Document:

EXHIBIT 10.1

                           AMERICAN EXPRESS COMPANY
                       2007 INCENTIVE COMPENSATION PLAN
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      1. PURPOSE. The purpose of the 2007 Incentive Compensation Plan (the
"Plan" or the "2007 Plan") is to promote shareholder value and the future
success of American Express Company (the "Company") by providing appropriate
retention and performance incentives to the employees of the Company and its
affiliates and certain other individuals who perform services for the Company
and its affiliates.

      2. ADMINISTRATION. The Plan shall be administered solely by the
Compensation and Benefits Committee (the "Committee") of the Board of
Directors (the "Board") of the Company, as such Committee is from time to time
constituted, or any successor committee the Board may designate to administer
the Plan. The Committee shall consist of no fewer than two directors (or such
greater number as may be required for committees of the Board under the
Company's governing documents), each of whom is (i) a "Non-Employee Director"
within the meaning of Rule 16b-3 of the Securities Exchange Act of 1934, as
amended, or any successor provision (the "Exchange Act"); (ii) an "outside
director" within the meaning of Section 162(m) of the Internal Revenue Code of
1986, as amended (the "Code"); and (iii) an "independent director" for purpose
of the rules and regulations of the New York Stock Exchange (the "NYSE") (or
such other principal securities market on which the Common Shares are traded).
The Committee may delegate any of its powers and duties to appropriate
officer(s) of the Company in accordance with guidelines established by the
Committee from time to time.

      The Committee has all the powers vested in it by the terms of the Plan
set forth herein, such powers to include exclusive authority (except as may be
delegated as permitted herein) to select the employees and other individuals
to be granted awards under the Plan ("Awards"), to determine the type, size
and terms of the Award to be made to each individual selected, to modify the
terms of any Award that has been granted, to determine the time when Awards
will be granted, to establish performance objectives, and to prescribe the
form of the instruments embodying Awards made under the Plan. The Committee
has the power and authority to make any adjustments necessary or desirable as
a result of the granting of Awards to eligible individuals located outside the
United States, and to adopt, to amend or to rescind rules, procedures or
subplans relating to the operation and administration of the Plan in order to
accommodate local laws, policies, customs, procedures or practices, and
accounting, tax or other regulatory standards, or to facilitate the
administration of the Plan, including, but not limited to, the authority to
adopt, to amend or to rescind rules, procedures and subplans that limit or
vary: the methods available to exercise Awards; the methods available to
settle Awards; the methods available for the payment of income taxes, social
insurance contributions and employment taxes; the procedures for withholding
on Awards; and the use of stock certificates or other indicia of ownership.
The Committee may also adopt rules, procedures or subplans applicable to
particular Affiliates or locations.

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      Notwithstanding the foregoing or any other provision of the Plan, except
for adjustments pursuant to Paragraph 9(c) or 15, the Committee shall not
reprice, adjust or amend the option price of Stock Options or the exercise
price of Stock Appreciation Rights previously awarded to any participant,
whether through amendment, cancellation and replacement grant, or any other
means, unless such action is approved by the shareholders of the Company. For
purposes of the Plan, the term "reprice" shall mean: (i) the reduction,
directly or indirectly, in the per-share exercise price of an outstanding
Stock Option or Stock Appreciation Right by amendment, cancellation or
substitution; (ii) any action that is treated as a repricing under United
States generally accepted accounting principles; (iii) canceling a Stock
Option or Stock Appreciation Right in exchange for another Stock Option, Stock
Appreciation Right or other equity security (unless the cancellation and
exchange occurs in connection with a merger, acquisition, or similar
transaction); and (iv) any other action that is treated as a repricing by the
rules or regulations of any stock exchange on which the securities of the
Company are traded. In addition, notwithstanding any other provision in the
Plan to the contrary, a Stock Option may not be surrendered in consideration
of or exchanged for cash, other Awards, or a new Stock Option having an option
price below that of the Stock Option which was surrendered or exchanged,
unless the exchange occurs in connection with a merger, acquisition, or
similar transaction, or such action is approved by the shareholders of the
Company. Any amendment or repeal of this provision shall require the approval
of the shareholders of the Company.

      The Committee is authorized to interpret the Plan and the Awards granted
under the Plan, to establish, amend and rescind any rules and regulations
relating to the Plan, and to make any other determinations which it deems
necessary or desirable for the administration of the Plan. The Committee (or
its delegate as permitted herein) may correct any defect or supply any
omission or reconcile any inconsistency in the Plan or in any Award in the
manner and to the extent the Committee deems necessary or desirable to carry
it into effect. Any decision of the Committee (or its delegate as permitted
herein) in the interpretation and administration of the Plan, as described
herein, shall lie within its sole and absolute discretion and shall be final,
conclusive and binding on all parties concerned. The Committee may act only by
a majority of its members in office, except that the members thereof may
authorize any one or more of their members or any officer of the Company to
execute and deliver documents or to take any other action on behalf of the
Committee with respect to Awards made or to be made to Plan participants. No
member of the Committee and no officer of the Company shall be liable for
anything done or omitted to be done by him, by any other member of the
Committee or by any officer of the Company in connection with the performance
of duties under the Plan, except for his own willful misconduct or as
expressly provided by statute.

      3. PARTICIPATION.

      (a) PARTICIPANTS. Consistent with the purposes of the Plan, the
Committee shall have exclusive power (except as may be delegated as permitted
herein) to select the employees and other individuals performing services for
the Company and its Affiliates who may participate in the Plan and be granted
Awards under the Plan. Eligible individuals may be selected individually or by
groups or categories, as determined by the Committee in its discretion. No
non-employee director of the Company or any of its Affiliates shall be
eligible to receive an Award under the Plan.

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      (b) AFFILIATES. Unless the Committee determines otherwise, as used
herein, the term "Affiliate" means any entity in which the Company has a
direct or indirect equity interest of 50 percent or more, as determined by the
Committee in its discretion.

      4. AWARDS UNDER THE PLAN.

      (a) TYPES OF AWARDS. Awards under the Plan may include one or more of
the following types, either alone or in any combination thereof: (i) "Stock
Options"; (ii) "Stock Appreciation Rights"; (iii) "Restricted Stock" and
"Restricted Stock Units"; (iv) "Performance Grants"; and (v) any Award
providing benefits similar to (i) through (iv) that may be required to obtain
regulatory approval in certain jurisdictions or in situations where local
regulations may adversely affect the employee.

      Stock Options, which include "Nonqualified Stock Options" and "Incentive
Stock Options" or combinations thereof, are rights to purchase common shares
of the Company having a par value of $.20 per share and stock of any other
class into which such shares may thereafter be changed (the "Common Shares").
Nonqualified Stock Options and Incentive Stock Options are subject to the
terms, conditions and restrictions specified in Paragraph 5. Stock
Appreciation Rights are rights to receive (without payment to the Company)
cash, Common Shares, or other debt or equity securities of the Company or an
Affiliate, or any combination thereof ("Other Company Securities"), or
property, or other forms of payment, or any combination thereof, as determined
by the Committee, based on the increase in the value of the number of Common
Shares specified in the Stock Appreciation Right. Stock Appreciation Rights
are subject to the terms, conditions and restrictions specified in Paragraph
6. Shares of Restricted Stock are Common Shares that are issued subject to
certain restrictions pursuant to Paragraph 7. Restricted Stock Units are an
Award that is valued by reference to a share of Common Shares, which value may
be paid to the participant by delivery of such property as the Committee shall
determine, including without limitation, cash, Common Shares, Other Company
Securities or property, or other forms of payment, or any combination thereof,
and that are issued subject to certain restrictions pursuant to Paragraph 7.
Performance Grants are contingent Awards subject to the terms, conditions and
restrictions described in Paragraph 8, pursuant to which the participant may
become entitled to receive cash, Common Shares, Other Company Securities or
property, or other forms of payment, or any combination thereof, as determined
by the Committee.

      (b) DIVIDEND EQUIVALENTS. The Committee may choose, at the time of the
grant of an Award or any time thereafter up to the time of the Award's
payment, to include or to exclude as part of such Award an entitlement to
receive cash dividends or dividend equivalents, subject to such terms,
conditions, restrictions or limitations, if any, as the Committee may
establish. Dividends and dividend equivalents shall be paid in such form and
manner (i.e., lump sum or installments), and at such times as the Committee
shall determine. All dividends or dividend equivalents, which are not paid
currently, may, at the Committee's discretion, be held in escrow and accrue
interest or be reinvested into additional Common Shares subject to the same
vesting or performance conditions as the underlying Award.

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      (c) MAXIMUM NUMBER OF SHARES THAT MAY BE ISSUED. The maximum number of
Common Shares and other equity securities of the Company that may be issued
under the Plan is the number of shares remaining available for new awards
under the Company's 1998 Incentive Compensation Plan, as amended (the "1998
Plan"), on April 23, 2007, which number will not exceed 53 million. In
addition, commencing April 23, 2007, Common Shares or other equity securities
of the Company subject to awards outstanding under the 1998 Plan or granted
under the 2007 Plan which are recovered or not issued by the Company will be
available for issuance under the 2007 Plan, as follows: (i) shares related to
Awards issued under the 2007 Plan or the 1998 Plan that are forfeited,
terminated, canceled, acquired by the Company or expire unexercised; (ii)
shares surrendered or withheld to pay the exercise price of Awards issued
under the 2007 Plan or the 1998 Plan or to satisfy the tax withholding
obligations with respect to Awards issued under such plans; and (iii) shares
originally linked to Awards that are actually settled in cash or consideration
other than Common Shares or other equity securities. Limits on the number of
Common Shares that may be issued under the Plan as Awards of Incentive Stock
Options are described in Paragraph 5(e).

      Awards granted through the assumption of, or substitution for,
outstanding awards previously granted by a company acquired by the Company or
any Affiliate or with which the Company or any Affiliate combines, shall not
reduce the maximum number of Common Shares and other equity securities of the
Company that may be issued under the Plan or the maximum number of Common
Shares and other equity securities of the Company authorized for grant to a
participant in any calendar year described in Paragraph 9(b)(ii).

      For purposes of counting shares against the share reserve under the 2007
Plan on the date of grant, Awards denominated solely in Common Shares (such as
Stock Options and Restricted Stock) and other Awards or securities that may be
exercised for or convertible into Common Shares will be counted against the
2007 Plan reserve on the date of grant of the Award based on the maximum
number of shares underlying the Award, as determined by the Committee. Equity
securities other than Common Shares issued pursuant to the 2007 Plan which are
not exercisable for or convertible into Common Shares will be counted based on
the actual number of shares issued, if any.

      Common Shares and other equity securities of the Company issued pursuant
to the Plan may be authorized but unissued shares, treasury shares, reacquired
shares or any combination thereof.

      (d) RIGHTS WITH RESPECT TO COMMON SHARES AND OTHER SECURITIES.

      (i) Unless otherwise determined by the Committee in its discretion,
prior to the expiration of the Restricted Period, a participant to whom an
Award of Restricted Stock has been made (and any person succeeding to such a
participant's rights pursuant to the Plan) shall have ownership of such Common
Shares, including the right to vote the same and to receive dividends or other
distributions made or paid with respect to such Common Shares, subject,
however, to the restrictions and limitations imposed thereon pursuant to the
Plan.

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      (ii) Unless otherwise determined by the Committee in its discretion, any
new, additional or different shares, or Other Company Securities or property,
or other forms of consideration that a participant may be entitled to receive
with respect to an Award of Restricted Stock as a result of a stock split,
stock dividend or any other change in the corporate or capital structure of
the Company, shall be subject to the same restrictions and limitations as
those applicable to the Restricted Stock with respect to which such new,
additional or different shares, or Other Company Securities or property, or
other forms of consideration were received.

      (iii) A participant with whom an Award agreement is made to issue Common
Shares in the future shall have no rights as a shareholder with respect to
Common Shares related to such agreement until the book entry is made, or the
certificate is issued on his behalf.

      (iv) Unless otherwise determined by the Committee in its discretion, a
participant to whom a grant of Stock Options, Stock Appreciation Rights,
Performance Grants or any other Award is made (and any person succeeding to
such a participant's rights pursuant to the Plan) shall have no rights as a
shareholder with respect to any Common Shares or as a holder with respect to
other securities, if any, issuable pursuant to any such Award until the date
of the issuance of a stock certificate to him or the entry on his behalf of an
uncertificated book position on the records of the Company's transfer agent
and registrar for such Common Shares or other instrument of ownership, if any.
Except as provided in Paragraph 9(c) or 15, no adjustment shall be made for
dividends, distributions or other rights (whether ordinary or extraordinary,
and whether in cash, securities, other property or other forms of
consideration, or any combination thereof) for which the record date is prior
to the date such book entry is made or a stock certificate or other instrument
of ownership, if any, is issued.

