Document:

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                                                                   EXHIBIT 10.29

                         THE INDIVIDUAL RETIREMENT PLAN

                                       OF

                      UNITED STATES FIRE INSURANCE COMPANY

               AS AMENDED AND RESTATED EFFECTIVE AUGUST 13, 1998
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                       THE INDIVIDUAL RETIREMENT PLAN OF
                      UNITED STATES FIRE INSURANCE COMPANY

                               TABLE OF CONTENTS

<Table>
<Caption>
                                                              PAGE
                                                              ----
<S>                                                          <C>
INTRODUCTION................................................       1
1.  DEFINITIONS.............................................       2
1.01   Accounts.............................................       2
1.02   Actual Deferral Percentage...........................       2
1.03   Affiliated Company...................................       2
1.04   After-Tax Account....................................       2
1.05   After-Tax Contributions..............................       2
1.06   Annuity Starting Date................................       2
1.07   Beneficiary..........................................       2
1.08   Break in Service.....................................       3
1.09   Code.................................................       3
1.10   Committee............................................       3
1.11   Company..............................................       3
1.12   Company Account......................................       3
1.13   Compensation.........................................       3
1.14   Contribution Percentage..............................       3
1.15   Disability...........................................       4
1.16   Earnings.............................................       4
1.17   Effective Date.......................................       4
1.18   Eligible Employee....................................       4
1.19   Employee.............................................       4
1.20   Entry date...........................................       4
1.21   ERISA................................................       4
1.22   Execution Date.......................................       4
1.23   Fund or Investment Fund..............................       5
1.24   Highly Compensated Employee..........................       5
1.25   Hour of Service......................................       5
1.26   Leased Employee......................................       6
1.27   Matching Contributions...............................       6
1.28   Original Plan........................................       6
1.29   Participant..........................................       6
1.30   Plan.................................................       6
1.31   Plan Year............................................       6
1.32   Pre-Tax Account......................................       6
1.33   Profits..............................................       6
1.34   Qualified Joint and Survivor Annuity.................       6
1.35   Retirement...........................................       6
1.36   Rollover Account.....................................       6
1.37   Rollover Contributions...............................       6
1.38   Salary Deferral Contributions........................       6
1.39   Severance Date.......................................       6
1.40   Spousal Consent......................................       6
1.41   Statutory Compensation...............................       7
1.42   Talegen..............................................       7
1.43   Talegen Plan.........................................       7
1.44   Trust or Trust Fund..................................       7
</Table>

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<Table>
<Caption>
                                                              PAGE
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<S>                                                          <C>
1.45   Trustee..............................................       7
1.46   USFIC................................................       7
1.47   Valuation Date.......................................       7
1.48   Vested Portion.......................................       7
1.49   Vesting Service......................................       7
1.50   Year of Eligibility Service..........................       8
2.  ELIGIBILITY AND REIMBURSEMENT...........................       8
2.01   Eligibility..........................................       8
2.02   Membership...........................................       8
2.03   Reemployment of Former Employees and Former
  Participants..............................................       9
2.04   Transferred Participants.............................       9
2.05   Termination of Membership............................       9
2.06   Eligibility of Employees of Former Talegen
  Affiliates................................................       9
3.  CONTRIBUTIONS...........................................       9
3.01   Salary Deferral Contributions........................       9
3.02   After-Tax Contributions..............................      10
3.03   Matching Contributions...............................      11
3.04   Basic Contributions..................................      11
3.05   Rollover Contributions...............................      12
3.06   Change in Contributions..............................      12
3.07   Suspension of Contributions..........................      12
3.08   Actual Deferral Percentage Test......................      12
3.09   Contribution Percentage Test.........................      14
3.10   Aggregate Contribution Limitation....................      15
3.11   Additional Discrimination Testing Provisions.........      15
3.12   Maximum Annual Additions.............................      15
3.13   Return of Contributions..............................      17
3.14   Certain Contributions Not Contingent Upon Profits....      17
4.  INVESTMENT OF CONTRIBUTIONS.............................      17
4.01   Investment Funds.....................................      17
4.02   Investment of Participants' Accounts.................      18
4.03   Responsibility for Investments.......................      18
4.04   Change of Election...................................      18
4.05   Reallocation of Accounts among the Funds.............      18
4.06   Limitations Imposed by Contract......................      18
5.  VALUATION OF THE ACCOUNTS...............................      19
5.01   Valuation of the Investment Funds....................      19
5.02   Right to Change Procedures...........................      19
5.03   Statement of Accounts................................      19
6.  VESTED PORTION OF ACCOUNTS..............................      19
6.01   After-Tax Account, Pre-Tax Account, and Rollover
  Account...................................................      19
6.02   Company Account......................................      19
6.03   Disposition of Forfeitures...........................      20
6.04   Vesting after Account Restoration....................      21
6.05   Vesting Schedule Amendment...........................      21
</Table>

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<Table>
<Caption>
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<S>                                                          <C>
7.  WITHDRAWALS WHILE STILL EMPLOYED........................      21
7.01   Withdrawal of After-Tax Contributions................      21
7.02   Withdrawal of Rollover Contributions.................      21
7.03   Withdrawal of Company Contributions..................      21
7.04   withdrawal after Age 59 1/2..........................      22
7.05   Hardship Withdrawal..................................      22
7.06   Procedures and Restrictions..........................      22
8.  LOANS TO PARTICIPANTS...................................      23
8.01   Amount Available.....................................      23
8.02   Terms................................................      24
9.  DISTRIBUTION OF ACCOUNTS UPON TERMINATION...............      25
9.01   Eligibility..........................................      25
9.02   Forms of Distribution................................      25
9.03   Commencement of Payments.............................      26
9.04   Age 70 1/2 Required Distributions....................      26
9.05   Small Benefits.......................................      27
9.06   Status of Accounts Pending Distribution..............      28
9.07   Proof of Death and Right of Beneficiary or Other
  Person....................................................      28
9.08   Distribution Limitation..............................      28
9.09   Direct Rollover of Certain Distributions.............      28
10.  ADMINISTRATION OF PLAN.................................      29
10.01 Appointment of Committees.............................      29
10.02 Duties of Committees..................................      29
10.03 Individual Accounts...................................      30
10.04 Meetings..............................................      30
10.05 Action of Majority....................................      30
10.06 Compensation and Bonding..............................      30
10.07 Establishment of Rules................................      30
10.08 Prudent Conduct.......................................      30
10.09 Service in More than One Fiduciary Capacity...........      30
10.10 Limitation of Liability...............................      30
10.11 Indemnification.......................................      30
10.12 Named Fiduciary.......................................      31
11.  MANAGEMENT OF FUNDS....................................      31
11.01 Trust Agreement.......................................      31
11.02 Exclusive Benefit Rule................................      31
12.  AMENDMENT, MERGER AND TERMINATION......................      31
12.01 Amendment of Plan.....................................      31
12.02 Merger, Consolidation or Transfer.....................      31
12.03 Additional Participating Companies....................      31
12.04 Termination of Plan...................................      32
12.05 Distribution of Accounts upon a Sale of Assets or a
  Sale of a Subsidiary......................................      32
13  GENERAL PROVISIONS......................................      33
13.01 Nonalienation.........................................      33
13.02 Conditions of Employment Not Affected by Plan.........      33
13.03 Facility of Payment...................................      33
13.04 Information...........................................      33
</Table>

                                       iii
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<Table>
<Caption>
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<S>                                                          <C>
13.05 Top-Heavy Provisions..................................      34
13.06 Prevention of Escheat.................................      35
13.07 Elections.............................................      35
13.08 Limitations Imposed on Inside Participants............      35
13.09 Construction..........................................      35
13.10 Qualified Military Service............................      36
EXECUTION...................................................      36
</Table>

                                        iv
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                         THE INDIVIDUAL RETIREMENT PLAN
                                       OF
                      UNITED STATES FIRE INSURANCE COMPANY

                                  INTRODUCTION

     Effective January 1, 1971, Crum and Forster, Inc. established the Crum and
Forster Employees Savings Plan (the "C&F Plan") for the benefit of such of its
employees as were eligible thereunder. The C&F Plan was subsequently amended
several times and was restated as of January 1, 1986, at which time it was
renamed the Crum and Forster, Inc. Savings Plan. The C&F Plan was subsequently
amended several times and was restated as of January 1, 1989. The C&F Plan was
amended and restated as of July 1, 1993, and renamed the Individual Retirement
Plan of Crum and Forster, Inc. As of September 3, 1993, the C&F Plan was renamed
The Individual Retirement Plan of Talegen Holdings, Inc. (the "Talegen Plan") to
reflect the name of the successor to Crum and Forster, Inc. The Talegen Plan was
amended and restated effective as of July 1, 1993, to incorporate certain plan
design changes, as well as statutory changes having the earlier or later
effective dates specified therein, and was again restated effective as of April
25, 1995, to reflect the plan provisions in effect as of that date.

     Effective August 13, 1998, United States Fire Insurance Company ("USFIC"),
a participating employer and a "Company" under the Talegen Plan, was purchased
by Fairfax Financial Holdings Limited. Effective August 13, 1998, USFIC adopted
The Individual Retirement Plan of United States Fire Insurance Company (the
"Original Plan") and became a "Company" thereunder. Effective August 13, 1998
(the "Spin Off Date"), all assets, liabilities and account balances maintained
under the Talegen Plan for the benefit of each individual who is both (i) an
Eligible Employee of the Company (as defined in Section 1.18) or a former
Employee whose most recent Hour of Service was credited with respect to his or
her service with the Company, and (ii) a participant in the Talegen Plan on the
Spin Off Date were spun off from the Talegen Plan and merged with and into the
Original Plan. Effective as of August 13, 1998, the Original Plan was restated
as this Plan, as set forth herein.

     Except as otherwise specifically provided herein, (x) the rights and
benefits of any individual whose account balance was not transferred to the
Original Plan pursuant to the preceding paragraph, and who was not a Participant
in the Original Plan, shall be determined in accordance with the provisions of
the Talegen Plan in effect and operative at the relevant time; and (y) the
rights and benefits of any Participant in the Original Plan or this Plan shall
be determined in accordance with the provisions of this Plan in effect and
operative at the relevant time; provided, however, that the rights and benefits
of any Participant whose last Hour of Service was credited with respect to
service prior to the Spin Off Date shall be determined in accordance with the
provisions of the Talegen Plan in effect and operative at the time of his or her
retirement or termination.

     This Plan is intended to qualify as a profit sharing plan (within the
meaning of Section 401(a) of the Code), which includes a qualified cash or
deferred arrangement (within the meaning of Section 401(k) of the Code), and a
404(c) plan (within the meaning of Section 404(c) of ERISA).

                                        1
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                                   ARTICLE 1.
                                  DEFINITIONS

1.01   "ACCOUNTS" means the Company Account, the After-Tax Account, the Pre-Tax
       Account and the Rollover Account and, as of the Spin-Off Date (as defined
       in the Introduction) shall include the corresponding accounts transferred
       from the Talegen Plan to this Plan.

1.02   "ACTUAL DEFERRAL PERCENTAGE" means, with respect to a specified group of
       Employees, the average of the ratios, calculated separately for each
       Employee in that group, of (a) the amount of Salary Deferral
       Contributions made pursuant to Section 3.01 for a Plan Year (including
       Salary Deferral Contributions returned to a Highly Compensated Employee
       under Section 3.01(c) and Salary Deferral Contributions returned to any
       Employee pursuant to Section 3.01(d)), to (b) the Employees' Statutory
       Compensation for that entire Plan Year; provided, however, that with
       respect to Employees who become Participants on or before April 1, 1999,
       Statutory Compensation for the Plan Year in which they become
       Participants shall only be counted if received during the period such
       Employee is, or is eligible to become, a Participant. For purposes of
       determining the Actual Deferral Percentage for any Plan Year, the above
       ratios shall be computed for such Plan Year separately for the group of
       all Participants who are Highly Compensated Employees with respect to
       such Plan Year and for the group of all other Participants who are not
       Highly Compensated Employees with respect to such Plan Year. The Actual
       Deferral Percentage for each group and the ratio determined for each
       Employee in the group shall be calculated to the nearest one one-
       hundredth of 1 percent. For purposes of determining the Actual Deferral
       Percentage for a Plan Year, Salary Deferral Contributions may be taken
       into account for a Plan Year only if they:

      (a)   relate to compensation that would have been received by the Employee
            in the Plan Year but for the deferral election,

      (b)   are allocated to the Employee as of a date within that Plan Year and
            the allocation is not contingent on the participation or performance
            of service after such date, and

      (c)   are actually paid to the Trustee no later than 12 months after the
            end of the Plan Year to which the contributions relate.

     In computing the Actual Deferral Percentage for a Plan Year (i) Salary
     Deferral Contributions described in Section 3.11(c) shall not be taken into
     account except as provided therein, and (ii) Basic Contributions and
     Matching Contributions described in Section 3.11(d) that are to be taken
     into account for purposes of Section 3.08 shall be treated as if they were
     Salary Deferral Contributions.

1.03   "AFFILIATED COMPANY" means any employer which is a member of a controlled
       group of corporations (as defined in Section 414(b) of the Code) which
       also includes as a member the Company; any trade or business under common
       control (as defined in Section 414(c) of the Code) with the Company; any
       organization (whether or not incorporated) which is a member of an
       affiliated service group (as defined in Section 414(m) of the Code) which
       includes the Company; and any other entity required to be aggregated with
       the Company pursuant to regulations under Section 414(o) of the Code.
       Notwithstanding the foregoing, for purposes of Sections 1.25 and 3.12,
       the definitions in Sections 414(b) and (c) of the Code shall be modified
       by substituting the phrase "more than 50 percent" for the phrase "at
       least 80 percent" each place it appears in Section 1563(a)(1) of the
       Code.

1.04   "AFTER-TAX ACCOUNT" means the account credited with the After-Tax
       Contributions made by a Participant and earnings on those contributions.

1.05   "AFTER-TAX CONTRIBUTIONS" means amounts contributed pursuant to Section
       3.02.

1.06   "ANNUITY STARTING DATE" means the first day of the first period for which
       an amount is paid following a Participant's Retirement or other
       termination of employment.

1.07   "BENEFICIARY" means any person, persons or entity designated by a
       Participant to receive any benefits payable in the event of the
       Participant's death. However, a married Participant's spouse shall be
       deemed to be his or her Beneficiary unless or until he or she elects
       another Beneficiary with Spousal Consent. If no

                                        2
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       Beneficiary designation is in effect at the Participant's death, or if no
       person, persons or entity so designated survives the Participant, the
       Participant's surviving spouse, if any, shall be deemed to be the
       Beneficiary; otherwise, the Beneficiary shall be the estate of the
       Participant.

1.08   "BREAK IN SERVICE" means an event affecting forfeitures, which shall
       occur as of the Participant's Severance Date if he or she is not
       reemployed by the Company or an Affiliated Company within one year after
       a Severance Date. However, if an individual is absent from work
       immediately following his or her active employment, irrespective of
       whether the individual's employment is terminated, because of the
       individual's pregnancy, the birth of the individual's child, the
       placement of a child with the individual, in connection with the adoption
       of that child by the individual or for purposes of caring for that child
       for a period beginning immediately following that birth or placement, a
       Break in Service shall occur only if the Participant does not return to
       work within two years of his or her Severance Date. A Break in Service
       shall not occur during (1) an approved leave of absence, including a
       leave of absence protected under the federal Family and Medical Leave Act
       of 1993, as amended, or (2) a period of military service which is
       included in the Participant's Vesting Service pursuant to Sections 1.49
       or 13.10.

1.09   "CODE" means the Internal Revenue Code of 1986, as amended from time to
       time. Reference to a specific Section of the Code shall include such
       section, any valid regulation promulgated thereunder, and any comparable
       provision of any future legislation amending, supplementing or
       superseding such section.

1.10   "COMMITTEE" means the individuals named by USFIC to the Administrative
       Committee and the Finance Committee as provided in Article 10. Except as
       provided for the purposes of Sections 4.01(a) and 10.01(c), all
       references to "Committee" shall be to the Administrative Committee.

1.11   "COMPANY" means USFIC or any other employer participating in this Plan as
       provided in Section 12.03, with respect to its employees.

1.12   "COMPANY ACCOUNT" means the account credited with Matching Contributions,
       other Company contributions made pursuant to Section 3.04, and earnings
       on those contributions.

1.13   "COMPENSATION" means the basic cash remuneration paid to an Eligible
       Employee for services rendered to the Company, determined prior to any
       reduction pursuant to Section 3.01 or pursuant to a cafeteria plan under
       Section 125 of the Code, excluding bonuses, fees, overtime pay, severance
       pay, expenses or other special emolument and all other forms of special
       pay. However, Compensation shall not exceed $150,000, or such other
       amount specified under Section 401(a)(17) of the Code, as adjusted
       pursuant to Sections 401(a)(17)(B) and 415(d) of the Code (the
       "COMPENSATION LIMIT").

1.14   "CONTRIBUTION PERCENTAGE" means, with respect to a specified group of
       Employees, the average of the ratios, calculated separately for each
       Employee in that group, of (a) the sum of the Employee's After-Tax
       Contributions and Matching Contributions for a Plan Year (excluding any
       Matching Contributions forfeited under the provisions of Sections 3.01
       and 3.08), to (b) his or her Statutory Compensation for that entire Plan
       Year; provided, however, that with respect to Employees who become
       Participants on or before April 1, 1999, Statutory Compensation for the
       Plan Year in which they become Participants shall only be counted if
       received during the period such Employee is, or is eligible to become, a
       Participant. For purposes of determining the Contribution Percentage for
       any Plan Year, the above ratios shall be computed for such Plan Year for
       the group of all Participants who are Highly Compensated Employees with
       respect to such Plan Year and for the group of all other Participants who
       are not Highly Compensated Employees with respect to such Plan Year. The
       Contribution Percentage for each group and the ratio defined for each
       Employee in the group shall be calculated to the nearest one
       one-hundredth of 1 percent. For purposes of determining the Contribution
       Percentage for a Plan Year, After-Tax Contributions shall be taken into
       account if made for such Plan Year, and Matching Contributions shall be
       taken into account if they are:

      (a)   made on behalf of a Participant on account of such Participant's
            Salary Deferral Contribution or After-Tax Contribution for such Plan
            Year;

      (b)   allocated to the Participant's Company Account as of a date within
            such Plan Year;

                                        3
<PAGE>

      (c)   actually paid to the Trustee within 12 months after the end of such
            Plan Year; and

      (d)   not taken into account for purposes of the test described in Section
            3.08, pursuant to Section 3.11(d).

     Basic Contributions described in Section 3.11(d) that are to be taken into
     account for purposes of Section 3.09 shall be treated as if they were
     Matching Contributions for a Plan Year if allocated to the Participant's
     Company Account as of a date within such Plan Year.

1.15   "DISABILITY" means total and permanent physical or mental disability, as
       determined on the basis of medical evidence under rules and procedures
       established by the Committee.

1.16   "EARNINGS" means the amount of earnings to be returned with any excess
       deferrals, excess contributions or excess aggregate contributions under
       Sections 3.01, 3.08 3.09 or 3.10 for a Plan Year, determined as of the
       last day of such Plan Year under this Plan's method of allocating income
       to Participants' Accounts pursuant to Article 5.

