Document:

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                                                                    Exhibit 10.3

Updated for name changes and JPMorgan Merger

                        DEFERRED COMPENSATION PROGRAM OF

                              JPMORGAN CHASE & CO.

                           AND PARTICIPATING COMPANIES

PREAMBLE

            The Deferred Compensation Program permits annual deferrals by
certain key officers of all or a portion of their incentive compensation under
the Voluntary Bonus Deferral Plan. The Program permits deferrals of Eligible
Compensation under the 401(k) Excess Savings Plan when certain plan or legal
limits reduce contributions that would be otherwise made by officers and
employees pursuant to the JPMorgan Chase 401(k) Savings Plan, a qualified plan
and also permits additional deferrals for commissioned paid employees under a
Voluntary Compensation Deferral Plan. At the determination of the Administrator,
the Program can include other deferral features.

            The Program is a successor to the Deferred Compensation Program of
The Chase Manhattan Corporation and Participating Companies, the Deferred
Compensation Plan of Chemical Bank and Participating Companies, the
Thrift-Incentive portion of TRA 86 Supplemental Benefit Plan of The Chase
Manhattan Bank, N.A. and the J.P. Morgan Deferred IC Program. Balances in each
reference plan are subject to the terms of this Program except as otherwise
provided herein.

            Additionally, the Supplemental Executive Retirement Plan of The
Chase Manhattan Bank, N.A. was terminated as of December 31, 1996. The
Supplemental Retirement Accounts, as well as the Pre-1988 frozen annuity which
was converted to a lump sum, became part of a Participant's account hereunder.

            The terms and conditions of this Program govern any amount
previously deferred thereunder. This Program became effective January 1, 1996.

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           The Program represents an unsecured, unfunded promise to make
payments in the future.

                                    ARTICLE I

                                   DEFINITIONS

      The following are defined terms wherever they appear in the Program.

            1.1 "Additional Credit" shall mean the amount specified in Section
3.2(d).

            1.2 "Administrator" shall mean the individual holding the title
"Director Human Resources" of the Corporation, who shall be responsible for
those functions assigned to him under the Plan; provided that the term
"Administrator" shall mean the Committee with respect to any discretionary act
hereunder which affects any person subject to Section 16(a) of the Securities
Exchange Act of 1934, as amended.

            1.3 "Bank" shall mean JPMorgan Chase Bank NA.

            1.4 "Beneficiary" shall mean the persons designated by a
Participant, on a form provided by the Administrator, to receive in the event of
his/her death the value of any undistributed account balance under this Program.
Any designation shall include amounts deferred under the 401(k) Excess Savings
Plan, the Voluntary Bonus Deferral Plan and the Voluntary Compensation Deferral
Plan and amounts transferred to an account under this Program from the JPMorgan
Chase Excess Retirement Plan (formerly the Excess Retirement Plan of The Chase
Manhattan Corporation) and such other amounts deferred under such other plans or
arrangements as may be specified by the Administrator.

            1.5 "Benefits Eligible Compensation" shall mean salary, commissions,
draw and production overrides deferred under the Voluntary Compensation Deferral
Plan.

            1.6 "Board of Directors" shall mean the Board of Directors of the
Corporation; provided that any action taken by a duly authorized committee of
the Board of

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Directors (including any action described in Section 5.4) within the scope of
authority delegated to it by the Board shall be considered an action of the
Board of Directors for the purpose of this Plan.

            1.7 "Chemical Plan" shall mean the Deferred Compensation Plan of
Chemical Banking Corporation and Participating Companies as in effect on
December 31, 1996.

            1.8 "Code" shall mean the Internal Revenue Code of 1986, as amended.

            1.9 "Committee" shall mean the Compensation and Management
Development Committee of the Board of Directors.

            1.10 "Corporation" shall mean J.P. Morgan Chase & Co.

            1.11 "Deferral Percentage" shall mean the percentage elected by an
Eligible Employee described in Section 2.1(d) on an Election Form under the
Qualified Plan; provided that no Deferral Percentage can be elected unless the
individual has elected a Pre-Tax Contribution rate of 5% under the Qualified
Plan; provided further that the Deferral Percentage shall not exceed 10% for
period commencing January 1, 2000 and ending December 31, 2001 and 15%
commencing January 1, 2002.

            1.12 "DSIB" shall mean the hypothetical investment choice described
in Section 3.3(b).

            1.13 "Election Form" shall mean the method specified by the
Administrator to participate in the Program and to make deferral and
hypothetical investment elections under the Program. Such methods may include,
but not be limited to, interactive voice response, internet, and other
electronic means.

            1.14 "Eligible Compensation" shall have the meaning specified in the
Qualified Plan.

            1.15 "Eligible Employee" shall mean an Employee described in Section
2.1.

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            1.16 "Employee" shall mean an individual whose employment
classification is that of a regular full-time employee and who is on a United
States payroll of a Participating Company.

            1.17 "Former Participant" shall mean a Participant whose employment
has terminated and whose account balance under the Program has not been fully
distributed.

            1.18 "J.P. Morgan Deferred IC Program" shall mean the incentive
compensation program providing for deferral of bonuses sponsored by J.P. Morgan
& Co. Incorporated, the balances of which are subject to the terms of this
Program.

            1.19 "IPA" shall mean the hypothetical investment choice described
in Section 3.3.(b).

            1.20 "401(k) Excess Savings Plan" shall mean that feature of the
Program allowing deferrals of Eligible Compensation on a per pay period basis.

            1.21 "Legal Limit" shall mean the dollar limitation imposed by
Section 401(a)(17) of the Code on the amount of Eligible Compensation taken into
account in computing benefits under the Qualified Plan for a calendar year or
the limits imposed under Section 402(g) and Section 415 of the Code. In
addition, if so specified by the Administrator for any calendar year, "Legal
Limit" shall also mean any reduction in Pre-Tax Contributions or matching
contributions under the Qualified Plan because of the expected application of
Section 401(k)(3) of the Code or Section 401(m)(3) of the Code.

            1.22 "Participant" shall mean each Eligible Employee of a
Participating Company described in Section 2.1 who participates in the Program
in accordance with the terms and conditions applicable to a deferral arrangement
offered under the Program.

            1.23 "Participating Company" shall mean: (a) the Corporation and (b)
each Related Company which has been authorized by the Administrator to
participate in the Program and has agreed to comply with the provisions of the
Program.

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            1.24 "Pre-Tax Contributions" shall have the meaning specified in the
Qualified Plan.

            1.25 "Program" shall mean the Deferred Compensation Program of The
Chase Manhattan Corporation and Participating Companies as in effect from time
to time, which Program includes the 401(k) Excess Savings Plan, Voluntary Bonus
Deferral Plan and Voluntary Compensation Deferral Plan and such other deferral
features or plans as the Administrator may specify

            1.26 "Qualified Plan" shall mean the JPMorgan Chase 401(k) Savings
Plan.

            1.27 "Related Company" shall mean a corporation of which more than
51% of the combined voting power of all classes of stock entitled to vote or
equity interest is owned directly or indirectly by the Corporation or a
partnership, joint venture or other unincorporated entity of which more than 51%
of the capital, equity or profits interest is owned directly or indirectly by
the Corporation.

            1.28 "SERP Amounts" shall mean the amounts described in Sections
6.2(a)(i) and (ii) plus the investment experience thereon.

            1.29 "Supplemental Executive Retirement Plan" shall mean the
Supplemental Executive Retirement Plan of The Chase Manhattan Bank, N.A.

            1.30 "Total and Permanent Disability" or "Totally Disabled" shall
mean a disability that, in the determination of the Administrator, would qualify
an individual for benefits under a long term disability program maintained by
the Corporation or a Related Company.

            1.31 "TRA Supplemental Retirement Plan" shall mean the TRA 86
Supplemental Retirement Plan of The Chase Manhattan Bank, N.A.

            1.32 "Valuation Date" shall mean the close of business on the last
business day of each calendar month for any period prior to July 1, 1999 and
shall have the meaning set forth in Qualified Plan for periods on or after July
1, 1999; provided that the Administrator may specify in his/her sole discretion
a different Valuation Date or Dates for any investment choice

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provided under the Program and may apply such different Valuation Dates on an
individual by individual basis.

            1.33 "Voluntary Bonus Deferral Plan" shall mean that feature of the
Program allowing deferral of annual incentive compensation payable in the form
of a bonus.

            1.34 "Voluntary Compensation Deferral Plan" shall mean that feature
of the Program permitting the deferral of Benefits Eligible Compensation on a
per pay period basis for commissioned employees.

                                   ARTICLE II

                                  PARTICIPATION

            2.1 ELIGIBILITY. The Employees who shall be eligible to participate
in the Program are those officers and other key employees of a Participating
Company who:

            (a)   under the Voluntary Bonus Deferral Plan:

                  (i)   are participating in a cash incentive plan permitting
                        deferral of cash bonuses; and

                  (ii)  have a position or salary grade with a Participating
                        Company that has been designated by the Administrator as
                        eligible for participation in the Plan; or

                  (iii) have been specifically authorized by the Administrator
                        to participate in the Plan.

            (b) under the Voluntary Compensation Deferral Plan:

                  (i)   earned Benefit Eligible Compensation in a prior calendar
                        year in excess of the Legal Limit for the period
                        specified by the Administrator; and

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                  (ii)  have a position or salary grade with a Participating
                        Company that has been designated by Administrator as
                        eligible for participation in the Plan.

            (c)   under the 401(k) Excess Savings Plan for the period of January
                  1, 1997 through December 31, 1999:

                  (i)   were participating in the Qualified Plan electing to
                        make Pre-Tax Contributions during a calendar year; and

                  (ii)  were subject to the Legal Limit; and

                  (iii) were described in either Section 2.1(a)(ii) or (iii).

            (d)   under the 401(k) Excess Savings Plan after December 31, 1999:

                  (i)   are not permitted by the terms of the Qualified Plan to
                        make Pre-Tax Contributions during a calendar year in
                        excess of a 5 percent deferral rate, and

                  (ii)  are designated as eligible to participate in the 401(k)
                        Excess Savings Plan by the Administrator.

            2.2   DEFERRAL ELECTIONS.

            (a) Voluntary Bonus Deferral Plan. An Eligible Employee may annually
elect to defer incentive compensation and participate in the Voluntary Bonus
Deferral Plan by delivering a properly completed Election Form to the
Administrator; and, upon making such irrevocable election to defer incentive
compensation, such Eligible Employee shall be a Participant.

