Document:

<PAGE>
                       COASTAL ARUBA REFINING COMPANY N.V.
                                   THRIFT PLAN
                             AS OF DECEMBER 1, 1990

                                  INTRODUCTION
                             NAME AND EFFECTIVE DATE

         The name of this plan is "Coastal Aruba Refining Company N.V. Thrift
Plan" (hereinafter referred to as the Plan. The plan became effective as of
December 1, 1990.

         The purpose of the Plan is to enable participating Employees to share
in the growth and prosperity of the group of companies of which the Company is a
part, to provide Employees with an opportunity to accumulate capital for their
future economic needs and to enable Employees to acquire stock ownership
interest in The Coastal Corporation, which controls a group of companies which
includes the Company.

                                   ARTICLE I
                                  DEFINITIONS

         Whenever used herein the following words and phrases shall have the
meanings stated below unless a different meaning is plainly required by the
context:

         1.1   "Active Participation" means a calendar month (a) with respect to
which a contribution is made to the Plan for a Participant, (b) during which a
Participant would have been eligible to contribute to the Plan but was
prohibited from contributing due to a withdrawal of funds from the Plan, or (c)
during which the Participant would have been eligible to contribute to the Plan
except that (i) such Participant was employed by a Related Employer or
Subsidiary which had not adopted the Plan with respect to such period of time
and (ii) such Participant, if eligible, contributed to a defined contribution
plan adopted by such Related Employer or Subsidiary. A Participant shall receive
full credit for any calendar month during which the Participant makes a
contribution. Any full calendar month during which a Participant is eligible to
contribute and declines to do so shall be excluded from Active Participation.

         1.2   "Adjusted Balance" means the balance in a Participant's account
or accounts, as adjusted in accordance with Plan provisions as of the applicable
Valuation Date.

         1.3   "Administrator" means the Management Board of the Foundation.

         1.4   "Basic Compensation" means the fixed salaries or wages per
hour paid by the Employer to the Participant for a Plan Year excluding
compensation for bonuses, overtime, commissions and incentive compensation.
Basic Compensation includes payment for current year earned vacation, but not
for accrued vacation.

         1.5   "Beneficiary" means the person, persons, or entity designated or
determined pursuant to the provisions of the Plan.

         1.6   "Board" means the Management Board of the Foundation.

<PAGE>

         1.7   "Break in Service" means the termination of employment of an
Employee followed by the expiration of an Employment Year in which the Employee
accumulates no Hours of Service. For purposes of this Section a Break in Service
shall not be deemed to have occurred if (i) the employment of a terminated
Employee is resumed prior to the expiration of an Employment Year in which he
accumulates any Hours of Service or (ii) the Employee is absent from active
employment with the Company and Related Employers for periods of employment with
the Company or Related Companies during which the individual is disabled due to
illness or injury.

         1.8   "Coastal" means The Coastal Corporation, a Delaware corporation.

         1.9   "Committee" means the Administrative Committee described in the
Plan.

         1.10  "Company" means Coastal Aruba Refining Company N.V., an Aruba
Company, or any successor corporation resulting from a merger or consolidation
with the Company or transfer of substantially all of the assets of the Company,
if such successor or transferee shall adopt and continue the Plan by appropriate
corporate action. All employees of a Related Employer shall be treated as
employed by the Company only for purposes of determining Hours of Service,
eligibility to participate, vesting, and the commencement of benefits.
Notwithstanding anything to the contrary contained in this Section, no provision
of this Section shall be construed or interpreted to allow an individual who is
not an Employee to contribute to the Plan nor require the Company to make a
Company contribution under the Plan for any individual who is not an Employee.

         1.11  "Employee" means an individual employed by the Company and
classified as Regular, Full Time provided, however, that Employee does not
include any individual covered by a collective bargaining agreement or other
agreement between employee representatives and the Company if such agreement
does not provide for eligibility for this benefit.

               Regular, Full Time means employed full time in an established
job which is normally scheduled to work an average of twenty hours per week.
Persons employed for a specific period of time or for the duration of a specific
project, normally not to exceed three months, are classified as temporary
employees and are not Regular, Full Time employees. Persons who are an unpaid
leave of absence are not Regular, Full Time employees during such absence.

         1.12  "Employee Contributions" means contributions to the Plan by the
Participant.

         1.13  "Employee Contributions Account" means the record of money
and assets held by the Foundation for an individual Participant or Beneficiary
pursuant to the provisions of the Plan which were derived from Employee
Contributions.

         1.14  "Employment Year" means a twelve consecutive month period
commencing with an Employee's initial date of hire (or last date of rehire if he
has incurred a Break in Service) or with any anniversary thereof. For purposes
hereof, an Employee's date of hire shall be the first day on which he completes
an Hour of Service and his date of rehire shall be the first

                                       2
<PAGE>

day on which he completes an Hour of Service following a Break in Service.

         1.15  "Entry Date" means the first day of the first full pay
period for an Employee which occurs after completion of a year of Service.

         1.16  "Foundation" means the Coastal Aruba Thrift Foundation.

         1.17  "Hour of Service" means (i) each hour for which an Employee
is paid or entitled to payment for the performance of duties for the Company;
and (ii) each hour for which an Employee is directly or indirectly paid by the
Company or is entitled to payment from the Company during which no duties are
performed by reason of vacation, holiday, illness, incapacity (including
disability), military duty or leave of absence (but not in excess of 501 hours
in any continuous period during which no duties are performed). Each Hour of
Service for which back pay, irrespective of mitigation of damages, is either
awarded or agreed to by the Company shall be included under either (i) or (ii)
as may be appropriate. Hours of Service shall be credited:

               (a) in the case of Hours referred to in clause (i) of the first
         sentence of this section, for the computation period in which the
         duties are performed;

               (b) in the case of Hours referred to in clause (ii) of the first
         sentence of this section, for the computation period or periods in
         which the period during which no duties are performed occurs; and

               (c) in the case of Hours for which back pay is awarded or agreed
         to by the Company, for the computation period or periods to which the
         award or agreement pertains, rather than to the computation period in
         which the award, agreement or payment is made.

               In determining Hours of Service, an Employee who is employed
         by the Company on other than an hourly-rated basis shall be credited
         with ten (10) Hours of Service per day for each day the Employee would,
         if hourly-rated, be credited with service pursuant to clause (i) of the
         first sentence of this Section. If an Employee is paid for reasons
         other than the performance of duties pursuant to clause (ii) of the
         first sentence of this Section: (i) in the case of a payment made or
         due which is calculated on the basis of units of time, an Employee
         shall be credited with the number of regularly scheduled working hours
         included in the units of time on the basis of which the payment is
         calculated; and (ii) an Employee without a regular work schedule shall
         be credited with eight (8) Hours of Service per day (to a maximum of
         forty (40) Hours of Service per week) for each day that the Employee is
         so paid.

               (d) Hours of Service shall not be credited for the performance of
         duties for any entity prior to the time of acquisition of fifty percent
         of the voting or other ownership interest of such entity by Coastal.

         1.18  "Investment Fund" or "Fund" means any fund described in this
Plan.

                                       3

<PAGE>

         1.19  "Matching Contributions" means amounts contributed by the Company
pursuant to provisions of the Plan.

         1.20  "Matching Contributions Account" means the record of money and
assets held by the Foundation for an individual Participant or Beneficiary
pursuant to the provisions of the Plan derived from Matching Contributions.

         1.21  "Normal Retirement Date" means the date a Participant attains age
62.

         1.22  "Participant" means an Employee who becomes a Participant
under the provisions of the Plan. A former Employee or Beneficiary who has no
vested Adjusted Balance in any account under the Plan is not a Participant.

         1.23  "Plan" means Coastal Aruba Refining Company N.V. Thrift Plan.

         1.24  "Plan Year" means the fiscal year of the Company, which is
currently designated as the twelve-month period from January through December of
each year. Any other twelve consecutive month period that may hereafter be
designated as the fiscal year of the Company shall be the Plan Year.

         1.25  "Related Employer" means any corporation in which Coastal owns,
directly or indirectly, eighty percent or more of the outstanding voting
securities.

         1.26  "Related Plan" means any other defined contribution
Plan maintained by the Company or by any Related Employer.

         1.27  "Service" means the number of Employment Years, commencing
with the Employment Year in which an Employee is initially employed and ending
with the Employment Year in which a Break in Service occurs, during which the
Employee accrues at least 1,000 Hours of Service. Without regard to the
preceding provisions of this Section, a Participant's years of Service after a
period of five consecutive one-year Breaks in Service shall be disregarded for
purposes of determining his nonforfeitable interest in his Company Matching
Contributions Account as of the Valuation Date coincident with or next preceding
the date he incurs such five consecutive one-year Breaks in Service. For
purposes of determining eligibility to participate in the Plan only, Service
during the initial Employment Year shall be based on the initial date of hire or
date of rehire, as is appropriate, and, for subsequent Employment Years, Service
shall be determined based upon the Plan Year in lieu of the Employment Year.

         1.28  "Subsidiary" means any corporation or unincorporated trade,
business or partnership in which Coastal owns, directly or indirectly, fifty
percent of the outstanding voting securities in such Corporation or fifty
percent of the ownership interest in such unincorporated entity.

         1.29  "Valuation Date" means the last business day of each
calendar month and such other date, if any, as shall be selected by the
Administrator.

                                       4

<PAGE>

                                   ARTICLE II
                                  PARTICIPATION

         2.1   Eligibility. Each Employee is eligible to participate in the
Plan as of the Entry Date of such Employee or the first day of any pay period of
such Employee which is subsequent to such Entry Date.

         2.2   Participation. To participate, an eligible Employee must submit a
written election to participate to the Administrator on a form provided by or
acceptable to the Administrator.

         2.3   Reemployment of a Participant. If an Employee who has
satisfied the eligibility requirements of the Plan shall incur a Break in
Service and shall thereafter be employed by the Company, he shall again become
eligible to participate under the Plan on the date of his resumption of
employment.

         2.4   Discontinuance of Contributions. To discontinue contributions to
the Plan, a Participant must submit a written election to discontinue
contributions to the Administrator on a form provided by or acceptable to the
Administrator. Such discontinuance may be effective the first day of any pay
period of such Participant subsequent to its receipt by the Administrator. Such
discontinuance must be effective for at least twelve weeks.