      (v) The Committee may, in its discretion, subject any Award and the
economic value derived by a participant therefrom, to forfeiture by the
participant upon the occurrence of certain events as determined by the
Committee.

      5. STOCK OPTIONS. The Committee may grant Stock Options either alone, or
in conjunction with Stock Appreciation Rights, Performance Grants or other
Awards, either at the time of grant or by amendment thereafter. The Committee
may grant Incentive Stock Options to any employee provided the terms of such
grants comply with the provisions of Section 422 of the Code, or any successor
provision, and the regulations thereunder, and that any ambiguities in
construction shall be interpreted in order to effectuate that intent. Each
Stock Option granted under the Plan shall be evidenced by an instrument in
such form as the Committee shall prescribe from time to time in accordance
with the Plan and shall comply with the following terms and conditions, and
with such other terms and conditions, including, but not limited to,
restrictions upon the Stock Option or the Common Shares issuable upon exercise
thereof, as the Committee, in its discretion, shall establish:

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      (a) Except for Stock Options granted through the assumption of, or
substitution for, outstanding awards previously granted by a company acquired
by the Company or any Affiliate, or with which the Company or any Affiliate
combines, the option price shall be equal to or greater than the fair market
value of the Common Shares subject to such Stock Option at the time that the
Stock Option is granted. The Committee in its discretion shall establish the
expiration date of a Stock Option provided that, except as provided in
Paragraph 5(d)(iii)(B), in no event shall the expiration date be later than
ten years from the date of grant of the Stock Option.

      (b) The fair market value of a Common Share as of any specific time
shall be the per Common Share closing price as reported sale on the NYSE
composite tape on such date, or, if there is no such reported sale price of
Common Shares on the NYSE composite tape on such date, then the per Common
Share closing price as reported on the NYSE composite tape on the last
previous day on which sale price was reported on the NYSE composite tape, or
such other value as determined by the Committee in accordance with applicable
law. The fair market value of any property other than Common Shares shall be
the market value of such property as determined by the Committee using such
methods or procedures as it shall establish from time to time.

      (c) The Committee shall determine the number of Common Shares to be
subject to each Stock Option. The number of Common Shares subject to an
outstanding Stock Option may be reduced on a share-for-share or other
appropriate basis, as determined by the Committee, to the extent that Common
Shares under such Stock Option are used to calculate the cash, Common Shares,
Other Company Securities or property, or other forms of payment, or any
combination thereof, received pursuant to exercise of a Stock Appreciation
Right attached to such Stock Option, or to the extent that any other Award
granted in conjunction with such Stock Option is paid.

      (d) The Stock Option shall not be exercisable:

      (i) for at least one year after the date of grant, except (A) for Stock
Options issued to any person newly employed by or retained to perform services
for the Company or any Affiliate, (B) for Stock Options granted in the event
of a participant's promotion, (C) as the Committee may otherwise determine in
the event of death, disability, retirement or other termination of a
participant, or in connection with a corporate transaction (which includes but
is not limited to a change in control of the Company, a divestiture, spin-off,
split-off, asset transfer, outsourcing or joint venture formation) (each event
under this clause C, a "Defined Event"), and (D) for Stock Options granted
through the assumption of, or substitution for, outstanding awards previously
granted by a company acquired by the Company or any Affiliate or with which
the Company or any Affiliate combines, and only at such times and in such
installments as the Committee may establish; and

      (ii) unless payment in full for the Common Shares being acquired
thereunder at the time of exercise is made in such form as the Committee may
determine in its discretion, including, but not limited to (A) cash, (B)
Common Shares, (C) if permitted by the Committee, by authorizing a third party
to sell, on behalf of the participant, the appropriate number of Common Shares
otherwise issuable to the participant upon the exercise of the Stock Option
and to remit to the Company a sufficient portion of the sale proceeds to pay
the entire exercise price and any tax withholding resulting from such
exercise, or (D) any combination thereof; and

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      (iii) unless the participant has been, at all times during the period
beginning with the date of the grant of the Stock Option and ending on the
date of such exercise, employed by (in the case of an Incentive Stock Option)
or otherwise performing services for the Company or an Affiliate, or a
corporation, or a parent or subsidiary of a corporation, substituting or
assuming the Stock Option in a transaction to which Section 424(a) of the Code
or any successor statutory provision thereto, is applicable, except that:

      (A) in the case of any Nonqualified Stock Option, if such person shall
cease to be employed by or otherwise performing services for the Company or an
Affiliate solely by reason of a period of Related Employment as defined in
Paragraph 14, he may, during such period of Related Employment, exercise the
Nonqualified Stock Option as if he continued such employment or performance of
service; and

      (B) the Committee may establish, in its discretion, the extent to which
a person may continue to exercise a Stock Option, which has not expired and
has not been fully exercised, in the event he terminates employment or the
performance of services; and in the event of death, the Committee may provide
a decedent's executors, heirs or distributors a minimum period to exercise a
Stock Option with respect to any shares as to which the decedent could have
exercised the Stock Option at the time of his death, or such greater amount as
the Committee may determine, which period may extend beyond the original
expiration date of the Stock Option.

      (e) The maximum number of Common Shares that may be issued under the
Plan pursuant to Incentive Stock Options may not exceed, in the aggregate, 25
million, subject to adjustment as provided in Paragraph 9(b) or 15. Common
Shares issued under the Plan as an Incentive Stock Option shall again become
available for issuance pursuant to this limitation upon the forfeiture,
termination or cancellation of such Incentive Stock Option.

      (f) To the extent that the aggregate fair market value (determined as of
the date of grant) of the Common Shares with respect to which Incentive Stock
Options are exercisable for the first time by any individual during any
calendar year (under all plans of the Company and its Affiliates) exceeds
$100,000, such Incentive Stock Options or portions thereof which exceed such
limit (according to the order in which they were granted) shall be treated as
Nonqualified Stock Options.

      6. STOCK APPRECIATION RIGHTS. The Committee may grant Stock Appreciation
Rights either alone, or in conjunction with Stock Options, Performance Grants
or other Awards, either at the time of grant or by amendment thereafter. Each
Award of Stock Appreciation Rights granted under the Plan shall be evidenced
by an instrument in such form as the Committee shall prescribe from time to
time in accordance with the Plan and shall comply with the following terms and
conditions, and with such other terms and conditions, including, but not
limited to, restrictions upon the Award of Stock Appreciation Rights or the
Common Shares issuable upon exercise thereof, as the Committee, in its
discretion, may establish:

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      (a) A Stock Appreciation Right granted in conjunction with, but
subsequent to, a Stock Option shall have a per-share exercise price not less
than fair market value of a Common Share on the date that the Stock Option to
which the Stock Appreciation Right is attached was granted.

      (b) The Committee shall determine the number of Common Shares to be
subject to each Award of Stock Appreciation Rights. The number of Common
Shares subject to an outstanding Award of Stock Appreciation Rights may be
reduced on a share-for-share or other appropriate basis, as determined by the
Committee, to the extent that Common Shares under such Award of Stock
Appreciation Rights are used to calculate the cash, Common Shares, Other
Company Securities or property or other forms of payment, or any combination
thereof, received pursuant to exercise of a Stock Option attached to such
Award of Stock Appreciation Rights, or to the extent that any other Award
granted in conjunction with such Award of Stock Appreciation Rights is paid.

      (c) The Award of Stock Appreciation Rights shall not be exercisable for
at least one year after the date of grant, except (A) for Stock Appreciation
Rights issued to any person newly employed by or retained to perform services
for the Company or any Affiliate; (B) for Stock Appreciation Rights granted in
the event of a participant's promotion; (C) as the Committee may otherwise
determine in the event of a Defined Event; and (D) for Stock Appreciation
Rights granted through the assumption of, or substitution for, outstanding
awards previously granted by a company acquired by the Company or any
Affiliate or with which the Company or any Affiliate combines, and only at
such times and in such installments as the Committee may establish.

      (d) The Award of Stock Appreciation Rights shall not be exercisable:

      (i) unless the Stock Option or other Award to which the Award of Stock
Appreciation Rights is attached is at the time exercisable; and

      (ii) unless the person exercising the Award of Stock Appreciation Rights
has been at all times during the period beginning with the date of the grant
thereof and ending on the date of such exercise, employed by or otherwise
performing services for the Company or an Affiliate, except that:

      (A) in the case of any Award of Stock Appreciation Rights (other than
those attached to an Incentive Stock Option), if such person shall cease to be
employed by or otherwise performing services for the Company or an Affiliate
solely by reason of a period of Related Employment as defined in Paragraph 14,
he may, during such period of Related Employment, exercise the Award of Stock
Appreciation Rights as if he continued such employment or performance of
services; and

      (B) the Committee shall establish, in its discretion, the extent to
which a person may continue to exercise an Award of Stock Appreciation Rights,
which has not expired and has not been fully exercised, in the event he
terminates employment or the performance of services; and in the event of
death, the Committee may provide his executors, heirs or distributors a
minimum period to exercise an Award of Stock Appreciation Rights with respect
to any shares as to which the decedent could have exercised the Award of Stock
Appreciation Rights, or such greater amount as the Committee may determine,
which period may extend beyond the original expiration date of the Award of
Stock Appreciation Rights.

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      (e) An Award of Stock Appreciation Rights shall entitle the holder (or
any person entitled to act under the provisions of Paragraph 6(d)(ii)(B)) to
exercise such Award and to surrender unexercised the Stock Option (or other
Award) to which the Stock Appreciation Right is attached (or any portion of
such Stock Option or other Award) to the Company and to receive from the
Company in exchange therefore, without payment to the Company, that number of
Common Shares having an aggregate value equal to (or, in the discretion of the
Committee, less than) the excess of the fair market value of one Common Share,
at the time of such exercise, over the exercise price (or option price, as the
case may be) per share, times the number of shares subject to the Award or the
Stock Option (or other Award), or portion thereof, which is so exercised or
surrendered, as the case may be. The Committee shall be entitled in its
discretion to elect to settle the obligation arising out of the exercise of a
Stock Appreciation Right by the payment of cash or Other Company Securities or
property, or other forms of payment, or any combination thereof, as determined
by the Committee, equal to the aggregate fair market value of the Common
Shares it would otherwise be obligated to deliver. Any such election by the
Committee shall be made as soon as practicable after the receipt by the
Committee of written notice of the exercise of the Stock Appreciation Right.

      (f) An Award of Stock Appreciation Rights may provide that it shall be
deemed to have been exercised at the close of business on the business day
preceding the expiration date of the Stock Appreciation Right or of the
related Stock Option (or other Award), or such other date as specified by the
Committee, if at such time such Stock Appreciation Right has a positive value.
Such deemed exercise shall be settled or paid in the same manner as a regular
exercise thereof, as provided in Paragraph 6(e).

      (g) No fractional shares may be delivered under this Paragraph 6, but in
lieu thereof a cash or other adjustment shall be made as determined by the
Committee in its discretion.

      7. RESTRICTED STOCK; RESTRICTED STOCK UNITS. Each Award of Restricted
Stock or Restricted Stock Units under the Plan shall be evidenced by an
instrument in such form as the Committee shall prescribe from time to time in
accordance with the Plan and shall comply with the following terms and
conditions, and with such other terms and conditions as the Committee, in its
discretion, shall establish:

      (a) The Committee shall determine the number of Common Shares to be
issued to a participant pursuant to the Award, and the extent, if any, to
which they shall be issued in exchange for cash, other consideration, or both.

      (b) Restricted Stock Units and the Common Shares issued to a participant
in accordance with the Award of Restricted Stock may not be sold, assigned,
transferred, pledged, hypothecated or otherwise disposed of, except by will or
the laws of descent and distribution, or as otherwise determined by the
Committee, for such period as the Committee shall determine, from the date on
which the Award is granted (the "Restricted Period"). Any attempt to dispose
of any such Restricted Stock Units or Common Shares in contravention of the
foregoing restrictions shall be null and void and without effect.

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      (c) Common Shares issued to a participant in accordance with the Award
of Restricted Stock may be issued in certificate form or through the entry of
an uncertificated book position on the records of the Company's transfer agent
and registrar. The Company may impose appropriate restrictions on the transfer
of such Common Shares which shall be evidenced in the manner permitted by law
as determined by the Committee in its discretion.

      (d) The vesting of the Award of Restricted Stock or Restricted Stock
Units may be conditioned upon the attainment of specific performance
objectives as the Committee may determine, including but not limited to such
performance objectives described in Paragraph 8(b).

