Document:

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                                                                   EXHIBIT 10.27

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William J. Amelio                                1700 South Patterson Boulevard
Executive Vice President & COO                             Dayton, Ohio   45479
Retail and Financial Group

January 15, 2001

Mr. Gerald A. Gagliardi
Tinker Lane
Lyme, Connecticut  06371

Dear Gerald:

I am delighted to extend to you an offer of employment with NCR Corporation as
Senior Vice President of the Worldwide Services Division. As you know, this
offer is contingent on the approval of NCR Board of Directors.  In this
position, you will report directly to me.  We'll need to discuss a mutually
agreeable start date, but other details of your offer are as follows.

     Annual Base Salary - Your base salary will be $430,000, commencing as of
     ------------------
     your effective start date.  You will be paid on a bi-weekly pay schedule,
     one week in arrears.  Your paycheck will be automatically deposited in the
     bank of your choice via our convenient Easipay plan.

     Sign-On Bonus - You will be extended a $175,000 gross sign-on bonus in two
     -------------
     increments.  $100,000 will be paid to you within thirty days of your
     effective start date.  All applicable taxes will be withheld from this
     award.  Your sign-on bonus will not be treated as compensation for purposes
     of determining employee pensions and benefits.  Assuming continued
     employment with NCR, a second gross payment of $75,000 will be paid to you
     after one year in the position described above.

     Incentive Award - You will be eligible to participate in the Management
     ---------------
     Incentive Plan for Executive Officers (MIP), which provides year-end
     incentive awards based on the success of NCR in meeting annual performance
     objectives.  For your position, the targeted incentive opportunity is 60%
     of your salary ($258,000) and the maximum award is 120% ($516,000) of your
     salary.  For 2001, compensation objectives will  include revenue growth,
     profit and asset management measures.

     Equity Awards -
     -------------
     Stock Option Award- You will receive a stock option grant, as of your
     effective start date, for 100,000 shares of NCR common stock.  The grant
     price will be determined by the fair market value of the average of the
     high and low share price of the Company's common stock on your first date
     of employment.  These options will be subject to terms and conditions
     determined by the NCR Board of Directors. Future grants are discretionary
     and set annually by the Board of Directors.  These stock options include a
     non-competition provision, have a ten-year term, and vest as follows:

     Initial Vesting Date - 1 year anniversary of start date - 1/3 of the grant

     Next Vesting Date - 2 year anniversary of start date - 1/3 of the grant

     Final Vesting Date - 3 year anniversary of start date - 1/3 of the grant

     The grant above includes your 2001 management stock option grant which is
     typically awarded to NCR managers in Q1 of each calendar year. You will be
     eligible for future management stock option grants based on market
     considerations. Although we cannot make a commitment about future stock
     option awards, given past awards for this position and current
     expectations, we would anticipate that the award of stock options would
     have an approximate face value of $2 million or more.  Again, as I know you
     appreciate, any actual award will be as finally determined by NCR's
     Compensation Committee of the Board of Directors.

     Restricted Stock - You will receive a special restricted stock grant, as of
     your first date of employment, for 20,000 shares of NCR common stock.
     These shares will be set up in a record account in your name with NCR's
     Transfer Agent and Stock Registrar (American Stock Transfer), and will vest
     (become transferable) as follows:

     Initial Vesting Date - 1 year anniversary of start date - 1/4 of the grant

     Next Vesting Date - 2 year anniversary of start date - 1/4 of the grant

     Next Vesting Date - 3 year anniversary of start date - 1/4 of the grant

     Final Vesting Date - 4 year anniversary of start date - 1/4 of the grant

     In addition, the restricted stock will vest in full in the event of a
     Company initiated termination other than for "cause" or termination for
     "Good Reason" (defined in the same manner as in the NCR Change-in-Control
     Severance Plan for

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     Executive Officers). The restricted stock will be subject to other terms
     and conditions determined by the NCR Board of Directors, including a non-
     competition provision.

     Incentives in General - For an officer in your position, short- and long-
     ---------------------
     term incentives at NCR currently take the form of the MIP and stock
     options.  Since these incentives are designed to address the conditions of
     an ever-changing marketplace, NCR cannot make any definitive
     representations concerning the continuation of either program or the size
     of the individual awards.

     Vacation - In recognition of your prior work experience, you will be
     --------
     eligible for four weeks of paid vacation.

     NCR Benefits - On your first day of employment with NCR, the company
     ------------
     provides you and your eligible dependents with the following core benefit
     coverage:

           NCR Health Care Coverage
           NCR Dental Care Coverage
           Short-Term and Long-Term Disability Coverages
           Life Insurance Coverage
           Accidental Death and Dismemberment Insurance Coverage

     As a new employee of NCR, you have the opportunity to design your own
     personalized benefit program through Personal Choice, the company's
     flexible benefits program.  After your employment commences, you will
     receive the NCR Benefits Information Package, and a Benefit representative
     will meet with you to guide you through any questions you may have.

     Additionally, you will be eligible to participate in the NCR Pension Plan,
     the NCR Savings Plan (401k), and the NCR Stock Purchase Plan.

     Retirement - In addition to your participation in the NCR Pension Plan
     -----------
     (qualified plan), you will also participate in the following nonqualified
     pension plans:

     The Retirement Plan for Officers of NCR Corporation (SERP II) - The plan,
     provides a career average pension of 2.5% of the total of your base salary
     and MIP award, times your years of service as an Officer and less pension
     accrued as an Officer in other NCR sponsored plans.  While this plan
     currently vests after ten years of officer service, NCR plans to recommend
     to the Compensation Committee of the Board of Directors that the vesting
     take place after five years.  However, there can be no assurance that this
     proposed change will be adopted.

     The NCR Mid-Career Hire Supplemental Pension Plan - This plan, provides a
     pension supplement to make up for lost pension that could result from not
     having a "full career" with one company.  This pension supplement is in
     addition to the SERP II benefit.

     Financial Counseling - You will be eligible to participate in a financial
     --------------------
     counseling program provided through one of three consulting firms
     designated by the Company.  The Company will pay up to $8,000 annually for
     financial planning, estate planning and tax preparation plus a gross-up for
     the tax impact of this service.  Further information on this program will
     be provided separately.

     Relocation - You will be eligible for relocation benefits under NCR's
     ----------
     Relocation Policy under "Tier IIB" executive benefits.  In addition, NCR
     will pay you a $15,000 gross payment to assist you in your special
     relocation needs in both 2001 and 2002.