1.17   "EFFECTIVE DATE" means August 13, 1998.

1.18   "ELIGIBLE EMPLOYEE" means an Employee, excluding:

      (a)   any individual who is employed by the Company on a part-time basis
            or who is classified or treated by the Company as a "summer intern"
            or other "temporary employee", provided, however, that any such
            individual who is credited with at least 1,000 Hours of Service for
            (i) the 12-month period beginning on the date he or she first
            completes an Hour of Service (as defined in Section 1.25(a)), or
            (ii) any Plan Year beginning after that date, shall become an
            Eligible Employee on the Entry Date that occurs on or next follows
            the last day of such 12-month period or Plan Year;

      (b)   any individual who, as to any period of time, is classified or
            treated by the Company as an independent contractor, a consultant, a
            Leased Employee, or an employee of an employment agency or any
            entity other than the Company, even if such individual is
            subsequently determined to have been a common-law employee of the
            Company during such period;

      (c)   any individual employed by any corporation or other business entity
            that is merged or liquidated into, or whose assets are acquired by
            the Company, unless USFIC's Chief Executive Officer (in his or her
            discretion) directs in writing that the employees of such
            corporation or other business entity, as the case may be, shall be
            Eligible Employees under this Plan;

      (d)   any individual who is included in a unit of individuals covered by a
            collective bargaining agreement which does not provide for his or
            her membership in this Plan;

      (e)   any director, unless such director is also an officer of the
            Company; and

      (f)   non-United States citizens employed outside the United States by any
            participating subsidiary or Affiliated Company.

1.19   "EMPLOYEE" means a common-law employee of the Company who receives stated
       compensation other than a pension, severance pay, retainer, or fee under
       contract.

1.20   "ENTRY DATE" means the Effective Date and, thereafter, (a) for periods
       ending prior to April 1, 1999, the first day of any calendar month
       following the date an Eligible Employee completes one Hour of Service,
       and (b) for periods beginning on or after April 1, 1999, the first day of
       the first pay period coincident with or next following the date an
       Eligible Employee completes one Hour of Service, or as soon thereafter as
       is practicable for the Company.

1.21   "ERISA" means the Employee Retirement Income Security Act of 1974, as
       amended from time to time. Reference to a specific section of ERISA shall
       include such section, any valid regulation promulgated thereunder, and
       any comparable provision of any future legislation amending,
       supplementing or superseding such section.

1.22   "EXECUTION DATE" means the date on which this Plan is executed, as
       indicated on the last page hereof.
                                        4
<PAGE>

1.23   "FUND" or "INVESTMENT FUND" means the separate funds in which
       contributions to this Plan are invested in accordance with Article 4.

1.24   "HIGHLY COMPENSATED EMPLOYEE" means any individual employed by the
       Company or an Affiliated Company (whether or not eligible for membership
       in this Plan) who satisfies the criteria of the following paragraphs (a)
       or (b):

      (a)   During the look-back year the individual received Statutory
            Compensation in excess of $80,000 (as adjusted pursuant to Sections
            414(q)(1) and 415(d) of the Code).

      (b)   During the determination year or the look-back year the individual
            was at any time a 5 percent owner of the Company.

     The determination of Highly Compensated Employees shall be subject to the
     following rules:

      (i)   Individuals who are nonresident aliens and who received no earned
            income from the Company or an Affiliated Company which constitutes
            income from sources within the United States shall be disregarded
            for all purposes of this Section.

      (ii)   For purposes of this Section 1.24, the "DETERMINATION YEAR" means
             the Plan Year, the "LOOK-BACK YEAR" means the 12-month period
             immediately preceding the determination year, and "5 PERCENT OWNER"
             means a 5 percent owner within the meaning of Section 416(i)(1) of
             the Code.

      (iii)  The provisions of this Section 1.24 shall be further subject to
             such additional requirements as shall be described in Section
             414(q) of the Code and its applicable regulations, which shall
             override any aspects of this Section inconsistent therewith.

      (iv)  A Participant is a Highly Compensated Employee for a particular Plan
            Year if and only if he or she meets the definition of a Highly
            Compensated Employee in effect for that Plan Year.

1.25   "HOUR OF SERVICE" means, with respect to any applicable computation
       period.

      (a)   each hour for which an individual is paid or entitled to payment for
            the performance of duties for the Company or an Affiliated Company;

      (b)   each hour for which an individual is paid or entitled to payment by
            the Company or an Affiliated Company on account of a period during
            which no duties are performed, whether or not the employment
            relationship has terminated, due to vacation, holiday, illness,
            incapacity (including disability), layoff, jury duty, military duty
            or leave of absence, but not more than 501 hours for any single
            continuous period; and

      (c)   each hour for which back pay, irrespective of mitigation of damages,
            is either awarded or agreed to by the Company or an Affiliated
            Company, excluding any hour credited under (a) or (b), which shall
            be credited to the computation period or periods to which the award,
            agreement or payment pertains rather than to the computation period
            in which the award, agreement or payment is made.

     No hours shall be credited on account of any period during which an
     individual performs no duties and receives payment solely for the purpose
     of complying with unemployment compensation, workers' compensation, or
     disability insurance laws.

     If the Company finds it impractical to count the actual Hours of Service
     for any class or group of Employees, each Employee in that class or group
     shall be credited with the Hours of Service shown in the following table
     for each pay period in which he has at least one Hour of Service:

<Table>
<Caption>
PAY PERIOD                                                    HOURS OF SERVICE CREDIT
----------                                                    -----------------------
<S>                                                           <C>
Daily.......................................................             10
Weekly......................................................             45
Bi-weekly...................................................             90
Semi-monthly................................................             95
Monthly.....................................................            190
</Table>

                                        5
<PAGE>

     However, an Employee shall be credited only for his normal working hours
     (i.e., calculated on the basis of whether such Employee is a full-time or a
     part-time Employee, exclusive of overtime hours) during a paid absence.

     In all respects, an Employee's Hours of Service shall be credited as
     required by Title 29 of the Code of Federal Regulations, Sections
     2530.200b-2(b) and (c).

1.26   "LEASED EMPLOYEE" means any individual performing services for the
       Company or an Affiliated Company as a leased employee as defined in
       Section 414(n) of the Code. In the case of any individual who is a Leased
       Employee before or after a period of service as an Employee, the entire
       period during which he or she has performed services as a Leased Employee
       shall be counted as service as an Employee for all purposes of this Plan,
       except that he or she shall not, by reason of that status, become a
       Participant in this Plan.

1.27   "MATCHING CONTRIBUTIONS" means amounts contributed pursuant to Section
       3.03.

1.28   "ORIGINAL PLAN" means The Individual Retirement Plan of United States
       Fire Insurance Company, as adopted on the Effective Date and as amended
       through the day immediately preceding the Execution Date.

1.29   "PARTICIPANT" means any individual included in the membership of this
       Plan as provided in Article 2.

1.30   "PLAN" means (a) The Individual Retirement Plan of United States Fire
       Insurance Company, as set forth in this document or as amended from time
       to time, and (b) with respect to all periods prior to the Effective Date,
       shall be deemed to refer to the Talegen Plan.

1.31   "PLAN YEAR" means the calendar year.

1.32   "PRE-TAX ACCOUNT" means the account credited with the Salary Deferral
       Contributions made on a Participant's behalf and earnings on those
       contributions.

1.33   "PROFITS" means both accumulated earnings and profits and current net
       taxable income to the Company before deduction of Federal, state and
       local income taxes and before any contributions made by the Company to
       this or any other employee benefit plan maintained by the Company, as
       determined by its independent public accountants in accordance with
       generally accepted accounting principles.

1.34   "QUALIFIED JOINT AND SURVIVOR ANNUITY" means a monthly benefit payable to
       the Participant during his or her life, and after his or her death a
       monthly benefit, payable to and during the life of the spouse to whom the
       Participant was married on the Annuity Starting Date, at the rate of
       one-half the monthly benefit paid to the Participant.

1.35   "RETIREMENT" means termination of employment on or after attainment of
       age 55.

1.36   "ROLLOVER ACCOUNT" means the account credited with the Rollover
       Contributions made by a Participant and earnings on those contributions.

1.37   "ROLLOVER CONTRIBUTIONS" means amounts contributed pursuant to Section
       3.05.

1.38   "SALARY DEFERRAL CONTRIBUTIONS" means amounts contributed pursuant to
       Section 3.01.

1.39   "SEVERANCE DATE" means the earlier of (a) the date an individual quits,
       retires, is discharged or dies, or (b) the first anniversary of the date
       on which an individual is first absent from service, with or without pay,
       for any other reason, such as vacation, sickness, disability, layoff or
       leave of absence.

1.40   "SPOUSAL CONSENT" means the written consent of a Participant's spouse to
       the Participant's election of a specified form of benefit after electing
       an annuity under Section 9.02(a)(ii) or designation of a specified
       Beneficiary or to a Participant's application to receive an in-service
       withdrawal under Section 7.06 or to obtain a loan from this Plan pursuant
       to Section 8.02(a)(vii). That consent shall be witnessed by a Plan
       representative or notary public and shall acknowledge the effect on the
       spouse of the Participant's election. The requirement for spousal consent
       may be waived under rules and procedures established by the Committee
       based upon a reasonable belief that there is no spouse, the spouse cannot
       be located, a

                                        6
<PAGE>

       legal separation has occurred, or because of such other circumstances as
       may be established by applicable law.

1.41   "STATUTORY COMPENSATION" means wages within the meaning of Section
       3401(a) of the Code (for purposes of income tax withholding at the
       source), but determined without regard to any rules that limit the
       remuneration included in wages based on the nature or location of the
       employment or the services performed. For purposes of determining Highly
       Compensated Employees under Section 1.24 and key employees under Section
       13.05(a)(iii), Statutory Compensation shall also include Salary Deferral
       Contributions and amounts contributed on a Participant's behalf on a
       salary reduction basis to a cafeteria plan under Section 125 of the Code.
       For all other purposes, each Plan Year the Committee may direct that
       Statutory Compensation shall include Salary Deferral Contributions and
       amounts contributed on a Participant's behalf on a salary reduction basis
       to a cafeteria plan under Section 125 of the Code. Statutory Compensation
       shall not exceed the Compensation Limit (as defined in Section 1.13).

1.42   "TALEGEN" means Talegen Holdings, Inc. (prior to September 3, 1993, Crum
       and Forster, Inc.).

1.43   "TALEGEN PLAN" means The Individual Retirement Plan of Talegen Holdings,
       Inc., as in effect on August 12, 1998 (prior to September 3, 1993, the
       Individual Retirement Plan of Crum and Foster, Inc).

1.44   "TRUST" or "TRUST FUND" means the fund established by USFIC as part of
       this Plan, pursuant to a trust agreement with the Trustee, into which
       contributions are to be made and from which benefits are to be paid in
       accordance with the terms of this Plan.

1.45   "TRUSTEE" means the trustee holding the funds of this Plan as provided in
       Article 1.1.

1.46   "USFIC" means United States Fire Insurance Company, or any successor by
       merger, purchase or otherwise; provided, however, that with respect to
       all periods prior to the Effective Date, any reference to USFIC in its
       capacity as the sponsor of this Plan, rather than as merely a "Company"
       (as defined in Section 1.11), shall be deemed to refer to Talegen.

1.47   "VALUATION DATE" means the last business day of each month and such other
       dates as are deemed necessary in accordance with rules and procedures
       established by the Committee for the proper administration of this Plan.

1.48   "VESTED PORTION" means the portion of the Accounts in which the
       Participant has a nonforfeitable interest as provided in Article 6 or, if
       applicable, Sections 12.04 or 13.05.

1.49   "VESTING SERVICE" means, with respect to any individual, his or her
       period of employment with the Company or any Affiliated Company, whether
       or not as an Employee, beginning on the date he or she first completes an
       Hour of Service and ending on his or her Severance Date, counted in full
       years and partial years with each month or any part thereof counting as
       one-twelfth of a year, provided that:

      (a)   if an individual quits, retires or is discharged and he or she is
            reemployed within one year of the earlier of (i) his or her date of
            termination or (ii) the first day of an absence from service of less
            than 12 months during which absence such termination occurred, the
            period between his or her Severance Date and his or her date of
            reemployment shall be included in his or her Vesting Service;

      (b)   if he or she is absent from the service of the Company or any
            Affiliated Company because of service in the Armed Forces of the
            United States and he or she returns to service with the Company or
            an Affiliated Company having applied to return while his or her
            reemployment rights were protected by law, the absence shall be
            included in his or her Vesting Service;

      (c)   if his or her employment terminates and he or she is reemployed
            after he or she has incurred a Break in Service, his or her Vesting
            Service after reemployment shall be aggregated with his or her
            previous period or periods of Vesting Service if (i) he or she was
            vested in any portion of his or her Company Account, or (ii) the
            period from his or her Break in Service to his or her subsequent
            reemployment does not equal or exceed the greater of five years or
            his or her period of Vesting Service before his or her Break in
            Service; and

                                        7
<PAGE>

      (d)   if he or she was employed by Talegen or any Affiliated Company (with
            respect to Talegen) prior to the Effective Date, his or her Vesting
            Service shall include the Vesting Service credited to him or her
            under the Talegen Plan.

1.50   "YEAR OF ELIGIBILITY SERVICE" means, with respect to any individual, the
       12-month period beginning on the date he or she first completes an Hour
       of Service upon hire or rehire, or on any anniversary of that date, in
       which he or she first completes at least 1,000 Hours Service.

                                   ARTICLE 2.
                         ELIGIBILITY AND REIMBURSEMENT

2.01   ELIGIBILITY

      (a)   Each Eligible Employee of the Company who both (i) was a Participant
            in the Talegen Plan on the day before the Effective Date, and (ii)
            is an Eligible Employee of the Company (as defined in Section 1.18)
            whose most recent Hour of Service was credited with respect to his
            or her service with the Company on the Effective Date, shall
            continue to be a Participant as of the Effective Date. Each other
            Eligible Employee shall become a Participant as follows:

          (i)   Effective as of the Effective Date, each such other Eligible
                Employee shall become a Participant on the Entry Date coinciding
                with or immediately following the date he or she completes one
                Year of Eligibility Service, provided that he or she is then an
                Eligible Employee.

          (ii)   Effective as of April 1, 1999, each such other Eligible
                 Employee shall become a Participant on the Entry Date
                 coinciding with or immediately following the date he or she
                 completes one Hour of Service, provided that he or she is then
                 an Eligible Employee. Notwithstanding the immediately preceding
                 sentence, an Eligible Employee shall become a Participant for
                 purposes of Section 3.03 (Matching Contributions) on the Entry
                 Date coinciding with or immediately following the date he or
                 she completes one Year of Eligibility Service, provided that he
                 or she is then an Eligible Employee.

      (b)   Accounts maintained under the Talegen Plan for former Employees of
            the Company shall be transferred to this Plan and the former
            Employees who are the beneficial owners of such Accounts shall
            continue in the membership of this Plan as of the Effective Date,
            but shall not be eligible to make After-Tax Contributions or receive
            allocations of Salary Deferral Contributions, Matching Contributions
            or other Company contributions while their employment status is
            other than as Employees.

2.02   MEMBERSHIP

     On or as soon as practicable after the Entry Date on which an Eligible
     Employee becomes a Participant (whether or not the Eligible Employee elects
     to start Contributions under Section 3.01 or 3.02), he or she shall provide
     the Company with the following in a manner prescribed by the Committee:

      (a)   the designation of the percentage of Compensation, if any, he or she
            wishes to contribute as After-Tax Contributions under Section 3.02
            or have the Company contribute as Salary Deferral Contributions if
            he or she makes the election described in Section 3.01, or both;

      (b)   his or her authorization for the Company to make regular payroll
            deductions or to reduce his or her Compensation, or both;

      (c)   his or her investment election; and

      (d)   his or her Beneficiary designation.

                                        8
<PAGE>

2.03   REEMPLOYMENT OF FORMER EMPLOYEES AND FORMER PARTICIPANTS

     Any individual reemployed by the Company as an Eligible Employee, who was
     previously a Participant or who was previously eligible to become a
     Participant in this Plan at any time or in the Talegen Plan prior to the
     Effective Date, shall become a Participant upon complying with Section
     2.02. Any individual reemployed by the Company as an Eligible Employee, who
     was not previously eligible to become a Participant in this Plan at any
     time or in the Talegen Plan prior to the Effective Date, shall become a
     Participant upon completing the eligibility requirements described in
     Section 2.01 and complying with Section 2.02.

2.04   TRANSFERRED PARTICIPANTS

     A Participant who remains in the employ of the Company or an Affiliated
     Company but ceases to be an Eligible Employee shall continue to be a
     Participant of this Plan but shall not be eligible to make After-Tax
     Contributions or receive allocations of Salary Deferral Contributions,
     Matching Contributions or other Company contributions while his or her
     employment status is other than as an Eligible Employee.

2.05   TERMINATION OF MEMBERSHIP

     A Participant's membership shall terminate on the date he or she is no
     longer employed by the Company or any Affiliated Company unless the
     Participant is entitled to benefits under this Plan, in which event his or
     her membership shall terminate when those benefits are distributed to him
     or her or upon his or her death.

2.06   ELIGIBILITY OF EMPLOYEES OF FORMER TALEGEN AFFILIATES

     Each individual employed by the Company as an Eligible Employee who both
     (i) was hired from a company that formerly was a participating employer in
     the Talegen Plan, and (ii) participated in the Talegen Plan on any date
     prior to the sale of such company by Talegen, shall become a Participant
     upon complying with Section 2.02.

                                   ARTICLE 3.
                                 CONTRIBUTIONS

3.01   SALARY DEFERRAL CONTRIBUTIONS

      (a)   A Participant may elect under Section 2.02, in such manner as the
            Committee shall prescribe, to reduce his or her Compensation payable
            while a Participant by at least 1 percent and not more than 12
            percent (or such lower amount as determined in accordance with rules
            and procedures established by the Committee), in multiples of 1
            percent, and have that amount contributed to this Plan by the
            Company as Salary Deferral Contributions. If an election of salary
            deferral contributions was in effect for a Participant under the
            Talegen Plan immediately prior to the Effective Date, such election
            shall be deemed to be his or her election under this Section 3.01
            with respect to the first pay period ending after the Effective
            Date. After the Effective Date, a Participant's election of Salary
            Deferral Contributions shall become effective with the first payroll
            period beginning on or after the Entry Date on which his or her
            election is received by the Committee. Salary Deferral Contributions
            shall be further limited as provided below and in Sections 3.08,
            3.11 and 3.12. Any Salary Deferral Contributions shall be paid to
            the Trustee as soon as practicable.

