Directors' Deferred Compensation Plan On March 1, 2006, the Board of Directors of Chesapeake Corporation ("Chesapeake" or the "Company") approved the Chesapeake Corporation Directors' Deferred Compensation Plan (the "Plan"). The Plan amends and restates the Chesapeake Corporation Directors' Stock Option and Deferred Compensation Plan which was approved by the Company's stockholders in 1996 to (i) eliminate the provisions authorizing annual stock option grants to non-employee directors, (ii) allow the deferral of all or a portion of retainer fees paid in stock of the Company and (iii) comply with the requirements of Section 409A of the Internal Revenue Code (relating to deferred compensation plans). The Plan, filed as Exhibit 10.1 hereto, is incorporated herein by reference. Stock Awards to Non-Employee Directors On March 1, 2006, the Board of Directors approved awards of shares of the common stock of the Company under the Company's 2005 Incentive Plan to non-employee directors in office on April 12, 2006. Each non-employee director, except Mr. Buchan, will receive an award of 1,250 shares. Mr. Buchan, who was first elected to the Board of Directors on October 11, 2005, will receive an award of 625 shares. 2005 Annual Incentive Awards On March 1, 2006, the Committee of Independent Directors of the Board of Directors of the Company approved a 2005 annual incentive award for the Chief Executive Officer and on February 28, 2006 the Executive Compensation Committee of the Board of Directors of the Company approved 2005 annual incentive awards for the other executive officers of the Company as follows: | 