     Change in Control - You will participate in NCR's current Change in Control
     -----------------
     Severance Plan for Executive Officers.  In the event of a qualified Change-
     In-Control (as defined in this Plan), you will receive three times your
     base salary and targeted bonus plus immediate vesting of your NCR stock
     options and restricted stock.

     Special Severance - In the event of a Company initiated termination other
     -----------------
     than for "cause" or termination for "Good Reason" (defined in the same
     manner as in the NCR Change-in-Control Severance Plan for Executive
     Officers), you will receive a cash payment of one times your annual base
     salary and immediate vesting of your NCR restricted stock.

This letter reflects the entire agreement regarding the terms and conditions of
your employment.  Accordingly, it supersedes and completely replaces any prior
oral or written communication on this subject.  This letter is not an employment
contract and should not be construed or interpreted as containing any guarantee
of continued employment.  The employment relationship at NCR is by mutual
consent ("Employment-At-Will").  This means that managers have the right to
terminate their employment at any time and for any reason.  Likewise, the
Company reserves the right to discontinue your employment with or without cause
at any time and for any reason.  Also, this offer is contingent upon completion
of full reference checks.

Gerald, we are enthusiastic about the contributions, experience and vision you
can bring to NCR.  The company is positioned well in our market to be
exceedingly successful and I personally would like to extend this opportunity
for you to be a part of my senior management team.

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If you have any questions concerning the details of the appointment, please feel
free to contact Wilbert Buiter or me.

Sincerely,

/s/ Bill Amelio
---------------

Bill Amelio
Executive Vice President & COO
Retail and Financial Group

/s/ Gerald Gagliardi                     January 16, 2001
--------------------                     ----------------
Agreed and Accepted                             Date
Gerald Gagliardi

pc:  W. Buiter

46<PAGE>

                                                                   Exhibit 10(x)

                            Oglebay Norton Company
                           Capital Accumulation Plan
<PAGE>

                               TABLE OF CONTENTS
                               -----------------

<TABLE>
<S>                                                                         <C>
I.    PURPOSE..............................................................  1

II.   DEFINITIONS..........................................................  1

III.  ELIGIBILITY; PARTICIPATION LIMITS....................................  4
      3.01 ................................................................  4
           a)  Eligibility to Participate..................................  4
           b)  Acknowledgement of Eligibility and Election to Participate..  4
           c)  New Participants............................................  5
      3.02 Deferral of Salary, Bonus, and/or LTIP Payment..................  5
      3.03 Suspension of Agreement to Defer................................  5
      3.04 Timing of Deferral Credits......................................  5
      3.05 Vesting.........................................................  6
      3.06 Matching Contributions..........................................  6
      3.07 Employee Benefit Plan Equivalent................................  6
      3.08 Determination of Account........................................  6
      3.09 Deferred Compensation Account Investment Options................  7
      3.10 Change of Investment Election...................................  7

IV.   DISTRIBUTIONS........................................................  7
      4.01 Distribution on Retirement......................................  7
      4.02 Distribution on Death...........................................  8
      4.03 Distribution on Termination of Service..........................  8
      4.04 Disability Benefit..............................................  8
      4.05 Method of Timing of Distribution................................  9
           a)  Election in Agreement.......................................  9
           b)  Election to Change Method of Distribution...................  9
           c)  Small Benefit Cash-Out......................................  9
      4.06 Interim Distribution............................................  9
      4.07 Hardship Distributions; Waiver of Deferral...................... 10
      4.08 Withholding; Employment Taxes................................... 10
      4.09 Commencement of Payments........................................ 10
      4.10 Change in Control Distribution Election......................... 11
      4.11 Recipients of Payments:  Designation of Beneficiary............. 11
      4.12 Distributions in Cash........................................... 11

V.    CLAIM FOR BENEFITS PROCEDURE......................................... 12
      5.01 Claim for Benefits.............................................. 12
      5.02 Request for Review of a Denial of a Claim for Benefits.......... 12
      5.03 Decision Upon Review of a Denial of a Claim for Benefits........ 12
</TABLE>

                                      (i)
<PAGE>

<TABLE>
<S>                                                                         <C>
VI.   ADMINISTRATION....................................................... 13
      6.01 Plan Committee.................................................. 13
      6.02 General Rights, Powers and Duties of Committee.................. 13
      6.03 Information to be Furnished to Committee........................ 14
      6.04 Indemnification................................................. 14

VII.  AMENDMENT AND TERMINATION............................................ 14
      7.01 Amendment....................................................... 14
      7.02 Company's Right to Terminate.................................... 14
      7.03 Special Termination............................................. 14

VIII. MISCELLANEOUS........................................................ 15
      8.01 Separation of Plan:  No Implied Rights.......................... 15
      8.02 No Right to Employer Assets..................................... 15
      8.03 No Employment Rights............................................ 16
      8.04 Offset.......................................................... 16
      8.05 Protective Provisions........................................... 16
      8.06 Non-assignability............................................... 16
      8.07 Gender and Number............................................... 17
      8.08 Notice.......................................................... 17
      8.09 Governing Laws.................................................. 17
      8.10 Capital Accumulation Plan Trust................................. 17
</TABLE>

                                      (ii)
<PAGE>

               Oglebay Norton Company Capital Accumulation Plan

I.   PURPOSE
     -------

     The purpose of the Oglebay Norton Company Capital Accumulation Plan is to
     provide a means whereby the Company may afford a select group of management
     or highly compensated employees with an opportunity to accumulate
     additional financial security by providing a vehicle to defer compensation
     in excess of the amount of compensation which may be deferred under the
     Oglebay Norton Incentive Savings and Stock Ownership Plan.

     Compensation deferrals made pursuant to the Plan will be credited with
     investment gains or losses, in accordance with the Plan, and benefits will
     be paid to the Participant (or his or her Beneficiary) as described herein.

II.  DEFINITIONS
     -----------

2.01 "Age" means the Participant's chronological age on the relevant date.

2.02 "Agreement" means the Oglebay Norton Company Capital Accumulation Plan
     Participation Agreement, executed between a Participant and the Company
     whereby a Participant agrees to defer a portion of his or her Salary,
     Bonus, and/or LTIP Payment pursuant to the provisions of the Plan.

2.03 "Beneficiary" means the person, persons or trust who under the Plan,
     becomes entitled to receive a Participant's interest in the event of the
     Participant's death.

2.04 "Bonus" means the cash compensation paid to the Participant in excess of
     Salary, not including any LTIP Payment or any payment in the nature of an
     expense reimbursement or welfare plan benefit, but before any deferrals
     made pursuant to this Plan or any other plan.