      (e) The Restricted Period shall be for a minimum of three years (but
permitting pro rata vesting over such period), except (i) for Restricted Stock
or Restricted Stock Units issued to any person newly employed by or retained
to perform services for the Company or any Affiliate; (ii) for Restricted
Stock or Restricted Stock Units granted in the event of a participant's
promotion; (iii) as the Committee may otherwise determine in the event of a
Defined Event; (iv) for Restricted Stock or Restricted Stock Units granted
through the assumption of, or substitution for, outstanding awards previously
granted by a company acquired by the Company or any Affiliate or with which
the Company or any Affiliate combines; (v) for Restricted Stock or Restricted
Stock Units issued subject to performance objectives, for which the Restricted
Period shall be a minimum of one year; or (vi) for Restricted Stock or
Restricted Stock Units issued as payment pursuant to a Performance Grant or
Qualifying Award, and only at such times and in such installments as the
Committee may establish.

      8. PERFORMANCE GRANTS. The Award of a Performance Grant to a participant
will entitle the participant to receive a specified amount determined by the
Committee (the "Actual Value"), if the terms and conditions specified herein
and in the Award are satisfied. The Award of a Performance Grant shall be
subject to the following terms and conditions, and to such other terms and
conditions, including but not limited to, restrictions upon any cash, Common
Shares, Other Company Securities or property, or other forms of payment, or
any combination thereof, issued in respect of the Performance Grant, as the
Committee, in its discretion, shall establish, and shall be embodied in an
instrument in such form and substance as is determined by the Committee:

      (a) The Committee shall determine the value or the range of values of a
Performance Grant to be awarded to each participant selected for an Award of a
Performance Grant and whether or not such Performance Grant is granted in
conjunction with an Award of Stock Options, Stock Appreciation Rights,
Restricted Stock or other Award, or any combination thereof, under the Plan
(which may include, but need not be limited to, deferred Awards) concurrently
or subsequently granted to the participant (the "Associated Award").
Performance Grants may be issued in different classes or series having
different names, terms and conditions. In the case of a Performance Grant
awarded in conjunction with an Associated Award, the Performance Grant may be
reduced on an appropriate basis to the extent that the Associated Award has
been exercised by, paid to or otherwise received by the participant, as
determined by the Committee.

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      (b) The award period (the "Award Period") in respect of any Performance
Grant shall be a period determined by the Committee. The Award Period shall be
for a minimum of one year, except (i) for Performance Grants issued to any
person newly employed by or retained to perform services for the Company or
any Affiliate, (ii) for Performance Grants granted in the event of a
participant's promotion, (iii) as the Committee may otherwise determine in the
event of a Defined Event, and (iv) for Performance Grants granted through the
assumption of, or substitution for, outstanding awards previously granted by a
company acquired by the Company or any Affiliate or with which the Company or
any Affiliate combines, and only at such times and in such installments as the
Committee may establish.

      (c) The rights of a participant in a Performance Grant awarded to him
shall be provisional and may be canceled or paid in whole or in part, all as
determined by the Committee.

      9. QUALIFYING AWARDS. The Committee may, in its sole discretion, grant
an Award (a "Qualifying Award") to any key employee with the intent that such
Award qualifies as "performance-based compensation" under Section 162(m) of
the Code, or any successor provision thereto, and the regulations thereunder
("Section 162(m)"). The provisions of this Paragraph 9, as well as all other
applicable provisions of the Plan not inconsistent with this Paragraph 9,
shall apply to all Qualifying Awards issued under the Plan, and any
ambiguities in construction shall be interpreted to effectuate that intent.
Qualifying Awards shall be of the type set forth in Paragraph 9(a) or 9(b).

      (a) Qualifying Awards may be issued as Stock Options and Stock
Appreciation Rights. Commencing with calendar year 2007, the number of Common
Shares underlying all Stock Options and Stock Appreciation Rights that may be
granted to any participant within any one calendar year shall be limited to
2,000,000 (inclusive of Stock Options or Stock Appreciation Rights granted
under the 1998 Plan during 2007), subject to adjustment as provided in
Paragraph 15.

      (b)(i) Qualifying Awards (other than Stock Options and Stock
Appreciation Rights) may be issued as Performance Grants or any other Award
whose payment is conditioned upon the achievement of the performance
objectives described in this Paragraph 9(b). Amounts earned under such Awards
shall be based upon the attainment of performance objectives established by
the Committee in accordance with Section 162(m). Such performance objectives
may vary by participant and by Award, and may be based upon the attainment of
specific or per-share amounts of, or changes in, one or more, or a combination
of two or more, of the following (that are required to be named in the plan
document): revenue, revenue growth or product revenue growth; net income
(before or after taxes); earnings (including earnings before taxes, earnings
before interest and taxes or earnings before interest, taxes, depreciation and
amortization) or earnings per share; shareholders' equity or return on
shareholders' equity; assets, return on assets or net assets; capital or
return on capital (including return on total capital or return on invested
capital); book value or book value per share; economic value added models or
equivalent metrics; operating income (before or after taxes); pre- or
after-tax income (before or after allocation of corporate overhead or
incentive compensation); expenses or reengineering savings; operating margins,
gross margins or cash margin; cash flow, cash flow per share (before or after
dividends) or cash flow return on investment; stock price or TSR; market
share; debt reduction; or regulatory achievements. The Committee may provide

                                      -11-
<PAGE>
that in measuring the achievement of the performance objectives, an Award may
include or exclude items such as realized investment gains and losses,
extraordinary, unusual or non-recurring items, asset write-downs, effects of
accounting changes, currency fluctuations, acquisitions, divestitures,
reserve-strengthening and other non-operating items. The foregoing objectives
may be applicable to the Company as a whole, one or more of its subsidiaries,
divisions, business units or business lines, or any combination of the
foregoing, and may be applied on an absolute basis or be relative to other
companies, industries or indices (e.g., stock market indices) or be based upon
any combination of the foregoing. In addition to the performance objectives,
the Committee may also condition payment of any such Award upon the attainment
of conditions, such as completion of a period of service, notwithstanding that
the performance objective or objectives specified in the Award are satisfied.
The Committee shall have the discretion, by participant and by Award, to
reduce (but not to increase) some or all of the amount that would otherwise be
payable under the Award by reason of the satisfaction of the performance
objectives set forth in the Award. In making any such determination, the
Committee is authorized in its discretion to take into account any such factor
or factors it determines are appropriate, including but not limited to
Company, business unit and individual performance.

      (ii) Under all Awards granted pursuant to Paragraph 9(b), in any one
calendar year: (A) no participant may be paid cash, Common Shares, Other
Company Securities or other property (other than shares of Restricted Stock or
Common Shares provided through Restricted Stock Units) or any combination of
the foregoing with a value (as determined by the Committee) in excess of $20
million, and (B) in addition, no participant may receive more than 410,000
shares of Restricted Stock or Common Shares provided through Restricted Stock
Units, subject to adjustment to the extent provided in Paragraph 9(c). For
purposes of the foregoing sentence, the calendar year or years in which
amounts under Qualifying Awards are deemed paid or received shall be as
determined by the Committee.

      (c) In the event of a change in the outstanding Common Shares of the
Company by reason of any change in corporate capitalization, such as a stock
split or dividend, or a corporate transaction, such as any merger of the
Company into another corporation, any consolidation of two or more
corporations into another corporation, any separation of a corporation
(including a spin-off or other distribution of stock or property by a
corporation), any reorganization of a corporation (whether or not such
reorganization comes within the definition of such term in Section 368 of the
Code), or any partial or complete liquidation by the Company, the Committee
shall make such adjustment in: (i) the individual Qualifying Award maximums
under Paragraphs 9(a) and 9(b)(ii); and (ii) the class and number of shares
subject to any Qualifying Awards granted under the Plan (provided that the
number of shares of any class subject to Awards shall always be a whole
number), to reflect any such change as may be determined to be appropriate by
the Committee, and such adjustments shall be final, conclusive and binding for
all purposes of the Plan.

                                      -12-
<PAGE>
      10. PAYMENT OF AWARDS. The Committee may, in its discretion, settle any
Award through the payment of cash, the delivery of Common Shares or Other
Company Securities, the granting of Awards, or a combination thereof. Any
Award settlement, including payment deferrals, may be subject to conditions,
restrictions and contingencies as the Committee shall determine. The Committee
may permit or require the deferral of any Award payment, subject to such
terms, rules and procedures as the Committee may establish, which may include
provisions for the payment or crediting of interest, or dividend equivalents,
including converting such credits into deferred Common Share equivalents;
provided, that the Committee shall not have any such authority to the extent
that the grant of such authority would cause any excise tax to become due
under Section 409A of the Code.

      11. AMENDMENT OF THE PLAN OR AWARDS. The Plan may be amended in whole or
in part at any time and from time to time by the Board, and the terms of any
outstanding Award under the Plan may be amended from time to time by the
Committee in its discretion in any manner that it deems, provided however,
that no amendment may be made without shareholder approval if such amendment
would (i) increase the number of shares available for grant specified in
Paragraph 4(c); (ii) decrease the minimum Stock Option exercise price set
forth in Paragraph 5(a) (other than changes made pursuant to Paragraph 9(c) or
15); (iii) reduce the minimum vesting or performance periods set forth in
Paragraph 5(d)(i), 6(c), 7(d) or 8(b); (iv) change the aggregate or annual
Award limits set forth in Paragraph 5(e), 5(f), 9(a) or 9(b)(ii) (other than
changes made pursuant to Paragraph 9(c) or 15); (v) amend or repeal the
prohibitions against repricing or exchange set forth in Paragraph 2; or (vi)
in the absence of shareholder approval, adversely affect compliance of the
Plan with applicable laws, rules and regulations. No such amendment shall
adversely affect in a material manner any right of a participant under the
Award without his written consent, unless the Committee determines in its
discretion that there have occurred or are about to occur significant changes
in the participant's position, duties or responsibilities, or significant
changes in economic, legislative, regulatory, tax, accounting or cost/benefit
conditions which are determined by the Committee in its discretion to have or
to be expected to have a significant effect on the performance of the Company,
or any subsidiary, Affiliate, division or department thereof, on the Plan or
on any Award under the Plan. Any shareholder approval requirement under the
Plan will be met if such approval is obtained in accordance with applicable
law. Notwithstanding the foregoing, any amendment to the Plan or any
outstanding Award under the Plan shall be made in a manner as to ensure that
an Award intended to be exempt from Section 409A of the Code will continue to
be exempt from Section 409A of the Code or that the Award will comply with the
requirements of Section 409A of the Code.

      12. DISABILITY. For the purposes of this Plan, a participant shall be
deemed to have terminated his employment or performance of services for the
Company and its Affiliates by reason of disability, if the Committee shall
determine that the physical or mental condition of the participant by reason
of which such employment or performance of services terminated was such at
that time as would entitle him to payment of monthly disability benefits under
the Company's Long-Term Disability Benefit Plan, or, if the participant is not
eligible for benefits under such plan, under any similar disability plan of
the Company or an Affiliate in which he is a participant. If the participant
is not eligible for benefits under any disability plan of the Company or an
Affiliate, he shall be deemed to have terminated such employment or
performance of services by reason of disability if the Committee shall
determine that his physical or mental condition would entitle him to benefits
under the Company's Long-Term Disability Benefit Plan if he were eligible
therefore. Notwithstanding the above, the Committee may determine a
participant's disability based upon any other criteria specified by the
Committee.

                                      -13-
<PAGE>
      13. TERMINATION OF A PARTICIPANT. For all purposes under the Plan, the
Committee shall determine whether a participant has terminated employment with
or the performance of services for the Company and its Affiliates; provided,
however, that transfers between the Company and an Affiliate or between
Affiliates, and approved leaves of absence shall not be deemed such a
termination.

      14. RELATED EMPLOYMENT. For the purposes of the Plan, Related Employment
shall mean the employment or performance of services by an individual for an
employer that is neither the Company nor an Affiliate, provided that (a) such
employment or performance of services is undertaken by the individual at the
request of the Company or an Affiliate; (b) immediately prior to undertaking
such employment or performance of services, the individual was employed by or
performing services for the Company or an Affiliate or was engaged in Related
Employment as herein defined; and (c) such employment or performance of
services is in the best interests of the Company and is recognized by the
Committee, in its discretion, as Related Employment for purposes of this
Paragraph 14. The death or disability of an individual during a period of
Related Employment as herein defined shall be treated, for purposes of this
Plan, as if the death or onset of disability had occurred while the individual
was employed by or performing services for the Company or an Affiliate.

