  o
  COMMERCIAL PAPER RATE

  	
   

  
	
  x
  LIBOR:

  	
  REGULAR RECORD DATES: Fifteenth day

  
	
  o
  Reuters Monitor Money Rates Service

  	
  (whether or not a Business Day) immediately

  
	
  x
  Moneyline Telerate

  	
  preceding the related Interest Payment Date or

  
	
  o
  Index Currency

  	
  Dates

  
	
   o
  CD RATE

  	
   

  
	
   o
  FEDERAL FUNDS RATE

  	
  INTEREST PAYMENT PERIOD:

  
	
   o
  TREASURY RATE

  	
  o
  Monthly

  
	
   o
  PRIME RATE

  	
  x
  Quarterly

  
	
   o
  CMT RATE

  	
   

  
	
  o
  Telerate Page 7051

  	
   

  
	
  o
  Telerate Page 7052

  	
  o
  Semiannually

  
	
  o
  Week

  	
  o
  Annually

  
	
  o
  Month

  	
   

  
	
  o
  CMT Maturity Index:

  	
   

  
	
   o
  J.J. KENNY RATE

  	
   

  
	
   o
  ELEVENTH DISTRICT COST OF FUNDS RATE

  	
   

  
	
   o
  EURIBOR

  	
   

  
	
   o
  OTHER:

  	
   

  
	
  SPREAD: plus 7 basis points

  	
   

  
	
  (Indicate plus
  or minus

  	
  INTEREST RESET PERIOD:

  
	
  and number of
  basis points)

  	
  o
  Daily

  
	
  SPREAD MULTIPLIER:

  	
  o
  Weekly

  
	
  INDEX MATURITY:

  	
  o
  Monthly

  
	
  o
  1 Month

  	
  x
  Quarterly

  
	
  x
  3 Months

  	
  o
  Semiannually

  
	
  o
  6 Months

  	
  o
  Annually

  
	
  o
  1 Year

  	
   

  
	
  o
  OTHER:                                    

  	
  INTEREST RESET DATES:

  
	
                                                         

  	
  CALCULATION AGENT:

  
	
   

  	
  x
  WELLS FARGO BANK, N.A.

  
	
  MAXIMUM INTEREST RATE:       %

  	
  o
  OTHER:                                    

  
	
  MINIMUM INTEREST RATE:       %

  	
   

  

 

 

	
  Dated:

  	
   

  	
   

  

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

This is one of the
Notes of the series designated herein referred to in the within-mentioned
Indenture.

	
  WELLS FARGO BANK, N.A., as Trustee

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
    

  	
  Authorized Signatory

  	
   

  

 

 1
 

THE WALT DISNEY
COMPANY, a corporation duly organized and existing under the laws of the State
of Delaware (herein referred to as the “Company”), for value received, hereby
promises to pay to CEDE & CO., or registered assigns, the Principal Amount
specified above on the Maturity Date specified above and to pay interest
thereon from the Original Issue Date specified above or from the most recent
Interest Payment Date to which interest has been paid or duly provided for at a
rate per annum equal to the Initial Interest Rate specified above until the
first Interest Reset Date specified above following the Original Issue Date
specified above and thereafter at a rate determined in accordance with the
provisions below under the heading “Determination of Commercial Paper Rate,” “Determination
of LIBOR,” “Determination of CD Rate,” “Determination of Federal Funds Rate,” “Determination
of Treasury Rate,” “Determination of Prime Rate,” “Determination of CMT Rate,” “Determination
of J.J. Kenny Rate,” “Determination of Eleventh District Cost of Funds Rate” or
“Determination of EURIBOR” depending upon whether the applicable Base Rate
specified above is the Commercial Paper Rate, LIBOR, CD Rate, Federal Funds
Rate, Treasury Rate, Prime Rate, CMT Rate, J.J. Kenny Rate, Eleventh District
Cost of Funds Rate or EURIBOR, which rate may be adjusted by adding or
subtracting the Spread or multiplying the Base Rate by the Spread Multiplier
depending on whether a Spread or Spread Multiplier is specified above, until
the principal hereof is paid or duly made available for payment. The “Spread,”
if any, is the number of basis points to be added to or subtracted from the
Base Rate or Rates, as specified above, and the “Spread Multiplier,” if any, is
the percentage of the Base Rate or Rates, as specified above, by which such
Base Rate or Rates are to be multiplied. The “Index Maturity,” if any, is the
period to maturity of the instrument or obligation with respect to which the
related Base Rate or Rates are calculated, as designated above. If more than
one Base Rate is specified above, the applicable Base Rate shall be the lowest
of such Base Rates on the Interest Determination Date. The Company will pay
interest in arrears monthly, quarterly, semiannually or annually as specified
above under “Interest Payment Period,” commencing with the first Interest
Payment Date specified above next succeeding the Original Issue Date and
thereafter on the Interest Payment Dates as specified above, and at Maturity.
The interest so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in the Indenture (as defined below), be
paid to the Person in whose name this Note (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
set forth above (whether or not a Business Day), as the case may be, next
preceding such Interest Payment Date; provided, however, that
the interest payment at Maturity shall be payable to the Person to whom
principal shall be payable. If the Maturity of this Note falls on a day that is
not a Business Day, the payment of principal and interest may be made on the
next succeeding Business Day, and no interest on such payment shall accrue for
the period from and after the Maturity. Except as otherwise provided in the
Indenture, any interest not punctually paid or duly provided for on any
Interest Payment Date (herein called “Defaulted Interest”) will forthwith cease
to be payable to the Holder on the Regular Record Date with respect to such
Interest Payment Date and may either be paid to the Person in whose name this
Note (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee (as defined below), notice of which shall be given to
Holders of Notes not less than ten days prior to such Special Record Date, or
be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Notes may be listed, and
upon such notice as may be required by such exchange, all as more fully
provided in the Indenture. Payment of the principal of and interest, if any, on
this Note will be made at the office or agency of the Company maintained for
that purpose, initially designated to be the Corporate Trust Office of the
Trustee in Los Angeles, California, and at such additional offices or agencies
as the Company may designate, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts; provided, however, that at the
option of the Company, payments of principal of and interest on this Note may
be made by check mailed to the address of the Person entitled thereto as such
address shall appear in the register of Securities or by wire transfer of
immediately available funds to the account of the Holder of this Note if
appropriate wire transfer instructions have been received in writing by the
Trustee not less than 15 days prior to the applicable payment date.  Notwithstanding the foregoing, the Company
will make payments of interest, if any, on any Interest Payment Date other than
the Maturity Date to each registered Holder of $10,000,000 (or, if the payment
currency is other than United States dollars, the equivalent thereof in the
particular payment currency) or more in aggregate principal amount of
definitive Notes (whether having identical or different terms and provisions)
by wire transfer of immediately 

 2
 

available funds if the
applicable registered Holder has delivered appropriate wire transfer
instructions in writing to the Trustee not less than 15 days prior to the
particular Interest Payment Date.  Any
wire transfer instructions received by the Trustee shall remain in effect until
revoked by the applicable registered Holder.

Reference is
hereby made to the further provisions of this Note set forth below, which
further provisions shall for all purposes have the same effect as if set forth
at this place.

Unless the
certificate of authentication hereon has been executed by the Trustee or its
duly appointed co-authenticating agent by manual signature, this Note
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

This Note is one
of a duly authorized issue of securities (herein called the “Securities”) of
the Company  (which term includes any
successor corporation under the Indenture hereinafter referred to) issued and
to be issued pursuant to such Indenture. This Security is one of a series
designated by the Company as its Medium-Term Notes, Series C. The
Indenture does not limit the aggregate principal amount of the Securities.

The Company issued
this Note pursuant to an Indenture, dated as of September 24, 2001 (herein
called the “Indenture”), between the Company and Wells Fargo Bank, N.A., a
national banking association, as trustee (herein called the “Trustee,” which
term includes any successor trustee under the Indenture), to which Indenture
and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and Holders of the Notes and
of the terms upon which the Notes are, and are to be, authenticated and
delivered.

The Notes are
issuable as Registered Securities, without coupons, in denominations of $2,000
and any amount in excess thereof which is an integral multiple of $1,000. As
provided in the Indenture and subject to certain limitations therein set forth,
Notes are exchangeable for a like aggregate principal amount of Notes of like tenor
of any authorized denomination, as requested by the Holder surrendering the
same, upon surrender of the Note or Notes to be exchanged at any office or
agency described below where Notes may be presented for registration of
transfer.

The
Company may from time to time, without the consent of existing Note Holders,
issue additional Notes having the same terms and conditions (including maturity
and interest payment terms) as previously issued Notes in all respects, except
for issue date, issue price and the first payment of interest.  Additional Notes issued in this manner will
be fungible with the previously issued Notes to the extent specified in the
applicable Pricing Supplement.

This Note may not
be redeemed prior to the Earliest Redemption Date set forth above. If no
Earliest Redemption Date is so set forth, this Note is not redeemable prior to
the Maturity Date. This Note is redeemable at any time on or after the Earliest
Redemption Date set forth above at the option of the Company, in whole or from
time to time in part, upon not less than 30 nor more than 60 days’ notice
mailed to the registered Holder hereof, at the Redemption Price equal to the
amount set forth above, together in each case with accrued interest to but
excluding the Redemption Date.

Notwithstanding
the preceding paragraph, installments of interest whose Stated Maturity is
prior to the Redemption Date of any Note will be payable to the Holder of such
Note, or one or more Predecessor Securities, of record at the close of business
on the relevant Regular Record Dates referred to above, all as provided in the
Indenture.

All
notices  of redemption shall state the
Redemption Date, the Redemption Price, if fewer than all the outstanding Notes
with the same Original Issue Date, Base Rate or Rates and Stated Maturity are
to be redeemed, the identification (and, in the case of partial redemption, the
principal amounts) of Notes to be redeemed, that on and including the
Redemption Date the Redemption Price will become due and payable upon

 3
 

each
Note, or portion thereof, to be redeemed, that interest on each Note, or
portion thereof, called for redemption will cease to accrue on the Redemption
Date and the place or places where Notes may be surrendered for redemption.
However, payment of the Redemption Price, together with accrued interest to but
excluding the Redemption Date, for a Note for which a redemption notice has
been delivered is conditioned upon delivery of such Note (with, if the Company
or the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company and the Trustee duly executed by,
the Holder thereof or his attorney duly authorized in writing) to the office or
agency of the Company maintained for that purpose, initially designated to be
the Corporate Trust Office of the Trustee in Los Angeles, California, and at
such additional offices or agencies as the Company may designate, at any time
(whether prior to, on or after the Redemption Date) after delivery of the
redemption notice.  Payment of the
Redemption Price for the Note (or portion thereof to be redeemed), together
with accrued interest to the Redemption Date, will be made on the later of the
Redemption Date or promptly following the time of delivery of the Note.  If fewer than all of the Notes with the same
Original Issue Date, Base Rate or Rates and Stated Maturity are to be redeemed
at any time, selection of such Notes for redemption will be made by the Trustee
by such method as the Trustee shall deem fair and appropriate.

In the event of
redemption of this Note in part only, a new Note or Notes of like tenor for the
aggregate principal amount equal to and in exchange for the unredeemed portion
of the principal of the Notes so surrendered will be issued in the name of the
Holder hereof upon the cancellation hereof.

For all purposes
of this Note and the Indenture, unless the context otherwise requires, all
provisions relating to the redemption by the Company of Notes shall relate, in
the case of any Notes redeemed or to be redeemed by the Company only in part,
to the portion of the principal amount of such Notes which has been or is to be
so redeemed.

Commencing with
the first Interest Reset Date specified above following the Original Issue
Date, the rate at which interest on this Note is payable shall be adjusted
daily, weekly, monthly, quarterly, semiannually or annually as specified above
under “Interest Reset Period.” If any Interest Reset Date specified above would
otherwise be a day that is not a Business Day, such Interest Reset Date shall
be postponed to the next succeeding day that is a Business Day, except that if
the rate of interest on this Note shall be determined with reference to the
provisions under the heading “Determination of LIBOR” or “Determination of
EURIBOR” below, and such Business Day is in the next succeeding calendar month,
such Interest Reset Date shall be the last Business Day in the preceding month.
If any Interest Payment Date (other than an Interest Payment Date occurring on
the Maturity Date) specified above falls on a day that is not a Business Day,
such Interest Payment Date shall be the following day that is a Business Day,
except that if the rate of interest on the Note shall be determined with
reference to the provisions under the heading “Determination of LIBOR” or “Determination
of EURIBOR” below, and such Business Day is in the next succeeding calendar
month, such Interest Payment Date shall be the immediately preceding day that
is a Business Day. “Business Day” means any day, other than a Saturday or
Sunday, that is neither a legal holiday nor a day on which commercial banks are
authorized or required by law, regulation or executive order to close in The
City of New York; provided, however, that with
respect to Notes the payment of which is to be made in a denominated currency
other than U.S. dollars, such day is also not a day on which commercial banks
are authorized or required by law, regulation or executive order to close in
the Principal Financial Center of the country of such denominated currency; provided, however, that with respect to LIBOR Notes only,
such day is also a London Business Day; and provided, further,
that with respect to EURIBOR Notes and notes denominated in Euros only, such
day is also a TARGET Business Day. “London Business Day” means any day on which
commercial banks are open for business (including dealings in the LIBOR
currency) in London.  “TARGET Business
Day” means any day on which the Trans-European Automated Real-Time Gross
Settlement Express Transfer System is open. 
“Principal Financial Center” means, as applicable: (a) the capital city of the country issuing the
payment currency; or (b) the capital city of the country to which the LIBOR
currency relates; provided, however, that with
respect to United States dollars, Australian dollars, Canadian dollars,
Deutsche marks, Dutch guilders, Italian lire, Portuguese escudos, South African
rand and Swiss francs, the “Principal Financial Center” shall be The City of

 4
 

New
York, Sydney and (solely in the case of the payment currency) Melbourne,
Toronto, Frankfurt, Amsterdam, Milan, London (solely in the case of the LIBOR
currency), Johannesburg and Zurich, respectively. The interest rate
applicable to each Interest Reset Period commencing on the Interest Reset Date
or dates with respect to such Interest Reset Period will be the rate determined
on the applicable “Interest Determination Date” determined as specified below.
The rate of interest in effect with respect to this Note on each day that is
not an Interest Reset Date will be the interest rate determined as of the
Interest Determination Date pertaining to the immediately preceding Interest
Reset Date and the interest rate in effect on any day that is an Interest Reset
Date will be the interest rate determined as of the Interest Determination Date
pertaining to such Interest Reset Date, subject in either case to any
applicable provisions of law and any Maximum Interest Rate or Minimum Interest
Rate limitations specified above; provided, however, that
the interest rate in effect with respect to this Note for the period from the
Original Issue Date to the first Interest Reset Date will be the Initial
Interest Rate specified above.

In addition to any
Maximum Interest Rate specified above, the interest rate on this Note will in
no event be higher than the maximum rate permitted by New York law, as the same
may be modified by United States law of general application.