2.05 "Capital Accumulation Plan Trust" and "Trust" mean the Oglebay Norton
     Company Capital Accumulation Plan Trust, an irrevocable grantor trust or
     trusts established by the Company, in accordance with Section 8.10, with an
     independent trustee for the benefit of persons entitled to receive payments
     under this Plan.

                                       1
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2.06 "Change in Control" means the occurrence of any of the following events:

     (a)  a report is filed with the Securities and Exchange Commission (the
          "SEC") on Schedule 13D or Schedule 14D-1 (or any successor schedule,
          form, or report), each as promulgated pursuant to the Securities
          Exchange Act of 1934 (the "Exchange Act"), disclosing that any
          "person" (as the term "person" is used in Section 13(d) or Section
          14(d)(2) of the Exchange Act) is or has become a beneficial owner,
          directly or indirectly, of securities of the Company representing 25%
          or more of the combined voting power of the Company's then outstanding
          securities;

     (b)  the Company files a report or proxy statement with the SEC pursuant to
          the Exchange Act disclosing in response to Item 1 of Form 8-K
          thereunder or Item 5(f) of Schedule 14A thereunder that a Change in
          Control of the Company has or may have occurred or will occur in the
          future pursuant to any then-existing contract or transaction;

     (c)  the Company is merged or consolidated with another corporation and, as
          a result thereof, securities representing less than 50% of the
          combined voting power of the surviving or resulting corporation's
          securities (or of the securities of a parent corporation in case of a
          merger in which the surviving or resulting corporation becomes a
          wholly-owned subsidiary of the parent corporation) are owned in the
          aggregate by holders of the Company's securities immediately prior to
          such merger or consolidation;

     (d)  all or substantially all of the assets of the Company are sold in a
          single transaction or a series of related transactions to a single
          purchaser or a group of affiliated purchasers; or

     (e)  during any period of 24 consecutive months, individuals who were
          Directors of the Company at the beginning of such period cease to
          constitute at least a majority of the Company's Board of Directors
          (the "Board") unless the election, or nomination for election by the
          Company's shareholders, of more than one half of any new Directors of
          the Company was approved by a vote of at least two-thirds of the
          Directors of the Company then still in office who were Directors of
          the Company at the beginning of such 24 month period.

     Following a Change in Control of the Company, distributions under the Plan
     shall be paid subject to the provisions of Section 4.10.

2.07 "Code" means the Internal Revenue Code of 1986, as amended.

                                       2
<PAGE>

2.08 "Committee" and "Plan Committee" of the Company means the Committee
     appointed pursuant to Article VI to manage and administer the Plan.  In the
     event that no Committee is in existence at any point in time, the Committee
     shall mean the Company.

2.09 "Company" means Oglebay Norton Company, a Delaware corporation, and its
     successors and assigns.

2.10 "Determination Date" means the date on which the amount of a Participant's
     Deferred Compensation Account is determined as provided in Article III
     hereof.  The close of each  business day and the date of a Participant's
     Termination of Service shall be a Determination Date.

2.11 "Deferred Compensation Account" means the account(s) maintained by the
     Company for each Participant, pursuant to Article III.  Notwithstanding the
     provisions of Section 8.10, a Participant's Deferred Compensation Account
     shall not constitute or be treated as a trust fund or escrow arrangement of
     any kind.

2.12 "Disability" shall have the same meaning and shall be determined in the
     same manner as in the Company's Long-Term Disability Plan.

2.13 "Employer" shall mean the Company and each of its affiliates which is the
     employer of a Participant.

2.14 "ERISA" means the Employee Retirement Income Security Act of 1974, as
     amended.

2.15 "ERISA Funded" means that the Plan is prevented from satisfying the
     "unfunded" criterion of the exceptions to the application of Parts 2
     through 4 of Subtitle B of Title I of ERISA.

2.16 "LTIP Payment" means a cash incentive payment made pursuant to the
     Company's 1999 Long-Term Incentive Plan.

2.17 "Participant" means an employee of an Employer who is eligible to
     participate in the Plan pursuant to Section 3.01, and who enters into an
     Agreement.

2.18 "Plan" means the Oglebay Norton Company Capital Accumulation Plan, as
     amended from time to time.

2.19 "Plan Effective Date" means January 1, 2000.

2.20 "Plan Year" means a calendar year.

                                       3
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2.21 "Retirement Date" and "Retirement" mean the date of a Termination of
     Service of a Participant for reasons other than death or Disability after
     the sum of the Participant's Years of Service and Age is equal to or
     greater than sixty (60).

2.22 "Incentive Savings Plan" means the Oglebay Norton Incentive Savings and
     Stock Ownership Plan, as amended from time to time.

2.23 "Salary" means the salary paid to a Participant during a calendar year or
     other compensation (exclusive of Bonus and LTIP Payment) considered "wages"
     for Medicare and federal income tax withholding purposes, but before
     deferrals made pursuant to this Plan or any other plan.  Notwithstanding
     the foregoing, Salary shall not include the value of any qualified or non-
     qualified stock option granted to the Participant to the extent such value
     is includible in the Participant's taxable income, any amount realized on
     exercise of any such option or upon a disqualifying disposition of any
     stock acquired in connection with any such exercise, any payment in the
     nature of an expense reimbursement, nor any welfare plan benefit, nor shall
     Salary include severance or other payments made in connection with a
     Participant's Termination of Service.

2.24 "Tax Funded" means that the interest of a Participant in the Plan will be
     includable in the gross income of the Participant for federal income tax
     purposes prior to actual receipt of Plan benefits by the Participant.

2.25 "Termination of Service" means the Participant's ceasing his or her
     employment with the Employers for any reason whatsoever, whether
     voluntarily or involuntarily, including by reason of Retirement, death, or
     Disability.

2.26 "Years of Service" means the Participant's period of service which is
     credited as "Years of Service" under the Incentive Savings Plan.