      15. DILUTION AND OTHER ADJUSTMENTS.

      (a) In the event of any change in the outstanding Common Shares of the
Company by reason of any stock split, stock dividend, split-up, split-off,
spin-off, recapitalization, merger, consolidation, rights offering,
reorganization, combination, subdivision or exchange of shares, a sale by the
Company of all or part of its assets, any distribution to shareholders other
than a normal cash dividend, or other extraordinary or unusual event, the
Committee shall make such adjustment in: (i) the class and aggregate number of
shares that may be delivered under the Plan as described in Paragraph 4(c) and
the individual Award maximums under Paragraph 5(e); (ii) the class, number and
option price of outstanding Stock Options; (iii) the class, number and
exercise price of outstanding Stock Appreciation Rights; and (iv) the class
and number of shares subject to any other Awards (except for Qualifying
Awards, for which permitted adjustments are provided by Paragraph 9(c))
granted under the Plan (provided that the number of shares of any class
subject to Awards shall always be a whole number), as may be determined to be
appropriate by the Committee, and such adjustments shall be final, conclusive
and binding for all purposes of the Plan.

      (b) The Committee may also provide for the adjustment and settlement of
outstanding Awards as it deems appropriate and consistent with the Plan's
purpose in the event of a "change in control" of the Company, as that term is
defined in the Company's Senior Executive Severance Plan.

      16. DESIGNATION OF BENEFICIARY BY PARTICIPANT. A participant may name a
beneficiary to receive any payment to which he may be entitled in respect of
any Award under the Plan in the event of his death, on a written form to be
provided by and filed with the Secretary of the Company, and in a manner
determined by the Committee in its discretion. The Committee reserves the
right to review and approve beneficiary designations. A participant may change
his beneficiary from time to time in the same manner, unless such participant
has made an irrevocable designation. Any designation of beneficiary under the
Plan (to the extent it is valid and enforceable under the applicable law)

                                      -14-
<PAGE>
shall be controlling over any other disposition, testamentary, or otherwise,
as determined by the Committee in its discretion. If no designated beneficiary
survives the participant and is living on the date on which any amount becomes
payable to such participant's beneficiary, such payment will be made to the
legal representatives of the participant's estate, and the term "beneficiary"
as used in the Plan shall be deemed to include such person or persons. If
there is any question as to the legal right of any beneficiary to receive a
distribution under the Plan, the Committee in its discretion may determine
that the amount in question be paid to the legal representatives of the estate
of the participant, in which event the Company, the Board and the Committee
and the members thereof will have no further liability to anyone with respect
to such amount.

      17. MISCELLANEOUS PROVISIONS.

      (a) No loans from the Company or any Affiliate to a participant shall be
permitted in connection with the Plan.

      (b) No employee or other person shall have any claim or right to be
granted an Award under the Plan. Determinations made by the Committee under
the Plan need not be uniform and may be made selectively among eligible
individuals under the Plan, whether or not such eligible individuals are
similarly situated. Neither the Plan nor any action taken hereunder shall be
construed as giving any employee or other person any right to continue to be
employed by or perform services for the Company or any Affiliate, and the
right to terminate the employment of or performance of services by any
participant at any time and for any reason is specifically reserved.

      (c) No participant or other person shall have any right with respect to
the Plan, the Common Shares reserved for issuance under the Plan or in any
Award, contingent or otherwise, until written evidence of the Award shall have
been delivered to the recipient and all the terms, conditions and provisions
of the Plan and the Award applicable to such recipient (and each person
claiming under or through him) have been met.

      (d) An Award and a participant's rights and interest under the Award,
may not be sold, assigned or transferred, hypothecated or encumbered in whole
or in part either directly or by operation of law or otherwise (except in the
event of a participant's death) including, but not by way of limitation,
execution, levy, garnishment, attachment, pledge, bankruptcy or in any other
manner; provided, however, that the Committee may allow a participant to
assign or transfer without consideration an Award to one or more members of
his immediate family, to a partnership of which the only partners are the
participant or members of the participant's immediate family, or to a trust
established by the participant for the exclusive benefit of the participant or
one or more members of his immediate family.

      (e) No Common Shares, Other Company Securities or property, other
securities or property, or other forms of payment shall be issued hereunder
with respect to any Award unless counsel for the Company shall be satisfied
that such issuance will be in compliance with applicable federal, state, local
and foreign legal, securities exchange and other applicable requirements.

                                      -15-
<PAGE>
      (f) The Company and its Affiliates shall have the right to deduct from
any payment made under the Plan the federal, state, local or foreign income or
other taxes required by law to be withheld with respect to such payment. In
accordance with rules and procedures established by the Committee, the
required withholding obligations may be settled with Common Shares, including
Common Shares that are part of the Award that gives rise to the withholding
requirement (up to the participant's minimum required tax withholding rate or
such other rate that will not trigger a negative accounting impact). It shall
be a condition to the obligation of the Company to issue Common Shares, Other
Company Securities or property, other securities or property, or other forms
of payment, or any combination thereof, upon exercise, settlement or payment
of any Award under the Plan, that the participant (or any beneficiary or
person entitled to act) pay to the Company, upon its demand, such amount as
may be requested by the Company for the purpose of satisfying any liability to
withhold federal, state, local or foreign income or other taxes. If the amount
requested is not paid, the Company may refuse to issue Common Shares, Other
Company Securities or property, other securities or property, or other forms
of payment, or any combination thereof. Notwithstanding anything in the Plan
to the contrary, the Committee may, in its discretion, permit an eligible
participant (or any beneficiary or person entitled to act) to elect to pay a
portion or all of the amount requested by the Company for such taxes with
respect to such Award, at such time and in such manner as the Committee shall
deem to be appropriate (including, but not limited to, by authorizing the
Company to withhold, or agreeing to surrender to the Company on or about the
date such tax liability is determinable, Common Shares, Other Company
Securities or property, other securities or property, or other forms of
payment, that would otherwise be distributed, or have been distributed, as the
case may be, pursuant to such Award to such person, having a fair market value
equal to the amount of such taxes).

      (g) The Plan shall be unfunded. The Company shall not be required to
establish any special or separate fund or to make any other segregation of
assets to assure the payment of any Award under the Plan, and the rights to
the payment of Awards shall be no greater than the rights of the Company's
general creditors.

      (h) By accepting any Award or other benefit under the Plan, each
participant and each person claiming under or through him shall be
conclusively deemed to have indicated his acceptance and ratification of, and
consent to, any action taken under the Plan by the Company, the Board or the
Committee or its delegates.

      (i) Although the Company may structure an Award to qualify for favorable
federal, state, local or foreign tax treatment, or to avoid adverse tax
treatment, no person connected with the Plan in any capacity, including, but
not limited to, the Company and its directors, officers, agents and employees,
makes any representation, commitment or guarantee that any intended tax
treatment will be applicable with respect to any Award under the Plan, or that
such tax treatment will apply to or be available to a participant or his or
her beneficiary. Furthermore, the existence of an Award shall not affect the
right or power of the Company or its shareholders to take any corporate
action, regardless of the potential effect of such action on the tax treatment
of an Award under the Plan.

                                      -16-
<PAGE>
      (j) Unless the context indicates otherwise, references to "Paragraphs"
in the Plan refer to Paragraphs of the Plan.

      (k) In the Plan, the use of the masculine pronoun shall include the
feminine and the use of the singular shall include the plural, as appropriate.

      (l) Headings of Paragraphs herein are inserted only for convenience of
reference and are not to be considered in the construction of the Plan.

      (m) If any provision of the Plan shall be held unlawful or otherwise
invalid or unenforceable in whole or in part by a court of competent
jurisdiction, such provision shall (i) be deemed limited to the extent that
such court of competent jurisdiction deems it lawful, valid or enforceable and
as so limited shall remain in full force and effect, and (ii) not affect any
other provision of the Plan or part thereof, each of which shall remain in
full force and effect.

      (n) The appropriate officers of the Company shall cause to be filed any
reports, returns or other information regarding Awards hereunder or any Common
Shares issued pursuant hereto as may be required by Section 13 or 15(d) of the
Exchange Act, or any successor provision, or any other applicable statute,
rule or regulation.

      (o) The validity, construction, interpretation, administration and
effect of the Plan, and of its rules and regulations, and rights relating to
the Plan and to Awards granted under the Plan, shall be governed by the
substantive laws, but not the choice of law rules, of the State of New York.

      (p) The Plan is intended to comply and shall be administered in a manner
that is intended to comply with Section 409A of the Code (and Treasury
guidance and regulations issued thereunder) and shall be construed and
interpreted in accordance with such intent. To the extent that an Award or the
payment, settlement or deferral thereof is subject to Section 409A of the
Code, the Award shall be granted, paid, settled or deferred in a manner that
will comply with Section 409A of the Code, including regulations or other
guidance issued with respect thereto, except as otherwise determined by the
Committee. Unless the Committee determines otherwise, any provision of the
Plan that would cause the grant of an Award or the payment, settlement or
deferral thereof to fail to satisfy Section 409A of the Code shall be amended
to comply with Section 409A of the Code on a timely basis, which may be made
on a retroactive basis, in accordance with regulations and other guidance
issued under Section 409A of the Code.

      18. PLAN TERMINATION. The Plan may be suspended in whole or in part at
any time and from time to time by the Board. This Plan shall terminate upon
the earlier of the following dates or events to occur: (a) upon the adoption
of a resolution of the Board terminating the Plan; or (b) ten years from the
date the Plan is initially approved and adopted by the shareholders of the
Company in accordance with Paragraph 19. No termination of the Plan shall
materially alter or impair any of the rights or obligations of any person,
without his consent, under any Award theretofore granted under the Plan,
except that subsequent to termination of the Plan, the Committee may make
amendments permitted under Paragraph 11.

                                      -17-
<PAGE>
      19. SHAREHOLDER ADOPTION. The Plan shall be submitted to the shareholders
of the Company for their approval and adoption at a meeting to be held on or
about April 23, 2007, or at any adjournment thereof. The Plan shall not be
effective and no Award shall be made hereunder unless and until the Plan has
been so approved and adopted. The shareholders shall be deemed to have
approved and adopted the Plan only if it is approved and adopted at a meeting
of the shareholders duly held by vote taken in the manner required by the laws
of the State of New York.

                                      -18-EXHIBIT 10.2
                           AMERICAN EXPRESS COMPANY
                       2007 INCENTIVE COMPENSATION PLAN

                               MASTER AGREEMENT

                             DATED APRIL 23, 2007
                 ---------------------------------------------

         Nonqualified Stock Options, Restricted Stock Awards and Restricted
Stock Unit Awards ("Awards") are issued pursuant to the 2007 Incentive
Compensation Plan (the "Plan") of American Express Company (the "Company") at
the discretion and subject to the administration of the Compensation and
Benefits Committee, or its successor (the "Committee") of the Board of
Directors of the Company (the "Board"). Awards issued on or after April 23,
2007 shall contain the general terms set forth in the applicable provisions of
this Master Agreement. The specific terms of individual Awards will be
contained in the Award Schedule(s) delivered to participants in the Plan (the
"Participants"). All Awards shall be subject to the Plan and any
administrative guidelines or interpretations by the Committee under the Plan,
the Plan and any such guidelines or interpretations being incorporated into
this Master Agreement by reference and made a part hereof. As used herein, the
term "shares" refers to the common shares of the Company having a par value of
$.20 per share, or the shares of any other stock of any other class into which
such shares may thereafter be changed.

SECTION I

                    MASTER AGREEMENT PROVISIONS RELATING TO
                     A GRANT OF NONQUALIFIED STOCK OPTION

         1. Sections I, IV and V of this Master Agreement, together with an
Award Schedule referring to Section I of this Master Agreement, shall contain
the terms of a specific Nonqualified Stock Option ("Option") issued to a
Participant. Each Award Schedule shall specify the number of shares subject to
the Option, the Option Date of Grant, the Option Exercise Date(s), the Option
Exercise Price and any additional terms applicable to the Option. Such
additional terms may address any matter deemed appropriate by the Committee or
its delegate and may include terms not contained in this Master Agreement
and/or may delete terms contained in this Master Agreement. A stock
appreciation right is included herein only if specifically approved by the
Committee and reflected in an Award Schedule.