                                  ARTICLE III
                                  CONTRIBUTIONS

         3.1   Employee Contributions. Each Participant may elect to contribute
from two percent (2%) to eight percent (8%) in increments of one percent (1%) of
the Basic Compensation of such Participant to the Plan.

         3.2   Maximum Contribution.

               (a) The total percentage of Basic Compensation contributed to
         the Plan for a Participant pursuant to an Employee Contribution
         election and eligible for Company Matching Contribution shall not
         exceed two percent during the first twenty-four months of Active
         Participation, four percent during the twenty-fifth through the
         forty-eighth month of Active Participation, six percent during the
         forty-ninth through the seventy-second month of Active Participation
         and eight percent for months of Active Participation thereafter.

               (b)  In addition to the amount eligible for Company Matching
         Contribution, a Participant who has less than seventy-two months of
         Active Participation may contribute an additional amount to the Plan.
         Such additional amount is not eligible for the Company Matching
         Contribution. Such additional amount shall be in whole percentages of
         the Basic Compensation of the Participant and may not exceed the
         percentage by which eight percent exceeds the total percentage of Basic
         Compensation of such Participant which is eligible for the Company
         Matching Contribution.

                                       5

<PAGE>

         3.3   Matching Contributions.

               (a) For each Plan Year the Company shall contribute to the
         Foundation for each Participant a Matching Contribution in an amount
         equal to one hundred percent of the amount eligible for Company
         Matching Contribution pursuant to provisions of the Plan and designated
         by such Participant and deducted from his Basic Compensation through
         payroll deductions during such Plan Year. Matching Contributions shall
         be held in trust uninvested by the Company and shall not accrue
         earnings until remitted to the Foundation, which shall be as soon as
         practicable following the end of each payroll period.

               (b) Matching contributions to the Foundation under the Plan shall
         be made in cash or other property as the Company, in its discretion,
         shall determine.

         3.4   Exclusive Benefit of Employees. All contributions made
pursuant to the Plan shall be held by the Foundation for the exclusive benefit
of those Employees who are participants under the Plan, including former
Employees and their Beneficiaries, and shall be applied to provide benefits
under the Plan and to pay expenses of administration of the Plan and the
Foundation, to the extent that such expenses are not otherwise paid. At no time
prior to the satisfaction of all liabilities with respect to such Employees and
their Beneficiaries shall any part of the assets held by the Foundation (other
than such part as may be required to pay administration expenses and taxes) be
used for, or diverted to, purposes other than for the exclusive benefit of such
Employees and their Beneficiaries. However, without regard to the provisions of
this Section:

               (a) If a contribution or any portion thereof is made by the
         Company by a mistake of fact, the Foundation shall, upon written
         request of the Company, return the contribution or such portion to the
         Company within one year after the date of payment to the Foundation;
         and

               (b) Earnings attributable to amounts to be returned to the
         Company pursuant to subsection (a) above shall not be returned, and
         losses attributable to amounts to be returned pursuant to subsection
         (a) shall reduce the amount to be so returned.

                                   ARTICLE IV
                                INVESTMENT FUNDS

         4.1   Investment Funds. The Adjusted Balance of each Participant's
Employee Contributions Account and Matching Contributions Account will be
invested in the various Investment Funds as described in this article.

         4.2   Initial Investment. Employee Contributions received by the
Foundation may be initially invested in such short-term investment obligations
as selected from time to time pending investment in the Investment Funds
described in this Section. These deposits and earnings will be allocated between
the Investment Funds as of the Valuation Date next following receipt by the
Foundation of such deposits and earnings in accordance with Participants'
selection of Investment Funds.

                                       6

<PAGE>

         4.3   Investment Options.

               (a)  Matching Contributions shall be allocated to the Coastal
         Common Stock Fund.

               (b) (i) Employee Contributions which are eligible for Company
         Matching Contributions shall be allocated, pursuant to each
         Participant's written election, to the Coastal Common Stock Fund, the
         Diversified Fund and the Interest Income Fund. A minimum of twenty-five
         percent of the Employee Contributions must be allocated to the Coastal
         Common Stock Fund. Allocations to the various funds must be in
         multiples of five percent.

                   (ii) In default of any Participant's written election, such
               contributions will be invested in the Coastal Common Stock Fund
               until a form designating a different Investment Fund is submitted
               to the Administrator.

                   (iii) Employee Contributions which are not eligible for
               Company Matching Contributions shall be invested in the Coastal
               Common Stock Fund.

               (c)  Each Participant shall have the right to file a maximum of
         four written forms per Plan Year with the Administrator modifying his
         election for investment made with respect to subsequent Employee
         Contributions under the Plan. Such investment elections shall be
         effective as of the first day of either a calendar month or a pay
         period as is determined by the Administrator on a uniform basis. Such
         investment elections must be received by the Administrator prior to the
         first day of the period for which such election is effective.

               (d)  Each Participant shall have the right once each Plan Year to
         file a written form with the Administrator directing that the portion
         of Employee Contributions Account attributable to contributions which
         were eligible for Company Matching Contributions, held in the Common
         Stock Fund, the Diversified Fund, and/or the Interest Income Fund be
         transferred, in whole or in part, to any other of such Funds. This
         direction shall be made by designating the percentage of the Adjusted
         Balance of such Accounts that is to be transferred to such other Funds.
         Such a reinvestment election may be effective as of any Valuation Date
         provided that such election is received by the Administrator at least
         five days before such Valuation Date.

               (e)  In general, the process for purchase and sale of stock and
         other investments is as described herein. When a Participant requests a
         transfer among funds, the Account Balance of the Participant will
         indicate the transfer out of one fund and into the other fund as of the
         Valuation Date selected by the Participant.

                    The amount transferred from a stock fund is determined as
         described herein in subsection (f) of this Section.

                                       7

<PAGE>

                    Any amount transferred to the Coastal Common Stock Fund is
         entered as cash awaiting investment and stock is allocated as of the
         next Valuation Date. See subsection (h) of this Section.

                    Any amount transferred to or from the Interest Income Fund
         or the Diversified Fund is entered or removed, respectively, as of the
         Valuation Date selected by the Participant for such transfer. This
         differs from transactions involving the Coastal Common Stock Fund since
         the Interest Income Fund and Diversified Fund do not have a cash
         awaiting investment account.

               (f)  Sale of Stock.  Sale of Coastal Common Stock from an account
         is considered to have occurred as of the Valuation Date and the
         Participant directing the sale will generally receive the closing price
         on that day. The closing price is the "Close" price for New York Stock
         Exchange Composite Transactions as reported in "The Wall Street
         Journal" or, if not so reported, the closing price as determined by the
         Administrator from independent reporting sources. The shares being sold
         by the Participant are purchased by the Foundation from the Participant
         at the closing price. The shares are then available as part of the
         "purchase pool" discussed below, for allocation to the accounts of
         Participants who purchase shares through contribution or transfer of
         funds. In the event that the volume of sales by Participants exceeds
         the anticipated need of the Plan for Coastal Common Stock, the
         Foundation may sell the stock which exceeds the anticipated need of the
         Plan. Such sales will be in the open market and the price received by
         the Foundation may vary substantially from the closing price on the
         Valuation Date. When such market sales occur, the price received by a
         Participant for sale of Coastal Common Stack in his account will be the
         average sale price of shares retained by the Foundation at closing
         market price on the Valuation Date and the actual sale price-of-shares
         sold on the market. This means that a Participant making a withdrawal
         of cash or a transfer among funds may receive a price per share which
         is less than or greater than the closing market price on the Valuation
         Date.

               (g)  Purchase of Stock.  The purchase price of shares of Coastal
         Common Stock allocated to the account of a Participant is an average
         purchase price of shares which are, for convenience, called a "purchase
         pool". The purchase pool consists of shares of Coastal Common Stock
         retained by the Foundation from the accounts of Participants who sell
         shares of Coastal Common Stock due to transfers among funds or
         withdrawal of cash from the Plan plus-shares purchased by the
         Foundation in the open market. The purchase pool price for any end of
         month allocation is the average price of all shares in the purchase
         pool. Since the Foundation purchases shares of Coastal Common Stock in
         the market as needed for allocation, the Participant cannot determine
         in advance the purchase pool price. The Foundation does not purchase
         stock from Coastal and Coastal does not donate stock to the Plan. All
         purchases and sales involve parties other than Coastal.

               (h)  Cash Awaiting Investment.  The Coastal Common Stock Fund is
         to be invested in the common stock of Coastal.

                                       8

<PAGE>

                    Any funds which have not been invested in Coastal Common
         Stock are described in the account of a Participant as "cash awaiting
         investment". Any transfer to a stock fund as of a Valuation Date will
         be shown as cash awaiting investment. This amount will be used as the
         basis for allocation of stock as of the following Valuation Date. This
         allocation is made using the purchase pool price for the Valuation Date
         the allocation-is-made. For example, if a Participant requests that
         1,000 Aruban florins (Afl) be transferred from the Interest Income Fund
         to the Coastal Common Stock Fund as of the February Valuation Date, the
         account of the Participant will reflect (1) a removal of 1,000 Afl from
         Interest Income Fund as of the February Valuation Date, (2) cash
         awaiting investment of 1,000 Afl in the Coastal Common Stock Fund as of
         the February Valuation Date, (3) cash awaiting investment of 0 Afl as
         of the March Valuation Date, and (4) number of shares of stock which
         1,000 Afl purchased at the purchase pool price as of the March
         Valuation Date.

                    Cash awaiting investment is invested on a short term basis
         pending purchase of stock. Earnings from such investments are allocated
         to accounts of Participants based upon the amount of cash awaiting
         investment for the period.

                    (i)  Allocation of Earnings. The Interest Income Fund may
         include contracts with insurance companies which pay different rates of
         interest, bonds, fixed income securities, bank accounts, certificates
         of deposit and short term investments. The earnings are comingled and
         allocated to each account based on the Account Balance as of the prior
         Valuation Date. For example, March earnings are allocated based on the
         Participant Account Balance as of the end of February. Then current
         contributions are added to give the total value as of the March
         Valuation Date.