III. ELIGIBILITY; PARTICIPATION LIMITS
     ---------------------------------

3.01 a)   Eligibility to Participate.  Participation in the Plan shall be
          --------------------------
          limited to key employees of the Employers approved to participate by
          the Committee.  It is the intention of the Company that all
          Participants satisfy the term a "select group of management or highly
          compensated employees" as provided in Sections 201(2), 301(a)(3),
          401(a)(1) and 4021(b)(6) of ERISA.

     b)   Acknowledgement of Eligibility and Election to Participate  Each
          ----------------------------------------------------------
          eligible employee shall annually acknowledge his or her eligibility
          to participate in the Plan at such time and in such form as the
          Committee may require or permit.  An eligible employee may elect to
          become a Participant with respect to a Plan Year by filing a properly
          completed Agreement with the Committee no later than December 1st
          (or such other date not later than December 31st as the Committee

                                       4
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          may permit) of the preceding calendar year.  An eligible employee
          shall become a Participant with respect to a Plan Year upon acceptance
          of his or her Agreement by the Committee.  An Agreement, once accepted
          by the Committee, shall be irrevocable.

     c)   New Participants.  An employee approved to participate by the
          ----------------
          Committee  subsequent to January 1, 2000, shall be eligible to
          participate in the Plan after satisfying the requirements of Section
          3.01(a) and (b) and shall be bound by all the terms and conditions of
          the Plan, provided, however, that his or her Agreement is filed no
          later than thirty (30) days following notification by the Committee of
          his or her eligibility to participate in the Plan and relates only to
          Salary, Bonus, and/or LTIP Payment paid after the Agreement is filed
          and becomes effective.

3.02 Deferral of Salary, Bonus, and/or LTIP Payment.  A Participant may elect
     ----------------------------------------------
     to defer between zero percent (0%) and fifty percent (50%) of his or her
     Salary in ten percent (10%) increments during a Plan Year.  In addition, a
     Participant may elect to defer between zero percent (0%) and one hundred
     percent (100%) of his or her Bonus payable during a Plan Year in ten
     percent (10%) increments.  In addition, a Participant may elect to defer
     between zero percent (0%) and one hundred percent (100%) of his or her LTIP
     Payment payable during a Plan Year in ten percent (10%) increments.  At the
     time of election, a Participant may elect to defer a different percentage
     of his or her Salary, Bonus, and/or LTIP Payment for each Plan Year and may
     also elect not to defer any portion of his or her Salary, Bonus, and/or
     LTIP Payment in a Plan Year.

     A Participant shall make an annual election for an upcoming Plan Year by
     December 1st (or other such other date not later than December 31st as
     the Committee may permit) of the year preceding the Plan year for which the
     election is being made. Except as provided in Sections 4.04, 4.07 and 4.10,
     any election made by a Participant shall be irrevocable with respect to
     Salary, Bonus, and LTIP Payment applicable to the Plan Year. A Participant
     who does not file an Agreement for a Plan Year may file an Agreement for
     any subsequent Plan Year for which he or she is eligible to participate in
     the Plan.

3.03 Suspension of Agreement to Defer.  A Participant's Agreement to  defer a
     --------------------------------
     percentage of his or her Salary, Bonus, and/or LTIP Payment shall be
     suspended in the event that the Committee, in its sole discretion,
     reasonably determines that a Participant ceases to meet the eligibility
     requirements of the Plan.

3.04 Timing of Deferral Credits.  The amount of Salary, Bonus, and/or LTIP
     --------------------------
     Payment a Participant elects to defer in his or her Agreement shall cause
     an equivalent reduction in the Participant's Salary, Bonus, and/or LTIP
     Payment respectively.  Deferrals shall be credited to the Participant's
     Deferred Compensation Account throughout the Plan Year as the Participant
     otherwise would have been paid the deferred portion of Salary, Bonus,
     and/or LTIP Payment.

                                       5
<PAGE>

3.05 Vesting.  A Participant shall be one hundred percent (100%) vested in
     -------
     his or her Deferred Compensation Account equal to the amount of Salary
     and/or Bonus the Participant deferred into his or her Deferred Compensation
     Account and the investment gain or losses credited thereon.  In the event a
     contribution is credited to a Participant's Deferred Compensation Account
     pursuant to Section 3.06 or 3.07, the contribution and the investment gain
     or losses credited thereon shall vest in the same manner as under the
     Incentive Savings Plan; provided, however, that any such amount shall
     become fully vested upon a Change in Control.

3.06 Matching Contributions.  If, during a Plan Year, a Participant is unable
     ----------------------
     to receive the full Employer match under the Incentive Savings Plan due to
     the limitations under Code Sections 402(g) or 401(a)(17) or other
     limitation on the maximum amount of elective contributions permitted under
     the terms of the Incentive Savings Plan, the Employer shall make matching
     contributions on behalf of such Participant equal to the matching
     percentage rate applicable to such Participant under the Incentive Savings
     Plan with respect to such Participant's deferrals under this Plan which,
     after taking into account deferrals under the Incentive Savings Plan, do
     not exceed eight percent (8%)(or such other matching percentage limitation
     set forth under the Incentive Savings Plan from time to time) of his or her
     Salary, Bonus, and/or LTIP Payment.  The Employer matching contributions
     under this Plan shall be credited to the Participant's Deferred
     Compensation Account at the same time as the Employer matching
     contributions would have been made to the Incentive Savings Plan, provided,
     however, that there shall be no duplication of benefits by reason of the
     provisions of this Section 3.06 and Section 3.07.

3.07 Employee Benefit Plan Equivalent.  If a Participant is a participant
     --------------------------------
     under the Incentive Savings Plan, the amount of Salary, Bonus, and/or LTIP
     Payment deferred under this Plan shall not be considered for purposes of
     calculating benefits under the Incentive Savings Plan unless permitted by
     law.  To the extent that a Participant's benefit under the Incentive
     Savings Plan is reduced by reason of deferrals under this Plan, an amount
     equal to the additional benefits he or she would have received under the
     Incentive Savings Plan based upon the deferrals (and disregarding for this
     purpose any benefit and compensation limitations under Sections 401(a)(17),
     402(g) and 415 of the Code) shall be determined and paid in the same manner
     and at the same time as other benefits payable under this Plan.

3.08 Determination of Account.  Each Participant's Deferred Compensation
     ------------------------
     Account as of each Determination Date shall consist of the balance of the
     Participant's Deferred Compensation Account as of the immediately preceding
     Determination Date adjusted for:

     .    additional deferrals pursuant to Section 3.02,

     .    Employer contributions (if any) pursuant to Sections 3.06 and 3.07,

     .    distributions (if any); and

                                       6
<PAGE>

     .    the appropriate investment earnings and gains and/or losses and
          expenses pursuant to Section 3.09.

     All adjustments and earnings related thereto, will be determined on a daily
     basis.

3.09 Deferred Compensation Account Investment Options.  The Committee shall
     ------------------------------------------------
     designate from time to time one or more investment options in which
     Deferred Compensation Accounts may be deemed invested.  A Participant or
     Beneficiary shall allocate his or her Deferred Compensation Account among
     the deemed investment options by filing with the Committee a Deferral
     Allocation Election Form.  A Participant may elect to allocate his or her
     Deferred Compensation Account in five percent (5%) increments among as many
     of the investment options which are offered under the Plan.