All percentages
resulting from any calculation on this Note will be rounded, if necessary, to
the nearest one hundred-thousandth of a percentage point, with five one-millionths
of a percentage point rounded upward, and all amounts used in or resulting from
such calculation on this Note will be rounded, in the case of United States
dollars, to the nearest cent, or in the case of a foreign currency, to the
nearest unit (with one-half cent or unit being rounded upward).

Determination
of Commercial Paper Rate.  If the Commercial Paper
Rate is the Base Rate or one of the Base Rates specified above, the interest
rate payable with respect to this Note shall be calculated by the Calculation
Agent with reference to the Commercial Paper Rate and the Spread or Spread
Multiplier, if any, specified above, in accordance with the following
provisions:

“Commercial Paper
Rate” means, with respect to any Interest Determination Date specified below (a
“Commercial Paper Rate Interest Determination Date”), the Money Market Yield
(as defined below) on such date of the rate for commercial paper having the
Index Maturity specified above as published in H.15(519), under the heading “Commercial
Paper-Nonfinancial.” In the event that such rate is not published by 3:00 P.M.,
New York City time, on the Calculation Date pertaining to such Commercial Paper
Rate Interest Determination Date, then the Commercial Paper Rate will be the
Money Market Yield on such Commercial Paper Interest Determination Date of the
rate for commercial paper of the Index Maturity specified above as published in
H.15 Daily Update, or such other recognized electronic source used for the
purpose of displaying the applicable rate, under the heading “Commercial
Paper-Nonfinancial.” If such rate is not published in either H.15(519) or H.15
Daily Update by 3:00 P.M., New York City time, on such Calculation Date, then
the Commercial Paper Rate will be calculated by the Calculation Agent and will
be the Money Market Yield of the arithmetic mean of the offered rates, as of
approximately 11:00 A.M., New York City time, on such Commercial Paper Interest
Determination Date, of three leading dealers of United States dollar commercial
paper in New York, New York (which may include one or more of the Agents or
their affiliates) selected by the Calculation Agent (after consultation with
the Company) for commercial paper of the Index Maturity specified above placed
for an industrial issuer whose bond rating is “AA,” or the equivalent, from a
nationally recognized statistical rating agency; provided,
however, that if the dealers selected as aforesaid by the
Calculation Agent are not quoting as mentioned in this sentence, the rate of
interest in effect for the applicable period will be the same as the interest
rate in effect on such Commercial Paper Interest Determination Date.

“Money Market
Yield” shall be a yield (expressed as a percentage) calculated in accordance
with the following formula: 

	
  Money Market Yield =

  	
  D X 360

  	
  X 100

  
	
   

  	
  360 - (D X
  M)

  	
   

  

 

where “D” refers
to the applicable per annum rate for commercial paper quoted on a bank discount
basis and expressed as a decimal and “M” refers to the actual number of days in
the interest period for which interest is being calculated.

 5
 

“H.15(519)” as used herein means
the weekly statistical release designated as H.15(519), or any successor
publication, published by the Board of Governors of the Federal Reserve System.

“H.15 Daily Update” as used
herein means the daily update of H.15(519), available through the
world-wide-web site of the Board of Governors of the Federal Reserve System at
http:/www.federalreserve.gov/releases/h15/update, or any successor site or
publication.

Determination
of LIBOR.  If LIBOR is the Base Rate or one of the
Base Rates specified above, the interest rate payable with respect to this Note
shall be calculated by the Calculation Agent with reference to LIBOR and the
Spread or Spread Multiplier, if any, specified above, in accordance with the
following provisions:

With respect to
any Interest Determination Date specified below (a “LIBOR Interest
Determination Date”), LIBOR will be determined as follows: (a) if “LIBOR
Reuters” is specified above, the arithmetic mean of the offered rates for
deposits in the Index Currency having the Index Maturity specified above,
commencing on the second London Business Day immediately following such LIBOR
Interest Determination Date, that appears on the LIBOR Page (as defined below)
as of 11:00 A.M., London time, on that LIBOR Interest Determination Date, if at
least two such offered rates appear on the LIBOR Page, or (b) if “LIBOR
Telerate” is specified above or if neither “LIBOR Reuters” nor “LIBOR Telerate”
is specified above, the rate for deposits in the Index Currency having the
Index Maturity specified above, commencing on the second London Business
Day  immediately following such LIBOR
Interest Determination Date, that appears on the LIBOR Page (as defined below)
as of 11:00 A.M., London time, on such LlBOR Interest Determination Date. “LIBOR
Page” means either:  (1) if “LIBOR Reuters” is specified above,
the display on the Reuter Monitor Money Rates Service (or any successor
service) on the page specified above (or any other page as may replace that
page on that service) for the purpose of displaying the London interbank rates
of major banks for the index currency; or (2) if “LIBOR Telerate” is specified
above or neither “LIBOR Reuters” nor “LIBOR Telerate” is specified above as the
method for calculating LIBOR, the display on Moneyline Telerate (or any
successor service) on the page specified above (or any other page as may
replace such page on such service) for the purpose of displaying the London
interbank rates of major banks for the index currency.  If fewer than two offered rates appear
on the LIBOR Page, or if no rate appears on the LIBOR Page, as applicable,
LIBOR in respect of that LlBOR Interest Determination Date will be determined
as if the parties had specified the rate described below.

If fewer than two
offered rates appear on the LIBOR Page or if no rate appears on the LIBOR Page,
as applicable, LIBOR will be determined as of approximately 11:00 A.M., London
time, on such LIBOR Interest Determination Date on the basis of the rate at
which deposits in the applicable Index Currency having the Index Maturity
specified above are offered by four major reference banks (which may include
affiliates of the Agents) in the London interbank market selected by the
Calculation Agent (after consultation with the Company) commencing on the
second London Business Day immediately following such LIBOR Interest
Determination Date and in a principal amount equal to an amount that is
representative for a single transaction in such market at such time. The
Calculation Agent will request the principal London office of each of such
banks to provide a quotation of its rate. If at least two such quotations are
provided, then LIBOR for such LIBOR Interest Determination Date will be the
arithmetic mean of such quotations. If fewer than two quotations are provided,
then LIBOR for such LIBOR Interest Determination Date will be the arithmetic
mean of the rates quoted as of approximately 11:00 A.M. in the applicable
Principal Financial Center (as defined above), on such LIBOR Interest
Determination Date by

 6
 

three major banks
(which may include affiliates of the Agents) in such Principal Financial Center
selected by the Calculation Agent (after consultation with the Company) for
loans in the applicable Index Currency to leading European banks having the
specified Index Maturity, and in a principal amount equal to an amount of not
less than $1,000,000 (or the equivalent in the Index Currency, if the Index
Currency is not the U.S. dollar) and that is representative for a single
transaction in such market at such time; provided, however, that
if the banks selected as aforesaid by the Calculation Agent are not quoting as
mentioned in this sentence, the rate of interest in effect for the applicable
period will be the same as the interest rate in effect on such LIBOR Interest
Determination Date.

“Index Currency”
means the index currency (including composite currencies) specified above as
the currency for which LIBOR shall be calculated.  If no such index currency is specified above,
the Index Currency shall be U.S. dollars.

Determination
of CD Rate.  If the CD Rate is the Base Rate
specified above, the interest rate payable with respect to this Note shall be
calculated by the Calculation Agent with reference to the CD Rate and the
Spread or Spread Multiplier, if any, specified above, in accordance with the
following provisions:

“CD Rate” means,
with respect to any Interest Determination Date specified below (a “CD Interest
Determination Date”), the rate on such date for negotiable certificates of
deposit having the Index Maturity designated above, as such rate published in
H.15(519) under the caption “CDs (secondary market)” or, if not yet published
by 3:00 P.M., New York City time, on the Calculation Date pertaining to such CD
Interest Determination Date, the CD Rate will be the rate on such CD Interest
Determination Date for negotiable certificates of deposit of the Index Maturity
as published in H.15 Daily Update, or such other recognized electronic source
used for the purpose of displaying the applicable rate, under the caption “CDs
(secondary market)”. If by 3:00 P.M., New York City time, on the Calculation
Date pertaining to such CD Interest Determination Date such rate is not yet
published in either H.15(519) or H.15 Daily Update, then the CD Rate on such CD
Interest Determination Date will be calculated by the Calculation Agent and
will be the arithmetic mean of the secondary market offered rates as of 10:00
A.M., New York City time, on such CD Interest Determination Date, of three
leading non-bank dealers in negotiable U.S. dollar certificates of
deposit in The City of New York (which may include one or more of the Agents or
their affiliates) selected by the Calculation Agent (after consultation with
Disney) for negotiable certificates of deposit of major United States money
market banks for negotiable United States certificates of deposit with a
remaining maturity closest to the Index Maturity specified above in an amount
that is representative for a single transaction in that market at that time; provided, however, that if the dealers selected as aforesaid
by the Calculation Agent are not quoting as set forth above, the rate of
interest in effect for the applicable period will be the same as the interest
rate in effect on such CD Interest Determination Date.

Determination
of Federal Funds Rate.  If the Federal Funds Rate
is the Base Rate specified above, the interest rate payable with respect to
this Note shall be calculated by the Calculation Agent with reference to the
Federal Funds Rate and the Spread or Spread Multiplier, if any, specified
above, in accordance with the following provisions:

“Federal Funds  Rate” means, with
respect  to any Interest Determination
Date  specified below  (a “Federal Funds  Interest Determination Date”), the rate on
such date for Federal Funds as published in H.15(519) under the heading “Federal
Funds (Effective)” and displayed on
Moneyline Telerate (or any successor service) on page 120 (or any other page as
may replace the specified page on that service) (“Telerate Page 120”) or,
if the rate does not so appear on Telerate Page 120 or is not so
published by 3:00 P.M., New York City time, on the Calculation Date pertaining
to such Federal Funds Interest Determination Date, the Federal Funds Rate will
be the rate on such Federal Funds Interest Determination Date for United States dollar federal funds as
published in H.15 Daily Update, or such other recognized electronic source used
for the purpose of displaying the applicable rate, under the caption “Federal
Funds (Effective)”. If, by 3:00 P.M., New York City time, on the
Calculation Date pertaining to such Federal

 7
 

Funds Interest
Determination Date such rate is not yet published in H.15(519), the Federal
Funds Rate for such Federal Funds Interest Determination Date will be
calculated by the Calculation Agent and will be the arithmetic mean of the
rates for the last transaction in overnight United States dollars Federal Funds
arranged by three leading brokers of Federal Funds transactions in The City of
New York (which may include one or more of the Agents or their affiliates),
which brokers have been selected by the Calculation Agent (after consultation
with Disney), as of 9:00 A.M., New York City time, on such Federal Funds
Interest Determination Date; provided, however, that,
if the brokers selected as aforesaid by the Calculation Agent are not quoting
as set forth above, the rate of interest in effect for the applicable period
will be the same as the interest rate in effect on such Federal Funds Interest
Determination Date.

Determination
of Treasury Rate.  If the Treasury Rate is the Base
Rate specified above, the interest rate payable with respect to this Note shall
be calculated by the Calculation Agent with reference to the Treasury Rate and
the Spread or Spread Multiplier, if any, specified above, in accordance with
the following provisions:

“Treasury Rate” means, with respect to any Interest
Determination Date specified below (a “Treasury Rate Interest Determination
Date”), the rate from the auction held on the Treasury Rate Interest
Determination Date (the “Auction”) of direct obligations of the United States (“Treasury
Bills”) having the Index Maturity specified above, under the caption “INVESTMENT RATE” on the display on Moneyline
Telerate (or any successor service) on page 56 (or any other page as may
replace that page on that service) (“Telerate Page 56”) or page 57 (or any
other page as may replace that page on that service) (“Telerate Page 57”), or,
if not published by 3:00 P.M., New York City time, on the Calculation Date
pertaining to such Treasury Rate Interest Determination Date, the Bond Equivalent Yield (as defined below) of
the rate for the applicable Treasury Bills as published in H.15 Daily Update,
or another recognized electronic source used for the purpose of displaying the
applicable rate, under the caption “U.S. Government Securities/Treasury
Bills/Auction High”. If the rate referred to in the preceding sentence is not
so published by 3:00 P.M., New York City time, on the related Calculation
Date, the Treasury Rate for that Treasury Rate Interest Determination Date will
be the Bond Equivalent Yield of the auction rate of the applicable Treasury
Bills as announced by the United States Department of the Treasury. If the rate
referred to in the preceding sentence is not so announced by the United States
Department of the Treasury, or if the Auction is not held, the Treasury Rate
for that Treasury Rate Interest Determination Date will be the Bond Equivalent
Yield of the rate on that Treasury Rate Interest Determination Date of the
applicable Treasury Bills as published in H.15(519) under the caption “U.S.
Government Securities/Treasury Bills/Secondary Market”. If the rate referred to
in the preceding sentence is not so published by 3:00 P.M., New York City
time, on the related Calculation Date, the Treasury Rate for that Treasury Rate
Interest Determination Date will be the rate on that Treasury Rate Interest
Determination Date of the applicable Treasury Bills as published in H.15 Daily
Update, or another recognized electronic source used for the purpose of
displaying the applicable rate, under the caption “U.S. Government
Securities/Treasury Bills/Secondary Market”. 
If the rate referred to in the preceding sentence is not so published by
3:00 P.M., New York City time, on the related Calculation Date, the
Treasury Rate for that Treasury Rate Interest Determination Date will be the
rate on that Treasury Rate Interest Determination Date calculated by the
Calculation Agent as the Bond Equivalent Yield of the arithmetic mean of
the secondary market bid rates, as of approximately 3:30 P.M., New York City
time, on such Treasury Rate Interest Determination Date, of three leading
primary United States government securities dealers (which may include one or
more of the Agents or their affiliates) selected by the Calculation Agent
(after consultation with the Company), for the issue of Treasury Bills with a
remaining maturity closest to the Index Maturity specified above; provided, however, that if the dealers selected as aforesaid
by the Calculation Agent are not quoting as set forth in this sentence, the
rate of interest in effect for the applicable period will be the same as the
interest rate in effect on such Treasury Rate Interest Determination Date.

 8
 

“Bond Equivalent Yield” means a yield (expressed as a percentage)
calculated in accordance with the following formula:

	
  Bond Equivalent Yield         =

  	
  D X N

  	
   X

  	
   100

  
	
  360 - (D X M)

  

 

where “D” refers to the applicable per annum rate for Treasury Bills
quoted on a bank discount basis and expressed as a decimal, “N” refers to 365
or 366, as the case may be, and “M” refers to the actual number of days in the
applicable Interest Reset Period.