                         Since processing of withdrawals can take 30 to 90 days,
         the funds being withdrawn do not receive an allocation of interest
         during that period of processing.

                         Earnings for the Diversified Fund are handled in the
         same general way as the Interest Income Fund. However, in the
         Diversified Fund, the value of the unit reflects the change in value
         due to both earnings and market price changes.

                    (j)  The Administrator will maintain individual accounts
         representing the interests of Participants in the several investment
         funds.

         4.4    Description of Funds.

               (a)  The Coastal Common Stock Fund.  This Fund shall be invested
         in common stock of Coastal. Cash dividends on Coastal Common Stock
         shall be invested in Coastal Common Stock.

               (b)  Interest Income Fund. The Interest Income Fund is an
         unsegregated fund invested in interest bearing investments such as
         bonds, notes, debentures, savings accounts, savings certificates,
         commercial paper, deposit accounts maintained by one or more legal
         reserve life insurance companies which provide for the payment of fixed
         or

                                       9

<PAGE>

         variable rates of interest for specified periods of time, and other
         similar types of investments. A portion of the fund may be retained in
         cash.

               (c)  Diversified Fund. The Diversified Fund is an unsegregated
         fund invested in capital stocks of issuers (other than Coastal, any
         related Employer, or any Subsidiary thereof), notes, bonds, debentures,
         and other similar types of investments. A portion of the fund may be
         retained in cash or invested temporarily in commercial paper,
         certificates of deposit or savings accounts.

                                   ARTICLE V
                      ALLOCATIONS TO PARTICIPANTS' ACCOUNTS

         5.1   Separate Accounts. The Administrator shall create and maintain
such separate accounts for each Participant as shall be needed, including an
Employee Contribution Account and Matching Contributions Account. Such accounts
are primarily for accounting purposes and do not require a segregation of the
assets held by the Foundation. The Administrator may delegate the responsibility
for the maintenance of the accounts.

         5.2   Allocation of Employee Contribution Accounts. Employee
Contributions made pursuant to an election of a Participant shall be allocated
to his Employee Contribution Account as of the Valuation Date coincident with or
next following the pay date with respect to which such contributions are made
(even though receipt of such contributions by the Foundation may take place
after such date).

         5.3   Allocation of Matching Contributions. Matching Contributions
made on behalf of a Participant shall be allocated to his Matching Contributions
Account as of each Valuation Date (even though receipt of the Matching
Contributions by the Foundation may take place after such date).

         5.4   Vesting.
               (a)  Each Participant shall have a vested interest in the
         Adjusted Balance of his Matching Contributions Account in accordance
         with the following formula:

               <Table>
               <Caption>
                   Calendar Months of              Vested         Forfeitable
                  Active Participation           Percentage        Percentage
                  --------------------           ----------       -----------
                  <S>                            <C>              <C>
                  Less than Twelve Months             0%              100%
                  Twelve Months                      20%               80%
                  Twenty-four Months                 40%               60%
                  Thirty-six Months                  60%               40%
                  Forty-eight Months                 80%               20%
                  Sixty Months                      100%                0%
               </Table>

               (b)  On reaching his Normal Retirement Date, a Participant shall
         be one hundred percent (100%) vested in the Adjusted Balance of his
         Matching Contributions Account.

                                       10

<PAGE>

               (c)  In the event a Participant dies or becomes totally and
         permanently disabled within the meaning of the Plan while an Employee,
         he shall be one hundred percent (100%) vested in the Adjusted Balance
         of his Matching Contributions Account as of the date of his death or
         disability.

               (d)  In the event the Plan is terminated, or upon the complete
         discontinuance of Company contributions to the Plan, each Participant
         shall become one hundred percent (100%) vested in the Adjusted Balance
         of his Matching Contribution Account, provided that the forfeitable
         percentage of the unpaid balances of such Accounts of a Participant
         whose employment has terminated and who has incurred a one year Break
         in Service on the date of such Plan termination or discontinuance shall
         be forfeited on the effective date of such termination on
         discontinuance of contributions and shall not be vested.

               (e)  Each Participant shall at all times be fully vested in the
         Adjusted Balances of his Employee Contribution Account.

               (f)  Upon reemployment, a Participant shall be credited with his
         prior months of Active Participation for purposes of vesting with
         respect to Matching Contributions for Service after such reemployment
         date. This reinstatement does not apply to any amount forfeited under
         provisions of the Plan.

         5.5 Allocations and Adjustments to Accounts. As of each Valuation Date,
the Administrator shall determine, on an accrual basis of accounting, the
Adjusted Balance of the Account of each Participant in the following manner:

               (a)  As soon as feasible after each Valuation Date, the
         Administrator shall determine the earnings and the amount of any
         realized or unrealized appreciation or depreciation in the fair market
         value of each of the Investment Funds, determined as of the Valuation
         Date. In determining such value, the Administrator shall use such
         generally accepted methods and bases as the Administrator, in its
         discretion, shall deem advisable. The judgment of the Administrator as
         to the fair market value of any asset shall be presumptively conclusive
         and binding on all persons.

               (b)  The Account Balances shall be adjusted to reflect the
         changes in the number of shares, amount of cash and short-term
         investments, units or dollar value as is appropriate for each
         Investment Fund.

                    The Coastal Common Stock Fund is maintained in shares of
         Coastal Common Stock and cash and short-term investments.

                    The Diversified Fund shall be accounted for on a unit
         basis and the number of units shall not be adjusted to reflect changes
         in the market value of assets held by such Fund.

                    The Interest Income Fund shall be accounted for on a cash
         basis. Each account balance shall be adjusted by an amount equal to the
         prorata increase or decrease in fair market value of the assets of each
         such Fund.

                                       11

<PAGE>

               (c)  Each account shall then be further adjusted by adding to it
         the amount of contributions allocable thereto for each Participant's
         account for the appropriate period ending on that Valuation Date.

               (d)  Following the above adjustments to each account there shall
         be deducted from each account the distributions and withdrawals made
         therefrom as of such Valuation Date.

         5.6 Special Allocation Provisions. Whenever an account balance is
distributable in installments, the undistributed balance of such account shall
participate in the valuation until the Valuation Date as of which such account
balance is fully distributed.

                                   ARTICLE VI
                               PAYMENT OF BENEFITS

         6.1   General Requirements.

               (a)  Withdrawals are effective on a Valuation Date, provided the
         Administrator receives a written withdrawal request at least five days
         prior to the Valuation Date.

               (b)  Only one withdrawal may be made per calendar year except
         that, in the year the Participant terminates employment, both a
         withdrawal during employment and a withdrawal due to termination may be
         made.

               (c)  The Company shall not make any contribution to the
         Foundation for the account of a Participant with respect to any period
         the Participant is not permitted to contribute to the Foundation.

         6.2   Payments on Death.

               (a)  Upon the death of a Participant, distribution shall be made
         pursuant to written direction from the Beneficiary of such Participant
         in accordance with the withdrawal provisions of the Plan.

               (b)  Each Participant may designate a Beneficiary to receive the
         death benefit payable under provisions of the Plan. Such designation
         shall be honored only if it is valid under the laws of Aruba.

               (c)  If a Participant fails to designate a Beneficiary, if such
         designation is for any reason illegal or ineffective, or if no
         Beneficiary survives the Participant, his death benefits otherwise
         payable shall be paid pursuant to the provisions of the laws of Aruba.

               (d)  The Administrator may determine the identity of the
         distributees of any death benefit payable under the Plan and in so
         doing may act and rely upon the declaration of inheritance issued by a
         notary public in Aruba and upon any evidence believed by it to be
         sufficient.

                                       12

<PAGE>

         6.3   Payments on Disability. A Participant who is totally and
permanently disabled may request a withdrawal of the Adjusted Balance of the
Participant's accounts in a method provided in the Plan. For purposes of this
section "total and permanent disability" means a physical or mental condition
which is expected to render the Participant permanently unable to perform duties
of any gainful employment based on the education, training and background of the
Participant. The determination of the existence of such disability shall be made
by the Administrator and shall be final and binding upon the Participant and all
other parties. The Administrator may require the submission of such medical
evidence as it may deem necessary in order to arrive at its determination. The
Administrator's determination of the existence of a disability will be made with
reference to the nature of the injury without regard to the period the
Participant is absent from work.

         6.4   Payments on Termination. Upon the termination of a Participant's
employment with the Company for any reason other than death, the Participant may
request a withdrawal of the Adjusted Balance of his Employee Contributions
Account, if any, and the vested portion of the Adjusted Balance of his Matching
Contributions Account, if any, in a method provided in the Plan.

               Upon the termination of a Participant's employment with the
Company for any reason other than death, the nonvested portion, if any, of the
Adjusted Balance of his Matching Contributions Account shall be forfeited.
However, such forfeited amount shall remain subject to reinstatement and further
vesting under provisions of the Plan if the Participant is reemployed before he
incurs five consecutive one-year Breaks in Service. If such Participant is
reemployed before he incurs five consecutive one-year Breaks in Service, any
amount forfeited shall be restored upon repayment by such Participant of the
full amount withdrawn after termination of employment. Any such repayment must
be made before the earlier of five years after the first day the employee is
subsequently reemployed or the close of the first period of five consecutive
one-year Breaks in Service commencing after the withdrawal. Upon reemployment
prior to incurring five consecutive one-year Breaks in Service, the monetary
value of the forfeited amount shall be restored without adjustment for gains or
losses and shall be subject to further vesting on a prospective basis pursuant
to Plan provisions.

         6.5   Methods of Payment.

               (a)  Whenever the Administrator shall direct the payment to a
         Participant or his Beneficiary upon termination of the Participant's
         employment (whether by reason of death or for other reasons), the
         Administrator shall direct the payment of the Employee Contributions
         Account, and the vested portion of the Adjusted Balance of his Matching
         Contributions Account, to or for the benefit of the Participant or his
         Beneficiary, in cash or wholly or partly in kind, in any of the
         following ways as the Participant shall determine (or, if a deceased
         former Participant shall have failed to select a method of payment, as
         his Beneficiary shall determine):

                   (i)  In a single lump sum, provided that distributions in
               kind shall be valued at the fair market value of the assets
               distributed on the Valuation Date as of which such distribution
               is made; or

                                       13

<PAGE>

                   (ii) Subject to provisions of the Plan in annual installments
               computed pursuant to the method specified in this subsection (a)
               commencing, prospectively, at any time after termination of the
               Participant's employment and continuing over a period that
               complies with subsection (c).