            (b) Voluntary Compensation Deferral Plan. An Eligible Employee may
annually elect to defer Benefits Eligible Compensation up to the maximum
percentage specified by the Administrator commencing with the first pay period
in a calendar year by delivering a

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properly completed Election Form to the Administrator. Upon making such
irrevocable election by delivering the Election Form, such Eligible Employee
shall be a Participant.

            (c) 401(k) Excess Savings Plan. (i) Effective as of December 31,
1999, by electing a Deferral Percentage on an Election Form (or continuing an
election of such a percentage), an Eligible Employee thereby elects to have an
amount each per pay period deferred under the 401(k) Excess Savings Plan.

            (ii) An Eligible Employee will automatically become a Participant
and will have amounts deferred under the 401(k) Excess Savings Plan after the
applicable Legal Limit is reached under the Qualified Plan based on the
percentage election made for the Qualified Plan.

            (iii) Prior to December 31, 1999, an Eligible Employee was required
to elect to defer Eligible Compensation under the 401(k) Excess Savings Plan
(after the applicable Legal Limit was reached for the calendar year under the
Qualified Plan) by delivering a properly completed Election Form to the
Administrator.

            2.3   TIMING AND EFFECTIVE DATE OF ELECTIONS.

                  (a) Any deferral election under the Voluntary Bonus Deferral
Plan shall be made at least three months prior to the end of the calendar year
to which the incentive compensation relates. Such election shall be irrevocable
following the end of the election period and shall be effective with respect to
any incentive compensation to be paid in the calendar year following the date of
the election.

                  (b) Any deferral election under the Voluntary Compensation
Deferral Plan shall be made at least three months prior to the beginning of the
calendar year to which the election relates. Such election shall be irrevocable
following the end of the election period and shall be effective for Benefit
Eligible Compensation to be received in the calendar year following the date of
the election.

                  (c) Any deferral election under the 401(k) Excess Savings Plan
and Deferral Percentage shall be made at the same time as any election under the
Qualified Plan

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and shall be effective at the same time as would an election under the Qualified
Plan be effective.

                  (d) Notwithstanding the dates specified in this Section 2.3,
the Administrator may prescribe an earlier or later date by which Participant
must elect to defer compensation.

                  (e) Under no circumstances may a Participant at any time defer
compensation to which the Participant has attained a legally enforceable right
to receive.

            2.4 TERMINATION OF 401(K) EXCESS SAVINGS ELECTION. An election to
defer Eligible Compensation under the 401(k) Excess Savings Plan will terminate
on the earlier of (i) termination of employment, (ii) ineligibility to
participate in the Qualified Plan, or (iii) filing of an election by such date
as may be specified by the Administrator to cease deferrals.

            2.5 TERMINATION OF A VOLUNTARY COMPENSATION DEFERRAL PLAN ELECTIONS.
An election to defer Benefits Eligible Compensation under the Voluntary
Compensation Deferral Plan will terminate on the earlier of (i) termination of
employment, (ii) the end of the calendar year to which the election relates, or
(iii) such earlier date as the Administrator may specify.

                                   ARTICLE III

                              COMPENSATION DEFERRED

            3.1 ACCOUNT.

            (a) With respect to deferrals under this Program, a bookkeeping
account shall be established for each Participant. Under the Program, amounts
deferred by a Participant, along with hypothetical income or losses on such
amounts (including Additional Credits, if any, with respect to deferrals under
the 401(k) Excess Savings Plan), shall be credited or debited to the account.

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            (b) For purposes of hypothetical investments under Section 3.3, for
periods prior to calendar year 2000, incentive compensation deferred with
respect to a calendar year was considered to be invested as of the first day of
the month immediately following the month in which incentive compensation would
otherwise have been payable. For periods after calendar year 2000, incentive
compensation deferred with respect to a calendar year shall be considered to be
invested as soon as administratively practical following the date on which such
compensation would otherwise have been payable.

            (c) For purposes of hypothetical investments under Section 3.3,
deferred Eligible Compensation or Benefit Eligible
Compensation shall be considered to be invested as soon as administratively
practical following the date on which such compensation would otherwise have
been payable.

            3.2   AMOUNT OF DEFERRAL.

            (a) Voluntary Bonus Deferral Plan. Under the Voluntary Bonus
Deferral Plan, a Participant shall have deferred all or a portion, by percentage
or by dollar amount (as specified on an Election Form), of any bonus or other
incentive award (other than any award payable as shares of common stock of the
Corporation) subject to a minimum of $5,000 that would otherwise be payable in
the calendar year following the election. For these purposes, bonus or incentive
compensation means only compensation otherwise payable in cash to a Participant
for services as an Employee of the Participating Company.

            (b) Voluntary Compensation Deferral Plan. Under the Voluntary
Compensation Deferral Plan, a Participant shall have deferred for each pay
period an amount equal to the product of the percentage elected on an Election
Form and Benefit Eligible Compensation (otherwise payable for such pay period).

            (c) 401(k) Excess Savings Plan. For calendar year 2000 and
following, a Participant shall have deferred from Eligible Compensation for each
pay period an amount equal to the product of the Deferral Percentage (as in
effect from time to time pursuant to an Election Form) and Eligible
Compensation. In addition, a Participant shall have deferred from Eligible

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Compensation, in each pay period following the date that the Pre-Tax
Contributions under the Qualified Plan ceased because of the application of the
Legal Limit, an amount equal to the product of the (I) rate of Pre-Tax
Contribution under the Qualified Plan (as in effect) and (ii) Eligible
Compensation for any remaining pay periods.

            (d) Additional Credit. To the extent that Eligible Compensation is
being deferred under the 401(k) Excess Savings Plan because of the application
of the Legal Limit, there shall be credited to an individual's account an amount
equal to the product of Eligible Compensation for any pay period remaining in
the calendar year and the lesser of (i) the maximum employer matching
contribution rate under the Qualified Plan or (ii) the rate elected under the
Qualified Plan prior to application of the Legal Limit, unless the Participant
elects subsequently a lower percentage. Such Additional Credit shall vest in
accordance with the schedule set forth in the Qualified Plan. Notwithstanding
the foregoing or anything hereinto the contrary, no Additional Credits will
apply to the accounts of those Participants whose Eligible Compensation in whole
or part consist of commissions, draw or production overrides or to Participants
employed in one of the wholesale businesses of a Participating Company.

            (e) Not in Excess. The amount credited to a Participant's account
under Section 3.2(c) and (d) along with the amount credited to such Participant
under the Qualified Plan shall not exceed the amount that would have been
contributed for the Participant but for the application of the Legal Limit.

            3.3   HYPOTHETICAL INVESTMENT.

            (a) Subject to the provisions of Section 3.4, amounts credited to an
account shall be deemed to be invested, at the Participant's direction, in one
of the investment vehicles offered under the Qualified Plan and shall be
credited with the same rates of returns as provided by the Qualified Plan for
such funds (except for the Chase Common Stock Fund under the Qualified Plan).
Unless otherwise specified by the Administrator, hypothetical investment funds
shall change as the investment vehicle under the Qualified Plan change and shall
be subject to the same charges and expenses as provided for in the Qualified
Plan.

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            (b) In addition to hypothetical investment funds in (a), the Program
provides

            (i)   Deferred Supplemental Income Benefit ("DSIB"). Amounts treated
                  as invested in DSIB shall earn the rate of return specified by
                  the Administrator for that year and future years up to the
                  January 1, immediately prior to the date of distribution of
                  the first installment of the DSIB; provided that, however,
                  with respect to deferrals during a calendar year under the
                  410(k) Excess Savings Plan or transfers/reallocations of
                  deferred incentive compensation, the amount designated as
                  invested in DSIB shall receive the rate specified for the next
                  succeeding calendar year, and such mid-year deferral or
                  reallocation shall receive the rate of return of the Stable
                  Value investment choice until treated as if invested in DSIB.
                  The DSIB rate of return shall not be applicable if employment
                  of a Participant terminates with less than five years of
                  service, or before age 65 with respect to deferrals made
                  within 12 month of termination of employment. In such
                  circumstances, that portion of the account shall receive, in
                  lieu of the DSIB rate, the rate provided by the Stable Value
                  investment choice for each year deemed invested in DSIB. The
                  Administrator has the discretion to impose minimum and maximum
                  allocations to DSIB. A hypothetical investment election in the
                  DSIB shall only be effective if the Participant cooperates
                  with the reasonable requests of the Administrator, including
                  the completion of an insurance application/consent and a
                  physical; provided further should a Participant revoke his/her
                  consent to insurance, then no benefit shall be payable under
                  DISB.

            (ii)  Inflation-Protected Annuity Benefit ("IPA"). Effective July 1,
                  2003, the IPA was discontinued for future investments and
                  amounts pending IPA were treated as invested in the Stable
                  Value investment choice as of June 30, 2003 unless the
                  Participant otherwise elected. Amounts treated as invested in
                  IPA shall earn (a) a rate of return specified by the

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                  Administrator for that year and future years, and (b) an
                  annual inflation adjustment return each year based on changes
                  in the non-seasonally adjusted Consumer Price Index for Urban
                  Consumers and year end account balance allocated to IPA, in
                  either case up to the January 1, immediately prior to the date
                  of distribution of the first installment of the IPA; provided
                  that however, with respect to deferrals during a calendar year
                  under the Excess 410(k) Plan or reallocations of deferred
                  incentive compensation, the amount designated as invested in
                  IPA shall receive the rate specified for the next succeeding
                  calendar year, and such mid-year deferral or reallocation
                  shall receive the rate of return of the Stable Value
                  investment choice until treated as if invested in IPA. The
                  Administrator has the discretion to impose minimum and maximum
                  allocations to IPA.

            (iii) NASDAQ 100 Investment Choice. Amounts treated as invested in
                  the NASDAQ 100 investment choice shall earn a rate of return
                  that approximates the rate of return published for the NASDAQ
                  100 Index .

            (c) Amounts treated as invested in the common stock investment
choice (including dividend equivalents) shall be treated as if invested in fixed
shares of common stock of the Corporation ("Common Stock investment choice");
and for valuation purposes, the New York Stock Exchange closing market price for
such stock on the date of any such deemed investment of compensation or dividend
equivalents shall be used.