Determination
of Prime Rate.  If the Prime Rate is the Base Rate
or one of the Base Rates specified above, the interest rate payable with
respect to this Note shall be calculated by the Calculation Agent with
reference to the Prime Rate and the Spread or Spread Multiplier, if any,
specified above, in accordance with the following provisions:

“Prime Rate”
means, with respect to any Interest Determination Date specified below (a “Prime
Rate Interest Determination Date”), the rate published in H.15(519) for such
date under the caption “Bank Prime Loan” or, if not so published by 3:00 P.M.,
New York City time, on the Calculation Date pertaining to that Prime Rate
Interest Determination Date, the rate on that Prime Rate Interest Determination
Date as published in H.15 Daily Update or such other recognized electronic
source used for the purpose of displaying the applicable rate, under the
caption “Bank Prime Loan”.  If neither
rate is so published by 3:00 P.M., New York City time, on the Calculation Date,
the Prime Rate for such Prime Rate Interest Determination Date will be
calculated by the Calculation Agent as the arithmetic mean of the rates of
interest publicly announced by each bank that appears on the Reuters Screen
USPRIME1 (as defined below) as such bank’s prime rate or base lending rate as
of 11:00 A.M., New York City time, on such Prime Rate Interest Determination
Date, or if fewer than four such rates appear on the Reuters Screen USPRIME1
for such Prime Rate Interest Determination Date, the rate shall be the
arithmetic mean of the prime rates quoted on the basis of the actual number of
days in the year divided by 360 as of the close of business on such Prime Rate
Interest Determination Date by three major banks (which may include one or more
of the Agents or their affiliates) in The City of New York selected by the
Calculation Agent (after consultation with Disney). If the banks selected by the Calculation Agent are not quoting
as mentioned in the preceding sentence, the “Prime Rate” for the Interest Reset
Period will be the same as the Prime Rate for the immediately preceding
Interest Reset Period (or, if there was no such Interest Reset Period, the rate
of interest payable on the Prime Rate notes for which the Prime Rate is being
determined shall be the Initial Interest Rate). Unless otherwise
specified in the applicable Pricing Supplement, “Reuters Screen USPRIME1” means
the display designated as page “USPRIME1” on the Reuters Monitor Money Rates
Service, or any successor service or page, for the purpose of displaying prime
rates or base lending rates of major United States banks.

Determination
of CMT Rate.  If CMT
Rate is the Base Rate or one of the Base Rates specified above, the interest
rate payable with respect to this Note shall be calculated by the Calculation
Agent with reference to the CMT Rate and the Spread or Spread Multiplier, if
any, specified above, in accordance with the following provisions:

“CMT Rate” means, with respect to any Interest Determination Date
specified below (a “CMT Interest Determination Date”) relating to a CMT Rate
Note or any Floating Rate Note for which the interest rate is determined with
reference to the CMT Rate, if CMT Telerate
Page 7051 is specified above:

(a)                                  the percentage equal to the yield for United
States Treasury securities at “constant maturity” having the Index Maturity
specified above as published in H.15(519) under the caption “Treasury
Constant Maturities”, as the yield is displayed on Moneyline Telerate  (or any successor service) on page 7051 (or
any other page as may replace the specified page on that service) (“Telerate
Page 7051”), for that CMT Interest Determination Date, or

 9
 

(b)                                 if the rate referred to in clause (a) does
not so appear on Telerate Page 7051, the percentage equal to the yield for
United States Treasury securities at “constant maturity” having the particular
index maturity and for that CMT Interest Determination Date as published in
H.15(519) under the caption “Treasury Constant Maturities”, or

(c)                                  if the rate referred to in clause (b) does
not so appear in H.15(519), the rate on that CMT Interest Determination Date
for the period of the particular Index Maturity as may then be published by
either the Federal Reserve System Board of Governors or the United States
Department of the Treasury that the Calculation Agent determines to be
comparable to the rate which would otherwise have been published in H.15(519),
or

(d)                                 if the rate referred to in clause (c) is not
so published, the rate on that CMT Interest Determination Date calculated by
the Calculation Agent as a yield to maturity based on the arithmetic mean of
the secondary market bid prices at approximately 3:30 P.M., New York City
time, on that CMT Interest Determination Date of three leading primary United
States government securities dealers in The City of New York (which may include
one or more of the Agents or their affiliates) (each, a “Reference Dealer”),
selected by the Calculation Agent from five Reference Dealers selected by the
Calculation Agent and eliminating the highest quotation, or, in the event of
equality, one of the highest, and the lowest quotation or, in the event of
equality, one of the lowest, for United States Treasury securities with an original
maturity equal to the particular Index Maturity, a remaining term to maturity
no more than one year shorter than that Index Maturity and in a principal
amount that is representative for a single transaction in the securities in
that market at that time, or

(e)                                  if fewer than five but more than two of the
prices referred to in clause (d) are provided as requested, the rate on
that CMT Interest Determination Date calculated by the Calculation Agent based
on the arithmetic mean of the bid prices obtained and neither the highest nor
the lowest of the quotations shall be eliminated, or

(f)                                    if fewer than three prices referred to in
clause (d) are provided as requested, the rate on that CMT Interest
Determination Date calculated by the Calculation Agent as a yield to maturity
based on the arithmetic mean of the secondary market bid prices as of
approximately 3:30 P.M., New York City time, on that CMT Interest
Determination Date of three Reference Dealers selected by the Calculation Agent
from five Reference Dealers selected by the Calculation Agent and eliminating
the highest quotation or, in the event of equality, one of the highest and the
lowest quotation or, in the event of equality, one of the lowest, for United
States Treasury securities with an original maturity greater than the
particular Index Maturity, a remaining term to maturity closest to that Index
Maturity and in a principal amount that is representative for a single
transaction in the securities in that market at that time, or

(g)                                 if fewer than five but more than two prices
referred to in clause (f) are provided as requested, the rate on that CMT
Interest Determination Date calculated by the Calculation Agent based on the
arithmetic mean of the bid prices obtained and neither the highest nor the lowest
of the quotations will be eliminated, or

(h)                                 if fewer than three prices referred to in
clause (f) are provided as requested, the CMT Rate in effect on that CMT
Interest Determination Date;

if CMT Telerate Page 7052 is
specified above:

(a)                                  the percentage equal to the one-week or
one-month, as specified above, average yield for United States Treasury
securities at “constant maturity” having the Index Maturity specified above as
published in H.15(519) opposite the caption “Treasury Constant Maturities”,
as the yield is displayed on

 10

Moneyline Telerate (or any successor service) (on page 7052 or any
other page as may replace the specified page on that service) (“Telerate Page
7052”), for the week or month, as applicable, ended immediately preceding the
week or month, as applicable, in which that CMT Interest Determination Date
falls, or

(b)                                 if the rate referred to in clause (a) does
not so appear on Telerate Page 7052, the percentage equal to the one-week or
one-month, as specified above, average yield for United States Treasury securities
at “constant maturity” having the particular Index Maturity and for the week or
month, as applicable, preceding that CMT Interest Determination Date as
published in H.15(519) opposite the caption “Treasury Constant Maturities,”
or

(c)                                  if the rate referred to in clause (b) does
not so appear in H.15(519), the one-week or one-month, as specified above,
average yield for United States Treasury securities at “constant maturity”
having the particular Index Maturity as otherwise announced by the Federal
Reserve Bank of New York for the week or month, as applicable, ended
immediately preceding the week or month, as applicable, in which that CMT
Interest Determination Date falls, or

(d)                                 if the rate referred to in clause (c) is not
so published, the rate on that CMT Interest Determination Date calculated by
the Calculation Agent as a yield to maturity based on the arithmetic mean of
the secondary market bid prices at approximately 3:30 P.M., New York City
time, on that CMT Interest Determination Date of three Reference Dealers
selected by the Calculation Agent from five Reference Dealers selected by the
Calculation Agent and eliminating the highest quotation, or, in the event of
equality, one of the highest, and the lowest quotation or, in the event of
equality, one of the lowest, for United States Treasury securities with an
original maturity equal to the particular Index Maturity, a remaining term to
maturity no more than one year shorter than that Index Maturity and in a
principal amount that is representative for a single transaction in the
securities in that market at that time, or

(e)                                  if fewer than five but more than two of the
prices referred to in clause (d) are provided as requested, the rate on
that CMT Interest Determination Date calculated by the Calculation Agent based
on the arithmetic mean of the bid prices obtained and neither the highest nor
the lowest of the quotations shall be eliminated, or

(f)                                    if fewer than three prices referred to in
clause (d) are provided as requested, the rate on that CMT Interest
Determination Date calculated by the Calculation Agent as a yield to maturity
based on the arithmetic mean of the secondary market bid prices as of
approximately 3:30 P.M., New York City time, on that CMT Interest
Determination Date of three Reference Dealers selected by the Calculation Agent
from five Reference Dealers selected by the Calculation Agent and eliminating
the highest quotation or, in the event of equality, one of the highest and the
lowest quotation or, in the event of equality, one of the lowest, for United
States Treasury securities with an original maturity greater than the
particular Index Maturity, a remaining term to maturity closest to that Index
Maturity and in a principal amount that is representative for a single
transaction in the securities in that market at the time, or

(g)                                 if fewer than five but more than two prices
referred to in clause (f) are provided as requested, the rate on that CMT
Interest Determination Date calculated by the Calculation Agent based on the
arithmetic mean of the bid prices obtained and neither the highest or the
lowest of the quotations will be eliminated, or

(h)                                 if fewer than three prices referred to in
clause (f) are provided as requested, the CMT Rate in effect on that CMT
Interest Determination Date.

If two United States Treasury securities with an original maturity
greater than the Index Maturity specified above have remaining terms to
maturity equally close to the particular Index Maturity, the quotes for the
United States Treasury security with the shorter original remaining term to
maturity will be used.

 11
 

Determination of J.J. Kenny Rate.
If the J.J. Kenny Rate is the Base Rate or
one of the Base Rates specified above, the interest rate payable with respect
to this Note shall be calculated by the Calculation Agent with reference to the
J.J. Kenny Rate and the Spread or Spread Multiplier, if any, specified above,
in accordance with the following provisions:

“J.J. Kenny Rate” means, with respect to any Interest
Determination Date specified below (a “J.J. Kenny Rate Interest Determination
Date”), the per annum rate on the date equal to the index made available and
subsequently published by Kenny Information Systems or its successor. The rate
will be based upon 30-day yield evaluations at par of bonds of not less
than five “high grade” component issuers. The bonds evaluated will be bonds on
which the interest is excludable from gross income for federal income tax
purposes under the Internal Revenue Code of 1986. Kenny Information Systems
will select such issuers from time to time, including issuers of general
obligation bonds. However, the bonds on which the index is based will not
include any bonds the interest on which may trigger an “alternative minimum tax”
or similar tax under the Code, unless such tax may be imposed on all tax-exempt
bonds. If such rate is not made available
by 3:00 P.M., New York City time, on the Calculation Date pertaining to that
J.J. Kenny Interest Determination Date, the J.J. Kenny Rate will be the rate
quoted by a successor indexing agent selected by the Calculation Agent (after
consultation with Disney). This rate will be equal to the prevailing rate for
bonds included in the highest short-term rating category by Moody’s
Investors Service, Inc. and Standard & Poor’s Corporation for issuers
selected by such successor indexing agent most closely resembling the “high
grade” component issuers selected by Kenny Information Systems. The bonds for
which rates are quoted will be bonds that may be tendered by their holders for
purchase on not more than seven days’ notice and the interest on which: is
variable on a weekly basis; is excludable from gross income for federal income
tax purposes under the Code; and does not give rise to an “alternate minimum
tax” or similar tax under the Code, unless all tax-exempt bonds give rise
to such a tax. If a successor indexing agent is not available, the J.J. Kenny
Rate on the J.J. Kenny Interest Determination Date will be the J.J. Kenny Rate
for the immediately preceding Interest Reset Period. If there was no such
Interest Reset Period, the J.J. Kenny Rate will be the Initial Interest Rate.

Determination of Eleventh
District Cost of Funds Rate.  If the Eleventh District Cost of Funds Rate
is the Base Rate or one of the Base Rates specified above, the interest rate
payable with respect to this Note shall be calculated by the Calculation Agent
with reference to the Eleventh District Cost of Funds Rate and the Spread or
Spread Multiplier, if any, specified above, in accordance with the following
provisions:

“Eleventh District
Cost of Funds Rate” means, with respect to any Interest Determination Date
specified below (an “Eleventh District Cost of Funds Interest Determination
Date”), the rate equal to the monthly weighted average cost of funds for the
calendar month immediately preceding the month in which the Eleventh District
Cost of Funds Interest Determination Date falls as set forth under the caption “11th District”
on the display on Moneyline Telerate (or any successor service) on page 7058
(or any other page as may replace the specified page on that service) (“Telerate
Page 7058”) as of 11:00 A.M., San Francisco time, on the Eleventh District
Cost of Funds Interest Determination Date. If such rate does not appear on
Telerate page 7058 on any related Eleventh District Cost of Funds Interest
Determination Date, the Eleventh District Cost of Funds Rate for the Eleventh
District Cost of Funds Interest Determination Date will be the Eleventh
District Cost of Funds Rate Index. If the FHLB of San Francisco fails to
announce the rate for the calendar month next preceding the Eleventh District
Cost of Funds Interest Determination Date, then the Eleventh District Cost of
Funds Rate for that date will be the Eleventh District Cost of Funds Rate in
effect on that Eleventh District Cost of Funds Interest Determination Date.

The “Eleventh District Cost of Funds Rate Index”
will be the monthly weighted average cost of funds paid by member institutions
of the Eleventh Federal Home Loan Bank District that the FHLB of San Francisco
most recently announced as the cost of funds for the calendar month preceding
the date of the announcement.

Determination of EURIBOR.  If EURIBOR is the Base Rate or one of the Base Rates specified above,
the interest

 12
 

rate payable with respect to
this Note shall be calculated by the Calculation Agent with reference to
EURIBOR and the Spread or Spread Multiplier, if any, specified above, in
accordance with the following provisions:

“EURIBOR” means,
with respect to any Interest Determination Date specified below (a “EURIBOR
Interest Determination Date”), the offered
rates for deposits in Euros for the period of the Index Maturity specified
above, commencing on the Interest Reset Date, which appears on page 248 on
Moneyline Telerate, or any successor service or any page that may replace
page 248 on that service, which is commonly referred to as “Telerate
Page 248” as of 11:00 A.M., Brussels time, on that date.  If EURIBOR cannot be determined on a EURIBOR
Interest Determination Date as described in the preceding sentence, then the
Calculation Agent will select four major banks in the Euro-zone interbank
market and request that the principal Euro-zone offices of those four
selected banks provide their offered quotations to prime banks in the Euro-zone
interbank market at approximately 11:00 A.M., Brussels time, on the
EURIBOR Determination Date. These quotations shall be for deposits in Euros for
the period of the specified Index Maturity, commencing on such Interest Reset
Date. Offered quotations must be based on a principal amount equal to at least
$1,000,000 or the approximate equivalent in Euros that is representative of a
single transaction in such market at such time. If two or more quotations are
provided, EURIBOR for the Interest Reset Period will be the arithmetic mean of
the quotations. If fewer than two quotations are provided, the Calculation
Agent will select four major banks in the Euro-zone and then determine
EURIBOR for the Interest Reset Period as the arithmetic mean of rates quoted by
those four major banks in the Euro-zone to leading European banks at
approximately 11:00 A.M., Brussels time, on the EURIBOR Determination
Date. The rates quoted will be for loans in Euros, for the period of the
specified Index Maturity, commencing on the Interest Reset Date. Rates quoted
must be based on a principal amount of at least $1,000,000 or the approximate
equivalent in Euros that is representative of a single transaction in such
market at such time.  If the banks so
selected by the Calculation Agent are not quoting rates as described above,
EURIBOR for the Interest Reset Period will be the same for the immediately
preceding Interest Reset Period. If there was no such Interest Reset Period,
EURIBOR will be the Initial Interest Rate.