               Annual installments distributed pursuant to subsection (ii) shall
be in an amount equal to the value of the account balances of the Participant in
the Plan divided by the number of annual installments remaining to be made. An
election for annual installments may be cancelled prospectively up to five days
before the Valuation Date for any annual installment.

               (b)  Unless the Participant elects otherwise, payments shall be
         made or commence in the case of a Participant whose employment
         terminates for any reason, not more than sixty days after the close of
         the Plan Year in which the latest of the following occurs:

                   (i)   the Participant attains the age of sixty-two years;

                   (ii)  the tenth anniversary of the year in which the
               Participant commenced participation in the Plan; or

                   (iii) the Participant terminates service with the Company and
               Related Employers.

                   Notwithstanding the preceding sentence, if the Participant's
         vested interest in his accounts exceeds U.S. $3,500, or its equivalent
         in Aruban florins, then such distribution shall not be made to the
         Participant at any time before his sixty-second birthday without his
         written consent.

               (c)  Notwithstanding anything to the contrary contained elsewhere
         in the Plan:

                   (i)   A Participant's benefits under the Plan will:

                        (1)   be distributed to him not later than the Required
                   Distribution Date (as defined in subsection (iii)), or

                        (2)   be distributed commencing not later than the
                   Required Distribution Date over a period not extending beyond
                   the life expectancy of the Participant or the life expectancy
                   of the Participant and his Beneficiary.

                   (ii)  For purposes of this subsection (c), the Required
               Distribution Date means April 1 of the calendar year following
               the calendar year in which the Participant attains age 70-1/2.

         6.6   Distribution of Unallocated Employee Contributions. If on
the date of termination of a Participant's employment the Company shall be
holding Employee Contributions made by the Participant, but not yet allocated to
his Employee Contribution Account, the Administrator shall direct the Company to
pay such amounts either directly to the

                                       14
<PAGE>

Participant (or his Beneficiary, as the case may be) or to the Foundation, to be
distributed by the Foundation in accordance with the method of distribution
determined under the Plan.

         6.7   Administrative Powers Relating to Payments. If a Participant
or Beneficiary is under a legal disability or, by reasons of illness or mental
or physical disability, is in the opinion of the Administrator unable properly
to attend to his personal financial matters, such payments may be made at the
direction of the Administrator as follows:

                   (i)   directly to such Participant or Beneficiary;

                   (ii)  to the legal representative of such Participant or
               Beneficiary; or

                   (iii) to some relative by blood or marriage, or friend, for
               the benefit of such Participant or Beneficiary.

               Any payment made pursuant to this section shall be in complete
         discharge of the obligation therefore under the Plan.

         6.8   Withdrawals from Participant Contribution Account.

               (a)  As of any Valuation Date, a Participant may withdraw from
         his Employee Contribution Account an amount not in excess of the
         Adjusted Balance thereof.

               (b)  The Participant may not make Employee Contributions until a
         period of twenty-six weeks has elapsed since the prior withdrawal.

               (c)  For a Participant with ten or more years of Active
         Participation, the preceding subsection (a) shall also apply to his
         Matching Contribution Account.

         6.9   Ten Year Withdrawal.

               (a)  After ten years of Active Participation in the Plan, each
         Participant may elect once during each such subsequent ten years of
         Active Participation to withdraw any portion of such Participant's
         Account Balances.

               (b)  A Participant may continue to contribute to the Plan after
         a ten year withdrawal.

               (c)  Unless the Participant specifies otherwise, withdrawals
         shall be made first from the portion of the Account Balances
         attributable to Employee Contributions of the participant, and next
         from the portion attributable to the Company Matching Contributions
         which are eligible for withdrawal.

         6.10  Participant to Elect Source of Funds for Distribution. A
Participant or, where appropriate, a Beneficiary may designate the accounting
fund from which a distribution of assets from the Foundation are to be made
except as provided elsewhere in the Plan.

                                       15

<PAGE>

                                  ARTICLE VII
                               PLAN ADMINISTRATION

         7.1   Board Responsibility.

               (a)  The Board shall be responsible for and shall control and
         manage the operation and administration of the Plan. It shall be the
         Administrator and shall be subject to service of process on behalf of
         the Plan. The Board may, in its discretion, appoint a Committee of one
         or more persons, to be known as the "Plan Administrative Committee" to
         act as its agent in performing these duties. In the event that the
         Board chooses not to appoint such a Committee, all references in the
         Plan to the Committee, (except for such references in this Section)
         shall mean the Board. The members of the Committee shall serve at the
         pleasure of the Board; they may be officers, directors, or employees of
         the Company or any other individuals. Any member may resign by
         delivering his written resignation to the Board and to the Committee.
         Vacancies in the Committee arising by resignation, death, removal or
         otherwise, shall be filled by the Board. The Board shall advise the
         Company in writing of the names of the members of the Committee and of
         changes in membership from time to time.

               (b)  Except as specified otherwise in the Plan, any action
         permitted or required with respect to the Plan shall be performed by
         the Board or a member of the Board authorized to act by the entire
         Board.

         7.2   Powers and Duties of Administrator.

               (a)  The Administrator shall administer the Plan in accordance
         with its terms and shall have all the powers necessary to carry out the
         provisions of the Plan. The Administrator shall direct all payments
         which shall be made pursuant to the Plan. The Administrator shall
         interpret the Plan and shall determine all questions arising in the
         administration, interpretation, and application of the Plan, including
         but not limited to, questions of eligibility and the status of rights
         to Participants, Beneficiaries and other persons. Any such
         determination by the Administrator shall presumptively be conclusive
         and binding on all persons. The regularly kept records of the Board
         shall be conclusive and binding upon all persons with respect to an
         Employee's Hours of Service, date and length of employment, time and
         amount of Basic Compensation and the manner of payment thereof, type
         and length of any absence from work and all other matters contained
         therein relating to Employees. All rules and determinations of the
         Administrator shall be uniformly and consistently applied to all
         persons in similar circumstances. The Committee shall have the powers
         and duties of the Administrator to the extent the Board designates a
         Committee and directs it to exercise such powers and perform such
         duties.

               (b)  The Administrator has discretionary authority to determine
         eligibility for benefits and to construe and interpret the terms of the
         Plan. The purpose of this provision is to establish the standard of
         judicial review as the arbitrary and capricious standard and not the de
         novo standard, to provide for deference to the decisions of the
         Administrator,

                                       16

<PAGE>

         and to provide the Administrator with the flexibility to administer the
         Plan in an efficient manner.

               (c)  When a misstatement or mistake of fact becomes known, the
         Administrator shall make such adjustments as it determines to be
         practical and equitable.

         7.3   Organization and Operation of Committee.

               (a)  The Committee shall act by majority vote of its members at
         the time in office, and such action may be taken either by vote at a
         meeting or in writing without a meeting. The signatures of a majority
         of the members will be sufficient to authorize Committee action. A
         Committee member shall not participate in discussions of or vote upon
         matters pertaining to his own participation in the Plan.

               (b)  The Committee may authorize any of its members or any other
         person to execute any document or documents on behalf of the Committee,
         in which event the Committee shall notify the Board in writing of such
         action and the name or names of such member or person. The Board
         thereafter shall accept and rely upon any document executed by such
         members or persons as representing action by the Committee, until the
         Committee shall file with the Board a written revocation of such
         designation.

               (c)  The Committee may adopt such bylaws and regulations as it
         deems desirable for the conduct of its affairs and, with the consent of
         the Administrator, may appoint such accountants, counsel, specialists,
         and other persons as it deems necessary or desirable in connection with
         the administration of this Plan. The Committee shall be entitled to
         rely conclusively upon, and shall be fully protected in any action
         taken by it in good faith in relying upon, any opinions or reports
         which shall be furnished to it by any such accountant, counsel,
         specialist or other person.

         7.4   Records and Records of Committee. The Committee shall keep a
record of all its proceedings and acts and shall keep all such books of account,
records, and other data as may be necessary for proper administration of the
Plan. The Committee shall, when appropriate, notify the Board and the Company of
any action taken by the Committee and, when required, shall notify any other
interested person or persons.

         7.5   Claims Procedure. Claims for benefits under the Plan shall
be made in writing to the Committee. In the event a claim for benefits is wholly
or partially denied by the Committee, the Committee shall, within a reasonable
period of time, but not later than ninety (90) days after receipt of the claim,
notify the claimant in writing of the denial of the claim. If the claimant shall
not be notified in writing of a decision with respect to the claim within ninety
(90) days after it is received by the Committee, the claim shall be deemed
denied. A notice of denial shall be written in a manner calculated to be
understood by the claimant, and shall contain (i) the specific reason or reasons
for denial of the claim, (ii) a specific reference to the pertinent Plan
provisions upon which the denial is based, (iii) a description of any additional
material or information necessary for the claimant to perfect the claim,
together with an explanation of why such material or information is necessary,
and (iv) an explanation of the Plan's review procedure. Within sixty (60) days
of the receipt by the claimant of the written

                                       17

<PAGE>

notice of denial of the claim, or within sixty (60) days after the claim is
deemed denied as set forth above, if applicable, the claimant may file a written
request with the Committee that it conduct a full end fair review of the denial
of the claimant's claim for benefits including the conducting of a hearing, if
necessary, by the Committee. In connection with the claimant's appeal of the
denial of his benefit, the claimant may review pertinent documents and may
submit issues and comments in writing. The Committee shall render a decision on
the claim appeal promptly, but not later than sixty (60) days after the receipt
of the claimant's request for review, unless special circumstances (such as the
need to hold a hearing, if necessary) required an extension of time for
processing; in which case the sixty (60) day period may be extended to one
hundred and twenty (120) days. The Committee shall notify the claimant in
writing of any such extension. The decision upon review shall (i) include
specific reasons for the decision, (ii) be written in a manner calculated to be
understood by the claimant and (iii) contain specific references to the
pertinent Plan provisions upon which the decision is based.