      (b)   In no event shall the Participant's Salary Deferral Contributions
            and similar contributions made on his or her behalf by the Company
            or an Affiliated Company, or by Talegen or any Affiliated Company
            (with respect to Talegen) in calendar 1998, to all plans, contracts
            or arrangements subject to the provisions of Section 401(a)(30) of
            the Code in any calendar year exceed $7,000, or such other amount
            specified under Section 402(g)(3) of the Code, as adjusted pursuant
            to Sections 402(g)(5) and 415(d) of the Code. If a Participant's
            Salary Deferral Contributions in a

                                        9
<PAGE>

            calendar year reach that dollar limitation, his or her election of
            Salary Deferral Contributions for the remainder of the calendar year
            will be canceled and then recharacterized as an election to make
            After-Tax Contributions under Section 3.02 to be matched by Matching
            Contributions, at the same rate as was previously in effect for his
            or her Salary Deferral Contributions. Each Participant affected by
            this paragraph (b) may elect to change or suspend the rate at which
            he or she makes After-Tax Contributions. As of the first pay period
            of the calendar year following such cancellation, the Participant's
            election of Salary Deferral Contributions shall again become
            effective in accordance with his or her previous election.

      (c)   In the event that the sum of the Salary Deferral Contributions and
            similar contributions to any other qualified defined contribution
            plan maintained by the Company or an Affiliated Company, or by
            Talegen or any Affiliated Company (with respect to Talegen) in
            calendar 1998, exceeds the dollar limitation in Section 3.01(b) for
            any calendar year, the Participant shall be deemed to have elected a
            return of Salary Deferral Contributions in excess of such limit
            ("excess deferrals") from this Plan. The excess deferrals, together
            with Earnings, shall be returned to the Participant no later than
            the April 15th following the end of the calendar year in which the
            excess deferrals were made. The amount of excess deferrals to be
            returned for any calendar year shall be reduced by any Salary
            Deferral Contributions previously returned to the Participant under
            Section 3.08 for that calendar year. In the event any Salary
            Deferral Contributions returned under this paragraph (c) were
            matched by Matching Contributions under Section 3.03, those Matching
            Contributions, together with Earnings, shall be forfeited and used
            to reduce future Company contributions.

      (d)   If a Participant makes tax-deferred contributions under another
            qualified defined contribution plan maintained by an employer other
            than USFIC or an Affiliated Company for any calendar year, or
            Talegen or any Affiliated Company (with respect to Talegen) for
            calendar 1998, and those contributions when added to his or her
            Salary Deferral Contributions exceed the dollar limitation under
            Section 3.01(b) for that calendar year, the Participant may allocate
            all or a portion of such excess deferrals to this Plan. In that
            event, such excess deferrals, together with Earnings, shall be
            returned to the Participant no later than the April 15th following
            the end of the calendar year in which such excess deferrals were
            made. However, this Plan shall not be required to return excess
            deferrals unless the Participant provides written notification under
            rules and procedures established by the Committee, in writing, by
            March 1 of that following calendar year of the amount of the excess
            deferrals allocated to this Plan. The amount of any such excess
            deferrals to be returned for any calendar year shall be reduced by
            any Salary Deferral Contributions previously returned to the
            Participant under Section 3.08 for that calendar year. In the event
            any Salary Deferral Contributions returned under this paragraph (d)
            were matched by Matching Contributions under Section 3.03, those
            Matching Contributions, together with Earnings, shall be forfeited
            and used to reduce Company contributions.

3.02   AFTER-TAX CONTRIBUTIONS

     Any Participant may make After-Tax Contributions under this Section 3.02
     whether or not he or she has elected to have Salary Deferral Contributions
     made on his or her behalf pursuant to Section 3.01. The amount of After-Tax
     Contributions shall be at least 1 percent and not more than 12 percent (or
     such lower amount as determined under rules and procedures established by
     the Committee) of his or her Compensation while a Participant, in multiples
     of 1 percent, provided, however, that the amount of After-Tax
     Contributions, when combined with Salary Deferral Contributions made for
     the same period, shall not exceed 12 percent of the Participant's
     Compensation. If an election of after-tax contributions was in effect for a
     Participant under the Talegen Plan immediately prior to the Effective Date,
     such election shall be deemed to be his or her election under this Section
     3.02 with respect to the first pay period ending after the Effective Date.
     After the Effective Date, a Participant's election of After-Tax
     Contributions shall become effective with the first payroll period
     beginning on or after the Entry Date on which his or her election is
     received by the Committee. The After-Tax Contributions shall be made
     through payroll deductions and shall be paid to the Trustee as soon as
     practicable.

                                        10
<PAGE>

3.03   MATCHING CONTRIBUTIONS

      (a)   REGULAR MATCHING CONTRIBUTIONS:  The Company shall contribute on
            behalf of each Participant who elects to make Salary Deferral
            Contributions or After-Tax Contributions an amount equal to 50
            percent of the sum of the Salary Deferral Contributions and
            After-Tax Contributions made on behalf of or by the Participant to
            this Plan during each payroll period; provided, however, that, in
            the event that the sum of an individual's Salary Deferral
            Contributions and After-Tax Contributions are in excess of 6 percent
            of the Compensation earned by the Individual during the payroll
            period while the individual was a Participant, then any such excess
            shall be disregarded in determining the amount of the Matching
            Contributions to be made for that individual for that payroll
            period.

      (b)   ADDITIONAL MATCHING CONTRIBUTIONS:  In addition to Regular Matching
            Contributions, the Company may contribute an additional amount for a
            Plan Year, on behalf of each Participant who is its Eligible
            Employee on the last day of the Plan Year, an Additional Matching
            Contribution in such amount (if any) as is determined by the Company
            (in its sole discretion).

      (c)   FORFEITURES AND ALLOCATIONS:  Matching Contributions are made
            expressly conditional on this Plan's satisfying the provisions of
            Sections 3.01, 3.08, 3.09 and 3.10. If any portion of the Salary
            Deferral Contribution or After-Tax Contribution to which the
            Matching Contribution relates is returned to the Participant under
            Sections 3.01, 3.08, 3.09 or 3.10, the corresponding Matching
            Contribution shall be forfeited, and if any amount of the Matching
            Contribution is deemed an excess aggregate contribution under
            Section 3.09, such amount shall be forfeited in accordance with the
            provisions of that Section. All Matching Contributions shall be
            allocated to the Company Accounts of the Participants for whom such
            contributions are made as of the earlier of (i) the date on which
            each such contribution is paid to the Trustee, or (ii) the last day
            of the Plan Year for which such contribution is computed and made;
            provided, however, that all Matching Contributions shall be paid to
            the Trustee as soon as practicable (but not more than 12 months)
            following the end of the Plan Year for which such contributions are
            computed and made.

3.04   BASIC CONTRIBUTIONS

      (a)   REGULAR BASIC CONTRIBUTIONS:  The Company shall make a contribution
            to this Plan as of the end of each Plan Year as follows:

          (i)   For the Plan Years ending December 31, 1998, and December 31,
                1999, with respect to individuals who become Participants on or
                before April 1, 1999, such contribution shall equal 3 percent of
                each such individual's Compensation for the Plan Year while the
                individual was a Participant, provided that such individual
                either (A) is an Eligible Employee on the last day of such Plan
                Year, or (B) separated from service with the Company and all
                Affiliated Companies due to Retirement, death or Disability
                during such Plan Year.

          (ii)   For the Plan Year ending December 31, 1999, with respect to
                 individuals who become Participants after April 1, 1999, and
                 for each Plan Year commencing after December 31, 1999, with
                 respect to all Participants, such contribution shall equal 3
                 percent of each such individual's Compensation for the Plan
                 Year while the individual was an Eligible Employee, provided
                 that such individual either (A) is an Eligible Employee on the
                 last day of such Plan Year, or (B) separated from service with
                 the Company and all Affiliated Companies due to Retirement,
                 death or Disability during such Plan Year.

      (b)   ADDITIONAL BASIC CONTRIBUTIONS:  In addition to Regular Basic
            Contributions, USFIC may direct each Company to contribute an
            additional amount for a Plan Year, on behalf of all Participants who
            are eligible to receive an allocation of the Regular Basic
            Contribution for the Plan Year, as an Additional Basic Contribution
            in such amount (if any) as is determined by USFIC (in its sole
            discretion). Such Additional Basic Contribution shall be allocated
            to eligible Participants in proportion to the Regular Basic
            Contribution made on behalf of each such eligible Participant for
            such Plan Year.

                                        11
<PAGE>

      (c)   BASIC CONTRIBUTIONS DATE:  Basic Contributions shall be contributed
            as soon as practicable following the end of the Plan Year to which
            they relate.

      (d)  TALEGEN PLAN:  In computing the amount of its Basic Contribution for
           the Plan Year ending December 31, 1998, each Company shall take into
           account the Compensation each eligible Participant earned while a
           Participant in this Plan and the Talegen Plan in calendar year 1998.

3.05   ROLLOVER CONTRIBUTIONS

     In accordance with rules and procedures established by the Committee and
     without regard to any limitations on contributions set forth in this
     Article 3, this Plan may receive or refuse to receive from a Participant,
     or an Eligible Employee who has not yet met the eligibility requirements to
     become a Participant, in cash, any amount of $100 or more previously
     received (or deemed to be received) by him or her from another qualified
     plan. This Plan may receive such amount either directly from the
     Participant or Eligible Employee or from a qualified plan in the form of a
     direct rollover. Notwithstanding the foregoing, this Plan shall not accept
     any amount unless such amount is eligible to be rolled over to a qualified
     trust in accordance with applicable law and the Participant or Eligible
     Employee provides satisfactory evidence under rules and procedures as
     established by the Committee that such amount qualifies for rollover
     treatment. Unless received by this Plan in the form of a direct rollover
     from another qualified plan, the Rollover Contribution must be paid to the
     Trustee on or before the 60th day after the day it was received by the
     Participant.

3.06   CHANGE IN CONTRIBUTIONS

     The percentages of Compensation designated by a Participant under Sections
     3.01 and 3.02 shall automatically apply to increases and decreases in his
     or her Compensation. A participant may change his or her election under
     Sections 3.01 and 3.02 once every month by giving such prior notice in such
     manner as the Committee shall prescribe. The changed percentage shall
     become effective as of the first day of the first payroll period of the
     month beginning after the expiration of the notice period.

3.07   SUSPENSION OF CONTRIBUTIONS

      (a)   A Participant may suspend his or her contributions under Section
            3.02 and/or revoke his or her election under Section 3.01 once every
            month by giving prior notice in such manner as the Committee shall
            prescribe. The suspension or revocation shall become effective as of
            the first day of the first payroll period of the month beginning
            after the expiration of the notice period.

      (b)   A Participant who has suspended his or her contributions under
            Section 3.02 may elect to have them resumed in accordance with
            Section 3.02 as of the first day of the first payroll period of the
            month next following prior notice of that intent. A Participant who
            has revoked his or her election under Section 3.01 may apply under
            rules and procedures established by the Committee to resume having
            his or her Compensation reduced in accordance with Section 3.01 as
            of the first day of the first payroll period of the month next
            following the Committee's receipt of prior notice of that intent in
            such manner as it shall prescribe.

3.08   ACTUAL DEFERRAL PERCENTAGE TEST

     The Actual Deferral Percentage for any Plan Year (an "ADP testing year") of
     all Eligible Employees who are Participants or eligible to become
     Participants, and who are Highly Compensated Employees, in such ADP testing
     year ("HCE Participants") shall not exceed the Actual Deferral Percentage
     for the prior Plan Year of all Eligible Employees in such prior Plan Year
     who were Participants or eligible to become Participants, and who were not
     Highly Compensated Employees, in such prior Plan Year ("Non-HCE
     Participants") multiplied by 1.25.

     If the Actual Deferral Percentage for any ADP testing year of all Eligible
     Employees who are HCE Participants in such ADP testing year does not meet
     the foregoing test, the Actual Deferral Percentage for

                                        12
<PAGE>

     such ADP testing year of all Eligible Employees who are HCE Participants in
     such ADP testing year may not exceed the Actual Deferral Percentage for the
     prior Plan Year of all Eligible Employees in such prior Plan Year who were
     Non-HCE Participants in such prior Plan Year by more than two percentage
     points, and the Actual Deferral Percentage for such ADP testing year of all
     Eligible Employees who are HCE Participants in such ADP testing year may
     not be more than 2.0 times the Actual Deferral Percentage for the prior
     Plan Year of all Eligible Employees in such prior Plan Year who were
     Non-HCE Participants in such prior Plan Year (or such lesser amount as
     shall be determined under rules and procedures established by the Committee
     to satisfy the provisions of Section 3.10) (the "ADP Maximum").

     The Committee may establish rules and procedures limiting the Salary
     Deferral Contributions which may be made on behalf of some or all HCE
     Participants so that the limitation under this Section 3.08 is satisfied.
     If, under such rules and procedures, the limitation under this Section 3.08
     has been exceeded in any Plan Year, the following provisions shall apply:

      (a)   The amount of any excess contributions (within the meaning of
            Section 401(k)(8)(B) of the Code) contributed on behalf of any HCE
            Participant, together with any Earnings thereon, shall be
            distributed to the HCE Participant in accordance with Section
            3.08(b). The amount of excess contributions for an HCE Participant
            shall be determined in the following manner:

          (i)   With respect to each HCE Participant whose actual deferral ratio
                exceeds the ADP Maximum, the Committee shall calculate an excess
                contribution amount by calculating the excess of (A) his or her
                Salary Deferral Contributions, over (B) the product of the ADP
                Maximum times his or her Statutory Compensation. The aggregate
                of the excess contribution amounts for all such HCE Participants
                shall be the total excess contribution amount to be distributed
                pursuant to this Section 3.08.

          (ii)   The Salary Deferral Contributions of the HCE Participant with
                 the highest dollar amount of Salary Deferral Contributions
                 taken into account in calculating the Actual Deferral
                 Percentage for the year in which the excess contributions arose
                 shall be reduced to the extent necessary to cause the dollar
                 amount of his or her Salary Deferral Contributions to equal the
                 dollar amount of Salary Deferral Contributions of the HCE
                 Participant with the next highest dollar amount of Salary
                 Deferral Contributions. This process shall be repeated until
                 the total dollar amount of such Salary Deferral Contribution
                 reductions equals the total excess contributions calculated
                 pursuant to paragraph (a)(i) above.

          (iii)  The amount of excess contributions to be distributed to an HCE
                 Participant pursuant to this Section 3.08 shall be equal to the
                 amount which his or her actual Salary Deferral Contributions is
                 reduced under paragraph (a)(ii) above.

      (b)   Salary Deferral Contributions subject to reduction under this
            Section, together with Earnings thereon ("excess contributions"),
            shall be paid to the Participants before the close of the Plan Year
            following the Plan Year in which the excess contributions were made
            and, to the extent practicable, within 2 1/2 months after the close
            of the Plan Year in which the excess contributions were made.
            However, any excess contributions for any Plan Year shall be reduced
            by any Salary Deferral Contributions previously returned to the
            Participant under Section 3.01 for that Plan Year. In the event any
            Salary Deferral Contributions returned under this Section 3.08 were
            matched by Matching Contributions, such corresponding Matching
            Contributions, with Earnings thereon, shall be forfeited and used to
            reduce Company contributions. The Participant may elect, in lieu of
            a return of the excess contributions, to have this Plan treat all or
            a portion of the excess contributions to this Plan as After-Tax
            Contributions for the Plan Year in which the excess contributions
            were made, subject to the limitations of Section 3.02.
            Recharacterized excess contributions shall be considered After-Tax
            Contributions made in the Plan Year to which the excess
            contributions relate for purposes of Section 3.09, but shall be
            subject to the withdrawal provisions applicable to Salary Deferral
            Contributions under Article 7. The Participant's election to
            recharacterize Salary Deferral Contributions shall be made within
            2 1/2 months after the close of the Plan Year in which the excess
            contributions were made, or within such shorter period as the
            Committee may prescribe. In the
                                        13
<PAGE>

            absence of a timely election by the Participant, the excess
            contributions shall be returned as provided in this paragraph (b).

3.09   CONTRIBUTION PERCENTAGE TEST

     The Contribution Percentage for any Plan Year (an "ACP testing year") of
     all Eligible Employees who are HCE Participants in such ACP testing year
     shall not exceed the Contribution Percentage for the prior Plan Year of all
     Eligible Employees in such prior Plan Year who were Non-HCE Participants in
     such prior Plan Year multiplied by 1.25.

     If the Contribution Percentage for any of all Eligible Employees who are
     HCE Participants in such ACP testing year does not meet the foregoing test,
     the Contribution Percentage for such ACP testing year of all Eligible
     Employees who are HCE Participants in such ACP testing year may not exceed
     the Contribution Percentage for the prior Plan Year of all Eligible
     Employees in such prior Plan Year who were Non-HCE Participants in such
     prior Plan Year by more than two percentage points, and the Contribution
     Percentage for such ACP testing year of all Eligible Employees who are HCE
     Participants in such ACP testing year may not be more than 2.0 times the
     Contribution Percentage for the prior Plan Year of all Eligible Employees
     in such prior Plan Year who were Non-HCE Participants in such prior Plan
     Year (or such lesser amount as may be determined under rules and procedures
     established by the Committee to satisfy the provisions of Section 3.10).

     The Committee may establish rules and procedures limiting the After-Tax
     Contributions which may be made by some or all HCE Participants so that the
     limitation under this Section 3.09 is satisfied. If, under such rules and
     procedures, the limitation under this Section 3.09 has been exceeded in any
     Plan Year, the following provisions shall apply:

      (a)   The amount of any excess aggregate contributions (within the meaning
            of Section 401(m)(6)(B) of the Code) contributed on behalf of any
            HCE Participant, together with any Earnings thereon, shall be
            distributed to the HCE Participant in accordance with Sections
            3.09(b) and (c). The amount of excess aggregate contributions for an
            HCE Participant and the Earnings thereon shall be determined in the
            manner provided in Section 3.08, with respect to excess
            contributions.

      (b)   Any After-Tax Contributions and Matching Contributions subject to
            reduction under this Section, together with earnings thereon
            ("excess aggregate contributions"), shall be reduced and allocated
            in the following order:

          (i)   unmatched After-Tax Contributions, to the extent of the excess
                aggregate contributions, together with Earnings, shall be paid
                to the Participant; and then, if necessary,

          (ii)   so much of the matched After-Tax Contributions and
                 corresponding Matching Contributions, together with Earnings,
                 as shall be necessary to meet the test shall be reduced, with
                 the After-Tax Contributions, together with Earnings, being paid
                 to the Participant and the Matching Contributions, together
                 with Earnings, being forfeited and applied to reduce Company
                 contributions; and then, if necessary,

          (iii)  so much of the Matching Contributions, together with Earnings,
                 as shall be necessary to equal the balance of the excess
                 aggregate contributions shall be reduced, with the vested
                 Matching Contributions being paid to the Participant and the
                 Matching Contributions which are forfeitable under this Plan
                 being forfeited and applied to reduce Company contributions.

      (c)   Any repayment or forfeiture of excess aggregate contributions shall
            be made before the close of the Plan Year following the Plan Year
            for which the excess aggregate contributions were made and, to the
            extent practicable, any repayment or forfeiture shall be made within
            2 1/2 months after the close of the Plan Year in which the excess
            aggregate contributions were made.