“Euro-zone” means the region comprised of member states of the
European Union that adopt the single currency in accordance with the Treaty
establishing the European Community, as amended by the Treaty on European
Union.

Renewable
Notes.  If this Note is
designated as a Renew­able Note above (a “Renewable Note”), the following
provisions will apply:

A Renewable Note
will bear interest at the Base Rate specified above and the interest rate
payable with respect to a Renewable Note shall be calculated by the Calculation
Agent with reference to the specified Base Rate or Base Rates and the Spread or
Spread Multiplier, if any, speci­fied above.

A Renewable Note
will mature on an Interest Payment Date as specified above (the “Initial
Maturity Date”), unless the maturity of all or any portion of the principal
amount hereof is extended in accordance with the procedures described
below.  On the Interest Payment Dates
specified above (each such Interest Payment Date, an “Election Date”), the
maturity of a Renewable Note will be extended to the Interest Payment Date
occurring twelve months after such Election Date, unless the Holder hereof
elects to terminate the automatic extension of the maturity of a Renewable Note
or of any portion hereof having a principal amount of $1,000 or any multiple of
$1,000 in excess thereof by delivering a notice of such effect to the Trustee
not less than nor more than a number of days to be specified in the Pricing
Supplement prior to such Election Date. 
If no notice period is specified in the Pricing Supplement, such notice
shall be given no less than 30 days and no more than 60 days prior to such
Election Date.  Such option may be
exercised with respect to less than the entire principal amount of a Renewable
Note; provided that the principal amount for which such option is not exercised
is at least $1,000 or any larger amount that is an integral multiple of
$1,000.  Notwithstanding the foregoing,
the maturity of a Renewable Note may not be extended beyond the Final Maturity
Date specified above (the “Final Maturity Date”).  If the Holder hereof elects to

 13
 

terminate the
automatic extension of the maturity of any portion of the principal amount of a
Renewable Note and such election is not revoked as described below, such
portion will become due and payable on the Interest Payment Date falling six
months (unless another period is specified in the Pricing Supplement) after the
Election Date prior to which the Holder made such election.

An election to
terminate the automatic extension of maturity may be revoked as to any portion
of a Renewable Note having a principal amount of $1,000 or any multiple of
$1,000 in excess thereof by delivering a notice to such effect to the Trustee
on any day following the effective date of the election to terminate the
automatic extension of maturity and prior to the date 15 days before the date
on which such portion would otherwise mature. 
Such a revocation may be made for less than the entire principal amount
of a Renewable Note for which the automatic extension of maturity has been terminated;
provided that the principal amount of a Renewable Note for which the automatic
extension of maturity has been terminated and for which such a revocation has
not been made is at least $1,000 or any larger amount that is an integral
multiple of $1,000. Notwithstanding the foregoing, a revocation may not be made
during the period from and including a Record Date to but excluding the
immediately succeeding Interest Payment Date.

An election to
terminate the automatic extension of the maturity of a Renewable Note, if not
revoked as described above by the Holder hereof making the election or any
subsequent Holder, will be binding upon such subsequent Holder.

A Renewable Note
may be redeemed in whole or in part at the option of the Company on the Interest
Payment Dates in each year specified above, commencing with the Interest
Payment Date specified above, at a redemption price as stated above, together
with accrued and unpaid interest to the date of redemption.  Notwithstanding anything to the contrary herein,
notice of redemption will be provided by mailing a notice of such redemption to
each Holder by first class mail, postage prepaid, at least 180 days (unless
otherwise specified in the Pricing Supplement) prior to the date fixed for
redemption.

Applicable
Interest Determination Date and Calculation Date.  The interest rate applicable to each Interest
Reset Period commencing on the Interest Reset Date or Dates with respect to
such Interest Reset Period will be the rate determined on the applicable “Interest
Determination Date.” The Commercial 
Paper Interest  Determination  Date, the Federal Funds Interest
Determination Date and the Prime Rate Interest Determination Date will be the
Business Day preceding each Interest Reset Date.  The CD Interest Determination Date, the CMT
Interest Determination Date and the J.J. Kenny Interest Determination Date will
be the second Business Day preceding such Interest Reset Date. The LIBOR
Interest Determination Date will be the second London Business Day preceding such
Interest Reset Date. The EURIBOR Interest Determination Date will be the second
TARGET Business Day preceding such Interest Reset Date.  The Eleventh District Cost of Funds Interest
Determination Date will be the last working day of the month immediately
preceding each Interest Reset Date on which the Federal Home Loan Bank of San
Francisco publishes the Eleventh District Cost of Funds Index.  The Treasury Rate Interest Determination Date
will be the day in the week in which the Interest Reset Date falls on which day
Treasury Bills would normally be auctioned or, if no such auction is held for a
particular week, the first Business Day of that week; provided,
however, that if, as a result of a legal holiday, an auction is held
on the Friday of the week preceding the Interest Reset Date, the related
Interest Determination Date shall be such preceding Friday; and provided, further, that if an auction shall fall on any
Interest Reset Date, then the Interest Reset Date shall instead be the first
Business Day immediately following such auction. The Interest Determination
Date pertaining to a Note the interest rate of which is determined with
reference to two or more Base Rates will be the latest Business Day which is at
least two Business Days prior to such Interest Reset Date for such a Note on
which each Base Rate shall be determinable. Each Base Rate shall be determined
and compared on such date, and the applicable interest rate shall take effect
on the related Interest Reset Date.

The “Calculation
Date,” if applicable, pertaining to any Interest Determination Date, shall be
the earlier of (a) the tenth calendar day after such Interest Determination
Date, or, if any such day is not a Business Day, the next

 14
 

succeeding
Business Day and (b) the Business Day preceding the applicable Interest Payment
Date or Maturity Date, as the case may be. The Trustee will, upon the request
of the Holder of this Note, provide to such Holder the interest rate hereon
then in effect and, if determined, the interest rate that will become effective
as a result of the determination made for the next Interest Reset Date.

The Calculation
Agent shall calculate the interest rate on this Note in accordance with the
foregoing rate or rates on or before each Calculation Date and shall promptly thereafter
notify the Company of such interest rate. Any such calculation by the
Calculation Agent shall be conclusive and binding on the Company, the Trustee
and the Holder of this Note, absent manifest error.

Interest payments
for this Note will include interest accrued to but excluding the Interest
Payment Date. Accrued interest hereon from the Original Issue Date or from the
last date to which interest hereon has been paid or duly provided for, as the
case may be, shall be an amount calculated by multiplying the face amount
hereof by an accrued interest factor. Such accrued interest factor shall be
computed by adding the interest factor calculated for each day from the
Original Issue Date or from the last date to which interest shall have been
paid or duly provided for, to the date for which accrued interest is being
calculated. The interest factor for each such day shall be computed by dividing
the interest rate applicable to such day by 360, in the case of the Commercial
Paper Rate, LIBOR, CD Rate, Federal Funds Rate, Prime Rate, J.J. Kenny Rate,
Eleventh District Cost of Funds Rate and EURIBOR and by the actual number of
days in the year, in the case of the Treasury Rate and CMT Rate. Unless
otherwise specified above, if the interest rate for this Note is calculated
with reference to two or more Base Rates, the interest factor for this Note
will be calculated in each period in the same manner as if only the lowest of
the applicable Base Rates applied.

If an Event of
Default with respect to the Notes shall occur and be continuing, the principal
of the Notes may be declared due and payable in the manner and with the effect
provided in the Indenture.

The Indenture
permits, in certain circumstances therein specified, the amendment thereof
without the consent of the Holders of the Securities. The Indenture also
permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations under the Indenture of the
Company and the rights of Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of a majority in aggregate principal amount of the
Securities at the time Outstanding of each series to be affected. The Indenture
also contains provisions permitting the Holders of a majority in aggregate
principal amount of the Securities of each series at the time Outstanding, on
behalf of the Holders of all the Securities of such series, to waive compliance
by the Company with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of
this Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of
such consent or waiver is made upon this Note.

No reference
herein to the Indenture and no provision of this Note or, subject to the
provisions for satisfaction and discharge in Article Eight of the Indenture, of
the Indenture, shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note
at the times, place and rate, and in the coin or currency, herein prescribed.

As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of
Notes is registrable in the register of Securities, upon surrender of a Note
for registration of transfer at the office or agency of the Company maintained
for that purpose, initially designated to be the Corporate Trust Office of the
Trustee in Los Angeles, California, and at such additional offices or agencies
as the Company may designate, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Registrar
duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Notes of like tenor, of authorized denominations
and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

 15
 

No service charge
shall be made by the Company, the Trustee or the Registrar for any such
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge payable in
connection therewith (other than exchanges pursuant to Sections 2.11, 3.6,
9.5 or 10.3 of the Indenture, not involving any transfer).

Prior to due presentment
of this Note for registration of transfer, the Company, the Trustee and any
agent of the Company or the Trustee may treat the Person in whose name this
Note is registered as the owner hereof for all purposes, whether or not this
Note be overdue, and neither the Company, the Trustee nor any such agent shall
be affected by notice to the contrary.

The Indenture and
the Notes shall be governed by and construed in accordance with the laws of the
State of New York, including without limitation, §§ 5-1401 and 5-1402 of
the New York General Obligations Law and New York Civil Practice Law Rule
327(b).

All undefined
terms used in this Note which are defined in the Indenture shall have the
meanings assigned to them in the Indenture.

 16
 

IN WITNESS
WHEREOF, The Walt Disney Company has caused this Instrument to be signed by the
signature or facsimile signature of its Chairman of the Board, one of its Vice
Chairmen, its President or one of its Vice Presidents, or its Treasurer or any
Assistant Treasurer and attested by its Secretary or one of its Assistant
Secretaries by his or her signature or a facsimile thereof, and its corporate
seal or a facsimile of its corporate seal to be affixed hereunto or imprinted
hereon.

	
  (SEAL)

  	
  THE WALT DISNEY COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Christine M. McCarthy

  
	
   

  	
  Title:

  	
  Executive Vice President-Corporate Finance and Real
  Estate and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Marsha L. Reed

  	
   

  
	
  Title:

  	
  Vice President-Governance Administration and
  Assistant Secretary

  	
   

  
							

 

 17
 

ABBREVIATIONS

The following
abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to
applicable laws or regulations:

	
  TEN COM v as tenants in common

  	
  UNIF GIFT MIN ACT
       Custodian      

  
	
   

  	
   

  	
  (Cust.)

  	
  (Minor)

  	 

	
   

  	
   

  
	
   TEN ENT v as
  tenants by the entireties

  	
   

  
	
   

  	
  Under Uniform Gifts to Minors Act

  
	
   

  	
   

  
	
     JT TEN v as joint tenants with right

  	
   

  
	
   

  	
  of survivorship and not as tenants

  	
   

  	
   

  
	
   

  	
  in common

  	
  (State)

  	
   

  
							

 

Additional
abbreviations may also be used though not in the above list.

 

FOR VALUE
RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

  Please
Insert Social Security or Employer

  Identification
Number of Assignee

                          -                  -                           

Please Print or
Typewrite Name and Address

Including Postal
Zip Code of Assignee

 

the within
Security and all rights thereunder, hereby irrevocably constituting and
appointing                                     attorney
to transfer said Security on the books of the Company, with full power of
substitution in the premises.

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  

 

 

	
  NOTICE:

  	
  The signature to this assignment must correspond
  with the name as it appears upon the face of the within Note in every
  particular, without alteration or enlargement or any change whatever.

  

 

 18

THE
WALT DISNEY COMPANY

ADDENDUM
TO MEDIUM-TERM NOTE

                    Floating
Rate                    

The following provisions shall be of the same force
and effect as if set forth in the Medium-Term Note of the Walt Disney Company
to which this Addendum is attached.

This Note constitutes a portion of the Company’s Floating Rate Global
Notes due 2010, issued by the Company on the Original Issue Date specified
above in the aggregate principal amount of $750,000,000 (the “Floating Rate
Notes”).  The Company will, subject to
certain exceptions and limitations set forth below, pay to the Holder of any
Floating Rate Note who is a United States Alien, as additional interest, such
amounts (“Additional Amounts”) as may be necessary in order that every net
payment on such Floating Rate Note (including payment of the principal of and
interest on such Floating Rate Note) by the Company or a Paying Agent, after
deduction or withholding for or on account of any present or future tax,
assessment or other governmental charge imposed upon or as a result of such
payment by the United States (or any political subdivision or taxing authority
thereof or therein), will not be less than the amount provided in such Floating
Rate Note to be then due and payable; provided, however, that the foregoing
obligation to pay Additional Amounts will not apply to:

(a)           any tax, assessment or other
governmental charge that would not have been so imposed but for (i) the
existence of any present or former connection between such Holder or beneficial
owner of such Floating Rate Note (or between a fiduciary, settlor or
beneficiary of, or a person holding a power over, such Holder, if such Holder
is an estate or a trust, or a member or shareholder of such Holder, if such
Holder is a partnership or corporation) and the United States or any political
subdivision or taxing authority thereof or therein, including, without
limitation, such Holder (or such fiduciary, settlor, beneficiary, person
holding a power, member or shareholder) being or having been a citizen or
resident of the United States or treated as a resident thereof or being or
having been engaged in a trade or business or present therein or having or
having had a permanent establishment therein or (ii) such Holder’s or
beneficial owner’s past or present status, as applicable (under prior or
current law), as a personal holding company, foreign personal holding company,
foreign private foundation or other foreign tax-exempt organization with
respect to the United States, controlled foreign corporation for United States
tax purposes or corporation that accumulates earnings to avoid United States
Federal income tax;

 

(b)           any estate, inheritance, gift,
excise, sales, transfer, wealth or personal property tax or any similar tax,
assessment or other governmental charge;

(c)           any tax, assessment or other
governmental charge that would not have been imposed but for the presentation
by the Holder of a Floating Rate Note for payment more than 30 days after
the date on which such payment became due and payable or the date on which
payment thereof was duly provided for, whichever occurred later;

(d)           any tax, assessment or other
governmental charge that is payable otherwise than by withholding from a
payment on a Floating Rate Note;

(e)           any tax, assessment or other
governmental charge required to be withheld by any Paying Agent from a payment
on a Floating Rate Note, if such payment can be made without such withholding
by any other Paying Agent;

(f)            any tax, assessment or other
governmental charge that would not have been imposed but for a failure to
comply with applicable certification, information, documentation,
identification or other reporting requirements concerning the nationality,
residence, identity or connection with the United States of the Holder or
beneficial owner of a Floating Rate Note if such compliance is required by
statute or regulation of the United States or by an applicable tax treaty to
which the United States is a party as a precondition to relief or exemption
from such tax, assessment or other governmental charge;

(g)           any tax, assessment or other
governmental charge imposed on a Holder that actually or constructively owns
10 percent or more of the combined voting power of all classes of the
Company’s stock or that is a bank receiving interest on an extension of credit
made pursuant to a loan agreement entered into in the ordinary course of its
trade or business;

(h)           any withholding or deduction imposed
on a payment to an individual where such withholding or deduction is required
to be made pursuant to Council Directive 2003/48/EC or any other European Union
Directive implementing the conclusions of the ECOFIN Council meeting of 26th — 27th November, 2000 on the taxation of savings
income or any law implementing or complying with, or introduced in order to
conform to, such Directive; or

(i)            any combination of items (a),
(b), (c), (d), (e), (f), (g) and (h);

 2
 

 

nor shall Additional Amounts be paid with respect to a
payment on a Floating Rate Note to a Holder that is a fiduciary or partnership
or other than the sole beneficial owner of such payment to the extent a
beneficiary or settlor with respect to such fiduciary or a member of such
partnership or a beneficial owner would not have been entitled to Additional
Amounts (or payment of Additional Amounts would not have been necessary) had
such beneficiary, settlor, member or beneficial owner been the Holder of such
Floating Rate Note.