         7.6   Compensation and Expenses of the Board arid the Committee.
The members of the Board and of the Committee shall serve without compensation
for services as such, but all proper expenses incurred by the Board or the
Committee incident to the functioning of the Plan shall be paid by the Company;
provided, however, that reasonable compensation or expenses of administering the
Plan shall be borne by, and paid out of the Plan assets, except to the extent
that the Company elects to have such expenses paid directly by the Company.

         7.7   Indemnity, of Board and Committee Members. The Company shall
indemnify and defend each member of the Board and the Committee and each of its
other employees against any and all claims, loss, damages, expenses (including
reasonable attorney fees), and liability arising in connection with the
administration of the Plan, except when the same is judicially determined to be
due to the gross negligence or willful misconduct of such member or other
employee.

                                  ARTICLE VIII
                                   FOUNDATION

         8.1   Foundation Agreement. A Foundation has been created and will
be maintained for the purposes of the Plan. All contributions under the Plan
will be paid into the Foundation. The assets of the Foundation will be held,
invested and disposed of by the Foundation from time to time acting in
accordance with the Plan. All benefits payable under the Plan will be paid from
the assets of the Foundation.

         8.2   Exclusive Benefits of Employees.

               (a)  All contributions made pursuant to the Plan shall be held by
         the Foundation in accordance with the terms of the Plan for the
         exclusive benefit of those Employees who are Participants under the
         Plan, including former Employees and their Beneficiaries, and shall be
         applied to provide benefits under the Plan and to pay expenses of
         administration of the Plan and the Foundation, to the extent that such
         expenses are not otherwise paid.

                                       18
<PAGE>

               (b)  Compensation of the Board and expenses of administering the
         Plan, including reasonable brokers commissions and reasonable counsel
         fees, shall be paid by the Company provided that the Company may
         withhold from amounts due the Plan (or the Plan may pay) so much of the
         amounts paid or incurred during the taxable year as expenses of
         administering the Plan as are not paid by the Company. All taxes of any
         and all kinds whatsoever that may be levied or assessed under existing
         or future laws upon, or in respect of, the assets of the Foundation or
         the income thereof shall be paid from the assets of the Foundation.

         8.3   Appointment of Custodian and Investment Managers. The Board
may appoint one or more custodians and investment managers. Each custodian and
investment manager shall, upon acceptance of the Plan, be bound by its terms.
The provisions of the Plan applicable to custodians or investment managers shall
apply to each custodian or investment manager with respect to the assets
assigned to it pursuant to the provisions of the Plan.

               Each custodian or investment manager shall be responsible for
assets during the time that such assets are assigned to it and shall not be
responsible for assets during a time when such assets are assigned to another
custodian or investment manager. Each custodian or investment manager shall be
liable with respect to its own acts, but not with respect to the act of any
other custodian or investment manager.

               Upon appointment, each investment manager shall certify and
acknowledge, in writing, to the Board that he has a copy of the Plan, that he is
a fiduciary with respect to such Plan, and that he has assumed the duties and
responsibilities conferred upon him by the Board. The duties, responsibilities
and authority of any investment manager may be revoked or modified by the Board
at any time by written notice to such investment manager. Any investment manager
duly appointed and authorized by the Board shall, during the period of his
appointment, possess fully and absolutely those powers, rights and duties of the
Foundation to the extent delegated by the Board and to the extent permissible
under the terms of the Plan) with respect to the investment or reinvestment of
that portion of the Plan assets over which such investment manager has
investment management authority.

         8.4   Assignment of Assets to Custodian. The Administrator shall
have the power to assign all or a portion of the assets of the Foundation to any
custodian. The Administrator shall provide written notice at least thirty days
in advance to a custodian of the Administrator's decision to transfer any assets
from such custodian to another custodian. Any transfer of assets among
custodians shall occur as of a Valuation Date, unless all of the custodians
involved in the asset transfer consent to another date.

         8.5   Assignment of Assets to Investment Managers. With respect to
assets assigned to it by the Administrator, each custodian may assign all or a
portion of such assets to an investment manager, provided such assignment is
consistent with the duties, responsibilities and authorities granted to such
investment manager by the Administrator. The custodian may retain custody of the
indicia of ownership of such assets.

         8.6   Voting Company Stock-Annual or Special Meeting. Before each
annual or special meeting of the stockholders of The Coastal Corporation, the
Board shall utilize its best-

                                       19

<PAGE>

efforts to timely distribute or cause to be distributed to each Participant (or,
in the event of his death, his Beneficiary) a copy of the proxy solicitation
material for such meeting, and request written instructions from the
Participants as to the voting of the Coastal Common Stock credited to their
accounts. Such instructions shall be on a confidential basis. The Board shall
exercise the voting rights on such stock credited to accounts of Participants in
accordance with instructions of such Participants, The Board shall exercise
voting rights on Coastal Common Stock credited to accounts of participants from
whom the Board does not receive instructions. The Board shall exercise the
voting rights on such stock which has not been credited to the accounts of
Participants as of the applicable record date for determination of holders of
such stock entitled to vote.

         8.7   Voting Company Stock-Tender or Exchange Offer. Each
participant (or, in the event of his death, his Beneficiary) shall have the
right, to the extent of shares of Coastal Common Stock allocated to the account
of the Participant under the Plan, to direct the Board in writing on a
confidential basis as to the manner in which to respond to a tender or exchange
offer with respect to such stock. The Board shall utilize its best efforts to
timely distribute or cause to be distributed to each Participant (or
Beneficiary) such information as will be distributed to shareholders of such
stock in connection with any such tender or exchange offer. If the Board shall
not receive timely direction from a Participant (or Beneficiary) as to the
manner in which to respond to such a tender or exchange offer, the Board shall
not tender or exchange any shares of such stock with respect to which such
Participant (or Beneficiary) has the right of direction. Shares of Coastal
Common Stock which have not been allocated to the account of a Participant shall
be tendered or exchanged by the Board in the same proportion as shares with
respect to which Participants (or Beneficiaries) have the right of direction are
tendered or exchanged.

                                   ARTICLE IX
                              LOANS TO PARTICIPANTS

         9.1   Loans. Loans to participants are not available under the Plan.

                                   ARTICLE X
                            AMENDMENT AND TERMINATION

         10.1  Amendment of Plan. The Board, only upon recommendation by the
Company, shall have the right to amend the Plan at anytime and from time to
time, and all Employees and persons claiming any interest hereunder shall be
bound thereby; provided, however, that no amendment shall have the effect of:

                   (i)   directly or indirectly divesting the interest of any
               Participant in any amount that he would have received had he
               terminated his employment with the Company immediately prior to
               the effective date of such amendment, or the interest of any
               Beneficiary as such interest existed immediately prior to the
               effective date of such amendment;

                   (ii)  directly or indirectly extending the vesting schedule
               set forth in the Plan used to determine the vested interest of a
               Participant on the effective date of the amendment;

                                       20
<PAGE>

                   (iii) vesting in the Company any right, title, or interest in
               or to any Plan assets except as provided in the Plan; or

                   (iv)  causing any part of the Plan assets to be used for any
               purpose other than for the exclusive benefit of the Participants
               and their Beneficiaries.

         10.2  Voluntary Termination of/or Permanent Discontinuance of
Contributions to the Plan. The Company expects the Plan to be permanent, but
since future conditions affecting the Company cannot be anticipated, the Company
shall have the right to terminate the Plan in whole or in part, or to
permanently discontinue contributions to the Plan, at any time by resolution of
its Board of Directors and by giving written notice of such termination or
permanent discontinuance to the Board. Such resolution shall specify the
effective date of termination or permanent discontinuance, which shall not be
earlier than the first day of the Plan Year which includes the date of the
resolution.

         10.3  Involuntary Termination of Plan. The Plan shall automatically
terminate if the Company is legally adjudicated as bankrupt, makes a general
assignment for the benefit of creditors, or is dissolved. In the event of the
merger or consolidation of the Company with or into any other corporation, or in
the event substantially all of the assets of the Company shall be transferred to
another corporation, the successor corporation resulting from the consolidation
or merging, or transfer of such assets, as the case may be, shall have the right
to adopt and continue the Plan and succeed to the position of the Company
hereunder. If, however, the Plan is not so adopted as of a date within ninety
(90) days after the effective date of such consolidation, merger or sale, the
Plan shall automatically be deemed terminated as of the effective date of such
transaction. Nothing in this Plan shall prevent the dissolution, liquidation,
consolidation or merger of the Company, or the sale or transfer of all or
substantially all of its assets.

         10.4  Payments on Termination of/or Permanent Discontinuance of
Contributions to the Plan. If the Plan is terminated as herein provided, or if
it should be partially terminated, or upon the complete discontinuance of
Company contributions to the Plan, the following procedure shall be followed,
except that, in the event of a partial termination, it shall be followed only in
cases of those Participants and Beneficiaries directly affected:

                   (i)   The Committee may continue to administer the Plan, but
               if it fails to do so, its records, books of account and other
               necessary data shall be turned over to the Board and the Board
               shall act on its own motion as hereinafter provided;

                   (ii)  Notwithstanding any other provisions of the Plan, all
               interests of the Participants shall become fully vested and
               nonforfeitable;

                   (iii) The value of the assets held by the Foundation and the
               shares of all Participants and Beneficiaries shall be determined
               as of the date of termination or discontinuance;

                   (iv)  Distribution to Participants and Beneficiaries shall be
               made at such time after termination of or discontinuance of
               contributions to the Plan as shall be determined by the Board not
               later than the time specified in the Plan; and

                                       21

<PAGE>
                   (v)   Any assets remaining after allocation to the accounts
               of Participants of all amounts due such Participants shall be
               distributed to the Company.

                                   ARTICLE XI
                                  MISCELLANEOUS

         11.1  Duty to Furnish Information and Documents. Participants and
their Beneficiaries must furnish to the Administrator and the Board such
evidence, data or information as the Administrator considers necessary or
desirable for the purpose of administering the Plan, and the provisions of the
Plan for each person are upon the condition that he will furnish promptly full,
true, and complete evidence, data and information requested by the
Administrator. All parties to, or claiming any interest under, the Plan hereby
agree to perform any and all acts, and to execute any and all documents and
papers, necessary or desirable for carrying out the provisions of the Plan.