         2. Unless otherwise determined by the Committee and subject to the
provisions of this Master Agreement and the applicable provisions of the Plan,
a Participant may exercise this Option as follows:

                  (a) No part of this Option may be exercised before the first
         Option Exercise Date listed in the Award Schedule or after the
         expiration of ten years from the Date of Grant set forth in the Award
         Schedule;

                                      -1-
<PAGE>
                  (b) At any time or times on or after the first Option
         Exercise Date listed in the Award Schedule, a Participant may
         exercise this Option as to any number of shares which, when added to
         the number of shares as to which a Participant has theretofore
         exercised this Option, if any, will not exceed 25% of the total
         number of shares covered hereby;

                  (c) At any time or times on or after the second Option
         Exercise Date listed in the Award Schedule, a Participant may
         exercise this Option as to any number of shares which, when added to
         the number of shares as to which a Participant has theretofore
         exercised this Option, if any, will not exceed 50% of the total
         number of shares covered hereby;

                  (d) At any time or times on or after the third Option
         Exercise Date listed in the Award Schedule, a Participant may
         exercise this Option as to any number of shares which, when added to
         the number of shares as to which a Participant has theretofore
         exercised this Option, if any, will not exceed 75% of the total
         number of shares covered hereby; and

                  (e) At any time or times on or after the fourth Option
         Exercise Date listed in the Award Schedule and thereafter through the
         expiration date of this Option, a Participant may exercise this
         Option as to any number of shares which, when added to the number of
         shares as to which the Participant has theretofore exercised this
         Option, if any, will not exceed the total number of shares covered
         hereby.

This Option may not be exercised for a fraction of a share.

         3. A Participant may not exercise this Option and, if applicable, any
stock appreciation right included herein, unless all of the following
conditions are met:

                  (a) Legal counsel for the Company must be satisfied at the
         time of exercise that the issuance of shares upon exercise will be in
         compliance with the Securities Act of 1933, as amended, and
         applicable United States federal, state, local and foreign laws;

                  (b) The Participant must pay at the time of exercise the
         full purchase price for the shares being acquired hereunder, by (i)
         paying in cash in United States dollars (which may be in the form of
         a check), (ii) tendering shares owned by the Participant which have a
         fair market value equal to the full purchase price for the shares
         being acquired, such fair market value to be determined in such
         reasonable manner as may be provided from time to time by the
         Committee or as may be required in order to comply with the
         requirements of any applicable laws or regulations, (iii) if
         permitted by the Committee, by authorizing a third party to sell, on
         behalf of the Participant, the appropriate number of shares otherwise
         issuable to the Participant upon the exercise of this Option and to
         remit to the Company a sufficient portion of the sale proceeds to pay
         the entire exercise price and any tax withholding resulting from such
         exercise, or (iv) tendering a combination of the forms of payment
         provided for in this Paragraph 3(b); and

                                       -2-
<PAGE>
                  (c) The Participant must, at all times during the period
         beginning with the Date of Grant of this Option and ending on the
         date of such exercise, have been employed by the Company or an
         Affiliate (as defined in the Plan) or have been engaged in a period
         of Related Employment (as defined in the Plan). However, if the
         Participant ceases to be so employed or terminates a period of
         Related Employment by reason of the Participant's disability or
         Retirement (as such terms are defined in the Plan and interpreted and
         administered by the Committee) while holding this Option which has
         not expired and has not been fully exercised, the Participant may, at
         any time within five years of the date of the onset of such
         disability (but in no event after the expiration of this Option under
         Paragraph 2(a) above with respect to ten years from the Date of
         Grant) or in the case of Retirement until the expiration of the
         Option under Paragraph 2(a) above, exercise this Option with respect
         to the number of shares, after giving full effect to the gradual
         vesting provisions of Paragraph 2 above, as to which the Participant
         could have exercised this Option on the date of the onset of such
         disability or Retirement, or with respect to such greater number of
         shares as determined by the Committee in its sole discretion, and any
         remaining portion of this Option shall be canceled by the Company. In
         the event the Participant's employment by the Company and its
         Affiliates or Related Employment terminates for reasons other than
         disability or Retirement as described in this Paragraph 3(c) or death
         as described in Paragraph 4 below, this Option shall be canceled by
         the Company; provided, however, if within two years following a
         Change in Control (as defined in Section IV of this Master
         Agreement), a Participant is terminated under circumstances that
         would entitle the Participant to severance under an applicable U.S.
         severance plan (other than Constructive Termination, as defined in
         the applicable plan), the Participant may, at any time within 90 days
         following such termination (but in no event after the expiration of
         this Option under Paragraph 2(a) above with respect to ten years from
         the Date of Grant), exercise this Option with respect to the number
         of shares as to which the Participant could have exercised this
         Option on the date of such termination. For any other Participant not
         covered by a U.S. severance plan, the 90-day extension period shall
         apply if the Participant is terminated within two years following a
         Change in Control and the Participant would have been entitled to
         severance under the applicable U.S. severance plan had the
         Participant been a U.S. employee.

         4. Except as otherwise determined by the Committee, a Participant may
not assign, transfer, pledge, hypothecate or otherwise dispose of this Option
(and any stock appreciation right included herein), except by will or the laws
of descent and distribution, and this Option is exercisable during the
Participant's lifetime only by the Participant. If the Participant or anyone
claiming under or through the Participant attempts to violate this Paragraph
4, such attempted violation shall be null and void and without effect, and the
Company's obligation to make any further payments (stock or cash) hereunder
shall terminate. If at the time of the Participant's death this Option has not
been fully exercised, the Participant's estate or any person who acquires the
right to exercise this Option by bequest or inheritance or by reason of the

                                      -3-
<PAGE>
Participant's death may, at any time within five years after the date of the
Participant's death (but in no event after the expiration of this Option under
Paragraph 2 (a) above with respect to ten years from the Date of Grant or the
time period described in Paragraph 3(c) above with respect to disability),
exercise this Option with respect to the number of shares, after giving full
effect to the gradual vesting provisions of Paragraph 2 above, as to which the
Participant could have exercised this Option at the time of the Participant's
death, or with respect to such greater number of shares as determined by the
Committee in its sole discretion. The Committee may, in its discretion,
provide the Participant's estate, or any person acquiring the right to
exercise this Option upon the Participant's death, a minimum of six months to
exercise this Option without regard to the expiration of this Option under
Paragraph 2(a) above. The applicable requirements of Paragraph 3 above must be
satisfied at the time of such exercise.

         5. In the event that the Company or any of its Affiliates is a
participant in a corporate merger, consolidation or other similar transaction,
neither the Company nor such Affiliate shall be obligated to cause any other
participant in such transaction to assume this Option or to substitute a new
option for this Option.

         6. (a) If approved by the Committee and subject to the conditions
specified in Paragraph 6(b) below, within such time or times as this Option
shall be exercisable in whole or in part and to the extent that it shall then
be exercisable in accordance with Paragraph 2 above, the Participant (or any
person acting under Paragraph 4 above) may surrender unexercised this Option
or any portion thereof which is then exercisable to the Company and receive
from the Company in exchange therefor that number of shares having an
aggregate value equal to 100% of the excess of the value of one share over the
Option Exercise Price per share heretofore specified times the lesser of (i)
the number of shares as to which this Option then is exercisable or (ii) the
number of shares as to which this Option is surrendered to the Company. This
right to surrender unexercised this Option or any portion thereof which is
then exercisable is referred to herein as a "stock appreciation right." No
fractional shares shall be delivered, but in lieu thereof a cash adjustment
shall be made.

            (b) If granted by the Committee, the stock appreciation right may
be exercised only if, and to the extent that,

                           (i) this Option is at the time exercisable, and

                           (ii) on the date of exercise (1) this Option will,
                  in accordance with Paragraph 2(a) above, expire within 30
                  days, or (2) the Participant has ceased to be an employee of
                  the Company or an Affiliate thereof or terminated a period
                  of Related Employment by reason of the Participant's
                  disability or Retirement (as defined in the Plan), or (3)
                  the Participant has died.

                                      -4-
<PAGE>
         Notwithstanding Paragraph 6(b)(ii) above, but subject to the
         conditions of Paragraph 6(b)(i) above, (1) the ability to exercise a
         stock appreciation right may be further limited to the extent
         determined by the Committee as necessary or desirable to comply with
         applicable provisions of United States federal, state, local or
         foreign law or regulation, and (2) if the Participant is on the date
         of exercise an executive officer of the Company as that term is
         defined in the Securities Exchange Act of 1934, as amended, and the
         rules thereunder (an "Insider"), the stock appreciation right may be
         exercised only with respect to a maximum of 50% of the shares subject
         to this Option granted hereunder, unless otherwise determined by the
         Committee.

                  (c) The Committee may elect from time to time in its sole
         discretion to settle the obligation arising out of the exercise of
         the stock appreciation right, by the payment of cash equal to the
         aggregate value of the shares it otherwise would be obligated to
         deliver or partly by the payment of cash and partly by the delivery
         of shares.

                  (d) For all purposes under this Paragraph 6, the value of a
         share shall be the fair market value thereof, as determined by the
         Committee, on the last business day preceding the date of the
         election to exercise the stock appreciation right, provided that if
         notice of such election is received by the Committee more than three
         business days after the date of such election (as such date of
         election is stated in the notice of election), the Committee may, but
         need not, determine the value of a share as of the day preceding the
         date on which the notice of election is received.

         7. It shall be a condition to the obligation of the Company to
furnish shares upon exercise of this Option or settlement of a stock
appreciation right by delivery of shares and/or cash (a) that the Participant
(or any person acting under Paragraph 4 above) pay to the Company or its
designee, upon its demand, in accordance with Paragraph 17(f) of the Plan,
such amount as may be demanded for the purpose of satisfying its obligation or
the obligation of any of its Affiliates or other person to withhold United
States federal, state, local or foreign income, employment or other taxes
incurred by reason of the exercise of this Option or the settlement of the
stock appreciation right or the transfer of shares thereupon, (b) whether the
settlement of the stock appreciation right is to be made by delivery of shares
or by the payment of cash, that the Participant (or any person acting under
Paragraph 4 above) execute such forms as the Committee shall prescribe for the
purpose of evidencing the surrender of this Option in whole or in part, as the
case may be, and (c) that the Participant (or any person acting under
Paragraph 4 above) provide the Company with any forms, documents or other
information reasonably required by the Company in connection with the grant.
The Company shall have the right to deduct or cause to be deducted from any
payment made in settlement of a stock appreciation right any United States
federal, state, local or foreign income, employment or other taxes that it
determines are required by law to be withheld with respect to such payment. If
the amount requested for the purpose of satisfying the withholding obligation
is not paid, the Company may refuse to furnish shares upon exercise of this
Option or shares and/or cash upon settlement of the stock appreciation right.

                                      -5-
<PAGE>
SECTION II

                    MASTER AGREEMENT PROVISIONS RELATING TO
                          AWARDS OF RESTRICTED STOCK

         1. Sections II, IV and V of this Master Agreement, together with an
Award Schedule referring to Section II of this Master Agreement, shall contain
the terms of a specific Restricted Stock Award ("RSA") issued to a
Participant. Each Award Schedule shall specify the number of shares awarded,
the Award Date, the Expiration Date and any additional terms applicable to the
Award. Such additional terms may address any matter deemed appropriate by the
Committee or its delegate and may include terms not contained in this Master
Agreement and/or may delete terms contained in this Master Agreement.

         2. An RSA consists of the number of shares specified in an Award
Schedule and is subject to the provisions of the Plan. In addition, the
following terms, conditions and restrictions apply to RSAs issued under the
Plan:

                  (a) Except as otherwise determined by the Committee, such
         shares cannot be sold, assigned, transferred, pledged, hypothecated
         or otherwise disposed of (except that Participants may designate a
         beneficiary as provided herein) on or before the Expiration Date and
         prior to the subsequent issuance to a Participant (or, in the event
         of a Participant's death, the Participant's designated beneficiary)
         of a certificate or an uncertificated book entry position for such
         shares free of any legend or other transfer restriction relating to
         the terms, conditions and restrictions provided for in the Award
         Schedule or this Master Agreement. If a Participant or anyone
         claiming under or through such Participant attempts to violate this
         Paragraph 2(a), such attempted violation shall be null and void and
         without effect, and the Company's obligation to make any further
         payments or deliveries (in stock or cash) hereunder shall terminate.

                  (b) An RSA shall be evidenced by a share certificate or an
         uncertificated book entry position maintained by the Company's
         transfer agent and registrar.

                  (c) If (i) a Participant's continuous employment with the
         Company and its Affiliates (as defined in the Plan) shall terminate
         for any reason on or before the Expiration Date, except for a period
         of Related Employment (as defined in the Plan), and except as
         provided in Paragraph 2(d) below or (ii) within the period following
         the Expiration Date as determined by the Committee, a Participant (or
         such Participant's designated beneficiary) has not paid to the
         Company or such Affiliate or other person an amount equal to any
         United States federal, state, local or foreign income, employment or
         other taxes which the Company determines is required to be withheld
         in respect of such shares, or fails to provide such information as is
         described in Paragraph 4 below, then, unless the Committee determines
         otherwise, the Participant's RSA or portion thereof shall be
         automatically terminated, cancelled, and rendered null and void as of
         the Expiration Date without any action on the part of the Company,
         and the Company shall be deemed to have exercised its repurchase
         option without the requirement of any payment, and shall be entitled
         to the return from such Participant (or the Participant's designated
         beneficiary or the Secretary of the Company) of any share
         certificate(s) issued in respect of the Award or the cancellation of
         any book entry memo position maintained by the Company's transfer
         agent and registrar with respect to a Participant's RSA.