            (d) The Administrator may, in his sole discretion, provide to
classes of Participants and Former Participants, as he shall specify, additional
hypothetical investments currently a Private Equity investment choice and
Multi-Strategy investment choice. With respect to amounts treated as if invested
in such additional hypothetical investments, the Administrator may specify (i)
restrictions on transfers and re-allocations and (ii) a distribution schedule
different from that specified herein; provided that the Administrator may change
such

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restrictions and distribution schedule, in his discretion, on 30 days
advance notice to Participants and Former Participants.

            3.4 LIMITATIONS ON HYPOTHETICAL INVESTMENTS. Notwithstanding the
provisions of Section 3.3, the Administrator may, in his sole discretion

                  (i) replace any investment vehicle with a deemed investment
            vehicle having comparable investments and investment objectives and
            risks substantially similar to the vehicle being replaced, or

                  (ii) discontinue such vehicle as an alternative for deemed
            investment hereunder and provide each affected Participant the
            opportunity,

without limiting or otherwise impairing any other right of the Participant under
this Article III regarding changes of investment directions, to redirect the
allocation of the value of such Participant's account that had been deemed
invested in such discontinued investment fund among the remaining deemed
investment vehicles or, in the discretion of the Administrator, into another
deemed investment vehicle established by the Administrator. See Appendix I with
respect to the exercise of the Administrator's discretion for changes to funds
and allocation of existing balances under this Program and the J.P. Morgan
Deferred IC Program as of January 1, 2002. See Appendix II for changes effective
June 30, 2003.

            3.5   HYPOTHETICAL INVESTMENT.

            (a) As of each Valuation Date, the value of each Participant's
account shall be determined by reference to the value of the hypothetical
investment choice for the particular fund or funds under the Qualified Plan (or,
if applicable, the published rate of return for the NASDAQ Index, the Common
Stock or such other fund as may be made available) in which the portion of the
account is deemed invested plus any income or loss on that hypothetical
investment choice. The amounts credited to DSIB and IAP shall receive the rate
specified at the date of the deemed investment.

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            (b) Except as provided in Section 3.4, amounts for which no
investment election has been made shall be treated as if
invested in the Stable Value Fund, until such election is made.

                  3.6   ALLOCATION OF HYPOTHETICAL INVESTMENTS; REALLOCATION OF
HYPOTHETICAL INVESTMENTS.

            (a) A Participant may elect the manner at such times, as the
Administrator may specify, in which deferrals of future incentive compensation,
Benefits Eligible Compensation or Eligible Compensation, are deemed allocated to
one or more of the hypothetical investments described in Section 3.3.

            (b) A Participant or Former Participant may at such times, as the
Administrator may specify, also reallocate/transfer among the hypothetical
investments amounts previously credited to his account on a Valuation Date;
provided that a Participant or Former Participant may not reallocate any amounts
treated as if invested in the Corporation's common stock or DSIB to any other
hypothetical investment choice; provided, further, that for periods prior to
July 1, 1999, a request for reallocation must have been received before the
fifth business date preceding a Valuation Date for it to be effective for that
Valuation Date.

            (c) The Administrator in his/her sole discretion may limit transfers
and reallocation among funds under this Program in such manner as he/she may
deem appropriate. The Administrator may exercise such authority on a Program
wide basis or on an individual by individual basis.

            3.7 STATEMENT OF ACCOUNT. A statement shall be provided to each
Participant or Former Participant with respect to the amount of his account at
least once a calendar year.

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                                   ARTICLE IV

                        PAYMENT OF DEFERRED COMPENSATION

4.1         PAYMENT OF DEFERRED COMPENSATION.

            (a) Termination of Employment. Except as provided in subsection (b),
upon termination of the Participant's employment with the Corporation or a
Related Company, the value of the account of such individual shall be
distributed to such individual during the month of January or July following the
date of such termination of employment in either installments or a lump sum, as
the Administrator may specify; provided that if the Participant has made a
timely election as solely determined by the Administrator (but always prior to
the calendar year before a payment is due), the Participant shall receive the
value of the account in annual installments or a lump sum in such calendar as
selected by the Participant subject to the consent of the Administrator. The
maximum installment election cannot exceed 15 annual installments, and the
account must be distributed by the date that a Participant attains age 80. An
installment amount shall be based on the balance of an account divided by the
number of installments remaining to be made.

            (b) J.P. Morgan Deferred IC Program. Notwithstanding (a) above,
Participants in the J.P. Morgan Deferred IC Program whose employment terminated
on or before December 31, 2001 or who were receiving as of October 31, 2001
distributions from such Program remain subject to the terms of the J.P. Morgan
Deferred IC Program. In the case of other Participants in the J.P. Morgan
Deferred IC Program, their balances became subject to the terms and conditions
of this Program effective January 1, 2002.

            (c) Total and Permanent Disability. Upon a termination of employment
due to a Total and Permanent Disability of a Participant, the Administrator may,
in his or her sole discretion, distribute the account under the Program
distributed pursuant to Section 4.1(a).

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            (d) In-Service Withdrawal. A Participant at the date of an election
to participate with respect to a deferral of incentive compensation (or with
respect to the Eligible Compensation or Benefits Eligible Compensation Plan on
the date specified by the Administrator for deferrals in the next succeeding
year) may elect a specific year during active employment in which to begin
receiving the portion of the Account representing such deferred incentive
compensation; provided that such date is at least two years after the deferred
amount would have been paid if it were not deferred; provided further that such
election shall not apply to DSIB, IPA or other investment choices as specified
by the Administrator.

            (e) Shares of Common Stock, DSIB and IPA. (i) The portion of an
account treated as if invested in the Common Stock investment choice shall be
distributable solely in shares of the common stock of the Corporation and shall
be distributed as set forth in Section 4.1(a), (b) or (c) above.

            (ii) The portion of the account treated as if invested in the DSIB
shall be paid in 15 equal, annual installments starting in January of the year
following termination of employment, unless Administrator in his/her sole
discretion specifies a later date. DSIB payments shall not commence prior to
termination of employment.

            (iii) The portion of the account treated as if invested in the IPA
shall be paid in 15 annual installments, calculated as a 15 year annuitized
amount based on the specified interest rate for the year of deferral into IPA.
Installments payments (with the exception of the first installment) shall
receive an annual inflation adjustment as described Section 3.3(b)(iii).
Distributions shall commence in January of the year following termination of
employment, unless the Administrator in his/her sole discretion specifies a
later date. IPA payments shall not commence prior to termination of employment.

            (e) Shares Available for Issuance. An aggregate of 500,000 shares of
authorized but unissued shares of common stock of the Corporation has been
reserved for issuance pursuant to this Program, as subject to adjustment
provided for in Section 5.8.

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            (f) Valuation. For purposes of distribution, the balance of an
account shall be valued as of the Valuation Date immediately preceding the date
that the balance of such account or the particular installment thereof is to be
distributed.

            4.2 FINANCIAL EMERGENCY PAYMENTS. Notwithstanding any other
provisions of this Plan, if the Administrator determines, after consideration of
an application of a Participant or Former Participant, such individual has a
financial emergency of such a substantial nature and beyond the individual's
control that a contemporaneous payment of incentive compensation previously
deferred under this Plan is warranted, the Administrator may, in his sole and
absolute discretion, direct that all or a portion of the balance of the account
be paid or distributed to the Participant or Former Participant in such manner
and at such time as the Administrator shall specify.

            4.3 PAYMENTS TO A DECEASED PARTICIPANT'S BENEFICIARY. In the event
of a death of a Participant or Former Participant before the value of the
account under the Program has been fully distributed, the value of the account
of such individual shall be distributed in a lump sum to the individual's
Beneficiary (or his/her estate in the event that no Beneficiary, including a
secondary/contingent Beneficiary shall survive the Participant or Former
Participant) as soon as practicable thereafter after receipt of all
documentation. Shares of the common stock of the Corporation shall be
distributed with respect to any portion of the account treated as if invested in
the Corporation's common stock. Notwithstanding the foregoing, any compensation
treated as if invested in the DSIB or IPA shall be distributed to the named
Beneficiary (i) if prior to the commencement of DSIB payments, in 15 annual
installments in an amount specified by the Administrator for the calendar year
in which the deferral occurred; or (ii) if after commencement of DSIB or IPA
payments, annual payments in the same amount as the Participant received until
an aggregate 15 payments have been received by the Participant and his
Beneficiary.

<PAGE>

                                       19

                                    ARTICLE V

                               GENERAL PROVISIONS

            5.1 PARTICIPANT'S RIGHTS UNSECURED. The right of any Participant or
Former Participant to receive future payments under the provisions of the
Program shall be an unsecured claim against the general assets of (i) the Bank
if the Participating Company employing the Participant at the time that his/her
compensation is deferred was a bank or a bank subsidiary, or (ii) the
Corporation, if the Participating Company employing the Participant at the time
his/her compensation is deferred was not a bank or a bank subsidiary. Deferrals
under the Chemical Plan prior to January 1, 1997 shall be allocated to the Bank
or Corporation depending upon the employer of the Employee on January 1, 1997.
No Participating Company (other than the Corporation or Bank) is liable for
payment of benefits to its Employees under the Plan.

            5.2 ASSIGNABILITY. No right to receive payments hereunder shall be
transferable or assignable by a Participant or Former Participant except by will
or by the laws of descent and distribution or by a court of competent
jurisdiction. Any other attempted assignment or alienation of payments hereunder
shall be void and of no force or effect.

            5.3 ADMINISTRATION. Except as otherwise provided herein, the Plan
shall be administered by the Administrator who shall have the authority to adopt
rules and regulations for carrying out the provisions of the Plan, who shall
interpret, construe and implement the provisions of the Plan, and whose
determinations shall be conclusive and binding. In carrying out his
responsibilities hereunder, the Administrator may appoint such delegates as
he/she deems appropriate. Notwithstanding anything herein to the contrary, the
Administrator shall have the absolute right to delay any payments for a
reasonable period following the calendar year of termination of employment.

            5.4 AMENDMENT. The Plan may at any time or from time to time be
amended, modified or terminated by the Board of Directors or the Administrator;
provided that no amendment, modification, or termination shall, without the
consent of the Participant, reduce the value of Participant's account at that
time; provided further that as to persons subject to

<PAGE>

                                       20

Section 16(a) of the Securities Exchange Act of 1934, as amended, no provision
hereunder which relates to the Chase Common investment choice may be amended at
less than six months intervals, and such amendment shall be subject to
stockholder approval if required by SEC Rule 16b-3.