A “United States Alien”
means any person that, for United States Federal income tax purposes, is a
foreign corporation, a non-resident alien individual, a non-resident alien
fiduciary of a foreign estate or trust, or a foreign partnership one or more of
the members of which is, for United States Federal income tax purposes, a
foreign corporation, a non-resident alien individual or a non-resident alien
fiduciary of a foreign estate or trust. “United States” means the United States
of America (including the States and the District of Columbia) and its
territories, its possessions and other areas subject to its jurisdiction.

If (a) as a result
of any change in, or amendment to, the laws (or any regulations or rulings
promulgated thereunder) of the United States (or any political subdivision or
taxing authority thereof or therein), or any change in the official application
(including a ruling by a court of competent jurisdiction in the United States)
or interpretation of such laws, regulations or rulings, which change or
amendment is announced or becomes effective on or after the Original Issue Date
specified above, the Company becomes or will become obligated to pay Additional
Amounts as described above, or (b) any act is taken by a taxing authority
of the United States on or after the Original Issue Date specified above,
whether or not such act is taken with respect to the Company or any affiliate,
that results in a substantial likelihood that the Company will or may be
required to pay such Additional Amounts, then the Company may, at its option,
redeem, as a whole, but not in part, the Floating Rate Notes on not less than 30
nor more than 60 days’ prior notice, at a redemption price equal to 100%
of their principal amount, together with interest accrued thereon to the date
fixed for redemption; provided that the Company determines, in its business
judgment, that the obligation to pay such Additional Amounts cannot be avoided
by the use of reasonable measures available to it, not including substitution
of the obligor under the Floating Rate Notes or any action that would entail a
material cost to the Company.  No
redemption pursuant to (b) above may be made unless the Company shall have
received an opinion of independent counsel to the effect that an act taken by a
taxing authority of the United States results in a substantial likelihood that
it will or may be required to pay Additional Amounts described above and the
Company shall have delivered to the Trustee a certificate, signed by a duly
authorized officer, stating that based on such opinion the Company is entitled
to redeem the Floating Rate Notes pursuant to their terms.

 

 3ex4-6.htm

    
       

       

      Exhibit
        4.6

       

       

       

       

       

       

      NINETOWNS
        DIGITAL WORLD TRADE HOLDINGS LIMITED

       

      2006
        SHARE INCENTIVE PLAN

       

       

       

       

       

       

       

       

      As
        approved by 

       

      the
        Board of Directors on October 21, 2005

       

       

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

       

      NINETOWNS
        DIGITAL WORLD TRADE HOLDINGS LIMITED

      2006
        SHARE INCENTIVE
        PLAN

       

      
        	
                1.

              	
                Establishment,
                  Purpose, and Types of
                  Awards

              

      

      Ninetowns
        Digital World Trade Holdings Limited, a company incorporated
        under the laws of the Cayman Islands (the “Company”) hereby establishes
        this equity-based
        incentive compensation plan to be known as the “Ninetowns Digital World Trade
        Holdings Limited 2006 Share Incentive Plan” (hereinafter referred to as the
“Plan”), for the following
        purposes:

       

      
        	
                 

              	
                -

                 

              	
                to
                  enhance the Company’s ability to attract highly qualified
                  personnel on a global basis;

              

      

      
        	
                 

              	
                -

                 

              	
                to
                  strengthen its retention
                  capabilities;

              

      

      
        	
                 

                 

              	
                -

                 

              	
                to
                  enhance the long-term performance and competitiveness of the
                  Company and its domestic and international subsidiaries;

                 

              

      

      
        	
                 

                 

              	
                -

                 

              	
                to
                  align the interests of Participants with those of stockholders;
                  and

                 

              

      

      
        	
                 

                 

              	
                -

                 

              	
                to
                  provide certain “performance-based compensation.”

                 

              

      

      (a)         Awards.
        The Plan permits the granting of the
        following types of awards (“Awards”), according to the
        Sections of the Plan listed here:

      
        	
                Section
                  6

                 

              	
                Stock
                  Options

                 

              
	
                Section
                  7

                 

              	
                Share
                  Appreciation Rights

                 

              
	
                Section
                  8

                 

              	
                Restricted
                  Shares, Restricted Share Units, and 
Unrestricted
                  Shares

                 

              
	
                Section
                  9

                 

              	
                [Reserved
                  for future use]

                 

              
	
                Section
                  10

                 

              	
                Performance
                  Awards

                 

              
	
                 

                 

              	
                 

                 

              

      (b)         Appendices.
        Incorporated by reference and thereby
        part of the Plan are the terms set forth in the following appendices:

      
        	
                Appendix
                  I

                 

              	
                Definitions

                 

              
	
                Appendix
                  II

                 

              	
                China
                  Sub-Plan 

                 

              
	
                Appendix
                  III

                 

              	
                Hong
                  Kong Sub-Plan

                 

              
	
                 

                 

              	
                 

                 

              

      

      (c)        Effect
        on Other Plans. The Plan shall not effect
        any stock options, equity-based compensation, or other benefits that the
        Company
        or its Affiliates may have provided under any Share-based compensation plans
        that the Company or its Affiliates sponsor, including but not limited to
        the
        Company’s 2004 Share Option Plan.

      
        	
                 

                 

              	
                -1-

                 

              

      

       

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        	
                2.

              	
                Defined
                  Terms

              

      

      Terms
        in the Plan that begin with an initial capital letter have the
        defined meaning set forth in Appendix
        I, unless defined elsewhere in this Plan
        or the
        context of their use clearly indicates a different meaning.

      
        	
                3.

              	
                Shares
                  Subject to the
                  Plan

              

      

      Subject
        to the provisions of Section 13 of the Plan, the maximum number
        of Shares that the Company may issue pursuant to the Plan is 2,800,000 Shares.
        Notwithstanding the foregoing limitation, the Board may act, not more than
        once
        during each fiscal year of the Company, to increase the share reserve by
        such
        number of Shares as the Board shall determine, provided that such increase
        shall
        not exceed one percent (1%) of the number of shares outstanding at the end
        of
        the Company’s most recently-completed fiscal year. Shares may be authorized but
        unissued Shares, or Shares that the Company has re-acquired or otherwise
        holds
        in treasury.

      The
        Shares issued pursuant to the Plan may be authorized but unissued
        Shares (or, subject to Applicable Law, Shares that the Company has reacquired
        or
        otherwise holds in treasury). Shares that are subject to Awards under this
        Plan
        that for any reason expire, are forfeited, are cancelled, or become
        un-exercisable, and Shares that are for any other reason not paid or delivered
        under the Plan shall again, except to the extent prohibited by Applicable
        Law,
        be available for subsequent Awards under the Plan. 

      
        	
                4.

              	
                Administration

              

      

      (a)              General.
        The
        Committee shall administer the Plan, inclusive of the incorporated Appendices,
        in accordance with its terms, provided that the Board may act in lieu of
        the
        Committee on any matter. The Committee shall hold meetings at such times
        and
        places as it may determine and shall make such rules and regulations for
        the
        conduct of its business as it deems advisable. In the absence of a duly
        appointed Committee or if the Board otherwise chooses to act in lieu of the
        Committee, the Board shall function as the Committee for all purposes of
        the
        Plan.

      (b)              Committee
        Composition.
The Board
        shall appoint the members of the
        Committee. If and to the extent permitted by Applicable Law, the Committee
        may
        authorize one or more officers to make Awards to Eligible Persons who are
        not
        officers whom the Committee has specifically authorized to make Awards. The
        Board may at any time appoint additional members to the Committee, remove
        and
        replace members of the Committee with or without Cause, and fill vacancies
        on
        the Committee however caused.

      (c)              Powers
        of the Committee. Subject to the
        provisions of the Plan, the Committee shall have the authority, in its sole
        discretion: 

      (i)           to
        determine Eligible Persons to whom Awards shall be granted from time
        to time and the number of Shares, units, or SARs to be covered by each
        Award;

      
        	
                 

                 

              	
                -2-

                 

              

      

       

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        	
                 

              	
                (ii)

              	
                to
                  determine, from time to time, the Fair Market Value of
                  Shares;

              

      

      (iii)        to
        determine, and to set forth in Award Agreements, the terms and conditions
        of all
        Awards, including any applicable exercise or purchase price, the installments
        and conditions under which an Award shall become vested (which may be based
        on
        performance), terminated, expired, cancelled, or replaced, and the circumstances
        for vesting acceleration or waiver of forfeiture restrictions, and other
        restrictions and limitations;

      (iv)         to
        approve the forms of Award Agreements and all other documents, notices
        and certificates in connection therewith which need not be identical either
        as
        to type of Award or among Participants; 

      (v)          to
        construe and interpret the terms of the Plan and any Award Agreement,
        to determine the meaning of their terms, and to prescribe, amend, and rescind
        rules and procedures relating to the Plan and its administration; 

      (vi)         in
        order to fulfill the purposes of the Plan and without amending the
        Plan, to modify, to cancel, or to waive the Company’s rights with respect to any
        Awards, to adjust or to modify Award Agreements for changes in Applicable
        Law,
        and to recognize differences in foreign law, tax policies, or customs (with
        discretion to establish sub-plans for such purpose, with any sub-plan to
        be
        added as an Appendix to the Plan); and 

      (vii)       to
        make all
        other interpretations and to take all other actions that the Committee may
        consider necessary or advisable to administer the Plan or to effectuate its
        purposes.

      Subject
        to Applicable Law and the restrictions set forth in the Plan, the
        Committee may delegate administrative functions to individuals who are officers
        or Employees of the Company or its Affiliates.

      (d)              Deference
        to Committee Determinations. The
        Committee shall have the discretion to interpret or construe ambiguous, unclear,
        or implied (but omitted) terms in any fashion it deems to be appropriate
        in its
        sole discretion, and to make any findings of fact needed in the administration
        of the Plan or Award Agreements. The Committee’s prior exercise of its
        discretionary authority shall not obligate it to exercise its authority in
        a
        like fashion thereafter. The Committee’s interpretation and construction of any
        provision of the Plan, or of any Award or Award Agreement, shall be final,
        binding, and conclusive. The validity of any such interpretation, construction,
        decision or finding of fact shall not be given de novo review if challenged
        in
        court, by arbitration, or in any other forum, and shall be upheld unless
        clearly
        arbitrary or capricious.

      
        	
                5.

              	
                Eligibility

              

      

      (a)              General
        Rule. The Committee may grant Awards to
        any Eligible Person. A Participant who has been granted an Award may be granted
        an additional Award or Awards if the Committee shall so determine, if such
        person is otherwise an Eligible Person.

      
        	
                 

                 

              	
                -3-

                 

              

      

       

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      (b)             Grant
        of Awards. Subject to the express
        provisions of the Plan, the Committee shall determine from the class of Eligible
        Persons those individuals to whom Awards under the Plan may be granted, the
        number of Shares subject to each Award, the price (if any) to be paid for
        the
        Shares or the Award and, in the case of Performance Awards, in addition to
        the
        matters addressed in Section 10 below, the specific objectives, goals and
        performance criteria that further define the Performance Award. Each Award
        shall
        be evidenced by an Award Agreement signed by the Company and by the Participant,
        with each Eligible Person’s acceptance of the Award being purely voluntary. The
        Award Agreement shall set forth the material terms and conditions of the
        Award
        established by the Committee, and each Award shall be subject to the terms
        and
        conditions set forth in Sections 23 and 24 unless otherwise specifically
        provided in an Award Agreement. The failure of either party to sign an Award
        Agreement will render it ineffective, null, and void. 

      (c)              Limits
        on Individual Awards. No Participant may
        receive Awards during the life of the Plan that relate to more than thirty
        percent (30%) of the maximum number of Shares that may be issued pursuant
        to
        Awards (as determined under Section 3 of the Plan). The Committee will adjust
        this limitation pursuant to Section 13 below.

      
        	
                6.

              	
                Option
                  Awards

              

      

      (a)              Types;Documentation.
        The Committee may in its discretion grant Options to any Eligible Person,
        and
        shall evidence any such grants only in Award Agreements. 

      (b)              Term
        of Options. Each Award Agreement shall
        specify a term at the end of which the Option automatically expires, subject
        to
        earlier termination pursuant to the provisions contained in Section 6(g)
        hereof;
        provided, that the term of any Option may not exceed ten years from the Grant
        Date.

      (c)              Exercise
        Price. The exercise price of an Option
        shall be determined by the Committee in its discretion and shall be set forth
        in
        the Award Agreement, provided that such per Share exercise price shall not
        be
        less than one hundred percent (100%) of the Fair Market Value per Share on
        the
        Grant Date. The exercise price may be stated and payable in any currency
        specified by the Committee in the Award Agreement. 

      (d)              Exercise
        of Option. The Committee shall in its
        sole discretion determine the times, circumstances, and conditions under
        which
        an Option shall be exercisable, and shall set them forth in the Award Agreement.
        The Committee shall have the discretion to determine whether and to what
        extent
        the vesting of Options shall be suspended during any unpaid leave of absence;
        provided, however, that in the absence of such determination, vesting of
        Options
        shall be suspended during any such leave approved by the Company.

      (e)              Minimum
        Exercise Requirements. An Option may not
        be exercised for a fraction of a Share. The Committee may require in an Award
        Agreement that an Option be exercised as to a minimum number of Shares, provided
        that such requirement shall not prevent a Participant from purchasing the
        full
        number of Shares as to which the Option is then exercisable.

      (f)             Methods
        of Exercise.Prior to its expiration
        pursuant to the terms of the applicable Award Agreement, each Option may
        be
        exercised, in whole or in part (provided that 

      
        	
                 

                 

              	
                -4-

                 

              

      

       

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      the
        Company shall pay cash in lieu of fractional Shares), by delivery of
        written notice of exercise to a named executive officer of the Company
        accompanied by the full exercise price of the Shares being purchased. The
        methods of payment that the Committee may in its discretion accept or commit
        to
        accept in an Award Agreement include:

      (i)           cash
        or check payable to the Company (in the currency specified by the
        Committee);

      (ii)          subject
        to Applicable Law, other Shares that (A) are owned by the
        Participant who is purchasing Shares pursuant to an Option, (B) have a Fair
        Market Value on the date of surrender equal to the aggregate exercise price
        of
        the Shares as to which the Option is being exercised, (C) were not acquired
        by
        such Participant pursuant to the exercise of an Option, unless such Shares
        have
        been owned by such Participant for at least six months or such other period
        as
        the Committee may determine, (D) are all, at the time of such surrender,
        free
        and clear of any and all claims, pledges, liens and encumbrances, or any
        restrictions which would in any manner restrict the transfer of such shares
        to
        or by the Company (other than such restrictions as may have existed prior
        to an
        issuance of such Shares by the Company to such Participant), and (E) are
        duly
        endorsed for transfer to the Company;

      (iii)         a
        cashless exercise program that the Committee may approve, from time to
        time in its discretion, pursuant to which a Participant may concurrently
        provide
        irrevocable instructions (A) to such Participant’s broker or dealer to effect
        the immediate sale of the purchased Shares and remit to the Company, out
        of the
        sale proceeds available on the settlement date, sufficient funds to cover
        the
        exercise price of the Option plus all applicable taxes required to be withheld
        by the Company by reason of such exercise, and (B) to the Company to deliver
        the
        certificates for the purchased Shares directly to such broker or dealer in
        order
        to complete the sale; or 

      
        	
                 

              	
                (iv)

              	
                any
                  combination of the foregoing methods of payment.
                  