     Any such investment allocation election shall be made initially on the
     Deferral Allocation Election Form and shall be subject to such rules as the
     Committee may prescribe, including, without limitation, rules concerning
     the manner of making deferral allocation elections and the frequency and
     timing of changing such deferral allocation elections.

     The Committee shall have the sole discretion to determine the number of
     investment options to be designated hereunder and the nature of the options
     and may change or eliminate the investment options provided hereunder from
     time to time.  For each investment option, the Committee shall, in its sole
     discretion, select a mutual fund, a life insurance subaccount, an
     investment index, or shall create a phantom portfolio of such investments
     as it deems appropriate, to constitute the investment option.  The
     Employers may, but are under no obligation to, acquire any investment or
     otherwise set aside assets for the deemed investment of Deferred
     Compensation Accounts hereunder.

The Committee shall determine the amount and rate of investment gains or losses
with respect to any such investment option for any period, and may take into
account deemed expenses which would be incurred if actual investments were made.

3.10 Change of Investment Election.  A Participant may elect daily to change
     -----------------------------
     the manner in which his or her current Deferred Compensation Account and
     his or her future deferrals are deemed invested among the then-available
     investment options, in accordance with procedures prescribed by the
     Committee.

IV.  DISTRIBUTIONS
     -------------

4.01 Distribution on Retirement.  Upon a Participant's Termination of Service
     --------------------------
     on or after a Retirement Date, distribution of the Participant's Deferred
     Compensation Account, determined under Section 3.08, as of the
     Determination Date coincident with or next following such Retirement Date,
     shall be made or commence as soon as practicable, but

                                       7
<PAGE>

     in any event within ninety (90) days following the Participant's
     Termination of Service on or after his or her Retirement Date.  The
     distribution shall be made as designated by the Participant in his or her
     Retirement Payout Election Form, subject to Section 4.05.  In the event a
     distribution is made pursuant to this Section 4.01, the Participant shall
     immediately cease to be eligible for any other benefit provided under this
     Plan.

4.02 Distribution on Death.  Upon the death of a Participant prior to the
     ---------------------
     distribution of all of his or her Deferred Compensation Account,
     distribution of the unpaid balance of the Deferred Compensation Account
     shall be made or continue to be made to such Participant's Beneficiary.  If
     the distribution of the Participant's Deferred Compensation Account has not
     yet commenced as of the date of death, distribution to the Beneficiary
     shall be made or commence as soon as practicable and in any event within
     ninety (90) days following the Participant's death.  The method of
     distribution shall be as designated by the Participant in his or her
     Retirement Payout Election Form, subject to Section 4.05.

4.03 Distribution on Termination of Service.  Unless otherwise directed by the
     --------------------------------------
     Committee, upon the Termination of Service of a Participant prior to his or
     her Retirement Date for reasons other than death or Disability,
     distribution of the Participant's Deferred Compensation Account shall be
     made as soon as practicable and in any event within ninety (90) days after
     such Termination of Service, in a single lump-sum, notwithstanding the
     provisions of Section 4.05.  Upon a Termination of Service prior to his or
     her Retirement Date or death or Disability, the Participant shall
     immediately cease to be eligible for any other benefit provided under this
     Plan.

4.04 Disability Benefit.  In the event a Participant incurs a Disability which
     ------------------
     first manifests itself after the Participant's initial participation in the
     Plan but prior to his or her Retirement Date, distribution of the
     Participant's Deferred Compensation Account shall be made or commence as
     soon as practicable and in any event within ninety (90) days following
     receipt of notice by the Committee of the Participant's Disability.  The
     distributions shall be made as designated by the Participant in his or her
     Retirement Payout Election Form subject to Section 4.05.  A Participant may
     petition the Committee requesting an acceleration of benefit payments due
     to be paid to the Participant.  The Committee may, but is not required to,
     grant the Participant's request.  Such benefit shall be payable until the
     earliest of the following events:  (i) there is no longer any balance in
     the Participant's Deferred Compensation Account; (ii) the Participant
     ceases to be disabled and resumes employment with the Company; or (iii) the
     Participant dies.  Disability benefits shall be treated as distributions
     from a Participant's Deferred Compensation Account.

     If a Disability occurs during the period elected in the Agreement, the
     disabled Participant's Agreement shall be suspended, and further deferrals
     shall not be required during the period of Disability.

                                       8
<PAGE>

4.05 Method of Timing of Distribution.
     --------------------------------

     a)   Election in Agreement.  Except in the case of a Termination of
          ---------------------
          Service prior to a Participant's Retirement Date for reasons other
          than death or Disability, distribution of the Participant's Deferred
          Compensation Account shall be made in a lump-sum or installments, as
          elected by the Participant in his or her Retirement Payout Election
          Form.  Installment payments shall be made monthly over a period of
          three (3) to fifteen (15) years, as elected by the Participant in his
          or her Retirement Payout Election Form.  The amount of each monthly
          installment shall be determined annually and shall be equal to the
          quotient obtained by dividing the balance of the Participant's
          Deferred Compensation Account being distributed in installments by the
          number of installments remaining to be paid, including the current
          installment.  Notwithstanding the above calculation, as elected by the
          Participant in his or her Retirement Payout Election Form, at the time
          a Participant is scheduled to receive his or her final installment
          payment, the Participant shall be paid his or her remaining Deferred
          Compensation Account balance.

     b)   Election to Change Method of Distribution.  A Participant may, by
          -----------------------------------------
          written election filed with the Committee at least thirteen (13)
          months prior to the distribution or commencement of distribution of a
          Deferred Compensation Account, change the method of distribution
          elected with respect to a Deferred Compensation Account to any other
          method permitted under Section 4.05(a).  After a Participant's death,
          the Participant's Beneficiary may, prior to the distribution or
          commencement of distribution of the Participant's Deferred
          Compensation Account, petition the Committee requesting an
          acceleration of benefit payments otherwise due to be paid to the
          Beneficiary.  The Committee may, but is not required to, grant the
          Beneficiary's request.

     c)   Small Benefit Cash-Out.  Notwithstanding any payment method elected
          ----------------------
          by a Participant or Beneficiary, the Committee may, in its sole
          discretion, direct payment in a lump-sum of any Deferred Compensation
          Account with a balance less than $5,000.