                                        14
<PAGE>

3.10   AGGREGATE CONTRIBUTION LIMITATION

     Notwithstanding the provisions of Sections 3.08 and 3.09, in no event shall
     the sum of the Actual Deferral Percentage of the group of HCE Participants
     and the Contribution Percentage of such group, after applying the
     provisions of Sections 3.08 and 3.09, exceed the "aggregate limit" as
     provided in Section 401(m)(9) of the Code and the regulations issued
     thereunder. In the event the aggregate limit is exceeded for any Plan Year,
     the Contribution Percentages of the HCE Participants shall be reduced to
     the extent necessary to satisfy the aggregate limit in accordance with the
     procedure set forth in Section 3.09.

3.11   ADDITIONAL DISCRIMINATION TESTING PROVISIONS

      (a)   If any Highly Compensated Employee is a member of another qualified
            plan of the Company or an Affiliated Company, other than an employee
            stock ownership plan described in Section 4975(e)(7) of the Code or
            any other qualified plan which must be mandatorily disaggregated
            under Section 410(b) of the Code, under which salary deferral
            contributions or matching contributions are made on behalf of the
            Highly Compensated Employee or under which the Highly Compensated
            Employee makes after-tax contributions, the Committee shall
            establish rules and procedures, which shall be uniformly applicable
            to all employees similarly situated, to take into account all such
            contributions for the Highly Compensated Employee under all such
            plans in applying the limitations of Sections 3.08, 3.09 and 3.10.
            If any other such qualified plan has a plan year other than the Plan
            Year defined in Section 1.31, the contributions to be taken into
            account in applying the limitations of Sections 3.08, 3.09 and 3.10
            will be those made in the Plan Years ending with or within the same
            calendar year.

      (b)   If this Plan is aggregated with one or more other plans to satisfy
            the requirements of Sections 401(a)(4) and 410(b) of the Code (other
            than for purposes of the average benefit percentage test) or if one
            or more other plans is aggregated with this Plan to satisfy the
            requirements of such sections of the Code, then the provisions of
            Sections 3.08, 3.09 and 3.10 shall be applied by determining the
            Actual Deferral Percentage and Contribution Percentage of employees
            as if all such plans were a single plan. If the Plan is permissively
            aggregated with any other plan or plans for purposes of satisfying
            the provisions of Section 401(k)(3) of the Code, the aggregated
            plans must also satisfy the provisions of Sections 401(a)(4) and
            410(b) of the Code as if they were a single plan. However, plans may
            be aggregated under this paragraph (b) only if they have the same
            plan year.

      (c)   If this Plan is disaggregated for purposes of satisfying the
            provisions of Sections 401(a)(4) and 410(b) of the Code, this Plan
            shall satisfy such provisions as if the portion of this Plan that is
            disaggregated were a separate plan.

      (d)   Under rules and procedures established by the Committee, Salary
            Deferral Contributions may be used to satisfy the tests described in
            Sections 3.09 and 3.10, provided that the test described in Section
            3.08 is met prior to such election, and continues to be met
            following the election to shift the application of those Salary
            Deferral Contributions from Section 3.08 to Section 3.09.

      (e)   Under rules and procedures established by the Committee, Basic
            Contributions made under Section 3.04(a) may be used as special
            "qualified nonelective contributions" to satisfy the tests described
            in Sections 3.08, 3.09 and 3.10, where necessary.

3.12   MAXIMUM ANNUAL ADDITIONS

      (a)   The annual addition to a Participant's Accounts for any Plan Year,
            which shall be considered the "limitation year" for purposes of
            Section 415 of the Code, when added to the Participant's annual
            addition for that Plan Year under any other qualified defined
            contribution plan of the Company or an Affiliated Company, shall not
            exceed an amount which is equal to the lesser of (i) 25 percent of
            his or her aggregate remuneration for that Plan Year, or (ii)
            $30,000 (as adjusted pursuant to Section 415(d) of the Code).

                                        15
<PAGE>

      (b)   For purposes of this Section, the "annual addition" to a
            Participant's Accounts under this Plan or any other qualified
            defined contribution plan maintained by the Company or an Affiliated
            Company shall be the sum of:

          (i)   the total contributions, including Salary Deferral
                Contributions, made on the Participant's behalf by the Company
                and all Affiliated Companies,

          (ii)   all Participant contributions, exclusive of any Rollover
                 Contributions, and

          (iii)  forfeitures, if applicable,

         that have been allocated to the Participant's Accounts under this Plan
         or his or her accounts under any other such qualified defined
         contribution plan. For purposes of this paragraph (b), any Salary
         Deferral Contributions distributed under Section 3.08 and any Matching
         Contributions or After-Tax Contributions distributed or forfeited under
         the provisions of Sections 3.01, 3.08, 3.09 or 3.10 shall be included
         in the annual addition for the year allocated.

      (c)   For purposes of this Section, the term "remuneration" with respect
            to any Participant shall mean the wages, salaries and other amounts
            paid in respect of that Participant by the Company or an Affiliated
            Company, or by Talegen or any Affiliated Company (with respect to
            Talegen) in calendar 1998, for personal services actually rendered,
            determined before any reduction of Compensation pursuant to Section
            3.01 or pursuant to a cafeteria plan as described in Section 125 of
            the Code, including (but not limited to) bonuses, overtime payments
            and commissions, but excluding deferred compensation, stock options
            and other distributions which receive special tax benefits under the
            Code.

      (d)   If the annual addition to a Participant's Accounts for any Plan
            Year, prior to the application of the limitation set forth in
            paragraph (a) above, exceeds that limitation due to a reasonable
            error in estimating a Participant's annual compensation or in
            determining the amount of Salary Deferral Contributions that may be
            made with respect to a Participant under Section 415 of the Code, or
            as the result of the allocation of forfeitures, the amount of
            contributions credited to the Participant's Accounts in that Plan
            Year shall be adjusted to the extent necessary to satisfy that
            limitation in accordance with the following order of priority:

          (i)   The Participant's unmatched After-Tax Contributions under
                Section 3.02 shall be reduced to the extent necessary. The
                amount of the reduction shall be returned to the Participant,
                together with any earnings on the contributions to be returned.

          (ii)   The Participant's unmatched Salary Deferral Contributions under
                 Section 3.01 shall be reduced to the extent necessary. The
                 amount of the reduction shall be returned to the Participant,
                 together with any earnings on the contributions to be returned.

          (iii)  The Participant's matched After-Tax Contributions and
                 corresponding Matching Contributions shall be reduced to the
                 extent necessary. The amount of the reduction attributable to
                 the Participant's matched After-Tax Contributions shall be
                 returned to the Participant, together with any earnings on
                 those contributions to be returned, and the amount attributable
                 to the Matching Contributions shall be forfeited and used to
                 reduce subsequent contributions payable by the Company.

          (iv)  The Participant's matched Salary Deferral Contributions and
                corresponding Matching Contributions shall be reduced to the
                extent necessary. The amount of the reduction attributable to
                the Participant's matched Salary Deferral Contributions shall be
                returned to the Participant, together with any earnings on those
                contributions to be returned, and the amount attributable to the
                Matching Contributions shall be forfeited and used to reduce
                subsequent contributions payable by the Company.

         Any Salary Deferral Contributions returned to a Participant under this
         paragraph (d) shall be disregarded in applying the dollar limitation on
         Salary Deferral Contributions under Sec-

                                        16
<PAGE>

         tion 3.01(b), and in performing the Actual Deferral Percentage Test
         under Section 3.08. Any After-Tax Contributions returned under this
         paragraph (d) shall be disregarded in performing the Contribution
         Percentage Test under Section 3.09.

     (e)   Effective until January 1, 2000, if any Participant participates in
           this Plan and participates or has participated in any defined benefit
           plan sponsored by the Company or an Affiliated Company, the sum of
           his or her defined benefit plan fraction (as defined in Section
           415(e)(2) of the Code) and his or her defined contribution fraction
           (as defined in Section 415(e)(3) of the Code) shall not exceed 1.0.
           In any limitation year in which the Participant would exceed the
           foregoing 1.0 limitation, such limitation shall be met for such year
           by first reducing the annual addition to this Plan.

3.13   RETURN OF CONTRIBUTIONS

      (a)   If all or part of the Company's deductions for contributions to this
            Plan are disallowed by the Internal Revenue Service, the portion of
            the contributions to which that disallowance applies shall be
            returned to the Company without interest but reduced by any
            investment loss attributable to those contributions, provided that
            the contribution is returned within one year after the disallowance
            of deduction. For this purpose, all contributions made by the
            Company are expressly declared to be conditioned upon their
            deductibility under Section 404 of the Code.

      (b)   The Company may recover, without interest, the amount of its
            contributions to this Plan made on account of a mistake of fact,
            reduced by any investment loss attributable to those contributions,
            if recovery is made within one year after the date of those
            contributions.

      (c)   In the event that Salary Deferral Contributions made under Section
            3.01 are returned to the Company in accordance with the provisions
            of this Section 3.13, the elections to reduce Compensation, which
            were made by Participants on whose behalf those contributions were
            made shall be void retroactively to the beginning of the period for
            which those contributions were made. The Salary Deferral
            Contributions so returned shall be distributed in cash to those
            Participants for whom those contributions were made; provided,
            however, that if the contributions are returned under the provisions
            of paragraph (a) above, the amount of Salary Deferral Contributions
            to be distributed to Participants shall be adjusted to reflect any
            investment gains or losses attributable to those contributions.

3.14   CERTAIN CONTRIBUTIONS NOT CONTINGENT UPON PROFITS

     The Company may make Contributions to this Plan without regard to the
     existence or the amount of Profits. Notwithstanding the foregoing, however,
     this Plan is designed to qualify as a "profit-sharing plan" for all
     purposes of the Code.

                                   ARTICLE 4.
                          INVESTMENT OF CONTRIBUTIONS

4.01   INVESTMENT FUNDS

      (a)   Contributions to this Plan shall be invested in one or more
            Investment Funds, as authorized by the Finance Committee, which from
            time to rime may include money market, fixed income, equity,
            insurance contract and employer stock funds or any other funds. At
            least three of the Investment Funds shall be diversified, have
            materially different risk and return characteristics, and otherwise
            be designed to comprise a broad range of investment alternatives as
            described under Section 404(c) of ERISA.

      (b)   The Trustee may keep such amounts of cash as it, in its sole
            discretion, shall deem necessary or advisable as part of the Funds,
            all within the limitations specified in the trust agreement.

                                        17
<PAGE>

      (c)   Dividends, interest, and other distributions received on the assets
            held by the Trustee in respect to each of the above Funds shall be
            reinvested in the respective Fund.

      (d)   This Plan may acquire, hold, and dispose of any "qualifying employer
            security" within the meaning of Section 407(d)(5) of ERISA, subject
            to and in accordance with all applicable requirements of ERISA and
            the Code and regulations promulgated thereunder. For purposes of
            ERISA Section 404(c) and U.S. Department of Labor regulations
            promulgated thereunder as set forth in 29 CFR
            sec. 2550.404c-1(d)(2)(ii)(E)(4)(viii) and (ix), the Committee shall
            be responsible for ensuring that the procedures required under 29
            CFR sec. 2550.404c-1(d)(2)(ii)(E)(4)(vii) are sufficient to
            safeguard the confidentiality of information described in such
            regulation, such procedures are being followed, and the independent
            fiduciary required by 29 CFR sec. 2550.404c-1(d)(2)(ii)(E)(4)(ix) is
            appointed.

      (e)   The Finance Committee may from time to time establish such rules
            governing the investment of amounts in Investment Funds (including
            but not limited to any restrictions on the specific Investment Funds
            permitted under this Plan or on the amount of new contributions by
            Participants to, or the transfer by Participants of amounts in their
            Accounts among, any particular Investment Funds) as it determines
            are necessary or appropriate.

4.02   INVESTMENT OF PARTICIPANTS' ACCOUNTS

     Each Participant shall make an investment election investing his or her
     Accounts in multiples of 1 percent in one or more than one of the available
     Investment Funds.

4.03   RESPONSIBILITY FOR INVESTMENTS

     Each Participant is solely responsible for the selection of his or her
     investment options. The Trustee, the Committee, the Company, and the
     officers, supervisors and other employees of the Company are not empowered
     to advise a Participant as to the manner in which his or her Accounts shall
     be invested. The fact that an Investment Fund is available to Participants
     for investment under this Plan shall not be construed as a recommendation
     for investment in that Investment Fund.

4.04   CHANGE OF ELECTION

     A Participant may change his or her investment election under Section 4.02
     daily by giving prior notice in such manner as the Committee shall
     prescribe. The changed investment election shall become effective after the
     expiration of the notice period, and shall be effective only with respect
     to subsequent contributions.

4.05   REALLOCATION OF ACCOUNTS AMONG THE FUNDS

     A Participant may elect to reallocate his or her Accounts among the
     Investment Funds, in multiples of 1 percent, by giving prior notice in such
     manner as the Committee shall prescribe. The reallocation shall be
     effective after the expiration of the notice period.

4.06   LIMITATIONS IMPOSED BY CONTRACT

     Notwithstanding anything in this Article 4 to the contrary, any
     contributions invested in a guaranteed investment contract shall be subject
     to any limitations placed on the exercise of any rights otherwise granted
     to a Participant under any other provisions of this Article 4 with respect
     to such contributions.

                                        18
<PAGE>

                                   ARTICLE 5.
                           VALUATION OF THE ACCOUNTS

5.01   VALUATION OF THE INVESTMENT FUNDS

     The Trustee shall value the Investment Funds at least monthly. On each
     Valuation Date there shall be allocated to the Accounts of each Participant
     his or her proportionate share of the increase or decrease in the fair
     market value of his or her Accounts in each of the Funds. Whenever an event
     requires a determination of the value of the Participant's Accounts, the
     value shall be computed as of the Valuation Date coincident with or
     immediately following the date of determination, subject to the provisions
     of Section 5.02.

5.02   RIGHT TO CHANGE PROCEDURES

     The Committee reserves the right to change from time to time the procedures
     used in calculating the Accounts or crediting (or debiting) the Accounts if
     it is determined under rules and procedures established by the Committee
     and upon the advice of counsel and/or the current record keeper, that such
     an action is justified in that it results in a more accurate reflection of
     the fair market value of assets. In the event of a conflict between the
     provisions of this Article 5 and such new administrative procedures, those
     new administrative procedures shall prevail.

5.03   STATEMENT OF ACCOUNTS

     At least once each calendar quarter, each Participant shall be furnished
     with a statement setting forth the value of his or her Accounts and the
     Vested Portion of his or her Accounts.

                                   ARTICLE 6.
                           VESTED PORTION OF ACCOUNTS

6.01   AFTER-TAX ACCOUNT, PRE-TAX ACCOUNT, AND ROLLOVER ACCOUNT

     Each Participant shall at all times be 100 percent vested in, and have a
     nonforfeitable right to, his or her After-Tax Account, his or her Pre-Tax
     Account and his or her Rollover Account.

6.02   COMPANY ACCOUNT

      (a)   A Participant who was employed by the Company or an Affiliated
            Company prior to July 1, 1993, shall be 100 percent vested in, and
            have a nonforfeitable right to, his or her Company Account. An
            individual who was both an Eligible Employee of the Company or an
            Affiliated Company and a Participant at any time during the period
            beginning on April 1, 1997, and ending on August 13, 1998 (including
            an Eligible Employee who became a Participant on August 13, 1998),
            shall be 100 percent vested in, and have a nonforfeitable right to,
            his or her Company Account. An individual Eligible Employee who (1)
            was employed by the Company or an Affiliated Company on or after
            July 1, 1993, and (2) was an Eligible Employee of the Company or an
            Affiliated Company but was not a Participant on August 13, 1998,
            shall be 100 percent vested in, and have a nonforfeitable right to,
            his or her Company Account when such Eligible Employee becomes a
            Participant in accordance with Section 2.01. Except as set forth in
            paragraph (c) below, any other individual who becomes a Participant
            after August 13, 1998, shall be vested in and have a nonforfeitable
            right to, his or her Company Account in accordance with the
            following:

          (i)   The Participant shall be 100 percent vested in, and have a
                nonforfeitable and immediate right to, the portion of his or her
                Company Account attributable to Company contributions made under
                Section 3.04.

                                        19
<PAGE>

          (ii)   The Participant shall be vested in, and have a nonforfeitable
                 right to, the portion of his or her Company Account
                 attributable to Matching Contributions made under Section 3.03
                 based on the following vesting schedule:

<Table>
<Caption>
                                                                VESTED
YEARS OF VESTING SERVICE                                      PERCENTAGE
------------------------                                      ----------
<S>                                                           <C>
Less than one...............................................       0%
One but less than two.......................................      20%
Two but less than three.....................................      40%
Three but less than four....................................      60%
Four but less than five.....................................      80%
Five or more................................................     100%
</Table>

      (b)   Notwithstanding the foregoing, a Participant shall be 100 percent
            vested in, and have a nonforfeitable right to, his or her Accounts
            upon death, Disability, Retirement, or the attainment of his or her
            65th birthday.

      (c)   Each individual employed by the Company as an Eligible Employee who
            became a Participant under Section 2.06 shall be 100 percent vested
            in, and have a nonforfeitable right to, his or her Company Account.

6.03   DISPOSITION OF FORFEITURES

      (a)   Upon termination of employment of a Participant who was not fully
            vested in his or her Company Account, the nonvested portion of his
            or her Company Account shall not be forfeited until the Participant
            has a period of Break in Service of five years or receives a
            distribution of the Vested Portion of his or her Accounts, if
            earlier. If the former Participant is not reemployed by the Company
            or an Affiliated Company before he or she has a period of Break in
            Service of five years or receives such a distribution, the nonvested
            portion of his or her Company Account shall be forfeited. Any
            amounts forfeited pursuant to this paragraph (a) shall be applied to
            reduce Company contributions. If the amount of the Vested Portion of
            a Participant's Company Account at the time of his or her
            termination of employment is zero, the Participant shall be deemed
            to have received a distribution of such zero vested benefit.

      (b)   If an amount of a Participant's Company Account has been forfeited
            in accordance with paragraph (a) above, that amount shall be
            subsequently restored to the Participant's Company Account, provided
            that (i) he or she is reemployed by the Company or an Affiliated
            Company before he or she has a period of Break in Service of five
            years and (ii) he or she repays to this Plan during his or her
            period of reemployment and within five years of his or her date of
            reemployment an amount in cash equal to the full amount distributed
            to him or her from this Plan on account of his or her termination of
            employment, other than the amounts attributable to unmatched
            After-Tax Contributions made under Section 3.02 and Rollover
            Contributions made under Section 3.05; provided, however,that he or
            she may elect to repay to this Plan all or part of those amounts as
            well. Repayment shall be made in one lump sum.

      (c)   In the event that any amounts to be restored by the Company to a
            Participant's Company Account have been forfeited under paragraph
            (a) above, those amounts shall be taken first from any forfeitures
            which have not as yet been applied against Company contributions,
            and if any amounts remain to be restored, the Company shall make a
            special Company contribution equal to those amounts.

      (d)   A repayment shall be invested in the available Investment Funds as
            the Participant elects at the time of repayment.