              

      

      The
        Company shall not be required to deliver Shares pursuant to the
        exercise of an Option until payment of the full exercise price therefore
        is
        received by the Company.

      (g)              Termination
        of Continuous Service. The
        Committee may establish and set forth
        in the applicable Award Agreement the terms and conditions on which an Option
        shall remain exercisable, if at all, following termination of a Participant’s
        Continuous Service. The Committee may waive or modify these provisions at
        any
        time. To the extent that a Participant is not entitled to exercise an Option
        at
        the date of his or her termination of Continuous Service, or if the Participant
        (or other person entitled to exercise the Option) does not exercise the Option
        to the extent so entitled within the time specified in the Award Agreement
        or
        below (as applicable), the Option shall terminate and the Shares underlying
        the
        unexercised portion of the Option shall revert to the Plan and become available
        for future Awards. In no event may any Option be exercised after the expiration
        of the Option term as set forth in the Award Agreement. 

      The
        following provisions shall apply to the extent an Award Agreement
        does not specify the terms and conditions upon which an Option shall terminate
        when there is a termination of a Participant’s Continuous Service:

      
        	
                 

                 

              	
                -5-

                 

              

      

       

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      (i)           Termination
        other than Upon Disability, Death, Retirement or for
        Cause. In the event of termination of a Participant’s
        Continuous Service (other than as a result of Participant’s death, disability,
        retirement or termination for Cause), the Participant shall have the right
        to
        exercise an Option within three (3) months following such termination to
        the
        extent the Participant was entitled to exercise such Option at the date of
        such
        termination. 

       

      (ii)          Disability.
        In the event of termination of a
        Participant’s Continuous Service as a result of his or her being Disabled, the
        Participant shall have the right to exercise an Option at any time within
        one
        year following such termination to the extent the Participant was entitled
        to
        exercise such Option at the date of such termination. 

      (iii)        Retirement.
        In the event of termination of a
        Participant’s Continuous Service as a result of Participant’s retirement, the
        Participant shall have the right to exercise the Option at any time within
        six
        months following such termination to the extent the Participant was entitled
        to
        exercise such Option at the date of such termination.

      (iv)         Death.
        In the event of the death of a Participant
        during the period of Continuous Service since the Grant Date of an Option,
        or
        within thirty days following termination of the Participant’s Continuous
        Service, the Option may be exercised, at any time within one year following
        the
        date of the Participant’s death, by the Participant’s estate or by a person who
        acquired the right to exercise the Option by bequest or inheritance, but
        only to
        the extent the right to exercise the Option had vested at the date of death
        or,
        if earlier, the date the Participant’s Continuous Service
        terminated.

      (v)          Cause.
        If the Committee determines that a
        Participant’s Continuous Service terminated due to Cause, the Participant shall
        immediately forfeit the right to exercise any Option, and it shall be considered
        immediately null and void.

      
        	
                7.

              	
                Share
                  Appreciation Rights
                  (SARs)

              

      

      (a)              Grants.
        The Committee may in its discretion grant
        Share Appreciation Rights to any Eligible Person, in any of the following
        forms:

      (i)           SARs
        related to Options. The Committee may grant
        SARs either concurrently with the grant of an Option or with respect to an
        outstanding Option, in which case the SAR shall extend to all or a portion
        of
        the Shares covered by the related Option. A SAR shall entitle the Participant
        who holds the related Option, upon exercise of the SAR and surrender of the
        related Option, or portion thereof, to the extent the SAR and related Option
        each were previously unexercised, to receive payment of an amount determined
        pursuant to Section 7(e) below.

      (ii)          SARs
        Independent of Options. The Committee may
        grant SARs which are independent of any Option subject to such conditions
        as the
        Committee may in its discretion determine, which conditions will be set forth
        in
        the applicable Award Agreement.

      (iii)       Limited
        SARs. The Committee may grant SARs exercisable only
        upon
        or in respect of a Change in Control or any other specified event, and such
        limited SARs may relate to or operate in tandem or combination with or
        substitution for Options or other SARs, or on a 

      
        	
                 

                 

              	
                -6-

                 

              

      

       

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      stand-alone
        basis, and may be payable in cash or Shares based on the
        spread between the exercise price of the SAR, and (A) a price based upon
        or
        equal to the Fair Market Value of the Shares during a specified period, at
        a
        specified time within a specified period before, after or including the date
        of
        such event, or (B) a price related to consideration payable to Company’s
        shareholders generally in connection with the event.

      (b)              Exercise
        Price. The per Share exercise price of a
        SAR shall be determined in the sole discretion of the Committee, shall be
        set
        forth in the applicable Award Agreement, and shall be no less than one hundred
        percent (100%) of the Fair Market Value of one Share. The exercise price
        of a
        SAR related to an Option shall be the same as the exercise price of the related
        Option. The exercise price of a SAR shall be subject to the special rules
        on
        pricing contained in Sections 6(c)  and 7(f) 
hereof.

      (c)              Exercise
        of SARs. Unless the Award Agreement
        otherwise provides, a SAR related to an Option will be exercisable at such
        time
        or times, and to the extent, that the related Option will be exercisable;
        provided that the Award Agreement shall not, without the approval of the
        shareholders of the Company, provide for a vesting period for the exercise
        of
        the SAR that is more favorable to the Participant than the exercise period
        for
        the related Option. A SAR may not have a term exceeding seven years from
        its
        Grant Date. A SAR granted independently of any other Award will be exercisable
        pursuant to the terms of the Award Agreement, but shall not, without the
        approval of the shareholders of the Company, provide for a vesting period
        for
        the exercise of the SAR that is more favorable to the Participant than the
        exercise period for the related Option. Whether a SAR is related to an Option
        or
        is granted independently, the SAR may only be exercised when the Fair Market
        Value of the Shares underlying the SAR exceeds the exercise price of the
        SAR.

      (d)              Effect
        on Available Shares. All SARs that are
        settled in shares of the Company’s Shares shall be counted in full against the
        number of shares available for award under the Plan, regardless of the number
        of
        exercise gain shares issued upon settlement of the SARs.

      (e)              Payment.
Upon
        exercise of a SAR related to an
        Option and the attendant surrender of an exercisable portion of any related
        Award, the Participant will be entitled to receive payment of an amount
        determined by multiplying –

      (i)           the
        excess of the Fair Market Value of a Share on the date of exercise of
        the SAR over the exercise price per Share of the SAR, by

      
        	
                 

              	
                (ii)

              	
                the
                  number of Shares with respect to which the SAR has been
                  exercised.

              

      

      Notwithstanding
        the foregoing, a SAR granted independently of an Option
        (i) may limit the amount payable to the Participant to a percentage, specified
        in the Award Agreement but not exceeding one-hundred percent (100%), of the
        amount determined pursuant to the preceding sentence, and (ii) shall be subject
        to any payment or other restrictions that the Committee may at any time impose
        in its discretion.

      (f)               Form
        and Terms of Payment. Subject
        to Applicable Law, the Committee
        may, in its sole discretion, settle the amount determined under Section 7(e)
        above solely in cash, solely 

      
        	
                 

                 

              	
                -7-

                 

              

      

       

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      in
        Shares (valued at their Fair Market Value on the date of exercise of
        the SAR), or partly in cash and partly in Shares. In any event, cash shall
        be
        paid in lieu of fractional Shares. Absent a contrary determination by the
        Committee, all SARs shall be settled in cash as soon as practicable after
        exercise. Notwithstanding the foregoing, the Committee may, in an Award
        Agreement, determine the maximum amount of cash or Shares or combination
        thereof
        that may be delivered upon exercise of a SAR.

      (g)              Termination
        of Employment or Consulting
        Relationship. The
        Committee shall establish and set forth in the applicable Award Agreement
        the
        terms and conditions on which a SAR shall remain exercisable, if at all,
        following termination of a Participant’s Continuous Service.

      
        	
                8.

              	
                Restricted
                  Shares, Restricted Share Units, and Unrestricted
                  Shares

              

      

      (a)              Grants.
        The Committee may in its discretion grant
        restricted shares (“Restricted Shares”) to any Eligible Person
        and shall evidence such grant in an Award
        Agreement that is delivered to the Participant and that sets forth the number
        of
        Restricted Shares, the purchase price for such Restricted Shares (if any),
        and
        the terms upon which the Restricted Shares may become vested. In addition,
        the
        Company may in its discretion grant the right to receive Shares after certain
        vesting requirements are met (“Restricted Share
        Units”) to any Eligible Person and shall evidence such
        grant in an Award Agreement that is delivered to the Participant which sets
        forth the number of Shares (or formula, that may be based on future performance
        or conditions, for determining the number of Shares) that the Participant
        shall
        be entitled to receive upon vesting, the terms upon which the Shares subject
        to
        a Restricted Share Unit may become vested, and the manner of settlement of
        the
        Restricted Share Units. The Committee may condition any Award of Restricted
        Shares or Restricted Share Units to a Participant on receiving from the
        Participant such further assurances and documents as the Committee may require
        to enforce the restrictions. In addition, the Committee may grant Awards
        hereunder in the form of unrestricted shares (“Unrestricted Shares”), which shall vest
        in full
        upon the date of grant or such other date as the Committee may determine
        or
        which the Committee may issue pursuant to any program under which one or
        more
        Eligible Persons (selected by the Committee in its discretion) elect to receive
        Unrestricted Shares in lieu of cash bonuses that would otherwise be
        paid.

      (b)              Vesting
        and Forfeiture. The Committee shall set
        forth in an Award Agreement granting Restricted Shares or Restricted Share
        Units, the terms and conditions under which the Participant’s interest in the
        Restricted Shares or the Shares subject to Restricted Share Units will become
        vested and non-forfeitable. Except as set forth in the applicable Award
        Agreement or the Committee otherwise determines, upon termination of a
        Participant’s Continuous Service for any other reason, the Participant shall
        forfeit his or her Restricted Shares and Restricted Share Units; provided
        that
        if a Participant purchases the Restricted Shares and forfeits them for any
        reason, the Company shall return the purchase price to the Participant only
        if
        and to the extent set forth in an Award Agreement. 

      (c)              Issuance
        of Restricted Shares Prior to Vesting.
        The Company shall issue stock certificates that evidence Restricted Shares
        pending the lapse of applicable restrictions, and that bear a legend making
        appropriate reference to such restrictions. Except as set forth in the

      
        	
                 

                 

              	
                -8-

                 

              

      

       

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      applicable
        Award Agreement or the Committee otherwise determines, the
        Company or a third party that the Company designates shall hold such Restricted
        Shares and any dividends that accrue with respect to Restricted Shares pursuant
        to Section 8(e) below.

      (d)              Issuance
        of Shares upon Vesting.
As soon
        as practicable after vesting of a
        Participant’s Restricted Shares (or Shares underlying Restricted Share Units)
        and the Participant’s satisfaction of applicable tax withholding requirements,
        the Company shall release to the Participant, free from the vesting
        restrictions, one Share for each vested Restricted Share (or issue one Share
        free of the vesting restriction for each vested Restricted Share Unit), unless
        an Award Agreement provides otherwise. No fractional shares shall be
        distributed, and cash shall be paid in lieu thereof.

      (e)              Dividends
        Payable on Vesting.Whenever Shares are released
        to a Participant under Section 8(d) above
        pursuant to the vesting of Restricted Shares or the Shares underlying Restricted
        Share Units are issued to a Participant pursuant to Section 8(d) above, such
        Participant shall receive (unless otherwise provided in the Award Agreement),
        with respect to each Share released or issued, an amount equal to any cash
        dividends (plus, in the discretion of the Committee, simple interest at a
        rate
        as the Committee may determine) and a number of Shares equal to any stock
        dividends, which were declared and paid to the holders of Shares between
        the
        Grant Date and the date such Share is released or issued.

       

      
        	
                9.

              	
                [Reserved]

              

      

      
        	
                10.

              	
                Performance
                  Awards

              

      

      (a)              Performance
        Units. Subject to the limitations set
        forth in paragraph (b) hereof, the Committee may in its discretion grant
        Performance Units to any Eligible Person and shall evidence such grant in
        an
        Award Agreement that is delivered to the Participant which sets forth the
        terms
        and conditions of the Award.

      (b)              Limitations
        on Awards. The maximum Performance
        Unit Award and the maximum Performance Compensation Award that any one
        Participant may receive for any one performance period shall not together
        exceed
        five percent (5%) of the number of Shares reserved under section 3 of the
        Plan,
        and shall not exceed the Fair Market Value of such number of Shares for Awards
        denominated in cash.

      (c)              Deferral
        Elections. At any time prior to the date
        that is at least six months before the close of a performance period (or
        shorter
        or longer period that the Committee selects) with respect to an Award of
        either
        Performance Units or Performance Compensation, the Committee may permit a
        Participant who is a member of a select group of management or highly
        compensated employees to irrevocably elect, on a form provided by and acceptable
        to the Committee, to defer the receipt of all or a percentage of the cash
        or
        Shares that would otherwise be transferred to the Participant upon the vesting
        of such Award. If the Participant makes this election, the cash or Shares
        subject to the election, and any associated interest and dividends, shall
        be
        credited to an account established pursuant to Section 9 hereof on the date
        such
        cash or Shares would otherwise have been released or issued to the Participant
        pursuant to Section 10(a) above. 

      
        	
                 

                 

              	
                -9-

                 

              

      

       

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        	
                11.

              	
                Taxes

              

      

      (a)              General.
        As a condition to the issuance or
        distribution of Shares pursuant to the Plan, the Participant (or in the case
        of
        the Participant’s death, the person who succeeds to the Participant’s rights)
        shall make such arrangements as the Company may require for the satisfaction
        of
        any applicable withholding tax obligations that may arise in connection with
        the
        Award and the issuance of Shares. The Company shall not be required to issue
        any
        Shares until such obligations are satisfied. If the Committee allows the
        withholding or surrender of Shares to satisfy a Participant’s tax withholding
        obligations, the Committee shall not allow Shares to be withheld in an amount
        that exceeds the minimum statutory withholding rates for tax purposes, including
        payroll taxes.