4.06 Interim Distribution.  At the time a Participant executes an Agreement,
     --------------------
     he or she may elect to receive an interim distribution equal to the
     principal amount deferred.  In the event the value of the Participant's
     Deferred Compensation Account as of the time of the interim distribution is
     less than the amount otherwise payable, the Participant shall be paid his
     or her Deferred Compensation Account.  The interim distribution election
     shall specify the year ("Distribution Year") in which such interim
     distribution shall be made, which shall be no less than four (4) Plan Years
     after the Plan Year in which the deferral was originally made.  Provided
     the Participant has not had an earlier Termination of Service, Disability
     or death, the interim distribution shall be made in a lump-sum.  The
     interim distribution shall be made or commence on the first pay period of
     January

                                       9
<PAGE>

     following the interim distribution election.  Once a Participant elects to
     receive an interim distribution, the election shall be irrevocable.  Any
     interim distribution paid shall be deemed a distribution, and shall be
     deducted from the Participant's Deferred Compensation Account.  A separate
     interim distribution election shall be made for each Plan Year in which
     amounts are deferred.

     If a Participant is not currently deferring any percentage of his or her
     Salary, Bonus, and/or LTIP Payment pursuant to the terms of this Plan at
     the time he or she is scheduled to receive an interim distribution, and his
     or her remaining Deferred Compensation Account balance after the interim
     distribution was paid would be less than $5,000, the Participant will be
     paid his or her total Deferred Compensation Account balance at the time the
     interim distribution is due to be paid.

4.07 Hardship Distributions; Waiver of Deferral.  In the event that the
     ------------------------------------------
     Committee, upon written petition of the Participant or his or her
     Beneficiary, determines in its sole discretion, that the Participant or his
     or her Beneficiary has suffered an unforeseeable financial emergency, his
     Employer shall pay to the Participant or his or her Beneficiary as soon as
     reasonably practicable following such determination, an amount, not in
     excess of the Participant's Deferred Compensation Account, necessary to
     satisfy the emergency.  For purposes of this Plan, an unforeseeable
     financial emergency is an unanticipated emergency that is caused by an
     event beyond the control of the Participant or Beneficiary and that would
     result in severe financial hardship to the individual if the emergency
     distribution were not permitted, as may result from illness, casualty loss
     or sudden financial reversal.  Financial needs arising from foreseeable
     events, such as the purchase of a residence or education expenses for
     children, shall not be considered a financial emergency.  A Participant who
     receives a hardship distribution pursuant to this Section 4.07, may also be
     required to cease making deferrals, pursuant to this Plan, for the
     remainder of the Plan Year which begins on the date the hardship
     distribution is made in addition to the subsequent Plan Year, as determined
     by the Committee.  A Participant who is required to cease making deferrals
     due to the receipt of a hardship distribution, shall be permitted to begin
     making deferrals into this Plan by filing a new Agreement with the
     Committee which new Agreement shall become effective with respect to the
     designated subsequent Plan Year upon acceptance of the new Agreement by the
     Committee.  The new Agreement must be filed with the Committee in
     accordance with the provisions of Section 3.01.

4.08 Withholding; Employment Taxes.  To the extent required by the law in
     -----------------------------
     effect at the time payments are made, the Employer shall withhold any taxes
     required to be withheld by the federal, or any state or local, government.

4.09 Commencement of Payments.  Unless otherwise provided, payments under this
     ------------------------
     Plan shall commence as soon as practicable following the Participant's
     eligibility for payment, but in no event later than ninety (90) days
     following receipt of notice by the Committee of an

                                       10
<PAGE>

     event which entitles a Participant or a Beneficiary to payments under this
     Plan, or at such other date as may be determined by the Committee in its
     sole discretion.

4.10 Change in Control Distribution Election.  Notwithstanding any other
     ---------------------------------------
     provision of this Plan:

     a)   Any Participant may, at any time during the twenty-four (24) month
          period immediately following a Change in Control, elect to receive an
          immediate lump- sum payment of the balance of his or her Deferred
          Compensation Account, reduced by a penalty equal to ten percent (10%)
          of the value of the Participant's remaining Deferred Compensation
          Account. The ten percent (10%) penalty amount shall be permanently
          forfeited. In the event no such request is made by a Participant, the
          Participant's Deferred Compensation Account shall be paid in
          accordance with the provisions of this Article IV. Any Participant who
          elects to receive an immediate lump-sum payment pursuant to this
          Section 4.10, shall not be eligible to make any additional deferrals
          into this Plan for the remainder of the Plan Year in which the lump-
          sum payment is received, in addition to the subsequent Plan Year.

     b)   Any retired Participant or any Beneficiary of a deceased Participant
          may, at any time during the twenty-four (24) month period immediately
          following a Change in Control, elect to receive an immediate lump-sum
          payment of the balance of his or her Deferred Compensation Account,
          reduced by a penalty equal to five percent (5%) of the value of the
          retired Participant's or Beneficiary's remaining Deferred Compensation
          Account. The five percent (5%) penalty amount shall be permanently
          forfeited. In the event no such request is made by a retired
          Participant or Beneficiary, the Deferred Compensation Account shall be
          paid in accordance with the provisions of this Article IV.

4.11 Recipients of Payments: Designation of Beneficiary.  All payments to be
     --------------------------------------------------
     made by an Employer under the Plan shall be paid to the Participant during
     his or her lifetime, provided that if the Participant dies prior to the
     commencement or completion of such payments, then all subsequent payments
     under the Plan shall be made by the Employer to the Beneficiary determined
     in accordance with this Section 4.11. The Participant may designate a
     Beneficiary by filing a written notice of such designation with the
     Committee in such form as the Committee requires and may include a
     contingent Beneficiary. The Participant may from time to time change the
     designated Beneficiary by filing a new designation in writing with the
     Committee. If no designation is in effect at the time any benefits payable
     under this Plan become due, the Beneficiary shall be the Beneficiary
     designated by the Participant under the Incentive Savings Plan, if any, or
     if no such designation exists under the Incentive Savings Plan, the
     Participant's estate.

4.12 Distributions in Cash.  All distributions of Deferred Compensation
     ---------------------
     Accounts shall be paid in United States dollars.

                                       11
<PAGE>

V.   CLAIM FOR BENEFITS PROCEDURE
     ----------------------------

5.01 Claim for Benefits.  Any claim for benefits under the Plan shall be made
     ------------------
     in writing to the Committee.  If such claim for benefits is wholly or
     partially denied by the Committee, the Committee shall, within a reasonable
     period of time, but not later than sixty (60) days after receipt of the
     claim, notify the claimant of the denial of the claim.  Such notice of
     denial shall be in writing and shall contain:

     a)   the specific reason or reasons for the denial of the claim;

     b)   a reference to the relevant Plan provisions upon which the denial is
          based;

     c)   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

     d)   an explanation of the Plan's claim review procedure.