                                        20
<PAGE>

6.04   VESTING AFTER ACCOUNT RESTORATION

     If a reemployed Participant received a distribution from his or her Company
     Account as the result of a prior termination of his or her employment, any
     amount that is restored pursuant to Section 6.03 shall be credited to a
     separate subaccount for the Member (a "Restored Account"). The vested
     percentage of a Participant's interest in his or her Restored Account after
     reemployment shall not be less than the amount computed as follows:

                    Vested percentage = (C - D) / (100% - D)

     For purposes of applying this formula at any time, "C" is the Participant's
     current vested percentage under Section 6.02(a)(ii), and "D" is his or her
     vested percentage under Section 6.02(a)(ii) as of the date the prior
     distribution was made, unless the Participant received less than the entire
     vested balance credited to the portion of his or her Company Account
     attributable to Regular Matching Contributions made under Section 3.03(a),
     in which case "D" is the percentage of such portion of that Account that
     was previously distributed.

6.05   VESTING SCHEDULE AMENDMENT

     If the vested percentage of any Participant who is credited with at least
     three years of Service would be reduced as the result of an amendment to
     Section 6.02(a), then each such Participant may elect, within a reasonable
     time after the amendment is adopted, to have his or her vested percentage
     determined under this Plan without regard to the amendment. The period
     during which the election may be made shall begin on the date the amendment
     is adopted and shall end on the later of (a) 60 days after such date, (b)
     60 days after the amendment becomes effective, or (c) 60 days after written
     notice of the amendment is issued to the Participant.

                                   ARTICLE 7.
                        WITHDRAWALS WHILE STILL EMPLOYED

7.01   WITHDRAWAL OF AFTER-TAX CONTRIBUTIONS

     Participant may, subject to Section 7.06, elect to withdraw all or part of
     his or her After-Tax Account, excluding matched After-Tax Contributions
     made to this Plan within the 24-month period preceding the date of the
     withdrawal; provided, however, that, in the event a Participant contributed
     more than 6 percent of Compensation under Sections 3.01 and 3.02 for a
     payroll period, then for purposes of the 24-month restriction, the
     Participant's Salary Deferral Contributions under Section 3.01 shall be
     deemed to have been matched first.

7.02   WITHDRAWAL OF ROLLOVER CONTRIBUTIONS

     A Participant may, subject to Section 7.06, elect to withdraw all or part
     of his or her Rollover Account attributable to Rollover Contributions.

7.03   WITHDRAWAL OF COMPANY CONTRIBUTIONS

      (a)   A Participant who has withdrawn the total amount available for
            withdrawal under Section 7.01 may, subject to Section 7.06, elect to
            withdraw all or part of the Vested Portion of his or her Company
            Account attributable to (i) contributions made before July 1, 1993
            and (ii) Matching Contributions made pursuant to Section 3.03 on or
            after June 30, 1993 which have been credited to his or her Company
            Account for at least 24 months.

      (b)   Notwithstanding the foregoing, a Participant may not elect to
            withdraw any portion of his or her Company Account attributable to
            Company contributions made under Section 3.04.

                                        21
<PAGE>

7.04   WITHDRAWAL AFTER AGE 59 1/2

     A Participant who has withdrawn the total amount available for withdrawal
     under Section 7.01 and who shall have attained age 59 1/2 as of the
     effective date of any withdrawal pursuant to this Section may, subject to
     Section 7.06, elect to withdraw all or part of his or her Pre-Tax,
     After-Tax and Rollover Accounts, and all or part of the Vested Portion of
     his or her Company Account.

7.05   HARDSHIP WITHDRAWAL

      (a)   A Participant who has withdrawn the total amount available for
            withdrawal under the preceding Sections of this Article 7 may,
            subject to Section 7.06, elect to withdraw all or part of the Salary
            Deferral Contributions made on his or her behalf to his or her
            Pre-Tax Account, and earnings credited on that Account prior to
            January 1, 1989, upon furnishing proof of Hardship satisfactory
            under rules and procedures established by the Committee.
            Notwithstanding the foregoing, a Participant who has already taken a
            withdrawal under Sections 7.01 through 7.04 in a given six-month
            period shall, for the purposes of this Section 7.05, be permitted to
            withdraw the remaining amount available under Sections 7.01 through
            7.04 prior to withdrawing amounts from his or her Pre-Tax Account.

      (b)   A Participant shall be considered to have incurred a "Hardship" if,
            and only if, he or she meets the requirements of paragraphs (c) and
            (d) below.

      (c)   As a condition for Hardship, there must exist with respect to the
            Participant an immediate and heavy need to draw upon his or her
            Pre-Tax Account. The existence of such immediate and heavy need
            shall be presumed if the requested withdrawal is on account of any
            of the following:

          (i)   expenses for medical care described in Section 213(d) of the
                Code previously incurred by the Participant, his or her spouse
                or any of his or her dependents (as defined in Section 152 of
                the Code) or necessary for those individuals to obtain such
                medical care;

          (ii)   costs directly related to the purchase of a principal residence
                 of the Participant (excluding mortgage payments);

          (iii)  payment of tuition and related educational fees for the next 12
                 months of postsecondary education of the Participant, his or
                 her spouse or dependents;

          (iv)  payment of amounts necessary to prevent eviction of the
                Participant from his or her principal residence or to avoid
                foreclosure on the mortgage of his or her principal residence;
                or

          (v)   the inability of the Participant to meet such other expenses,
                debts or other obligations recognized by the Internal Revenue
                Service as giving rise to immediate and heavy financial need for
                purposes of Section 401(k) of the Code.

         The amount of withdrawal may not be in excess of the amount of the
         immediate and heavy financial need of the Participant, including any
         amounts necessary to pay any federal, state or local income taxes and
         any amounts necessary to pay any penalties reasonably anticipated to
         result from the distribution. The relevant facts and circumstances
         shall be evaluated in a nondiscriminatory fashion and Participants who
         are similarly situated shall be treated uniformly in accordance with
         rules and procedures established by the Committee. The Participant
         shall furnish such supporting documents as are requested in accordance
         with uniform and nondiscriminatory rules prescribed by the Committee.

      (d)   As a condition for Hardship, the Participant must demonstrate that
            the requested withdrawal is necessary to satisfy the financial need
            described in paragraph (c) above. To demonstrate such necessity, the
            Participant who requests a hardship withdrawal to satisfy a
            financial need described in paragraph (c) above must request, under
            such rules and procedures as the Committee may prescribe, that the
            determination of the necessity for the withdrawal be made solely on
            the basis of his or her application, provided that all of the
            following requirements are met:

                                        22
<PAGE>

          (i)   the Participant has obtained all distributions, other than
                distributions available only on account of hardship, and all
                nontaxable loans currently available under all plans of the
                Company and Affiliated Companies;

          (ii)   the Participant is prohibited from making Salary Deferral
                 Contributions and After-Tax Contributions to this Plan and all
                 other plans of the Company and Affiliated Companies under the
                 terms of such plans or by means of an otherwise legally
                 enforceable agreement for at least 12 months after receipt of
                 the distribution; provided, however, that the phrase "all other
                 plans of the Company and Affiliated Companies" shall include
                 stock option plans, stock purchase plans, qualified and
                 nonqualified deferred compensation plans and such other plans
                 as may be designated under regulations issued under Section
                 401(k) of the Code, but shall not include health and welfare
                 benefit plans or the mandatory employee contribution portion of
                 a defined benefit plan; and

          (iii)  the limitation described in Section 3.01(b) under all plans of
                 the Company and Affiliated Companies for the calendar year
                 following the year in which the withdrawal is made must be
                 reduced by the Participant's elective deferral made in the
                 calendar year of the distribution for Hardship.

7.06   PROCEDURES AND RESTRICTIONS

     To make a withdrawal, a Participant shall give such prior notice as the
     Committee shall prescribe. A withdrawal shall be made as of the Valuation
     Date next following the expiration of the notice period. The minimum
     withdrawal under Sections 7.01 through 7.04 shall be $300, and the minimum
     withdrawal under Section 7.05 shall be $500. A Hardship withdrawal request
     under Section 7.05 may be made at any time, but no more than one withdrawal
     under Sections 7.01 through 7.04 can be made in any six-month period. If a
     loan and a hardship withdrawal are processed as of the Valuation Date, the
     amount available for the hardship withdrawal will equal the Vested Portion
     of the Participant's Accounts on such Valuation Date reduced by the amount
     of the loan. The amount of the withdrawal shall be allocated pro rata among
     all of the Participant's Investment Funds in the same proportion as the
     amount in each respective Investment Fund bears to the aggregate amount in
     all Investment Funds. Subject to the provisions of Section 9.08, all
     payments to Participants under this Article shall be made in cash as soon
     as practicable. In the event a married Participant has elected an annuity
     under Section 9.02(a)(ii) at the time the withdrawal is to be made, the
     withdrawal election shall not be effective unless Spousal Consent to the
     election is obtained.

                                   ARTICLE 8.
                             LOANS TO PARTICIPANTS

8.01   AMOUNT AVAILABLE

      (a)   A Participant who is employed by the Company or an Affiliated
            Company may borrow, on written application and on approval under
            such uniform rules and procedures as the Committee shall establish,
            an amount which, when added to the outstanding balance of any other
            loans to the Participant from this Plan (including any outstanding
            defaulted loans, plus interest thereon), does not exceed the lesser
            of:

          (i)   50 percent of the Vested Portion of his or her Accounts, or

          (ii)   $50,000 reduced by the excess, if any, of (A) the highest
                 outstanding balance of loans to the Participant from this Plan
                 during the one year period ending on the day before the day the
                 loan is made, over (B) the outstanding balance of loans to the
                 Participant from this Plan on the date on which the loan is
                 made.

      (b)   The interest rate to be charged on loans shall be determined at the
            time of the loan application and shall be a reasonable rate as
            determined in accordance with rules and procedures established by
            the

                                        23
<PAGE>

            Committee from time to time. The interest rate so determined for
            purposes of this Plan shall be fixed for the duration of each loan.

      (c)   The amount of the loan is to be transferred from the Investment
            Funds in which the Participant's Accounts are invested to a special
            "Loan Fund" for the Participant under this Plan. The Loan Fund
            consists solely of the amount transferred to the Loan Fund and is
            invested solely in the loan made to the Participant. The amount
            transferred to the Loan Fund shall be pledged as security for the
            loan. Payments of principal on the loan will reduce the amount held
            in the Participant's Loan Fund. Those payments, together with the
            attendant interest payment, will be reinvested in the Investment
            Funds in accordance with the Participant's then effective investment
            election.

      (d)   Participant loans transferred from the Talegen Plan to this Plan, in
            connection with the spin off of account balances from the Talegen
            Plan and their merger with and into this Plan (as described in the
            Introduction to this Plan), shall be treated for all purposes of
            this Article 8 as having been loans made under this Plan, provided
            that the transfer of such loans to this Plan shall have no effect
            upon loan origination date or repayment period.

8.02   TERMS

      (a)   In addition to such rules and regulations as the Committee may
            adopt, all loans shall comply with the following terms and
            conditions:

          (i)   The approval or disapproval of an application for a loan by a
                Participant shall be final.

          (ii)   Each loan shall be evidenced by a promissory note payable to
                 this Plan.

          (iii)  The period of repayment for any loan shall be arrived at by
                 mutual agreement, but that period shall not exceed five years
                 unless the loan is to be used to acquire the principal
                 residence of the Participant, in which case the repayment
                 period shall not exceed ten years.

          (iv)  Payments of principal and interest will be made by payroll
                deductions or in another mutually agreed manner in substantially
                level amounts, but no less frequently than monthly, in an amount
                sufficient to amortize the loan over the repayment period.

          (v)   A loan may be prepaid in full as of any date without penalty.

          (vi)  Only three loans may be outstanding at any given time and only
                one of those loans may be made for a term of more than five
                years.

          (vii) If at the time the loan is made a Participant has or previously
                had in effect an election of an annuity under Section
                9.02(a)(ii), Spousal Consent to the application for the loan
                must be obtained within the 90-day period prior to the date the
                Participant's Accounts will be used as security for the loan if
                the value of the Participant's Accounts exceeds $5,000 (or, for
                loans made before October 17, 2000, exceeded $5,000 at the time
                of any prior withdrawal or distribution from his or her
                Accounts).

          (viii) The minimum amount of a loan shall be $500.

      (b)   If a loan is not repaid in accordance with the terms contained in
            the promissory note and a default occurs, this Plan may execute upon
            its security interest in the Participant's Accounts under this Plan
            to satisfy the debt; provided, however, that this Plan shall not
            levy against any portion of the Loan Fund attributable to amounts
            held in the Participant's Pre-Tax Account or Company Account until
            such time as a distribution of the Pre-Tax Account or Company
            Account could otherwise be made under this Plan.

      (c)   Any additional rules or restrictions as may be necessary to
            implement and administer the loan program shall be in writing and
            communicated to employees. Such further documentation is hereby
            incorporated into this Plan by reference, and the Committee is
            hereby authorized to make such revisions to these rules as it deems
            necessary or appropriate, on the advice of counsel.

                                        24
<PAGE>

      (d)   To the extent required by law and under such rules as the Committee
            shall adopt, loans shall also be made available on a reasonably
            equivalent basis to any Beneficiary or former Employee (i) who
            maintains an account balance under this Plan and (ii) who is still a
            party in interest (within the meaning of Section 3(14) of ERISA).

                                   ARTICLE 9.
            DISTRIBUTION OF ACCOUNTS UPON TERMINATION OF EMPLOYMENT

9.01   ELIGIBILITY

     Upon a Participant's separation from service with the Company and all
     Affiliated Companies, the Vested Portion of his or her accounts, as
     determined under Article 6, shall be distributed as provided in this
     Article 9.

     Notwithstanding the foregoing, a Participant shall not be considered to
     have incurred a separation from service if

      (a)   his or her employment with the Company and all Affiliated Companies
            terminates in connection with any disposition by the Company or an
            Affiliated Company to an entity of assets used by the Company or
            Affiliated Company in a trade or business,

      (b)   the entity acquiring such assets adopts this Plan, or this Plan is
            merged or consolidated with, or any assets or liabilities with
            respect to such Participant are transferred from this Plan to, a
            plan maintained by such entity in a transaction subject to Section
            414(l)(1) of the Code, and

      (c)   such Participant becomes a common law employee of such entity in
            connection with such disposition.

     In such event, the Participant's right to a distribution of the Vested
     Portion of his or her accounts shall be determined under the terms and
     conditions of the plan maintained by such entity.

9.02   FORMS OF DISTRIBUTION

      (a)   Unless the Participant elects otherwise, distribution of the Vested
            Portion of his or her Accounts shall be made in a cash lump sum. A
            Participant may elect, in such manner as the Committee shall
            prescribe, to receive an optional form of benefit described below:

          (i)   Payments in approximately equal quarterly or annual installments
                over a period, designated by the Participant, not to exceed the
                life expectancy of the last to survive of the Participant and
                his or her Beneficiary. In the event that the Participant dies
                before all installments have been paid, the remaining balance in
                his or her Accounts shall be paid in an immediate cash lump sum
                to his or her Beneficiary.

          (ii)   The purchase of an immediate nonforfeitable fixed annuity,
                 provided that if the Participant who has elected to have such
                 an annuity distributed in the form of a life annuity is married
                 on his or her Annuity Starting Date, and if he or she has not
                 elected otherwise, such annuity shall be in the form of a
                 Qualified Joint and Survivor Annuity, subject to the following
                 rules:

               (A)  Such Participant may elect, during the 90-day period
                    preceding his or her Annuity Starting Date, not to take the
                    Qualified Joint and Survivor Annuity and to take instead
                    another form of annuity. Elections under this clause (ii)
                    shall be in writing and shall be subject to obtaining
                    Spousal Consent to that election.

               (B)  Each Participant who has elected an annuity shall be
                    furnished, no less than 30 days nor more than 90 days before
                    his or her Annuity Starting Date, a written explanation of
                    the Qualified Joint and Survivor Annuity in accordance with
                    applicable law. Such Participant may elect (with any
                    applicable spousal consent) to waive any requirement that
                    such written explanation be provided at least 30 days before
                    the Annuity Starting
                                        25
<PAGE>

                    Date, if the distribution commences more than 7 days after
                    such explanation is provided.

               (C)  Such written explanation shall provide:

                    (1)   the terms and conditions of the Qualified Joint and
                          Survivor Annuity in accordance with Section
                          9.02(a)(ii),

                    (2)   the Participant's right to make and the effect of an
                          election to waive the Qualified Joint and Survivor
                          Annuity,

                    (3)   the rights of the Participant's Spouse,

                    (4)   the right to make, and the effect of, a revocation of
                          a previous election to waive the Qualified Joint and
                          Survivor Annuity, and

                    (5)   a description of the optional forms available under
                          this Plan.

               (D)  A Participant may revoke his or her election and make a new
                    election from time to time and at any time during the
                    aforesaid election period.

               (E)   If the annuity form selected is not a Qualified Joint and
                     Survivor Annuity with the Participant's spouse as the sole
                     Beneficiary, the annuity payable to the Participant and
                     thereafter to his or her Beneficiary shall be subject to
                     the incidental death benefit rule as described in Section
                     401(a)(9)(G) of the Code.

      (b)   Notwithstanding the preceding, if a Participant dies before his or
            her benefits commence, the Vested Portion of his or her Accounts
            shall be paid to his or her Beneficiary in a lump sum. However, if a
            Participant has elected an annuity under Section 9.02(a)(ii),
            payments under such annuity have not commenced, and his or her
            spouse is his or her Beneficiary, payment shall be made in the form
            of a life annuity to his or her spouse unless the spouse elects a
            cash lump sum.

      (c)   All distributions of a Participant's Vested Portion of his or her
            Accounts shall be made in the form of cash; no in-kind distributions
            shall be permitted.

9.03   COMMENCEMENT OF PAYMENTS

      (a)   Except as otherwise provided in this Article 9, distribution of the
            Vested Portion of a Participant's Accounts shall commence as soon as
            administratively practicable following the later of (i) the
            Participant's termination of employment, or (ii) the Participant's
            65th birthday (but not more than 60 days after the close of the Plan
            Year in which the later of (i) or (ii) occurs).

      (b)   In lieu of a distribution as described in paragraph (a) above, a
            Participant may, in accordance with such procedures as the Committee
            shall prescribe, elect to have the distribution of the Vested
            Portion of his or her Accounts commence as of any Valuation Date
            coincident with or following his or her termination of employment
            which is before the date described in paragraph (a) above.

      (c)   In the case of the death of a Participant before his or her benefits
            commence, the Vested Portion of his or her Accounts shall be
            distributed to his or her Beneficiary as soon as administratively
            practicable following the Participant's date of death.

9.04   AGE 70 1/2 REQUIRED DISTRIBUTIONS

      (a)   In no event shall the provisions of this Article 9 operate so as to
            allow the distribution of a Participant's Accounts to begin later
            than the April 1 following the later of (i) the calendar year in
            which he or she attains age 70 1/2, or (ii) the calendar year in
            which his Retirement occurs (the "required beginning date");
            provided that the foregoing clause (ii) shall not apply with respect
            to any Participant who owns more than 5 percent of the outstanding
            stock of the Company (or stock possessing more than 5 percent of the
            total combined voting power of all stock of the Company) with
            respect to the Plan Year in which the Participant attains age
            70 1/2.
                                        26
<PAGE>

      (b)   In the event a Participant is required to begin receiving payments
            while in service under the provisions of paragraph (a) above, the
            Participant may elect to receive payments while in service in
            accordance with option (i) or (ii), as follows:

          (i)   A Participant may receive one lump sum payment on or before the
                Participant's required beginning date equal to his or her entire
                Account balance and annual lump sum payments thereafter of
                amounts accrued during each calendar year.

