2006 Annual Incentive Plan Criteria for Named Executive Officers

Summary

This agreement outlines the 2006 Annual Incentive Plan for the company's named executive officers. It sets target award percentages of base salary for each executive level, with payouts based on company and business unit performance. The plan uses return on equity (ROE) as the main performance measure and specifies how much of the award depends on corporate versus business unit results. Payouts vary depending on whether performance meets threshold, target, distinguished, or super-distinguished levels.

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EXHIBIT 10.1

Fiscal Year 2006 Annual Incentive Plan Criteria


The named executive officers are assigned the following Target Award Percentage of their base salary for the 2006 Annual Incentive Awards. These percentages are the same as those designated under the company's fiscal year 2005 annual incentive plan:

Level
Target Award Percentage
   
CEO
110%
13
 95%
12
 75%
11
 65%


Awards are based upon the consolidated results of the company and/or the individual’s business unit performance. The current weight of corporate and business unit performance for named executive officers is as follows:

Level
Corporate / Business Unit Weight
   
CEO and Level 13
100% / 0%
11-12
80% / 20%


The payout multiple of a participant’s Target Award Percentage, depending upon whether threshold, target, distinguished or super-distinguished performance is achieved is as follows:


Payout Multiple of Target Award Percentage
   
Threshold
  25%
Target
100%
Distinguished
150%
Super-Distinguished
200%


The consolidated results of the company shall be measured upon a return on equity (“ROE”) basis. ROE shall be calculated as net income divided by equity. Business unit results shall be measured based primarily on income needed to support the corporate ROE goal.




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