            5.5 LEGAL OPINIONS. The Administrator may consult with legal
counsel, who may be counsel for the Corporation or other counsel, with respect
to his obligations or duties hereunder, or with respect to any action,
proceeding or any question at law, and shall not be liable with respect to any
action taken, or omitted, by him in good faith pursuant to the advice of such
counsel.

            5.6 LIABILITY. Any decision made or action taken by the Board of
Directors, the Committee, the Administrator or the Corporation, arising out of,
or in connection with, the construction, administration, interpretation and
effect of the Program shall be within their absolute discretion, and will be
conclusive and binding on all parties. Neither the Administrator nor a member of
the Board of Directors of the Corporation or the Committee of the Corporation
shall be liable for any act or action hereunder, whether of omission or
commission, by any other member or employee or by any agent to whom duties in
connection with the administration of the Plan have been delegated or, except in
circumstances involving bad faith, for anything done or omitted to be done in
connection with this Plan.

            5.7 CORPORATE REORGANIZATION. In the event that as of any date a
corporation or unincorporated entity ceases to meet the definition of Related
Company, such corporation or entity shall cease to be a Participating Employer
and its employees shall cease to be Participants under the Plan as of the
Valuation Date coincident with or immediately following such date, and this Plan
shall be treated as though a separate plan for the benefit of its employees who
were Participants in the Plan to govern the balances in an account under the
Program as of such Valuation Date.

            5.8 ADJUSTMENTS. The maximum aggregate number of shares of common
stock of the Corporation to be issued under this Plan shall be proportionately
adjusted for any increase or decrease in the number of issued shares of common
stock of the Corporation

<PAGE>

                                       21

resulting from a subdivision or consolidation of such shares of common stock or
other similar capital adjustment, or the payment of a stock dividend (but only
if such stock dividend is 5% or more), or other increases or decreases in such
shares of common stock effected without receipt of consideration by the
Corporation.

            5.9 COMPLIANCE. This Program will be administered to comply with the
Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as
amended.

            5.10 ASSUMED LIABILITY. Effective January 1, 1996, this Program
governs the account liability for payments in lieu of Thrift-Incentive Plan
Contributions liability under the TRA Supplemental Benefit Plan of The Chase
Manhattan Bank, N.A. prior to merger with Chemical Bank. All rights and benefits
for such liability are governed by this Program.

            5.11 CONSTRUCTION. The masculine gender, where appearing in this
Program, shall be deemed to also include the feminine gender. The singular shall
also include the plural, where appropriate.

                                   ARTICLE VI

                   OBLIGATIONS UNDER TRA SUPPLEMENTAL PLAN AND

                  UNDER SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

            6.1 TRA SUPPLEMENTAL PLAN. The balances of participants in Section
II of the TRA Supplemental Retirement Plan became part of the account balances
under this Program as of January 1, 1997. Such balances are subject to the terms
and conditions of this Program, including, but not limited to the hypothetical
investments described in Section 3.3.

            6.2 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN. (a) Each Employee who
had a benefit as of December 31, 1996 under the Supplemental Executive
Retirement Plan shall have an account under this Program consisting of:

<PAGE>

                                       22

            (i)   the amount of his/her Supplemental Chase Retirement Account
            including any amounts credited for the bonus payable in 1996; and

            (ii)  if such individual had accrued an annuity frozen as of
            December 31, 1988, under the Supplemental Executive Retirement Plan,
            an amount derived by converting the accrued life annuity frozen as
            of December 31, 1988 utilizing the factors set forth in Section 4.1
            of the Retirement Plan.

      (b)   Unless an employee otherwise elects by February 27, 1997, the amount
            derived from the SERP shall be treated as if invested in DSIB;
            provided that if the Employee elects another form of benefit of the
            hypothetical investment, Employee by virtue of such election
            acknowledges that such hypothetical investment may provide rates of
            return lower than that provided by the Supplemental Executive
            Retirement Plan.

      (c)   Employees shall vest in the balance of their account subject to SERP
            only if they have a Period of Service recognized for Pay Credit
            purposes under the Retirement Plan of at least 10 years.

<PAGE>

                                       23

                                   APPENDIX I

-     In December of 2001, Participants who had account balances under the J.P.
      Morgan Deferred IC Program had the opportunity to transfer balances among
      the investment choices under that Program to be effective as of January 1,
      2002. Balances in the heritage Morgan accounts were then directed to the
      new investment choices as follows:

      Equity Account-S&P 500 Index Investment Choice
      Bond Account-Intermediate Bond Investment Choice
      Balanced Account-Moderately Aggressive Lifestyle Investment Choice
      Deferred Cash Account-Short-Term Fixed Income Investment Choice
      International Equity Account-International Equity Index Investment Choice
      NASDAQ Account-NASDAQ 100 Index Investment Choice
      MIPs Account-remain in place as IPA Investment Choice
      DIBA Account-remain in place as DSIB Investment Choice

-     Starting on January 7, 2002, heritage Morgan Participants had the
      opportunity to transfer/reallocate balances (other than the DSIB
      investment choice, IPA investment choice and Common Stock investment
      choice) on a daily basis.

<PAGE>

                                       24

                                   APPENDIX II

Effective June 30, 2003, the Large Cap Blend investment choice was eliminated as
an investment choice under the Program. Any amounts remaining in that investment
choice on June 30, 2003, as well as future contributions, were automatically
treated as invested in the S&P 500 Index investment choice.<PAGE>
                                                                 Exhibit 10.5(a)

THE CHASE MANHATTAN 1994 LONG-TERM INCENTIVE PLAN EFFECTIVE
MAY 1, 1994

1. PURPOSE The purpose of The Chase Manhattan 1994 Long-Term Incentive Plan (the
"Plan") is to advance the interests of The Chase Manhattan Corporation ("CMC")
and its Subsidiaries by providing long-term incentive awards and stock ownership
opportunities to certain key employees (including officers and directors who are
employees) who contribute significantly to the longer term performance of CMC
and its Subsidiaries. In addition, the Plan is intended to enhance the ability
of CMC and its Subsidiaries to attract and retain individuals of superior
managerial ability and to motivate such key employees to exert their best
efforts towards the future progress and profitability of CMC and its
Subsidiaries. For purposes of this Plan, a Subsidiary shall be any corporation
in which CMC has a direct or indirect ownership interest, including any
corporation in which CMC acquires any such interest after the adoption of this
Plan, but only if CMC owns or controls, directly or indirectly, stock possessing
not less than 50 percent of the total combined voting power of all classes of
stock in such corporation.

2. ADMINISTRATION AND INTERPRETATION

a. ADMINISTRATION. The administration and operation of the Plan shall be vested
in the Compensation Committee of the Board of Directors of CMC, or such other
committee of such Board of Directors which shall succeed to the functions and
responsibilities, in whole or in part, of said Compensation Committee (the
"Committee"). The Committee shall consist of not less than three members of the
Board of Directors of CMC (the "Board of Directors") who are not officers or
employees of CMC or any Subsidiary and who are (i) "disinterested" within the
meaning of Rule 16b- 3 as in effect from time to time under the Exchange Act (as
defined in Section 6(e)) ("Rule 16b-3") and (ii) "outside directors" under
Section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code") and
the regulations promulgated thereunder as in effect from time to time (the
"Section 162(m) Regulations"). No member of the Committee shall be entitled to
participate in the Plan. The Committee shall have the authority, consistent with
the provisions of the Plan, to determine the provisions of the awards to be
granted under the Plan; to determine the form of any such award; to interpret
the Plan and any award granted under the Plan; to adopt, amend and rescind rules
and regulations for the administration of the Plan and the awards granted under
the Plan; and to make all determinations in connection therewith which may be
necessary or advisable. The day-to-day administration of the Plan shall be
carried out by such officers and employees of The Chase Manhattan Bank (National
Association) as shall be designated from time to time by the Committee.

b. INTERPRETATION. The interpretation and construction by the Committee of any

                                     page 1

<PAGE>

provisions of the Plan or of any award granted under the Plan and any
determination by the Committee under any provision of the Plan or any such award
shall be final and conclusive.

c. LIMITATION ON LIABILITY. Neither the Board of Directors nor the Committee,
nor any member of either, shall be liable for any act, omission, interpretation,
construction or determination made by the Committee or any member thereof in
connection with the Plan in good faith, and the members of the Board of
Directors and the members of the Committee shall be entitled to indemnification
and reimbursement by CMC in respect of any claim, loss, damage or expense
(including counsel fees) arising therefrom to the full extent permitted by law
and under any directors and officers liability insurance coverage which may be
in effect from time to time.

d. RESERVED AUTHORITY OF THE BOARD OF DIRECTORS. The determinations by the
Committee as to: (i) the Incentive Stock Options (as defined in Section 4(b)(2))
and/or Non-qualified Stock Options (as defined in Section 4(b)(3)) to be granted
to a senior executive officer of CMC who is a member of the Board of Directors
and the aggregate number of Incentive Stock Options and/or Non-qualified Stock
Options to be granted to all other eligible employees pursuant to Section
4(b)(1); (ii) the Stock Appreciation Rights (as defined in Section 4(c)) to be
granted pursuant to Section 4(c) to any optionee who is a senior executive
officer of CMC and who is a member of the Board of Directors and who has been
granted Options (as defined in Section 4(b)(1)); and/or (iii) the aggregate
number of Restricted Stock Units (as defined in Section 5) which may be granted
to all eligible individuals under the Plan pursuant to Section 5(b); shall be
subject to the review and approval of the members of the Board of Directors who
are both "disinterested" under Rule 16b-3 and "outside directors" under Section
162(m) of the Code and the Section 162(m) Regulations only if such review and
approval (a) shall not cause the administration of the Plan to be other than
"disinterested" under Rule 16b-3 and (b) shall allow CMC to maintain the
deductibility of certain compensation paid pursuant to this Plan under Section
162(m) of the Code and the Section 162(m) Regulations, as determined by counsel
for CMC.