         11.2  Annual Statements and Available Information. The Administrator
shall advise Employees of the eligibility requirements and benefits under the
Plan. As soon as practicable after making the fiscal year end valuation and
allocations provided for in the Plan, and at such other times as the
Administrator may determine, the Administrator shall provide each Participant,
and each former Participant (except former Participants who have no vested
Adjusted Balance) and Beneficiary (except former Beneficiaries who have no
vested Adjusted Balance) with respect to whom an account is maintained, with a
statement reflecting the current status of his accounts, including the Adjusted
Balance thereof. No Participant, except as necessary to administer the Plan,
shall have the right to inspect the records reflecting the account of any other
Participant. The Administrator shall make available for inspection at reasonable
times by Participants and Beneficiaries copies of the Plan, any amendments
thereto, the Plan summary, and all reports of Plan and Foundation operations
required by law.

         11.3  No Enlargement of Employment Rights. Nothing contained in the
Plan shall be construed as a contract of employment between the Company and any
person, nor shall the Plan be deemed to give any person the right to be retained
in the employ of the Company or limit the right of the Company to employ or
discharge any person with or without cause, or to discipline any Employee.
Matching Contributions are not wages or other compensation for purposes of (a)
determining or calculating compensation such as overtime, or (b) determining
Company contributions or Participant benefits under this or any other employee
benefit plan maintained by the Company.

         11.4  Applicable Law. All questions pertaining to the validity,
construction and administration of the Plan shall be determined in conformity
with the laws of Aruba.

         11.5  No Guarantee. Neither the Foundation, the Board, the
Committee, nor the Company in any way guarantees the assets of the Foundation
from loss or depreciation or the payment of any benefits which may be or become
due to any person from the Foundation. No Participant or other person shall have
any recourse against the Foundation, the Board, the Company or the Committee if
the assets of the Foundation are insufficient to provide Plan benefits in full.
Nothing herein contained shall be deemed to give any Participant, former

                                       22

<PAGE>

Participant, or Beneficiary an interest in any specific part of the assets of
the Foundation or any other interest except the right to receive benefits out of
the assets of the Foundation or in accordance with the provisions of the Plan.

         11.6  Unclaimed Funds. Each Participant shall keep the Administrator
informed of his current address and current address of his Beneficiary or
Beneficiaries. Neither the Company, the Committee nor the Board or Foundation
shall be obligated to search for the whereabouts of any person. If the location
of a Participant is not made known to the Administrator within three (3) years
after the date on which distribution of the Participant's account may be first
made, distribution may be made as though the Participant had died at the end of
the three-year period. If, within one additional year after such three-year
period has elapsed, or within three years after the actual death of a
Participant, the Administrator is unable to locate any individual who would
receive distribution under the Plan upon the death of the Participant pursuant
to provisions of the Plan, the Adjusted Balance in the participant's accounts
shall be disposed of in accordance with applicable laws.

         11.7  Merger or Consolidation of Plan. Any merger or consolidation
of the Plan with another Plan, or transfer of Plan assets or liabilities to
another plan, shall be effected in accordance with such government regulations,
if any, as may be issued in such manner that each Participant in the Plan would
receive, if the merged, consolidated or transferee plan were terminated
immediately following such event, a benefit which is equal to or greater than
the benefit he would have been entitled to receive if the Plan had terminated
immediately before such event.

         11.8  Interest Nontransferable. Except as provided under the laws
of Aruba, no interest of any person or entity in, or right to receive
distributions from, the Foundation shall be subject in any manner to sale,
transfer, assignment, pledge, attachment, garnishment, or other alienation or
encumbrance of any kind; nor may such interest or right to receive distributions
be taken, either voluntarily or involuntarily, for the satisfaction of the debts
of, or other obligations or claims against, such person or entity, including
claims in bankruptcy proceedings.

         11.9  Prudent Man Rule. Notwithstanding any other provision of
this Plan, the Board, the Committee and the Company shall exercise their powers
and discharge their duties under provisions of this Plan and Foundation for the
exclusive purpose of providing benefits to Employees and their Beneficiaries,
and shall act with the care, skill, prudence and diligence under the
circumstances that a prudent man acting in a like capacity and familiar with
such matters would use in the conduct of an enterprise of a like character and
with like aims. Subject to the terms of the Plan, and the preceding sentence,
the guard shall diversify investments of the Foundation so as to minimize the
risk of large losses, unless under the circumstances it is clearly prudent not
to do so.

         11.10 Limitations on Liability. Notwithstanding any of the
preceding provisions of the Plan, none of the Foundation, the Board, the
Company, the Committee and each individual acting as an employee or agent of
any; of them shall be liable to any Participant, former Participant or
Beneficiary for any claim, loss, liability or expense incurred in connection
with the Plan, except when the same shall have been judicially determined to be
due to the gross negligence or willful-misconduct of such person. The Company
shall indemnify and hold

                                       23

<PAGE>

harmless each individual acting as an employee or agent of the Company
(including Board or Committee members) from any and all claims, liabilities,
costs and expense (including attorney's fees) arising out of any actual or
alleged act or failure to-act with respect to the administration of the Plan,
except that no indemnification or defense shall be provided to any person with
respect to conduct which has been judicially determined, or agreed by the
parties, to have constituted bad faith or willful misconduct on the part of such
person, or to have resulted in his receipt of personal profit or advantage to
which he is not entitled.

         11.11 Headings. The headings in this Plan are inserted for convenience
of reference only and are not to be considered in construction of the provisions
thereof.

         11.12 Gender and Number. Except when otherwise required by the context,
any masculine terminology in this document shall include the feminine, and any
singular terminology shall include the plural.

         11.13 Extension of Plan to Related Employers.

               (a)  With the approval of the Board, only upon recommendation by
         the Company, any Related Employer or Subsidiary may adopt the Plan and
         qualify its Employees to become Participants thereunder by taking
         proper corporate action to adopt the Plan and making such-contributions
         to the Foundation as the board of directors of the Related Employer or
         Subsidiary may require.

               (b)  The Plan will terminate with respect to any Related Employer
         or Subsidiary that has adopted the Plan pursuant to this Section if the
         Related Employer or Subsidiary ceases to be a Related Employer or
         Subsidiary, revokes its adoption of the Plan by appropriate corporate
         action, permanently discontinues its contributions for its Employees,
         is judicially declared bankrupt, or makes a general assignment for the
         benefit of creditors. If the Plan is terminated or contributions are
         discontinued with respect to any Related Employer or Subsidiary, the
         provisions of the Plan shall apply to the interest in the Plan of
         persons who are, at the time of such event, the Employees of such
         Related Employer or Subsidiary.

               (c)  The terms Company and Employee in the Plan shall include any
         Related Employer or Subsidiary that has adopted the Plan pursuant to
         this Section and the Employees of such Related Employer or Subsidiary;
         provided, however, that the term Company shall not include any such
         Related Employer or Subsidiary where used in Articles VII or VIII of
         the Plan. The Administrator shall act as the agent for each Related
         Employer and Subsidiary that adopts the Plan for all purposes of
         administration thereof.

               (d)  Amendments and supplements to the Plan by the Board shall be
         binding on each Related Employer and Subsidiary which has adopted the
         Plan to the extent that each Related Employer or Subsidiary does not
         reject such amendment or supplement within ninety days of adoption by
         the Board.

               (e)  Each Related Employer or Subsidiary may, by action of its
         board of directors, adopt a supplement to the Plan which modifies
         provisions of the Plan, but such

                                       24

<PAGE>

         modification shall apply only to Employees of such Related Employer or
         Subsidiary. Any such supplement shall be effective only if approved by
         the Board.

                                       25

<PAGE>

         IN WITNESS WHEREOF, the members of the Board have executed this
instrument and the Company has caused this instrument to be executed by its duly
authorized officers and its corporate seals to be affixed hereto as of the date
indicated above, but unless otherwise stated or required, this amendment and
restatement shall be effective as of the first day of December, 1990.

                       COASTAL ARUBA REFINING COMPANY N.V.

(Seal)

<Table>
<S>                                                 <C>
ATTEST: /s/ AUSTIN M. O'TOOLE                         By: /s/ JAMES R. PAUL
        ------------------------------------              ------------------------------------
        Austin M. O'Toole                                 James R. Paul
        Senior Vice President and Secretary               President
                                                          Executive Officer

                                                          Member of the Management Board of
                                                          the Foundation

ATTEST: /s/ JAY L. GALLIA                             By: /s/ RONALD A. BROWNLEE
        ------------------------------------              ------------------------------------
                                                          Ronald A. Brownlee

                                                          Member of the Management Board of
                                                          the Foundation

ATTEST: /s/ JAY L. GALLIA                             By: /s/ PAUL H. GUTKNECHT
        ------------------------------------              ------------------------------------
                                                          Paul H. Gutknecht

                                                          Member of the Management Board of
                                                          the Foundation

ATTEST: /s/ JAY L. GALLIA                             By: /s/ JOHN J. LIPINSKI
        ------------------------------------              ------------------------------------
                                                          John J. Lipinski

                                                          Member of the Management Board of
                                                          the Foundation

ATTEST: /s/ JAY L. GALLIA                             By: /s/ M. S. LEO
        ------------------------------------              ------------------------------------
                                                          M. S. Leo

                                                          Member of the Management Board of
                                                          the Foundation

</TABLE>

                                       26

<PAGE>

<Table>
<S>                                                   <C>

ATTEST: /s/ JAY L. GALLIA                             By: /s/ AUSTIN M. O'TOOLE
        ------------------------------------              ------------------------------------
                                                          Austin M. O'Toole

                                                          Member of the Management Board of
                                                          the Foundation

ATTEST: /s/ JAY L. GALLIA                             By: /s/ E. C. SIMPSON
        ------------------------------------              ------------------------------------
                                                          E. C. Simpson

                                                          Member of the Management Board of
                                                          the Foundation

ATTEST: /s/ JAY L. GALLIA                             By: /s/ JAMES W. WHALEN
        ------------------------------------              ------------------------------------
                                                          James W. Whalen
</Table>

                                       27<PAGE>

                                                                 EXHIBIT 10.17.2

                          ELEVENTH AMENDMENT AND WAIVER
                          -----------------------------

          ELEVENTH AMENDMENT AND WAIVER dated as of August 9, 2001 (the
"Eleventh Amendment") with respect to the Revolving Credit and Term Loan
Agreement dated as of April 26, 1999 (as amended, the "Credit Agreement") by and
among Chart House Enterprises, Inc. (the "Parent"), Chart House, Inc. (the
"Borrower"), the lending institutions from time to time party thereto
(collectively, the "Banks") and Fleet National Bank (formerly known as
BankBoston, N.A.), as Agent (the "Agent").