          (ii)   In lieu of option (i) above, a Participant may receive annual
                 payments of the minimum amount necessary to satisfy the minimum
                 distribution requirements of Section 401(a)(9) of the Code.
                 Such minimum amount will be determined on the basis of the
                 joint life expectancy of the Participant and his or her
                 Beneficiary. Such life expectancy will be recalculated once
                 each year, provided, however, that the life expectancy of the
                 Beneficiary will not be recalculated if the Beneficiary is not
                 the Participant's spouse. The amount of the withdrawal shall be
                 allocated among the Investment Funds in proportion to the value
                 of the Participant's Accounts as of the date of each
                 Withdrawal. An election under this option (ii) shall be made by
                 a Participant by giving written notice to the Committee within
                 the 90-day period prior to his or her required beginning date.
                 In the event a Participant fails to make an election under this
                 Section 9.04(b), payment shall be made in accordance with
                 clause (ii) above or in accordance with paragraph (c) below.

      (c)   A Participant who is required to commence distributions under the
            provisions of paragraph (a) above may satisfy the minimum
            distribution requirements of Section 401(a)(9) of the Code by taking
            withdrawals pursuant to Section 7.04. The minimum amount of the
            withdrawal necessary to satisfy Section 401 (a)(9) of the Code shall
            be calculated according to the method set forth in paragraph (b)(ii)
            above. In the event the minimum amount is not withdrawn, the
            difference between the amount withdrawn and the minimum amount
            required to satisfy Section 401(a)(9) of the Code shall be
            distributed to the Participant by December 31 of the applicable year
            or, for the year the Participant attains age 70 1/2, by April 1 of
            the following year.

      (d)   Any Participant who attains age 70 1/2 while employed by the Company
            but is not required to begin receiving payments while in service
            under the provisions of paragraph (a) above nevertheless may elect
            the same in-service distribution options described in paragraph (b)
            above, as if such Participant were subject to such requirements.

      (e)   The commencement of payments under this Section 9.04 shall not
            constitute an Annuity Starting Date for purposes of Sections
            401(a)(11) and 417 of the Code. Upon the Participant's subsequent
            termination of employment, payment of the Participant's Accounts
            shall be made in accordance with the provisions of Section 9.02.

9.05   SMALL BENEFITS

     Notwithstanding any provision of this Plan to the contrary, a cash lump sum
     payment shall be made in lieu of all vested benefits if the value of the
     Vested Portion of the Participant's Accounts, as of the date payments
     commence under this Article 9, is $5,000 or less, subject to the following
     rules:

      (a)   The lump sum payment shall automatically be made as soon as
            administratively practicable following the Participant's termination
            of employment.

      (b)   For distributions made before March 22, 1999, no such lump sum
            payment shall be made if the value of the Vested Portion of the
            Participant's Accounts ever exceeded $5,000 at the time of any prior
            withdrawal or distribution from his or her Accounts.

      (c)   For distributions made before October 17, 2000, no such lump sum
            payment shall be made to a Participant who has or previously had in
            effect an election of an annuity under Section 9.02(a)(ii) if the
            value of the Vested Portion of the Participant's Accounts ever
            exceeded $5,000 at the time of any prior withdrawal or distribution
            from his or her Accounts.

                                        27
<PAGE>

      (d)   No such lump sum payment shall be made after benefits have commenced
            in any form under Section 9.02.

9.06   STATUS OF ACCOUNTS PENDING DISTRIBUTION

     Until completely distributed under Section 9.03 or 9.04, the Accounts of a
     Participant who is entitled to a distribution shall continue to be invested
     as part of the Trust Fund under this Plan.

9.07   PROOF OF DEATH AND RIGHT OF BENEFICIARY OR OTHER PERSON

     The Committee may require and rely upon such proof of death and such
     evidence of the right of any Beneficiary or other person to receive the
     value of the Accounts of a deceased Participant as the Committee may deem
     proper and its determination of the right of that Beneficiary or other
     person to receive payment shall be conclusive.

9.08   DISTRIBUTION LIMITATION

     Notwithstanding any other provision of this Article 9, all distributions
     from this Plan shall conform to the regulations issued under Section
     401(a)(9) of the Code, including the incidental death benefit provisions of
     Section 401(a)(9)(G) of the Code. Further, such regulations shall override
     any Plan provision that is inconsistent with Section 401(a)(9) or the Code.

9.09   DIRECT ROLLOVER OF CERTAIN DISTRIBUTIONS

     Notwithstanding any provision of this Plan to the contrary that would
     otherwise limit a distributee's election under this Section 9.09, a
     distributee may elect, at the time and in the manner prescribed by the
     Committee, to have any portion of an eligible rollover distribution paid
     directly to an eligible retirement plan specified by the distributee in a
     direct rollover; provided, however, that for any single eligible rollover
     distribution, only one single eligible retirement plan may be specified by
     the distributee. The following definitions apply to the terms used in this
     Section 9.09:

      (a)   "ELIGIBLE ROLLOVER DISTRIBUTION" means any distribution of all or
            any portion of the balance to the credit of the distributee, except
            that an eligible rollover distribution does not include (i) any
            distribution that is one of a series of substantially equal periodic
            payments (not less frequently than annually) made for the life (or
            life expectancy) of the distributee or the joint lives (or joint
            life expectancies) of the distributee and the distributee's
            designated beneficiary, or for a specified period of ten years or
            more, (ii) any distribution to the extent such distribution is
            required under Section 401(a)(9) of the Code, (iii) the portion of
            any distribution that is not includible in gross income (determined
            without regard to the exclusion for net unrealized appreciation with
            respect to employer securities), and (iv) any hardship withdrawal
            pursuant to Section 7.05 that is made after December 31, 1998.

      (b)   "ELIGIBLE RETIREMENT PLAN" means an individual retirement account
            described in Section 408(a) of the Code, an individual retirement
            annuity described in Section 408(b) of the Code, an annuity plan
            described in Section 403(a) of the Code, or a qualified trust
            described in Section 401(a) of the Code, that accepts the
            distributee's eligible rollover distribution. However, in the case
            of an eligible rollover distribution to a Participant's surviving
            spouse, an eligible retirement plan is an individual retirement
            account or individual retirement annuity.

      (c)   "DISTRIBUTEE" means a Participant or a former Employee. In addition,
            such individual's surviving spouse, spouse or former spouse, if he
            or she is the alternate payee under a qualified domestic relations
            order as defined in Section 414(p) of the Code, are distributees
            with regard to the interest of the spouse or former spouse.

      (d)   "DIRECT ROLLOVER" means a payment by this Plan to the eligible
            retirement plan specified by the distributee.

                                        28
<PAGE>

                                  ARTICLE 10.
                             ADMINISTRATION OF PLAN

10.01 APPOINTMENT OF COMMITTEES

      (a)   The general administration of this Plan and the responsibility for
            carving out the provisions of this Plan shall be placed in an
            Administrative Committee and a Finance Committee. Each Committee
            shall consist of not less than three individuals and shall have a
            Secretary (who may, but need not, be a member of such Committee).
            The members of and the Secretary to each Committee shall be
            appointed from time to time by the Chief Executive Officer of USFIC
            or his or her designee (the "CEO"). Both Secretaries and all
            Committee members shall serve at the pleasure of the CEO. Any
            individual who is appointed a member of or Secretary to a Committee
            shall signify his or her acceptance by filing written acceptance
            with the CEO and (in the case of a Committee member) the Secretary
            of the Committee. Any member of or Secretary to a Committee may
            resign by delivering his or her written resignation to the CEO and
            (in the case of a Committee member) the Secretary of the Committee.

      (b)   The Administrative Committee shall have responsibility and authority
            for the administration of this Plan, including the discretionary
            authority to interpret its provisions and construe all of its terms,
            to authorize distributions from Plan assets, to determine the
            entitlement and amounts of benefits which shall be payable to any
            person in accordance with the provisions of this Plan and to
            authorize the payment of same from Plan assets.

      (c)   The Finance Committee shall have the exclusive responsibility and
            authority for implementing this Plan's investment objectives and
            policies by having responsibility for investment and reinvestment of
            the funds of this Plan. The Finance Committee shall report
            regularly, at least annually, to USFIC with respect to investment
            performance and the Finance Committee's evaluation of same. The
            Finance Committee may, in its discretion, appoint one or more
            investment managers (within the meaning of Section 3(38) of ERISA)
            to manage (including the power to acquire and dispose of) all or
            part of the assets of Plan, as it shall designate. In that event,
            authority over and responsibility for the management of the assets
            so designated shall be the sole responsibility of that investment
            manager. The Finance Committee shall have the responsibility for
            communicating to any investment managers so appointed sufficient
            information so that the current and ongoing liquidity and other
            financial needs of this Plan may be properly integrated into the
            recommendations of such investment manager respecting this Plan's
            investment objectives.

      (d)   All decisions of the Administrative Committee or the Finance
            Committee and any action taken by either of them with respect to
            this Plan and within the powers granted to them under this Plan, and
            any interpretation of provisions of this Plan by the Administrative
            Committee or the trust agreement (described in Section 1.44) by the
            Finance Committee, shall be conclusive and binding on all persons,
            and shall be given the maximum possible deference allowed by law.

10.02 DUTIES OF COMMITTEES

      The CEO shall appoint a chairman from each Committee and a secretary who
      may be but need not be one of the members of such Committee. The Committee
      members may appoint from their number such subcommittees with such powers
      as they shall determine: and authorize one or more of their number or any
      agent to execute or deliver any instrument or make any payment on their
      behalf; may retain counsel, employ agents and provide such clerical,
      accounting, and consulting services as they may require in carrying out
      the provisions of this Plan; and may allocate among themselves or delegate
      to other persons all or such portion of their duties under this Plan,
      other than those granted to the Trustee under the trust agreement adopted
      for use in implementing this Plan, as they, in their sole discretion,
      shall decide.

                                        29
<PAGE>

10.03 INDIVIDUAL ACCOUNTS

      The Committee shall maintain, or cause to be maintained, records showing
      the individual balances in each Participant's Accounts. However,
      maintenance of those records and Accounts shall not require any
      segregation of the funds of this Plan.

10.04 MEETINGS

      Each Committee shall hold meetings upon such notice, at such place or
      places, and at such time or times as it may from time to time determine.

10.05 ACTION OF MAJORITY

      Any act which this Plan authorizes or requires each Committee to do may be
      done by a majority of its members. The action of that majority expressed
      from time to time by a vote at a meeting or in writing without a meeting
      shall constitute the action of such Committee and shall have the same
      effect for all purposes as if assented to by all members of such Committee
      at the time in office.

10.06 COMPENSATION AND BONDING

      No member of any Committee shall receive any compensation from this Plan
      for his or her services as such. Except as may otherwise be required by
      law, no bond or other security need be required of any member in that
      capacity in any jurisdiction.

10.07 ESTABLISHMENT OF RULES

      Subject to the limitations of this Plan, each Committee from time to time
      shall establish rules for the administration of this Plan and the
      transaction of its business.

10.08 PRUDENT CONDUCT

      The members of each Committee shall use that degree of care, skill,
      prudence and diligence that a prudent man acting in a like capacity and
      familiar with such matters would use in his or her conduct of a similar
      situation.

10.09 SERVICE IN MORE THAN ONE FIDUCIARY CAPACITY

      Any individual, entity or group of persons may serve in more than one
      fiduciary capacity with respect to this Plan and/or the funds of this
      Plan.

10.10 LIMITATION OF LIABILITY

      The Company, the board of directors of the Company, the members of each
      Committee, and any officer, employee or agent of the Company (other than
      the Trustee) shall not incur any liability individually or on behalf of
      any other individuals or on behalf of the Company for any act or failure
      to act, made in good faith in relation to this Plan or the funds of this
      Plan. However, this limitation shall not act to relieve any such
      individual or the Company from a responsibility or liability for any
      fiduciary responsibility, obligation or duty under Part 4, Title I of
      ERISA.

10.11 INDEMNIFICATION

      The members of each Committee, the board of directors of the Company, and
      the officers, employees and agents of the Company (other than the Trustee)
      shall be indemnified against any and all liabilities arising by reason of
      any act, or failure to act, in relation to this Plan or the funds of this
      Plan, including, without limitation, expenses reasonably incurred in the
      defense of any claim relating to this Plan or the funds of this Plan, and
      amounts paid in any compromise or settlement relating to this Plan or the
      funds of this Plan, except for actions or failures to act made in bad
      faith. The foregoing indemnification shall be from the

                                        30
<PAGE>

      funds of this Plan to the extent of those funds and to the extent
      permitted under applicable law; otherwise from the assets of the Company
      to the extent permitted by applicable law.

10.12 NAMED FIDUCIARY

      For purposes of ERISA, USFIC, the Administrative Committee, and the
      Finance Committee each shall be a named fiduciary of this Plan with
      respect to their respective duties and responsibilities hereunder.

                                  ARTICLE 11.
                              MANAGEMENT OF FUNDS

11.01 TRUST AGREEMENT

      All the funds of this Plan shall be held by a Trustee appointed from time
      to time by USFIC under a trust agreement adopted, or as amended, by USFIC
      for use in providing the benefits of this Plan and paying its expenses not
      paid directly by the Company. The Company shall have no liability for the
      payment of benefits under this Plan or for the administration of the funds
      paid over to the Trustee.

11.02 EXCLUSIVE BENEFIT RULE

      Except as otherwise provided in this Plan, no part of the corpus or income
      of the funds of this Plan shall be used for, or diverted to, purposes
      other than for the exclusive benefit of Participants and other persons
      entitled to benefits under this Plan and paying the expenses of this Plan
      not paid directly by the Company. No person shall have any interest in, or
      right to, any part of the earnings of the funds of this Plan, or any right
      in, or to, any part of the assets held under this Plan, except as and to
      the extent expressly provided in this Plan.

                                  ARTICLE 12.
                       AMENDMENT, MERGER AND TERMINATION

12.01 AMENDMENT OF PLAN

      USFIC reserves the right at any time and from time to time, and
      retroactive if deemed necessary or appropriate, to amend in whole or in
      part, by action of its board of directors (or delegate thereof), any or
      all of the provisions of this Plan. However, no amendment shall make it
      possible for any part of the funds of this Plan to be used for, or
      diverted to, purposes other than for the exclusive benefit of persons
      entitled to benefits under this Plan. No amendment shall be made which has
      the effect of decreasing the balance of the Accounts of any Participant or
      of reducing the nonforfeitable percentage of the balance of the Accounts
      of a Participant below the nonforfeitable percentage computed under this
      Plan as in effect on the date on which the amendment is adopted or, if
      later, the date on which the amendment becomes effective.

12.02 MERGER, CONSOLIDATION OR TRANSFER

      This Plan may not be merged or consolidated with, and its assets or
      liabilities may not be transferred to, any other plan unless each person
      entitled to benefits under this Plan would, if the resulting plan were
      then terminated, receive a benefit immediately after the merger,
      consolidation, or transfer which is equal to or greater than the benefit
      he or she would have been entitled to receive immediately before the
      merger, consolidation, or transfer if this Plan had then terminated.

12.03 ADDITIONAL PARTICIPATING COMPANIES

      (a)   If any employer is or becomes an Affiliated Company, USFIC may
            include the employees of that Affiliated Company in the membership
            of this Plan upon approval by USFIC's board of directors (or
            delegate thereof), and upon appropriate action by that employer
            necessary to adopt this Plan. In that event, or if any individuals
            become Eligible Employees of the Company as the result of merger or
            consolidation or as the result of acquisition of all or part of the
            assets or business of another
                                        31
<PAGE>

            employer, USFIC shall determine to what extent, if any, previous
            service with such other employer shall be recognized under this
            Plan, but subject to the continued qualification of the trust for
            this Plan as tax-exempt under the Code.

      (b)   The participation in this Plan of any Affiliated Company may be
            terminated upon appropriate action by it or by USFIC. In that event
            the funds of this Plan held on account of Participants in the employ
            of that employer, and any unpaid balances of the Accounts of all
            Members who have separated from the employ of that employer, shall
            be determined by the Committee. Those funds shall be distributed as
            provided in Section 12.04 if this Plan should be terminated, or
            shall be segregated by the Trustee as a separate trust, pursuant to
            certification to the Trustee by the Committee, continuing this Plan
            as a separate plan for the employees of that employer under which
            that employer shall succeed to all the powers and duties of USFIC,
            including the appointment of the members of the Committee.

12.04 TERMINATION OF PLAN

      (a)   USFIC may terminate this Plan or completely discontinue
            contributions under this Plan, by action of its board of directors
            (or delegate thereof), for any reason at any time. In case of
            termination or partial termination of this Plan, or complete
            discontinuance of Company contributions to this Plan, the rights of
            affected Participants to their Accounts under this Plan as of the
            date of the termination or discontinuance shall be nonforfeitable.
            The total amount in each Participant's Accounts shall be
            distributed, as the Committee shall direct, to him or her or for his
            or her benefit or continued in trust for his or her benefit.

      (b)   Upon termination of this Plan, Salary Deferral Contributions, with
            earnings thereon, shall only be distributed to Participants if (i)
            neither the Company nor an Affiliated Company establishes or
            maintains a successor defined contribution plan, and (ii) payment is
            made to the Participants in the form of a lump sum distribution (as
            defined in Section 402(d)(4) of the Code, without regard to clauses
            (i) through (iv) of subparagraph (A), subparagraph (B), or
            subparagraph (F) thereof). For purposes of this paragraph, a
            "successor defined contribution plan" is a defined contribution plan
            (other than an employee stock ownership plan as defined in Section
            4975(e)(7) of the Code ("ESOP") or a simplified employee pension as
            defined in Section 408(k) of the Code ("SEP")) which exists at the
            time this Plan is terminated or within the 12-month period beginning
            on the date all assets are distributed. However, in no event shall a
            defined contribution plan be deemed a successor plan if fewer than 2
            percent of the individuals who are eligible to participate in this
            Plan at the time of its termination are or were eligible to
            participate under another defined contribution plan of the Company
            or an Affiliated Company (other than an ESOP or a SEP) at any time
            during the period beginning 12 months before and ending 12 months
            after the date of this Plan's termination.