                                      -6-
<PAGE>
                  (d) On or before the Expiration Date, the Committee shall
         have the authority, in its sole discretion, to determine whether and
         to what extent, the termination provisions of Paragraph 2(c) shall
         cease to be effective with respect to a Participant's Award in the
         following situations:

                           (i) a Participant shall die or have a termination
                  of employment or Related Employment by reason of disability
                  or Retirement (as such terms are defined in the Plan and
                  interpreted and administered by the Committee); or

                           (ii) in such circumstances as the Committee, in its
                  sole discretion, shall deem appropriate if, since the Award
                  Date, a Participant has been in the continuous employment of
                  the Company or an Affiliate or has undertaken Related
                  Employment.

                  (e) The share certificate, if any, issued in respect of a
         RSA shall be held in escrow by the Secretary of the Company during
         the period up to and including the date determined by the Committee
         pursuant to Paragraph 2(c) above, unless otherwise determined by the
         Committee.

         3. In the event of any change in the outstanding shares of the
Company by reason of any stock split, stock dividend, split-up, split-off,
spin-off, recapitalization, merger, consolidation, rights offering,
reorganization, combination, subdivision or exchange of shares, sale by the
Company of all or part of its assets, distribution to shareholders other than
a normal cash dividend, or other extraordinary or unusual event, or in the
event a Participant (or the Participant's designated beneficiary) receives any
shares, securities or other property in respect of the shares which have been
awarded to a Participant (including, but not limited to, by way of a dividend
or other distribution on such shares), any such shares, securities or other
property received by a Participant (or a Participant's designated beneficiary)
in respect of the shares awarded to such Participant shall, other than upon a
Change In Control as defined in Section IV of this Master Agreement, be
subject to the Company's right to receive or cancel such shares, securities or
other property from such Participant (or such Participant's designated
beneficiary) as provided in Paragraph 2(c) above and the other terms,
conditions and restrictions specified herein to the extent that, and in such
manner as, the Committee shall determine. Any such determination by the
Committee under this Paragraph 3 shall be final, binding and conclusive.

         4. If the Company, in its sole discretion, shall determine that the
Company or an Affiliate or other person has incurred or will incur any
obligation to withhold any United States federal, state, local or foreign
income, employment or other taxes by reason of making of the Award to a
Participant, the transfer of shares to a Participant (or the Participant's
designated beneficiary) pursuant thereto or the lapse or release of the
termination provisions contained in Paragraph 2(c) above with respect to a
Participant's Award or any other restrictions upon such shares, such
Participant (or such Participant's designated beneficiary) will, promptly upon
demand therefor by the Company, pay to the Company or such Affiliate or other
person any amount demanded by it for the purpose of satisfying such liability.
If the amount so demanded is not promptly paid or if such Participant (or such
Participant's designated beneficiary) shall fail to promptly provide the
Company with any and all forms, documents or other information reasonably
required by the Company in connection with the Award, the Company or its
designee may refuse to permit the transfer of such shares and may, without
further consent by or notice to such Participant (or such Participant's
designated beneficiary), cancel the Award and the shares otherwise issuable
under the Award.

                                      -7-
<PAGE>
SECTION III

                    MASTER AGREEMENT PROVISIONS RELATING TO
                       AWARDS OF A RESTRICTED STOCK UNIT

         1. Sections III, IV and V of this Master Agreement, together with an
Award Schedule referring to Section III of this Master Agreement, shall
contain the terms of a specific Restricted Stock Unit ("RSU") issued to a
Participant. Each Award Schedule shall specify the number of shares to be
awarded, the RSU Date, the Expiration Date and any additional terms applicable
to the Award. Such additional terms may address any matter deemed appropriate
by the Committee or its delegate and may include terms not contained in this
Master Agreement and/or may delete terms contained in this Master Agreement.

         2. Subject to the provisions of the Plan and the following terms,
conditions and restrictions herein set forth, the Company will issue to a
Participant a certificate for the number of shares specified in an Award
Schedule as promptly as practicable after the last day of a period of four
years from the RSU Date (the "Restricted Period"):

                  (a) Except as otherwise determined by the Committee, rights
         under this RSU may not be sold, assigned, transferred, pledged,
         hypothecated or otherwise disposed of, except by will or the laws of
         descent and distribution, on or before the last day of the Restricted
         Period and prior to the subsequent issuance to a Participant (or, in
         the event of a Participant's death, the Participant's designated
         beneficiary) of a certificate for such shares free of any legend or
         other transfer restriction relating to the terms, conditions and
         restrictions provided for in this Master Agreement. If a Participant
         or anyone claiming under or through a Participant attempts to violate
         this Paragraph 2(a), such attempted violation shall be null and void
         and without effect, and the Company's obligations hereunder shall
         terminate.

                  (b) If (i) a Participant's continuous employment with the
         Company and its Affiliates (as defined in the Plan) shall terminate
         for any reason on or before the last day of the Restricted Period,
         except for a period of Related Employment (as defined in the Plan),
         and except as provided in Paragraph 2(c) below, or (ii) within the
         period following the last day of the Restricted Period as determined
         by the Committee, a Participant (or such Participant's designated
         beneficiary) has not paid to the Company or such Affiliate or other
         person an amount equal to any United States federal, state, local or
         foreign income, employment or other taxes which the Company
         determines is required to be withheld in respect of such shares, or
         fails to provide such information as is described in Paragraph 4
         below, then, unless the Committee determines otherwise, this RSU or
         portion thereof shall be automatically terminated, cancelled, and
         rendered null and void as of the last day of the Restricted Period
         without any action on the part of the Company.

                                      -8-
<PAGE>
                  (c) If a Participant shall, on or before the last day of the
         Restricted Period, die or have a termination of employment or Related
         Employment by reason of disability or Retirement (as such terms are
         defined in the Plan and interpreted and administered by the
         Committee), or by reason of such other circumstances as the
         Committee, in its sole discretion, shall deem appropriate, after a
         Participant have been, since the RSU Date, in the continuous
         employment of the Company or an Affiliate or have undertaken Related
         Employment, the Committee, in its sole discretion, shall determine
         whether and to what extent, if any, the Company's right as specified
         in Paragraph 2(b) above (and in any and all other terms, conditions
         and restrictions imposed hereby) shall lapse and cease to be
         effective. The Company's right specified in Paragraph 2(b) above
         shall be exercisable at such time as to the remaining shares, if any.

                  (d) From time to time during the Restricted Period, the
         Company shall pay to a Participant an amount of cash equal to the
         regular quarterly cash dividend paid by the Company on a number of
         shares equal to the number of shares remaining to be issued to a
         Participant hereunder less any applicable United States federal,
         state, local or foreign income, employment or other taxes that the
         Company determines are required to be withheld therefrom. The
         Company's obligation to make such payment shall cease with respect to
         any shares at such time as the Company's right becomes exercisable
         with respect thereto pursuant to Paragraph 2(b) or 2(c) above.

         3. If the Company, in its sole discretion, shall determine that the
Company or an Affiliate or other person has incurred or will incur any
obligation to withhold any United States federal, state, local or foreign
income, employment or other taxes by reason of the issuance or operation of
this RSU, a Participant (or, in the event of a Participant's death, the legal
representatives of a Participant's estate) will, promptly upon demand therefor
by the Company, pay to the Company or such Affiliate or other person, in
accordance with Paragraph 17(f) of the Plan, any amount demanded by it for the
purpose of satisfying such obligation. If the amount so demanded is not
promptly paid or if a Participant (or, in the event of a Participant's death,
the legal representatives of a Participant's estate) shall fail to promptly
provide the Company with any and all forms, documents or other information
reasonably required by the Company in connection with this RSU, the Company or
its designee may refuse to permit the transfer of any shares and the
distribution of any proceeds and may, without further consent by or notice to
a Participant (or, in the event of a Participant's death, the legal
representatives of a Participant's estate) cancel its agreement to issue to a
Participant any shares and cancel any shares otherwise issuable hereunder.

SECTION IV

                MASTER AGREEMENT COMMON PROVISIONS RELATING TO
                          MORE THAN ONE FORM OF AWARD

         1. Notwithstanding anything in this Master Agreement to the contrary
(but subject to those provisions in Paragraph 3 or 4 below which could reduce
payments hereunder as a result of Section 280G of the Internal Revenue Code of
1986, as amended (the "Code")), upon a Change in Control (as applicable to a
particular award), the award holder shall immediately be:

                  (a) with respect to any Option issued pursuant to the Option
         provisions of this Master Agreement, 100% vested in the total number
         of shares covered thereby such that they shall be fully exercisable;

                                      -9-
<PAGE>
                  (b) with respect to any RSA issued pursuant to the RSA
         provisions of this Master Agreement, 100% vested in the total number
         of shares covered thereby such that they shall no longer be subject
         to any transfer restrictions imposed by this Master Agreement; and

                  (c) with respect to any RSU issued pursuant to the RSU
         provisions of this Master Agreement, entitled to receive the total
         number of shares covered thereby such that they shall no longer be
         subject to any restrictions on issuance imposed by this Master
         Agreement.

The Committee may not amend or delete this Section IV of this Master Agreement
in a manner that is detrimental to the award holder, without his written
consent.

         2. A "Change in Control" means the happening of any of the following:

                  (a) Any individual, entity or group (within the meaning of
         Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
         as amended (the "Exchange Act")) (a "Person") becomes the beneficial
         owner (within the meaning of Rule 13d-3 promulgated under the
         Exchange Act) of 25% or more of either (i) the then outstanding
         common shares of the Company (the "Outstanding Company Common
         Shares") or (ii) the combined voting power of the then outstanding
         voting securities of the Company entitled to vote generally in the
         election of directors (the "Outstanding Company Voting Securities");
         provided, however, that such beneficial ownership shall not
         constitute a Change in Control if it occurs as a result of any of the
         following acquisitions of securities: (A) any acquisition directly
         from the Company; (B) any acquisition by the Company or any
         corporation, partnership, trust or other entity controlled by the
         Company (a "Subsidiary"); (C) any acquisition by any employee benefit
         plan (or related trust) sponsored or maintained by the Company or any
         Subsidiary; (D) any acquisition by an underwriter temporarily holding
         Company securities pursuant to an offering of such securities; (E)
         any acquisition by an individual, entity or group that is permitted
         to, and actually does, report its beneficial ownership on Schedule
         13-G (or any successor schedule), provided that, if any such
         individual, entity or group subsequently becomes required to or does
         report its beneficial ownership on Schedule 13D (or any successor
         schedule), then, for purposes of this subsection, such individual,
         entity or group shall be deemed to have first acquired, on the first
         date on which such individual, entity or group becomes required to or
         does so report, beneficial ownership of all of the Outstanding
         Company Common Stock and Outstanding Company Voting Securities
         beneficially owned by it on such date; or (F) any acquisition by any
         corporation pursuant to a reorganization, merger or consolidation if,
         following such reorganization, merger or consolidation, the
         conditions described in clauses (i), (ii) and (iii) of Paragraph 2(c)
         are satisfied. Notwithstanding the foregoing, a Change in Control
         shall not be deemed to occur solely because any Person (the "Subject
         Person") became the beneficial owner of 25% or more of the
         Outstanding Company Common Shares or Outstanding Company Voting
         Securities as a result of the acquisition of Outstanding Company
         Common Shares or Outstanding Company Voting Securities by the Company
         which, by reducing the number of Outstanding Company Common Shares or
         Outstanding Company Voting Securities, increases the proportional
         number of shares beneficially owned by the Subject Person; provided,
         that if a Change in Control would be deemed to have occurred (but for
         the operation of this sentence) as a result of the acquisition of
         Outstanding Company Common Shares or Outstanding Company Voting
         Securities by the Company, and after such share acquisition by the
         Company, the Subject Person becomes the beneficial owner of any
         additional Outstanding Company Common Shares or Outstanding Company
         Voting Securities which increases the percentage of the Outstanding
         Company Common Shares or Outstanding Company Voting Securities
         beneficially owned by the Subject Person, then a Change in Control
         shall then be deemed to have occurred; or