3. SHARES SUBJECT TO AWARDS UNDER THE PLAN

a. LIMITATION ON NUMBER OF SHARES. The shares subject to Options and authorized
for issuance upon the exercise of Stock Appreciation Rights ("Option Shares"),
and the shares subject to awards of Restricted Stock Units, shall be shares of
CMC's authorized but unissued common stock, par value $2.00 per share ("Common
Stock"), and shares, if any, of such Common Stock held as treasury stock by CMC.
The aggregate number of shares of Common Stock that may be made the subject of
awards under the Plan (a) during calendar year 1994 shall not exceed 100,000
shares and (b) during calendar year 1995 shall not exceed one and one-half
percent (1.5%) of the number of shares of Common Stock outstanding on December
31, 1994. The aggregate number of shares of Common Stock that may be made the
subject of awards under the Plan during any calendar year subsequent to calendar
year 1995 shall not exceed the sum of (i) one and one-half percent (1.5%) of the
number of shares of Common Stock outstanding on December 31 of the preceding
calendar year and (ii) the

                                     page 2

<PAGE>

number of shares of Common Stock as to which awards could have been made under
the Plan on December 31 of the preceding calendar year but as to which awards
were not made during such year. If any Option awarded under this Plan expires or
terminates unexercised or any award of Restricted Stock Units (or shares of
Restricted Stock into which it may be converted) under this Plan expires or is
terminated for any reason, the shares allocable to the unexercised or terminated
portion of such Option or award may again be made the subject of awards under
the Plan. Such shares shall be included in the amount determined pursuant to
clause (ii) of the immediately preceding paragraph as of the end of the year in
which such termination or expiration occurs.

b. ADJUSTMENTS OF NUMBER OF SHARES. The number of shares that may be made the
subject of awards as provided in Section 3(a) shall be subject to appropriate
adjustment, from time to time, in accordance with the provisions of Sections
4(d)(8) and 4(d)(9). In the event of a change in the Common Stock of CMC which
is limited to a change in the designation thereof to "Capital Stock" or other
similar designation, or to a change in the par value thereof, or from par value
to no par value, without increase or decrease in the number of issued shares,
the shares resulting from any such change shall be deemed to be Common Stock
within the meaning of the Plan.

4. STOCK OPTIONS AND STOCK APPRECIATION RIGHTS

a. ELIGIBILITY. The individuals who shall be eligible to receive Options and
Stock Appreciation Rights under the Plan shall be all salaried employees
(including officers and directors who are salaried employees) of CMC or of any
Subsidiary as the Committee from time to time shall determine as provided below.

b. GRANTS OF OPTIONS. (1) In General. Options granted under the Plan may be
either "Incentive Stock Options" or "Non-qualified Stock Options" (collectively
referred to herein as "Options"); provided, however, that no Option Shares under
the Plan shall be subject to more than one Option; and provided, further, that
no Incentive Stock Options may be granted under the Plan after February 15,
2004. Options granted under the Plan shall be of such type and for such number
of Option Shares (subject to the limitation contained in Section 3), as the
Committee shall designate at the time of grant; provided, however, that the
maximum number of shares of Common Stock with respect to which Options or Stock
Appreciation Rights shall be granted in any calendar year to any individual
under this Plan shall not exceed ten percent (10%) of the total number of shares
of Common Stock that may be made the subject of awards during any calendar year
under Section 3 of the Plan as determined on the effective date of the Plan for
calendar year 1994 and for any calendar year thereafter, on the first day of
such calendar year; provided, further, that such maximum number of shares shall
be subject to appropriate adjustment, from time to time, in accordance with the
provisions of Sections 4(d)(8) and 4(d)(9). The Committee, at any time and from
time to time, may authorize the granting of Incentive Stock Options and/or
Non-qualified Stock Options

                                     page 3

<PAGE>

to any individual eligible to receive the same. (2) Incentive Stock Options. The
term "Incentive Stock Option" shall mean an Option which is intended to qualify
as an incentive stock option under Section 422 of the Code. Subject to
adjustment as provided in Section 3(b), the aggregate number of shares of Common
Stock as to which Incentive Stock Options may be granted under the Plan shall
not exceed 5,000,000 shares of Common Stock. Such number of shares shall be
subject to appropriate adjustment, from time to time, in accordance with the
provisions of Sections 4(d)(8) and 4(d)(9). (3) Non-qualified Stock Options. The
term "Non-qualified Stock Option" shall mean any Option which is not an
Incentive Stock Option. Except as specifically provided herein, the provisions
of this Plan shall apply in the same manner to Incentive Stock Options and to
Non-qualified Stock Options.

c. GRANTS OF STOCK APPRECIATION RIGHTS. (1) In General. The term "Stock
Appreciation Right" shall mean the right to receive from CMC upon surrender of
an Option or a portion thereof, but without any payment to CMC, an amount equal
to the value (based on Market Value Per Share (as defined in Section 4(d)(4)),
on the exercise date, of the total number of Option Shares for which the Stock
Appreciation Right is exercised, less the option price which the optionee would
have otherwise been required to pay upon purchase of such Option Shares. The
amount payable by CMC upon the exercise of a Stock Appreciation Right may be
paid in cash or in Option Shares or in any combination thereof, as the Committee
in its sole discretion shall determine. No fractional shares shall be issuable
pursuant to any Stock Appreciation Right. The Committee in the same manner as is
provided with respect to Options in Section 4(b) may, from time to time,
authorize the granting of Stock Appreciation Rights to any optionee who has been
granted Options. Each Stock Appreciation Right shall relate only to Option
Shares subject to a specific Option granted under this Plan and may be granted
concurrently with the Option to which it relates or at any time prior to the
exercise, termination or expiration of such Option. However, at no time shall
the total number of Option Shares with respect to which Stock Appreciation
Rights remain outstanding and unexercised exceed the total number of Option
Shares subject to Options then outstanding and unexercised. (2) Limitations on
Stock Appreciation Rights. The Committee may fix, with respect to Stock
Appreciation Rights granted under the Plan, such waiting periods, exercise dates
or other limitations as it shall deem appropriate; provided, however, that no
Stock Appreciation Right shall be exercisable prior to the date when the Option
to which it relates first becomes exercisable or after the expiration of such
related Option. In addition, the Committee may impose at any time after the
grant of any Stock Appreciation Right a total prohibition on the exercise of
such Stock Appreciation Right for such period or periods as it, in its sole
discretion, deems to be in the best interest of CMC.

d. TERMS OF OPTIONS AND STOCK APPRECIATION RIGHTS. Options granted pursuant to
this Plan shall be evidenced by agreements ("Stock Option Agreements"). Stock
Appreciation Rights, if any, shall be evidenced by agreements amending and
forming a part of the Stock Option Agreements to which such Stock Appreciation
Rights relate. Stock Option Agreements, and the Options and Stock

                                     page 4

<PAGE>

Appreciation Rights, if any, represented thereby, shall comply with and be
subject to the following terms and conditions and may contain such other
provisions, consistent with the terms of this Plan, as the Committee shall deem
advisable. (1) Medium of Payment. Upon exercise of an Option, the option price
shall be payable to CMC (i) in United States dollars in cash or by check, bank
draft or money order payable to the order of CMC (or such other forms of payment
as the Committee may determine to be acceptable) or (ii) by tendering to CMC
shares of Common Stock owned by the optionee having an aggregate Market Value
Per Share as of the date of exercise which is not greater than the option price
and by paying the remainder of the option price as provided in (i) above.
Payment instruments will be received subject to collection. (2) Number of
Shares. Each Stock Option Agreement shall state the total number of Option
Shares which are subject to the Option and, if applicable, the total number of
Option Shares in respect of which any related Stock Appreciation Right shall be
exercisable. (3) Option Price. The option price for each Option Share shall be
not less than the Market Value Per Share on the date of the granting of the
Option. (4) Market Value Per Share. The Market Value Per Share as of any
particular date shall be the mean between the highest and lowest quoted selling
prices for shares of Common Stock as reported on the composite tape on such date
(or, if such date shall not be a business day, then the next preceding day which
shall be a business day); or, if no sale takes place, then the mean between the
bid and asked prices on such date; and if no bid and asked prices are quoted for
such date, then such value as shall be determined by such method as the
Committee shall deem to reflect fair market value as of such date. (5) Term. The
term of each Option and related Stock Appreciation Right shall be determined by
the Committee at the date of grant; provided, however, that each Option and
related Stock Appreciation Right shall expire not more than ten years from the
date the Option is granted. (6) Date of Exercise. Each Stock Option Agreement
shall state that the Option or Stock Appreciation Right granted therein may not
be exercised in whole or in part for any period or periods of time specified in
such agreement or otherwise as specified by the Committee. Except as may be so
specified, any Option or related Stock Appreciation Right may be exercised in
whole at any time or in part from time to time during its term; provided,
however, that no Option, or portion thereof, or related Stock Appreciation Right
may be exercisable until at least one year after the date of grant of such
Option. (7) Termination of Employment. In the event that an optionee's
employment by CMC or any of its Subsidiaries shall terminate, the optionee's
Options and related Stock Appreciation Rights, if any, shall terminate
immediately, except as hereinafter provided in this subsection. The Committee,
in its sole discretion, may determine that the optionee's Options and/or related
Stock Appreciation Rights, if