      (b)              Default
        Rule for Employees. In the absence of any
        other arrangement, an Employee shall be deemed to have directed the Company
        to
        withhold or collect from his or her cash compensation an amount sufficient
        to
        satisfy such tax obligations from the next payroll payment otherwise payable
        after the date of the exercise of an Award.

      (c)              Special
        Rules. In the case of a Participant other
        than an Employee (or in the case of an Employee where the next payroll payment
        is not sufficient to satisfy such tax obligations, with respect to any remaining
        tax obligations), in the absence of any other arrangement and to the extent
        permitted under Applicable Law, the Participant shall be deemed to have elected
        to have the Company withhold from the Shares or cash to be issued pursuant
        to an
        Award that number of Shares having a Fair Market Value determined as of the
        applicable Tax Date (as defined below) or cash equal to the amount required
        to
        be withheld. For purposes of this Section 11, the Fair Market Value of the
        Shares to be withheld shall be determined on the date that the amount of
        tax to
        be withheld is to be determined under the Applicable Law (the “Tax Date”).

      (d)              Surrender
        of Shares. If permitted by the
        Committee, in its discretion, a Participant may satisfy the minimum applicable
        tax withholding and employment tax obligations associated with an Award by
        surrendering Shares to the Company (including Shares that would otherwise
        be
        issued pursuant to the Award) that have a Fair Market Value determined as
        of the
        applicable Tax Date equal to the amount required to be withheld. In the case
        of
        Shares previously acquired from the Company that are surrendered under this
        Section 11, such Shares must have been owned by the Participant for more
        than
        six months on the date of surrender (or such longer period of time the Company
        may in its discretion require).

      (e)              Income
        Taxes Liabilities. Participants are solely
        responsible and liable for the satisfaction of all taxes and penalties that
        may
        arise in connection with Awards, and the Company shall not have any obligation
        to indemnify or otherwise hold any Participant harmless from any or all of
        such
        taxes.

      
        	
                12.

              	
                Non-Transferability
                  of
                  Awards

              

      

      (a)              General.
        Except as set forth in this Section 12,
        or as otherwise approved by the Committee, Awards may not be sold, pledged,
        assigned, hypothecated, transferred or disposed of in any manner other than
        by
        will or by the laws of descent or distribution. The designation of a beneficiary
        by a Participant will not constitute a transfer. An Award may be exercised,
        during 

      
        	
                 

                 

              	
                -10-

                 

              

      

       

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      the
        lifetime of the holder of an Award, only by such holder, the
        duly-authorized legal representative of a Participant who is Disabled, or
        a
        transferee permitted by this Section 12.

      (b)              Limited
        Transferability Rights.Notwithstanding
        anything else in this Section 12, the Committee may in its discretion provide
        in
        an Award Agreement that an Award may be transferred, on such terms and
        conditions as the Committee deems appropriate, either (i) by instrument to
        the
        Participant’s “Immediate Family” (as defined below), (ii) by instrument to an
inter vivos or testamentary trust
        (or other entity) in which the Award is to be passed to the Participant’s
        designated beneficiaries, or (iii) by gift to charitable institutions.

      Any
        transferee of the Participant’s rights shall succeed and be subject
        to all of the terms of this Award Agreement and the Plan. “Immediate Family”
means any child, stepchild, grandchild, parent, stepparent, grandparent,
        spouse,
        former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
        daughter-in-law, brother-in-law, or sister-in-law, and shall include adoptive
        relationships.

      
        	
                13.

              	
                Adjustments
                  Upon Changes in Capitalization, Merger or Certain Other
                  Transactions

              

      

      (a)              Changes
        in Capitalization. The number of Shares
        covered by each outstanding Award, and the number of Shares that have been
        authorized for issuance under the Plan but as to which no Awards have yet
        been
        granted or that have been returned to the Plan upon cancellation, forfeiture,
        or
        expiration of an Award, as well as the price per Share covered by each such
        outstanding Award, shall be automatically adjusted to reflect any increase
        or
        decrease in the number of issued Shares resulting from a stock-split, reverse
        stock-split, stock dividend, combination, recapitalization or reclassification
        of the Shares, or any other increase or decrease in the number of issued
        Shares
        effected without receipt of consideration by the Company. In the event of
        any
        such transaction or event, the Committee may provide in substitution for
        any or
        all outstanding Options under the Plan such alternative consideration (including
        securities of any surviving entity) as it may in good faith determine to
        be
        equitable under the circumstances and may require in connection therewith
        the
        surrender of all Options so replaced. In any case, such substitution of
        securities shall not require the consent of any person who is granted Options
        pursuant to the Plan. Except as expressly provided herein, or in an Award
        Agreement, if the Company issues for consideration shares of stock of any
        class
        or securities convertible into shares of stock of any class, the issuance
        shall
        not affect, and no adjustment by reason thereof shall be required to be made
        with respect to the number or price of Shares subject to any award.

      (b)              Dissolution
        or Liquidation. In the event of the
        dissolution or liquidation of the Company other than as part of a Change
        of
        Control, each Award will terminate immediately prior to the consummation
        of such
        action, subject to the ability of the Committee to exercise any discretion
        authorized in the case of a Change in Control.

      (c)             Change
        in Control. In the event of a Change in
        Control, the Committee may in its sole and absolute discretion and authority,
        without obtaining the approval or consent of the Company’s shareholders or any
        Participant with respect to his or her outstanding Awards, take one or more
        of
        the following actions:

      
        	
                 

                 

              	
                -11-

                 

              

      

       

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      (i)           arrange
        for or otherwise provide that each outstanding Award shall be
        assumed or a substantially similar award shall be substituted by a successor
        corporation or a parent or subsidiary of such successor corporation (the
        “Successor Corporation”);

      (ii)          accelerate
        the vesting of Awards so that Awards shall vest (and, to the
        extent applicable, become exercisable) as to the Shares that otherwise would
        have been unvested and provide that repurchase rights of the Company with
        respect to Shares issued upon exercise of an Award shall lapse as to the
        Shares
        subject to such repurchase right;

      (iii)         arrange
        or otherwise provide for the payment of cash or other
        consideration to Participants in exchange for the satisfaction and cancellation
        of outstanding Awards; or

      (iv)         make
        such other modifications, adjustments or amendments to outstanding
        Awards or this Plan as the Committee deems necessary or appropriate, subject
        however to the terms of Section 15(a) below.

      Notwithstanding
        the above, in the event a Participant holding an Award
        assumed or substituted by the Successor Corporation in a Change in Control
        is
        Involuntarily Terminated by the Successor Corporation in connection with,
        or
        within 12 monthsfollowing consummation of, the Change in
        Control, then any assumed or substituted Award held by the terminated
        Participant at the time of termination shall accelerate and become fully
        vested
        (and exercisable in full in the case of Options and SARs), and any repurchase
        right applicable to any Shares shall lapse in full, unless an Award Agreement
        provides for a more restrictive acceleration or vesting schedule or more
        restrictive limitations on the lapse of repurchase rights or otherwise places
        additional restrictions, limitations and conditions on an Award. The
        acceleration of vesting and lapse of repurchase rights provided for in the
        previous sentence shall occur immediately prior to the effective date of
        the
        Participant’s termination, unless an Award Agreement provides
        otherwise.

      (d)              Certain
        Distributions. In the event of any
        distribution to the Company’s shareholders of securities of any other entity or
        other assets (other than dividends payable in cash or stock of the Company)
        without receipt of consideration by the Company, the Committee may, in its
        discretion, appropriately adjust the price per Share covered by each outstanding
        Award to reflect the effect of such distribution.

      
        	
                14.

              	
                Time
                  of Granting Awards.

              

      

      The
        date of grant (“Grant Date”) of an Award shall
        be the date on which the Committee makes the
        determination granting such Award. 

      
        	
                15.

              	
                Modification
                  of Awards and Substitution of
                  Options.
                  

              

      

      (a)             Modification,
        Extension, and Renewal of Awards.
        No modification of an outstanding Award shall materially and adversely affect
        such Participant’s rights thereunder, unless either the Participant provides
        written consent or there is an express Plan provision permitting the Committee
        to act unilaterally to make the modification. Within the limitations of

      
        	
                 

                 

              	
                -12-

                 

              

      

       

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      the
        Plan, the Committee may modify an Award to accelerate the rate at
        which an Option or SAR may be exercised (including without limitation permitting
        an Option or SAR to be exercised in full without regard to the installment
        or
        vesting provisions of the applicable Award Agreement or whether the Option
        or
        SAR is at the time exercisable, to the extent it has not previously been
        exercised), to accelerate the vesting of any Award, to extend or renew
        outstanding Awards or to accept the cancellation of outstanding Awards to
        the
        extent not previously exercised. However, the Committee may not, without
        the
        approval of the Company’s shareholders, re-price an outstanding Option or SAR or
        cancel or re-price an outstanding Option or SAR for the purpose of, within
        six
        months before or after, either reissuing the Option or SAR to the Participant
        at
        a lower exercise price or granting a replacement award of a different
        type.

      (b)              Substitution
        of Options.Notwithstanding any
        inconsistent provisions or limits under the Plan, in the event the Company
        or an
        Affiliate acquires (whether by purchase, merger or otherwise) all or
        substantially all of outstanding capital stock or assets of another corporation
        or in the event of any reorganization or similar transaction, the Committee
        may,
        in accordance with the provisions of that Section, substitute Options for
        options under the plan of the acquired company provided (i) the excess of
        the aggregate fair market value of the shares subject to an option immediately
        after the substitution over the aggregate option price of such shares is
        not
        more than the similar excess immediately before such substitution and (ii)
        the
        new option does not give persons additional benefits, including any extension
        of
        the exercise period.

      
        	
                16.

              	
                Term
                  of Plan.

              

      

      The
        Plan shall continue in effect for a term of ten (10) years from its
        effective date as determined under Section 20 below, unless the Plan is sooner
        terminated under Section 17 below.

      
        	
                17.

              	
                Amendment
                  and Termination of the
                  Plan.

              

      

      (a)              Authority
        to Amend or Terminate. Subject to
        Applicable Laws, including requirements to obtain prior security holder
        approval, the Board may from time to time amend, alter, suspend, discontinue,
        or
        terminate the Plan.

      (b)              Effect
        of Amendment or Termination. No amendment,
        suspension, or termination of the Plan shall materially and adversely affect
        Awards already granted unless either it relates to an adjustment pursuant
        to
        Section 13 above, or it is otherwise mutually agreed between the Participant
        and
        the Committee, which agreement must be in writing and signed by the Participant
        and the Company. Notwithstanding the foregoing, the Committee may amend the
        Plan
        to eliminate provisions which are no longer necessary as a result of changes
        in
        tax or securities laws or regulations, or in the interpretation
        thereof.

      
        	
                18.

              	
                Conditions
                  Upon Issuance of Shares. 

              

      

      Notwithstanding
        any other provision of the Plan or any agreement entered
        into by the Company pursuant to the Plan, the Company shall not be obligated,
        and shall have no liability for failure, to issue or deliver any Shares under
        the Plan unless such issuance or delivery would comply with Applicable Law,
        with
        such compliance determined by the Company in consultation with its legal
        counsel.

      
        	
                 

                 

              	
                -13-

                 

              

      

       

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        	
                19.

              	
                Reservation
                  of Shares.
                  

              

      

      The
        Company, during the term of this Plan, will at all times reserve and
        keep available such number of Shares as shall be sufficient to satisfy the
        requirements of the Plan. Neither the Company nor the Committee shall, without
        shareholder approval, allow for a re-pricing within the meaning of the federal
        securities laws applicable to proxy statement disclosures. 

      
        	
                20.

              	
                Effective
                  Date.

              

      

      The
        Plan shall become effective on the date of its approval by the Board;
        provided that the Plan shall be submitted to the Company’s shareholders for
        approval to be given by a resolution passed at a meeting of the Company’s
        shareholders in accordance with the Canada Business Corporations Act and
        to
        acceptance by the Exchange. Awards granted under this Plan before approval
        of
        this Plan by the shareholders shall be granted subject to such approval,
        and no
        Shares shall be distributed before such approval.

       

      If
        not approved by the Company’s shareholders in accordance with
        Applicable Laws (as determined by the Committee in its discretion) within
        one
        year from the date of approval by the Board, this Plan and any Awards shall
        be
        null, void, and of no force and effect. 

       

      
        	
                21.

              	
                Controlling
                  Law.
                  

              

      

      Except
        to the extent otherwise provided in an Award Agreement or a
        Sub-Plan, all disputes relating to or arising from the Plan shall be governed
        by
        the internal substantive laws (and not the laws of conflicts of laws) of
        the
        Cayman Islands. If any provision of this Plan is held by a court of competent
        jurisdiction to be invalid and unenforceable, the remaining provisions shall
        continue to be fully effective.

      
        	
                22.

              	
                Laws
                  And Regulations.

              

      

      The
        Company may, in its discretion, qualify this Plan in any jurisdiction
        where employees reside or are employed, in which case such employees will
        be
        eligible to participate in this Plan. To facilitate the making of any grant
        of
        an Award under this Plan, the Committee may provide for such special terms
        for
        Awards to Participants who are foreign nationals or who are employed by the
        Company or any Affiliate outside of a jurisdiction as the Committee may consider
        necessary or appropriate to accommodate differences in local law, tax policy
        or
        custom. The Company may adopt rules and procedures relating to the operation
        and
        administration of this Plan to accommodate the specific requirements of local
        laws and procedures of particular countries. Without limiting the foregoing,
        the
        Company is specifically authorized to adopt rules and procedures regarding
        the
        conversion of local currency, taxes, withholding procedures and handling
        of
        stock certificates which vary with the customs and requirements of particular
        countries. The Company may adopt sub-plans and establish escrow accounts
        and
        trusts as may be appropriate or applicable to particular locations and
        countries.

      
        	
                23.

              	
                No
                  Shareholder Rights.
                  

              

      

      Neither
        a Participant nor any transferee of a Participant shall have any
        rights as a shareholder of the Company with respect to any Shares underlying
        any
        Award until the date of 

      
        	
                 

                 

              	
                -14-

                 

              

      

       

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      issuance
        of a share certificate to a Participant or a transferee of a
        Participant for such Shares in accordance with the Company’s governing
        instruments and Applicable Law. Prior to the issuance of Shares pursuant
        to an
        Award, a Participant shall not have the right to vote or to receive dividends
        or
        any other rights as a shareholder with respect to the Shares underlying the
        Award, notwithstanding its exercise in the case of Options and SARs. No
        adjustment will be made for a dividend or other right that is determined
        based
        on a record date prior to the date the stock certificate is issued, except
        as
        otherwise specifically provided for in this Plan.

      
        	
                24.

              	
                No
                  Employment Rights.
                  

              

      

      The
        Plan shall not confer upon any Participant any right to continue an
        employment, service or consulting relationship with the Company, nor shall
        it
        affect in any way a Participant’s right or the Company’s right to terminate the
        Participant’s employment, service, or consulting relationship at any time, with
        or without Cause. Payments and other benefits received by a Participant pursuant
        to an Award shall not be deemed part of a Participant’s regular, recurring
        compensation for purposes of any termination, indemnity or severance pay
        laws
        and shall not be included in, nor have any effect on, the determination of
        benefits under any other employee benefit plan, contract or similar arrangement
        provided by the Company or any Subsidiary, unless expressly so provided by
        such
        other plan, contract or arrangement.