12.05 DISTRIBUTION OF ACCOUNTS UPON A SALE OF ASSETS OR A SALE OF A SUBSIDIARY

     Upon the disposition by a corporation which is part of the Company (a
     "Corporation") of at least 85 percent of the assets (within the meaning of
     Section 409(d)(2) of the Code) used by the Corporation in a trade or
     business or upon the disposition by a Corporation of its interest in a
     subsidiary (within the meaning of Section 409(d)(3) of the Code), Salary
     Deferral Contributions, with earnings thereon, may be distributed to those
     Participants who continue in employment with the employer acquiring such
     assets or with the sold subsidiary, provided that (a) the Company maintains
     this Plan (i.e., the buyer does not maintain this Plan) after the
     disposition, (b) the buyer does not adopt this Plan or otherwise become a
     participating employer in this Plan and does not accept any offer of assets
     or liabilities from this Plan to a plan it maintains in a transaction
     subject to Section 414(l)(1) of the Code, and (c) payment is made to the
     Participant in the form of a lump sum distribution (as defined in Section
     402(d)(4) of the Code, without regard to clauses (i) through (iv) of
     subparagraph (A), subparagraph (B), or subparagraph (F) thereof).

                                        32
<PAGE>

                                  ARTICLE 13.
                               GENERAL PROVISIONS

13.01 NONALIENATION

     Except as required by any applicable law, no benefit under this Plan shall
     in any manner be anticipated, assigned or alienated, and any attempt to do
     so shall be void. However, payment shall be made in accordance with the
     provisions of any judgment, decree, or order which:

      (a)   creates for, or assigns to, a spouse, former spouse, child or other
            dependent of a Participant the right to receive all or a portion of
            the Participant's benefits under this Plan for the purpose of
            providing child support, alimony payments or marital property rights
            to that spouse, child or dependent,

      (b)   is made pursuant to a State domestic relations law,

      (c)   does not require this Plan to provide any type of benefit, or any
            option, not otherwise provided under this Plan, and

      (d)   otherwise meets the requirements of Section 206(d) of ERISA as a
            "qualified domestic relations order," as determined by the
            Committee.

     Notwithstanding anything herein to the contrary, if the amount payable to
     the alternate payee under the qualified domestic relations order is less
     than $5,000, such amount shall be paid in one cash lump sum as soon as
     practicable following the qualification of the order. If the amount exceeds
     $5,000, it may be paid as soon as practicable following the qualification
     of the order if the alternate payee consents thereto; otherwise it may not
     be payable before the earliest of (i) the Participant's termination of
     employment, (ii) the time such amount could be withdrawn under Article 7,
     or (iii) the Participant's attainment of age 50.

     In addition, to the extent permitted by Section 401(a)(13) of the Code, a
     Participant's benefits may be offset against an amount that the Participant
     is ordered or required to pay to this Plan pursuant to a judgment in a
     criminal action involving this Plan, a civil judgment in connection with a
     violation or alleged violation of Part 4 of Subtitle B of Title I of ERISA,
     or a settlement agreement between the Secretary of Labor and the
     Participant in connection with a violation or alleged violation of such
     Part.

13.02 CONDITIONS OF EMPLOYMENT NOT AFFECTED BY PLAN

     The establishment of this Plan shall not confer any legal rights upon any
     individual for a continuation of employment, nor shall it interfere with
     the rights of the Company to discharge any individual and to treat him or
     her without regard to the effect which that treatment might have upon him
     or her as a Participant or potential Participant of this Plan.

13.03 FACILITY OF PAYMENT

     If, under rules and procedures established by the Committee, it shall be
     found that a Participant or other person entitled to a benefit is unable to
     care for his or her affairs because of illness or accident or because he or
     she is a minor, then any benefit due him or her, unless claim shall have
     been made for the benefit by a duty appointed legal representative, may be
     paid to his or her spouse, a child, a parent or other blood relative, or to
     an individual with whom he or she resides. Any payment so made shall be a
     complete discharge of the liabilities of this Plan for that benefit.

13.04 INFORMATION

     Each Participant, Beneficiary or other person entitled to a benefit, before
     any benefit shall be payable to him or her or on his or her account under
     this Plan, shall file, as prescribed by the Committee, the information that
     it shall require to establish his or her rights and benefits under this
     Plan.

                                        33
<PAGE>

13.05 TOP-HEAVY PROVISIONS

      (a)   The following definitions apply to the terms used in this Section
            13.05:

          (i)   "applicable determination date" means the last day of the
                preceding Plan Year;

          (ii)   "top-heavy ratio" means the ratio of (A) the value of the
                 aggregate of the Accounts under this Plan for key employees to
                 (B) the value of the aggregate of the Accounts under this Plan
                 for all key employees and non-key employees;

          (iii)  "key employee" means an employee who is in a category of
                 employees determined in accordance with the provisions of
                 Sections 416(i)(1) and (5) of the Code and any regulations
                 thereunder, and where applicable, on the basis of the
                 Employee's Statutory Compensation from the Company or an
                 Affiliated Company;

          (iv)  "non-key employee" means any Eligible Employee who is not a key
                employee;

          (v)   "applicable Valuation Date" means the Valuation Date coincident
                with or immediately preceding the last day of the preceding Plan
                Year;

          (vi)  "required aggregation group" means any other qualified plan(s)
                of the Company or an Affiliated Company in which there are
                members who are key employees or which enable(s) this Plan to
                meet the requirements of Sections 401(a)(4) or 410(b) of the
                Code; and

          (vii) "permissive aggregation group" means each plan in the required
                aggregation group and any other qualified plan(s) of the Company
                or an Affiliated Company in which all members are non-key
                employees. If the resulting aggregation group continues to meet
                the requirements of Sections 401(a)(4) and 410(b) of the Code.

      (b)   For purposes of this Section 13.05, this Plan shall be "top-heavy"
            with respect to any Plan Year if as of the applicable determination
            date the top-heavy ratio exceeds 60 percent. The top-heavy ratio
            shall be determined as of the applicable Valuation Date in
            accordance with Sections 416(g)(3) and (4) of the Code and Article 5
            of this Plan. For purposes of determining whether this Plan is top-
            heavy the account balances under this Plan will be combined with the
            account balances or the present value of accrued benefits under each
            other plan in the required aggregation group and, under rules and
            procedures established by the Committee, may be combined with the
            account balances or the present value of accrued benefits under any
            other qualified plan in the permissive aggregation group.
            Distributions made with respect to a Participant under this Plan
            during the five-year period ending on the applicable determination
            date shall be taken into account for purposes of determining the
            top-heavy ratio; distributions under plans that terminated within
            such five-year period shall also be taken into account, if any such
            plan contained key employees and therefore would have been part of
            the required aggregation group.

      (c)   The following provisions shall be applicable to Participants for any
            Plan Year with respect to which this Plan is top-heavy:

          (i)   In lieu of the vesting requirements specified in Section 6.02, a
                Participant shall be vested in, and have a nonforfeitable right
                to, his or her Company Account upon the completion of three
                years of Vesting Service, provided that in no event shall the
                Vested Portion of a Participant's Company Account be less than
                the percentage determined under Section 6.02.

          (ii)   An additional Company contribution shall be allocated on behalf
                 of each Participant (and each Eligible Employee eligible to
                 become a Participant) who is a non-key employee, and who has
                 not separated from service as of the last day of the Plan Year,
                 to the extent that the contributions made on his or her behalf
                 under Sections 3.03 and 3.04 for the Plan Year (and not needed
                 to meet the contribution percentage test set forth in Section
                 3.09) would otherwise be less than 3 percent of his or her
                 remuneration. However, if the greatest percentage of
                 remuneration contributed on behalf of a key employee under
                 Sections 3.01, 3.03 and 3.04 for the Plan Year would be less
                 than 3 percent, that lesser percentage shall be substituted for
                                        34
<PAGE>

                 "3 percent" in the preceding sentence. Notwithstanding the
                 foregoing provisions of this subparagraph (ii), no minimum
                 contribution shall be made under this Plan with respect to a
                 Participant (or an Eligible Employee eligible to become a
                 Participant) if the required minimum benefit under Section
                 416(c)(1) of the Code is provided to him or her by any other
                 qualified pension plan of the Company or an Affiliated Company.
                 For the purposes of this subparagraph (ii), remuneration has
                 the same meaning as set forth in Section 3.12(c).

      (d)   If this Plan is top-heavy with respect to a Plan Year and ceases to
            be top-heavy for a subsequent Plan Year, a Participant who has
            completed three years of Vesting Service on or before the last day
            of the most recent Plan Year for which this Plan was top-heavy shall
            continue to be vested in and have a nonforfeitable right to his or
            her Company Account.

13.06 PREVENTION OF ESCHEAT

     Under rules and procedures established by the Committee, if the whereabouts
     of any person to whom a payment is due under this Plan cannot be
     ascertained, then, no earlier than three years from the date such payment
     is due, a notice of such due and owing payment shall be mailed to the last
     known address of such person, as shown on the records of the Committee or
     the Company. If such person has not made written claim therefor within
     three months of the date of the mailing, then, upon receiving advice from
     counsel to this Plan, such payment and all remaining payments otherwise due
     such person may be canceled on the records of this Plan and the amount
     thereof applied to reduce the contributions of the Company. Upon such
     cancellation, this Plan and the Trust shall have no further liability
     therefor except that, in the event such person or his or her beneficiary
     later provides notice of his or her whereabouts and requests the payment or
     payments due to him or her under this Plan, the amount so applied shall be
     paid to him or her in accordance with the provisions of this Plan. Such
     amount shall be taken first from any forfeitures which have not as yet been
     applied against Company contributions, and if any amounts remain to be
     paid, the Company shall make a special Company contribution equal to those
     amounts.

13.07 ELECTIONS

     Any elections, notifications or designations made by an individual pursuant
     to the provisions of this Plan shall be made in such manner and submitted
     within such time period as is prescribed by the Committee under rules
     uniformly applicable to all employees similarly situated. The Committee
     reserves the right to change from time to time the time and manner for
     making notifications, elections or designations by individuals under this
     Plan if it determines after due deliberation that such action is justified
     in that it improves the administration of this Plan. In the event of a
     conflict between the provisions for making an election, notification or
     designation set forth in this Plan and such new administrative procedures,
     those new administrative procedures shall prevail.

13.08 LIMITATIONS IMPOSED ON INSIDE PARTICIPANTS

     Notwithstanding any other provision of this Plan to the contrary, an inside
     Participant's right to direct investments under Sections 4.02, 4.04 and
     4.05, and his or her right to withdrawals and loans under Articles 7 and 8,
     shall be subject to such limitations and restrictions as may be imposed
     under rules and procedures established by the Committee from time to time
     to comply with the conditions for the employee benefit plan exemptions to
     the short-swing trading liability rules of Section 16(b) of the Securities
     Exchange Act of 1934.

13.09 CONSTRUCTION

      (a)   This Plan shall be construed, regulated and administered under ERISA
            and the laws of the State of New Jersey, except where ERISA
            controls. Except as otherwise provided by law, any action to enforce
            a right or obligation hereunder shall be brought in a court of
            competent jurisdiction in New Jersey.

                                        35
<PAGE>

      (b)   The titles and headings of the Articles and Sections in this Plan
            are for convenience only. In the case of ambulatory or
            inconsistency, the text rather than the titles or headings shall
            control.

13.10 QUALIFIED MILITARY SERVICE

     Notwithstanding any provision of this Plan to the contrary, contributions,
     benefits and service credit with respect to qualified military service will
     be provided in accordance with Section 414(u) of the Code.

                                   EXECUTION

     Witness the execution of The Individual Retirement Plan of United States
Fire Insurance Company, as amended and restated effective August 13, 1998, by
duly authorized officers of United States Fire Insurance Company, on the later
of the dates indicated below.

                                        UNITED STATES FIRE INSURANCE COMPANY
                                        By:     /s/
                                           -------------------------------------
                                        Title:   Senior Vice President
                                           -------------------------------------
                                        Date:   November 27, 2000
                                            ------------------------------------

                                        By:     /s/ VALERIE J. GASPARIK
                                           -------------------------------------
                                        Title:   Vice President and Secretary
                                           -------------------------------------
                                        Date:   November 27, 2000
                                            ------------------------------------

                                        36<PAGE>

                                                                   EXHIBIT 10.30

                    SUPPLEMENTAL INDIVIDUAL RETIREMENT PLAN

                                       OF

                      UNITED STATES FIRE INSURANCE COMPANY

                          (EFFECTIVE AUGUST 13, 1998)
<PAGE>

                               TABLE OF CONTENTS

<Table>
<Caption>
                                                              PAGE
                                                              ----
<S>                                                           <C>
INTRODUCTION................................................    1

ARTICLE 1.  DEFINITIONS.....................................    1
     1.01   "Account".......................................    1
     1.02   "Code"..........................................    1
     1.03   "Committee".....................................    1
     1.04   "Company".......................................    1
     1.05   "Company Account"...............................    1
     1.06   "Company Contributions".........................    1
     1.07   "Compensation"..................................    1
     1.08   "Deferral Account"..............................    2
     1.09   "Effective Date"................................    2
     1.10   "Eligible Employee".............................    2
     1.11   "ERISA".........................................    2
     1.12   "IRP"...........................................    2
     1.13   "Member"........................................    2
     1.14   "Plan", "Supplemental IRP" or "SIRP"............    2
     1.15   "Salary Deferrals"..............................    2
     1.16   "Salary Reduction Agreement"....................    2
     1.17   "Statutory Limitations".........................    2
     1.18   "USFIC".........................................    2

ARTICLE 2.  PARTICIPATION...................................    2
     2.01   Eligibility.....................................    2
     2.02   Participation...................................    2

ARTICLE 3.  CONTRIBUTIONS...................................    3
     3.01   Amount of Salary Deferral Contributions.........    3
     3.02   Matching Contributions..........................    4
     3.03   Basic Contributions.............................    4
     3.04   Investment of Accounts..........................    5
     3.05   Vesting of Accounts.............................    5
     3.06   Individual Accounts.............................    5

ARTICLE 4.  PAYMENT OF CONTRIBUTIONS........................    5
     4.01   Payment of Deferral Accounts....................    5
     4.02   Payment of Company Accounts.....................    5
     4.03   Method of Payment...............................    6
     4.04   Designation of Beneficiary......................    6
     4.05   Special Payment Rule............................    6
</Table>

                                        i
<PAGE>

<Table>
<Caption>
                                                              PAGE
                                                              ----
<S>                                                           <C>
ARTICLE 5.  GENERAL PROVISIONS..............................    6
     5.01   Funding.........................................    6
     5.02   No Contract of Employment.......................    7
     5.03   Facility of Payment.............................    7
     5.04   Withholding Taxes...............................    7
     5.05   Nonalienation...................................    7
     5.06   Claim and Review Procedure......................    7
     5.07   Construction....................................    7

ARTICLE 6.  AMENDMENT OR TERMINATION........................    8
     6.01   Reservation of Rights...........................    8
     6.02   Termination of Affiliate's Participation........    8

EXECUTION...................................................    8
</Table>

                                        ii
<PAGE>

                   SUPPLEMENTAL INDIVIDUAL RETIREMENT PLAN OF
                      UNITED STATES FIRE INSURANCE COMPANY

                          (Effective August 13, 1998)

INTRODUCTION

     This Supplemental Individual Retirement Plan of United States Fire
Insurance Company (the "Plan", "Supplemental IRP" or "SIRP") has been adopted by
the Board of Directors of United States Fire Insurance Company ("USFIC") to be
effective on and after August 13, 1998. The purposes of this Plan are:

     (i)   to carry forward, and to reflect the obligations of the appropriate
           Company under this Plan with respect to, the liabilities accrued
           under the Supplemental Individual Retirement Plan of Talegen
           Holdings, Inc. (the "Talegen SIRP") for the benefit of certain
           Eligible Employees under this Plan; and

     (ii)   to provide a means for making salary deferral and company
            contributions for the benefit of those Eligible Employees under this
            Plan who are participants in the Individual Retirement Plan of
            United States Fire Insurance Company and with respect to whom salary
            deferral and company contributions under the IRP are or will be
            limited by application of the limitations imposed on qualified plans
            by Sections 401(k)(3), 402(g), 401(a)(17), 401(m)(2), 414(s) and 415
            of the Internal Revenue Code of 1986, as amended.

     This Plan is intended to constitute a nonqualified and unfunded deferred
compensation plan for a select group of management or highly compensated
employees which is exempt from certain provisions of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"), pursuant to Section 401(a)(1)
and parallel provisions of ERISA. All benefits payable under the Plan shall be
paid out of the general assets of the Companies. USFIC may establish and
transfer assets to a grantor trust in order to aid it in providing benefits due
under the Plan.

ARTICLE 1.  DEFINITIONS

1.01   "ACCOUNT" shall mean the Company Account and the Deferral Account.

1.02   "CODE" shall mean the Internal Revenue Code of 1986, as amended from time
       to time.

1.03   "COMMITTEE" shall mean the committee composed of at least three
       individuals who shall be appointed by the Chief Executive Officer of
       USFIC or his or her designee (the "CEO") to serve at the pleasure of the
       CEO. Responsibility to administer the Plan, the exclusive discretionary
       power to interpret its provisions, and the responsibility for carrying
       out its provisions are vested in the Committee.

1.04    "COMPANY" shall mean USFIC or any affiliate of USFIC which has adopted
        this Plan with the approval of USFIC. With respect to any particular
        Eligible Employee, any reference to the Company shall mean or refer to
        the Company that is or was his or her employer at the relevant time.

1.05   "COMPANY ACCOUNT" shall mean (i) the liability accrued on the books of
       the Company in respect of the Company Account maintained under the
       Talegen SIRP for the benefit of an Eligible Employee under this Plan,
       which shall become an obligation of the employing Company with respect to
       such Eligible Employee under this Plan (in lieu of its former obligation
       under the Talegen SIRP) as of the Effective Date, (ii) all amounts
       credited to the Member under Sections 3.02 and 3.03, and (iii) the net
       earnings or losses credited on those amounts pursuant to Section 3.04.

1.06   "COMPANY CONTRIBUTIONS" shall mean the amount of contributions credited
       to a Member under Sections 3.02 and 3.03.

1.07   "COMPENSATION" shall mean the base pay which would be payable to a Member
       for services rendered to the Company on and after the Effective Date,
       determined prior to any reduction pursuant to a Member's election to make
       salary reduction contributions under the IRP (or under a cafeteria plan
       pursuant to Section 125 of the Code) or to make Salary Deferrals under
       this Plan.

                                        1
<PAGE>

1.08   "DEFERRAL ACCOUNT" shall mean (i) the liability accrued on the books of
       the Company in respect of the Deferral Account maintained under the
       Talegen SIRP for the benefit of an Eligible Employee under this Plan,
       which shall become an obligation of the employing Company with respect to
       such Eligible Employee under this Plan (in lieu of its former obligation
       under the Talegen SIRP) as of the Effective Date, (ii) all Salary
       Deferral amounts credited to the Member under Section 3.01, and (iii) the
       net earnings or losses credited on those amounts pursuant to Section
       3.04.

1.09   "EFFECTIVE DATE" shall mean August 13, 1998.

1.10   "ELIGIBLE EMPLOYEE" shall mean an employee of a Company who (i) is part
       of a "select group of management or highly compensated employees" (within
       the meaning of Section 401(a)(1) of ERISA) and (ii) has been designated
       (by name or classification) in writing by USFIC as eligible to
       participate in this Plan.

1.11   "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
       as amended from time to time.

1.12   "IRP" shall mean The Individual Retirement Plan of United States Fire
       Insurance Company, as adopted effective as of August 13, 1998, and
       amended and in effect thereafter.