                                     page 5

<PAGE>

any, to the extent exercisable immediately prior to such termination of
employment, may remain exercisable for a designated period of time not to exceed
90 days after such termination of employment. If any termination of employment
is due to retirement with the consent of CMC, the optionee shall have the right,
subject to the provisions of subsections (5) and (6) above, to exercise each of
his Options and related Stock Appreciation Rights, if any, at any time until the
end of the term of each such Option and related Stock Appreciation Right to the
extent that the optionee was entitled to exercise the same immediately prior to
such retirement. Retirement by an optionee on or after the optionee's normal
retirement date in accordance with the provisions of the retirement plan of CMC
or one of its Subsidiaries under which the optionee is then covered shall be
deemed to be retirement with the consent of CMC. Termination of an optionee's
employment due to disability (as determined by the Committee in its sole
discretion) shall be deemed, solely for purposes of this Section 4(d)(7), to be
a retirement with the consent of CMC; provided that if the optionee thereafter
returns to employment with CMC or any of its Subsidiaries, the optionee's
employment shall be deemed for purposes of this Section 4(d)(7) to have never
been terminated. Whether any other termination of employment is to be considered
a retirement with the consent of CMC and whether an authorized leave of absence
or absence on military or government service or for other reasons shall
constitute a termination of employment for the purposes of the Plan shall be
determined by the Committee. If an optionee shall die (whether in the employment
of CMC or any of its Subsidiaries or following the optionee's retirement with
the consent of CMC) while entitled to exercise an Option and related Stock
Appreciation Right, if any, the optionee's estate, personal representative, or
beneficiary, as the case may be, shall have the right, subject to the provisions
of subsections (5) and (6) above, to exercise the Option and related Stock
Appreciation Right, if any, at any time within thirty-six months after the date
of the optionee's death (but in no event later than the expiration of the term
of each such Option and related Stock Appreciation Right, if any), to the extent
that the optionee was entitled to exercise the same immediately prior to the
optionee's death. (8) Recapitalization. The aggregate number of shares
determined under Section 3 and stated in Section 4(b)(2), the maximum number of
shares that may be made the subject of awards of Options or Stock Appreciation
Rights to any individual in any calendar year, the number of Option Shares to
which each outstanding Option and Stock Appreciation Right relates, and the
option price in respect of each such Option and Stock Appreciation Right, shall
all be proportionately adjusted for any increase or decrease in the number of
issued shares of Common Stock resulting from a subdivision or consolidation of
shares or other capital adjustments, or the payment of a stock dividend or other
increase or decrease in such shares, effected without receipt of consideration
by CMC or a Subsidiary; provided, however, that any fractional shares resulting
from any such adjustment shall be eliminated. (9) Certain Mergers or
Consolidations. After a merger of one or more

                                     page 6

<PAGE>

corporations into CMC, or after a consolidation of CMC and one or more
corporations (a "Merger Event"), in which CMC shall be the surviving or
resulting corporation, an optionee shall, at the same cost, be entitled upon the
exercise of an Option, to receive (subject to any required action by
stockholders) such securities of the surviving or resulting corporation, as
shall be equivalent, as nearly as practicable, to the nearest whole number and
class of shares of stock or other securities, to the Option Shares which were
then subject to such Option, and such shares of stock or other securities shall,
after such merger or consolidation, be deemed to be Option Shares for all
purposes of the Plan and of the Options and Stock Appreciation Rights granted
under the Plan. (10) Other Transactions. If CMC enters into any agreement with
respect to any transaction which would, if consummated, result in a Merger Event
in which CMC will not be the surviving corporation, the Committee shall, in its
sole discretion, and without liability to any person, determine what actions
shall be taken with respect to outstanding Options and related Stock
Appreciation Rights, if any, including without limitation, the payment of a cash
amount in exchange for the cancellation of the Option and any related Stock
Appreciation Right or requiring the issuance of substitute options, that will
substantially preserve the value, rights and benefits of any affected Options
and/or related Stock Appreciation Rights previously granted hereunder as of the
date of the consummation of the Merger Event. (11) Optionee's Agreement. If, at
the time of the exercise of any Option or Stock Appreciation Right, in the
opinion of counsel for CMC, it is necessary or desirable, in order to comply
with any then applicable laws or regulations relating to the sale of securities,
that the optionee exercising the Option or Stock Appreciation Right shall agree
to hold any Option Shares issued to the optionee for investment and without any
present intention to resell or distribute the same and that the optionee will
dispose of such shares only in compliance with such laws and regulations, the
optionee will, upon the request of CMC, execute and deliver to CMC a further
agreement to such effect.

e. EFFECT OF EXERCISE OF OPTIONS AND STOCK APPRECIATION RIGHTS. The right of an
optionee to exercise an Option shall terminate to the extent that such Option is
exercised and to the extent that the Option Shares subject to such Option are
used to calculate amounts receivable upon the exercise of a related Stock
Appreciation Right. The right of an optionee to exercise a Stock Appreciation
Right shall terminate to the extent that such Stock Appreciation Right is
exercised and, also, to the extent that such optionee exercises the Option to
which such Stock Appreciation Right is related.

f. OPTIONS AND RIGHTS IN SUBSTITUTION FOR STOCK OPTIONS GRANTED BY OTHER
CORPORATIONS. Options and Stock Appreciation Rights may be granted under the
Plan from time to time in substitution for stock options held by employees of
corporations who become salaried employees of CMC or of any Subsidiary as a
result of a merger or consolidation of the employing corporation with CMC or
such Subsidiary, or the acquisition by CMC or a Subsidiary of the assets of the
employing

                                     page 7

<PAGE>

corporation, or the acquisition by CMC or a Subsidiary of stock of the employing
corporation with the result that such employing corporation becomes a
Subsidiary. g. APPLICATION OF FUNDS. The proceeds received by CMC from the sale
of Option Shares pursuant to Options will be used for general corporate
purposes.

5. RESTRICTED STOCK UNITS AND RESTRICTED STOCK

a. ELIGIBILITY. The individuals who shall be eligible to receive an award of
Restricted Stock Units under the Plan shall be all salaried employees (including
officers and directors who are salaried employees) of CMC, or of any Subsidiary,
as the Committee from time to time shall determine.

b. AWARDS OF RESTRICTED STOCK UNITS. The Committee, at any time and from time to
time, may determine (subject to the limitation contained in Section 3): 63 10
(i) those eligible individuals, if any, who shall receive an award of Restricted
Stock Units under the terms of the Plan; (ii) the number of Restricted Stock
Units that shall be awarded to each such individual; (iii) the terms and
conditions which must be satisfied for the restrictions and conditions on each
Restricted Stock Unit to be removed, and the period of time during which such
terms and conditions shall apply, which period shall be not less than three
years from the date of the award, unless the Committee otherwise determines, in
which event such period shall not be less than one year from the date of the
award; and (iv) the time and manner in which all or a portion of each award
shall be paid to such individual in accordance with the provisions of Section
5(e).

c. DESCRIPTION OF RESTRICTED STOCK UNITS. A Restricted Stock Unit awarded to an
employee shall entitle the employee to receive, upon the satisfaction of the
terms and conditions established under Section 5(b), a share of Common Stock.
The holder of a Restricted Stock Unit shall be entitled to receive a cash
payment on each dividend payment date for Common Stock as if such Restricted
Stock Unit were a share of Common Stock. The number of shares of Common Stock
subject to an award of Restricted Stock Units shall be appropriately adjusted,
from time to time, in the manner provided in Sections 4(d)(8) and 4(d)(9) for
any stock dividend, stock split, recapitalization, reorganization, merger,
consolidation, split-up or any similar change affecting the Common Stock. After
the satisfaction of the terms and conditions set by the Committee at the time of
the grant of an award of Restricted Stock Units to an employee, the Secretary of
CMC shall be so advised and a certificate for the appropriate number of shares
of Common Stock shall be delivered to the employee. The remaining Restricted
Stock Units granted under such award, if any, shall either be canceled or, if
appropriate under the terms of the award, shall continue to be subject to the
restrictions, terms and conditions set by the Committee at the time of the grant
of the award. The Committee may from time to time before the satisfaction of the
terms and conditions established under Section 5(b) with respect to an award of
Restricted Stock Units determine to convert all or a portion of such Restricted
Stock Units into an equivalent number of shares of Restricted Stock. 64 11

d. DESCRIPTION OF RESTRICTED STOCK. A share of Restricted Stock issued upon the
conversion of a Restricted Stock Unit is a share of Common Stock which may not
be sold, exchanged, pledged, transferred, assigned, hypothecated or otherwise
encumbered or disposed of until the terms and

                                     page 8

<PAGE>

conditions set by the Committee at the time of the award of the Restricted Stock
Unit have been satisfied. A share of Restricted Stock shall be subject to the
same restrictions, terms and conditions as applied to the converted Restricted
Stock Unit. If an employee receives shares of Restricted Stock, the employee
shall be the record owner of such shares and shall have all the rights of a
stockholder with respect to such shares, including the right to vote and the
right to receive dividends or other distributions made or paid with respect to
such shares. Any certificate or certificates representing shares of Restricted
Stock shall bear the following legend: The shares represented by this
certificate have been issued pursuant to the terms of an award under The Chase
Manhattan 1994 Long-Term Incentive Plan and may not be sold, exchanged, pledged,
transferred, assigned, hypothecated or otherwise encumbered or disposed of in
any manner until such time as is set forth in the terms of such award dated .
Any new, additional or different securities that an employee may become entitled
to receive with respect to any shares of Restricted Stock by virtue of a stock
dividend, stock split, recapitalization, reorganization, merger, consolidation,
split-up, or any similar change affecting the Common Stock shall be subject to
the same restrictions, terms and conditions as apply to such shares of
Restricted Stock. In order to enforce the restrictions, terms and conditions
which may be applicable to an employee's shares of Restricted Stock, the
Committee may require the employee, upon the receipt of a certificate or
certificates representing such shares, or at any time thereafter, to deposit
such certificate or certificates together with stock powers and other
instruments of transfer, appropriately endorsed in blank, with CMC or an escrow
agent designated by CMC under an escrow agreement in such form as shall be
determined by the Committee. After the satisfaction of the terms and conditions
set by the Committee at the time of an award of Restricted Stock Units to an
employee which are applicable to shares of Restricted Stock, a new certificate,
without the legend set forth above, for the number of shares which are no longer
subject to such restrictions, terms and conditions shall be delivered to the
employee. The remaining shares of Restricted Stock issued with respect to such
award, if any, shall either be canceled or, if 65 12 appropriate under the terms
of the award applicable to such shares, shall continue to be subject to the
restrictions, terms and conditions set by the Committee at the time of the
award.

e. PAYMENT OF RESTRICTED STOCK UNITS AND RESTRICTED STOCK. (1) In General. The
satisfaction of the terms and conditions set by the Committee at the time of an
award of Restricted Stock Units and the delivery of a certificate, without the
legend set forth above, for the portion of such award which is no longer subject
to such restrictions, terms and conditions is hereinafter referred to as the
"payment" of such portion of the award (or the shares of Restricted Stock into
which it may be converted). Subject to the provisions of this Section 5(e) and
Sections 5(c) and 5(d), each award shall be paid at the time and in the manner
specified by the Committee at the time of the award. (2) Payment in the Event of
Termination of Employment. If the employment with CMC of an employee to whom an
award of Restricted Stock Units has been made is terminated for any reason
(including death, but excluding disability (as determined by the Committee in
its sole discretion), which for purposes of this Section 5(e) shall not be
deemed a termination of employment) before satisfaction of the terms and
conditions for the payment of all or a portion of the award, then only such
portion of the award, if any, shall be paid as shall have been specified by the
Committee at the time of the award and the remaining portion of such award shall
be canceled. If an employee to whom Restricted Stock Units have been awarded
dies after satisfaction of the terms and conditions for the payment of all or a
portion of an award but prior to the actual payment of all or such portion of
the award, such payment shall be made to the employee's beneficiary or
beneficiaries at the time and in the same manner that such payment would have
been made to the employee.