5.02 Request for Review of a Denial of a Claim for Benefits.  Upon the receipt
     ------------------------------------------------------
     by the claimant of written notice of the denial of a claim, the claimant
     may file a written request within sixty (60) days to the Committee
     requesting a review of the denial of the claim, which review shall include
     a hearing if deemed necessary by the Committee. In connection with the
     claimant's appeal of the denial of his or her claim, he or she may review
     relevant documents and may submit issues and comments in writing. To
     provide for fair review and a full record, the claimant must submit in
     writing all facts, reasons and arguments in support of his or her position
     within the time allowed for filing a written request for review. All issues
     and matters not raised for review will be deemed waived by the claimant.

5.03 Decision Upon Review of a Denial of a Claim for Benefits.  The Committee
     --------------------------------------------------------
     shall render a decision on the claim review promptly, but no more 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) require
     an extension of time, in which case the sixty (60) day period shall be
     extended to one hundred-twenty (120) days.  Such decision shall:

     a)   include specific reasons for the decision;

     b)   be written in a manner calculated to be understood by the claimant;
and

     c)   contain specific references to the relevant Plan provisions upon which
          the decision is based.

                                       12
<PAGE>

     The decision of the Committee shall be final and binding in all respects on
     the Company, the claimant and any other person claiming an interest in the
     Plan through or on behalf of the claimant.  No litigation may be commenced
     by or on behalf of a claimant with respect to this Plan until after the
     claim and review process described in this Article V has been exhausted.
     Judicial review of Committee action shall be limited to whether the
     Committee acted in an arbitrary and capricious manner.

VI.  ADMINISTRATION
     --------------

6.01 Plan Committee.  The Company, by action of its Board of Directors, shall
     --------------
     appoint a Committee of at least three persons to administer the Plan as
     herein set forth.  The Committee may assign duties to an officer or other
     employees of an Employer, and may delegate such duties as it sees fit.  A
     member of the Committee who is also a Participant shall not be involved in
     the decisions of the Committee regarding any determination of any specific
     claim for benefit with respect to himself or herself.

6.02 General Rights, Powers and Duties of Committee.  The Committee shall be
     ----------------------------------------------
     responsible for the management, operation and administration of the Plan.
     In addition to any powers, rights and duties set forth elsewhere in the
     Plan, it shall have complete discretion to exercise the following powers
     and duties.

     a)   Adopt such rules and regulations consistent with the provisions of the
          Plan as it deems necessary for the proper and efficient administration
          of the Plan.

     b)   Administer the Plan in accordance with its terms and any rules and
          regulations it establishes.

     c)   Maintain records concerning the Plan sufficient to prepare reports,
          returns, and other information required by the Plan or by law.

     d)   Construe and interpret the Plan, and to resolve all questions arising
          under the Plan.

     e)   Direct the Employers to pay benefits under the Plan, and to give such
          other directions and instructions as may be necessary for the proper
          administration of the Plan.

     f)   Employ or retain agents, attorneys, actuaries, accountants or other
          persons, who may also be Participants in the Plan or be employed by or
          represent the Company, as it deems necessary for the effective
          exercise of its duties, and may delegate to such persons any power and
          duties, both ministerial and discretionary, as it may deem necessary
          and appropriate, and the Committee shall be responsible for the
          prudent monitoring of their performance.

                                       13
<PAGE>

     g)   Be responsible for the preparation, filing, and disclosure on behalf
          of the Plan of such documents and reports as are required by any
          applicable federal or state law.

6.03 Information to be Furnished to Committee.  The records of the Company
     ----------------------------------------
     shall be determinative of each Participant's period of employment,
     Termination of Service and the reason therefore, Disability, leave of
     absence, reemployment, personal data, Salary, Bonus, and/or LTIP Payment.
     Participants and their Beneficiaries shall furnish to the Committee such
     evidence, data or information, and execute such documents as the Committee
     requests.

6.04 Indemnification.  No member of the Committee shall be liable to any
     ---------------
     person for any action taken or omitted in connection with the
     administration of this Plan unless attributable to his or her own fraud or
     willful misconduct (or that of the Committee, in which he or she
     participated); nor shall any Employer be liable to any person for any such
     action unless attributable to fraud or willful misconduct on the part of a
     director, officer or employee of an Employer.  This indemnification shall
     not duplicate, but may supplement, any coverage available under any
     applicable insurance coverage.

VII. AMENDMENT AND TERMINATION
     -------------------------

7.01 Amendment.  The Plan may be amended in whole or in part by a written
     ---------
     instrument adopted by the Company at any time.  Notice of any material
     amendment shall be given in writing to the Committee and to each
     Participant and each Beneficiary.  No amendment shall retroactively
     decrease either the balance of a Participant's Deferred Compensation
     Account or a Participant's interest in his or her Deferred Compensation
     Account as existing immediately prior to the later of the effective date or
     adoption date of such amendment.

7.02 Company's Right to Terminate.  The Company reserves the sole right to
     ----------------------------
     terminate, by action of the Committee, the Plan and/or the Agreement
     pertaining to a Participant at any time prior to the commencement of
     payment of his or her benefits. In the event of any such termination, a
     Participant shall be deemed to have incurred a Termination of Service, and
     his or her Deferred Compensation Account shall be paid in the manner
     provided in Section 4.03.

7.03 Special Termination.  Any other provision of the Plan to the contrary
     -------------------
     notwithstanding, the Plan shall terminate if:

     The Plan is held to be ERISA Funded or Tax Funded by a federal court, and
     appeals from that holding are no longer timely or have been exhausted.  The
     Company may terminate the Plan if it determines, based on a legal opinion
     which is satisfactory to the Company, that either judicial authority or the
     opinion of the U.S. Department of Labor, Treasury Department or Internal
     Revenue Service (as expressed in proposed or final regulations,

                                       14
<PAGE>

     advisory opinions or rulings, or similar administrative announcements)
     creates a significant risk that the Plan will be held to be ERISA Funded or
     Tax Funded, and failure to so amend the Plan could subject any Employer or
     the Participants to material penalties.  Upon any such termination, the
     Company may:

     a)   Transfer the rights and obligations of the Employer and some or all
          Participants as determined by the Company in its discretion, to a new
          plan established by the Company, which is not deemed to be ERISA
          Funded or Tax Funded, but which is substantially similar in all other
          respect to this Plan, if the Company determines that it is possible or
          desirable to establish such a Plan;

     b)   If the Company, in its sole discretion, determines that it is not
          possible or desirable to establish the Plan in (a) above, for some or
          all Participants, such Participants shall be paid a lump-sum equal to
          the value of his or her Deferred Compensation Account;

     c)   Pay to a Participant a lump-sum benefit equal to the value of his or
          her Deferred Compensation Account to the extent that a federal court
          has held that the interest of the Participant in the Plan is
          includable in the gross income of the Participant for federal income
          tax purposes prior to actual payment of Plan benefits; or

     d)   Pay to a Participant a lump-sum benefit equal to the value of his or
          her Deferred Compensation Account if, based on a legal opinion
          satisfactory to the Company, there is a significant risk that such
          Participant will be determined not to be part of a "select group of
          management or highly compensated employees" for purposes of ERISA.