                                      -10-
<PAGE>
                  (b) Individuals who, as of the date hereof, constitute the
         Board (the "Incumbent Board") cease for any reason to constitute at
         least a majority of the Board; provided, however, that any individual
         becoming a director subsequent to the date hereof whose election, or
         nomination for election by the Company's shareholders, was approved
         by a vote of at least a majority of the directors then comprising the
         Incumbent Board shall be considered as though such individual were a
         member of the Incumbent Board, but excluding, for this purpose, any
         such individual whose initial assumption of office occurs as a result
         of either an actual or threatened election contest or other actual or
         threatened solicitation of proxies or consents by or on behalf of a
         Person other than the Board, including by reason of agreement
         intended to avoid or settle any such actual or threatened contest or
         solicitation; or

                  (c) The consummation of a reorganization, merger, statutory
         share exchange, consolidation, or similar corporate transaction
         involving the Company or any of its direct or indirect Subsidiaries
         (each a "Business Combination"), in each case, unless, following such
         Business Combination, (i) the Outstanding Company Common Shares and
         the Outstanding Company Voting Securities immediately prior to such
         Business Combination, continue to represent (either by remaining
         outstanding or being converted into voting securities of the
         resulting or surviving entity or any parent thereof) more than 50% of
         the then-outstanding shares of common stock and the combined voting
         power of the then-outstanding voting securities entitled to vote
         generally in the election of directors, as the case may be, of the
         corporation resulting from Business Combination (including, without
         limitation, a corporation that, as a result of such transaction, owns
         the Company or all or substantially all of the Company's assets
         either directly or through one or more subsidiaries), (ii) no Person
         (excluding the Company, any employee benefit plan (or related trust)
         of the Company, a Subsidiary or such corporation resulting from such
         Business Combination or any parent or subsidiary thereof, and any
         Person beneficially owning, immediately prior to such Business
         Combination, directly or indirectly, 25% or more of the Outstanding
         Company Common Shares or Outstanding Company Voting Securities, as
         the case may be) beneficially owns, directly or indirectly, 25% or
         more of, respectively, the then outstanding shares of common stock of
         the corporation resulting from such Business Combination (or any
         parent thereof) or the combined voting power of the then outstanding
         voting securities of such corporation entitled to vote generally in
         the election of directors and (iii) at least a majority of the
         members of the board of directors of the corporation resulting from
         such Business Combination (or any parent thereof) were members of the
         Incumbent Board at the time of the execution of the initial agreement
         or action of the Board providing for such Business Combination; or

                  (d) The consummation of the sale, lease, exchange or other
         disposition of all or substantially all of the assets of the Company,
         unless such assets have been sold, leased, exchanged or disposed of
         to a corporation with respect to which following such sale, lease,
         exchange or other disposition (i) more than 50% of, respectively, the
         then outstanding shares of common stock of such corporation and the
         combined voting power of the then outstanding voting securities of
         such corporation (or any parent thereof) entitled to vote generally
         in the election of directors is then beneficially owned, directly or
         indirectly, by all or substantially all of the individuals and

                                      -11-
<PAGE>
         entities who were the beneficial owners, respectively, of the
         Outstanding Company Common Shares and Outstanding Company Voting
         Securities immediately prior to such sale, lease, exchange or other
         disposition in substantially the same proportions as their ownership
         immediately prior to such sale, lease, exchange or other disposition
         of such Outstanding Company Common Shares and Outstanding Company
         Voting Shares, as the case may be, (ii) no Person (excluding the
         Company and any employee benefit plan (or related trust)) of the
         Company or a Subsidiary or of such corporation or a subsidiary
         thereof and any Person beneficially owning, immediately prior to such
         sale, lease, exchange or other disposition, directly or indirectly,
         25% or more of the Outstanding Company Common Shares or Outstanding
         Company Voting Securities, as the case may be) beneficially owns,
         directly or indirectly, 25% or more of respectively, the then
         outstanding shares of common stock of such corporation (or any parent
         thereof) and the combined voting power of the then outstanding voting
         securities of such corporation (or any parent thereof) entitled to
         vote generally in the election of directors and (iii) at least a
         majority of the members of the board of directors of such corporation
         (or any parent thereof) were members of the Incumbent Board at the
         time of the execution of the initial agreement or action of the Board
         providing for such sale, lease, exchange or other disposition of
         assets of the Company; or

                  (e) Approval by the shareholders of the Company of a
         complete liquidation or dissolution of the Company.

         3. This Paragraph 3 shall apply in the event of a Change in Control.

                  (a) In the event that any payment or benefit received or to
         be received by a Participant hereunder in connection with a Change in
         Control or termination of such Participant's employment (such
         payments and benefits, excluding Gross-Up Payment (as hereinafter
         defined), being hereinafter referred to collectively as the
         "Payments"), will be subject to the excise tax referred to in Section
         4999 of the Code (the "Excise Tax"), then (i) in the case of a
         Participant who is classified in Band 70 (or its equivalent) or above
         immediately prior to such Change in Control (a "Tier 1 Employee"),
         the Company shall pay to such Tier 1 Employee, within five days after
         receipt by such Tier 1 Employee of the written statement referred to
         in paragraph (e) below, an additional amount (the "Gross Up Payment")
         such that the net amount retained by such Tier 1 Employee, after
         deduction of any Excise Tax on the Payments and any federal, state
         and local income and employment taxes and Excise Tax upon the
         Gross-Up Payment, shall be equal to the Payments and (ii) in the case
         of a Participant other than a Tier 1 Employee, the Payments shall be
         reduced to the extent necessary so that no portion of the Payments is
         subject to the Excise Tax but only if (A) the net amount of all Total
         Payments (as hereinafter defined), as so reduced (and after
         subtracting the net amount of federal, state and local income and
         employment taxes on such reduced Total Payments), is greater than or
         equal to (B) the net amount of such Total Payments without any such
         reduction (but after subtracting the net amount of federal, state and
         local income and employment taxes on such Total Payments and the
         amount of Excise Tax to which the Participant would be subject in
         respect of such unreduced Total Payments); provided, however, that
         the Participant may elect in writing to have other components of his
         or her Total Payments reduced prior to any reduction in the Payments
         hereunder.

                                      -13-
<PAGE>
                  (b) For purposes of determining whether the Payments will be
         subject to the Excise Tax, the amount of such Excise Tax and whether
         any Payments are to be reduced hereunder: (i) all payments and
         benefits received or to be received by the Participant in connection
         with such Change in Control or the termination of such Participant's
         employment, whether pursuant to the terms of this Master Agreement or
         any other plan, arrangement or agreement with the Company, any Person
         (as such term is defined in Paragraph 2(a) above) whose actions
         result in such Change in Control or any Person affiliated with the
         Company or such Person (all such payments and benefits, excluding the
         Gross-Up Payment and any similar gross-up payment to which a Tier 1
         Employee may be entitled under any such other plan, arrangement or
         agreement, being hereinafter referred to as the "Total Payments"),
         shall be treated as "parachute payments" (within the meaning of
         Section 280G(b)(2) of the Code) unless, in the opinion of the Firm,
         such payments or benefits (in whole or in part) do not constitute
         parachute payments, including by reason of Section 280G(b)(2)(A) or
         Section 280G(b)(4)(A) of the Code; (ii) no portion of the Total
         Payments the receipt or enjoyment of which the Participant shall have
         waived at such time and in such manner as not to constitute a
         "payment" within the meaning of Section 280G(b) of the Code shall be
         taken into account; (iii) all "excess parachute payments" within the
         meaning of Section 280G(b)(l) of the Code shall be treated as subject
         to the Excise Tax unless, in the opinion of the Firm, such excess
         parachute payments (in whole or in part) represent reasonable
         compensation for services actually rendered (within the meaning of
         Section 280G(b)(4)(B) of the Code) in excess of the Base Amount
         (within the meaning of Section 280G(b)(3) of the Code) allocable to
         such reasonable compensation, or are otherwise not subject to the
         Excise Tax; and (iv) the value of any noncash benefits or any
         deferred payment or benefit shall be determined by the Firm in
         accordance with the principles of Sections 280G(d)(3) and (4) of the
         Code and regulations or other guidance thereunder. For purposes of
         determining the amount of the Gross Up Payment in respect of a Tier 1
         Employee and whether any Payments in respect of a Participant (other
         than a Tier 1 Employee) shall be reduced, a Participant shall be
         deemed to pay federal income tax at the highest marginal rate of
         federal income taxation (and state and local income taxes at the
         highest marginal rate of taxation in the state and locality of such
         Participant's residence, net of the maximum reduction in federal
         income taxes which could be obtained from deduction of such state and
         local taxes) in the calendar year in which the Gross Up Payment is to
         be made (in the case of a Tier 1 Employee) or in which the Payments
         are made (in the case of a Participant other than a Tier 1 Employee).
         The Firm will be paid reasonable compensation by the Company for its
         services.

                  (c) In the event that the Excise Tax is finally determined
         to be less than the amount taken into account hereunder in
         calculating the Gross-Up Payment, then an amount equal to the amount
         of the excess of the earlier payment over the redetermined amount
         (the "Excess Amount") will be deemed for all purposes to be a loan to
         the Tier 1 Employee made on the date of the Tier 1 Employee's receipt
         of such Excess Amount, which the Tier 1 Employee will have an
         obligation to repay to the Company on the fifth business day after
         demand, together with interest on such amount at the lowest
         applicable Federal rate (as defined in Section 1274(d) of the Code or

                                      -14-
<PAGE>
         any successor provision thereto), compounded semi-annually (the
         "Section 1274 Rate") from the date of the Tier 1 Employee's receipt
         of such Excess Amount until the date of such repayment (or such
         lesser rate (including zero) as may be designated by the Firm such
         that the Excess Amount and such interest will not be treated as a
         parachute payment as previously defined). In the event that the
         Excise Tax is finally determined to exceed the amount taken into
         account hereunder in calculating the Gross-Up Payment (including by
         reason of any payment the existence or amount of which cannot be
         determined at the time of the Gross Up Payment), within five business
         days of such determination, the Company will pay to the Tier 1
         Employee an additional amount, together with interest thereon from
         the date such additional amount should have been paid to the date of
         such payment, at the Section 1274 Rate (or such lesser rate
         (including zero) as may be designated by the Firm such that the
         amount of such deficiency and such interest will not be treated as a
         parachute payment as previously defined). The Tier 1 Employee and the
         Company shall each reasonably cooperate with the other in connection
         with any administrative or judicial proceedings concerning the amount
         of any Gross-Up Payment.

                  (d) As soon as practicable following a Change in Control,
         the Company shall provide to each Tier 1 Employee and to each other
         Participant with respect to whom it is proposed that Payments be
         reduced, a written statement setting forth the manner in which the
         Total Payments in respect of such Tier 1 Employee or other
         Participant were calculated and the basis for such calculations,
         including, without limitation, any opinions or other advice the
         Company has received from the Firm or other advisors or consultants
         (and any such opinions or advice which are in writing shall be
         attached to the statement).

         4. The terms of any Option, RSA or RSU (including terms under this
Master Agreement or any Award Schedule) may be amended from time to time by
the Committee in its sole discretion in any manner that it deems appropriate
(including, but not limited to, acceleration of the date of payments
thereunder); provided, however, that no such amendment shall adversely affect
in a material manner any right of a Participant under such Option, RSA or RSU
without the written consent of such Participant; provided, however, that the
Committee shall not have the authority to amend any Option held by any
executive officer of the Company as defined in Rule 3(b)(7) under the
Securities Exchange Act of 1934, as amended, so that the amount of
compensation an executive officer could receive is not based solely on an
increase in the value of shares, or to otherwise amend any Award issued to
such executive officer if the amendment would cause compensation payable
thereunder to be nondeductible under Section 162(m) of the Code (or any
successor provision) or regulations thereunder assuming such executive officer
is a covered employee for purposes of such Section.

                                      -15-
<PAGE>
         5. If and to the extent permitted by the Committee, and subject to
the provisions of the Plan, a Participant may, by completing the form provided
by the Corporate Secretary for such purpose and returning it to the Corporate
Secretary's Office in New York City, name a beneficiary or beneficiaries to
receive any payment or exercise any rights to which such Participant may
become entitled under an Award in the event of such Participant's death. To
the extent permitted by the Corporate Secretary, a Participant may change his
or her designated beneficiary or beneficiaries from time to time by submitting
a new form to the Corporate Secretary's Office in New York City, to the extent
permitted by law (for example, unless such Participant has made a prior
irrevocable designation). If a Participant does not designate a beneficiary,
or if no designated beneficiary is living on the date any amount becomes
payable under an Award, such payment will be made to the legal representatives
of such Participant's estate, which will be deemed to be the Participant's
designated beneficiary under the Award.

         6. If the Company, in its sole discretion, shall determine that the
listing upon any securities exchange or registration or qualification under
any United States federal, state, local or foreign law of any shares to be
delivered pursuant to an Award is necessary or desirable, delivery of such
shares shall not be made in shares until such listing, registration or
qualification shall have been completed. Until a certificate for some or all
of the shares subject to an RSU is issued to a Participant, a Participant
shall have no rights as a shareholder of the Company and, in particular, shall
not be entitled to vote such shares or to receive any dividend or other
distribution paid in respect thereof.