6. CHANGE IN CONTROL PROVISIONS.

a. STOCK OPTIONS AND STOCK APPRECIATION RIGHTS. Notwithstanding any provision in
the Plan or in any Stock Option Agreement to

                                     page 9

<PAGE>

the contrary, the following provisions shall apply if there is a Change in
Control, as defined in Section 6(e): (1) Any Option or Stock Appreciation Right,
other than an Incentive Stock Option and related Stock Appreciation Rights,
which is not otherwise exercisable at the date of the Change in Control may be
exercised, subject to the provisions of Sections 4(d)(5) and 4(d)(7), at any
time after the date of the Change in Control. 66 13 (2) If an optionee's
employment is terminated within twenty-four months after a Change in Control,
unless such termination is (i) for Cause (as defined in Section 6(e)), (ii) by
reason of death, Disability (as defined in Section 6(e)), or retirement with the
consent of CMC (as defined in Section 4(d)(7)), or (iii) by the optionee without
Good Reason (as defined in Section 6(e)), the optionee shall have the right,
subject to the provisions of Section 4(d)(5), to exercise his Options and Stock
Appreciation Rights at any time within the twenty-four month period after such
termination of employment. After a Change in Control, any purported termination
of an employee's employment (other than by reason of death) shall be
communicated by a Notice of Termination (as defined in Section 6(e)) from CMC to
the employee or from the employee to CMC, as the case may be.

b. RESTRICTED STOCK UNITS AND RESTRICTED STOCK. Notwithstanding any provision of
the Plan or any terms or conditions relating to any Restricted Stock Units or
shares of Restricted Stock to the contrary, in the event of a Change of Control,
the terms and conditions set by the Committee at the time of an award of
Restricted Stock Units shall be deemed to have been satisfied and, within 15
days after the Change in Control, a certificate for the appropriate number of
shares of Common Stock shall be delivered to the employee to whom such
Restricted Stock Units were awarded. Further, at the time of a Change in Control
the terms and conditions with respect to any shares of Restricted Stock issued
under the Plan shall be deemed to have been satisfied and, within 15 days after
the Change in Control, the holder of such shares shall receive a new certificate
for such shares without the legend set forth in Section 5(d).

c. TERMINATION AS A RESULT OF A POTENTIAL CHANGE IN CONTROL. For purposes of
Section 6(a)(2), an employee's employment shall be deemed to have been
terminated following a Change in Control without Cause or by the employee with
Good Reason, if the employee's employment is terminated prior to a Change in
Control without Cause at the request of a Person (as defined in Section 6(e))
who has entered into an agreement with CMC the consummation of which will
constitute a Change in Control or if the employee terminates his employment with
Good Reason prior to a Change in Control (determined by treating a Potential
Change in Control (as defined in Section 6(e)), as a Change in Control in
applying the definition of Good Reason) if the circumstance or event which
constitutes Good Reason occurs at the request of such Person. Further, for all
purposes of Sections 6(a)(1), 6(b) and 6(d), in determining any such employee's
rights to exercise Options and Stock Appreciation Rights, to receive a
distribution of shares of Common Stock with respect to Restricted Stock Units,
or to have the restrictions on shares of Restricted Stock deemed satisfied, a
Change in Control shall be deemed to have occurred immediately prior to the
employee's termination of employment. 67 14

d. RESTRICTION ON POWER TO AMEND AND TERMINATE. Notwithstanding any provision in
the Plan or in any award granted under the Plan to the contrary, while Section 9
of the Plan reserves to the Committee the right, subject to certain limitations
and restrictions, to from time to time and at any time alter, amend, suspend,
discontinue or terminate the Plan and any awards granted under the Plan, no such
action of the Committee, nor any action by the Board of Directors, shall
adversely affect an employee's rights under any award granted under the Plan
without the written consent of such employee if such action is within
twenty-four months after the month in which a Change in Control occurred or is
within twelve months after a Potential Change in Control.

e. DEFINITIONS. For purposes of this Section 6, the following words and

                                    page 10

<PAGE>

phrases shall have the meaning specified: (1) "Beneficial Owner" shall have the
meaning defined in Rule 13d-3 of the Exchange Act. (2) "Cause" shall mean,
unless otherwise defined in an employee's individual severance agreement with
CMC or, with respect to an employee who is a participant in CMC's Special
Severance Plan, in such Special Severance Plan (in which case said definition
shall govern), the termination of an employee's employment, after a Change in
Control, as a result of (i) the willful and continued failure by the employee to
substantially perform the employee's duties, as they may be defined from time to
time, with the employee's employers or abide by the written policies of CMC or
the employee's primary employer (other than any such failure resulting from the
employee's incapacity due to physical or mental illness or any such actual or
anticipated failure after the issuance of a Notice of Termination for Good
Reason by the employee) after a written demand for substantial performance is
delivered to the employee by the Corporate Human Resources Executive of CMC,
which demand specifically identifies the manner in which the Corporate Human
Resources Executive believes that the employee has not substantially performed
the employee's duties or has not abided by such written policies, or (ii) the
willful engaging by the employee in conduct which is demonstrably and materially
injurious to CMC or its Subsidiaries, monetarily or otherwise. For purposes of
the preceding sentence, no act, or failure to act, on a employee's part shall be
deemed "willful" unless done, or omitted to be done, by the employee not in good
faith and without reasonable belief that the employee's act, or failure to act,
was in the best interest of CMC and its Subsidiaries. (3) A "Change in Control"
shall be deemed to have occurred if any one of the following conditions shall
have been satisfied: 68 15 (i) any Person is or becomes the Beneficial Owner,
directly or indirectly, of securities of CMC (not including in the securities
beneficially owned by such Person any securities acquired directly from CMC or
its affiliates) representing 25 percent or more of the combined voting power of
CMC's then outstanding securities; or (ii) during any period of twenty-four
consecutive months, individuals who at the beginning of such period constitute
the Board of Directors and any new director (other than a director designated by
a Person who has entered into an agreement with CMC to effect a transaction
described in subsections (i), (iii) or (iv) of this Section) whose election by
the Board of Directors or nomination for election by CMC's stockholders was
approved by a vote of at least two-thirds of the directors then still in office
who either were directors at the beginning of the period or whose election or
nomination for election was previously so approved, cease for any reason to
constitute a majority of the Board of Directors; or (iii) the stockholders of
CMC approve a merger or consolidation of CMC with any other corporation, or a
plan of complete liquidation of CMC, other than (A) a merger, consolidation or
liquidation which would result in the voting securities of CMC outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or being converted into voting securities of the surviving entity),
in combination with the ownership of any trustee or other fiduciary holding
securities under an employee benefit plan of CMC or a Subsidiary, at least 80
percent of the combined voting power of the voting securities of CMC or such
surviving entity outstanding immediately after such merger, consolidation or
liquidation, or (B) a merger, consolidation or liquidation effected to implement
a recapitalization of CMC (or similar transaction) in which no Person acquires
more than 50 percent of the combined voting power of CMC's then outstanding
securities; or (iv) the stockholders of CMC approve an agreement for the sale or
disposition by CMC (other than to a Subsidiary) of all or substantially all
CMC's assets. Notwithstanding the foregoing, with respect to a particular
employee, a Change in Control shall not include any event, circumstance or
transaction occurring during the twelve- month period following a Potential
Change in Control which results from the action of any entity or group which
includes, is affiliated with or is wholly or partly controlled by one or more
executive officers of CMC in which the employee participates (a "Management
Group"); provided, however, that such action shall not be taken 69 16 into
account for this purpose if it occurs within a twelve-month period following a
Potential Change in Control resulting from the action of any Person which is not
a Management Group. (4) "Date of Termination" shall mean (i) if an employee's
employment is terminated for

                                    page 11

<PAGE>

Disability, 30 days after Notice of Termination is given (provided that the
employee shall not have returned to the full-time performance of the employee's
duties during such 30 day period), and (ii) if an employee's employment is
terminated for any other reason, the date specified in the Notice of Termination
(which, in the case of a termination by the employee's employer, shall not be
less than 30 days (except in the case of a termination for Cause) and, in the
case of a termination by the employee, shall not be less than 15 days nor more
than 60 days, respectively, from the date such Notice of Termination is given).
(5) "Disability" shall be deemed to be the reason for the termination of an
employee's employment, if, as a result of the employee's incapacity due to
physical or mental illness, the employee shall have been absent from the
full-time performance of the employee's duties with the employee's employer for
a period of six consecutive months, a Notice of Termination for Disability shall
have been given to the employee, and, within 30 days after such Notice of
Termination is given, the employee shall not have returned to the full-time
performance of the employee's duties. (6) "Exchange Act" shall mean the
Securities Exchange Act of 1934, as amended from time to time. (7) "Good Reason"
for termination by a employee of the employee's employment shall mean, unless
otherwise defined in an employee's individual severance agreement with CMC or,
with respect to an employee who is a participant in CMC's Special Severance
Plan, in such Special Severance Plan (in which case said definition shall
govern), the occurrence (without the employee's express written consent) of any
one of the following acts by the employee's employer, or failure by the
employee's employer to act, unless, in the case of any act or failure to act
described in subsection (i), (iii) or (iv) of this subsection, such act or
failure to act is corrected prior to the Date of Termination specified in the
Notice of Termination given in respect thereof: (i) the assignment to the
employee of any duties materially inconsistent with the nature and status of the
employee's responsibilities immediately prior to a Change in Control, or a
substantial adverse alteration in the nature or status of the employee's
responsibilities from those in effect immediately prior to the Change in
Control; provided, however, that a redesignation of the employee's title or
employer among CMC and its Subsidiaries shall not constitute Good Reason if the
employee's overall duties and status among CMC and its Subsidiaries are not
substantially adversely affected; (ii) a reduction in the employee's annual base
salary as in effect on May 1, 1994 (or the employee's most recent date of hire,
if later), as the same may be increased from time to time, where "annual base
salary" is the employee's regular basic annual compensation prior to any
reduction therein under a salary reduction agreement pursuant to Section 401(k)
or Section 125 of the Code, and, without limitation, shall not include, cost of
living allowances and post allowances for foreign service, fees, retainers,
reimbursements, bonuses, incentive awards, prizes or similar payments; (iii) the
failure by the employee's primary employer to pay to the employee any portion of
the employee's current compensation, or to pay to the employee any portion of an
installment of deferred compensation under any deferred compensation program,
within seven days of the date such compensation is due; or (iv) any purported
termination of the employee's employment which is not effected pursuant to a
Notice of Termination, and for purposes of this Section, no such purported
termination shall be effective. An employee's right to terminate the employee's
employment for Good Reason shall not be effected by the employee's incapacity
due to physical or mental illness. The employee's continued employment shall not
constitute consent to, or a waiver of rights with respect to, any act or failure
to act constituting Good Reason hereunder. (8) "Notice of Termination" shall
mean, unless otherwise defined in an employee's individual severance agreement
with CMC or, with respect to an employee who is a participant in CMC's Special
Severance Plan, in such Special Severance Plan (in which case said definition
shall govern), a written notice which shall indicate the specific termination
provision in this Section 6 relied upon and shall set forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of the
employee's employment under the provision so indicated. A Notice of Termination
for Cause is required to include a statement signed by the Corporate Human
Resources Executive of CMC that, in the good