     A lump-sum payment to be made in accordance with this Section shall be
     subject to the provisions of Section 4.09.

VIII.  MISCELLANEOUS
       -------------

8.01 Separation of Plan:  No Implied Rights.  Neither the establishment of the
     --------------------------------------
     Plan nor any amendment thereof shall be construed as giving any
     Participant, Beneficiary, or any other person any legal or equitable right
     unless such right shall be specifically provided for in the Plan or
     conferred by specific action of the Company in accordance with the terms
     and provisions of the Plan.  Except as expressly provided in this Plan,
     neither the Company nor any other Employer shall be required or be liable
     to make any payment under this Plan.

8.02 No Right to Employer Assets.  Neither the Participant nor any other
     ---------------------------
     person shall acquire by reason of the Plan any right in or title to any
     assets, funds or property of any Employer whatsoever, including, without
     limiting the generality of the foregoing, any specific

                                       15
<PAGE>

     funds, assets or other property which an Employer, in its sole discretion,
     may set aside in anticipation of a liability hereunder.  Any benefits which
     become payable hereunder shall be paid from the general assets of the
     Employers.  The Participant and his or her Beneficiary shall have only a
     contractual right to the amounts, if any, payable hereunder, unsecured by
     any asset of the Employers.  Nothing contained in the Plan constitutes a
     guarantee by the Company that the assets of any Employer shall be
     sufficient to pay any benefits to any person.

8.03 No Employment Rights.  Nothing herein shall constitute a contract of
     --------------------
     employment or of continuing service or in any manner obligate any Employer
     to continue the services of the Participant, or obligate the Participant to
     continue in the service of his or her Employer, or as a limitation of the
     right of any Employer to discharge any of its employees, with or without
     cause.  Nothing herein shall be construed as fixing or regulating the
     Salary, Bonus, and/or LTIP Payment payable to the Participant.

8.04 Offset.  If, at the time payments or installments of payments are to be
     ------
     made hereunder, the Participant or Beneficiary is indebted or obligated to
     any Employer, then the payments remaining to be made to the Participant or
     the Beneficiary may, at the discretion of the Employer, be reduced by the
     amount of such indebtedness or obligation.  However, an election by the
     Employer not to reduce any such payment or payments shall not constitute a
     waiver of its claim, or prohibit or otherwise impair the Employer's right
     to offset future payments for such indebtedness or obligation.

8.05 Protective Provisions.  In order to facilitate the payment of benefits
     ---------------------
     hereunder, each employee designated eligible to participate in the Plan,
     shall cooperate with the Company by furnishing any and all information
     requested by the Company, including taking such physical examinations as
     the Company may deem necessary, and taking such other actions as may be
     requested by the Company.  If an employee refuses to cooperate, he or she
     shall not become a Participant in the Plan and the Company shall have no
     further obligation to him or her under the Plan.  In the event a
     Participant has a balance in his or her Deferred Compensation Account, the
     Participant or his or her Beneficiary shall receive a benefit equal to his
     or her Deferred Compensation Account determined pursuant to Section 3.08
     and paid in accordance with Section 4.03.

8.06 Non-assignability.  Neither the Participant nor any other person shall
     -----------------
     have any voluntary or involuntary right to commute, sell, assign, pledge,
     anticipate, mortgage or otherwise encumber, transfer, hypothecate, or
     convey in advance of actual receipt the amounts, if any, payable hereunder,
     or any part thereof, which are expressly declared to be unassignable and
     non-transferable.  No part of the amounts payable shall be, prior to actual
     payment, subject to seizure or sequestration for the payment of any debts,
     judgments, alimony or separate maintenance owed by the Participant or any
     other person, or be transferable by operation of law in the event of the
     Participant's or any other person's bankruptcy or insolvency.

                                       16
<PAGE>

8.07 Gender and Number Wherever appropriate herein, the masculine may mean
     -----------------
     feminine and the singular may mean the plural, or vice versa.

8.08 Notice.  Any notice required or permitted to be given under the Plan
     ------
     shall be sufficient if in writing and hand delivered, or sent by registered
     or certified mail, and if given to the Company, delivered to the principal
     office of the Company, directed to the attention of the Committee.  Such
     notice shall be deemed given as of the date of delivery, or, if delivery is
     made by mail, as of the date shown on the postmark or the receipt for
     registration or certification.

8.09 Governing Laws.  The Plan shall be construed and administered according to
     --------------
     the laws of the State of Ohio to the extent not pre-empted by federal law.

8.10 Capital Accumulation Plan Trust.  The Company may establish a Trust with
     -------------------------------
     independent trustees, and shall comply with the terms of the Trust.  The
     Company may transfer or cause to be transferred to the trustees an amount
     of cash, marketable securities, or other property acceptable to the
     trustees ("Trust Property") equal in value to all or a portion of the
     amount necessary, calculated in accordance with the terms of the Trust, to
     pay the Employers' obligations under the Plan (the "Funding Amount"), and
     may make or cause to be made additional transfers to the trustees as may be
     necessary in order to maintain the Funding Amount.  Trust Property so
     transferred shall be held, managed, and disbursed by the trustees in
     accordance with the terms of the Trust.  To the extent that Trust Property
     shall be used to pay an Employer's obligations under the Plan, such
     payments shall discharge obligations of the Employer; however, the Employer
     shall continue to be liable for amounts not paid by the Trust.  Trust
     Property will nevertheless be subject to claims of the Employer's creditors
     in the event of bankruptcy or insolvency of the Employer, and the
     Participant's rights under the Plan and Trust shall at all times be subject
     to the provisions of Section 8.02.

IN WITNESS WHEREOF, the Company has adopted the Oglebay Norton Company Capital
Accumulation Plan effective January 1, 2000.

OGLEBAY NORTON COMPANY

By Ronald J. Compiseno
   -----------------------------

Its: Vice President - Human Resources

                                       17

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