         7. Notwithstanding anything to the contrary contained herein, the
Committee, in its sole discretion, may approve and the Company may issue
Options, RSAs or RSUs that are not governed by the provisions contained in
this Master Agreement.

         8. Any action taken or decision made by the Company, the Board, or
the Committee or its delegates arising out of or in connection with the
construction, administration, interpretation or effect of any provision of the
Plan or this Master Agreement shall lie within its sole and absolute
discretion, as the case may be, and shall be final, conclusive and binding on
the Participant and all persons claiming under or through the Participant. By
receipt of such Awards or other benefit under the Plan, the Participant and
each person claiming under or through the Participant shall be conclusively
deemed to have indicated acceptance and ratification of, and consent to, any
action taken under the Plan or this Master Agreement, by the Company, the
Board or the Committee or its delegates.

         9. The validity, construction, interpretation, administration and
effect of the Plan and of its rules and regulations, and rights relating to
the Plan, and to any Award issued under this Master Agreement, shall be
governed by the substantive laws, but not the choice of law rules, of the
State of New York, in the United States of America.

                                      -16-
<PAGE>
         10. The Committee may rescind, without further notice to the
Participant, any Award issued to the Participant under the Plan in duplicate,
or in error, as determined in the sole discretion of the Committee.

SECTION V

                               MASTER AGREEMENT
                        DETRIMENTAL CONDUCT PROVISIONS

         1. APPLICABILITY. Unless the Committee expressly determines
otherwise, the provisions of this Section V of this Master Agreement shall
apply to all Awards issued under the Plan.

         2. DETRIMENTAL CONDUCT. If a current or former employee of, or other
individual that provides or has provided services for the Company (the
"Employee") engages in Detrimental Conduct, Awards previously issued to such
Employee may be canceled, rescinded or otherwise restricted and the Company
can recover any payments received by and stock delivered to the Employee in
accordance with the terms of Paragraph 3. For purposes of this Section V,
"Detrimental Conduct" shall mean the conduct described in Paragraphs 2(a)
through 2(g).

                  (a) NONCOMPETE. For a one-year period after the last day of
         active employment if the Employee is a Band 70 or above employee or
         for a six-month period after the last day of active employment if the
         Employee is a Band 50 or 60 employee, and during the Employee's
         employment with the Company, the Employee shall not be employed by,
         provide advice to or act as a consultant for any Competitor. The
         Company has defined Competitor for certain lines of business,
         departments or job functions by establishing a specific standard
         and/or by name as set forth in the Company's Competitor List(s). An
         Employee's personal list of competitors will be the sum of:

                           (1) either (i) all competitors derived from the
                  column titled Standard on the Competitor List for the lines
                  of business and departments (as listed on the Competitor
                  List under the Line of Business column) that the Employee
                  provided services to or managed during the two-year period
                  preceding the date the Employee's active employment with the
                  Company terminates, or (ii) if the job function the Employee
                  is employed in at the time his or her active employment with
                  the Company terminates is listed on the Competitor List
                  under the Line of Business column, the competitors cited for
                  that job function under the Standard column of the
                  Competitor List; and

                           (2) the Entities (as that term is defined in
                  Paragraph 8) listed on the Competitor List under the column
                  titled Business Unit Wide Competitors for the business
                  units, i.e. AEB or TRS, the Employee provided services to or
                  managed during the two-year period preceding the date his or
                  her active employment with the Company terminates. If any
                  line(s) of business the Employee provided services to or
                  managed during the two-year period preceding the date his or
                  her active employment with the Company terminates is not
                  listed on the Competitor List then, with respect to such
                  line(s) of business, the Employee shall not be employed by,
                  provide advice to or act as a consultant for (i) an Entity's
                  line of business that competes with those line(s) of

                                      -17-
<PAGE>
                  business and (ii) the Entities listed on the Competitor List
                  under the column titled Business Unit Wide Competitors for
                  the business units the Employee provided services to or
                  managed during the two-year period preceding the date the
                  Employee's active employment with the Company terminates.
                  Except for Business Unit Wide Competitors, the prohibition
                  against being employed by, providing advice to or acting as
                  a consultant for a Competitor is limited to the line(s) of
                  business of the Competitor that compete with the line(s) of
                  business of the Company that the Employee provided services
                  to or managed. With respect to Business Unit Wide
                  Competitors, the Employee agrees not to be employed by,
                  provide advice to or act as a consultant for such Entities
                  in any line of business because these Entities compete with
                  several of the Company's lines of business. The Company can
                  revise the Competitor List at its discretion at any time and
                  from time to time and as revised will become part of this
                  Section V; a copy of the current Competitor List will be
                  available through the Corporate Secretary's Office.
                  Notwithstanding anything in this Section V to the contrary,
                  the Company shall not make any addition to the Competitor
                  List for a period of two years following the date of a
                  Change in Control (as defined in Section IV of this Plan
                  Master Agreement, and as amended from time to time, or any
                  successor thereto).

                  (b) NONDENIGRATION. For a one-year period after an
         Employee's last day of active employment ("the Restricted Period")
         and during his or her employment with the Company, an Employee or
         anyone acting at his or her direction may not denigrate the Company
         or the Company's employees to the media or financial analysts. During
         the Restricted Period an Employee may not (i) provide information
         considered proprietary by the Company to the media or financial
         analysts or (ii) discuss the Company with the media or financial
         analysts, without the explicit written permission of the Executive
         Vice President of Corporate Affairs and Communications. This
         Paragraph shall not be applicable to any truthful statement required
         by any legal proceeding.

                  (c) NONSOLICITATION OF EMPLOYEES. During the Restricted
         Period, an Employee may not employ or solicit for employment any
         employee of the Company. In addition, during the Restricted Period an
         Employee may not advise or recommend to any other person that he or
         she employ or solicit for employment, any person employed by the
         Company for the purpose of employing that person at an Entity at
         which the Employee is or intends to be (i) employed, (ii) a member of
         the Board of Directors, or (iii) providing consulting services.

                  (d) NONSOLICITATION OF CUSTOMERS. During the Restricted
         Period, an Employee may not directly or indirectly solicit or enter
         into any arrangement with any Entity which is, at the time of such
         solicitation, a significant customer of the Company for the purpose
         of engaging in any business transactions of the nature performed or
         contemplated by the Company. This Paragraph shall apply only to
         customers whom the Employee personally serviced while employed by the
         Company or customers the Employee acquired material information about
         while employed by the Company.

                                      -18-
<PAGE>
                  (e) MISCONDUCT. During his or her employment with the
         Company, an Employee may not engage in any conduct that results in
         termination of his or her employment for Misconduct. For purposes of
         this Section V, "Misconduct" is (i) material violation of the
         American Express Company Code of Conduct, (ii) criminal activity,
         (iii) gross insubordination, or (iv) gross negligence in the
         performance of duties.

                  (f) CONFIDENTIAL INFORMATION. During the Restricted Period
         and during his or her employment with the Company, an Employee may
         not misappropriate or improperly disclose confidential information or
         trade secrets of the Company and its businesses, including but not
         limited to information about marketing or business plans, possible
         acquisitions or divestitures, potential new products or markets and
         other data not available to the public.

                  (g) OTHER DETRIMENTAL CONDUCT. During the Restricted Period,
         an Employee may not take any actions that the Company reasonably
         deems detrimental to its interests. To the extent practicable, the
         Company will request an Employee to cease and desist or rectify the
         conduct prior to seeking any legal remedies under this Paragraph and
         will only seek legal remedies if the Employee does not comply with
         such request. This Paragraph shall not be applied to conduct that is
         otherwise permitted by Paragraphs 2(a) through 2(f). For example, if
         an Employee leaves the Company's employment to work for an Entity
         that is not a Competitor under Paragraph 2(a), the Company will not
         claim that employment with that Entity violates Paragraph 2(g).
         Notwithstanding anything in this Section V to the contrary, this
         Paragraph 2(g) shall not be applicable to an Employee from and after
         his or her last day of active employment, if his or her active
         employment terminates for any reason (other than for Misconduct, as
         defined in Paragraph 2(e) above) within two years following a Change
         in Control (as such term is defined in Section IV of this Master
         Agreement, as amended from time to time, or any successor thereto).

         3. REMEDIES.

                  (a) REPAYMENT OF FINANCIAL GAIN. If an Employee fails to
         comply with the requirements of Paragraphs 2(a) through 2(g) and is
         at Band 70 or above at the time his or her active employment with the
         Company terminates, the Company may cancel any outstanding Awards and
         recover from the Employee (i) the amount of any gain realized on
         Options and stock appreciation rights exercised, as of the date
         exercised, (ii) any payments received for Portfolio Grant Awards or
         other Awards and (iii) stock whose restrictions lapsed (or the value
         of the stock at the time the restrictions lapsed) pursuant to am RSA,
         RSU Award or other Awards, during the last two years the Employee was
         employed by the Company. If an Employee fails to comply with the
         requirements of Paragraphs 2(a) through 2(g) and is at Band 50 or 60
         at the time his or her active employment with the Company terminates,
         the Company may cancel any outstanding Awards and recover from the
         Employee the amount of any gain realized on Options and stock
         appreciation rights exercised, as of the date exercised, which were
         exercised during the last six months the Employee was employed by the
         Company. If an Employee fails to comply with the requirements of
         Paragraphs 2(a) through 2(g), the Employee must and agrees to repay
         the Company in accordance with the terms of this Paragraph and the
         Company shall be entitled to set-off against the amount of any such
         repayment obligation any amount owed, from any source, to the
         Employee by the Company.

                                      -19-
<PAGE>
                  (b) OTHER REMEDIES. The remedy provided pursuant to
         Paragraph 3(a) shall be without prejudice to the Company's right to
         recover any losses resulting from a violation of this Section V and
         shall be in addition to whatever other remedies the Company may have,
         at law or equity, for violation of the terms of this Section V.

         4. APPROVAL TO EXERCISE OPTIONS. If an Employee is a Band 70 or above
employee and elects to exercise more than 40% of all of his or her outstanding
vested Options in any 90-day period, such Employee will need the written
approval of the Chief Executive Officer or President of American Express
Company or their delegate. If an Employee is a member of the Global Leadership
Team ("GLT") and elects to exercise more than 25% of all his or her
outstanding vested Options in any 90-day period, such Employee will need the
written approval of the Chief Executive Officer or President of American
Express Company or, if he or she is the Chief Executive Officer or President
of American Express Company, the written approval of the Committee. If an
Employee is a Band 50 or 60 employee and elects to exercise more than 40% of
all of his or her outstanding vested Options in any 90-day period, such
Employee will need the written approval of the Executive Officer who manages
the area he or she works in. The standard for determining whether to approve
an Employee's request to exercise options will be whether he or she is
complying and will comply with the requirement of Paragraphs 2(a) through
2(g). If an Employee's request for approval is denied, he or she may submit a
second request after 90 days have elapsed from the submission date of a
completed Notice of Exercise of Employee Stock Option form ("Form") on the
first request. An Employee will have 30 trading days (exclusive of blackout
periods due to "window" closings) from the date he or she receives written
approval to exercise up to the full number of options requested in the Form.

         5. COMPENSATION BAND CHANGES. If the Company changes its current
system of classifying employees in compensation bands and management tiers,
the references to Bands 50, 60 and 70, Executive Officers and GLT members in
this Section V will be construed to mean the compensation level(s) and
management tiers in the new or revised system that, in the Company's
discretion, most closely approximates these bands and management tiers under
the current system.

         6. INVOLUNTARY TERMINATIONS. This Section V will not apply to
employees of the Company who enter into a severance agreement with the Company
or other involuntary terminations as determined by the Company (excluding
terminations covered by Paragraph 2(e)).

         7. COURT MODIFICATION. If any term of this Section V is determined by
a court of competent jurisdiction not to be enforceable in the manner set
forth in this Section V, such term shall be enforceable to the maximum extent
possible under applicable law and such court shall reform such term to make it
enforceable.

                                      -20-
<PAGE>
         8. DEFINITION OF ENTITY. As used in this Section V, the word Entity
or Entities shall mean any corporation, partnership, association, joint
venture, trust, government, governmental agency or authority, person or other
organization or entity.

         9. WAIVERS. The failure of the Company to enforce at any time any
term of this Section V shall not be construed to be a waiver of such term or
of any other term. Any waiver or modification of the terms of this Section V
will only be effective if reduced to writing and signed by both the Employee
and the President or Chief Executive Officer of the Company.

                                      -21-

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