                                    page 12

<PAGE>

faith opinion of the Corporate Human Resources Executive, the employee engaged
in conduct set forth in Section 6(e)(2)(i) or 6(e)(2)(ii) (the definition of
Cause), and specifying the particulars thereof in detail. (9) "Person" shall
have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and
used in Sections 13(d) and 14(d) thereof; provided, however, a Person shall not
include (i) CMC or any Subsidiary, (ii) a trustee or other fiduciary holding
securities under an employee benefit plan of CMC or a Subsidiary, (iii) an
underwriter temporarily holding securities pursuant to an offering of such
securities, or (iv) a corporation owned, directly or indirectly, by the
stockholders of CMC in substantially the same proportions as their ownership of
stock of CMC. (10) "Potential Change in Control" shall be deemed to have
occurred if any one of the following conditions shall have been satisfied: (i)
CMC enters into an agreement, the consummation of which would result in the
occurrence of a Change in Control; (ii) CMC or any Person publicly announces an
intention to take or to consider taking actions which, if consummated, would
constitute a Change in Control; (iii) any Person who is or becomes the
Beneficial Owner, directly or indirectly, of securities of CMC representing 15
percent or more of the combined voting power of CMC's then outstanding
securities, increases such Person's beneficial ownership of such securities by 5
percentage points or more over the percentage so owned by such Person on July
18, 1990; or (iv) the Board of Directors adopts a resolution to the effect that,
for purposes of the Plan, a Potential Change in Control has occurred.

7. WITHHOLDING FOR TAXES Any cash payment under the Plan shall be reduced by any
amounts required to be withheld or paid with respect thereto under all present
or future federal, state and local tax and other laws and regulations which may
be in effect as of the date of each such payment. Any distribution of shares of
Common Stock under the Plan shall not be made until appropriate arrangements
have been made for the payment of any amounts which may be required to be
withheld or paid with respect thereto, including, but not limited to,
withholding the distribution of a portion of the shares of Common Stock
otherwise issuable or the tendering of such shares back to CMC (under such rules
and conditions as may be established by the Committee) in order to satisfy all
or a portion of the required withholdings or payments.

8. DESIGNATION OF BENEFICIARY Each employee to whom an award or awards of
Restricted Stock Units has been made under this Plan may designate a beneficiary
or beneficiaries (which beneficiary may be an entity other than a natural
person) to receive any payment which under the terms of such award or awards may
become payable on or after the employee's death. At any time, and from time to
time, any such designation may be changed or canceled by the employee without
the consent of any such beneficiary. Any such designation, change or
cancellation must be on a form provided for that purpose by the Committee and
shall not be effective until received by the Committee. If no beneficiary has
been named by a deceased employee, or the designated beneficiaries have
predeceased the employee, the beneficiary shall be the employee's estate. If an
employee designates more than one beneficiary, any payments under this Plan to
such beneficiaries shall be made in equal shares unless the employee has
designated otherwise, in which case the payments shall be made in the

                                    page 13

<PAGE>

shares designated by the employee.

9. AMENDMENT AND TERMINATION The Committee may from time to time and at any time
alter, amend, suspend, discontinue or terminate this Plan and any awards granted
hereunder; provided, however, that no such action of the Committee may, without
the approval of the shareholders of CMC, alter the provisions of the Plan so as
to (i) increase the maximum number of shares of Common Stock which may be made
the subject of awards in any calendar year (except as provided in Section 3(b))
or increase the maximum number of shares of Common Stock as to which awards of
Options and Stock Appreciation Rights may be made to any awardee in any calendar
year (except as provided in Section 4(b)(1)); (ii) change the class of employees
eligible to receive awards under the Plan; (iii) extend beyond ten years the
maximum term of Incentive Stock Options or related Stock Appreciation Rights
granted under the Plan or increase the aggregate number of shares of Common
Stock as to which Incentive Stock Options may be granted under the Plan (except
as provided in Section 4(b)(2)); (iv) permit the option price of any Option
Share to be less the Market Value Per Share on the date of the granting of the
Option; (v) withdraw the administration of the Plan from the Committee; or (vi)
permit any member of the Committee to be eligible to receive an award pursuant
to the terms of the Plan. No alteration, amendment, suspension, discontinuance
or termination of any individual award (as opposed to any such action with
respect to this Plan) shall, however, materially adversely affect the rights of
any awardee without the written consent of the awardee. Notwithstanding the
proviso to the first sentence of this Section 9 or the provisions of the second
sentence of this Section 9, the Committee may alter, 73 20 amend, suspend,
discontinue or terminate this Plan and any awards granted hereunder without the
approval of the shareholders of CMC or any awardee under the Plan if necessary
in order to enable the Plan or any award hereunder, or any other plan of CMC or
any Subsidiary intended to be so qualified or any award thereunder, to qualify
for (x) the exemption provided by Rule 16b-3, (y) the benefits provided under
Section 422 of the Code, or (z) the exclusion for qualified performance-based
compensation under Section 162(m) of the Code and the Section 162(m)
Regulations.

10. PREEMPTION BY APPLICABLE LAWS AND REGULATIONS Anything in the Plan or any
Stock Option Agreement or other agreement entered into pursuant to the Plan to
the contrary notwithstanding, if, at any time specified herein or therein for
the making of any determination, the issue or other distribution of shares of
Common Stock, or the payment of consideration to an employee as a result of the
exercise of any Stock Appreciation Right, as the

                                    page 14

<PAGE>

case may be, any law, regulation or requirement of any governmental authority
having jurisdiction in the premises shall require either CMC or the employee (or
the employee's beneficiary thereof), as the case may be, to take any action in
connection with any such determination, the shares then to be issued or
distributed, or such payment, the issue or distribution of such shares or the
making of such determination or payment, as the case may be, shall be deferred
until such action shall have been taken.

11. MISCELLANEOUS

a. NO EMPLOYMENT CONTRACT. Nothing contained in the Plan or any Stock Option
Agreement or other agreement shall be construed as conferring upon an employee
the right to continue in the employ of CMC or any Subsidiary.

b. EMPLOYMENT WITH SUBSIDIARIES. Employment by CMC for the purposes of this Plan
shall be deemed to include employment by, and to continue during any period in
which an employee is in the employment of, any Subsidiary.

c. NO RIGHTS AS A STOCKHOLDER. An employee shall have no rights as a stockholder
with respect to Option Shares covered by the employee's Options or Stock
Appreciation Rights until the date of the issuance of such shares to the
employee and only after such shares are fully paid. No adjustment will be made
for dividends or other distributions or rights for which the record date is
prior to the date of such issuance. An employee shall have no rights as a
stockholder with respect to any award of Restricted Stock Units under the Plan.

d. NO RIGHT TO CORPORATE ASSETS. Nothing contained in the Plan shall be
construed as giving an employee, the employee's beneficiaries or any other
person any equity or interest of any kind in any assets of CMC or a Subsidiary
or creating a trust of any kind or a fiduciary relationship of any kind between
CMC or a Subsidiary and any such person.

e. NO RESTRICTION ON CORPORATE ACTION. Nothing contained in the Plan shall be
construed to prevent CMC or any Subsidiary from taking any corporate action
which is deemed by CMC or such Subsidiary to be appropriate or in its best
interest, whether or not such action would have an adverse effect on the Plan or
any award made under the Plan. No employee, beneficiary or other person shall
have any claim against CMC or any Subsidiary as a result of any such action.

f. NON-ASSIGNABILITY. Neither an employee nor an employee's beneficiary shall
have the power or right to sell, exchange, pledge, transfer, assign, hypothecate
or otherwise encumber or dispose of such employee's or beneficiary's interest in
the Plan or in any award received under the Plan, other than by will or the laws
of descent and distribution; nor shall such interest be subject to seizure for
the payment of an employee's or beneficiary's debts, judgments, alimony, or
separate maintenance or be transferable by operation of law in the event of an
employee's or beneficiary's bankruptcy or insolvency. Any Option or Stock
Appreciation Right granted under the

                                    page 15

<PAGE>

Plan shall be exercisable during an awardee's lifetime only by such awardee or
his or her guardian or legal representative. CMC's or a Subsidiary's obligations
under the Plan are not assignable or transferable except to a corporation which
acquires all or substantially all of the assets of CMC or such Subsidiary or to
any corporation into which CMC or such Subsidiary may be merged or consolidated.

g. OTHER BENEFIT PLANS. No awards or payments under the Plan shall be taken into
account in determining any benefits under any retirement, profit-sharing or
other plan maintained by CMC or a Subsidiary.

h. GOVERNING LAW; CONSTRUCTION. All rights and obligations under the Plan shall
be governed by, and the Plan shall be construed in accordance with, the laws of
the State of New York. Titles and headings to Sections herein are for purposes
of reference only, and shall in no way limit, define or otherwise affect the
meaning or interpretation of any provisions of the Plan.

i. EFFECTIVE DATE. The Plan shall be effective May 1, 1994, subject to the
approval of the Plan by the stockholders of CMC in accordance with Rule 16b-3
and Sections 162(m) and 422 of the Code.

                                    page 16

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