                                   WITNESSETH
                                   ----------

          WHEREAS, pursuant to the Credit Agreement, the Banks have made Loans
and other Financial accommodations to the Borrower which remain outstanding;

          WHEREAS, certain Events of Default have occurred and are continuing;
and

          WHEREAS, the Borrower has requested that the Agent and the Banks, and
the Agent and the Banks are willing to, waive the Specified Events of Default
(as defined below) and amend the Credit Agreement, but only on the terms and
conditions set forth herein;

          NOW, THEREFORE, in consideration of the premises and for other good
and valuable consideration the receipt and sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

          Section 1.1. Defined Terms. Unless otherwise defined herein,
                       -------------
capitalized terms used herein have the meanings assigned in the Credit Agreement
(as amended by this Eleventh Amendment) and the following terms shall have the
following meanings:

          "Amendment Fee": shall have the meaning ascribed thereto in Section
     7.2(b).

          "Business Plan": shall have the meaning ascribed thereto in Section
     4.3.

          "Collateral Certificate": means a Collateral Certificate, in the form
     attached hereto as Exhibit A.

          "Effective Date": shall have the meaning ascribed thereto in Article
     V.

          "Financial Advisor": shall have the meaning set forth in Section 4.2.

          "PWC": shall mean PricewaterhouseCoopers LLP.

          "PWC Engagement Letter": shall mean that certain engagement letter
     dated as of July 26, 2001 between the Borrower and PWC.

          "Specified Events of Default": Events of Default arising under Section
     15.1(c) of the Credit Agreement as a result of the Borrower's failure to
     satisfy the covenants contained in Sections 12.3 and 12.7 of the Credit
     Agreement, in each case, with respect to the period ended June 25, 2001.

<PAGE>

                  "Type A Capital Event": means any issuance or sale of equity
          securities of junior debt securities or instruments, on terms and
          conditions satisfactory to the Agent and the Required Banks, that
          shall result in a payment in cash to the Banks in an amount of not
          less than $1,000,000.

                                   ARTICLE II
                                     WAIVER

          Section 2.1. Waiver. Subject to compliance with the terms and
conditions set forth in this Eleventh Amendment, the Agent and the Banks hereby
agree to waive the Specified Events of Default.

                                   ARTICLE III
                         AMENDMENTS TO CREDIT AGREEMENT

          Section 3.1. Amendment to Section 1.1 (Definitions). Section 1.1 of
the Credit Agreement is hereby amended by (a)(i) deleting the word "and"
immediately before clause (i) in the definition of "Consolidated EBITDA" and
(ii) inserting immediately before the word "minus" in said definition the phrase
"(j) an amount equal to $700,000 relating to an insurance adjustment recorded by
the Borrower in the second quarter of 2001 and (k) fees accrued but not paid to
Equity Group Investments, LLC pursuant to that certain Letter Agreement dated as
of November 2, 1998 between Equity Group Investments, LLC and the Parent";

               (b) deleting the definition of "Interest Payment Date" and
inserting in lieu thereof the following:

          "Interest Payment Date. (i) As to any Base Rate Loan, the last day of
           ---------------------
          the calendar month with respect to interest accrued during such
          calendar month; and (ii) as to any Eurodollar Rate Loan, the last day
          of the Interest Period; and

               (c) deleting the phrase "1.2, 3, or 6 Months" in the definition
of "Interest Period" and inserting in lieu thereof the phrase "1 month".

          Section 3.2. Amendment to Section 11.16 (Subordinated Debt). Section
11.16 of the Credit Agreement is hereby amended by deleting the proviso in
Section 11.16.

          Section 3.3. Amendment to Section 12.1 (Leverage). Section 12.1 of the
Credit Agreement is hereby amended by deleting from the chart therein the rows
beginning with the dates June 26, 2001, September 25, 2001, January 1, 2002 and
April 2, 2002 and inserting in lieu thereof the following:

          "June 26, 200l through September 24, 200l           4.50:1.00
          September 25, 200l through December 31, 2001        4.00:1.00
          January 1, 2002 through April 1, 2002               4.30:1.00
          April 2, 2002 through July 1, 2002                  3.60:1.00".

          Section 3.4. Amendment to Section 12.3 (Debt Service). Section 12.3 of
the Credit Agreement is hereby amended by deleting from the chart therein the
rows beginning with the dates December 25, 2000, September 25, 2001 and January
1, 2002 and inserting in lieu thereof the following:

          "June 26, 200l through September 24, 2001           .75:1.00
          September 25, 200l through December 31, 2001        .90:1.00

                                       -2-

<PAGE>

          January 1, 2002 through April 1, 2002              .80:1.00
          April 2, 2002 through July 1, 2002                 1.00:1.00".

          Section 3.5. Amendment to Section 12.6 (Adjusted Leverage Ratio).
Section 12.6 of the Credit Agreement is hereby amended by deleting from the
chart therein the rows beginning with the dates June 26,2001 and January 1, 200l
and inserting in lieu thereof the following:

          "June 26, 2001 through September 24, 2001          6.50:l.00
          September 25, 2001 through December 31, 2001       6.25:1.00
          January 1, 2002 through April 1, 2002              6.50:1.00
          April 2, 2002 through July 1, 2002                 6.00:1.00".

          Section 3.6. Amendment to Section 12.7 (Minimum EBITDA). Section 12.7
of the Credit Agreement is hereby amended by from the chart therein the rows
beginning with the dates June 26, 2001, September 25, 2001, January 1, 2002 and
April 2, 2002 and inserting in lieu thereof the following:

          "June 26, 2001 through September 24, 2001          $1,800,000
          September 25, 2001 through December 31, 2001       $1,800,000
          January 1, 2002 through April 1, 2002              $1,700,000
          April 2, 2002 through July 1, 2002                 $2,800,000".

                                   ARTICLE IV
                                   AGREEMENTS

          Section 4.1. Capital Event. On or before September 28, 2001, or such
earlier date identified in the Business Plan (as defied hereinafter) as the date
by which the Borrower requires additional liquidity, the Borrower shall
consummate the Type A Capital Event; it being understood that the failure to
consummate the Type A Capital Event required pursuant to this Section 4.1 shall,
without the necessity of any further action by any party, constitute an Event of
Default. Notwithstanding anything to the contrary set forth in the Credit
Agreement, the net cash proceeds from the Type A Capital Event shall he applied
to prepay Revolving Credit Loans, but shall not reduce the Revolving Credit
Commitments.

          Section 4.2. Financial Advisor. The Borrower shall continue the
retention of PWC or another financial advisor reasonable acceptably to the Agent
and the Required Banks (the "Financial Advisor"). Upon request, the Agent and
the Banks shall be provided with reasonable access to the Financial Advisor and
copies of all information provided to the Financial Advisor. To the extent that
information provided by the Financial Advisor to the Agent and the Banks is
confidential, the Agent and the Banks agree to keep such information
confidential in the manner and to the extent set forth in Section 19.2 of the
Credit Agreement.

          Section 4.3. Business Plan; Cash Flow Forecast. (a) Business Plan. On
or before September 10, 2001, the Borrower shall deliver to the Agent and the
Banks a detailed business plan (the "Business Plan") in form satisfactory to the
Agent. To the extent the Business Plan evidences the need for any additional
liquidity on the part of the Borrower, it shall identify the source(s) of such
additional liquidity. The Business Plan shall include, on a monthly basis for
the period beginning September 1, 2001 and ending December 31, 2002, (i)
consolidated forecasts detailing cash flow and collateral levels, (ii)
consolidated profit and loss statements and (iii) consolidated balance sheets.
The Business Plan shall identify (x) all sources of revenue and expenses,
including, without limitation, intended executive compensation and (y) the
nature of all proposed Capital Expenditures.

                                       -3-

<PAGE>

               (b) On October 15, 2001, the Agent shall notify the Borrower in
writing as to whether or not the then-current Business Plan is acceptable to the
Agent and the Required Banks; provided, however, that the Agent shall have the
option, prior to October 15, 2001, to notify the Borrower in writing that the
then-current Business Plan is acceptable to the Agent and the Required Banks; it
being understood that the failure of the then-current Business Plan to be
acceptable to the Agent and the Required Banks pursuant to this Section 4.3(b)
shall, without the necessity of any further action by any party, constitute an
Event of Default. In determining whether the Business Plan is acceptable, the
Agent and the Banks may consider, among other things, (i) the Borrower's
then-current cash flow projection and, to the extent necessary, source(s) of
additional liquidity, (ii) the necessity for the Borrower to consumate one or
more capital events and (iii) based on, among other things, clauses (i) and (ii)
hereof and revised projections as may be contained in the Business Plan, the
necessity for further modification of one or more of the financial covenants
contained in Section 12 of the Credit Agreement.

          Section 4.4. Agent's Advisors. The Borrower hereby agrees that, in the
event that the Agent or its counsel decides to retain a financial advisor, the
Borrower shall cooperate in all respects with any such financial advisor and
shall pay or reimburse the Agent for all reasonable fees and out-of-pocket
expenses incurred in connection therewith.

          Section 4.5. Cash Management. The Borrower shall maintain its cash
management system at the Agent or otherwise pursuant to depositary agreements in
form and substance satisfactory to the Agent.

          Section 4.6. Collateral. The Borrower shall deliver to the Agent a
Co1lateral Certificate, fully executed by a responsible officer of the Borrower,
on or before August 27, 200l. On or before September 30, 2001, in connection
with the Agent's review of the Collateral, the Parent, the Borrower and the
Subsidiary Guarantors shall execute such further instruments and documents as
the Agent shall request.