      
        	
                 

                 

              	
                -15-

                 

              

      

       

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

       

      NINETOWNS
        DIGITAL WORLD TRADE HOLDINGS LIMITED

       

      2006
        SHARE INCENTIVE PLAN

       

      _______________

       

      Appendix
        I: Definitions

      ______________

       

      As
        used in the Plan, the following definitions shall apply:

      “Affiliate”
        means, with respect to any Person (as defined below), any other Person
        that directly or indirectly controls or is controlled by or under common
        control
        with such Person. For the purposes of this definition, “control,” when used with
        respect to any Person, means the possession, direct or indirect, of the power
        to
        direct or cause the direction of the management and policies of such Person
        or
        the power to elect directors, whether through the ownership of voting
        securities, by contract or otherwise; and the terms “affiliated,” “controlling”
and “controlled” have meanings correlative to the foregoing.

      “Applicable
        Law”
        means
        the legal requirements relating to the administration of options and share-based
        plans under any applicable laws of China, Hong Kong, the Cayman Islands,
        any
        other country, and any provincial, state, or local subdivision, any applicable
        stock exchange or automated quotation system rules or regulations, as such
        laws,
        rules, regulations and requirements shall be in place from time to
        time.

      “Award”
        means any award made pursuant to the Plan, including awards made in the
        form of an Option, an SAR, a Restricted Share, a Restricted Share Unit, an
        Unrestricted Share, and a Performance Award, or any combination thereof,
        whether
        alternative or cumulative, authorized by and granted under this Plan.

      “Award
        Agreement”
        means any written document setting forth the terms of an Award that has been
        authorized by the Committee. The Committee shall determine the form or forms
        of
        documents to be used, and may change them from time to time for any
        reason.

      “Board”
        means the Board of Directors of the Company.

      “Cause”
for
        termination of a Participant’s Continuous Service will exist if the
        Participant is terminated from employment or other service with the Company
        or
        an Affiliate for any of the following reasons: (i) the Participant’s willful
        failure to substantially perform his or her duties and responsibilities to
        the
        Company or deliberate violation of a material Company policy; (ii) the
        Participant’s commission of any material act or acts of fraud, embezzlement,
        dishonesty, or other willful misconduct; (iii) the Participant’s material
        unauthorized use or disclosure of any proprietary information or trade secrets
        of the Company or any other party to whom the Participant owes an obligation
        of
        nondisclosure as a result of his or her relationship with the Company; or
        (iv)
        Participant’s willful and material breach of any of his or her obligations under
        any written agreement or covenant with the Company.

       

       

       

       

       

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      The
        Committee shall in its discretion determine whether or not a
        Participant is being terminated for Cause. The Committee’s determination shall,
        unless arbitrary and capricious, be final and binding on the Participant,
        the
        Company, and all other affected persons. The foregoing definition does not
        in
        any way limit the Company’s ability to terminate a Participant’s employment or
        consulting relationship at any time, and the term “Company” will be interpreted
        herein to include any Affiliate or successor thereto, if
        appropriate.

      “Change
        in
        Control”
        means any of the following:

      (I)           any
        Person is or becomes the beneficial owner, directly or indirectly, of
        securities of the Company representing fifty percent (50%) or more of the
        combined voting power of the Company’s then outstanding securities, excluding
        any Person who becomes such a beneficial owner in connection with a transaction
        described in paragraph (III)(B) below;

       

      (II)         the
        following individuals cease for any reason to constitute a majority
        of the number of directors then serving: individuals who, on the date hereof,
        constitute the Board and any new director (other than a director 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 Company) whose appointment or election by the
        Board
        or nomination for election by the Company’s shareholders was approved or
        recommended by the affirmative vote of a majority of the directors then still
        in
        office who either were directors on the date hereof or whose appointment,
        election or nomination for election was previously so approved or recommended
        (“Continuing Directors”);

       

      (III)        there
        is consummated a merger or consolidation of the Company or any direct or
        indirect subsidiary of the Company with any other corporation, other than
        a
        merger or consolidation in which (A) the Company’s shareholders receive or
        retain voting common stock in the Company or the surviving or resulting
        corporation in such transaction on the same pro rata basis as their relative
        percentage ownership of Company common stock immediately preceding such
        transaction and a majority of the entire Board of the Company are or continue
        to
        be Continuing Directors following such transaction, or (B) the Company’s
        shareholders receive voting common stock in the corporation which becomes
        the
        public parent of the Company or its successor in such transaction on the
        same
        pro rata basis as their relative percentage ownership of Company common stock
        immediately preceding such transaction and a majority of the entire Board
        of
        such parent corporation are Continuing Directors immediately following such
        transaction;

       

      (IV)       the
        sale of
        any one or more Company subsidiaries, businesses or assets not in the ordinary
        course of business and pursuant to a shareholder approved plan for the complete
        liquidation or dissolution of the Company; or

       

      (V)         there
        is consummated any sale of assets, businesses or subsidiaries of
        the Company which, at the time of the consummation of the sale, (x) together
        represent fifty percent (50%) or more of the total book value of the Company’s
        assets on a consolidated basis or (y) generated fifty percent (50%) or more
        of
        the Company’s pre-tax income on a consolidated basis in either of the two fully
        completed fiscal years of the Company immediately preceding the year in which
        the Change in Control occurs.

       

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      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 Company 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 Company
        immediately following such transaction or series of transactions.

       

      “Committee”
        means one or more committees or subcommittees of the Board appointed by
        the Board to administer the Plan in accordance with Section 4
        above.

      “Company”
        means Ninetowns Digital World Trade Holdings Limited, its successors and
        assigns; provided, however, that in the event the Company reincorporates
        to
        another jurisdiction, all references to the term “Company” shall refer to the
        Company in such new jurisdiction.

      “Consultant”
        means any person, including an advisor, who is engaged by the Company or
        any Affiliate to render services and is compensated for such
        services.

      “Continuous
        Service”
        means, notwithstanding any contrary provisions in any applicable agreement
        of
        any nature whatsoever, the uninterrupted period during which an Employee,
        Director or Consultant provides services to the Company at its request, but
        does
        not include any notice or period of payment of an indemnity in lieu of notice
        given upon termination of employment of an Employee for any reason whatsoever,
        if the Employee does not provide services to the Company during said notice
        or
        period. Continuous Service shall not be considered interrupted in the case
        of:
        (i) sick leave; (ii) military leave; (iii) any other leave of absence
        approved by the Committee, provided that such leave is for a period of not
        more
        than 90 days, unless reemployment upon the expiration of such leave is
        guaranteed by contract or statute, or unless provided otherwise pursuant
        to
        Company policy adopted from time to time; (iv) changes in status from
        Director to advisory director or emeritus status; or (iv) in the case of
        transfers between locations of the Company or between the Company, its
        Affiliates or their respective successors. Changes in status between service
        as
        an Employee, Director, and a Consultant will not constitute an interruption
        of
        Continuous Service.

      “Designated
        Broker”
        means a stock brokerage or other financial services firm independent from
        the
        Company or an Affiliate of the Company designated by the Committee from time
        to
        time for the purposes of the Plan. 

      “Director”
means
        a member of the Board who is not an Employee, or a member of the
        board of directors of an Affiliate who is not an Employee.

      “Disabled”
        means a condition under which a Participant --

      (a)         is
        unable to engage in any substantial gainful activity by reason of any
        medically determinable physical or mental impairment which can be expected
        to
        result in death or can be expected to last for a continuous period of not
        less
        than 12 months, or

      (b)        is,
        by reason of any medically determinable physical or mental impairment which
        can
        be expected to result in death or can be expected to last for a continuous
        period of not 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      less
        than 12 months, received income replacement benefits for a period of
        not less than 3 months under an accident or health plan covering employees
        of
        the Company.

      “Eligible
        Person”
        means any Consultant, Director or Employee and includes non-Employees to
        whom an
        offer of employment has been extended.

      “Employee”
        means any person whom the Company or any Affiliate classifies as an
        employee (including an officer) for employment tax purposes, whether or not
        that
        classification is correct. The payment by the Company of a director’s fee to a
        Director shall not be sufficient to constitute “employment” of such Director by
        the Company.

      “Fair
        Market
        Value”
        means, as of any date (the “Determination
        Date”), in any currency specified in an Award Agreement,
        subject to the absolute discretion of the Committee to make any currency
        conversions that the Committee considers necessary or appropriate: (i) the
        closing price of a Share on the NASDAQ Stock Exchange (the “NASDAQ”), on the Determination
        Date, or, if
        shares were not traded on the Determination Date, then on the nearest preceding
        trading day during which a sale occurred; or (ii) if such stock is not
        traded on the NASDAQ or a successor quotation system, but is otherwise traded
        in
        the over-the-counter market, the mean between the representative bid and
        asked
        prices on the Determination Date; or (iii) if subsections (i) and(ii) do
        not apply, the fair market value established in good faith by the Board (and
        satisfactory to the NASDAQ if the Shares are then listed there).

      “Grant
        Date”
        has
        the meaning set forth in Section 14 of the Plan.

      “Involuntary
        Termination” means
        termination of a Participant’s Continuous Service under the
        following circumstances occurring on or after a Change in Control: (i)
        termination without Cause by the Company or an Affiliate or successor thereto,
        as appropriate; or (ii) voluntary termination by the Participant within one
        year
        following (A) a material reduction in the Participant’s job responsibilities,
        provided that neither a mere change in title alone nor reassignment to a
        substantially similar position shall constitute a material reduction in job
        responsibilities; (B) an involuntary relocation of the Participant’s work site
        to a facility or location more than 60 miles from the Participant’s principal
        work site at the time of the Change in Control; or (C) a material reduction
        in
        Participant’s total compensation other than as part of an reduction by the same
        percentage amount in the compensation of all other similarly-situated Employees,
        Directors or Consultants. 

      “Option”
        means any stock option granted pursuant to Section 6 of the
        Plan.

      “Participant”
        means any holder of one or more Awards, or
        the Shares issuable or issued upon exercise of such Awards, under the
        Plan.

      “Performance
        Awards” mean
        Performance Units and Performance Compensation Awards granted
        pursuant to Section 10.

      “Performance
        Compensation
        Awards”
        mean Awards granted pursuant to Section 10(b) of the Plan.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      “Performance
        Unit”
        means Awards granted pursuant to Section 10(a) of the Plan which may be paid
        in
        cash, in Shares, or such combination of cash and Shares as the Committee
        in its
        sole discretion shall determine and so shall be set out in the applicable
        Award
        Agreement.

      “Person”
        means any natural person, association, trust, business trust,
        cooperative, corporation, general partnership, joint venture, joint-stock
        company, limited partnership, limited liability company, real estate investment
        trust, regulatory body, governmental agency or instrumentality, unincorporated
        organization or organizational entity.

      “Plan”
        means this Ninetowns Digital World Trade Holdings Limited 2006 Share
        Incentive Plan.

      “Restricted
        Shares”
        mean Shares subject to restrictions imposed pursuant to Section 8 of the
        Plan.

      “Restricted
        Share
        Units”
        mean Awards pursuant to Section 8 of the Plan.

      “Retirement”
means
        termination of employment from the Company by a Participant whose
        age and years of service together equal 90 or more. 

      “SAR”
or
“Share
        Appreciation
        Right” means
        Awards granted pursuant to Section 7 of the Plan.

      “Share”
        means a share of common stock of the Company, as adjusted in accordance
        with Section 13 of the Plan.

      “Unrestricted
        Shares”
        mean Shares awarded pursuant to Section 8 of the Plan. 

       

       

       

       

       

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

       

      NINETOWNS
        DIGITAL WORLD TRADE HOLDINGS LIMITED

       

      2006
        SHARE INCENTIVE PLAN

       

      _____________________

       

      Appendix
        II: Sub-plan For China

      _____________________

      [This
        sub-plan shall be adopted as necessary by the
        Board]

      This
        Appendix II applies to any Awards that are made to Eligible Persons
        who are residents of China and who are or may become subject to tax under
        Chinese law (i.e. income tax, employment and/or social security tax) as a
        result
        of Awards granted under the Ninetowns Digital World Trade Holdings Limited
        2006
        Stock Incentive Plan (the “Plan”)

      This
        Appendix II shall be read in conjunction with the Plan and is
        subject to the terms and conditions of the Plan; provided that to the extent
        that the terms and conditions of the Plan differ from or conflict with the
        terms
        of this Appendix II, the terms of this Appendix II shall prevail. 

      
        	
                 

                 

              	
                The
                  terms and conditions of this Appendix III are that of the Plan,
                  modified as follows:

                 

              

      

      1.            Application.
        This Sub-plan shall apply only in
        relation to Awards granted to eligible Employees residing and providing services
        in China.

       

      2.            Definitions.
        Unless otherwise defined herein, the
        definitions set forth in Appendix A of the Plan are applicable
        to this Sub-plan.

       

      3.            Special
        Rules. The following provisions shall
        supersede any contrary provisions of the Plan:

       

      
        	
                 

                 

              	
                (a)

                 

              	
                Section
                  __ of the Plan shall be ____________.

                 

              

      

      
        	
                 

                 

              	
                (b)

                 

              	
                Section
                  __ of the Plan shall be ____________.

                 

              

      

      4.            Governing
        Law. The Plan shall be governed by and
        construed in accordance with the laws of the People’s Republic of
        China.

       

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

       

      NINETOWNS
        DIGITAL WORLD TRADE HOLDINGS LIMITED

      2006
        SHARE INCENTIVE PLAN 

      ___________________

       

      Appendix
        III: Sub-plan For Hong Kong

      __________________

      [This
        sub-plan shall be adopted as necessary by the
        Board]

       

      This
        Appendix III applies to any Awards that are made to Eligible Persons
        who are residents of Hong Kong and who are or may become subject to Hong
        Kong
        tax (i.e. income tax, employment and/or social security tax) as a result
        of
        Awards granted under the Ninetowns Digital World Trade Holdings Limited 2006
        Stock Incentive Plan (the “Plan”).

      This
        Appendix III shall be read in conjunction with the Plan and is
        subject to the terms and conditions of the Plan; provided that to the extent
        that the terms and conditions of the Plan differ from or conflict with the
        terms
        of this Appendix III, the terms of this Appendix III shall prevail.

      
        	
                 

                 

              	
                The
                  terms and conditions of this Appendix III are that of the Plan,
                  modified as follows:

                 

              

      

      1.            Application.
        This Sub-plan shall apply only in
        relation to Awards granted to eligible Employees residing and providing services
        in Hong Kong.

       

      2.            Definitions.
        Unless otherwise defined herein, the
        definitions set forth in Appendix A of the Plan are applicable
        to this Sub-plan.

       

      3.            Special
        Rules. The following provisions shall
        supersede any contrary provisions of the Plan:

       

      
        	
                 

                 

              	
                (a)

                 

              	
                Section
                  __ of the Plan shall be ____________.

                 

              

      

      
        	
                 

                 

              	
                (b)

                 

              	
                Section
                  __ of the Plan shall be ____________.

                 

              

      

      4.            Governing
        Law. The Plan shall be governed by and
        construed in accordance with the laws of Hong Kong.

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