1.13   "MEMBER" shall mean each Eligible Employee who has made the election
       described in Section 2.02(a), who has been designated (by name or
       classification) in writing by USFIC as eligible to have certain Company
       Contributions credited on his or her behalf as described in Section
       2.02(c), or for whom a liability accrued on the books of his or her
       employing Company in respect of the Company and/or Deferral Account(s)
       maintained under the Talegen SIRP have become an obligation of such
       Company under this Plan and are credited to the employee's Company and/or
       Deferral Account(s) under this Plan.

1.14   "PLAN", "SUPPLEMENTAL IRP" OR "SIRP" shall mean this Supplemental
       Individual Retirement Plan of United States Fire Insurance Company, as
       set forth in this document or as amended from time to time.

1.15   "SALARY DEFERRALS" shall mean the amount of contributions credited to a
       Member with respect to Compensation reductions, respectively, under
       Section 3.01.

1.16   "SALARY REDUCTION AGREEMENT" shall mean the agreement entered into by the
       Member pursuant to Section 2.02 under which he or she elects to defer a
       portion of his or her Compensation under this Plan.

1.17   "STATUTORY LIMITATIONS" shall mean the limitations set forth in Sections
       401(k)(3), 402(g), 401(a)(17), 401(m)(2), 414(s) and 415 of the Code.

1.18   "USFIC" means United States Fire Insurance Company, or any successor by
       merger, purchase or otherwise, with respect to its employees.

ARTICLE 2.  PARTICIPATION

2.01   ELIGIBILITY

     USFIC (in its sole discretion) shall designate (by name or classification)
     in writing from time to time those employees who shall be Eligible
     Employees and eligible to participate in this Plan under Section 2.02(a)
     and those employees who shall become Members of the Plan under Section
     2.02(c). Employees shall be notified of their eligibility for participation
     in the Plan as soon as practicable after USFIC has made its designation
     and, for purposes of authorizing Salary Deferrals under Section 3.01, in
     any event within 30 days after his or her employing Company adopts the Plan
     or (thereafter) prior to the first day of the calendar year for which the
     employee is designated an Eligible Employee.

2.02   PARTICIPATION

      (a)   At least 30 days prior to the first day of the calendar year during
            which an Eligible Employee desires to have contributions credited on
            his or her behalf pursuant to Section 3.01, an Eligible Employee
            must execute a Salary Reduction Agreement authorizing Salary
            Deferrals under this Plan for such

                                        2
<PAGE>

          year in accordance with the provisions of Section 3.01. A Salary
          Reduction Agreement may be made by an Eligible Employee, if it is to
          be effective during the calendar year in which the Plan is adopted by
          his or her employing Company, by executing a Salary Reduction
          Agreement within 30 days after the adoption date.

          (i)   Any Salary Reduction Agreement (1) shall apply to Compensation
                earned by the Eligible Employee in the payroll periods beginning
                after the Agreement is received by the Committee, (2) shall be
                irrevocable until the end of the calendar year to which it
                applies, and (3) shall continue in effect for future years,
                unless until it is changed by filing a new Salary Reduction
                Agreement (or written revocation of the existing Agreement) with
                the Committee before January 1 of the calendar year to which the
                change is to apply.

          (ii)   Notwithstanding the foregoing, if a salary reduction agreement
                 was in effect under the Talegen SIRP immediately before the
                 Effective Date for an employee who becomes a Member of this
                 Plan as of that Date, that agreement shall apply to
                 Compensation earned by the Member on and after that Date, and
                 shall be treated as a Salary Reduction Agreement made in
                 accordance with the foregoing requirements of this paragraph
                 (a); provided, however, that if the Member executes a new
                 Salary Reduction Agreement and submits it to the Committee
                 before September 14, 1998, such new Agreement shall supersede
                 his or her prior agreement effective as of the date such new
                 Agreement is received by the Committee.

      (b)   Notwithstanding paragraph (a) above, an Eligible Employee may, in
            the event of a severe financial hardship, request a suspension of
            his or her Salary Deferrals under the Plan. The request shall be
            made in a time and manner determined by the Committee, and shall be
            effective as of such date as the Committee prescribes. The Eligible
            Employee may apply to the Committee to resume his or her Salary
            Deferrals with respect to payroll periods beginning on or after any
            January 1 following the date of suspension, in a time and manner
            determined by the Committee; provided, however, that the Committee
            shall approve such resumption only if the Committee determines that
            the Eligible Employee is no longer incurring such hardship.

      (c)   Irrespective of whether an Eligible Employee has made the election
            described in paragraph (a) above, he or she shall be a Member if -

          (i)   he or she has been designated (by name or classification) in
                writing by USFIC (in its sole discretion) to have Company
                Contributions credited on his or her behalf pursuant to Section
                3.02 and 3.03, or

          (ii)   a liability accrued on the books of his or her employing
                 Company in respect of the Company and/or Deferral Account(s)
                 maintained under the Talegen SIRP has become an obligation of
                 such Company under this Plan and are credited to his or her
                 Company and/or Deferral Account(s) under this Plan.

      (d)   As a condition of participation, a Member may also be required by
            the Committee to provide such other information as the Committee may
            deem necessary to properly administer the Plan.

ARTICLE 3.  CONTRIBUTIONS

3.01   AMOUNT OF SALARY DEFERRAL CONTRIBUTIONS

     The amount of contributions to be recorded on the books of a Company on
     behalf of a Member pursuant to this Section 3.01 shall be equal to the
     Salary Deferrals as determined in this Section 3.01. For each payroll
     period beginning on or after the effective date of an Eligible Employee's
     Salary Reduction Agreement, his or her Account shall be credited with
     amounts of Salary Deferrals, if applicable.

                                        3
<PAGE>

     The amount of Salary Deferrals shall be equal to the designated percentage
     of Compensation payments elected by the Member in his or her Salary
     Reduction Agreement, provided that such amount shall be equal to the result
     of (a) minus (b), as follows:

      (a)   the maximum Salary Deferral Contributions for that payroll period
            permitted under the IRP for the calendar year in which the payroll
            period occurs, calculated by using Compensation (as defined in
            Section 1.07), by treating 12% as the maximum Salary Deferral
            Contribution percentage rate permissible under the IRP, and by
            disregarding any reduction in the amount of such Contributions which
            would be required under the IRP due to the application of the
            Statutory Limitations or ineligibility of the Member to participate
            in the IRP; minus

      (b)   the maximum amount of Salary Deferral Contributions for that payroll
            period actually permitted under the IRP for such payroll period due
            to the application of the Statutory Limitations or ineligibility of
            the Member to participate in the IRP.

     Salary Deferrals shall be made under this Section 3.01 commencing at such
     time as the Member has contributed the maximum amount of Salary Deferral
     Contributions under the IRP permitted by the Statutory Limitations for the
     calendar year in which the payroll period occurs. No Salary Deferrals may
     be made under this Plan prior to the Effective Date.

3.02   MATCHING CONTRIBUTIONS

      (a)   As of the last day of each calendar year ending after the Effective
            Date, the amount of Matching Contributions to be credited to a
            Member's Company Account under this Section 3.02 shall be equal to
            the result of (i) minus (ii), as follows:

          (i)   the amount of the Matching Contributions that would have been
                made on behalf of the Member under the IRP for such year,
                determined on the basis of the amount of Salary Deferral
                Contributions under the IRP, the amount of Salary Deferrals
                pursuant to Section 3.01 and Compensation (as defined in Section
                1.08) and disregarding any reduction in Matching Contributions
                required under the IRP due to the application of the Statutory
                Limitations or ineligibility of the Member to participate in the
                IRP; minus

          (ii)   the amount of Matching Contributions that were actually made on
                 behalf of the Member by his or her employing Company under the
                 IRP for such year.

         Each Company may (in its sole discretion) credit Matching Contributions
         to Members' Company Accounts at intervals during the calendar year.
         This paragraph (a) shall be applied with respect to the calendar year
         1998 as if this Plan and the IRP were in effect for the entire year and
         operated prior to the Effective Date in the same manner as did the
         corresponding Talegen plans during that period.

      (b)   Notwithstanding paragraph (a) above, each Company may (in its sole
            discretion) credit on behalf of a Member or Members, for any
            particular calendar year ending after the Effective Date, any amount
            of Matching Contributions under this Section 3.02 in an amount to be
            determined by the Company, irrespective of the lack of Salary
            Deferrals pursuant to Section 3.01. Such additional Matching
            Contributions may be made in a manner intended to take into account
            the Member's inability to make Salary Deferral Contributions under
            the IRP during his or her first 12 months of employment or such
            other basis as the Company may (in its sole discretion) deems
            appropriate.

3.03   BASIC CONTRIBUTIONS

      (a)   As of the last day of each calendar year ending after the Effective
            Date, a Member, including any Member who terminated in such calendar
            year by reasons of Retirement, death or Disability (as

                                        4
<PAGE>

          defined in the IRP), shall have an amount credited to his or her
          Company Account under this Section 3.03 equal to the result of (i)
          minus (ii), as follows:

          (i)   the amount of the Basic Contributions that would have been made
                on behalf of the Member under the IRP for such year based on
                Compensation (as defined in Section 1.07) and disregarding any
                Statutory Limitations; minus

          (ii)   the amount of Basic Contributions that were actually made by
                 the Company on behalf of the Member's Account under the IRP for
                 such year.

         This paragraph (a) shall be applied with respect to the calendar year
         1998 as if this Plan and the IRP were in effect for the entire year and
         operated prior to the Effective Date in the same manner as did the
         corresponding Talegen plans during that period.

      (b)   Notwithstanding the foregoing, the Company may (in its sole
            discretion) credit on behalf of a Member or Members, for any
            particular calendar year ending after the Effective Date, any amount
            of Basic Contributions under this Section 3.03 in an amount to be
            determined by the Company on a case by case basis.

3.04   INVESTMENT OF ACCOUNTS

     A Member's Accounts shall be credited at least annually with net earnings
     or losses at an appropriate rate, which the Company (in its sole
     discretion) shall determine.

3.05   VESTING OF ACCOUNTS

     The Member shall be fully vested in the balance credited to his or her
     Salary Deferrals (as adjusted to reflect net earnings or losses thereon)
     made on his or her behalf under Section 3.01. The Member shall vest in the
     balance credited to the subaccount within his or her Company Account that
     corresponds to the type of Company Contributions made on his or her behalf
     under Sections 3.02 and 3.03 (as adjusted to reflect net earnings or losses
     thereon) at the same rate at which such type of Company Contributions would
     have vested under the IRP if had they been contributed thereunder. All
     subaccounts within a Member's Company Account shall become fully vested in
     the event of his or her death prior to termination of employment. In the
     event that the Member terminates employment prior to becoming fully vested
     in any subaccount within his or her Company Account, the nonvested portion
     of such subaccount shall be forfeited and shall not be restored in the
     event the Member is subsequently reemployed by any Company.

3.06   INDIVIDUAL ACCOUNTS

     The Committee shall maintain, or cause to be maintained, records showing
     the individual balances of each Member's Accounts. At least once a year,
     each Member shall be furnished with a statement setting forth the value of
     his or her Accounts.

ARTICLE 4.  PAYMENT OF CONTRIBUTIONS

4.01   PAYMENT OF DEFERRAL ACCOUNTS

     A Member shall be entitled to receive payment of the balance credited to
     his or her Deferral Account (as adjusted to reflect net earnings or losses
     thereon) upon the occurrence of the Member's termination of employment for
     any reason.

4.02   PAYMENT OF COMPANY ACCOUNTS

     A Member shall be entitled to receive payment of the balance credited to
     each subaccount within his or her Company Account (as adjusted to reflect
     net earnings or losses thereon), but only to the extent that such
     subaccount has vested (as determined under Section 3.05), upon the
     occurrence of the Member's termination of employment for any reason.

                                        5
<PAGE>

4.03   METHOD OF PAYMENT

     Payment of the balances credited to a Member's Deferral Account and the
     subaccounts within his or her Company Account (to the extent vested) shall
     be made in a single lump sum payment as soon as practicable after
     termination of employment. Notwithstanding the foregoing, a Member may
     elect, in lieu of receiving an immediate lump sum payment, to receive his
     or her vested Account balances in another form acceptable to the Committee
     or in a year after his or her termination of employment. Either such
     election must be made no later than the end of the calendar year which is
     at least two calendar years prior to termination of employment. If a Member
     dies before payment of the entire balance credited to any of his or her
     Accounts, an amount equal to the unpaid portion thereof, to the extent
     vested as of the date of his or her death, shall be payable in one lump sum
     to his or her Beneficiary.

4.04   DESIGNATION OF BENEFICIARY

     Each Member shall file with the Committee a written designation of one or
     more persons as the "Beneficiary" who shall be entitled to receive the
     amount, if any, payable under the Plan upon his or her death pursuant to
     Section 4.03 and this Section 4.04. A Member may, from time to time revoke
     or change his or her Beneficiary designation without the consent of any
     prior Beneficiary by filing a new designation with the Committee. The last
     such designation received by the Committee shall be controlling; provided,
     however, that no Beneficiary designation, or change or revocation thereof,
     shall be effective unless received by the Committee prior to the Member's
     death, and in no event shall it be effective as of a date prior to such
     receipt. If no such Beneficiary designation is in effect at the time of the
     Member's death, or if no designated Beneficiary survives the Member, the
     Member's estate shall be deemed to have been designated as his or her
     Beneficiary and shall receive the payment of the amount, if any, payable
     under the Plan upon his or her death.

4.05   SPECIAL PAYMENT RULE

     In the event that (i) any liability accrued on the books of a Member's
     employing Company in respect of the Company and/or Deferral Account(s)
     maintained under the Talegen SIRP have become an obligation of such Company
     under this Plan and are credited to the Member's Company and/or Deferral
     Account(s) under this Plan, and (ii) the Member terminates employment
     before the effective date of his or her employing Company's adoption of
     this Plan, then the method and procedures for payment of each such amount
     shall be made under the terms and conditions of the Talegen SIRP or prior
     transferor plan.

ARTICLE 5.  GENERAL PROVISIONS

5.01   FUNDING

      (a)   All amounts payable in accordance with this Plan with respect to a
            Member shall constitute a general unsecured obligation of his or her
            employing Company. Such amounts, as well as any administrative costs
            relating to the Plan, shall be paid out of the general assets of the
            relevant Company, to the extent not paid by a grantor trust
            established pursuant to paragraph (b) below.

      (b)   USFIC may, for administrative reasons, establish a grantor trust for
            the benefit of Members participating in the Plan. The assets of any
            such trust shall be held separate and apart from other funds of the
            Companies, and shall be used exclusively for the purposes set forth
            in the Plan and the applicable trust agreement, subject to the
            following conditions:

          (i)   the creation of such trust shall not cause the Plan to be other
                than "unfunded" for purposes of Title I of ERISA;

          (ii)   each Company shall be treated as a "grantor" of such trust for
                 purposes of Section 677 of the Code; and

                                        6
<PAGE>

          (iii)  the trust agreement shall provide that its assets may be used
                 to satisfy claims of a Company's general creditors in the event
                 of its insolvency and the rights of such general creditors are
                 enforceable by them under federal and state law.

5.02   NO CONTRACT OF EMPLOYMENT

     Neither the establishment nor the continuance of the Plan shall be
     construed as conferring any legal rights upon any person for a continuation
     of employment, nor shall it interfere with the rights of any Company to
     discharge any employee and to treat him or her without regard to the effect
     which such treatment might have upon him or her as a Member of the Plan.

5.03   FACILITY OF PAYMENT

     In the event that the Committee shall find that a Member is unable to may
     direct that any benefit payment due him or her, unless a claim shall have
     been made therefor by a duly appointed legal representative, be paid to his
     or her spouse, a child, a parent or other blood relative, or to a person
     with whom he or she resides, and any such payment so made shall be a
     complete discharge of the liabilities of the Plan therefor.

5.04   WITHHOLDING TAXES

     Each Company shall have the right to deduct any required withholding taxes
     from any payment to be made under the Plan, the balances credited to any
     Member's Accounts under the Plan, and/or any Compensation payment made
     during the period of a Member's participation in the Plan.

5.05   NONALIENATION

     Subject to any applicable law, no benefit under the Plan shall be subject
     in any manner to anticipation, alienation, sale, transfer, assignment,
     pledge, encumbrance or charge, and any attempt so to do shall be void, nor
     shall any such benefit be in any manner liable for or subject to
     garnishment, attachment, execution or levy, or liable for or subject to the
     debts, contracts, liabilities, engagements or torts of the Member.

5.06   CLAIM AND REVIEW PROCEDURE

     The Committee shall publish a claims and appeal procedure satisfying the
     minimum standards of Section 503 of ERISA, pursuant to which Members or
     other interested parties may claim benefits under this Plan and appeal
     denials of such claims.

5.07   CONSTRUCTION

      (a)   The Plan is intended to constitute an unfunded deferred compensation
            arrangement for a select group of management or highly compensated
            employees and all rights hereunder shall be governed by and
            construed in accordance with the laws of the State of New Jersey,
            except to the extent that such laws are preempted by ERISA.

      (b)   Except as otherwise provided by law, any action to enforce a right
            or obligation hereunder shall be brought in a court of competent
            jurisdiction in Morristown, New Jersey.

                                        7
<PAGE>

ARTICLE 6.  AMENDMENT OR TERMINATION

6.01   RESERVATION OF RIGHTS

     USFIC reserves the right to modify or to amend, in whole or in part, or to
     terminate this Plan at any time. However, no modification, amendment or
     termination of the Plan shall adversely affect the right of any Member to
     receive the benefits granted under the Plan by USFIC or his or her
     employing Company in respect to such Member as of the date of modification,
     amendment or termination.

6.02   TERMINATION OF AFFILIATE'S PARTICIPATION

     The participation in the Plan of any affiliate of USFIC may be terminated
     upon appropriate action by it or by USFIC. In that event, (a) no Member who
     is employed by the terminated affiliate (or any of its subsidiaries) (a
     "Frozen Member") shall accrue any additional benefits under the Plan after
     the effective date of the termination of the affiliate's participation (the
     "Withdrawal Date"), and (b) the terminated affiliate (rather than USFIC or
     any of its other affiliates) shall remain liable for the payment of any and
     all obligations with respect to the benefits and account balances of all
     Frozen Members under the terms of the Plan as in effect as of the
     Withdrawal Date, unless (and only to such extent, if any, as) the Board of
     Directors of USFIC determines that such liabilities shall be assumed by
     USFIC.

EXECUTION

     Witness the execution of this Supplemental Individual Retirement Plan of
United States Fire Insurance Company, by duly authorized officers of United
States Fire Insurance Company, on the date indicated below.

<Table>
<S>                                            <C>  <C>
                                               UNITED STATES FIRE INSURANCE COMPANY

                                               By:  /s/  FRANCIS W. RODE
                                                    ------------------------------------------
                                                    Title: Vice President
                                                    Date: August 13, 1998

                                               By:  /s/  VALERIE GASPARIK
                                                    ------------------------------------------
                                                    Title: Secretary
                                                    Date: August 13, 1998
</Table>

                                        8

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