          Section 4.7. Agreements Deemed Agreements under the Credit Agreement.
For purposes of the Credit Agreement, the agreements of the Borrower contained
in this Article IV shall be deemed to be, and shall be, agreements under the
Credit Agreement. Any breach on the part of the Borrower of any agreement
contained in this Article IV shall constitute an Event of Default.

                                    ARTICLE V
                                 EFFECTIVE DATE

          This Eleventh Amendment shall become effective as of the date on which
the Agent has received (a) counterparts to this Eleventh Amendment, duly
executed and delivered by the Borrower, the Parent, the Subsidiary Guarantors,
the Agent and the Required Banks, (b) payment in full in cash of the invoiced
and unpaid fees and expenses of the Agent's professionals, (c) payment in full
in cash of the Amendment Fee and (d) an amendment to the PWC Engagement Letter,
duly executed by the parties thereto, in form and substance satisfactory to the
Agent and the Required Banks.

                                   ARTICLE VI
                                 INTERPRETATION

          Section 6.l. Continuing Effect of the Credit Agreement. The Borrower,
the Agent and each Bank hereby acknowledges and agrees that the Credit Agreement
shall continue to be and shall remain unchanged and in full force and effect in
accordance with its terms, except as expressly modified hereby.

                                       -4-

<PAGE>

          Section 6.2. No Waiver. Nothing contained in this Eleventh Amendment
shall be construed or interpreted or is intended as a waiver of any Default or
Event of Default, other than the Specified Events of Default, or of any rights,
powers, privileges or remedies that the Agent or the Banks have or may have
under the Credit Agreement, the Security Documents, any other related document
or applicable law on account of such Default or Event of Default, except as
expressly provided herein.

                                   ARTICLE VII
                                  MISCELLANEOUS

          Section 7.l. Representations and Warranties. (a) The representations
and warranties contained in Section 9 of the Credit Agreement are true and
correct at and as of the date made and as of the date hereof, except to the
extent of changes resulting from transactions contemplated or permitted by this
Amendment and the other Loan Documents, changes which have been disclosed to the
Agent and the Banks prior to the date hereof and changes occurring in the
ordinary course of business that singly or in the aggregate are not materially
adverse, and to the extent that such representations and warranties related
expressly to an earlier date.

               (b) Each of the Parent, the Borrower and each Subsidiary
Guarantor has performed and complied in all material respects with all terms and
conditions herein required to be performed or complied with by it prior to or at
the time hereof, and as of the date hereof, after giving effect to the
provisions hereof, there exists no Default or Event of Default.

          Section 7.2. Payment of Fees and Expenses. (a) The Borrower hereby
agrees to pay or reimburse the Agent on demand for all its reasonable
out-of-pocket costs and expenses incurred in connection with the preparation and
execution of this Eleventh Agreement, including, without limitation, the
reasonable fees and disbursements of counsel to the Agent. In furtherance of the
provisions of this Section 7.2 and Section l8.1 of the Credit Agreement, the
Borrower hereby agrees that the Agent shall be entitled, upon one Business Day's
written notice to the Borrower, to debit any account of the Borrower to collect
costs and expenses to which the Agent is entitled pursuant to this Section 7.2
and Section 18.1 of the Credit Agreement.

               (b) The Borrower shall, on or before the Effective Date, pay to
the Agent, for the account of each Bank on a pro rata basis, an amendment fee in
an amount equal to $100,000 (the "Amendment Fee").

          Section 7.3. Counterparts. This Amendment may be executed by the
parties hereto in any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.

          Section 7.4. GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE COMMONWEALTH OF
MASSACHUSETTS.

          Section 7.5. Reservation of Rights. Notwithstanding anything contained
in this Eleventh Amendment, the Borrower, the Parent and the Subsidiary
Guarantors acknowledge that the Agent and the Banks do not waive, and expressly
reserve, the right to exercise, at any time, any and all of their rights and
remedies under the Credit Agreement, the Security Documents, any other related
document and applicable law on account of any Default or Event of Default, other
than as expressly provided herein.

                                       -5-

<PAGE>

          Section 7.6. Confirmation of Indebtedness. The Borrower hereby
confirms and acknowledges that, as of the Effective Date, (i) the Borrower is
truly and justly indebted to the Banks, without defense, counterclaim or offset
of any kind and (ii) the Borrower is liable to the Banks in respect of Loans and
Letters of Credit in the aggregate principal amount of $27,737,500.

          Section 7.7. Waiver. The Parent, the Borrower and the Subsidiary
Guarantors hereby release, waive, and forever relinquish all claims, demands,
obligations, liabilities and causes of action of whatever kind or nature,
whether known or unknown, which any of them have, may have, or might assert at
the time of execution of this Eleventh Amendment or in the future against the
Agent, the Banks and/or their respective parents, affiliates, participants,
officers, directors, employees, agents, attorneys, accountants, consultants,
successors and assigns (collectively, the "Bank Group"), directly or indirectly,
which occurred, existed, was taken, permitted or begun prior to the execution of
this Eleventh Amendment, arising out of, based upon, or in any manner connected
with (a) any transaction, event, circumstance, action, failure to act or
occurrence of any sort or type, whether known or unknown, with respect to the
Credit Agreement, the Security Documents, any other related document and/or the
administration thereof or the obligations created thereby; (b) any discussions,
commitments, negotiations, conversations or communications with respect to the
refinancing, restructuring or collection of any obligations related to the
Credit Agreement, the Security Documents, any other related document and/or the
administration thereof or the obligations created thereby, or (c) any matter
related to the foregoing; provided, however, that the provisions of this Section
7.7 shall not apply to any such matters of which the Borrower, the Parent and
the Subsidiary Guarantors are presently unaware and which constitute or result
from the gross negligence and/or willful misconduct of any member of the Bank
Group.

                                       -6-

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Eleventh
Amendment and Waiver to be duly executed and delivered by their proper and duly
authorized officers as of the date first above written.

                                                CHART HOUSE, INC.

                                                By: /s/ Kenneth R. Posner
                                                   -------------------------
                                                   Title: President

                                      -7-

<PAGE>

                                        FLEET NATIONAL BANK (f/k/a BankBoston,
                                        N.A.), as Agent and a Lender

                                        By: /s/ Corinne Barrett
                                          ------------------------------------
                                           Title:  Sr. Vice President

                                        BNP PARIBAS, as a Lender

                                        By:___________________________________
                                           Title:

                                        By:___________________________________
                                           Title:

                                        ING (U.S.) CAPITAL LLC, as a Lender

                                        By:___________________________________
                                           Title:

                                      -8-

<PAGE>

                                        FLEET NATIONAL BANK (f/k/a BankBoston,
                                        N.A.), as Agent and a Lender

                                        By:____________________________________
                                           Title

                                        BNP PARIBAS, as a Lender

                                        By: /s/ PJ de Filippis
                                           ------------------------------------
                                           Title:    PJ de FILIPPIS
                                                   Managing Director

                                        By: /s/ Joseph D. Catarina
                                           ------------------------------------
                                           Title:  Joseph D. Catarina
                                                     Vice President
                                                    Merchant Banking

                                        ING (U.S.) CAPITAL LLC, as a Lender

                                        By:____________________________________
                                           Title:

                                      -8-

<PAGE>

                                        FLEET NATIONAL BANK (f/k/a BankBoston,
                                        N.A.), as Agent and a Lender

                                        By:____________________________________
                                           Title:

                                        BNP PARIBAS, as a Lender

                                        By:____________________________________
                                           Title:

                                        By:____________________________________
                                           Title:

                                        ING (U.S.) CAPITAL LLC, as a Lender

                                        By: /s/ Gil Kirkpatrick
                                           ------------------------------------
                                           Title:  Vice President

                                      -8-

<PAGE>

                                        ACKNOWLEDGED AND AGREED:

                                        CHART HOUSE ENTERPRISES, INC.
                                        as Parent

                                        By: /s/ Kenneth R. Posner
                                           ------------------------------
                                           Title: President

                                        CHART HOUSE ENTERPRISES OF IDAHO,
                                        INC., as a Subsidiary Guarantor

                                        By: /s/ Kenneth R. Posner
                                           ------------------------------
                                           Title: President

                                        CHART HOUSE ENTERPRISES OF PUERTO,
                                        RICO INC., as a Subsidiary Guarantor

                                        By: /s/ Kenneth R. Posner
                                           ------------------------------
                                           Title: President

                                        CHART HOUSE OF ANNAPOLIS, INC., as a
                                        Subsidiary Guarantor

                                        By: /s/ Kenneth R. Posner
                                           ------------------------------
                                           Title: President

                                        CHART HOUSE OF MARYLAND, INC., as a
                                        Subsidiary Guarantor

                                        By: /s/ Kenneth R. Posner
                                           ------------------------------
                                           Title: President

                                        CHART HOUSE ACQUISITION, INC., as a
                                        Subsidiary Guarantor

                                        By: /s/ Kenneth R. Posner
                                           ------------------------------
                                           Title: President

                                      -9-

<PAGE>

                                    BIG WAVE, INC., as a Subsidiary Guarantor

                                    By: /s/ Kenneth R. Posner
                                        --------------------------------------
                                        Title: President

                                    CORK 'N CLEAVER, INC., as a Subsidiary
                                    Guarantor

                                    By: /s/ Kenneth R. Posner
                                        --------------------------------------
                                        Title: President

                                    ANALOS COMPANY, as a Subsidiary Guarantor

                                    By: /s/ Kenneth R. Posner
                                        --------------------------------------
                                        Title: President

                                    WEST 52nd STREET, INC., as a Subsidiary
                                    Guarantor

                                    By: /s/ Kenneth R. Posner
                                        --------------------------------------
                                        Title: President

                                    CHART HOUSE ACQUISITION OF NEVADA,
                                    INC., as a Subsidiary Guarantor

                                    By: /s/ Kenneth R. Posner
                                        --------------------------------------
                                        Title: President

                                    CHART HOUSE ACQUISITION OF
                                    MARYLAND, INC., as a Subsidiary Guarantor

                                    By: /s/ Kenneth R. Posner
                                        --------------------------------------
                                        Title: President

                                      -10-

<PAGE>

                                                                       EXHIBIT A

                             COLLATERAL CERTIFICATE

                                [TO BE PROVIDED]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]